McCarthy’s speaker deal includes $75B defense cut, Bloomberg reports

The emerging deal Kevin McCarthy is discussing to make him speaker of the House would propose a roughly $75B cut in defense spending, Roxana Tiron, Jennifer Jacobs and Daniel Flatley of Bloomberg report. Part of the agreement being discussed would be to cap spending across government at 2022 levels, three people familiar with the discussions told Bloomberg. National defense spending was about $782B in fiscal 2022 and rose $75B to $857B in fiscal 2023, the reporters note. Publicly traded companies in the defense space include BAE Systems (BAESY), Boeing (BA), General Dynamics (GD), Lockheed Martin (LMT), Northrop Grumman (NOC) and Raytheon Technologies (RTX).