FY2018 Defense Appropriations Act: An Overview

FY2018 Defense Appropriations Act: An Overview

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April 5, 2018
FY2018 Defense Appropriations Act: An Overview
The FY2018 defense appropriations bill, Division C of the
More Procurement, RDT&E, O&M Funding
Consolidated Appropriations Act of 2018 (H.R. 1625; P.L.
Lawmakers funded all titles in the defense bill at amounts
115-141), appropriates $647 billion for the Department of
higher than enacted FY2017 levels, as shown in Table 1. In
Defense (DOD). This amounts to an increase of $61 billion
terms of percentage, Procurement rose 23% to $134 billion;
(about 10%) over the enacted FY2017 level and an increase
Research, Development, Test and Evaluation (RDT&E)
of $24 billion over the President’s FY2018 budget request
increased 22% to $88 billion; Operation and Maintenance
for such activities.
(O&M) rose 12% to $188 billion; and Revolving and
Management Funds increased 12% to $1.7 billion.
H.R. 1625 is commonly referred to as an omnibus
Procurement was the category with the biggest increase
appropriation, a legislative vehicle comprised of several
over the President’s request.
annual appropriations bills that fund the federal
government. The House passed H.R. 1625 on March 22,
Selected Highlights
2018. The Senate passed the bill in the early hours of March
The legislation includes a number of changes to personnel,
23, 2018, and the President signed it later that day. Since
policy and weapons programs.
October 1, 2017, the start of FY2018, Congress had passed
five continuing resolutions to keep the government running
Personnel/Policy
at approximately the FY2017 funding level.
 More Military Personnel. The bill includes $222
million to expand the military to 1.32 million active-
H.R. 1625 conforms to the spending limits (or caps) on
duty personnel and 816,900 Guard and Reserve
defense and non-defense spending established by the
personnel, an increase of 20,300 from the enacted
Budget Control Act of 2011 (BCA; P.L. 112-25) and
FY2017 level and an increase of 9,500 from the
amended by the Bipartisan Budget Act of 2018 (BBA of
President’s request.
2018; P.L. 115-123).
 2.4% Military Pay Raise. The bill includes $206
DOD Appropriations
million to pay for the largest military pay raise since
Division C of H.R. 1625 is named the Department of
2010, a figure in keeping with private-sector wage
Defense Appropriations Act, 2018. It appropriates $647
growth as measured by the Department of Labor. Like
billion in discretionary funding for DOD, comprising $582
other civilian employees, DOD civilian employees are
billion in the base budget and $65 billion for the “Global
to receive a 1.9% raise.
War on Terrorism” (GWOT), also known as Overseas
 Funding Flexibility. The bill includes a one-year
Contingency Operations (OCO), according to the
change to the “80/20 rule” to allow DOD to spend up to
recapitulation in the explanatory statement accompanying
25% rather than 20% of its funding in the last two
the bill. Division D provides appropriations for defense-
months of the fiscal year and another one-year change to
related nuclear energy programs and Division J provides
let officials transfer (or reprogram) funding for certain
appropriations for military construction and family housing.
readiness-related programs without prior congressional
approval.
In Line with Revised Spending Cap
 Readiness Boost. In addition to the $188 billion in the
According to the Congressional Budget Office,
base budget for O&M, the bill includes most of the
discretionary base defense funding provided by Division C
GWOT/OCO appropriation ($50 billion) for O&M. The
of H.R. 1625 (i.e., excluding GWOT/OCO funding)
increase is designed in part to support “key readiness
combined with defense-related funding provided by other
programs.” A $1.3 billion increase from the President’s
parts of the bill and by other prior partial appropriations
request is earmarked for U.S. Pacific Command
would bring total FY2018 discretionary appropriations for
readiness alone.
national defense (budget function 050) to $629 billion—the
amount allowed by the revised discretionary spending cap
 Special Victims’ Counsel. The bill adds $35 million for
enacted in February under the Bipartisan Budget Act of
the Special Victims’ Counsel (SVC) within the Defense
2018. This figure excludes GWOT/OCO and emergency
Human Resources Agency, a program intended to
funding, which is not subject to the spending restrictions.
address the problem of military sexual assault.
(For more on the defense budget function, see CRS In
Focus IF10618, Defense Primer: The National Defense
Weapons Programs
Budget Function (050), by Christopher T. Mann. For more
 More F-35s. The bill includes $45 billion for aircraft
on the revised spending caps, see CRS Report R44874, The
procurement, $9.2 billion above the President’s request.
Budget Control Act: Frequently Asked Questions, by Grant
Nearly 30% of the increased amount, $2.6 billion, would
A. Driessen and Megan S. Lynch.)
go toward buying 20 F-35 aircraft over the 70 planes
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requested, bringing FY2018 Joint Strike Fighter
funding for amphibious and expeditionary vessels and to
procurement to $10 billion for 90 F-35s.
accelerate procurement of a Heavy Polar Icebreaker;
 Light Attack Experiment. The bill adds $100 million
 Ground Gear. The bill adds to the President’s request
for the Air Force’s light attack experimentation, an
$1.3 billion for National Guard and reserve unit
ongoing test of commercially available aircraft to
equipment, $2.0 billion to Army weapons and tracked
examine potential alternatives to the A-10 and other
vehicles procurement to improve the service’s ground
planes for close air support missions.
combat capability (including enhancements to the M1
 Expanded Missile Defense Field. The bill adds $393
Abrams tank and Stryker and Bradley combat vehicles)
million in research and development funding to
and $828 million for Army missile procurement,
accelerate the fielding of upgraded Ground-Based
including various types of long-range rocket artillery.
Interceptors at an expanded missile field in Alaska.


More Ship Funding. The bill includes nearly $24
billion for Navy shipbuilding programs, an increase of
$3.4 billion from the President’s request, with additional
Table 1. FY2018 Defense Appropriations Act (H.R. 1625, Division C)
(amounts in bil ions of nominal dol ars)
FY2017
Enacted
FY2018
House-passed
Senate
Final Bill
P.L. 115-31
Budget
H.R. 3219
Committee
H.R. 1625

Div. C
Request
Div. A
drafta
Div. C
Base Budget
Military Personnel
$128.7
$133.9
$133.0
$133.6
$133.4
Operation and Maintenance
$167.6
$188.6
$191.7
$192.6
$188.2
Procurement
$108.4
$113.9
$132.5
$126.7
$133.9
R&D
$72.3
$82.7
$82.7
$87.3
$88.3
Revolving and
$1.5
$2.1
$1.6
$1.7
$1.7
Management Funds
Defense Health Program
$35.6
$35.9
$36.1
$36.3
$36.6
and Other DOD
Related Agencies
$1.0
$1.0
$1.0
$1.1
$1.1
General Provisions
$-5.6
$0.1
-$2.0
-$0.7
$-0.9
Subtotal: Base Budget
$509.6
$558.2
$576.5
$578.8
$582.3
Overseas Contingency
$76.6
$65.1b
$73.9
$65.0
$65.2
Operations (OCO)
Grand Total
$586.2
$623.3
$650.4
$643.8
$647.4
Sources: H.Rept. 115-219, House Appropriations Committee, Report to accompany H.R. 3219, Department of Defense Appropriations Bil ,
2018; Draft FY2018 Defense Appropriations bil and accompanying report published Nov. 21, 2017 by the chairman of the Senate
Appropriations Committee, at https://www.appropriations.senate.gov/news/majority/fy2018-defense-appropriations-bil -released; and Joint
Explanatory Statement to accompany H.R. 1625, The Consolidated Appropriations Act of 2018, at https://rules.house.gov/bil /115/hr-1625-sa.
Notes:
a. The Senate Committee draft bil includes $4.5 bil ion that the Administration added to its FY2018 budget request on November 6, 2017,
after the House had passed its version of the FY2018 defense bil but before the Senate committee draft was published. The additional
funds, to beef up missile defense programs related to North Korea and to repair two Navy destroyers damaged in col isions, were
appropriated by P.L. 115-95, enacted on December 22, 2017.
b. The Administration’s FY2018 OCO budget request includes $1.2 bil ion that was added to the original FY2018 OCO request on
November 6, 2017. The additional funds are to support the Administration’s decision to increase the number of U.S. military personnel
who would be stationed in Afghanistan.

Brendan W. McGarry, Analyst in U.S. Defense Budget
Pat Towell, Specialist in U.S. Defense Policy and Budget

IF10868

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FY2018 Defense Appropriations Act: An Overview

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