I'm in my 3rd year at the Pentagon and I can tell you that even though OSD is pushing for these cuts based on CAPE recommendations, the services are more hesitant. Ultimately they will always fall in line and tell you that "they support the president's budget" once it's been pushed through OSD, but there would likely be a leadership vacuum (long term commitment through HPSP is relatively low) and bad precedent for the service academies (which also produce students at much greater cost than OCS accession or even ROTC). I actually asked CAPT Liotta this question during an open house and he assured me (much like @
Matthew9Thirtyfive has been saying) that this dance is a perennial part of the budget cycle and that the school is not under real threat. These conversations are particularly pressurized because of the recent downturn in post-war military spending and will likely become more pressured during this administration.
Worst case scenario, I can see research cuts at USU under the guise of "consolidation" with the NIH. Ultimately, however, Congress makes the budget, not the DoD. If they say no to cuts, then the case is closed. Also kind of insane that we're trying to pinch pennies on service-member health when we literally waste Hundreds of BILLIONS in the Army's bloated budget (we're not occupying much), low yield army and airforce bases, the F-35 fiasco (not even to mention NGAD), aircraft carriers that are incredibly vulnerable and showing rapidly decreasing utility in GPC conflict scenarios, the LCS without a mission, etc...
The downstream effects of cutting the quality of military medicine will be staggering to recruitment, retention, and our medical readiness. No sane person's analysis could think that this is the first itch to scratch, and to reassure you- at least the Navy's Admiralty feels similarly (N8 voted to kick this conversation down the road last year when it was clear that the spending analytics / cuts research had not been sufficient to make an adequate evidence based recommendation. That said, I'm a little scared of the VCNO's continued interest in the proposed cuts.