Federal Drive

Deep Defense contracting cuts may be on hold

While defense contractors are girding for inevitable budget cuts, others increasingly see a silver lining.

Federal News Network Staff

June 23, 2011 9:40 am

< a min read

Defense contractors may be bracing for budget cuts, but now comes word that those cuts could be delayed. The Wall Street Journal reports that Pentagon and industry officials believe they’ll see small cuts over the next couple of years, and that the deeper cuts will probably be delayed. They believe that many big-ticket weapons programs are likely insulated from dramatic reductions at least until incoming Defense Secretary Leon Panetta finishes a strategic review and reassesses spending plans.

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