logo
House advances $832 billion military budget plan for next fiscal year

House advances $832 billion military budget plan for next fiscal year

Yahoo5 days ago
House lawmakers advanced their $832 billion defense appropriations plan for fiscal 2026 early Friday morning despite strong objections from Democrats over missing budgetary details and social issue fights.
The bill's passage — by a 221-209 margin, with only five Democrats backing the measure — sends the national security budget debate over to the Senate, where appropriators still have not unveiled the parameters of their spending plans for next year.
The Defense Department is currently operating this fiscal year under a modified continuing resolution, with some additional funding for military programs and purchases. Lawmakers are hopeful that won't happen again next year, but the slow pace of budget work thus far leaves only about six weeks of session work left before a possible partial government shutdown if the appropriations bills aren't finalized.
The House spending plan was largely drafted before Pentagon leaders unveiled their detailed budgetary requests for fiscal 2026 just last month. President Donald Trump has touted that outline as a '$1 trillion defense budget,' but that total includes additional one-time funds approved by Congress as part of a separate reconciliation measure.
House appropriators OK rebukes to recent DOD scandals in budget bill
As such, the House plan for the base defense budget represents a small decrease over current fiscal year military spending, a point that Democrats and some Republican lawmakers have lamented.
But Rep. Ken Calvert, R-Calif., the chairman of the House Appropriations Committee's defense panel, praised the funding plan as 'providing our men and women in uniform with the resources they need to keep America safe.'
The bill supports a 3.8% pay raise for servicemembers next year, matching the federal formula for the annual prescribed pay boost. It includes $2.6 billion for hypersonics programs and $13 billion for missile defense programs in support of Trump's Golden Dome effort.
The measure sets aside $8.5 billion for 69 F-35 fighters, $3.8 billion for B-21 procurement, $2.7 billion for 15 KC-46s and $1.2 billion for four E-2D Advanced Hawkeye aircraft. Another $37 billion would go to Navy shipbuilding efforts, including procurement of one Columbia-class ballistic missile submarine and two Virginia-class fast attack submarines.
Under the plan, the Defense Department civilian workforce would be cut by about 45,000 individuals at a savings of $3.6 billion, a provision that drew strong objections from Democratic lawmakers.
Critics also attacked the bill's social issue provisions, including language prohibiting military health care facilities from providing abortion services, bans on transgender medical care and surgeries, and elimination of diversity and equity programs.
'These poison pill riders will not go unnoticed by our troops,' said Rep. Betty McCollum, D-Minn., ranking member on the appropriations committee's defense panel. 'They will impact recruitment and retention.'
Passage of the defense budget bill was delayed for much of the week by unrelated legislative floor fights in the House, and could be complicated in the Senate by similar, broader fights over federal spending and program cuts.
House lawmakers are expected to shift focus in coming days to the annual defense authorization bill — legislation which sets Defense Department policy and spending priorities for the upcoming year, but does not actually appropriate the funds for those goals — but a full floor debate on that measure is unlikely to happen before the chamber's August recess.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Intel's chip contracting plan in spotlight on earnings day
Intel's chip contracting plan in spotlight on earnings day

Yahoo

time18 minutes ago

  • Yahoo

Intel's chip contracting plan in spotlight on earnings day

By Arsheeya Bajwa (Reuters) -Faced with slumping quarterly sales and a burgeoning loss, Intel shareholders will want to know new CEO Lip Bu-Tan's plans for the chipmaker's nascent contract manufacturing business. Intel is set to report its sixth consecutive net loss on Thursday, while revenue is expected to drop for a fifth straight quarter, according to estimates from LSEG data. The storied chipmaker, once synonymous with America's chipmaking heft, has lagged due to years of strategic missteps. Rival Nvidia has leaped ahead in the booming artificial intelligence chip industry, while rival AMD has been gaining share in Intel's mainstay personal computer and server semiconductor markets. CEO Tan has been focusing on a next-generation chipmaking process called 14A to win big external customers, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of dollars to develop. Such a move could lead to a big writedown, an expense that would surely displease investors even as Intel has signaled that the new technology will help it be more competitive against Taiwan's TSMC, the world's biggest chipmaking factory. Longer-term commentary on the company's plans for the 14A technology "will hold more weight this earnings call than anything else", Stifel analysts wrote ahead of the earnings. Intel is expected to report a net loss of about $1.25 billion for the April-June quarter, while its sales are expected to drop more than 7% to $11.92 billion. Last year was Intel's first unprofitable year since 1986. Writedowns could amount to hundreds of millions, if not billions, of dollars, according to analysts, and might impact the timeline for the foundry to break even. Intel's finance boss David Zinsner said in May he expected the unit to break even in 2027 and that would require external customers to generate low- to mid-single-digit billions in revenue. Intel's foundry unit is expected to generate $4.49 billion in sales in the second quarter, though a majority of this would come from chips Intel produces for itself, analysts said. STREAMLINING Since taking over as CEO in March, Tan has focused on shedding non-core assets. In April, Intel agreed to sell a 51% stake in its Altera programmable chip business for $4.46 billion. The company has also considered divesting its network and edge businesses as well. Intel's stock has risen 16% so far this year, compared with a 13.23% rise in the broader chip index. Investors will watch if Tan sells more assets, further flattens out the management structure, or expands the global layoffs the company announced last year. Intel, as with other chipmakers, is facing customers who are dragging their feet on their spending, due to uncertainty from U.S. President Donald Trump's trade war. Revenue at Intel's personal computer unit is expected to dip some 2% to $7.25 billion in the second quarter after customers pulled forward orders to the first three months of the year due to the threat of tariffs. Analog chipmaker Texas Instrument flagged similar troubles on Tuesday, sending its shares down 11% after hours. Chip-equipment maker ASML and TSMC have also warned tariff-related uncertainty has muddied the outlook for them. Revenue in Intel's data center unit, however, is expected to jump about 20% to $3.66 billion, signaling improving demand for traditional server chips after several quarters of poor sales. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

The protein boom is only beginning: Morning Brief
The protein boom is only beginning: Morning Brief

Yahoo

time18 minutes ago

  • Yahoo

The protein boom is only beginning: Morning Brief

They're cramming it into everything now. It's in pancakes and pasta, chips and cereal. Plant-based or harvested from the farm, it's the macro(nutrient) of the moment. And slices of corporate America are not so subtly asking: Have you met your protein goal today? Protein Doritos sounds like the ideal mashup for the gym rat snack fiends of the world. But it's not as farfetched a product as you might think. Pepsi (PEP) plans to unveil new protein offerings for some of its Frito-Lay and Quaker brands, part of a broader shift to enhance their products and strip away artificial flavors and colors. (But what is a tasty Cheeto if not a brazenly synthetic delight?) Pepsi's intended relaunch and extension of popular brands is a reaction to a consumer base on the hunt for healthier, cleaner options. Executives across the food and beverage world see a potential crisis unfolding. As demand for legacy products wavers, companies are reaching for new lines (like fiber, prebiotics, hydration, energy, and protein) to support the core business. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy "Protein is clearly a subsegment in our food and beverages categories that is growing fast," said PepsiCo CEO Ramon Laguarta on an earnings call last week. "Consumers are adopting protein solutions in the diet at a pace that was not the case a few months back, a few years back." Coca-Cola (KO), which reported on Tuesday, is undergoing its own notable evolution. Earlier this year, the company came out with a prebiotic soda brand, Simply Pop, an answer to the initial success of soda alternatives like Olipop and Poppi. Coca-Cola's Fairlife line of lactose-free, ultra-filtered milk and protein shakes (a fitness influencer staple) is touting double-digit volume growth. Coke CFO John Murphy told my colleague Brooke DiPalma that protein is another representation of consumers looking for products that help them in their daily lives, have fewer calories, or are perceived as healthier. Coca-Cola also confirmed it'll offer a Coke variant sweetened with US cane sugar this fall. A confluence of factors has amped up the recommendations and ability to up your protein intake. Strength training is having a moment, in a sort of vindication of gym bro fitness culture but also an expansion and reimagining of it. More young people, older people, and women are skipping (or supplementing) the treadmill and stationary bike and heading to the weight rack. Big, commercial gyms are swapping out cardio machines to make space for pumping iron. Planet Fitness (PLNT) announced plans at the start of the year to install new plate-loaded strength equipment — like bench presses and hack squats — into all of its more than 2,700 clubs by the end of 2025. Logically, protein follows to help realize the gains. Social media reflects and amplifies these trends. Popular influencers, like some of their Hollywood counterparts, are sporting more muscular physiques: wider backs, denser arms, and thicker legs. And they're touting the advantages of higher protein consumption as a method to change the way people look and feel. You have to eat more protein, they proclaim, to grow a dump truck. The opposite is true too: You generally need to actually train to put protein to work — and we may all be going overboard. Otherwise, you're just eating protein aspirationally. The explosion of GLP-1 weight-loss drugs from Eli Lilly (LLY) and Novo Nordisk (NVO) is another reason why consumers are seeing more protein-enriched foods on grocery aisles. As appetite-suppressed Ozempic and Wegovy users eat less and drop pounds, it isn't just body fat they're shedding. People in a calorie deficit generally lose fat and muscle, so healthcare providers advise patients to eat more protein to help preserve their muscle mass. And as a diet trend, the pro-protein movement is also just that, "pro" something, instead of the carb villainization of Atkins of the 2000s or low-fat of the 90s and before. For food and snack companies, it's an opportunity to capitalize on that turbocharged demand by providing something that's acceptable to eat, tackling health through consumption instead of austerity. So far, the market is gobbling it up. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Taiwan says trade delegation in Washington for talks on potential tariff and trade deal
Taiwan says trade delegation in Washington for talks on potential tariff and trade deal

Yahoo

time18 minutes ago

  • Yahoo

Taiwan says trade delegation in Washington for talks on potential tariff and trade deal

TAIPEI (Reuters) -Taiwan's government said on Wednesday that a trade delegation led by the vice premier was in Washington, D.C., for a new round of in-person negotiations with U.S. officials this week. U.S. President Donald Trump has proposed imposing tariffs of as much as 32% on Taiwan. No new tariffs have yet been announced for the democratically-governed island, although the 90-day pause on worldwide tariffs Trump proposed in April has already expired. The delegation, led by Vice Premier Cheng Li-chun, seeks to safeguard Taiwan's industrial interests, public health, and food security, according to a cabinet statement. The talks aim to promote balanced trade, and improve the overall economic and trade framework between the two sides, it added. "The team will continue working under the principles of protecting Taiwan's industries and public welfare,' the statement said. 'We hope to optimise the trade system and lay the groundwork for a stronger partnership in the future.' The Taiwan talks come as trade negotiations in the region accelerate. On Wednesday, the United States and Japan announced a trade agreement that includes a 15% U.S. import tariff on all Japanese goods, lower than the 25% Washington had proposed previously. The Japan deal is seen as one of the most significant among several agreements reached ahead of the August 1 tariff deadline the White House set after the original 90-day deadline expired with only a few successfully negotiated agreements. Taiwan has been seeking to strengthen its trade ties with major partners, particularly the U.S., Taiwan's second-largest trading partner after China, amid growing geopolitical and economic challenges. The outcome of the negotiations could play a key role in shaping the island's future trade strategy and its position in the global supply chain, and is crucial to Taiwan's export-driven economy.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store