Esper Warns of ‘Legacy Systems’ Cuts Amid Virus Spending Surge

(Bloomberg) -- Defense Secretary Mark Esper signaled he'd protect major weapons programs from budget cuts and continue to target older “legacy systems” if the Pentagon is faced with flat or reduced funding amid surging federal spending to combat the coronavirus outbreak.

“My inclination is not to risk any of the modernization programs” but “to go back and pull out more of the legacy programs,” Esper told reporters from the Pentagon on Tuesday. “We need to invest those dollars into the future.”

Esper acknowledged that the Defense Department -- which has been looking at flat budgets beyond its $705 billion fiscal 2021 request -- might face renewed pressure in the wake of about $3 trillion in unanticipated federal spending related to the virus pandemic.

“We recognize the fact that the Congress has generously put -- what -- $3 trillion into the economy in the past couple of months and that's -- puts a tremendous load onto the debt -- the national debt and that puts a strain on the economy,” Esper said.

The rising price tag of the coronavirus response has fueled objections from some conservatives and deficit watchdogs. Esper appeared to be bracing for that criticism heading into fiscal 2022 budget planning.

“We have a lot of legacy programs out there right now,” he said. “I could pick dozens out from all branches of the service. So that is where I would start.”

While Esper didn't mention specific targets, examples of what he's talking about can be found in the Air Force's 2021 budget. That plan proposes “divesting,” or retiring, systems such as 44 A-10 Warthog planes, 24 C-130H cargo planes, 21 RQ-4 Global Hawk surveillance drones and 17 B-1B Lancer bombers.

In his previous role as Army secretary, Esper favored targeting older systems to free up money for the service's new air, long-range strike and ground vehicle priorities. His fiscal 2020 Army budget proposed terminating or reducing 186 existing programs, the biggest being the family of heavy tactical vehicles made by Oshkosh Corp., an aviation missions planning system, a forward reconnaissance and explosive detection system and a high-explosive guided mortar.