January 9, 2023
The Pacific Deterrence Initiative: A Budgetary Overview
The Pacific Deterrence Initiative (PDI) is a set of prioritized
T-AO fleet oiler, and $439 million for F-35 fighter aircraft
defense investments and activities established by Congress
upgrades.
to enhance U.S. deterrence and defense, assure allies and
Authorized and Appropriated Activities
partners, and counter adversary threats in the Indo-Pacific
In the enacted FY2022 NDAA (P.L. 117-81), Congress
region in response to China’s growing military power.
authorized $7.1 billion for PDI activities and substantially
Background and Establishment
altered the categories and allocation of spending from the
budget request. In its explanatory statement accompanying
Section 1251 of the William M. (Mac) Thornberry FY2021
the NDAA, the House Armed Services Committee
National Defense Authorization Act (NDAA; P.L. 116-283)
reiterated its support for PDI, but criticized DOD for its
created PDI to carry out activities in support of U.S.
emphasis on weapons systems:
strategic goals in the Indo-Pacific. In the Senate Armed
Services Committee report (S.Rept. 116-236)
We note that the PDI budget request for fiscal year
accompanying the FY2021 NDAA, PDI is described both
2022 was improperly focused on platforms,
as a means to “focus resources on capability gaps” and
“enhance budgetary transparency and oversight” by
including the DDG-51, T-AO fleet oiler, and F-35,
requiring the Department of Defense (DOD) to provide a
as opposed to improving the joint posture and
detailed and region-specific account of spending and
enabling
capabilities
necessary
to
enhance
programs. PDI is modeled on a similarly geographic-based
deterrence in the Indo-Pacific region. Therefore, we
effort known as the European Deterrence Initiative (EDI),
identified approximately $7.1 billion in investments
which was established in 2014 to deter Russian military
that support and attempt to improve the current
aggression in Eastern Europe and assure U.S. allies in the
posture, capabilities, and activities of U.S. forces in
region.
the Indo-Pacific region … that more accurately
reflect a baseline from which to measure progress
PDI is not a separate fund to resource DOD activities.
against the objectives of the PDI.
Rather, it represents an attempt to highlight DOD efforts
that accomplish the congressionally directed goals of the
Congress also identified and authorized a different set of
initiative. It means that, although DOD submits a separate
investments across the following activity categories:
budget request for PDI activities, funding is provided as a
Modernize and Strengthen Presence ($4.1 billion);
subset of the DOD budget, rather than through separate
Exercises, Training, Experimentation ($696 million);
appropriations.
Infrastructure Improvements ($1.5 billion);
FY2022 Funding
Logistics and Prepositioning of Equipment ($360
million); and
President’s Budget Request
The FY2022 President’s budget requested
Defense and Security Capabilities of Allies and Partners
$5.1 billion for
($489 million).
PDI. This submission encompassed more than 30 line items
within existing defense appropriations accounts, organized
In addition, Section 1242 of the FY2022 NDAA required
into DOD-defined activity categories:
the Commander of U.S. Indo-Pacific Command
(INDOPACOM) to submit to Congress an independent
Force Design and Posture. Design a force capable of
assessment of PDI resources, force posture, and other
protecting the interests of U.S. allies and deterring
capabilities necessary to implement the National Defense
and/or prevailing in conflict ($23 million);
Strategy in the Indo-Pacific region for each fiscal year over
Exercises, Experimentation, and Innovation. Improve
a five-year period through FY2027. INDOPACOM
readiness and effectiveness and develop new ways to
completed this assessment in March 2022, identifying $9.1
operate ($150 million);
billion in FY2023 PDI activities.
Joint Force Lethality. Ensure the United States can
deter and defeat threats in the Indo-Pacific ($4.9
Neither the DOD Appropriations Act, 2022 (P.L. 117-103)
billion);
nor the Military Construction, Veterans Affairs, and
Related Agencies Act, 2022 (P.L. 117-103) mention the
Strengthen Alliances and Partnerships. Enhance
interoperability and partners’ abilities to defend against
Pacific Deterrence Initiative. The report accompanying the
DOD bill (H.Rept. 117-81) recommended $15 million for
aggression (less than $1 million).
planning and design of military construction projects for
The majority of PDI spending identified in the DOD
PDI in INDOPACOM. Given the absence of dedicated PDI
request was dedicated to weapons systems, including $2
appropriations and the lack of geographical identification in
billion for a DDG-51 Aegis destroyer, $744 million for a
DOD budget documentation, the extent to which authorized
FY2022 PDI activities received appropriations is unclear.
https://crsreports.congress.gov
The Pacific Deterrence Initiative: A Budgetary Overview
FY2023 Funding
Figure 1. FY2023 PDI Funding by Category
The FY2023 President’s budget requested $6.1 billion for
PDI—$1 billion less than the FY2022 PDI funding
authorization total. The request also included PDI funding
projections through FY2027.
In response to congressional criticism of the FY2022
budget request, DOD stated that the investments identified
in the FY2023 PDI request would focus solely on the Indo-
Pacific. Accordingly, the FY2023 request excluded certain
routine activities and exercises, investments designed to
address broader strategic threats, or investments that are
transferrable between regions. In the James M. Inhofe
Source: DOD, FY2023 PDI budget documentation, April 2022.
FY2023 NDAA (P.L. 117-263), Congress authorized a total
FY2023 NDAA (P.L. 117-263).
of $11.5 billion in the following categories of activity:
Improved Posture and Presence: $1.8 billion
Considerations for Congress
requested, $6.46 billion authorized. These activities aim
to strengthen the presence, positioning, readiness, and
Objectives and Resourcing. The success of PDI in
resilience of U.S. forces in the Indo-Pacific. Authorized
achieving its two primary objectives—strengthening
defense investments in the Indo-Pacific and improving
activities include Guam missile defense infrastructure
congressional oversight of DOD’s regional activities—
development, Army Maneuverable Support Vessel Light
has
procurement, and operation and maintenance for III
been disputed. While many Members support the creation
and funding of PDI, some analysts maintain that PDI would
Marine Expeditionary Force.
serve as a more effective investment tool if it were a
Logistics and Prepositioning of Equipment: $302.8
dedicated appropriations account, rather than a regionally
million requested, $500 million authorized. These
focused subset of the broader DOD budget. Other analysts
activities aim to improve logistical support and the
have also argued that PDI provides Congress with an
stockpiling of munitions, fuel, and other materiel in the
inaccurate picture, as it does not encompass all DOD
Indo-Pacific. Authorized activities include Army
activities relevant to countering China.
watercraft procurement, Navy logistics support, and Air
From an oversight perspective, some Members have
Force logistics and prepositioning of equipment.
contended that DOD appears to lack standard criteria for
Exercises, Training, and Experimentation: $2.3
deciding whether and how to include an activity within the
billion requested, $2 billion authorized. These activities
initiative. Congress may also consider refining PDI
support the conduct of exercises and training for U.S.
objectives and procedures, or delineating such activities in
and partner forces in the Indo-Pacific, as well as
separate funding tables accompanying annual defense
experimental development of new capabilities. Half of
authorization and appropriations legislation.
this category is allocated towards Advanced Innovative
Technologies, a DOD-wide research program that
Alignment with Distributed Operational Concepts. To
prevail in conditions of great power competition, the Air
includes a short-range antimissile defense system and
Force, Navy, and Marine Corps have recently developed
other high-technology classified systems.
operational concepts that emphasize wider and more
Infrastructure Improvements: $1.2 billion requested,
diversified combat and logistical operations by larger
$1.8 billion authorized. These activities aim to build
numbers of smaller units and platforms. (e.g., Agile Combat
new infrastructure and improve existing facilities in the
Employment, Distributed Maritime Operations, and
Indo-Pacific. Over half of this category is allocated
Expeditionary Advanced Basing Operations). Congress
towards military construction projects in Guam, Japan,
may direct DOD to prioritize PDI spending that supports a
Australia, and the Mariana Islands.
wider distribution of forces in contested environments. For
instance, Congress may require DOD to identify and carry
Defense and Security Capabilities of Allies and
out investments in the construction or modification of
Partners: $453.1 million requested, $732 million
additional airfields in the Indo-Pacific region to reduce the
authorized. These activities aim to improve the
concentration and vulnerability of aircraft in a conflict, in
militaries and security forces of U.S. allies and partners
support of the Air Force’s Agile Combat Employment
in the Indo-Pacific. Authorizations include Defense
operational concept. Congress may also use PDI to
Security Cooperation Agency Security Initiative
incentivize the further development and evaluation of
activities, Army Security Force Assistance Brigade
distributed operational concepts.
activities, and Multi-Domain Task Force deployments.
The FY2023 House Appropriations Committee report
Hibbah Kaileh, Research Assistant
(H.Rept. 117-388) expressed “concern that DOD has
Luke A. Nicastro, Analyst in U.S. Defense Infrastructure
failed to provide adequate accounting for the funding
Policy
requested” under both EDI and PDI, and directed DOD
to augment the budgetary and programmatic
IF12303
descriptions of PDI activities in its FY2024 budget
documentation.
https://crsreports.congress.gov
The Pacific Deterrence Initiative: A Budgetary Overview
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