Recently Thomas Nides, Deputy Secretary of State, appeared at a Center for American Progress event at which he alluded to the potential of having to compete with the Pentagon for funding since both functions 050 and 150 will now be living under the new “security” spending cap for FY2012.
We at State and USAID are not trying to rob the Pentagon to pay ourselves. As everyone knows, we're facing the process of major budget cuts. These cuts could be the most significant we have had in two decades, and they could have a devastating impact on the work that we do.
We recently mapped out how such a conflict between State and DoD could and probably will arise. Even though there are risks in competing within the security category, as we also noted before, some of that risk just comes from an era of tightened budgets.