February 16, 2018

US FY2019 Defense Budget: Where $716 billion will be Spent?

By: Azhar Azam

National defense and national security

Originally conceived from national defense to protect a nation state militarily – national security today is broader concept which is assumed by the enacting government to shield the country and citizens from an array of military and non-military threats.

Though the scope of national security now embraces several strategic and diplomatic measures destined for economic, institutional, political, energy, ecological, and transnational security as well as protection from terrorism and natural disasters – yet national defense engulfs all.

US is the country with largest national defense budget

United States is the country with the largest national defense budget in the world – spending more than the defense budgets of China, France, India, Japan, Russia, Saudi Arabia, and United Kingdom combined.

Recent Pentagon’s budget request for FY2019 centers US National Security Strategy (NSS), National Defense Strategy (NDS), and Nuclear Posture Review (NPR) in response to growing political, economic, and military influence of China and Russia in addition to deter and counter North Korea and Iran.

The plugged strategies and assessment embark on to build a more lethal, agile, and ready US joint Force to counter adversaries, protect American people, advance American influence, and preserve peace through strength.

US proposed national defense budget for FY2019


Proposed US national defense budget supersedes all previous to a record $716 billion for FY2019 – including $617 billion for DOD Base Budget, $69 billion for Overseas Contingency Operations (OCO), and $30 billion for other defense expenditures.

Pentagon’s delegates exclude $30 billion other defense outflows as it attaches to Energy and other departments which are responsible to superintend American nuclear weapons. Moreover under OMB direction, OCO funding will move to base budget with effect from FY2017 – that will reduce OCO size while staying in the same topline.

Department of Defense (DOD) funding (Base + OCO) would increase from $612bn in FY2018 to $686bn in FY2019 – an increase of $74bn from the running fiscal year. The defense budget would steadily grow and is forecasted at $742bn through FY2023.

Department of Defense (DOD) is however confronting snags over continuing resolutions (CR) despite both chambers of Congress – the House and the Senate – lifted the spending caps through March 23 to end a brief partial government shutdown.

Undersecretary of Defense, CFO and Comptroller, David L. Norquist and Director, Force Structure, Resources, and Assessment, Joint Staff, Lt. Gen. Anthony R. Ierardi defended the increase of $74 billion in a news briefing as the US forces have chafed $406.5 billion in ‘lost readiness, maintenance, and modernization’ over the period of five years and ‘with the bipartisan budget agreement, that hemorrhaging stops.’

Adding more troops to reinforce military end strength 


One the fattest defense budget would add a total of 25,900 troops to the US military end strength in FY2018-19 and 56,600 through FY2023 – bringing active and reserve components to 2,155,800 and 2,186,500 through FY2019 and FY2023 respectively.

Major Acquisition Plans


In pursuit of developing a lethal force, DOD has major weapon acquisition plans of $144.3 billion in FY2019 such as 77 Lockheed Martin’s F-35 Joint Strike Fighter combat aircrafts for $10.8 billion, 15 Boing’s KC-46A Pegasus Tanker aerial refueling aircrafts for $3.0 billion and 24 Boing’s F/A-18E/F Super Hornet multirole fighter jets for $2.0 billion.

Another 10 anti-submarine Boeing’s Poseidon P-8 aircrafts will be purchased for $2.2 billion with 54 ships to be purchased in the next five years – the current size of 289 ships will increase to 326 ships by FY2023.

Missile defense program surges from $8.5 billion in FY2017 to $9.9 billion in FY2018 and FY2019 and with an additional procurement of 20 missiles, the capacity will be raised from 44 to 63 by FY2023.

Two Virginia-class Submarines for $7.4 billion and three DDG-51 Arleigh Burke-class Destroyers for $6.0 billion are also on the DOD shopping list to reinforce the US navy strength. Two each of these naval systems were purchased in FY2018 also.

Besides purchase of fighter and strategic jets, missile defense, submarines, and multi-mission offensive and defensive destroyers – various other aircrafts, combat and cargo helicopters, munitions, nuclear deterrent, space, and ground systems will also be part of DOD procurement plan.

Military pay, benefits, and compensation


Military pay and benefits and compensation funding is the single-largest defense expenditure which nearly makes half of DOD base budget and also includes defense health program (DHP), DOD education activity, family housing and others.

For the FY2019, the proposed military pay rise is 2.6 percent – which beats FY2018 pay rise and will be the largest in nine years. Linked with employment cost index, the pay of an E6 Army staff sergeant will be increased by $1,169.

A sum of $10.5 billion will be spent on facilities investments in FY2019 – 7% more than the prior year’s $9.8 billion. Facilities investments represent operational and training facilities, maintenance and production facilities, and improving lifestyle of service member and their families such as schools, barracks, and medical facilities.

Overseas Contingency Operations (OCO) in Afghanistan, Iraq, and Syria


FY2019 defense budget also outlines $69 billion for Overseas Contingency Operations (OCO) on account of Operation Freedom’s Sentinel (OFS) in Afghanistan ($46.3bn), Operation Inherent (OIR) in Iraq and Syria ($15.3bn), European Deterrence Initiative (EDI) in Europe ($6.5bn), and Security Cooperation (0.9bn).

OFS in Afghanistan and OIR in Iraq and Syria also comprise $5.2 billion for Afghanistan Security Forces Fund (ASFF) including support for Afghan Air Force (AAA) and Afghan Special Security Forces (ASSF) and $1.5 billion to train and equip Iraqi Security Forces (ISS) and vetting Syrian opposition forces.

Operations/Forces Protection ($14.7bn), In-Theater Support ($20.0bn), Equipment Reset and Readiness ($10.9bn), Classified Programs ($10.3bn), and European Deterrence Initiative ($6.5bn) are the other major classifications of OCO funding in FY2019.

Initially the OCO budget reflected $89 billion which was edited over Congressional action to $69 billion – moving some items into the DOD base budget. The reassembly possibly relays in-theater support ($20bn) to support US combat operations and other support activities outside Afghanistan, Iraq, and Syria. The DOD topline nevertheless remains unchanged at $686 billion.