DoD Mandates Interagency 'War Games' to Assess Economic Fallout of Crises, Including Private Sector Input

Here’s a look at a piece of legislation that might not sound exciting, but it’s actually a big deal for how the government plans for national security crises. This bill mandates that the Department of Defense (DoD) run special, unclassified ‘tabletop exercises’—think of them as high-stakes policy war games—that focus specifically on the economic consequences of military decisions during a crisis or conflict. The goal is two-fold: to figure out the economic ripple effects of what the DoD decides to do, and to evaluate the economic tools the U.S. government has available to support those military actions. They have until December 31, 2025, to brief Congress on how they’re rolling this out.

Why the Pentagon Needs an Economist in the Room

For most of modern history, defense planning and economic planning operated in separate silos. This bill aims to smash those silos by requiring the DoD to invite heavy hitters from the economic side of the house to these exercises. We’re talking about representatives from the Department of the Treasury, the Department of Commerce, the Office of the United States Trade Representative, and even the National Economic Council. Why? Because every major defense decision—from a blockade to a massive troop deployment—has immediate, real-world economic consequences that affect global supply chains, trade, and ultimately, your wallet.

Think about it: If a crisis requires the military to restrict shipping lanes, that immediately impacts the cost of everything from imported electronics to construction materials. If the Treasury Department is at the table during the planning, they can model those impacts and suggest economic countermeasures—like sanctions, trade adjustments, or financial aid—that can support the defense objective while minimizing the damage to everyday businesses and consumers. This is about making sure the left hand (DoD) knows exactly what the right hand (Treasury) is capable of doing, or what the consequences might be.

The Private Sector Gets a Seat, But How Big Is It?

Crucially, the bill also allows for the inclusion of “private sector representatives when appropriate.” This is where the rubber meets the road for anyone working in manufacturing, logistics, or finance. During a crisis, the government relies heavily on private companies—from tech giants to trucking firms—to execute national security strategy. Including them in these exercises means the government can get a realistic read on potential vulnerabilities and resource limitations before a crisis hits. For example, a logistics company representative could explain exactly how long it takes to reroute a major cargo vessel if a key port is closed.

However, the term “when appropriate” is a little vague. It gives the DoD significant discretion over which private sector voices are heard. The effectiveness of these exercises will depend heavily on whether they invite a diverse group of industry leaders—not just the usual suspects—to ensure a full, unfiltered view of potential economic disruption. If these exercises are successful, the biggest benefit for busy people is better-informed government decision-making, which means less economic whiplash and more stability during times of national stress. It’s a procedural bill, but the procedure is designed to protect the economy from the unintended consequences of necessary defense actions.