Defense contractors have been watching their stocks soar as they anxiously await the results of Congressional defense spending fight – PB/TK
Defense firms grow anxious over possible spending cuts
By Ellen Mitchell / July 27 2017
Defense companies enjoying high earnings and rising stock prices are looking with anxiety at the legislative fight over spending for the Pentagon.
President Trump and House Republicans would like to steer tens of billions more funding to the Pentagon, which could be a boon for firms with significant government contracts such as Lockheed Martin and Northrop Grumman.
Trump has proposed $603 billion in spending for national security, well above current funding. House Republicans are proposing an even more generous $621.5 billion, while the Senate Armed Services Committee would allocate $632 billion.
The problem is that a higher defense spending bill will need bipartisan support. Senate Republicans will need to cut a deal with Democrats, who will not back more defense spending at the cost of domestic discretionary spending, in order to modify budget caps. It’s not yet clear how a compromise can be made.
Continue to thehill.com article: http://thehill.com/policy/defense/344023-defense-firms-grow-anxious-over-possible-spending-cuts
