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Updated July 18, 2024
Defense Primer: Planning, Programming, Budgeting, and
Execution (PPBE) Process
Introduction
programs in the FYDP. The budgeting phase results in a
The Planning, Programming, Budgeting, and Execution
Budget Estimate Submission (BES), which covers the first
(PPBE) process is a U.S. Department of Defense (DOD)
year of the POM and converts programs into budget terms
system for allocating resources among the military
for submission to Congress.
departments, defense agencies, and other entities (referred
to as DOD components). This annual process serves as the
Figure 1. DOD Resource Allocation Process (notional)
framework for DOD civilian and military leaders to decide
(fiscal year cycle by calendar year and month)
which programs and force management requirements to
fund based on strategic objectives. DOD Directive 7045.14
states the objective of the process is “to provide the DOD
with the most effective mix of forces, equipment,
manpower, and support attainable within fiscal constraints.”
Chairman of the Joint Chiefs of Staff Instruction 3100.01F
describes the process as the Secretary of Defense’s
“institutional strategic planning system and the primary
decision-making process for translating strategic guidance
into resource allocation decisions.” The process produces
DOD’s portion of the President’s annual budget request to
Congress and updates the DOD’s five-year funding plan,
known as the Future Years Defense Program (FYDP). In
2024, the Commission on Planning, Programming,
Budgeting, and Execution Reform recommended replacing
PPBE with a new Defense Resourcing System (DRS) to

strengthen “the connection between strategy and resource
Source: CRS graphic based on DOD references.
allocation while creating a more flexible and agile
Notes: CY: calendar year; FY: fiscal year cycle. Prior: prior years.
execution process.”
Background
Planning
The Under Secretary of Defense (USD) for Policy leads the
In 1961, then-Secretary of Defense (SECDEF) Robert S.
planning phase. The Chairman of the Joint Chiefs of Staff
McNamara established the Planning, Programming, and
(CJCS) also plays a significant role in the process, in
Budgeting System (PPBS) as a framework for linking
accordance with statutory responsibilities under 10 U.S.C.
strategic objectives with resources. In 2003, DOD renamed
§151 as the principal military advisor to the SECDEF. The
the system PPBE in part to emphasize the need to better
CJCS’s role is, in part, to advocate for solutions to
manage the execution of budget authority provided by
department-wide requirements. The phase involves
Congress. The Deputy Secretary of Defense manages the
reviewing the President’s National Security Strategy, the
overall process. PPBE is one of DOD’s three main
SECDEF’s National Defense Strategy, and the CJCS’s
acquisition-related decision support systems, along with the
National Military Strategy to align the resulting Defense
Joint Capabilities Integration and Development System
Planning Guidance (DPG) with a presidential
(JCIDS) for developing requirements to address capability
administration’s policy goals and views on potential threats,
gaps and the Defense Acquisition System (DAS) for
force structure, readiness posture, and other factors.
managing acquisition programs. PPBE is a calendar-driven
Developed with input from the CJCS, military departments,
process that, for any fiscal year cycle, typically begins more
and combatant commanders, the DPG typically contains
than two years before the expected year of budget
guidance on investments and divestments for the
execution. Figure 1 shows when PPBE actions associated
components and is intended to inform a component’s POM.
with a fiscal year cycle may occur during a calendar year.
PPBE Phases
Programming
The programming phase is meant to analyze anticipated
The PPBE process typically produces internal documents
effects of present-day decisions on the future force. The
and materials for each phase. The planning phase produces
Director of the Office of Cost Assessment and Program
the Defense Planning Guidance (DPG), which details force
Evaluation (CAPE) leads this phase. The programming
development priorities. The programming phase generates a
phase involves the head of each component developing a
Program Objective Memorandum (POM), a funding plan
POM recommending resource requirements over five years.
for each component covering a five-year period that adjusts
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Defense Primer: Planning, Programming, Budgeting, and Execution (PPBE) Process
Each POM prioritizes and adjusts programs in the FYDP—
effectiveness of another system. Congress may also
categorized by such inputs as forces (i.e., equipment items
consider if changes to military department and DOD
or combat units), military and civilian personnel, and
component processes, practices, and information
funding—and describes risks associated with unfunded,
technology systems might be necessary to implement DRS
underfunded, or overfunded programs. Following POM
or another system. Congress may also consider how DRS or
submission, CAPE leads the reviews of the programs,
another system may enable DOD officials to resolve
forecasts the resource requirements for the next five years,
competing views on funding for strategic priorities.
and updates the FYDP. After program reviews, the
SECDEF may direct the components to make changes.
Figure 2. Current PPBE Documents, by Phase; and
Proposed DRS Documents, by Phase
Budgeting
The USD Comptroller/Chief Financial Officer leads the
budgeting phase, in which the components complete a
Budget Estimate Submission for the first year of the FYDP.
Using guidance from the Office of Management and Budget
(OMB), the Comptroller reviews the budget submissions
for funding and fiscal controls, phasing of the efforts over
the funding period, and feasibility of execution within the
budget year. During this phase, Comptroller analysts
collaborate with component analysts to align budget
requests with the overall defense budget. As a result of
budget reviews, the SECDEF may direct the components to
make changes. The final product is typically submitted to
OMB in December for inclusion in the President’s annual
budget request to Congress, usually submitted in February.
Execution

During the execution phase, OSD and the components
Source: CRS graphic based on Commission on Planning,
evaluate the obligation and expenditure of funds, as well as
Programming, Budgeting, and Execution Reform, Defense Resourcing
program results. The purpose of execution review is to
for the Future: Final Report, March 2024, p. 47.
assess program objectives against outcomes. The
Notes: “Guid.” is guidance; “Subm.” is submission; and “Rep.” is
components assess compliance with SECDEF guidance,
reports.
performance metrics, and program results. OSD staff
review the assessments and recommend changes, in
coordination with the CJCS and the Joint Staff.
Additional Resources
10 U.S.C. §§113, 134, 135, 139a, 151, 153
Commission Recommendations
DOD, Financial Management Regulation, 7000.14-R
Section 1004 of the National Defense Authorization Act for
DOD, Directive 7045.14, The Planning, Programming, Budgeting,
Fiscal Year 2022 (NDAA; P.L. 117-81) established the 14-
and Execution (PPBE) Process
member Commission to examine the effectiveness of the
PPBE process, consider alternatives, and make legislative
DOD, Future Years Defense Program (FYDP), Structure
and policy recommendations “to improve such process and
Handbook, February 2020
practices in order to field the operational capabilities
Chairman of the Joint Chiefs of Staff Instructions (CJCSI)
necessary to outpace near-peer competitors, provide data
3100.01F, 5123.01I, and 8501.01B
and analytical insight, and support an integrated budget that
Commission on Planning, Programming, Budgeting, and
is aligned with strategic defense objectives.” In March
Execution Reform, Defense Resourcing for the Future: Final
2024, the Commission issued its final report, which
Report, March 2024
contained 28 recommendations across five “critical areas.”
CRS Insight IN12372, PPBE Reform Commission Final Report
The first recommendation suggests DOD replace PPBE
Recommendations: Issues for Congress
with a new Defense Resourcing System (DRS) that would
include fewer processes and documents than PPBE. For
CRS Report R47178, DOD Planning, Programming, Budgeting,
example, the recommendation suggests DRS have three
and Execution (PPBE): Overview and Selected Issues for Congress
main processes (i.e., Strategy, Resource Allocation, and
CRS In Focus IF10831, Defense Primer: Future Years Defense
Execution) rather than the four in PPBE, in part by
Program (FYDP)
consolidating elements of the current Programming and
CRS In Focus IF10428, Intelligence Planning, Programming,
Budgeting phases. See Figure 2.
Budgeting, and Evaluation (IPPBE) Process
Potential Issues for Congress

Congress may consider whether replacing the current PPBE
process with another system, such as the proposed Defense
Resourcing System (DRS), would improve the alignment of
Brendan W. McGarry, Analyst in US Defense Budget
budget requests to strategy and the fielding of operational

capabilities, and what criteria could be used to measure the
IF10429
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Defense Primer: Planning, Programming, Budgeting, and Execution (PPBE) Process


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