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Chuck Hagel to Military: Prepare for More Cuts

Chuck Hagel
Chuck Hagel

Defense Secretary Chuck Hagel made his first major policy speech since taking the job and said the military should prepare for more budget cuts, Reuters reports.

The Defense Department is cutting $41 billion from its budget for the rest of this 2013 fiscal year and is facing a potential $500 billion spending cut over the next decade under sequestration, David Alexander and Phil Stewart report.

Those cuts would come in addition to the $487 billion reduction approved in 2011 as part of the debt ceiling compromise.

During the speech at the National Defense University, Hagel said the Pentagon’s personnel and retirement benefit costs could swallow up nearly all of its budget within the next 10-to-20 years if not addressed.

Reuters reports Hagel also said he is reviewing the Pentagon’s structure and could reduce the number of generals and civilian workers.

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