The administration is also asking for an additional $US33 billion in FY10 supplemental funds for operations in Afghanistan and Iraq.
The speech from US Defense Secretary Gates about the FY2011 budget highlighted a number of funding changes.
Here are some of the salient points.
"The FY11 budget takes a number of additional steps aimed at filling persistent shortfalls that have plagued recent military efforts, especially in Afghanistan.
"They include:
· Enhancing intelligence, surveillance, and reconnaissance capacity - including a 75 per cent increase over the next couple of years in the number of combat air patrols by the most advanced UAVs;
· Increasing the availability of helicopters by procuring more aircraft - around $US9 billion worth - of all kinds and adding two Army combat aviation brigades; and
· Growing special operations systems and personnel, with nearly 2,800 people added to the US Special Operations Command in FY2011.
"To meet the potential threats to our military's ability to project power, deter aggression, and come to the aid of allies and partners, the QDR places more focus on and investment in a new air-sea battle concept, long-range strike capabilities, space, and cyberspace.
"The FY11 budget requests include:
· Nearly $US11 billion for the F-35 Joint Strike Fighter, along with a strategy to stabilise its cost and schedule, and a buy of 43 aircraft - and possibly more depending on contractor performance;
· More than $US25 billion to support a realistic, sustainable ship-building program;
· More than $US3 billion to modernise ground forces by applying mature technologies to current forces quickly, including development of a new ground combat vehicle;
· Nearly $US10 billion to support the development of flexible, scalable, and adaptive missile defenses that work, are cost-effective, and address the real and growing threats to the US and our allies; and
· Some $US4 billion over the next five fiscal years for a number of long-range strike programs, to include the development of a conventional global strike capability, and the upgrade and modernisation of the bomber fleet."
The downside
And then there were the cuts in order to fund the above-mentioned programs.
"To achieve these objectives, the department must continue to reform the way it does business - from developing and buying major weapons programs, to managing our workforce.
"Building on the reforms in the FY10 budget - when a number of excess or poorly performing programs were cancelled - the QDR proposed additional steps reflected in the FY11 budget submission.
"They include:
· Terminating the Navy EP(X) intelligence aircraft [under development by Boeing];
· Ending the Third Generation Infrared Surveillance program;
· Cancelling the next-generation CG(X) cruiser;
· Terminating the Net Enabled Command and Control program;
· Ending the Defense Integrated Military Human Resources System (DIMHRS) due to cost overruns and performance concerns;
· Completing the C-17 program and closing the production line, as multiple studies in recent years show that the Air Force already has more of these aircraft than it needs; and
· Ending the alternate engine from GE/Rolls Royce for the F-35 Joint Strike Fighter, as whatever benefits might accrue are more than offset by excess costs, complexity, and associated risks.
"I am fully aware of the political pressure to continue building the C-17 and to proceed with an alternate engine for the F-35.
"So let me be clear: I will strongly recommend that the president veto any legislation that sustains the unnecessary continuation of these two programs."
Accountability in action
Accountability has been the buzz word of Defence departments around the globe but rarely has the rhetoric matched the action.
"Nonetheless, the progress and performance of the F-35 over the past two years has not been what it should - as a number of key goals and benchmarks were not met," Secretary Gates said.
"As a result, I will withhold $US614 million in performance fees from the lead contractor, Lockheed Martin, since the taxpayer should not have to bear the entire burden of getting the JSF program back on track.
"This step is being taken with the agreement of the contractor and I appreciate their responsiveness and commitment to finding the best solution.
"Accountability is not just about holding contractors responsible.
"The Department of Defense also bears responsibility for the JSF's troubling performance record.
"Accordingly, I have directed a change in the leadership of the Joint Strike Fighter program office.
"In addition, given the importance of this program to the future of military aviation, I am elevating the level of the JSF program manager to that of a three-star officer."
"There has been speculation in the US that the Pentagon will name Vice Admiral David Venlet, commander of the Naval Air Systems Command, to run its F-35 fighter plane program."