Updated December 19, 2018
Defense Primer: Budgeting for National and Defense
Intelligence
Introduction
The IC has established organizing principles it calls “Rules
Intelligence Community (IC) programs provide the
of the Road” to loosely explain the programs’ different but
resources (money and manpower) to accomplish IC goals
related structures. A program is primarily NIP if it funds an
and responsibilities as defined by the U.S. Code and
activity that supports more than one department or agency
Executive Order 12333. IC programs are funded under two
(such as satellite imagery), or provides a service of common
programs: (1) the National Intelligence Program (NIP),
concern for the IC (such as secure communications). The
which covers the programs, projects, and activities of the IC
NIP funds the CIA and the strategic-level intelligence
oriented towards the strategic requirements of
activities associated with the National Security Agency,
policymakers, and (2) the Military Intelligence Program
Defense Intelligence Agency and National Geospatial-
(MIP), which funds defense intelligence activities intended
Intelligence Agency.
to support tactical military operations and priorities. The
Director of National Intelligence (DNI) and the Under
A program is primarily MIP if it funds an activity that
Secretary of Defense for Intelligence (USD(I)) manage the
addresses a unique DOD requirement. Additionally, MIP
NIP and MIP, respectively, under different authorities.
funds may be used to “sustain, enhance, or increase
capacity/capability of NIP systems.” The DNI and USD(I)
The NIP and MIP
work together in a number of ways to facilitate the
“seamless integration” of NIP and MIP intelligence efforts.
National Intelligence Program (NIP)
Mutually beneficial programs may receive both NIP and
The origins of the intelligence budget, separate and distinct
MIP resources.
from the defense budget, date back to reforms initiated in
the 1970s to improve oversight and accountability of the IC.
NIP and MIP Spending
At that time, the National Foreign Intelligence Program
At the present time only the NIP topline figure must be
(NFIP) was managed by the Director of Central Intelligence
publicly disclosed based on a directive in statute. The DNI
(DCI), in consultation with the Secretary of Defense, and
is not required to disclose any other information concerning
overseen by the National Security Council (NSC). The term
the NIP budget, whether the information concerns particular
“NIP” was created by the Intelligence Reform and
intelligence agencies or particular intelligence programs.
Terrorism Prevention Act (IRTPA) of 2004 (P.L. 108-458
The Secretary of Defense also discloses annual MIP
§1074). The IRTPA deleted “Foreign” from NFIP and
appropriations figures back to 2007. For Fiscal Year (FY)
created the position of DNI. The DNI was given greater
2017, the aggregate appropriated for the NIP and MIP
budgetary authority over the NIP than the DCI had in
totaled $73B (NIP $54.6B, MIP $18.4B). For FY2018, the
conjunction with the NFIP. Intelligence Community
aggregate amount appropriated for the NIP and MIP totaled
Directive (ICD) 104 provides overall policy to include a
$81.5B (NIP $59.4B, MIP $22.1B). For FY2019, the
description of the DNI’s roles and responsibilities as
aggregate amount requested for the NIP and MIP totals
program executive of the NIP.
$81.1 (NIP $59.9B, MIP $21.2B).
Military Intelligence Program (MIP)
Two Budget Processes: IPPBE & PPBE
Military-specific tactical and/or operational intelligence
The IC’s Intelligence Planning, Programming, Budgeting
activities were not included in the NFIP. They were referred
and Evaluation (IPPBE) process allocates funding and
to as Tactical Intelligence and Related Activities (TIARA)
personnel resources supporting IC-wide capabilities
and were managed separately by the Secretary of Defense.
through the development and execution of the NIP and its
TIARA referred to the intelligence activities “of a single
associated budget. The NIP addresses priorities described in
service” that were considered “organic” (meaning “to
national security-related documents such as the National
belong to”) military units. In 1994, a new category was
Intelligence Strategy. The IPPBE process applies to all 17
created called the Joint Military Intelligence Program
components of the IC. Program managers control NIP
(JMIP) for defense-wide intelligence programs. A DOD
resources aligned with requirements for IC capabilities such
memorandum signed by the Secretary of Defense in 2005
as cryptology, reconnaissance, and signals collection—
merged TIARA and JMIP to create the MIP. DOD
capabilities that may span several IC components.
Directive 5205.12, signed in November 2008, established
policies and assigned responsibilities, to include the
The DOD’s Planning, Programming, Budgeting and
USD(I)’s role as program executive of the MIP, acting on
Execution (PPBE) process provides the funding the service
behalf of the Secretary of Defense.
components and DOD intelligence agencies (DIA, NSA,
NRO, and NGA) require to organize, train and equip
military forces for combat, and to cover all necessary
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Defense Primer: Budgeting for National and Defense Intelligence
support missions. The senior leader for intelligence in each
Evaluation is a Process not a Phase
service – called the Component Manager – manages that
The E in the IPPBE stands for evaluation, not execution.
service’s MIP resources in accordance with USD(I)
The PPBE also includes evaluation but it is not part of its
guidance and policy.
acronym.
Evaluation is a continuous process with several periodic
Each phase of the IPPBE and PPBE processes has leads on
entry points throughout both the IPPBE and PPBE phases.
the ODNI and OUSD(I) staffs who work in concert to
synchronize effort.
Its primary objective is to assess the effectiveness of NIP
and MIP programs, activities, major initiatives, and
Planning Phase
investments. Evaluations inform current and future
The IC’s Assistant DNI for Systems and Resources
planning, programming, budgeting and execution decisions.
Analysis (ADNI/SRA) and the DOD’s Under Secretary of
Responsibility for the evaluation function is shared. For
Defense for Policy lead the IPPBE and PPBE planning
example, DOD and IC Policy and Strategy offices conduct
phases, respectively. They analyze long-term trends,
the program-level and strategic assessments to inform the
validate intelligence-related requirements, identify gaps and
planning phase. CFOs are responsible for all budgeting and
shortfalls, and prioritize needs as they relate to the DNI and
execution-related evaluations and performance
USD(I) policy goals.
measurement reports required for OMB and Congress.
Programming Phase
IPPBE and PPBE Budget Cycles
The IPPBE and PPBE comprise at least four different fiscal
During the programming phase, the IPPBE lead is the
year budget cycles running simultaneously at any given
ADNI/SRA while the PPBE lead is the Director of Cost and
point in time, and are further complicated by numerous
Program Evaluation (CAPE). The primary objective of this
federal, department, and agency-specific timelines,
phase is to provide analytically based, fiscally constrained
missions and priorities.
options to frame resource decisions. Programming includes
the following primary activities:
(Note: This In Focus was originally written by former CRS
Analyst Anne Daugherty Miles.)
Conducting major issue studies to analyze high-impact,
Relevant Statutes
cross-IC issues (such as a common need for data-mining
technology);
Title 10, U.S. Code, Chapter 9; Title 50, Chapter 44, Subchapter
Developing independent total life-cycle cost estimates
III
for major systems acquisitions and other programs of
interest;
CRS Products
Producing the final Consolidated Intelligence Guidance
CRS In Focus IF10428, Intelligence Planning, Programming,
(CIG)—the joint DNI/USD(I) guidance used by NIP
Budgeting and Evaluation Process (IPPBE), by Michael E. DeVine
Program Managers and MIP Component Managers to
finalize their program and budget submissions.
CRS In Focus IF10429, Defense Primer: Planning, Programming,
Budgeting and Execution (PPBE) Process, by Brendan W. McGarry
Budgeting (and Execution) Phase
and Heidi M. Peters
In the IPPBE, budgeting and execution comprise one phase
CRS In Focus IF10470, The Director of National Intelligence (DNI),
led by the ADNI/Chief Financial Officer (ADNI/CFO). The
by Michael E. DeVine
PPBE separates budgeting and execution into two separate
CRS In Focus IF10523, Defense Primer: Under Secretary of Defense
phases. The ADNI/CFO’s counterpart is the USD
(Intelligence), by Michael E. DeVine
Comptroller/Chief Financial Officer (USD(C)/CFO).
CRS In Focus IF10525, Defense Primer: National and Defense
Intelligence, by Michael E. DeVine
The ADNI/CFO is responsible for producing the
Congressional Budget Justification Books (CBJBs) and the
CRS Report R44381, Intelligence Community Spending: Trends and
accompanying NIP Summary of Performance and Financial
Issues, by Michael E. DeVine
Information Report. Together, these classified documents
explain and justify the details associated with each of the
Other Resources
NIP programs to the congressional intelligence committees.
DOD Directive 7045.14, The Planning, Programming, Budgeting,
In contrast, the MIP programs are justified using
and Execution (PPBE) Process, January 25, 2013.
Congressional Justification Books (CJBs) submitted to
Congress as part of DOD’s PPBE process.
IC Directive 116, Intelligence Planning, Programming, Budgeting, and
Evaluation System, September 14, 2011.
Once the budget is enacted by Congress, the two CFOs
manage the NIP and MIP budget apportionment and
reprogramming process. Execution and performance
reviews are undertaken, so that funds are obligated in
Michael E. DeVine, Analyst in Intelligence and National
accord with DNI, USD(I), and legislative intent. Mid-year
Security
reviews may lead to decisions that require a redistribution
IF10524
of funds.
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Defense Primer: Budgeting for National and Defense Intelligence
Disclaimer
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