The debt deal cuts $350 billion from military spending over the next 10 years, and if Congress can't reach an agreement about where else to cut spending, the military will automatically face up to another $600 billion in cuts.
One of the first things that could be put on the line is TRICARE, the military's health insurance program, says Larry Korb, a senior fellow at the Center for American Progress, a progressive public policy research organization in Washington. The premiums are low – about $430 a year for a family – and there are no co-pays, so many working military retirees stay on the plan instead of opting for something more expensive, says Mr. Korb. He expects that premiums will rise, and that working veterans will be more likely to use health insurance through their current employer.
The military will probably shrink in size, too, says Korb. It will be done gradually, so not too many enlisted people should feel the effects. Also, the military is likely to reduce the amount of business it does with contractors, so jobs at those companies may be more vulnerable, he adds.
