The President's FY2019 Military Construction Budget Request

The President's FY2019 Military Construction Budget Request

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April 4, 2018
The President’s FY2019 Military Construction Budget Request
On February 12, 2018, President Trump submitted his fiscal
For FY2019, the President requested new budget authority
year (FY) 2019 budget request to Congress. In developing
in the amounts of $10.5 billion in the base budget and
the annual budget request, the Office of the Secretary of
$921.4 million in the Overseas Contingency Operations
Defense (OSD) consolidates the military construction
(OCO) budget, for a total of $11.4 billion for military
projects lists from the military departments and various
construction and military family housing funding. In
defense agencies into a single submission, which it then
comparison, Congress provided $10.8 billion ($10.1 billion
forwards to the Office of Management and Budget (OMB)
in base, $750 million in OCO) for FY2018. DOD also
as part of the overall defense budget request for the
received $920 million in additional FY2018 emergency
upcoming fiscal year. The highest priority projects that will
military construction funding for hurricane recovery.
fit within the budgetary guidance provided by OMB will be
included in the President’s request. The approved projects
Maintenance vs. Construction
assigned a lower priority are slated for funding in future
In budget planning for real property, the tradeoff between
years and are typically included in the Future Years
maintaining and adapting existing facilities or building
Defense Program (FYDP), which is a catalogue that
anew is given close consideration. Funds for the operation
summarizes the forces, resources, and programs associated
and maintenance of defense property are referred to as Base
with DOD operations over a five-year period.
Operation Support (BOS) and Facilities, Sustainment,
Restoration, and Maintenance (FSRM). They are
Legislation authorizing military construction projects is
appropriated as part of the Operation & Maintenance
provided through the annual National Defense
(O&M) allocation within the defense appropriation. New
Authorization Act (NDAA). It originates in the House and
construction is funded through Title I of the Military
Senate Armed Services Committees. Legislation providing
Construction, Veterans Affairs, and Related Agencies bill.
appropriations for military construction originates in the
Military Construction, Veterans Affairs, and Related
In contrast to Figure 1, Figure 2 illustrates the changes in
Agencies subcommittees of the appropriations committees.
FSRM funding from FY2001 through the FY2019 budget
request. Military construction appropriations peaked in
Military Construction and Family
FY2009, and declined sharply through FY2015. The
Housing Appropriations Since 2000
combined funds expended for property maintenance (BOS
Figure 1 illustrates the annual appropriations for military
and FSRM) rose from FY2001 ($16.3 billion) through
construction and family housing from FY2001-FY2019. A
FY2009 ($41.2 billion). However, since then, maintenance
sharp downward trend started in FY2010, when
spending has stabilized at the increased level, averaging
construction activity associated with the 2005 Base Closure
$35 billion per year.
(BRAC) round started to subside. Funding reached a low
point in FY2015 ($6.8 billion).
Figure 2. BOS and FSRM Appropriations
Figure 1. Military Construction and Family Housing
Appropriations: FY2001-FY2019

Source VisualDOD analysis of DOD appropriations. Graphic
created by CRS.
Note: Includes OCO funding. FY2018 and FY2019 amounts
requested, all others enacted.
Sourcse: Military Construction, Family Housing and Base
Realignment and Closure Program (C-1) Justification, FY2019 and the
Overseas Military Construction
FY2018 Omnibus Appropriations Act (P.L. 115-141/H.R. 1625).
Notes: Includes OCO funding. FY2019 amounts requested, all
The military construction budget also funds construction
others enacted.
activities at U.S. military installations and facilities
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The President’s FY2019 Military Construction Budget Request
overseas. Between FY2007 and FY2011 overseas
Figure 4. Military Construction and Family Housing
investments were weighted toward the Central Command
FYDP Projections
(CENTCOM) area of responsibility (primarily Afghanistan,
Iraq, and the Arabian Gulf region). See Figure 3.
Figure 3. Construction Funding by Selected COCOM

Source: National Defense Budget Estimates (Green Book), various
years, Table 6-8 (budget authority in current dollars).
Note: The FY2018 budget did not include a FYDP and the FY2019

Green Book was not available at time of publishing.
Source: Military Construction, Family Housing and Base Realignment
and Closure Program (C-1) Justification, FY2019.
This disparity between projections and actual
Note: Includes OCO funding. FY2018 and FY2019 amounts
appropriations may be caused in part by enactment of the
requested, all others enacted.
Budget Control Act of 2011 (P.L. 112-25), which
FY2012 marked a significant reduction in military
established limits on discretionary spending. The effect of
construction investments in CENTCOM as operations in
the BCA may also be evidenced by a $2.6 billion increase
the region were curtailed. The FY2019 request continues
in FY2018 MILCON funding, which was provided after an
steady investments in Pacific Command (PACOM) and a
$80 billion increase in the BCA limit on defense spending
notable increase in European Command (EUCOM,
for FY2018 (Bipartisan Budget Act of 2018, P.L. 115-123).
principally Eastern Europe and the Baltic States). While
early increases in EUCOM funding were devoted to the
BRAC, or Closing Military Bases
creation of missile defense facilities in Romania and
To date, Congress has authorized DOD to carry out five
Poland, construction since 2015, funding for FY2016 and
rounds of military base realignments and closures (BRAC)
FY2019 has been devoted to the European Deterrence
in 1988, 1991, 1993, 1995, and 2005. This authority expired
Initiative, through which the Administration seeks to
in 2006. The Secretary of Defense requested a renewal of
address concerns of U.S. allies in Eastern and Central
that authority each year between 2012 and 2017 with an
Europe.
aim toward trimming infrastructure that is no longer
deemed necessary for national defense purposes. Congress
MILCON Budget Projections
did not grant the requested authority. The Secretary did not
As part of its annual budget planning and programming
renew the request for BRAC authority with the FY2019
exercise, DOD projects its expected budget levels forward
budget submission.
for five years in the Future Years Defense Program
(FYDP). Actual budget requests—and appropriations—
usually fall short of these annual projections. For example,
Military Construction Budget Process
the military construction and family housing appropriation
request for FY2016 was originally projected in the FY2012
For more information see CRS Report R44710, Military
budget request to be $14.8 billion. The actual FY2016
Construction: Process and Outcomes, by Daniel H. Else andCRS In
funding stands at $8.4 billion. Thus, the original FY2012
Focus IF10831, Defense Primer: Future Years Defense Program
projection overstated the actual funding level by
(FYDP), by Lynn M. Williams and Heidi M. Peters.
approximately 75% (see Figure 4).
Lynn M. Williams, lmwilliams@crs.loc.gov, 7-0569
IF10866
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