Defense News reports that "the White House and Pentagon, after weeks of back-and-forth debate, appear ready to expand the Defense Department’s budget starting in 2016."
"Administration officials are contemplating a $535 billion DoD budget in 2016, one source said, which is about $36 billion over the sequester cap. The administration would offset the defense increase in other areas of the federal budget, sources said."
"Senior White House officials are resisting some of the largest reductions proposed by the Pentagon, including the Navy’s plan to cut an aircraft carrier and slow manpower cuts, according to several sources close to the internal negotiations. It is not clear, however — especially inside the Pentagon — where the money would come from to pay for the items that would have been cut in 2015."