Air Force leaders say their budgets aren’t big enough for all the service needs to do to prepare for great power competition with the likes of China—and amid this resource-constrained environment, one of the biggest item on the service’s books is the new Sentinel intercontinental ballistic missile.
But while some advocates have argued in favor of pulling out Sentinel and nuclear modernization into their own budget account separate from the Air Force, outgoing Secretary Frank Kendall is lukewarm on the idea, saying it wouldn’t really solve any of the services’ budgetary problems.
“You could separate it. You could put it into a separate account. That doesn’t make it cheaper,” Kendall told Air & Space Forces Magazine. In another interview, he said such an approach “doesn’t create new money.”
The Navy has moved some of its strategic deterrent capabilities to separate accounts, trying to relieve financial pressure on its day-to-day investment and operating accounts, but Kendall doesn’t see that as a long-term solution, for either the Navy or the Air Force.
Rather, he concluded that strategic nuclear modernization programs are “corporate problems” for the Pentagon writ large, especially given that DOD is attempt to modernize its entire nuclear triad at once for the first time in decades.
That is “an extraordinary circumstance, and everybody knows that. So when we build budgets … we approach it that way,” Kendall said, adding that, “It’s not presumed that the services have to eat the cost of these things that … come along generationally like this.”
Still, between the cost of Sentinel, recent budget caps, and other conventional modernization projects, the Air Force faces tough choices. Kendall has said the service cannot afford the Next-Generation Air Dominance fighter, Collaborative Combat Aircraft drones, and the Next-Generation Aerial refueling System all at once within its expected budgets.
The most recent estimate pegs the cost of Sentinel at more than $140 billion; an amount that could easily cover the cost of NGAD, CCA, and NGAS combined.
Despite this, Kendall said putting Sentinel in a separate account “just gives you a different level of visibility into it, which has probably some merit, but I don’t think it probably changes the equation.”
Budget Math
Another persistent issue advocates say complicates perceptions of the Air Force budget is the “pass-through,” a collection of funds that placed under the Air Force but that it does not control, instead going to various classified efforts.
Kendall said he never attempted to get rid of the “pass-through” for reasons similar to the nuclear modernization account.
“The people that do our budgets understand this,” he said. “I don’t think it’s a factor in their thinking about how they allocate resources.”
When the “pass-through” is taken out, the Air Force typically receives fewer resources than the Army and Navy, even though the National Defense Strategy for eight years has said that the Air Force and Navy have a disproportionate burden of preparing for conflict in the Pacific.
Yet Kendall said that the overall DOD budget shouldn’t be gauged on how evenly funds are allocated among to the services, calling it a “fundamental mistake” to do so.
“We should be looking at, what does the country need to defend itself, and then allocating resources according to that, and who gets what share should not really be part of the equation, as far as far as I’m concerned,” he said.
Budget Speed
Kendall said his biggest regret as he leaves office was the struggle to obtain sufficient funds for “completion and execution” of his program, such as the Operational Imperatives he created to highlight the technologies needed to deter or defeat an adversary like China.
“The biggest limitation we had over the last four years has been money, and the length of time it takes to get it,” he said. Between budget submission delays, continuing resolutions, and other budgetary obstacles, “it took … two and a half years to get money for things we knew we needed to do,” Kendall said.
Kendall did praise Congress for approving the Quick Start authorities he requested, so that urgent programs can get underway outside of the normal budgeting process “I’d love to see that expanded so that we don’t have to wait quite so long to do the early, low-cost, but very important work on a new program. That would be a terrific thing to expand. I think I wish I’d had the opportunity to do that,” he said. The Quick Start program has a ceiling of $100 million, which he has previously said is sufficient for the most urgent programs.
Kendall also thinks he succeeded in raising “a growing awareness throughout the department that we have got to be ready for a pure competitor unlike any that we’ve probably ever seen before, and that that has to be approached with a sense of commitment and urgency across the enterprise. … I think we’ve made a lot of progress in that regard, and that’s going to carry us forward.”
He’s not concerned that such focus will be lost under the new administration, “because I think the focus on China as the pacing challenge really was part of the National Security Strategy during the first Trump term. I think it will be a … central part of the strategy during the second term, just as it was for us in the last four years. So I think moving the enterprise in that direction overall is probably the most significant thing that I’ve done.”