Robbing Peter to Pay (Sergeant) Paul

The government shutdown impacts hit defense research.

Good morning,

The estimated cost of the U.S. federal government shutdown is now at $27.8B. The administration is capitalizing on the shutdown to enact further federal layoffs, this time according to Russel Vought’s plans and not Elon Musk’s and DOGE’s hack-and-slash approach. VPOTUS Vance warns of deeper cuts to come. In order to pay the military’s pay checks, the Pentagon took $8B in unobligated R&D funds (R-1). That represents a little less than 5% of the year’s R&D funds, but still impactful.

On the upside, the Senate passed its version of the 2026 National Defense Authorization Act. Next, the House and Senate will reconcile differences between their two policy bills. The 2026 NDAA is expected to have broad impacts the defense acquisition system, reforming what has come to be seen as broken and outdated.

President Trump is enjoying the adulation he’s receiving for his role in pushing the Gaza ceasefire that saw this morning’s release of the final remaining, twenty Hamas-held …