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FY 2017 Defense Budget Summary

Core Content

The FY 2017 Defense Budget Request, submitted by the Office of the Under Secretary of Defense (Comptroller), outlines the Department of Defense's (DoD) strategic priorities and financial plans for the upcoming fiscal year. It reflects the Department's efforts to align with the 2014 Quadrennial Defense Review (QDR) and to address evolving security challenges while maintaining fiscal responsibility. The budget is designed to support the United States' global leadership role, counter terrorism, and modernize military capabilities in a complex and uncertain strategic environment.

Key Themes

• Seek a Balanced Force: Ensuring the Joint Force is capable of protecting the homeland, maintaining global presence, and projecting power across the spectrum of conflict.
• Manage Enduring Readiness Challenges: Focusing on sustaining readiness through maintenance, training, and exercises.
• Accelerate the Pace of Defense Reform: Reducing overhead costs, restructuring programs, and improving efficiency in acquisition and management.
• Pursue Investments in Military Capabilities: Enhancing technological superiority in areas such as space, cyber, and advanced weaponry.
• Take Care of Our People: Supporting military compensation, health care, and family benefits while implementing reforms in retirement and child care.
• Support Overseas Contingency Operations (OCO): Funding operations in Afghanistan, Iraq, Syria, and Eastern Europe to counter terrorism and deter aggression.

Budget Overview

• Total Requested Funding: $582.7 billion
• Base Budget: $523.9 billion (an increase of $2.2 billion from FY 2016)
• OCO Budget: $58.8 billion (an increase of $0.2 billion from FY 2016)
• Total Increase from FY 2016: $2.4 billion (approximately 0.4%)

The budget includes a 2017–2021 outyear projection, showing a total of $2,801.1 billion for the base budget, with a slight real growth rate of 0.4% over the five-year period.

Main Points

1. FY 2017 Budget Summary

• The budget aligns with the 2014 QDR and the Bipartisan Budget Act of 2015.
• It supports military operations in Afghanistan and other regions to counter terrorism and other threats.
• The budget maintains a ready force and continues to invest in modernization and technological superiority.
• The Department emphasizes the need to eliminate the specter of sequestration and to ensure that the budget is not constrained by previous cuts.

2. Seek a Balanced Force

• The Department is focused on balancing modernization, force structure, and readiness to meet current and future security challenges.
• It maintains a global posture to deter aggression and protect U.S. interests.
• The budget supports the development of a more capable, agile, and ready force.

3. Manage Enduring Readiness Challenges

• Readiness investments include maintenance, training, and exercises.
• The budget supports the full-spectrum readiness of the four military departments.
• It aims to create a smaller but more ready force, capable of meeting any mission at any time.

4. Accelerate the Pace of Defense Reform

• The budget includes reforms to reduce overhead, improve efficiency, and redirect resources.
• It prioritizes key missions and emphasizes technological superiority in acquisitions.
• The Department seeks congressional authority to conduct another round of Base Realignment and Closure (BRC) starting in FY 2019.

5. Pursue Investments in Military Capabilities

• The budget emphasizes modernization and technological development to maintain U.S. military superiority.
• Investments include space and cyber capabilities, as well as advanced weaponry and research and development (R&D).
• The Defense Innovation Initiative (DII) is highlighted as a cross-departmental effort to enhance military capabilities for the 21st century.

6. Take Care of Our People

• Personnel costs make up nearly half of the DoD budget.
• The budget supports military pay, benefits, and family programs while maintaining a balance with readiness and capacity.
• It includes reforms in military retirement, child care, and maternity/paternity leave to better support service members and the future force.

7. Support Overseas Contingency Operations

• The OCO budget of $58.8 billion supports operations in Afghanistan, Iraq, Syria, and Eastern Europe.
• It includes funding for the Iraq Train and Equip Fund, Syria Train and Equip Fund, and the Counterterrorism Partnerships Fund.
• The budget also supports the European Reassurance Initiative to deter aggression in the region.

8. FY 2017–2021 Topline

• The budget includes a 5-year projection showing a slight decrease in base budget growth compared to the previous year.
• It outlines the Department's plans to stabilize force structure and maintain readiness across the military services.

Key Information

• Budgetary Context: The budget follows several years of declining defense spending and aims to address the ongoing fiscal and strategic uncertainty.
• Security Environment: The U.S. faces evolving threats from Russia, China, Iran, and North Korea, as well as from global terrorism.
• Reforms and Priorities: The budget emphasizes cost control, efficiency in acquisition, and the need for a balanced, modern, and ready force.
• Congressional Role: The Department requests congressional support for continued reforms and for the elimination of sequestration.
• Financial Management: The budget includes efforts to improve financial oversight, audit readiness, and workforce management.

Appendices and Resources

• Appendix A: Contains detailed resource exhibits including force structure, budget allocations by appropriation and military department.
• Appendix B: Provides an acronym list for understanding the budget terminology.
• Performance Improvement Tables: Available at http://dcmo.defense.gov for further analysis.

Conclusion

The FY 2017 Defense Budget is a comprehensive plan that aims to balance the U.S. military's current and future needs in a dynamic security environment. It supports the updated defense strategy, invests in technological superiority, and ensures the well-being of service members and their families. The budget is designed to maintain readiness, reduce costs, and prepare the Department for both immediate and long-term challenges.