Ok, so this is my theory. As someone who follows politics, I don't want to brag, but I kind of saw this coming a few weeks ago.

So, a little backstory. Under President Bush, the way the government funded DoD was in two "rivers." The first was under the regular budget that included military, social security, roads, education, blah blah blah. But the bulk of defense spending fell under an "emergency supplemental." This was like a second budget that was only for the military that didn't get counted as actual spending. there are many reasons both a Congress and President would approve of this, but we don't have time for that now.

When President Obama came into officer, he decided to get rid of the supplemental practice and instead, just bring that money into the actual budget. So Obama didn't cut or add (significantly) the defense budget, he just used a different accounting method. It looked like he increased the budget, but in reality he just moved debt from one credit card to another.

Now, this brings us to the budget show down and the Republican backed Congress insisting on "sequestration." What seq. meant was that if Congress and the President couldn't decide on a budget, then the budget would automatically be slashed by x%. This cuts wouldn't be planned or though out, just each department would suddenly have to make do with less money. So, DoD responded the only way it could, but slashing the Officer corpse, stopping orders on new equipment, and downsizing. Seq. held for a few a year or tow, but it's days are numbered.

President Obama has stated publicly that he will not sign a budget that has seq. in it for the next year. He has clarified that he especially wants the defense budget back to where it was or even at a slight increase. He wants this under his accounting rules that says all DoD spending falls under the regular budget.

Last winter, the Republicans officially took over the Senate and gained ground in the House and now control all of Congress. Emboldened by their wins, House Republicans and Senate Republican Hawks (pro defense are Hawks) want to bring up the defense budget by even more than President Obama. The catch is, they want it under their old accounting rules of "emergency supplemental" so it doesn't look like that increased the budget.

You can see how perhaps the President and Hawkish members of Congress could eventually work out a deal on increasing the defense budget. The only ones standing n their way are some fiscally conservative Senate Republicans, but they are a minority and could be outvoted, especially if the President can bring a few Democratic Senators on to the deal.

If this USAREC message is real, then it's probably safe to assume a deal has been already worked out behind closed doors and it will start to be rolled out shortly.