U.S. budget problems a threat to security innovation, says Ronald Reagan Institute

James Hydzik

20 March 2024 - 21:06

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Budget flows to ensure the development and scaling of technology and then delivery of that tech to soldiers in harm’s way is an increasing threat to

U.S. budget problems a threat to security innovation, says Ronald Reagan Institute

The ongoing budget crisis in America is not only a threat to the current operating of the U.S. government. It is also a serious threat to national security and innovation that will protect the country from threats in the future.

On March 19, the Ronald Reagan Institute released its second annual National Security Innovation Base Report Card. On March 20, the institute held a summit to examine trends and subtrends uncovered while grading the country’s developments, and in comparison with the 2023 findings.

Wagging the dog

One of the gravest shortcomings noted both in 2023 and 2024 was “the failure to provide stable, sufficient funding to acquire and scale critical technology solutions.” A major part of the problem, according to the institute, was Congress’ inability to pass legislation, and in particular, legislation that funds the innovation that national security needs.

Unsustainable budgets

Another aspect is what is increasingly seen as an unsustainable budget deficit. Congressman Adam Schiff pointed out that when he came to Congress 15 years ago, he saw the deficit then as unsustainable. The deficits have ballooned and they have gone on longer than he thought they would be able to, but eventually, a tightening will occur.
Schiff stated that when discussing the budget, he likes to recall a saying attributed to Sir Winston Churchill: “Gentlemen, we’re out of money. Now, we’ll have to think.”

Red tape

A further financial drag on innovation for security in America is the still-too-prevalent red tape, which is fostered in part by risk aversion among government officials Congressman Schiff stated that if the U.S. wants to maintain its innovation lead, greater flexibility is required. “Committees do not like to give up oversight when it comes to spending. If the Department of Defense wants to move funding from one project to another, the bureaucracy involved is tremendous.” Doing so more efficiently will require a higher degree of risk taking than many legislators are prepared for.

The result is uneven development and projects that are slowed down or stopped rom a lack of funding, or new technologies that are developed but not brought to scale and put in the hands of the warrior on the ground. Meanwhile, America’s competitors, especially China, continue to attempt to catch up with the U.S. technologically.

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