With the FY’25 DOD budget slated to rise only 1%, in effect a real overall spending reduction, pro-defense Congressmen and Senators are looking for work arounds to ensure that critical national security programs continue to be funded.  One approach being considered is the restoration of Overseas Contingency Operation (OCO) funding.  The OCO path was originally set up as an off-budget spending mechanism to meet needs associated with military actions in Afghanistan.  Since OCO money was deemed to be “off budget” it didn’t count against appropriation spending caps.  This provided multiple billions of dollars in additional defense spending.  Senator Lindsay Graham (R-SC) said recently that he believes OCO funding is the best path to move forward now and expand the definition of what qualifies as Pentagon OCO actions so that more critical needs can be met.  “…I would suggest an OCO account to deal with not only modernizing our military but getting ahead of humanitarian disasters in the making,” Graham stated.  His comments reflect growing unease among both Republicans and Democrats over the two-year spending cap deal approved last year as part of the vote to increase the debt ceiling.  Congressional Democrats, for example, have insisted that a rough parity between defense and non-defense spending be maintained.  DOD contractors should ensure that their voices are heard as Congress considers increased DOD spending.  OCO funding could be a good solution, but there may be others that industry would prefer.  House Appropriations Chair Tom Cole (R-OK) has said that it is “too early” to discuss specific approaches, though he is in favor of increased DOD spending generally.  The time to act, though, is now as Congress is quickly considering the full range of FY’25 appropriations bills.