Deputy Secretary of Defense William Lynn says the Pentagon will continue to invest in long-range strike capabilities and cyberwarfare skills but that cuts to defense spending will likely result in a smaller Army and will hit weapons modernization programs. "It's clear we're going to move toward smaller force structures," Lynn said. "It's clear we're going to have to trim modernization programs to some degree, and it's clear we're going to have to take a careful look at military compensation and benefits."

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