U.S. Budget Talks Could Threaten F-35 Project

The latest game of congressional chicken over the deficit could lead to whopping cuts at the Defense Department.

Stalled deficit negotiations in the United States could derail the F-35 fighter jet project indefinitely, according to Leon Panetta, the U.S. secretary of defense. If the supercommittee of congressmen and senators can't agree to a $1.2-trillion deficit-reduction package by Nov. 23, then $500 billion of the Defense Department's budget over the next 10 years would be automatically cut. Much of that cut would affect funding for major projects such as shipbuilding and Lockheed Martin's F-35 program, in which the Canadian government has also invested significant time, money, and hope. Panetta urged senators Lindsey Graham and John McCain in a letter to get the deficit package hammered out by next week so that the projects can be saved. You can bet Peter MacKay will be watching those talks closely.