If 
Congress does not reach a deficit-reduction deal before January, the Pentagon will have to cut its base budget by $54.7 billion in Fiscal 2013 under sequestration, according to the White House’s newly released report to Congress. That’s a 9.4 percent reduction to each of the services’ discretionary accounts—except for personnel accounts, which are exempt—states the document, issued on Sept. 14 by the White House budget office. Congress mandated the report under the Sequestration Transparency Act of 2012 in order to understand sequestration’s impact on defense accounts and federal non-defense programs in Fiscal 2013. Among the Air Force’s cuts would be a $5.2 billion reduction to operations and maintenance activities; $2.7 billion hit to research, development, test, and evaluation work; $2 billion reduction in aircraft procurement; and $167 million less for military construction, according to the report. “While the Department of Defense would be able to shift funds to ensure warfighting and critical military readiness capabilities were not degraded, sequestration would result in a reduction in readiness of many non-deployed units, delays in investments in new equipment and facilities, cutbacks in equipment repairs, declines in military research and development efforts, and reductions in base services for military families,” states the report. (Full text of report; caution, large-sized file.)
For reaction to the report, see:
SASC Chairman Levin’s statement
Sens. McCain, Ayotte, Lieberman statement
HASC Chairman McKeon’s statement
HASC Ranking Member Smith’s statement
AIA President Blakey’s statement