Biden Signs $912 Trillion National Defense Authorization Act... Largest Defense Budget Ever

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] U.S. President Joe Biden has signed the largest-ever National Defense Authorization Act (NDAA) worth $768 billion (approximately 912 trillion KRW). The bill includes massive funding for arms purchases and support for key conflict zones under the pretext of strengthening military capabilities against China and Russia. It also contains provisions to maintain the current level of U.S. forces stationed in South Korea, which had been a subject of controversy within the United States.

On the 27th (local time), the White House announced that President Biden signed the NDAA for the 2022 fiscal year (October 2021 to September 2022), which includes the defense budget. The bill allocates a record $768 billion for U.S. defense-related spending next year, about a 5% increase compared to the 2021 fiscal year defense budget.

This defense budget includes a 2.7% average pay raise for soldiers and substantial funding for purchasing fighter jets and warships to enhance military responsiveness against China and Russia. It also mandates research to closely address traditional and emerging threats, including Russia and China, and requires the Department of Defense to establish and report on a "grand strategy" to counter China, including hypersonic missile testing.

In particular, $7.1 billion is allocated for deterrence initiatives related to conflicts in the Pacific region, keeping in mind disputes with China in the South China Sea and the Taiwan Strait. Additionally, the White House explained that $4 billion is allocated for deterrence initiatives in Europe due to Russia's border conflict with Ukraine, and $300 million is included for Ukraine security assistance in this defense budget.

Furthermore, emphasizing the need to strengthen alliances in the Indo-Pacific region to compete strategically with China, the bill includes provisions to reinforce the South Korea-U.S. alliance and maintain the current level of 28,500 U.S. troops stationed in South Korea.

However, the reduction restriction clause that prevented the use of funds to reduce U.S. forces in South Korea below current levels, which was included in previous NDAAs, has been removed. It is reported that the U.S. Congress and administration explained to South Korea that since the Biden administration, which values alliances, has no intention to reduce U.S. forces in South Korea, this clause is no longer necessary.

This content was produced with the assistance of AI translation services.