
Arizona Senator Mark Kelly recently shed light on the potential fallout from a White House order that freezes federal funding, including repercussions for Department of Defense (DoD) research and defense innovation. During a Senate Armed Services Committee hearing, Kelly voiced his concerns about the impact this could have on military readiness and the nation's competitive stance globally.
The Office of Management and Budget (OMB) issued the order, putting a hold on all federal financial assistance. This move not only shakes the foundations of defense initiatives but also strikes a blow to infrastructure projects, small business innovation, and crucial support services for veterans and their families. Although a federal judge has blocked the freeze for now, the ripple effects are poised to disrupt essential defense technologies and production, as reported by Sen. Kelly's office.
During the committee meeting, Kelly engaged in dialogue with former Assistant Secretary of the Navy James Geurts, Shyam Sankar of Palantir Technologies, and Nathan Diller from Divergent Industries. The trio noted that erratic funding can undermine confidence, hinder innovation, and create financial strain on those fulfilling contracts with the DoD. Diller mentioned that funding cuts could affect future partnerships with the DoD, potentially limiting competition and slowing progress in defense technology.
Kelly, co-chair of the Defense Modernization Caucus and a Navy veteran, is committed to strengthening national security by accelerating the integration of new technologies. This strategy is crucial in equipping the U.S. military to respond to rising threats, an initiative that now stands threatened by what he called "an unprecedented overreach from the White House," according to Sen. Kelly's office.
Reflecting on the hearing, Kelly urged that "We’ve got to ensure that our military is not only equipped with cutting-edge technology but also has the infrastructure to remain effective in contested environments where supply chains and sustainment could be disruptive," as he told Sen. Kelly's office. He also highlighted the far-reaching implications of the order, which aside from defense, threatens to halt funding for healthcare plans, education, and social services.