The links provided by yourself do not state that the budget has / is being reduced, its only a recomendation at this time to reduce the budget by 1
billion $'s the first year and 800m per year after. Whether this will come to fruition we'll see.
Here's a little tidbit from
H.R.4613 (Sec. 8096) Earmarks specified RDT&E funds for producing Arrow missile components in the United States and Arrow missile components and
missiles in Israel to meet Israel's defense requirements.
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