"These funds were provided for lifesaving medical research, not as extra money for the Department of Defense," Rep. Rosa DeLauro said in a statement this week, accusing the Pentagon of a "secretive attempt to siphon" NIH money.
Allegations over NIH funds and what actually occurred
DeLauro publicly raised concerns about an interagency agreement that she said would move NIH dollars to the Defense Department. NIH told NOTUS the proposed agreement centered on a collaboration on medical technologies, and neither NIH nor DeLauro said a deal was ever consummated. Appropriations Committee chairman Tom Cole said in a late-Friday statement that "not one dollar has been transferred from the NIH to the Department of War." DeLauro's office, DoD and the Office of Management and Budget did not respond to requests for additional details in the reporting.
Why the Pentagon says it is strapped for FY26
The Defense Department faces multiple, concurrent cost pressures the reporting ties directly to ongoing operations and higher tempo. The mix includes six months of military operations against Iran, National Guard deployments inside the United States, higher fuel costs, end‑strength overages, and "the lack of full reimbursement from the Department of Homeland Security for DoD border operations," the story reports. The White House in June sent lawmakers a supplemental that included $67.1 billion in defense funds; Defense Secretary Pete Hegseth later said he expects "certain aspects" of the Iran war to cost $37.5 billion through the end of September.
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See what we buildShort-term budget tools: reprogramming, exercise cuts, and furloughs
DoD planners are considering several near-term moves to cover operations and maintenance (O&M) shortfalls. One option is internal reprogramming of O&M accounts — the department "has more legal wiggle room to reshuffle O&M," including canceling exercises and slowing training. Gen. Kevin Schneider, US Pacific Air Forces commander, warned in July that the military was reevaluating upcoming exercises to preserve readiness amid increased commitments. The Pentagon also asked Congress in early July for permission to reroute roughly $4.3 billion from FY26 coffers to pay for "higher priority items," including personnel and operational costs.
Beyond reprogramming, officials discussed the possibility of furloughing civilian workers or reducing their hours, though a former senior defense official said it was unclear "how much you can do this late in the year that would really move the needle." That same official framed the immediacy of the problem: "Their problem right now is the operating costs that they didn't plan for, and that has to be solved by 26 days from now," and added bluntly, "If I were still in the building, I would say, 'I'm probably screwed now.'"
Bigger structural constraints: GTA limits, reconciliation money, and a crippling CR
Former acting comptroller Elaine McCusker warned that the Pentagon is "close to the cap on general transfer authority (GTA)." Without supplemental relief, she said, the department "will have to defer maintenance and potentially stall acceleration of modernization and procurement. Some bills could carry into next year." The reporting notes a separate, politically designated $152 billion reconciliation pot that the Pentagon could theoretically redirect to cover shortfalls — but such maneuvers carry tradeoffs: funds shifted from procurement to O&M would need replacement, or procurement and modernization would be cut.
McCusker also emphasized the damaging effect of the continuing resolution (CR) now in place through Dec. 11: "Always wasteful and disruptive, a CR will be particularly destructive this year as only the 2026 base budget will extend. This means an immediate budget reduction of more than $150 billion or about $400 million per day compared to what was requested and planned for 2027." With Congress effectively out of session until after the November elections, the June supplemental faces long odds of timely passage.
What this means for Congress, the Pentagon, and NIH
- Congress: Appropriators face choices over reprogramming approvals and supplemental action while contending with a CR that already reduces near‑term budgets; the reported $4.3 billion reprogramming request is only a fraction of the $37.5 billion Hegseth cited for Iran-related costs and the $67.1 billion in the supplemental.
- The Pentagon: Planners must balance preserving O&M cash to sustain operations against drawing down procurement and modernization lines, deferring maintenance, canceling exercises, or taking personnel reductions — all options McCusker and a former senior official warned are unattractive and potentially harmful long term.
- NIH and biomedical researchers: Even without a consummated agreement, DeLauro's allegations underscore congressional sensitivity to any perceived diversion of medical research funds and the scrutiny NIH collaborations with other agencies may face.
The Pentagon's immediate choices are blunt and consequential: reprogram, pare back training and purchases, furlough civilians, or attempt accounting maneuvers that shift burdens elsewhere. Lawmakers must decide whether to approve transfers or pass a supplemental, but with Congress on break and the supplemental unlikely before the November work period, the department is left managing a shrinking set of imperfect options — and, as the acting comptroller warned, a continuing resolution that deepens the problem day by day.
