The CenterFor Arms ControlAnd Non-Proliferation

FISCAL YEAR 2017Defense Spending Request Briefing Book

Center for Arms Control and Non-Proliferation322 4th St. NE

Washington, DC 20002FEBRUARY 2016

FEBRUARY 2016

FISCAL YEAR 2017Defense Spend ing Reques t B r ie f i ng Book

Produced by Chr is topher He l lman, Pen tagon Budget Fe l low

With cont r ibut ions by :John I saacs , James McKeon , Greg Te r ryn ,

Amanda Wa ld ron , Jake Me ix le r

Cente r fo r A rms Cont ro l and Non-Pro l i f e ra t ion322 4 th S t ree t NE

Wash ing ton , DC 20002

www.ArmsContro lCenter.org

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Table of Contents

TheFiscalYear2017BudgetinContext 1

ThePresident'sRequest 3

NuclearWeaponsandNon-Proliferation 7

FundingForSelectedWeaponsSystems 10

1

The Fiscal Year 2017 Budget in Context Introduction

TheFiscalYear2017DefenseDepartmentrequests$523.9billionfortheannual“base”budget,whichis$2.2

billionmorethancurrentlevels,and$10.4billionbelowlastyear'srequest.Thisamountdoesnotinclude

certainothersecurityspending,includingfundingfornuclearweapons-relatedworkintheDepartmentof

Energy.Nordoesitincludeanadditionalrequestof$58.8billionforthePentagon’sportionoftheOverseas

ContingencyOperations(OCO)account–alsoreferredtoas"warfunding.”Asanuncappedaccount,theOCO

fundisoftenusedtopushmilitaryspendingabovethemaximumlevelsallowedbylaw.Onitsown,OCOwould

representthefifthlargestUnitedStatesfederalagencybybudget.

IntheweekspriortotheAdministration’sreleaseoftherequest,DefenseSecretaryAshtonCarterpreviewed

someofthehighlightsofthePentagon’sFY2017budgetproposalinaseriesofspeeches.Accordingto

SecretaryCarter,fiveevolvingchallengeshelpedshapethisyear’srequest.Thefirsttwo–Europe/Russiaand

Asia-Pacific/China–reflectarenewedemphasison“greatpowercompetition.”TheremainingthreeareNorth

Korea,Iran,andcontinuingeffortstodefeatterrorism,especiallytheIslamicState(ISIL,ISIS).

OverseasContingencyOperations

The$58.8billionrequestforOCOincludes:

• $42billionformilitaryoperationsinAfghanistanandtrainingAfghansecurityforces(Operation

Freedom'sSentinel)

• $7.5billionforoperationsinIraqandSyria(OperationInherentResolve)andanti-terrorismfunding

andoperationsagainsttheIslamicState

• $3.4billionfortheEuropeanReassuranceInitiative(ERI)

• $1.0billionforCounterterrorismPartnershipFunds

• $5.2billionfor“BudgetActCompliance,”whichensuresthatthetotalOCOrequestmeetstheamount

specifiedinthe2015BudgetAct.

DoDofficialshaveindicatedthatBudgetActCompliancefundingwillbeusedforanyunplannedrequirements

traditionallyfundedinOCOaccountsortomeetunfundedneedsinthePentagon’sbasebudget.

ThewarfundingrequestisconsideredtoolowbyRepublicandefensehawksinCongress,whobelieveOCO

shouldbedrasticallyincreased.IntheHouse,34RepublicanshavealreadyurgedtheHouseBudgetCommittee

toincreasethePentagonbudgetbyatleastanadditional$15-$23billion.

Inadditiontothe$59billionOCOfundingrequestedforthePentagon,theAdministrationisalsoproposing

$14.9billionforOCOintheStateDepartmentFY2017request.Thisamountisalsospecifiedunderthe2015

BudgetAct.ThetotalamountrequestedfortheDepartmentofStateandOtherInternationalPrograms

(State/OIP)is$52.7billion.

2

NewSpendingLimits

TheBudgetActof2015(P.L.114-74)amendedtheBudgetControlActof2011andsetnewoveralllimitsfor

discretionaryspending–fundingwhichthePresidentrequestsandCongressmustapproveeachyear–for

fiscalyears2016and2017.UndertheAct,“security”spendingforFY2017issetat$551.1billion(upfrom

$548.1billioninFY2016),plustheadditional$58.7billionforOCO.Discretionarynon-securityspendingis

cappedat$518.53billioninFY2017.

AccordingtothePentagonComptroller,UnderSecretaryofDefenseMikeMcCord,thePentagonfundinglevel

setoutinthe2015BudgetActisabout$22billionbelowwhattheDefenseDepartmenthadplannedtospendin

FY2017.Asaresult,anumberofanticipatedfundingrequestswerecuttocomplywiththenewspending

limits.

Comparedtopreviousprojections,theFY2017reducesfundingforApacheandBlackhawkhelicopters,theF-

35,andtheV-22Osprey.Italsoreducestotalshipbuildingby$1.8billionandmilitaryconstructionby$1.1

billion.

Toachievelong-termsavings,thebudgetproposesaplannedreductionofpurchasedLittoralCombatShips

from52to40vesselsanddelaystheretirementoftheA-10Warthogattackfighteruntil2022,whentheF-35is

expectedtobecomefullyoperational.ThePentagonisalsoseekingcongressionalapprovaltoconductanew

roundofmilitarybaseclosures(BRAC)inFY2019.

NuclearModernization&Non-Proliferation

TherequestsupportstheAdministration’snuclearweaponsmodernizationplans,whichaimtorebuildthe

entirenucleararsenalsimultaneouslyatacostofupto$1trillionover30years,animpendingchallengethat

likelyrequiresconventionaltradeoffstofullyachieve.Itincludesfundingforanewlong-rangebomber,anew

nuclear-capablecruisemissileandwarhead,andanupdatedland-basedintercontinentalballisticmissile

(ICBM).Theproposalalsoincludesfundingtobeginconstructionofthefirstvesselinthe"Ohio"classballistic

missilesubmarinereplacementprograminFY2021.

Thebudgetproposesa$132millioncuttotheDefenseNuclearNon-Proliferationaccountcomparedtothe

amountenactedlastyear.Thesecutsincludea$90millionreductionoftheGlobalMaterialSecurityprogram,

whichworkstoreduceandprotectvulnerablenuclearandradiologicalmateriallocatedaroundtheglobe,anda

further$25millioncutfornon-proliferationresearchanddevelopment.

3

The President’s Request Table1:DiscretionaryDefenseRequestforFiscalYear2017

(inbillionsofcurrentdollars)

FY2016Enacted: FY2017FundingRequest: Allocatedto:

521.7 523.9 DepartmentofDefenseBaseBudget(051)

58.6 58.8 OverseasContingencyOperations(WarFunding)

20 20.5 DefenseRelatedActivitiesatDOE(053)

8.3 8.4 OtherDefenseRelatedFunding(054)

608.6 611.6 TotalDefenseSpendingRequest(050)

Graph1:Fiscal

Year2017

Overseas

Contingency

Operations

(inbillionsof

currentdollars)

OperationFreedom'sSentinel

(Afghanistan),41.7

OperationInherentResolve(Iraq),IslamicState,7.5

EuropeanReassuranceInitiative,3.4

CounterterrorismPartnershipFunds,1.0

BudgetActCompliance,5.2

4

Table2:NationalDefenseSpendingbySelectedYears

Graph2:DepartmentofDefenseToplineSince2001

(inbillionsofcurrentdollars)

*FutureOCOprojectionsnotincluded

0

100

200

300

400

500

600

700

800

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

OCO*

Base

TimePeriod FYEnacted: NationalDefenseSpending:

(inbillionsof2009dollars)

WorldWarII 1945 994

KoreanWarPeakSpending 1953 532

VietnamWarPeakSpending 1968 523

PresidentReaganPeakSpending 1988 532

CurrentSpending 2016 569

5

Table3:FiscalYear2017DiscretionaryDefenseRequestbyFunction

(inbillionsofcurrentdollars)

FY2016Enacted: FY2017Funding

Request:

Allocatedto: DeltaFY16-FY17

FY16% FY17%

135.3 135.3 MilitaryPersonnel -0.061 25.9% 25.8%

197.5 205.9Operations&Maintenance

+8.4 37.9% 39.3%

110.7 102.6 Procurement +33.8 21.2% 19.6%

68.8 71.4 ResearchandDevelopment(RDT&E)

+2.6 13.2% 13.6%

8.2 7.4Construction/FamilyHousing

-0.7 1.6% 1.4%

1.2 1.4Revolving&ManagementFunds

+0.2 0.2% 0.3%

521.7 523.9 Total* +2.2 100% 100%

*Maynotaddupduetorounding

Table4:FiscalYear2017DiscretionaryDefenseRequestbyService

(inbillionsofcurrentdollars)

FY2016Enacted: FY2017

Funding

Request:

Allocatedto: DeltaFY16-FY17

FY16% FY17%

123.3 123.0 Army -0.3 23.6% 23.5%

159.3 155.4 Navy -4.0 30.5% 29.7%

145.7 151.1 AirForce +5.4 27.9% 28.8%

93.4 94.5 Defense-Wide +1.1 17.9% 18.0%

521.7 523.9 Total* +2.2 100% 100%

*Maynotaddupduetorounding

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Table5:ProposedDepartmentofDefenseOut-YearTopline

(inbillionsofcurrentdollars)

Base$ FY2017 FY2018 FY2019 FY2020 FY2021 FY17-FY21

ProposedinFY

2016

547.3 556.4 564.4 570.0 581.4 2,819.5

ProposedinFY

2017

523.9 556.7 564.8 570.4 585.2 2,801.1

Delta -23.4 +0.3 +0.5 +0.4 +3.8 -18.5

FY17RealChange -0.8% +5.0% +0.3% -0.1% +1.4% +1.2%

Picture1F-35LightningIIPrototype(X-35A)

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Nuclear Weapons and Non-Proliferation Table6:FiscalYear2017RequestforNationalNuclearSecurityAdministration(NNSA)

(inbillionsofcurrentdollars)

FY2016Enacted: FY2017FundingRequest: Allocatedto:

1.94 1.81 NuclearNon-Proliferation

8.85 9.24 WeaponsActivities

0.36 0.41 FederalSalariesandExpenses

1.38 1.42 NavalReactors

12.53 12.88 TotalNNSARequest*

*Maynotaddupduetorounding

Table7:FiscalYear2017RequestforDefenseNuclearNon-Proliferation

(inmillionsofcurrentdollars)

FY2016Enacted FY2017FundingRequest: Allocatedto:

426.8 337.1 GlobalMaterialSecurity

316.6 341.1 MaterialManagementandMinimization

340 270 Non-ProliferationConstruction

130.2 124.7 Non-ProliferationandArmsControl

419.3 393.9 Non-ProliferationResearchandDevelopment

234.4 271.9 NuclearCounterterrorismandIncidentResponseProgram

94.6 83.2 LegacyContractorPensions

-21.6 -14 PriorYearBalance

1,940.3 1,807.9 TotalDefenseNuclearNon-Proliferation

Request*

*Maynotaddupduetorounding

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Table8:ReviewofDefenseNuclearNon-ProliferationFundingoverlastFiveYears

*ExcludesNuclearCounterterrorismprogram,whichwastransferredfromWeaponsActivitytoNonproliferation

accountinFY2016.AlsoexcludesNon-ProliferationConstructionprogram.

Graph3:ReviewofDefenseNuclearNon-ProliferationFundingoverlastFiveYears

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

2,200,000,000

2,400,000,000

FY2013Enacted

FY2014Enacted

FY2015Enacted

FY2016Enacted

FY2017Requested

DefenseNuclearNon-Proliferation

CoreNuclearNon-ProliferationPrograms(ExcludingNonproliferationConstruction&Counterterrorism)

FY13

Enacted

FY14

Enacted

FY15

Enacted

FY16

Enacted

FY17

Requested

FY17vs.

FY16

DefenseNuclearNon-

Proliferation$2.4billion $1.95billion $1.62billion $1.94billion $1.81billion -$130million

CoreNon-Proliferation

Programs*$1.97billion $1.51billion $1.27billion $1.36billion $1.27billion -$90million

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Table9:RequestforFiscalYear2017SelectedNuclearWeapons

(inmillionsofcurrentdollars)

FY2016Enacted: FY2017FundingRequest: Allocatedto:

736.2 1,358.3 LongRangeStrikeBomber*

1,390.7 1,864.3 OhioSubmarineReplacementProgram

212.1 137.9 B61TailKitAssembly

1,199 1,220.6 TridentIIBallisticMissileModifications

75.2 113.9 GroundBasedStrategicDeterrent

16.1 95.6 Long-RangeStandoffWeapon

195.0 220.3 W80-4NuclearWarhead

643.3 616.1 B61-12NuclearLifeExtensionProgram

244.0 222.9 W76-1NuclearLifeExtensionProgram

220.2 281.3 W88NuclearLifeExtensionProgram

*LongRangeStrikeBomberwillservebothconventionalandnuclearmissions

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Funding for Selected Weapons Systems AIRCRAFT

F-35JointStrikeFighter$11,602.4million(68aircraft)–FY’16Total$10,504.5mi1lion(63aircraft)–FY’17RequestF-22RaptorFighter$555.6million–FY'l6Total$704.4million–FY'17RequestF/A-18E/FSuperHornetFighter$350.0million(5aircraft)–FY'l6Total$184.9million(2aircraft)–FY'17RequestV-22OspreyTiltrotorAircraft$1,609.0million(20aircraft)–FY’16Total$1,474.9million(16aircraft)–FY’17RequestC-130JHerculesMilitaryTransportAircraft$2,462.2million(29aircraft)–FY’16Total$1,339.1million(14aircraft)–FY'17RequestAH-64EApacheHelicopter$1,419.0million(64upgrades)–FY'l6Total$1,132.6million(52upgrades)–FY’17RequestCH-47ChinookHelicopter$1,136.3million(39aircraft)–FY'16Total$681.8million(22aircraft)–FY’17RequestUH-60BlackHawkHelicopter$1,768.5million(107aircraft)–FY'l6Total$976.1million(36aircraft)–FY’17RequestP-8APoseidonAnti-SubmarineWarfare(ASW)Aircraft$3,372.7million(17aircraft)–FY'l6Total$2,165.2million(11aircraft)–FY’17RequestE-2DAdvancedHawkeyeTacticalAirborneEarlyWarning(AEW)Aircraft$1,249.9million(5aircraft)–FY’16Total$1,399.6million(6aircraft)–FY’17Request

KC-46A Tanker$2,995.9million(12aircraft)–FY'l6Total$3,318.5million(15aircraft)–FY’17RequestF-15EagleFighter$1,041.3million–FY’16Total$768.5million–FY’17RequestLong-RangeStrikeBomber(B-3)$736.2million–FY'l6Total$1,358.3million–FY’17RequestSHIPBUILDING

CVN-78“Ford”ClassNuclearAircraftCarrier$2,771.9million–FY'l6Total$2,786.4million–FY’17 RequestDDG-51AegisDestroyer$4,449.1million(2ships)–FY'l6Total$3,498.3million(2ships)–FY’17 RequestLittoralCombatShip (LCS)$1,816.3million(3ships)–FY’16Total$1,598.9million(2ships)–FY’17RequestNOTE:ThePentagonannouncedaspartoftheFY’17requestthatitwasreducingthetotalnumberofLCSvesselspurchasedfrom52to40.SSN-774“Virginia”ClassSubmarine$5,741.7million(2subs)–FY'l6Total$5,322.3million(2subs)–FY’17Request“Ohio”ClassSubmarineReplacementProgram$1,390.7million–FY’16Total$1,864.3million–FY’17 RequestLHA(R)“America”ClassAmphibiousAssaultShip$497.7million–FY’16Total$1,648.2million(1ship)–FY’17 Request

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MISSILES/ORDNANCE

AdvancedMediumRangeAir-AirMissile(AMRAAM)$665.4million(429missiles)–FY’16Total$661.7million(419missiles)–FY’17RequestTridentIIBallisticMissileModernization$1,199.0million–FY’16Total$1,220.6million–FY’17RequestTacticalTomahawkCruiseMissile$297.8million(149missiles)–FY’16Total$298.1million(100missiles)–FY’17RequestB61TailKitAssembly(TKA)$212.1million–FY’16 Total$137.9million–FY’17RequestJointDirectAttackMunition(JDAM)$565.3million(23,796units)–FY’16Total$778.9million(33,443units)–FY’17RequestJointAir-to-SurfaceStandoffMissile (JASSM)$436.2million(340missiles)–FY’16Total$462.0million(360missiles)–FY’17RequestSmallDiameter Bomb$224.5million(1,977units)–FY’16Total$423.2million4,507units)–FY’17RequestHellfireMissiles$762.9million(6,639missiles)–FY’16Total$685.5million(5,846missiles)–FY’17RequestLongRangeStandoffWeapon$16.1million–FY’16Total$95.6million–FY’17Request

Ground-BasedStrategicDeterrent(NewICBM)$75.2million–FY’16Total$113.9million–FY’17Request

SELECTEDBALLISTICMISSILEDEFENSE

Ground-BasedMidcourseDefense$1,613.5million–FY’16Total$1,192.7million–FY’17RequestAEGISBMD$1,621.1million–FY’16Total$1,568.0million–FY’17RequestTHAAD$686.5million–FY’16Total$639.9million–FY’17RequestPatriot/PAC-3$364.4million–FY’16Total$315.7million–FY’17RequestPAC-3/MSEMissile$517.2million–FY’16Total$423.2million–FY’17RequestSPACEBASEDSYSTEMS

AdvancedExtremelyHighFrequency$555.5million–FY’16Total$904.7million–FY’17RequestEvolvedExpendableLaunchVehicle(EELV)$1,478.7million–FY’16Total$1,803.0million–FY’17RequestGlobalPositioningSystem$870.6million–FY’16Total$847.4million–FY’17RequestSpaceBasedInfraredSystem(SBIRS)$834.2million–FY’16Total$544.5million–FY’17Request[Continuesonnextpage]

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GROUNDSYSTEMS

UNSTAFFEDSYSTEMS

AbramsTank$508.5million–FY’16 Total$558.7million–FY’17Request

MQ-1B/MQ-lCPredator/GreyEagle$453.6million–FY’16Total$120.8million–FY’17Request

JointLightTacticalVehicle$374.5million–FY’16Total$735.4million–FY’17 Request

MQ-9ReaperUnmannedAerialVehicle(UAV)$1,102.9million–FY’16Total$1,085.9million–FY’17Request

AmphibiousCombatVehicle$212.2million–FY’16 Total$158.7million–FY’17Request

AGSUnmannedAerialVehicle (UAV)$1,384.0million–FY'l6Total$1,102.2million–FY’17Request