US $1.5 Trillion Defence Budget Targets Supply Chain Gaps

At a congressional hearing on Wednesday (local time), Defence Secretary Pete Hegseth said the $1.5 trillion budget would "supercharge" production capacity and restore the country's ability to build weapons systems at scale.

He said the plan includes major investments to expand manufacturing, strengthen supply chains, and accelerate the production of munitions, ships and advanced systems.

Lawmakers from both parties acknowledged that years of underinvestment have weakened the US industrial base, leaving it, in some areas, dependent on foreign suppliers, including potential adversaries.

Committee chairman Mike D. Rogers said the US is no longer able to produce critical defence equipment at the speed required.

"We're no longer capable of manufacturing for our warfighters at scale or speed," he said, pointing to gaps in shipbuilding and munitions production.

He highlighted the contrast with China, noting that Beijing dominates global shipbuilding while US capacity has sharply declined.

The budget seeks to reverse that trend by increasing spending on procurement and research, along with investments in domestic and allied supply chains.

Hegseth said the department is shifting from what he described as a "bureaucratic model to a business model," aimed at encouraging private sector investment.

He told lawmakers that recent efforts have already triggered significant industry response, including new facilities and manufacturing expansion backed by private capital.

Officials said the strategy includes sending long-term demand signals to companies, enabling them to scale production and invest in new plants and assembly lines.

Joint Chiefs Chairman Dan Caine said sustained investment is essential to maintain military readiness and adapt to evolving threats.

He said modern warfare increasingly depends on industrial capacity, technology and the ability to produce at scale.

- IANS