Taxpayer Group to Defense Secretary, Congress: Cut Losses, Cancel Funds for Unwanted Air-Defense Missile Program Now

(Alexandria,VA) – The Pentagon should not wait two years to cut off funding for atroubled missile defense program it has already decided not to put intoproduction, according to the 362,000-member National Taxpayers Union (NTU). Thisweek NTU called on Defense Secretary Robert Gates to immediately terminate the MediumExtended Air Defense System (MEADS) and save taxpayer dollars, instead ofspending $804 million to complete an unwanted development phase.

     In a letterto Secretary Gates, NTU Executive Vice President Pete Sepp wrote, “I urge youto work with our partners in Italy and Germany as well as Members of Congresstoward an immediate, fiscally satisfactory termination of the Medium ExtendedAir Defense System (MEADS) program. Since Comptroller Hale’s announcement lastmonth that the United States would not proceed with deploying MEADS, the casefor ending all funding now, instead of in 2013, has only grown stronger.

     Indefending continued MEADS spending, Pentagon officials have pointed topotential termination penalties of $1 billion. However, experts disagree, someestimating the cost at $500 million or less. Irrespective of the exact figure,the tripartite-cost-sharing arrangement should insulate the U.S. from payingthe full penalties.

     “Based on the legislative climate, the pulse of ourallies, and the urgency of regaining control over federal deficit spending, webelieve that conditions are ripe to reconsider the current funding arrangementand reach a more equitable accord,” Sepp wrote. “As a result, the federalgovernment will also be in a better position to afford critical upgrades toother systems, in air defense and in other areas.”

     TheNational Taxpayers Union has been a leader for fiscal responsibility inmilitary spending. For example, NTU has worked to end funding for theunnecessary F-35 alternate engine, and recently issued a joint report with the U.S.Public Interest Research Group highlighting spending cuts, which included over $288billion in defense-related savings.

     The 362,000-memberNTU is a nonpartisan, nonprofit organization working for lower taxes, smallergovernment, and economic freedom at all levels. Note: The letter to Secretary Gates,along with more information on NTU’s defense-policy work, is available at www.ntu.org.