U.S. Representative Mike Rogers (R-AL), Lead Republican of the House Armed Services Committee, asked Admiral Mike Gilday, Chief of Naval Operations, about the impact that inflation will have on the Navy. Adm. Gilday told the House Armed Services Committee that he is concerned about inflation and noted that it "adds another stressor to this budget."
Previously, Rogers led HASC Republicans in urging the Biden administration to present Congress with a budget request 5% above the rate of inflation. Rogers and Senator Jim Inhofe both expressed their concern that the Department of Defense was not doing enough to address inflation.
Lead Republican Rogers:"We're hearing from industry about significant inflationary increases in price and materials and commodities. For example, we've heard there's significant cost growth with the price of the next oiler the Navy has been budgeted for. How is inflation currently impacting your service – are you concerned about the impacts of this record inflation for FY23"
Adm. Gilday: "Yes, sir, I am concerned.
"So with respect to unfunded requirements that inflation has exacerbated this year, potentially an additional $2 billion for fuel alone. I think you mentioned the industrial base. So we will see increases in our military construction projects, we will see increases in ship production, submarine production, airline production, aircraft production lines – due to inflation. On our Sailors and their families that's where we'll see an impact as well. A good example is basic allowance for housing, and although the 23 budget proposes about a 2.4% increase in housing allowance, that does not keep pace with the housing market that exists today, and so that puts them under pressure.
"The bottom line, sir, is that yes, inflation adds another stressor to this to this budget as we try to field the most lethal, capable, and effective Navy and Marine Corps today."
