This is a money-saving initiative. It's a wiser use of your tax dollars.
People who don't own or shoot guns tend to grossly underestimate how much ammo is actually needed & used by a gun owner. 1.6 Billion sounds like a huge number, but it's not shocking to someone who shoots even on a semi-regular basis. I can go through 200-300 rounds in an hour at the range. I usually shoot about 100-150 because they are getting more and more expensive. Even as someone who shoots once a month, I can go through over 1,000 rounds in a year as a single person. A federal agency needs to arm it's agents, train it's agents, and have backup ammo for their agents for years to come.
Here's a little tidbit: when the United States went to war in Iraq and Afghanistan, there was such a shortage of small and medium caliber ammunition that there were limits placed on marksmanship training. That's embarrassing. To make up for the shortage, the United States had to buy poorly made munitions from foreign armies. These cheap foreign munitions were less accurate and more prone to jamming, during combat and training. Anyone who has to fire a gun on behalf of our country should be highly trained and have the most accurate and consistent ammo at their disposal.
If people want to really rail about fiscal responsibility, they should attack the failed development of the Joint-Strike Fighter Jet ($2 Billion per aircraft), or the Trillions that went into saving bankers from their own toxic products, or the state procurement programs that buy $20,000 routers for tiny, one-room libraries in West Virginia.
Food for thought.