FY 2017 Defense Budget Request Briefing Book

Click to download a PDF version of the briefing book.

The Fiscal Year 2017 Budget in Context

Introduction

The Fiscal Year 2017 Defense Department requests $523.9 billion for the annual “base” budget, which is $2.2 billion more than current levels, and $10.4 billion below last year’s request. This amount does not include certain other security spending, including funding for nuclear weapons-related work in the Department of Energy. Nor does it include an additional request of $58.8 billion for the Pentagon’s portion of the Overseas Contingency Operations (OCO) account – also referred to as “war funding.” As an uncapped account, the OCO fund is often used to push military spending above the maximum levels allowed by law. On its own, OCO would represent the fifth largest United States federal agency by budget.

In the weeks prior to the Administration’s release of the request, Defense Secretary Ashton Carter previewed some of the highlights of the Pentagon’s FY 2017 budget proposal in a series of speeches. According to Secretary Carter, five evolving challenges helped shape this year’s request. The first two – Europe/Russia and Asia-Pacific/China – reflect a renewed emphasis on “great power competition.” The remaining three are North Korea, Iran, and continuing efforts to defeat terrorism, especially the Islamic State (ISIL, ISIS).

Overseas Contingency Operations

The $58.8 billion request for OCO includes:

  • $42 billion for military operations in Afghanistan and training Afghan security forces (Operation Freedom’s Sentinel)
  • $7.5 billion for operations in Iraq and Syria (Operation Inherent Resolve) and anti-terrorism funding and operations against the Islamic State
  • $3.4 billion for the European Reassurance Initiative (ERI)
  • $1.0 billion for Counterterrorism Partnership Funds
  • $5.2 billion for “Budget Act Compliance,” which ensures that the total OCO request meets the amount specified in the 2015 Budget Act.

DoD officials have indicated that Budget Act Compliance funding will be used for any unplanned requirements traditionally funded in OCO accounts or to meet unfunded needs in the Pentagon’s base budget.

In addition to the $59 billion OCO funding requested for the Pentagon, the Administration is also proposing $14.9 billion for OCO in the State Department FY 2017 request. This amount is also specified under the 2015 Budget Act. The total amount requested for the Department of State and Other International Programs (State/OIP) is $52.7 billion.

New Spending Limits

The Budget Act of 2015 (P.L. 114-74) amended the Budget Control Act of 2011 and set new overall limits for discretionary spending – funding which the President requests and Congress must approve each year – for fiscal years 2016 and 2017. Under the Act, “security” spending for FY 2017 is set at $551.1 billion (up from $548.1 billion in FY 2016), plus the additional $58.7 billion for OCO. Discretionary non-security spending is capped at $518.53 billion in FY 2017.

According to the Pentagon Comptroller, Under Secretary of Defense Mike McCord, the Pentagon funding level set out in the 2015 Budget Act is about $22 billion below what the Defense Department had planned to spend in FY 2017. As a result, a number of anticipated funding requests were cut to comply with the new spending limits.

Compared to previous projections, the FY 2017 reduces funding for Apache and Blackhawk helicopters, the F- 35, and the V-22 Osprey. It also reduces total shipbuilding by $1.8 billion and military construction by $1.1 billion.

To achieve long-term savings, the budget proposes a planned reduction of purchased Littoral Combat Ships from 52 to 40 vessels and delays the retirement of the A-10 Warthog attack fighter until 2022, when the F-35 is expected to become fully operational. The Pentagon is also seeking congressional approval to conduct a new round of military base closures (BRAC) in FY 2019.

Nuclear Modernization & Non-Proliferation

The request supports the Administration’s nuclear weapons modernization plans, which aim to rebuild the entire nuclear arsenal simultaneously at a cost of up to $1 trillion over 30 years, an impending challenge that likely requires conventional tradeoffs to fully achieve. It includes funding for a new long-range bomber, a new nuclear-capable cruise missile and warhead, and an updated land-based intercontinental ballistic missile (ICBM). The proposal also includes funding to begin construction of the first vessel in the “Ohio” class ballistic missile submarine replacement program in FY 2021.

The budget proposes a $132 million cut to the Defense Nuclear Non-Proliferation account compared to the amount enacted last year. These cuts include a $90 million reduction of the Global Material Security program, which works to reduce and protect vulnerable nuclear and radiological material located around the globe, and a further $25 million cut for non-proliferation research and development.

The President’s Request

Discretionary Defense Request for Fiscal Year 2017 (in billions of current dollars)
FY 2016 EnactedFY 2017 RequestAllocated to
528.5523.9Department of Defense Base Budget (051)
58.658.8Overseas Contingency Operations (War Funding)
2020.5Defense Related Activities at DOE (053)
8.38.4Other Defense Related Funding (054)
608.6611.6Total Defense Spending Request (050)
Fiscal Year 2017 Overseas Contingency Operations (in billions of current dollars)
National Defense Spending by Selected Years
Time PeriodFY EnactedNational Defense Spending (in billions of 2009 dollars)
World War II1945$994
Korean War Peak Spending1953$532
Vietnam War Peak Spending1968$523
President Reagan Peak Spending1988$532
Current Spending2016$569
Department of Defense Topline Since 2001 (in billions of current dollars)

* Future OCO projections not included

Fiscal Year 2017 Discretionary Defense Request by Function (in billions of current dollars)
FY 2016 EnactedFY 2017 Funding RequestAllocated to:Delta FY16-FY17FY16 %FY17 %
135.3135.3Military Personnel-0.06125.9%25.8%
197.5205.9Operations and Maintenance+8.437.9%39.3%
110.7102.6Procurement+33.821.2%19.6%
68.871.4Research and Development (RDT&E)+2.613.2%13.6%
8.27.4Construction/Family Housing-0.71.6%1.4%
1.21.4Revolving & Management Funds+0.20.2%0.3%
521.7523.9Total*+2.2100%100%

* May not add up due to rounding

Fiscal Year 2017 Discretionary Defense Request by Service (in billions of current dollars)
FY 2016 EnactedFY 2017 Funding RequestAllocated to:Delta FY16-FY17FY16 %FY17 %
123.3123.0Army-0.323.6%23.5%
159.3155.4Navy-4.030.5%29.7%
145.7151.1Air Force+5.427.9%28.8%
93.494.5Defense-Wide+1.117.9%18.0%
521.7523.9Total*+2.2100%100%

* May not add up due to rounding

Proposed Department of Defense Out-Year Topline (in billions of current dollars)
Base $FY 2017FY 2018FY 2019FY 2020FY 2021FY17-21
Proposed in FY 2016547.3556.4564.4570.0581.42,819.5
Proposed in FY 2017523.9556.7564.8570.4585.22,801.1
Delta-23.4+0.3+0.5+0.4+3.8-18.5
FY 17 Real Change-0.8%+5.0%+0.3%-0.1%+1.4%+1.2%

 

Nuclear Weapons and Non-Proliferation

Fiscal Year 2017 Request for Defense Nuclear Non-Proliferation (in billions of current dollars)
FY 2016 EnactedFY 2017 Funding RequestAllocated to;
1.941.81Nuclear Non-Proliferation
8.859.24Weapons Activities
0.360.41Federal Salaries and Expenses
1.381.42Naval Reactors
12.5312.88Total NNSA Request*

* May not add up due to rounding

Fiscal Year 2017 Request for Defense Nuclear Non-Proliferation (in millions of current dollars)
FY 2016FY 2017 Funding RequestAllocated to:
426.8337.1Global Material Security
316.6341.1Material Management and Minimization
340270Non-Proliferation Construction
130.2124.7Non-Proliferation and Arms Control
419.3393.9Non-Proliferation Research and Development
234.4271.9Nuclear Counterterrorism and Incident Response Program
94.683.2Legacy Contractor Pensions
-21.6-14Prior Year Balance
1,940.31,807.9Total Defense Nuclear Non-Proliferation Request*

* May not add up due to rounding

Review of Defense Nuclear Non-Proliferation Funding Over Last Five Years
 FY13 EnactedFY14 EnactedFY15 EnactedFY16 EnactedFY17 RequestedFY17 vs. FY16
Defense Nuclear Non-Proliferation$2.4 billion$1.95 billion$1.62 billion$1.94 billion$1.81 billion-$130 million
Core Non-Proliferation Programs$1.97 billion$1.51 billion$1.27 billion$1.36 billion$1.27 billion-$90 million
Request for Fiscal Year 2017 Selected Nuclear Weapons (in millions of current dollars)
FY 2016 EnactedFY 2017 Funding RequestAllocated To:
736.21,358.3Long Range Strike Bomber*
1,390.71,864.3Ohio Submarine Replacement Program
212.1137.9B61 Tail Kit Assembly
1,1991,220.6Trident II Ballistic Missile Modifications
75.2113.9Ground Based Strategic Deterrent
16.195.6Long-Range Standoff Weapon
195.0220.3W80-4 Nuclear Warhead
643.3616.1B61-12 Nuclear Life Extension Program
244.0222.9W76-1 Nuclear Life Extension Program
220.2281.3W88 Nuclear Life Extension Program

* Long-Range Strike bomber will serve both conventional and nuclear missions

 

Funding for Selected Weapons Systems

AIRCRAFT

F-35 Joint Strike Fighter

$11,602.4 million (68 aircraft) – FY’16 Total

$10,504.5 million (63 aircraft) – FY’17 Request

 

F-22 Raptor Fighter

$555.6 million – FY’l6 Total

$704.4 million – FY’17 Request

 

F/A-18E/F Super Hornet Fighter

$350.0 million (5 aircraft) – FY’l6 Total

$184.9 million (2 aircraft) – FY’17 Request

 

V-22 Osprey Tiltrotor Aircraft

$1,609.0 million (20 aircraft) – FY’16 Total

$1,474.9 million (16 aircraft) – FY’17 Request

 

C-130J Hercules Military Transport Aircraft

$2,462.2 million (29 aircraft) – FY’16 Total

$1,339.1 million (14 aircraft) – FY’17 Request

 

AH-64E Apache Helicopter

$1,419.0 million (64 upgrades) – FY’l6 Total

$1,132.6 million (52 upgrades) – FY’17 Request

 

CH-47 Chinook Helicopter

$1,136.3 million (39 aircraft) – FY’16 Total

$681.8 million (22 aircraft) – FY’17 Request

 

UH-60 Black Hawk Helicopter

$1,768.5 million (107 aircraft) – FY’l6 Total

$976.1 million (36 aircraft) – FY’17 Request

 

P-8A Poseidon Anti-Submarine Warfare (ASW) Aircraft

$3,372.7 million (17 aircraft) – FY’l6 Total

$2,165.2 million (11 aircraft) – FY’17 Request

 

E-2D Advanced Hawkeye Tactical Airborne Early Warning (AEW) Aircraft

$1,249.9 million (5 aircraft) – FY’16 Total

$1,399.6 million (6 aircraft) – FY’17 Request

 

KC-46A Tanker

$2,995.9 million (12 aircraft) – FY’l6 Total

$3,318.5 million (15 aircraft) – FY’17 Request

 

F-15 Eagle Fighter

$1,041.3 million – FY’16 Total

$768.5 million – FY’17 Request

 

Long-Range Strike Bomber (B-3)

$736.2 million – FY’l6 Total

$1,358.3 million – FY’17 Request

 

SHIPBUILDING

 

CVN-78 “Ford” Class Nuclear Aircraft Carrier

$2,771.9 million – FY’l6 Total

$2,786.4 million – FY’17 Request

 

DDG-51 Aegis Destroyer

$4,449.1 million (2 ships) – FY’l6 Total

$3,498.3 million (2 ships) – FY’17 Request

 

Littoral Combat Ship (LCS)

$1,816.3 million (3 ships) – FY’16 Total

$1,598.9 million (2 ships) – FY’17 Request

NOTE: The Pentagon announced as part of the FY’17 request that it was reducing the total number of LCS vessels purchased from 52 to 40.

 

SSN-774 “Virginia” Class Submarine

$5,741.7 million (2 subs) – FY’l6 Total

$5,322.3 million (2 subs) – FY’17 Request

 

“Ohio” Class Submarine Replacement Program

$1,390.7 million – FY’16 Total

$1,864.3 million – FY’17 Request

 

LHA(R) “America” Class Amphibious Assault Ship

$497.7 million – FY’16 Total

$1,648.2 million (1 ship) – FY’17 Request

 

MISSILES/ORDNANCE
 

Advanced Medium Range Air-Air Missile (AMRAAM)

$665.4 million (429 missiles) – FY’16 Total

$661.7 million (419 missiles) – FY’17 Request

 

Trident II Ballistic Missile Modernization

$1,199.0 million – FY’16 Total

$1,220.6 million – FY’17 Request

 

Tactical Tomahawk Cruise Missile

$297.8 million (149 missiles) – FY’16 Total

$298.1 million (100 missiles) – FY’17 Request

 

B61 Tail Kit Assembly (TKA)

$212.1 million – FY’16 Total

$137.9 million – FY’17 Request

 

Joint Direct Attack Munition (JDAM)

$565.3 million (23,796 units) – FY’16 Total

$778.9 million (33,443 units) – FY’17 Request

 

Joint Air-to-Surface Standoff Missile (JASSM)

$436.2 million (340 missiles) – FY’16 Total

$462.0 million (360 missiles) – FY’17 Request

 

Small Diameter Bomb

$224.5 million (1,977 units) – FY’16 Total

$423.2 million 4,507 units) – FY’17 Request

 

Hellfire Missiles

$762.9 million (6,639 missiles) – FY’16 Total

$685.5 million (5,846 missiles) – FY’17 Request

 

Long Range Standoff Weapon

$16.1 million – FY’16 Total

$95.6 million – FY’17 Request

 

Ground-Based Strategic Deterrent (New ICBM)

$75.2 million – FY’16 Total

$113.9 million – FY’17 Request

 

SELECTED BALLISTIC MISSILE DEFENSE
 

Ground-Based Midcourse Defense

$1,613.5 million – FY’16 Total

$1,192.7 million – FY’17 Request

 

AEGIS BM D

$1,621.1 million – FY’16 Total

$1,568.0 million – FY’17 Request

 

THAAD

$686.5 million – FY’16 Total

$639.9 million – FY’17 Request

 

Patriot/PAC-3

$364.4 million – FY’16 Total

$315.7 million – FY’17 Request

 

PAC-3/MSE Missile

$517.2 million – FY’16 Total

$423.2 million – FY’17 Request

 

SPACE BASED SYSTEMS

 

Advanced Extremely High Frequency

$555.5 million – FY’16 Total

$904.7 million – FY’17 Request

 

Evolved Expendable Launch Vehicle (EELV)

$1,478.7 million – FY’16 Total

$1,803.0 million – FY’17 Request

 

Global Positioning System

$870.6 million – FY’16 Total

$847.4 million – FY’17 Request

 

Space Based Infrared System (SBIRS)

$834.2 million – FY’16 Total

$544.5 million – FY’17 Request

 

 

GROUND SYSTEMS

 

 

Abrams Tank

$508.5 million – FY’16 Total

$558.7 million – FY’17 Request

 

Joint Light Tactical Vehicle

$374.5 million – FY’16 Total

$735.4 million – FY’17 Request

 

Amphibious Combat Vehicle

$212.2 million – FY’16 Total

$158.7 million – FY’17 Request

 

UNSTAFFED SYSTEMS

 

MQ-1B/MQ-lC Predator/Grey Eagle

$453.6 million – FY’16 Total

$120.8 million – FY’17 Request

 

 

MQ-9 Reaper Unmanned Aerial Vehicle (UAV)

$1,102.9 million – FY’16 Total

$1,085.9 million – FY’17 Request

 

AGS Unmanned Aerial Vehicle (UAV)

$1,384.0 million – FY’l6 Total

$1,102.2 million – FY’17 Request

 

 

 

 

 

 

FY 2017 Defense Budget Request Briefing Book

We distill the numbers for you