Pentagon sees big impact if Congress fails to pass FY16 budget

WASHINGTON (Reuters) – The U.S. Defense Department would protect spending on operations and readiness if Congress fails to pass a budget for fiscal 2016, which means the impact would fall heavily on procurement programs, the Pentagon’s chief arms buyer said Tuesday. Defense Undersecretary Frank Kendall said a long-term continuing resolution would maintain spending at last year’s levels, and could cause the department to break multiyear agreements with companies, which would result in expensive penalties. (Reporting by Andrea Shalal; Editing by Chizu Nomiyama)

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