The FY 2004 Request
Fiscal Year 2004 Military Budget at a Glance
February 3, 2003
$399.1 billion - Military budget request for FY 2004 (Budget Authority)
$70.1 billion increase from FY 2001
$16.9 billion increase from FY 2003
Note: These figures do not include the cost of a supplemental appropriations request expected to be presented to Congress for fiscal year 2003 to cover the war on terrorism and the cost of the likely war against Iraq. The Pentagon estimates that it needs more than $13 billion *without* including the costs of the war.
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FY 2004 National Defense budget authority (Function 050)
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$379.9 billion - Pentagon
$ 16.9 billion - Department of Energy nuclear weapons activities
$ 2.4 billion - other (Coast Guard)
$399.1 billion - TOTAL
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HIGHLIGHTS OF THE NEW MILITARY BUDGET REQUEST
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1. The military budget -- particularly with the added costs of the war on terrorism and the Iraq war not reflected above -- continues to skyrocket. Even without these costs, the proposed budget is about 13 percent higher than the Cold War average in real terms. (1)
2. The high military budget will be examined in the context of "a perfect storm" of new costs ahead:
$2.7 trillion for the military (over 6 years)
$674 billion for the new tax cut (over 10 years) (2)
$785 billion to make the tax cuts of 2001 permanent (over 10 years) (2)
$400 billion for overhauling of Medicare, including a prescription drug benefit (over 10 years) (2)
$391 billion for the cost of the war in Iraq and the aftermath (2 years estimated by Yale economist William Nordhaus) (3)
Up to $1.2 trillion for missile defense (by 2035) (4)
3. The largest single program in the budget is $9.1 billion for missile defense, an increase of $1.5 billion over last year. The request includes funds for purchase of the first 10 land-based interceptors to be deployed in fiscal year 2004 in Alaska and California. By fiscal year 2005, the plan is to add 10 more land-based missiles.
4. The budget contains a request for $14 million for a "space test bed" to deploy weapons in space for the first time. The initial launch of the system is scheduled in fiscal year 2009.
5. The Pentagon identifies $24.3 billion to fund "transformation goals" -- about one third of that amount is budgeted for missile defense, a 50-year old program.
6. While candidate George W. Bush promised at his Citadel speech on September 23, 1999 that his Administration will "skip a generation of technology" and considered canceling Cold War weapons, all those weapons survive except the Crusader howitzer: survivors include such big-ticket items as the F-22, the F-18 E/F, the V-22 and more. The request for the three new tactical aircraft programs that are more appropriate for the Cold War -- F-22, F/A-18E/F and Joint Strike Fighter -- is $12.7 billion.
7. To pay for these new weapons, the Pentagon is retiring early 259 Navy aircraft, 114 Air Force fighters, 115 other aircraft and 26 ships
8. In fiscal 2009, the National Defense budget is slated to increase to $502.7 billion.
Sources:
(1) Center for Strategic and Budgetary Assessments, January 31, 2002
(2) New York Times, January 30, 2003
(3) Washington Post, January 8, 2003
(4) Study by Economists Allied for Arms Reduction and Center for Arms Control and Non-Proliferation, January 2003
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STRATEGIC NUCLEAR PROGRAM REQUESTS IN FY 2004 BUDGET
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=B-2 bomber: $260.2 billion
=Trident II (D-5 missile): $780.0 million (12 missiles)
=Space based infrared system (SBIRS) - High: $712.6 million
=Ballistic Missile Defense: $9.1 billion, an increase of $1.5 billion over last year
=Major elements of missile defense program:
$3,613.3 million - Mid-course defense segment
$ 626.3 million - Boost phase segment
$ 240.8 million - BMD technologies
$ 408.2 million - BMD sensors
$ 301.1 million - BMD system interceptors
$ 611.5 million - BMD tests and targets
$ 343.6 million - BMD products
$ 484.0 million - BMD system core
$ 148.4 million - International cooperative programs
$ 730.6 million - THAAD (Theater High Altitude Area Defense)
$1,269.5 million - Patriot PAC3 theater defense and MEADS (moved to Army account)
Source: Program Acquisition Cost By Weapons System, Department of Defense Budget for Fiscal Year 2004
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Highlights of missile defense request:
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=The Administration announced in December 2002 plans to deploy 10 land-based interceptors at Fort Greely, Alaska, and Vandenberg Air Force Base, California, to defend against long-range missiles.
=North Korea is officially named as the target for this deployment.
=By fiscal 2005, the Administration plans to field another 10 land-based interceptors, plus up to 20 theater missile defense interceptors on 3 Aegis ships. This expanded deployment is to defend against threats from the Middle East.
=The planned system has not completed its developmental tests nor started operational tests.
=The fiscal year 2004 budget includes $14 million to place weapons in space, a program labeled a space test bed.
=The budget includes funds for the first flight of a complete Anti-Ballistic (ABL) laser system.
=All Missile Defense Agency funds, including the purchase of interceptors missiles, will be labeled research and development, and includes no procurement funds.
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MAJOR CONVENTIONAL WEAPONS REQUESTS (in millions of dollars)
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FY 2003 FY 2004 WEAPONS PROGRAMS (state of prime contractors in parentheses)
5,374.4 5,170.2 F-22 Air Force Raptor (22 planes made in GA, TX, WA and FL)
3,418.6 3,210.2 F/A-18 E/F Navy Super Hornet - (42 planes made in MA, MO, MD & CA)
3,406.7 4,365.8 JSF Navy-Air Force-Marine Joint Strike Fighter (TX, CT)
1,640.0 1,654.0 V-22 Osprey - (11 aircraft made in TX, PA and IN)
4,430.2 3,686.3 C-17 Air Force airlift aircraft - (11 planes made in CA and CT)
770.0 734.5 C-130J cargo aircraft (5 planes made in GA and IN)
874.0 1,079.3 RAH-66 Army Comanche light helicopter (made in CT, PA, AZ, IN)
924.3 776.7 AH-64 Longbow Apache helicopter (74 helicopters made
in MD)
1,199.1 1,390.3 UAV Unmanned Aerial Vehicle (28 aircraft)
2,624.9 3,404.0 DDG-51 Navy Aegis destroyer - (3 destroyers made in ME and MS)
2,341.5 2,640.5 Virginia class submarine (1 sub made in CT and VA)
855.3 1,525.8 CVN-77 Nimitz Class carrier (1 carrier in VA)
594.3 1,200.0 LPD-17 Navy transport dock ship (1 ship made in LA, ME, CA & AL)
Source: Program Acquisition Cost By Weapons System, Department of Defense Budget for Fiscal Year 2004
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MOST EXPENSIVE WEAPONS SYSTEMS
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(TOTAL PROGRAM COSTS)
Up to $1.2 trillion Layered missile defense
$ 226.5 billion JSF Joint Strike Fighter 2,866 planes
$ 73.4 billion Virginia class submarine 30 subs
$ 69.7 billion F-22 Air Force Raptor 295 planes
$ 66.0 billion DDG-51 Navy AEGIS destroyer 64 ships
$ 59.0 billion C-17 Air Force airlift aircraft180 planes
$ 48.8 billion F/A-18 E/F Navy Super Hornet 548 planes
$ 47.9 billion RAH-66 Army Comanche helicopter1,213 helicopters
$ 46.2 billion V-22 Navy Osprey 458 aircraft
$ 37.5 billion D-5 Navy Trident II missile568 missiles
$ 15.4 billion LPD-17 Navy transport dock ship 12 ships
Source: Selected Acquisition Report, September 30, 2002; Missile defense cost from Center for Arms Control and Non-Proliferation and ECAAR report
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FISCAL YEAR 2004 BUDGET BY TITLE
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$ 98.6 billion - military personnel
$117.0 billion - operations and maintenance
$ 72.7 billion - procurement
$ 61.8 billion - research, development, testing and evaluation
$ 5.0 billion - military construction
$ 4.0 billion - family housing
$ 17.9 billion - other Pentagon programs
$ 2.8 billion - other
$379.9 billion - TOTAL DEPARTMENT OF DEFENSE ONLY
$ 19.3 billion - Department of Energy and other
$399.1 billion - TOTAL NATIONAL DEFENSE
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FUTURE YEAR MILITARY BUDGET AUTHORITY
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(Function 050)
FY 2003 $382.2 billion
FY 2004 $399.1 billion
FY 2005 $419.6 billion
FY 2006 $439.7 billion
FY 2007 $460.0 billion
FY 2008 $480.4 billion
FY 2009 $502.7 billion