Source: http://www.americanrifleman.org/BlogEntry.aspx?id=2500&cid=25

Yesterday’s inside word on the SCAR program came just as the news broke over the weekend that SOCOM would not be buying any more of the 5.56 mm version (SCAR-L Mk 16) but would instead allocate those funds to the 7.62 mm version (SCAR-H Mk 17). These basically translate into layman’s terms as .223 Rem. and .308 Win. caliber versions.

“The booger-eaters have figured out the range of a five-five-six and are staying out of range. The seven-six-two can reach out that far and still have some lethality left, so that’s why SOCOM is shifting gears and ordering more of the Mark 17s. They definitely have not cancelled SCAR altogether,” a highly placed source told the Insider.

“In fact, SCAR just passed Milestone C in April. That’s the turning point when SOCOM authorized full production and fielding of the SCAR,” my source continued.

It turns out that on April 14, 2010, SOCOM did indeed sign off on Milestone C, which allowed for the Acquisition Decision Memorandum (ADM) to be ratcheted up for the Mk 16, Mk 17 and Mk 13 grenade launcher.

It appears that my report of the program being cancelled was mistaken. What happened was that SOCOM appears to have decided to purchase only .308 caliber Mk 17s and not .223 caliber Mk 16s...

Quoted:
This all seems to come down to Obama limiting military funding...