Defense & Aerospace Report

Defense & Aerospace Report Podcast [Washington Roundtable Jul 11, ’25]

Jul 11, 2025
Michael Herson, a lobbyist for American Defense International, joins Dov Zakheim, former Pentagon comptroller, and Patrick Cronin, Asia Pacific Security Chair at the Hudson Institute, along with Jim Townsend, ex-Pentagon Europe Chief. They discuss the legislative consequences of a tax-cut bill affecting defense funding and military readiness. The guests analyze rising geopolitical tensions, including U.S. tariffs and a newly forged UK-France nuclear pact, while also addressing escalating conflicts in Ukraine and the Middle East.
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INSIGHT

Debt Impact of Tax Cut Bill

  • The recent "big, beautiful bill" cuts taxes but increases the debt by trillions over the next decade.
  • It restores some NASA funding and provides defense money, yet many Republican voters were reluctant or opposed due to health care concerns.
INSIGHT

Defense Budget and Drone Acquisition Reforms

  • The administration's defense budget includes extra money via a reconciliation bill, not the base budget.
  • New drone acquisition reforms let lower-ranked officers buy drones quickly, treating them as consumables.
INSIGHT

Impact of Proposed State Department Cuts

  • Proposed 15% State Department cuts focus on US-based support, aiming to protect overseas diplomatic operations.
  • State Department leaders face challenges balancing budgets while maintaining global diplomatic engagement amid tariff tensions.
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