{"id":31962,"date":"2022-01-14T21:37:00","date_gmt":"2022-01-14T21:37:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2022\/01\/14\/inflation-unpredictable-funding-straining-navy-readiness-says-top-officer\/"},"modified":"2026-08-08T19:39:32","modified_gmt":"2026-08-08T19:39:32","slug":"inflation-unpredictable-funding-straining-navy-readiness-says-top-officer","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/congress\/budget\/2022\/01\/14\/inflation-unpredictable-funding-straining-navy-readiness-says-top-officer\/","title":{"rendered":"Inflation and unpredictable funding are straining Navy readiness, says top officer"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Inflation is harming Navy readiness and <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2022\/01\/09\/new-in-2022-unfinished-budget-work-will-drag-into-february\/\" target=\"_blank\">unpredictable funding<\/a> from extending a delayed defense spending bill will thwart deterrence against near peer competitors like China, according to Chief of Naval Operations Adm. Mike Gilday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe price of Fleet readiness is going up,\u201d Gilday said in his written testimony the House Appropriations Committee on Jan. 12. \u201cManpower, operations, and maintenance costs \u2014 which make up almost 60 percent of our budget \u2014 continue to grow above the rate of inflation. Making matters worse, inflation rose and remains at 6-8 percent, well above the historical average. This will likely exacerbate all of our readiness costs.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gilday\u2019s comments coincide with the U.S. Bureau of Labor Statistics reporting on Jan. 12 that inflation had reached the highest 12-month increase since June 1982.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, Gilday said the Navy\u2019s funding levels have remained \u201cflat relative to inflation for over a decade,\u201d and noted Congress stalling on passing spending bills also poses challenges to operational readiness, delays military construction projects and upends acquisition schedules, among other things.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/news\/pentagon-congress\/2022\/01\/09\/new-in-2022-unfinished-budget-work-will-drag-into-february\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP20041499245648.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">New in 2022: Unfinished budget work will drag into February<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Congress will try to finish the fiscal 2022 budget just as they start work on the fiscal 2023 spending plan.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Although both chambers of <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2022\/01\/09\/new-in-2022-unfinished-budget-work-will-drag-into-february\/\" target=\"_blank\">Congress passed<\/a> the National Defense Authorization Bill and the White House <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2021\/12\/15\/congress-passes-defense-policy-bill-with-budget-boost-military-justice-reforms\/\" target=\"_blank\">signed it<\/a> in December, funding can\u2019t kick in until the defense appropriations bill is passed. As a result, the Defense Department is funded under a <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2022\/01\/09\/this-week-in-congress-2022-starts-with-leftover-work-from-2021\/\" target=\"_blank\">continuing resolution<\/a> at least until Feb. 18, 2022, which means the Navy is operating under FY21\u2032s funding levels.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s problematic, Gilday said, since the funding levels for FY22 are significantly higher and unpredictable levels of funding wastes manpower and taxpayer money. Under the FY22 NDAA, the Pentagon would receive an additional $25 billion in funding in comparison to the previous year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gilday also voiced concern over the possibility of a year-long continuing resolution, or CR, in the event lawmakers can\u2019t reach a long-term agreement in February. Operating past February \u2014 up to a full year \u2014 under a CR would jeopardize national security, make sailors\u2019 missions more challenging, signal doubt to allies and partners, and would waste taxpayer dollars, he said.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/news\/pentagon-congress\/2021\/12\/15\/congress-passes-defense-policy-bill-with-budget-boost-military-justice-reforms\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"159\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Philippine-Sea-Liftoff.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Congress passes defense policy bill with budget boost, military justice reforms<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">After months of debate and weeks of angst, the Senate has sent its annual defense bill to the president.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Gilday summed up his request to lawmakers by urging them to avoid a full-year CR and enact FY22 funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs our competitors aggressively modernize their forces, a full-year CR cedes ground we cannot afford to yield,\u201d Gilday wrote. \u201cCRs further erode our deterrence posture against China.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe competition is on, and it is heating up,\u201d Gilday wrote. \u201cIf the CR continues past February, or worse, remains in effect through the end of the fiscal year, we inject unnecessary risk to our national security and concede advantages to our adversaries; we make our sailors\u2019 mission even more difficult; we signal doubt to allies and partners; and we waste American taxpayer dollars. All of which can be prevented.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other Navy leaders have also recently raised concerns about the continuing resolution and the budget. Adm. Daryl Caudle, <a href=\"https:\/\/www.navytimes.com\/digital-show-dailies\/surface-navy-association\/2022\/01\/12\/navy-should-be-offended-by-its-own-maintenance-and-manning-faults-admiral-says\/\" target=\"_blank\">commander of U.S. Fleet Forces Command<\/a>, said at the annual Surface Navy Association conference Jan. 12 that the Navy does not have the \u201cluxury to do more with less\u201d and called for more ships, no CR, and a bigger budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, lawmakers want the Navy to better outline what it needs to be most effective. For example, Rep. Elaine Luria, D-Va., pointed out at the Surface Navy Association conference on Jan. 12 that the Navy only requested one new guided-missile destroyer in the FY22 budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe all know in this room that the only ship that we\u2019re building on time, on budget and on schedule right now are DDGs,\u201d said Luria, a former Naval officer and graduate from the U.S. Naval Academy. \u201cAnd why would we only request to build one?\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, the NDAA legislation Congress passed and that was approved by the White House for FY22 includes funding for three new Arleigh Burke-class destroyers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe number one thing I want to do is to be able to provide more resources to the Navy,\u201d Luria said. \u201cBut when the Navy comes before Congress, there really isn\u2019t a push to say, \u2018This is what the Navy needs, this is what the nation needs.\u2019\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chief of Naval Operations Adm. Mike Gilday said the Navy\u2019s funding levels have remained \u201cflat relative to inflation for over a decade.&#8221;<\/p>\n","protected":false},"author":7,"featured_media":32569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":44,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[44,8,160,29,11,16,36,103,48],"tags":[],"coauthors":[3475],"class_list":["post-31962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-congress","category-daily-news-roundup","category-digital-show-dailies","category-global","category-naval","category-newsletters","category-surface-navy-association","category-the-americas"],"acf":{"subheadline":"","legacy_arc_id":"VY35LJFG2RDZXADCLSK3TVWYF4","arc_canonical_url":"\/news\/your-navy\/2022\/01\/14\/inflation-unpredictable-funding-straining-navy-readiness-says-top-officer\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inflation and unpredictable funding are straining Navy readiness, says top officer - Defense News<\/title>\n<meta name=\"description\" content=\"Chief of Naval Operations Adm. Mike Gilday said the Navy\u2019s funding levels have remained \u201cflat relative to inflation for over a decade.&quot;\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inflation and unpredictable funding are straining Navy readiness, says top officer\" \/>\n<meta property=\"og:description\" content=\"Chief of Naval Operations Adm. 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