Funding Needs Prompt Army Spending Constraints

US Army, The Army remains determined to do whatever necessary to execute its mission: defending the nation and prosecuting the war on terror while ensuring uninterrupted support to the Families of our deployed Soldiers. 
 
With the Fiscal Year 2007 emergency supplemental for funding operations in Afghanistan and Iraq, and requirements associated with the Global War on Terror, still under Congressional review, the Army will slow spending and the Department of Defense will move funds from other accounts to the Army, Army officials announced April 16. 
 
In order to stretch the money it has, the Army will tell commanders to slow spending in certain areas so that war related activities and support to Families can continue. The Department of Defense also will request the Congress approve the temporary reprogramming of $1.6 billion from Navy and Air Force pay accounts to the Army's operating account. 
 
Beginning in mid-April, the Army will slow the purchase of repair parts and other supplies, relying instead on existing inventory to keep equipment operational. Priority will be given to repair and refurbishment of immediately needed warfighting equipment, while training and other non-mission critical equipment repair will be deferred, officials said. 
 
In addition, the purchase of day-to-day supplies with government charge cards will be restricted, non-essential travel will be postponed or canceled, and shipment of equipment and supplies will be restricted or deferred altogether, unless needed immediately for war efforts. The Army added it also will delay the repair of facilities and environmental programs unless the work is for safety or health reasons, or impacts on Family support. 
 
The Army also announced it will take more restrictive actions in May, beginning with a freeze on new civilian hiring from outside the Army and releasing temporary employees. The Army also will cease to enter into new contracts and task orders, and suspend some service contracts supporting training events and facilities. Army commands will be directed to review their outstanding orders for parts, supplies and services and cancel orders that are not essential for immediate operations. 
 
The Army estimates that even with these spending restrictions and a temporary reprogramming of $1.6 billion, funds are sufficient to keep operations running only until the end of June. These actions carry consequential effects, including substantial disruption to installation functions, decreasing efficiency and potentially further degrading the readiness of non-deployed units.