The Nation - News from Aug. 3, 1986

Two key members of the House Armed Services Committee said they will offer a proposal this week to keep the Defense Department from profiting from inflation. “Our proposal forbids the Defense Department from burying inflation funds in the defense budget,” said Chairman Les Aspin (D-Wis.) and Rep. Nicholas Mavroules (D-Mass.). They said their proposal will be offered as an amendment to the $292-billion Pentagon spending plan for fiscal 1987. The amendment will set up an independent inflation fund in the Treasury and any money used to reimburse a contractor for the impact of inflation would have to be taken from that fund and justified as an inflation cost.