The Department of Defense Appropriations bill provides $649.2 billion in discretionary and mandatory budget authority for fiscal year 2012. Discretionary BA totals $648.7 billion – $530.0 billion for the normal operations of the Department and $118.7 billion for the conduct of the global war on terrorism. Additionally there is $514 million in appropriated entitlement spending for the CIA Retirement and Disability fund. The funding in the bill is 3 percent above FY 2011 levels, but two percent below the President’s request, which was the level assumed in the budget resolution.
The spending levels in the bill do not exceed the 302(b) allocations adopted by the Appropriations Committee, which are in aggregate within the overall spending level approved by the House in the Budget Resolution (H. Con. Res. 34).
This measure provides the overwhelming majority of the funding for the Department of Defense’s activities with the remaining funding provided in the Military Construction-VA (for military construction and family housing) and Energy and Water (for nuclear weapons and propulsion-related work) appropriations bills. Key activities funded in this bill include:
Military Personnel. The military personnel accounts provide funding for compensation costs of the uniformed military, including basic, incentive, and special pays for active duty, reserve, and National Guard personnel; retired pay accrual; housing, subsistence, and other allowances; recruitment and retention initiatives; permanent change of station costs; other ancillary benefits. The bill provides $142.8 billion for these accounts which is equal to the President’s request and 4 percent above the FY 11 levels.
Operations & Maintenance. The operation and maintenance accounts include funding for the daily operations of the Department of Defense. This includes funding for DOD civilians, the majority of funding for the defense health program, services for maintenance of equipment, and fuel, supplies, and spare parts for weapons and equipment. Funding for these accounts is 4 percent above FY 2011 levels and equal to the President’s request. The bill’s levels include a $502 million across-the-board cut to reflect different economic assumptions than used by the Administration.
Procurement. The procurement accounts provide funding for the acquisition of vehicles, weapons, ammunition, and other equipment. These accounts provide for the recapitalization and modernization of the armed forces, as opposed to the replacement of combat losses or procurement of equipment specifically designed or needed for prosecution of the global war on terrorism. The bill provides $108.3 billion, which is 7 percent above 2011 levels but 4% below the President’s request. The bill’s levels include a $485 million across-the-board cut to reflect different economic assumptions than used by the Administration.
Research, Development, Test & Evaluation [RDT&E]. Together with the procurement accounts, these accounts are known as DOD’s “investment” budget, because they constitute the programs that eventually result in new capabilities for the war fighter. The bill provides $72.1 billion, 3 percent below FY 11 levels and 4 percent below the President’s request. The bill’s levels include a $324 million across-the-board cut to reflect different economic assumptions than used by the Administration.
Intelligence Community. The bill provides $458 million for the Intelligence Community Management Account, which is 30 percent below 2011 levels and 23 percent below the President’s request. The bill also provides a classified level of funding for the National Intelligence Program and the Military Intelligence Program.
Global War on Terrorism. The bill provides $118.7 billion, equal to the President’s request, for the incremental costs to the Department of Defense for prosecuting the Global War on Terrorism. This level is 25 percent below the FY 2011 level reflecting savings from the drawdown in Iraq.
