Balancing Act
As Benefits for Veterans Climb, Military Spending Feels Squeeze
Congress's Generosity May Hurt Weapons, Other Programs; Lobby Group's Power Grows Trying to Find $100 Billion
By GREG JAFFE
Staff Reporter of THE WALL STREET JOURNAL
January 25, 2005; Page A1
WASHINGTON -- With the wars in Iraq and Afghanistan badly straining its forces, the Pentagon is facing an awkward problem: Military retirees and their families are absorbing billions of dollars that military leaders would rather use to help troops fighting today. Congress, pressured by veterans groups, has in recent years boosted military pensions, health insurance and benefits for widows of retirees. Internal Pentagon documents forecast that the lawmakers' generosity since 1999 will force the federal government to find about $100 billion over the next six years to cover the new benefits.
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Rising veterans' benefits are a big factor behind the billions of dollars in weapons cuts to be proposed when President Bush unveils next year's budget blueprint early next month. New retiree entitlements also are crimping the Pentagon's ability to increase incentives for enlistment at a time of dangerous, yearlong Iraq deployments.
The military's budget woes are similar to the broader problem facing the U.S. government, as spending on aging baby boomers -- in the form of Social Security and Medicare -- squeezes out funds for other programs, from health care for the poor to scientific research. The pinch is exacerbated by Mr. Bush's campaign promise not to raise taxes. The private sector, particularly auto makers and the steel industry, is being similarly squeezed. Many companies are holding the line and in some cases cutting spending on pensions and health care for future retirees. The Pentagon, which faces an increasingly aggressive and effective veterans lobby, doesn't have that luxury. The main force among veterans groups has been the Military Officers Association of America, an Alexandria, Va.-based group boasting about 400,000 dues-paying members and a board packed with retired generals and admirals.
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The politics of veterans benefits, meanwhile, are roiling the Republican Congressional majority. Earlier this month, the House Republican leadership took the unusual step of stripping New Jersey Rep. Christopher Smith of his chairmanship of the Veterans Affairs Committee. Mr. Smith had irked House leaders when he pushed so aggressively for veterans benefits that he at times threatened to oppose their spending plans -- and President Bush's -- unless more retiree benefits were included.
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Write to Greg Jaffe at greg.jaffe@wsj.com
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