Summer Budget Wars Begin With Defense Spending

After passing a bill that earmarked $612 billion for defense spending in 2016, Democrats in the US senate

that would have provided those funds. The decision marks the first of what many believe will be a series of budget battles this summer as policymakers in Washington work out next year's budget. Spending caps established in 2011 are under scrutiny this year as both sides of the isle fight to fund their own programs.

The defense spending bill would have funded the US military using a supplemental war fund called Overseas Contingency Operations, something Democrats say shouldn't be allowed. Because the OCO is not bound by the 2011 spending caps, using it would allow the government to increase spending on the military without modifying the spending restrictions.

Democrats say their decision to block the bill was an effort to get Republicans to the negotiating table. If the Republicans want to spend more on the military, Democrats say they need to make allowances for higher spending on other public programs like education and homeland security.

Obama's presidency has seen military spending fall, creating a challenge for big name contractors. However, with a pullback in the US' global military presence, many are expecting companies like

and

to see rising demand from overseas. Raytheon's missile systems have been in demand in Europe, where Russia's military advancement has been a cause for concern. Lockheed Martin's F-16 jets have become a mainstay for air forces around the world and the company is

a combat ready F-35 plane later this summer.