Pentagon Fails to Consider Large, Grim Option for Budget Cuts

This more sensitive section of the budget could account for billions in savings.

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Defense Secretary Chuck Hagel says the Pentagon may have to order sharp reductions in the size of the Army and Marine Corps, but did not discuss reducing the size of the agency's non-military workforce.

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"It was enormously useful for an incoming secretary of Defense," he said. "There is a lot of potential here."

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