It isn't really a surprise that the Defense budget is going to get smaller. I say Defense because DOE will probably see a cut in its nuclear weapons budget.

Gates was a supporter of building new warheads, but I doubt that that will happen now.

The downside is that saving money without spending some isn't really possible.

If it were a goal, using a relatively small amount of money to replace some key equipment could reduce personnel, operating and maintenance costs. In 1996 the DSB released a report in which they indicated that aging equipment was increasing costs. The lasting quote was that "the tail is eating the tooth." We may be entering a period that has similar consequences.

Just cutting the amount of money coming in and not adding any new equipment is a good way to ensure that you reduce possible savings while simultaneously decreasing readiness.