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2020 Defense Budget Summary

Core Content

The FY 2020 Defense Budget is a strategy-driven budget that aligns with the 2018 National Defense Strategy (NDS), which outlines the Department of Defense's (DoD) priorities in response to long-term strategic competition with China and Russia. The budget emphasizes building a more lethal, agile, and innovative Joint Force, strengthening alliances and partnerships, and reforming the DoD to improve performance and affordability.

Main Points

1. National Defense Strategy (NDS) Overview

• The 2018 NDS defines the strategic direction of the DoD, emphasizing deterrence and defeat of great power adversaries.
• The strategy focuses on three key lines of effort:
  • Building a more lethal, resilient, agile, and ready Joint Force
  • Strengthening alliances and attracting new partners
  • Reform for greater performance and affordability
• The NDS is the central framework for the budget and operational planning, ensuring the DoD is prepared for high-end conflicts.

2. Budget Request Overview

• The FY 2020 defense budget request is $718 billion, representing 4.9% nominal growth (2.8% real growth) over the FY 2019 enacted appropriation.
• It includes base budget, Overseas Contingency Operations (OCO), and emergency funding.
• The budget aims to operationalize the NDS and prepare the U.S. military for future high-intensity, multi-domain conflicts.

3. Building a More Lethal Force

The budget focuses on four key areas:

a. Investing in Space and Cyber Domains

• Space ($14.1 billion):
  • Supports the new U.S. Space Force HQ ($72.4 million).
  • Enhances satellite communications and missile warning capabilities.
  • Funds GPS Follow-on satellites and Operational Control System.
  • Continues space launch capacity investment.
• Cyber ($9.6 billion):
  • Enhances cyber defense and offense capabilities.
  • Invests in cybersecurity and multi-cloud environment modernization.

b. Modernizing Air, Maritime, and Land Capabilities

• Air ($57.7 billion):
  • Increases 4th and 5th Generation Aircraft (110 units) and advanced fighter jets.
  • Funds KC-46 tankers, AMRAAM missiles, and Joint Air-Surface Missile – Extended Range (JASM-ER).
• Maritime ($34.7 billion):
  • Focuses on distributed maritime operations.
  • Includes Long Range Anti-Ship Missiles (LRASM), Maritime Strike Tactical Tomahawk (TACTOM), and new shipbuilding programs.
  • The budget includes the largest shipbuilding request in 20 years.
• Land ($14.6 billion):
  • Expands ground combat capabilities and tactical motorized vehicles.
  • Includes Joint Light Tactical Vehicles (JLTVs) and Amphibious Combat Vehicles.
  • Enhances close combat lethality through various systems.

c. Missile Defeat and Defense ($13.6 billion)

• Enhances missile warning, terminal defense, and hypersonic threat response.
• Invests in THAAD systems, Aegis Ballistic Missile Defense (SM-3), and directed energy technologies.
• Supports boost-phase and advanced missile defense systems.

d. Nuclear Modernization ($14.0 billion)

• Focuses on nuclear triad recapitalization and strategic deterrence.
• Includes funding for Columbia-class submarines, B-21 bombers, and Ground Based Strategic Deterrent.
• Enhances Nuclear Command, Control, and Communications (NC3) capabilities.

4. Innovation and Technology

• The FY 2020 budget includes the largest R&D request in 70 years, focused on high-end conflict technologies.
• Key areas of investment:
  • Unmanned/Autonomous systems ($3.7 billion)
  • Artificial Intelligence ($927 million)
  • Hypersonic weapons ($2.6 billion)
  • Directed Energy ($235 million)
• These efforts aim to regain a competitive edge against near-peer adversaries.

5. Sustaining Forces and Readiness

• The budget includes a 3.1% military pay raise, the largest in a decade.
• Funds readiness and depot maintenance across services ($124.8 billion).
• Supports tactical aviation mission capable readiness to 80% ($41.2 billion).
• Invests in advanced training facilities and ranges ($1.5 billion).
• Increases cyber training funding ($2.6 billion).
• Enhances military health system, family support initiatives, and quality of life improvements.

6. Strengthening Alliances and Attracting New Partners

• Indo-Pacific:
  • Enhances interoperability with allies like Australia, Japan, and South Korea.
  • Supports missile defense systems and joint exercises.
  • New agreements with India and Vietnam expand regional partnerships.
• Europe:
  • Maintains strong commitment to NATO.
  • Allies increased defense spending by $41 billion under the Trump administration.
  • By 2020, they are projected to increase spending to $100 billion.
• Iraq and Syria:
  • Supports counter-ISIS operations and reduces the burden on U.S. forces.
• Afghanistan:
  • Focuses on enhancing Afghan National Defense and Security Forces for political reconciliation.
• Foreign Military Sales:
  • Increased by 62% in the last three years.
  • UAE and Qatar invested $18 billion in defensive missile systems.
  • Saudi Arabia and Kuwait upgraded Patriot missile systems.

7. Reform for Greater Performance and Affordability

• The DoD has implemented enterprise-wide reforms to improve efficiency, reliability, and accountability.
• Saved over $4.7 billion in FY 2017 and FY 2018 through reforms in contract management, IT, healthcare, personnel, and acquisitions.
• In FY 2019, the DoD aimed to save $6 billion for higher priority needs.
• The FY 2020 budget includes $7.7 billion in new savings to support a more lethal Joint Force.

Key Information

• The budget cost for the FY 2019 report is $27,000, including $13,000 in expenses and $14,000 in DoD labor.
• The FY 2020 budget is a transition budget to a culture of performance and budget discipline.
• The Defense Budget Overview Book and related materials are available at: http://comptroller.defense.gov
• The 2018 National Defense Strategy Summary can be accessed at: https://dod.defense.gov/Portals/1/Documents/pubs/2018-National-Defense-Strategy-Summary.pdf
• The Performance Improvement tables and charts are available at: http://dcmo.defense.gov/Publications/AnnualPerformancePlanandPerformanceReport.aspx

Conclusion

The FY 2020 defense budget is a comprehensive strategy to prepare for great power competition, focusing on modernization, innovation, readiness, and alliance-building. It represents a shift in focus from the post-Cold War era to a more strategic and multi-domain approach to national security. The budget includes significant investments in space, cyber, and nuclear capabilities, as well as reforms to improve efficiency and affordability. It also supports increased military pay, readiness improvements, and enhanced operational capabilities to meet the challenges of the future.