Updated April 29, 2024
Defense Primer: Budgeting for National and Defense
Intelligence
Introduction
Military Intelligence Program (MIP)
Intelligence Community (IC) programs include the
Military-specific tactical and/or operational intelligence
resources (i.e., money and manpower) to accomplish
activities were not included in the NFIP. They were known
intelligence-related goals and responsibilities as defined by
as Tactical Intelligence and Related Activities (TIARA) and
the United States Code (U.S.C.) and Executive Order
managed separately by the Secretary of Defense. TIARA
12333. IC programs are funded through the: (1) National
referred to the intelligence activities “of a single service”
Intelligence Program (NIP), which covers the programs,
that were considered organic to military units. In 1994,
projects, and activities of the IC oriented toward the
Congress created a new category called the Joint Military
strategic requirements of policymakers; and (2) Military
Intelligence Program (JMIP) for defense-wide intelligence
Intelligence Program (MIP), which funds defense
programs. In 2005, the Secretary of Defense signed a
intelligence activities intended to support tactical military
memorandum that merged TIARA and JMIP to form the
requirements and operations. The Director of National
MIP. DOD Directive 5205.12, signed in November 2008,
Intelligence (DNI) and the Under Secretary of Defense for
established policies and assigned responsibilities, to include
Intelligence and Security (USD(I&S)) manage the NIP and
the USD(I&S)’s role as program executive of the MIP,
MIP, respectively, under different authorities.
acting on behalf of the Secretary of Defense.
NIP and MIP Funding
The IC established organizing principles—known as Rules
Title 50 U.S.C. §3306 requires that the President, as part of
of the Road—to explain the two budget programs’ separate
the annual budget submission to Congress, disclose the total
but related structures. A program is primarily NIP if it
amount of funding requested for the NIP—called the
funds an activity that supports more than one department or
topline. The DNI is not required to disclose any other
agency (such as satellite imagery), or provides a service of
information concerning the NIP budget, whether the
common concern for the IC (such as secure
information concerns particular intelligence agencies or
communications). The NIP funds the Central Intelligence
particular intelligence programs. Although not mandated by
Agency (CIA) and the Office of the Director of National
statute, the Secretary of Defense also discloses annual MIP
Intelligence (ODNI) in their entirety and funds the strategic
appropriations totals dating back to 2007. For FY2025,
intelligence activities associated with departmental IC
funding requested for the NIP and MIP totaled $101.6
elements, such DOD’s National Security Agency (NSA).
billion, including $73.4 billion for NIP and $28.2 billion for
MIP. Compared to FY2024 requested amounts, the FY2025
A program is primarily MIP if it funds an activity that
budget requested $1 billion more funding for NIP and $1.1
addresses a unique DOD requirement. Additionally, MIP
billion less funding for MIP.
funds may be used to “sustain, enhance, or increase
capacity/capability of NIP systems.” The DNI and
Background
USD(I&S) work together in a number of ways to facilitate
the 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 to reforms initiated in the
1970s to improve oversight and accountability of the IC. At
Two Budget Processes: IPPBE & PPBE
that time, the National Foreign Intelligence Program (NFIP)
The IC’s Intelligence Planning, Programming, Budgeting
was managed by the Director of Central Intelligence (DCI),
and Evaluation (IPPBE) process allocates funding and
in consultation with the Secretary of Defense, and overseen
personnel resources supporting IC-wide capabilities
by the National Security Council (NSC). Congress
through the development and execution of the NIP and its
redesignated the NFIP as the NIP in the Intelligence
associated budget. The NIP addresses priorities described in
Reform and Terrorism Prevention Act of 2004 (IRTPA;
national security-related documents such as the National
P.L. 108-458, §1074). The IRTPA also provided for
Intelligence Strategy. The IPPBE process applies to all 18
additional IC reforms, including the position of DNI. The
components of the IC, as specified in 50 U.S.C. §3003(4).
DNI was given more budgetary authority over the NIP than
Program managers control NIP resources aligned with
the DCI had over the NFIP. Intelligence Community
requirements for IC capabilities such as geospatial
Directive (ICD) 104 provides overall policy, to include a
intelligence, signals intelligence, and human intelligence—
description of the DNI’s roles and responsibilities as
capabilities that may span several IC components.
program executive of the NIP.
DOD’s Planning, Programming, Budgeting and Execution
(PPBE) process provides the funding for service
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Defense Primer: Budgeting for National and Defense Intelligence
intelligence components and DOD intelligence agencies
reviews may lead to decisions requiring a redistribution of
(i.e., Defense Intelligence Agency, NSA, National
funds.
Geospatial Intelligence Agency, and the National
Evaluation is a Process not a Phase
Reconnaissance Office) required to organize, train and
The E in the IPPBE stands for evaluation rather than
equip military forces for combat, and to cover support
execution. The PPBE also includes evaluation but it is not
missions. The senior leader for intelligence in each
part of its acronym. Evaluation is a continuous process with
service—called the Component Manager—manages that
service’s
several periodic entry points throughout both the IPPBE
MIP resources in accordance with USD(I&S)
and PPBE phases. Its primary objective is to assess the
guidance and policy.
effectiveness of NIP and MIP programs, activities, major
Planning Phase
initiatives, and investments. Evaluations inform current and
The IC’s Assist
future planning, programming, budgeting, and execution
ant DNI for Systems and Resources
decisions. Executive branch and legislative branch entities
Analysis (ADNI/SRA) and the DOD’s Under Secretary of
share responsibility for evaluating intelligence-related
Defense for Policy lead the IPPBE and PPBE planning
activities and funding decisions. For example, DOD and IC
phases, respectively. They analyze long-term trends,
Policy and Strategy offices conduct the program-level and
validate intelligence-related requirements, identify gaps and
strategic assessments to inform the planning phase. CFOs
shortfalls, and prioritize needs as they relate to the DNI and
are responsible for all budgeting and execution-related
USD(I&S) policy goals. Officials on the staffs of the ODNI
evaluations and performance measurement reports required
and OUSD(I&S) oversee each phase of the IPPBE and
for OMB and Congress.
PPBE processes, and work to synchronize their efforts.
IPPBE and PPBE Budget Cycles
Programming Phase
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. Numerous federal, departmental, and agency-
Program Evaluation (CAPE). The primary objective of this
specific timelines, missions, and priorities further
phase is to provide analytically based, fiscally constrained
complicate both cycles.
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,
cross-IC issues, such as a common need for data-mining
Relevant Statutes
technology;
• Developing independent total life cycle cost estimates
Title 10, U.S. Code, Chapter 9 – Defense Budget Matters
for major systems acquisitions and other programs of
Title 50, U.S. Code, Chapter 44 – National Security
interest;
• Producing the final Consolidated Intelligence Guidance
CRS Products
(CIG)—the joint DNI/USD(I&S) guidance used by NIP
Program Managers and MIP Component Managers to
CRS In Focus IF10428, Intelligence Planning, Programming,
finalize their program and budget submissions.
Budgeting, and Evaluation (IPPBE) Process, by Michael E. DeVine
CRS In Focus IF10429, Defense Primer: Planning, Programming,
Budgeting (and Execution) Phase
Budgeting, and Execution (PPBE) Process, by Brendan W. McGarry
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 phases.
The ADNI/CFO’s counterpart is the USD
CRS In Focus IF10523, Defense Primer: Under Secretary of Defense
Comptroller/Chief Financial Officer (USD(C)/CFO).
for Intelligence and Security, by Michael E. DeVine
CRS In Focus IF10525, Defense Primer: National and Defense
The ADNI/CFO is responsible for producing the
Intelligence, by Michael E. DeVine
Congressional Budget Justification Books (CBJBs) and the
CRS Report R44381, Intelligence Community Spending Trends, by
accompanying NIP Summary of Performance and Financial
Michael E. DeVine and Sofia Plagakis
Information Report. Together, these classified documents
explain and justify the details associated with each of the
Other Resources
NIP programs to the House Permanent Select Committee on
Intelligence and the Senate Select Committee on
DOD Directive 7045.14, The Planning, Programming, Budgeting,
Intelligence. In contrast, the MIP programs are justified
and Execution (PPBE) Process, August 29, 2017.
using Congressional Justification Books (CJBs) submitted
IC Directive 116, Intelligence Planning, Programming, Budgeting, and
to Congress as part of DOD’s PPBE process.
Evaluation System, September 14, 2011.
If the budget is enacted by Congress, the two CFOs manage

the NIP and MIP budget apportionment and reprogramming
processes. Execution and performance reviews are
Michael E. DeVine, Analyst in Intelligence and National
undertaken to assess whether funds are obligated in accord
Security
with DNI, USD(I&S), and congressional intent. Midyear
IF10524
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Defense Primer: Budgeting for National and Defense Intelligence


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https://crsreports.congress.gov | IF10524 · VERSION 15 · UPDATED

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