Pentagon Reform Hinges on Transparency, funding to Unlock Agility
WASHINGTON D.C. – A prosperous overhaul of the Defense DepartmentS acquisition processes,championed by Secretary of Defense Lloyd Austin and outlined in recent reforms,demands a fundamental shift towards transparency and robust reporting mechanisms alongside increased versatility,according to a new analysis by the American Enterprise Institute (AEI). The reforms aim to accelerate the delivery of critical capabilities to the warfighter, but their success is inextricably linked to securing consistent funding and demonstrating accountability to Congress.
The AEI report, authored by Elaine McCusker, former acting undersecretary of defense (comptroller), and John G. Ferrari, former director of program analysis and evaluation for the Army, argues that past attempts at Pentagon modernization have faltered due to a perceived trade-off between agility and accountability. The current push, though, seeks to prove these are not mutually exclusive.
Central to the proposed transformation is establishing clear “transparency and reporting mechanisms that accompany flexibility,” fostering a collaborative “partnership” between the Pentagon and appropriators, rather than continued friction. This would involve detailed tracking of funds, rapid prototyping results, and fielding timelines, allowing Congress to maintain oversight while enabling faster decision-making.
The authors emphasize the urgency of this reform, citing china’s rapid industrial output and the battlefield innovations observed in ukraine as evidence of a changing security landscape. ”China‘s state-directed industrial system delivers capability in months, not years,” the report states. “Ukraine’s battlefield improvisations prove that innovation now happens at the tactical edge, not in the pentagon’s five-year plans.”
The report warns that without dedicated funding, even the most streamlined acquisition processes will be ineffective. The current federal budget impasse underscores this risk. The authors call for the administration to demonstrate a commitment to acquisition reform when the FY 2027 budget is presented to Capitol Hill.
If successful, this modernization effort coudl be the most significant since Robert McNamara introduced the Planning, programming, and Budgeting System (PPBS) in the 1960s, fundamentally altering how the U.S. military prepares for and responds to conflict. The key, the report concludes, is to view reform not as a confrontation with Congress, but as a joint effort “against inertia” to build a ”stronger, faster, and ready” military.
