Fed Layoffs If No War Funds, Gates SaysAssociated Press | November 16, 2007
WASHINGTON - Defense Secretary Robert Gates said Thursday that unless Congress passes funding for the Iraq war within days, he will direct the Army and Marine Corps to begin developing plans to lay off employees and terminate contracts early next year.
Gates, who met with members of Congress on Wednesday, said that he does not have the money or the flexibility to move funding around to adequately cover the costs of the continuing operations in Iraq and Afghanistan.
"There is a misperception that this department can continue funding our troops in the field for an indefinite period of time through accounting maneuvers, that we can shuffle money around the department. This is a serious misconception," Gates told reporters at the Pentagon.
As a result, he said that he is faced with the undesirable task of preparing to cease operations at Army bases by mid-February, and lay off about 100,000 Defense Department employees and an equal number of civilian contractors. A month later, he said, similar moves would have to be made by the Marines.
Some members of Congress believe the Pentagon can switch enough money to cover the war accounts, Gates said. But he added that he only has the flexibility to transfer about $3.7 billion - which is just one week's worth of war expenses. Lawmakers, he said, may not understand how complicated and restrictive the situation is.
Senate Majority Leader Harry Reid said Republicans and the president - not Democrats - were to blame.
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