Analysis of the FY 2018 Defense Budget – Procurement

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Although increased capacity and lethality are the second priority of the Pentagon’s PB 2018 budget request behind restoring the readiness of the current force, funding for procurement increases far less than for RDT&E and operation and maintenance accounts (O&M) in real terms.[1] In the PB 2018 request, the Trump administration asked for a total of $125.2 billion in procurement funds, with $115 billion in the base discretionary budget and an additional $10.2 billion in Overseas Contingency Operations (OCO). This is $9.04 billion (or 7.8 percent) more than anticipated for FY 2018 in the PB 2017 request. However, the PB 2018 request is only 0.65 percent larger than Congress appropriated for procurement in FY 2017, an increase of $819 million (see Figure 6-1). Per Secretary Mattis’ memorandum on DoD budget guidance, the National Defense Strategy (NDS), currently being developed, will include a new force sizing construct that will “inform our targets for future force structure growth.” Accordingly, PB 2019, driven by the results of the NDS, will contain “ramps to grow the force quickly but responsibly.”[2] This phased approach to increasing the size of the military means that any substantial growth in procurement funding over prior years’ budgets will occur in the PB 2019 budget request at the earliest, rather than in PB 2018.

Read the entire report: PROCUREMENT (Newly Released)

Analysis of the FY 2018 Defense Budget and Trends in Defense Spending

President Trump’s FY 2018 defense budget promises a “historic” defense buildup. At $603 billion in the base national defense budget, some $54 billion over the Budget Control Act caps, it grows the size of military slightly and boosts RDT&E efforts, but doesn’t move the needle on procurement. Does the FY 2018 budget request build the military the U.S. needs? Will Congress succeed in funding more for defense?

CSBA’s analysis of the FY 2018 defense budget will be released as a series of briefs. CSBA will compile and release these briefs as a final report in fall 2017.

View the interactive web versions of the first, second, third, fourth, fifth and sixth briefs on the following pages:  

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