Reserve Cuts Planned

Still looking for cost-cutting measures, the White House is reducing non-essentials out of the Defense Budget:

Under the plan, the authorized troop strength of the Army Reserve would drop from 205,000 — the current number of slots it is allowed — to 188,000, the actual number of soldiers it had at the end of 2005. Because of recruiting and other problems, the Army Reserve has been unable to fill its ranks to its authorized level.
Army leaders have said they are taking a similar approach to shrinking the National Guard. They are proposing to cut that force from its authorized level of 350,000 soldiers to 333,000, the actual number now on the rolls.

And may even cut the JSF. This is understandable since it want enter service until the next decade, having been under development since the early 90's:

One plan would eliminate funding for an alternative engine for the Joint Strike Fighter, the military's next-generation combat plane.
The second would cut money for F-22 fighters during 2007. But it is actually a contract restructuring that would add that money back — and more — over the long run by stretching out the program for an additional two years and buying up to four more planes. The new plan calls for buying 60 aircraft through 2010, rather than 56 in the next two years.