Pentagon Diverts $8 Billion from R&D Funds to Pay Troops

The Department of Defense (DoD) has made a significant decision to divert $8 billion from its fiscal year 2025 research and development (R&D) budget. This action aims to ensure that military personnel receive their salaries amid an ongoing government shutdown.
Plan to Utilize R&D Funds
In a statement released on Saturday, a DoD official confirmed that this fund reallocation will be used to disburse mid-month paychecks to service members. President Donald Trump has instructed Secretary of War Pete Hegseth to utilize available funds to facilitate these payments by October 15, 2023.
Details on Fund Allocation
- The funds are sourced from unobligated research, development, testing, and evaluation (RDTE) resources from the previous fiscal year.
- The government shutdown has prompted the DoD to start furloughs among its civilian workforce.
- Service members continue to work without immediate pay until a fiscal year 2026 spending bill is enacted or a deal is reached to reopen the government.
Congress may also consider passing special agreements to cover troop salaries, as has occurred in previous shutdowns.
Impact on Development Programs
Officials have not clarified how long the diverted funds will last, nor if more financial resources are available for troop pay. However, it is expected that ongoing development programs may face setbacks due to this financial decision.
Political Context
The decision comes as political tensions continue, with Republicans and the Trump administration clashing with Democrats over the need for extending federal subsidies related to health insurance under the Affordable Care Act.
This unusual maneuver by the DoD to unilaterally redirect funds has raised concerns about its implications for future weapon development and technology advancements.