Pentagon officials must make across- the-board reductions in weapons and research funds instead of slices that could spare some programs under the automatic federal budget cuts scheduled to take effect next week, according to the White House Office of Management and Budget.Whether cuts are made at the so-called “program, project and activity,” level instead of in larger “accounts” such as “Air Force Aircraft” has been one of the biggest unanswered questions about what happens if the automatic cuts known as sequestration take effect at the start of the new year.
The arcane difference in how Pentagon budget cuts are implemented has major implications for defense companies because if they had greater flexibility, the military services might be able to reduce some programs more than others, according to officials and analysts.
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