The Pentagon's Middle East cash problem

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Nov 28, 2023 View in browser
 
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By Matt Berg and Alexander Ward

Deputy Defense Secretary Kathleen Hicks arrives for a closed-door briefing.

“We've gotten used to getting by, CR to CR, but it's with significant consequence,” Deputy Defense Secretary Kathleen Hicks said during a Nov. 21 event in Washington. “That has a cost. You can't buy back the time. You just can't.” | Chip Somodevilla/Getty Images

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With help from Lara Seligman, Paul McLeary and Daniel Lippman

The Pentagon’s newest effort to prevent a regional war from breaking out in the Middle East includes ordering an additional aircraft carrier strike group along with air defenses, fighter jets and hundreds of troops to be sent there.

But the biggest hurdle for the Defense Department may be back home, our own LARA SELIGMAN scoops today. Congressional dysfunction means the Pentagon has no money to pay for the buildup.

The military, like the rest of the federal government, is operating under a temporary funding measure that freezes spending at the previous year’s levels. And because the Middle East troop movements weren’t planned, the Pentagon has had to pull money from existing operations and maintenance accounts, DOD spokesperson CHRIS SHERWOOD said. President JOE BIDEN signed the stopgap measure this month to keep the government open until lawmakers can agree on a full-year spending bill.

Because DOD had to hunt for funds, that means less money for training, exercises and deployments the military had already planned for the year. Some contractual payments could be delayed, Sherwood said.

“Current events have revised some of the operational assumptions used to develop the FY 2024 President’s Budget request. Specifically, neither the base budget request nor the FY 2024 supplemental request included funding for U.S. operations related to Israel,” he said.

“We’re taking it out of hide,” Sherwood added.

The buildup in the Middle East — which has included extending the deployment of the Gerald R. Ford Carrier Strike Group operating off the coast of Israel — has therefore forced the military departments and U.S. Central Command to reassess the requirements for current and future operations based on the developing conflict, he said.

As of this afternoon, DOD said it was still working on releasing an estimate of the total cost of the U.S. support for Israel.

Top Pentagon officials warn year after year about the harm that temporary funding measures have on military readiness. Operating under a stopgap measure prevents the department from starting any new programs or paying for anything above the previous year’s levels.

That burden is now weighing heavier than usual on DOD, as the Pentagon supports two wars at once: in Ukraine and in Israel.

“We've gotten used to getting by, CR to CR, but it's with significant consequence,” Deputy Defense Secretary KATHLEEN HICKS said during a Nov. 21 event in Washington. “That has a cost. You can't buy back the time. You just can't.”

Read Lara’s full story here.

A message from Lockheed Martin:

Our mission is to prepare you for the future by engineering advanced capabilities today.

Many of today’s military systems and platforms were designed to operate independently. Through our 21st Century Security vision, Lockheed Martin is accelerating innovation, connecting defense and digital to enhance the performance of major platforms, to equip customers to stay ahead of emerging threats. Learn more.

 
The Inbox

WEAPONS SALE SPYING: A controversial surveillance authority has been key to helping U.S. intelligence agencies stop the sale of certain weapons parts to Iran in recent years, officials familiar with the matter told our own ERIN BANCO and JOHN SAKELLARIADIS.

The CIA and other intelligence agencies used information gathered by monitoring the electronic communications of foreign weapons manufacturers to stop several shipments of advanced weapons parts to Iran by land, air and sea, the two U.S. intelligence officials told our colleagues.

The campaign came as the administration pushed to prevent Iran from building up its ballistic missile program — one officials continue to worry Tehran is using to help Russia on the battlefield in Ukraine. Officials have also focused on limiting Iran’s intervention in conflicts that impact U.S. national security more broadly, including the war between Israel and Hamas.

The disclosure is the administration’s latest argument that the spying authority — Section 702 of the Foreign Intelligence Surveillance Act — is crucial to national security as it fights to get Congress to reauthorize the tool before it expires at the end of the year.

Scroll to On The Hill for more on the future of Section 702.

FIGHT SMARTER: Washington has warned Israel that it needs to be more deliberate in its attacks on the Gaza Strip and avoid further displacing Palestinians to avoid a humanitarian crisis, senior Biden administration officials told The New York Times’ ERICA GREEN.

Humanitarian support networks around the world wouldn’t be able to handle the crisis that could come if Israel continues the level of bombardment on southern Gaza in the coming weeks, the officials said. Most of Gaza’s 2.3 million residents have been displaced since Hamas’ Oct. 7 attack due to Israel’s operation in retaliation, according to the U.N.

Speaking with The Washington Post’s HAZEM BALOUSHA and LOVEDAY MORRIS, a U.S. official explicitly stated that position: “It is extremely important” that the offensive must “be done in a way that is to a maximum extent not designed to produce significant displacement of persons.”

It’s the White House’s strongest warning yet to Israel that it should scale back the intensity of its military tactics. The Israeli government was receptive to the plea, the officials said, adding that the White House is hopeful that humanitarian aid into Gaza could continue even when fighting resumes.

CIA IN QATAR: CIA Director BILL BURNS arrived in Doha today to push for an expansive hostage deal between Israel and Hamas during secret meetings with Israel’s spy chief and Qatar’s prime minister, three people familiar with the visit told the Post’s JOHN HUDSON.

He’s hoping to convince officials to agree to a longer pause in fighting and broaden the hostage deals, which have included just women and children, to include men and military personnel. Burns will also advocate for the release of the eight or nine American hostages being held by Hamas.

Burns has played a key role in the hostage negotiations for the U.S. due to his extensive contacts in the Middle East and with Israel’s Mossad intelligence service: “They listen to him and highly respect him,” a person familiar with the negotiations told the Post.

‘RIDICULOUS’: Israeli Prime Minister BENJAMIN NETANYAHU vehemently denied accusations he allowed Qatar to fund and strengthen the militant group Hamas in order to divide Palestinians into rival political camps, our colleagues PAUL RONZHEIMER and CLAUDIA CHIAPPA report.

Netanyahu’s opponents in Israel argue his government spent years actively boosting Hamas in Gaza, by allowing Qatar to channel hundreds of millions of dollars to the coastal enclave in a risky game of “divide-and-rule,” that was meant to play the Islamist militants from Hamas off against the Palestinian Authority in the West Bank.

“It’s a big lie that I wanted to build [up] Hamas. Ridiculous,” Netanyahu said in an interview with Axel Springer, POLITICO’s parent company. “You don’t go to war three times with Hamas or do major military operations if you want to build up Hamas.”

MISSED TARGET: One of the dozens of attacks on American troops in Syria over the last six weeks might actually have been targeting a small U.S. outpost just across the border in Jordan, a Pentagon official and outside expert familiar with the incident told Lara and PAUL McLEARY.

On Oct. 23, Iran-backed militants in Syria launched multiple one-way attack drones close to al-Tanf Garrison, a small base near the border with Jordan, according to a DOD official who was granted anonymity to discuss a sensitive topic. But coalition forces across the border, at a small outpost in Jordan called Tower 22, actually took down the drone, which fell on the Syria side.

The DOD official said it’s difficult to determine what the militia was actually targeting, particularly since their weapons are not always accurate. A statement from the Iran-backed group, which took responsibility for the attack, said it targeted “two American-occupation bases, al-Tanf and al-Rukban,” which refers to the Rukban refugee camp that is attached to Tower 22, but is across the border in Syria.

Iran has long sought to put pressure on the American military presence in Iraq and Syria with sporadic attacks on troops there. But if Iranian proxies are now targeting U.S. troops in Jordan, that could be seen as an escalation. For now, though, the circumstances are too murky to draw any such conclusion.

GERSHKOVICH DETENTION EXTENDED: A Russian court today extended the prison sentence for EVAN GERSHKOVICH, The Wall Street Journal reporter who was jailed on contested espionage charges in March, for the third time, WSJ’s ANN SIMMONS reports. He’ll be awaiting trial behind bars until at least Jan. 30, marking 10 months in detention.

IT’S TUESDAY: Thanks for tuning in to NatSec Daily. This space is reserved for the top U.S. and foreign officials, the lawmakers, the lobbyists, the experts and the people like you who care about how the natsec sausage gets made. Aim your tips and comments at award@politico.com and mberg@politico.com, and follow us on X at @alexbward and @mattberg33.

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2024

KOCH NETWORK BACKS HALEY: The Koch Brothers’ political network announced its endorsement of NIKKI HALEY’s presidential bid.

In a memo today, Americans for Prosperity Action contended that Haley is in the best position to beat former President DONALD TRUMP in the primary and trounce current Biden in the general election.

But the memo doesn’t mention Haley’s foreign policy, which is the most hawkish among the top Republican candidates. The Koch network has spent millions to promote a more restrained worldview that fits better with Trump or Florida Gov. RON DeSANTIS. The exclusion of Haley’s foreign policy in the endorsement indicates the Koch network is looking past her foreign policy to support what the network sees as a winning candidate.

Keystrokes

THE ANTI-HUAWEI TOUR: The U.S. and European Union have banded together to get the world to stop using Huawei technology, our own MATHIEU POLLET and JOHN HENDEL report, and successfully got Costa Rica to forgo the cheap and ubiquitous Chinese products.

In August, the Central American country’s president signed a law banning Huawei use, and that “decision was the result of sustained pressure from both American President Joe Biden’s White House and its European allies, which had been working their muscle for months to get San José officials to turn their backs on Chinese kit,” our colleagues write.

“Officials and diplomats in Washington, D.C., Brussels and other Western capitals have aligned strategies to target third-country governments with diplomatic pressure and financial support to drop Chinese telecom vendors in favor of Europe’s alternatives, Swedish Ericsson and Finnish Nokia,” Pollet and Hendel add. “Some of the countries targeted include Costa Rica, the Philippines, Jamaica and Kenya. Ukraine’s deputy digital minister YEGOR DUBYNSKYI told POLITICO in October that Kyiv too was in talks with allies on the issue.”

That the U.S. and Europe are turning against Huawei was known, but the extent of their partnership to thwart the Chinese telecom giant around the world is less understood.

The Complex

TEHRAN-ING UP THE BILL: Iran finalized purchases for Russian-made Sukhoi Su-35 fighter jets and helicopters, boosting its military, which only has a few dozen strike aircraft, Reuters’ ELWELY ELWELLY reports.

Iran's Deputy Defense Minister MEHDI FARAHI confirmed the deal to Iranian media outlet Tasnim, a move that underscores the tightening military relationship between Tehran and Moscow, which has worried U.S. officials.

On the Hill

SPY TOOL BRIEFINGS: Two intelligence chiefs, one current and one former, are expected to separately brief the House Judiciary Committee tonight on proposed changes to a controversial surveillance law.

Director of National Intelligence AVRIL HAINES and former Trump administration DNI JOHN RATCLIFFE will join a stream of experts appearing before Judiciary members as Congress remains divided on reauthorizing part of the Foreign Intelligence Surveillance Act, two people with knowledge of the matter told our own OLIVIA BEAVERS and JORDAIN CARNEY.

Both the House Judiciary and Intelligence Committees are expected to soon unveil separate bills to renew FISA’s Section 702 with new guardrails and limits. As lawmakers prepare to debate, both committees have been briefed by former and current intelligence officials, as well as conducted a quiet education effort with their colleagues, many of whom will be voting on surveillance authorization for the first time.

DEFENSE SPENDING TALKS: The full conference committee appointed to reconcile two competing defense policy bills will hold its first and likely only meeting Wednesday, three people familiar with the process told our own CONNOR O’BRIEN (for Pros!).

The meeting comes as leaders of the House and Senate Armed Services committees aim to finalize and file a compromise version of the National Defense Authorization Act as early as this week.

 

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Broadsides

SPY CHIEF SPOUSE POISONED: Ukrainian spy chief KYRYLO BUDANOV’s wife is being treated in hospital for heavy metals poisoning, our own ZOYA SHEFTALOVICH reports.

MARIANNA BUDANOVA was “poisoned by heavy metals,” ANDRIY YUSOV, a spokesperson at the GUR military intelligence agency, told Radio Free Europe/Radio Liberty’s Ukrainian Service in an interview. “She is now undergoing a course of treatment, which is already coming to an end.”

Ukrainian media also reported that several military intelligence officials had been poisoned, along with Marianna. Kyrylo said the Kremlin tried to kill him 10 times this summer, The NYT’s MARC SANTORA and MARIA VARENIKOVA report. If his wife was successfully targeted by Russia, it indicates that agents were operating closer to Ukraine’s top officials than thought.

FINNISH-ED: Helsinki closed its last remaining open bordering crossing with Russia today amid accusations that Moscow has been funneling migrants to the Finnish border over the past month, our own PIERRE EMMANUEL NGENDAKUMANA reports.

About 900 asylum seekers crossed from Russia to Finland this month, overwhelming the country’s eight border crossings. Finnish Foreign Minister ELINA VALTONEN told NatSec Daily last week that Helsinki has “evidence of Russian authorities being engaged in actively bringing these people” toward the border, though Moscow has denied the charges.

Transitions

JOE CROCE is now government relations director at Peraton. He most recently was deputy assistant national cyber director for budget and assessment at the White House.

ANDREW MUELLER has joined Crowley as vice president of government relations. He was most recently the senior director of policy and international development for General Atomics Electromagnetic Systems.

MELANIE HARRIS has joined Invariant as senior director. She previously served as the U.K. digital policy lead for Amazon Web Services in London and worked for the House Armed Services Committee.

 

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What to Read

DAOUD KUTTAB, The Washington Post: Why recognizing Palestine is the key to ending the war in Gaza

LIANA FIX and MICHAEL KIMMAGE, Foreign Affairs: A containment strategy for Ukraine

JOSEPH BOSCO, The Hill: America’s adversaries have reason to fear Nikki Haley

Tomorrow Today

The House Homeland Security Committee, 10 a.m.: The high north: how U.S. Arctic strategy impacts homeland security

Henry L. Stimson Center, 10 a.m.: The implications of the Gaza war

Foreign Policy, 10 a.m.: Strategies for effective AI governance

The Asia Society Policy Institute, 10 a.m.: Deciphering the U.S.-China AI showdown

The House Foreign Affairs Middle East, North Africa and Central Asia Subcommittee, 2 p.m.: Roundtable with families of hostages held by Hamas

Thanks to our editor, Emma Anderson, who causes all the dysfunction in this newsletter.

We also thank our producer, Gregory Svirnovskiy, who has struck countless deals between us.

A message from Lockheed Martin:

Our mission is to prepare you for the future by engineering advanced capabilities today.

Many of today’s military systems and platforms were designed to operate independently. Through our 21st Century Security vision, Lockheed Martin is accelerating innovation, connecting defense and digital to enhance the performance of major platforms, to equip customers to stay ahead of emerging threats. Learn more.

 
 

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