The U.S. Navy has released new budget guidance offering a comprehensive preview of the effect of budgets cuts and sequestration on the industrial front and sailors, reports Sam Fellman for Defense News.
The report says the Navy must hurdle two budget crises in 2013 includingthe $4 billion in automatic “sequestration” spending cuts and $4.6 billion in cuts due to the continuing budget resolution.
The guidance argues that the lack of a new spending bill blocks the Navy’s $5 billion shipbuilding plans.
It goes on to say that plans to buy a second Virginia-class attack submarine and a second destroyer for fiscal 2014 would have to be scrapped.
However, the cuts attributed to the subscription of last year’s budget are smaller compared to the impact of sequestration.
The U.S. Navy claims that sequestration will progressively impair the Navy’s response capabilities and services
According to the document, sequestration will force the cancellation of 10 destroyer and frigate cruises and deployment of the Bataan Amphibious Readiness Group.
It will also minimize exercises and port calls, as well as stop important repairs and overhauls for various Navy facilities and equipment.
The Navy predicts four strike groups would eventually shut down and 40 ships would be slashed from the U.S. fleet.