US Defense Sec Esper calls for funding focus on modernisation programs

For the first time in nearly a century, two great powers stare across the vast expanse of the Pacific, the incumbent heavyweight champion – the US, tired and battle-weary from decades of conflict in the Middle East – is being circled by the upstart – China, seeking to shake off the last vestiges of the “century of humiliation” and ascend to its position as a world leader. 

In response, US President Donald Trump has sought to counter the rise of China by providing an unprecedented level of funding to the US Armed Forces, with a focus on expanding the modernisation and replacement schedule of Cold War-era legacy platforms in favor of fifth-generation air, land, sea and multidomain capabilities supported by an expected budget of US$738 billion for FY2020.

However, while the figure is less than the US$750 billion President Trump called for earlier this year, the US$738 billion figure will still see a major ramp-up in the modernisation, recapitalisation and expansion of the US military at a time of increasing great power rivalry. 

Ranking Republican lawmaker on the House appropriations defense subcommittee Ken Calvert welcomed the US$20 billion increase over the preceding 2019 budget, explaining: “The bill increases funding for operations and maintenance, and procurement for the next generation of equipment to ensure our men and women in uniform always have the tactical advantage.”

This was reinforced by Senate appropriations committee chairman Richard Shelby of Alabama, who stated the deal would see “robust investment in rebuilding our military and secures significant funds for the President’s border wall system”.

The 2020 National Defense Authorization Act will see a number of major acquisition, organisational restructures and modernisation programs to support America’s shift away from decades of conflict in Afghanistan and the Middle East, with a US$15 billion increase in the procurement budget, bringing the Pentagon’s total acquisition budget to US$146 billion. 

However, this funding initiative has run aground following the successive multitrillion-dollar government stimulus packages to keep the US economy and businesses afloat amid the COVID-19 crisis, prompting US Defense Secretary Mark Esper to refocus the US defence investment away from maintaining legacy platforms to focus on modernisation programs of key capabilities and platforms. 

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Modernisation is the key priority

A core focus of the US pivot towards the Indo-Pacific and countering the economic, political and strategic assertiveness of China is modernising and expanding the capability of the US Air Force and its Indo-Pacific-based Air Force assets. 

Secretary Esper, speaking to journalists in Washington, said, “Frankly, my inclination is not to risk any in the modernisation programs; it’s to go back and pull out more of the legacy programs… We need to move away from legacy [programs] and we need to invest those dollars into the future. We have a lot of legacy programs out there right now. I could pick dozens out from all branches of the services. So, that is where I would start.”

Expanding on this, Esper added specific emphasis on countering the rise of China in the Indo-Pacific and Russia in Europe, stating, “What that would mean is probably accepting some near-term risk, but I think that is something [that has to happen], given the trajectory that we see China is on, and we know where Russia may be going in the coming years. So, that is one place where I would begin, but we’re going to be working through this course of action.”

This focus on expanding and enhancing key strategic capabilities across the respective branches of the US Armed Forces is in line with the broader modernisation program identified as a key focus of the 2020 National Defense Authorization Act. 

The act sees US$1.87 billion for aviation acquisition programs, including the purchase of 98 F-35 aircraft, 20 more than requested by President Trump, and eight Boeing F-15EX aircraft to recapitalise the Air Force and Air National Guard’s F-15C/D fleets. 

Additionally, the figure will support the acquisition of 12 KC-46A tanker aircraft as part of the ongoing aerial refuelling recapitalisation program, 24 F-18 E/F Block III Super Hornets for the US Navy, nine P-8A Poseidon maritime patrol/anti-submarine aircraft and 74 UH-60 Black Hawk helicopters. 

The US Navy was a major winner out of the increased budget, with US$23.9 billion approved for the acquisition of 14 warships, including three Flight III DDG-51 Arleigh Burke Class guided missile destroyers, a guided missile frigate, a single America Class landing helicopter dock and a single LX-R amphibious transport dock to support the US Marines. 

Additionally, the US Navy will receive an Austal-designed expeditionary fast transport ship, two replenishment oilers, two tugs and the next Ford Class supercarrier. However, the funds will provide for three Virginia Class fast-attack submarines, one less than the President requested. 

The US Navy’s ambitious plans to replace the Super Hornets saw a major hit, with the requested US$20.7 million rejected, with just US$7.1 million approved to support the development of the US Navy’s F/A-XX sixth-generation fighter concept. 

Both the US Army and Marine Corps will benefit from US$1.7 billion for M1A2 SEPv3 upgrades for their respective fleets of Abrams main battle tanks, and US$1.5 billion approved for the acquisition of additional Joint Light Tactical Vehicles and a program increase of US$250 million to support a 30mm cannon upgrade for the US Army’s Stryker armoured vehicles. 

Missile defence, border security and election security

The 2020 National Defense Authorization Act is also expected to fully fund the US$1.2 billion request for national security space launch and provide US$10.4 billion to the Missile Defense Agency – including US$108 million for a space-based sensor array to focus on tracking hypersonic and ballistic missiles.

Not leaving empty-handed, the Democrats secured a number of wins outside the act, seeing US$425 million for election security grants ahead of the 2020 presidential election – a key focus for the Democrats.  

This also saw the White House receiving US$1.38 billion in Homeland Security funding to support the President’s border wall along the US-Mexico border wall – significantly less than the US$5 billion the President originally requested for the contentious program. 

Your thoughts

Enhancing Australia’s capacity to act as an independent power, incorporating great power-style strategic economic, diplomatic and military capability serves as a powerful symbol of Australia’s sovereignty and evolving responsibilities in supporting and enhancing the security and prosperity of Indo-Pacific Asia. 

Shifting the public discussion away from the default Australian position of “it is all a little too difficult, so let’s not bother” will yield unprecedented economic, diplomatic, political and strategic opportunities for the nation. 

Rear Admiral Kevin Scarce also issued a challenge for Australia’s political and strategic policy leaders, saying: 

“If we observe that the level of debate among our leaders is characterised by mud-slinging, obfuscation and the deliberate misrepresentation of the views of others, why would the community behave differently... Our failure to do so will leave a very damaging legacy for future generations.”

Get involved with the discussion and let us know your thoughts on Australia’s future role and position in the Indo-Pacific and what you would like to see from Australia’s political leaders in terms of shaking up the nation’s approach to our regional partners.

We would also like to hear your thoughts on the avenues Australia should pursue to support long-term economic growth and development in support of national security in the comments section below, or get in touch with This email address is being protected from spambots. You need JavaScript enabled to view it.or at This email address is being protected from spambots. You need JavaScript enabled to view it.