In response to ongoing job losses at the Corpus Christi Army Depot (CCAD), the United Corpus Christi Chamber of Commerce & South Texas Military Task Force are calling for urgent attention to the economic and national security risks associated with underfunding America’s military depots.

Civilian employment at CCAD, the world’s largest rotary-wing aircraft repair facility, has declined by more than half over the last decade. The United Chamber supports efforts to modernize how federal investment in depots is determined, including recent bipartisan legislation introduced by Congressman Michael Cloud (TX-27) and cosponsored by Congressmembers Chris Deluzio (D-PA) and Blake Moore (R-UT). The Depot Investment Reform Act seeks to update the formula used to calculate funding levels for military depots, making it more responsive to real-world needs by including prior, current, and projected workload.

“CCAD supports more than 2,000 quality jobs and contributes over $1.6 billion to our regional economy,” said Al Arreola, Jr., President and CEO of the United Corpus Christi Chamber of Commerce. “This adjustment is a much-needed step forward, and we’re hopeful that continued conversations will lead to further progress on the broader policy challenges impacting CCAD.”

Currently, military depots are required to account for depreciation on modern industrial equipment in their labor rates, raising the cost of government work compared to private-sector alternatives. Additionally, when the Army discontinues a program, such as the AH-64D Apache or UH-60L Black Hawk, depots are left to absorb the sunk costs of specialized equipment, training, and infrastructure.

One of the most urgent financial issues is the UH-60V modernization program, which assigned CCAD a fixed-price contract despite fluctuating costs. The depot has reportedly absorbed $3–5 million in losses per aircraft, jeopardizing its financial viability for future Army missions.

“These situations are complex, but the investment adjustment is a very encouraging start,” said Kresten Cook, Executive Director of the South Texas Military Task Force. “We’re optimistic that with continued collaboration, we can identify solutions that support both fiscal responsibility and mission readiness. CCAD plays a vital role in our nation’s defense, and we’re committed to helping it thrive well into the future.”

CCAD has the potential to be a central hub for digital integration, avionics upgrades, and launch effects testing. But without adequate funding, fair policies, and strategic foresight, that potential could be lost.

“This effort is about protecting our nation, our region, and the future of CCAD,” said Mayor Paulette Guajardo. “We applaud Congressman Cloud for taking the lead by introducing the Depot Investment Reform Act, and we will be working with him to gather support.  We must continue advocating for policies that support our local workforce and preserve the strength and readiness of our armed forces.”

Congressman Cloud will join the United Corpus Christi Chamber of Commerce for its Lunch and Legislation Series event on June 2. “We’re excited to welcome him and appreciate his resilient efforts and steadfast partnership as we continue strengthening our relationship with the military,” Arreola added. For more information and to register click here.