defense spending

Sequestration Imminent, Senate Rejects Stopgap Efforts

The Senate swatted aside last-ditch plans to block $85 billion in broad-based federal spending reductions Thursday as President Barack Obama and Republicans blamed each other for the latest outbreak of gridlock and the administration readied plans to put the cuts into effect.

Defense Cuts Could Be Inevitable, Says Rep. Randy Forbes

Rep. Randy Forbes, who chairs the readiness panel of the House Armed Services Committee, has a fairly blunt view on the near future of the fiscal cliff talks: "I am fully expecting to see sequestration in some form beginning in January," he told AOL Defense in an exclusive interview. Here's what he thinks that will mean for the U.S. military.

Obama and the Bayonets: Who's Right on the Defense Debate?

President Obama's snappy comeback about bayonets and horses put Mitt Romney on the defensive on defense spending ... but do his arguments hold water? Is Washington being a good steward of your tax dollars, as it spends them on aircraft carriers, nuclear subs, and other gear for our smaller, high-tech Navy?

The Obama Romney Debate: Who Won, and What That Means

Let's not sugarcoat it, President Obama won Monday's debate decisively -- at least on the topic of the evening, foreign policy. That's good news for Obama and bad news for Romney. But there's good news for Romney too.

Hate Paying $4 a Gallon for Gas? For Imported, You're Paying $8

When gas prices hit $4 at the pump earlier this summer, a lot of motorists were crying, "Uncle!" They'd be crying all the louder if they realized those first four bucks didn't cover half of it. It's just that the remainder is hidden in your tax bill.

Paul Ryan's Budget vs. President Obama's: How They Differ

Even before Mitt Romney picked him as his running mate, Paul Ryan was a Tea Party star, a fiscal-policy super-wonk and author of the GOP House's budget proposal. Here's a look at some of the ways Ryan's fiscal ideas contrast with President Obama's:

How Uncle Sam Spends Your Taxes: The U.S. Budget in 8 Easy Bites

Almost everyone agrees the federal deficit is a ticking bomb, but when it comes to ideas for solving the problem, some are contradictory and all are controversial. No wonder: If you look at where the money actually goes, it's easy to see why it's so hard to balance the budget.

Will Budget Cuts Leave Our Nation Defenseless? Hardly

President Obama's proposed cuts to national defense spending have critics in a panicked tizzy. But while the document outlining his plan suggests that real change is afoot, it clearly contradicts the outlandish claims of its detractors.

Debt-Ceiling Law: States Brace for Another Hit

The debt-ceiling discussions may be over, but the fallout for states is just starting. Many states, still struggling to recover to pre-recession levels, have depended on federal money to make up their shortfalls. As the flow of money slows, which states will take the biggest hits?

Defense Cuts to Clip Lockheed's Wings?

Following Congress's debt deal, the Pentagon faces up to $600 billion in cuts, on top of $400 billion previously demanded by the president. What might this mean for Lockheed Martin, the contractor whose F35 Joint Strike Fighter -- intended to be a "cost effective" project -- has already become a fiscal and logistical disaster?

Hocus + Pocus = The 2012 Federal Budget Plan

Like all budgets, the federal government's spending plan is all about revenues and expenditures. Unfortunately, Uncle Sam is very good at grossly overestimating tax receipts and grossly underestimating spending. It's enough to make you wonder if any of it is real.

Obama's Cuts: Less Than Meets the Eye, Thankfully

A parade of Republicans immediately lined up to attack the president's proposed budget cuts this week, claiming the plan falls short of making a real difference. They're right. And that's good, because really deep cuts are the last thing the economy needs right now.

State of the Union: Obama Eager to Fix Health Reform Law

In his State of the Union address, President Obama didn't shy away from tackling the ongoing questions about the health care reform law head on. And though he opened with a joke, he made it clear that while he's serious about repairing any flaws in the law, repeal is not an option.

Tea Party Leaders Say They'd Back Defense Cuts

The Tea Party says everything is on the table regarding its goal to cut federal spending and balance the budget -- including defense spending. If the political faction succeeds in cutting military spending, not only would the U.S. economy benefit, national security could well be strengthened.

Factory Orders Rise, but Not as Much as Expected

Factory orders rose just 0.1% in July, the U.S. Commerce Department announced Thursday in a report that further clarified that the manufacturing sector's expansion slowed down this summer. While the statistic did indicate tepid growth, it was less than the 0.3% gain economists had predicted.

U.S. Plans to Sell F-15 Fighter Jets to Saudi Arabia

The U.S. plans to sell advanced F-15 fighter jets to Saudi Arabia in a $30 billion, 10-year arms package. The 84 Boeing Co. (BA) F-15s could help the Saudis deal with skirmishes with Yemeni rebels on the country%u2019s southern border, The Wall Street Journal said. The planes will have onboard targeting systems similar to those offered to other foreign governments, but will not be as sophisticated as the F-15s flown by the U.S. military.

Boeing to Submit Defense Contract Bid as EADS Tensions Rise

Boeing is expected to submit a bid for a $35 billion Air Force tanker contract today, as tensions build over subsidies to its rival, the European Aeronautic Defense and Space Company. EADS submitted an 8,800-page bid for the contract yesterday based on the Airbus A330-200, The New York Times reported. The World Trade Organization said last week that this model received illegal subsidies in the form of low-cost loans from European governments.

Too Much Hope? Why Obama's Budget Is Unrealistic

The $3.8 trillion spending plan combines overly rosy projections of rapidly rising tax revenues with skyrocketing outlays in defense, entitlements and other mandatory spending, creating structural deficits above $1 trillion for a long time. Ending Bush-era tax cuts on the rich won't change that reality.

Lockheed Profits Fly Past Estimates

Defense contractor Lockheed Martin posted higher fourth-quarter earnings that exceeded expectations, boosted by sales of its fighter jets and satellite systems. The earnings per share results, however, were boosted by a share buyback.