Defensive Maneuvers

Rumsfeld needed to free up cash for his quest to remake the military. The brass outflanked him

THE BUDGET Bush will boost spending 10% next year, but it's not enough to pay for competing priorities.

THE SAVINGS $16.4 Billion Rumsfeld hoped he could gain extra money by trimming 5% of current costs, shrinking a military still geared for cold war battles.

HOW TO SPEND THE SAVINGS

ON TROOPS The bulk of Bush's defense increases so far has gone to pay for his campaign promise to improve conditions for personnel and keep them from fleeing to the private sector. He's raising salaries 5% and increasing funding for housing, medical benefits and support facilities like gyms and day-care centers.

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