Congress cuts $5B from US defense budget

WASHINGTON, D.C.: The US House and Senate on Tuesday finalized a plan to squeeze $5 billion from defense spending as part of a broader budget deal that heads off possible pay freezes and furloughs.

The savings comes from lower-than-expected military fuel costs, starting the Pentagon’s new long-range strategic bomber contract later, cuts in staff and contractors, and smaller increases to Army and Air National Guard operations and maintenance spending.