The Pentagon has unveiled a series of cost-cutting measures that will shed thousands of jobs and shut down an entire military command.
Defence Secretary Robert Gates said he hoped the shakeup would show Congress that the Pentagon would spend tax dollars wisely during tough economic times and address long-standing concerns about wasteful expenditure.
But Mr Gates warned in some of his strongest language yet against any future effort to actually cut overall defence spending, which is still growing, but at a much slower rate than it did in the years after the September 11th, 2001 attacks.
"My greatest fear is that in economic tough times that people will see the defence budget as the place to solve the nation's deficit problems," Mr Gates said."As I look around the world and see a more unstable world, more failed and failing states, countries that are investing heavily in their militaries ... I think that would be disastrous."
The US budget deficit hit a record $1.41 trillion in fiscal 2009 and is poised to grow wider this year, unnerving many Americans grappling with unemployment at 9.5 per cent. But many of the proposed cuts are also almost certain to upset members of Congress, who face the potential loss of jobs in their home districts in an election year.
Beyond US fiscal constraints, Pentagon officials are also mindful that their budget will come under increased scrutiny as the United States winds down the war in Iraq.
President Barack Obama has announced plans to start withdrawing troops from Afghanistan starting in July 2011, conditions permitting.
Mr Gates said it was important not to repeat past mistakes where economic troubles or "the winding down of a military campaign leads to steep and unwise reductions in defence."
"If you were to graph the defence budget going back the last 40 or 50 years, it would look like the EKG of a fibrillating heart," he said."What we need is modest, sustainable growth over a prolonged period of time that allows us to make sensible investment decisions."
Pentagon officials declined to say how much the measures would save exactly but described them as part of a previously announced effort to free up more than $100 billion to sustain US forces and upgrade its arsenal over the next five years.
The cost-cutting initiatives include scaling back the number of generals across the US military and slashing funds for defence department contractors by 10 per cent each year for the next three years - a potentially massive reduction involving thousands of people.
Mr Obama, in a statement, praised the announcement as part of Mr Gates' efforts to "reform the way the Pentagon does business."
Mr Gates also asked the armed forces to identify US military bases for closure and said he was shutting down the US Joint Forces Command (JFCOM), which has 2,800 US military and civilian staff and about 3,000 contractors.
Reuters