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  • Author: Jeremy Konyndyk
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: The FY 2020 budget request released by the White House last month contained a sweeping proposal to rationalize and streamline US government humanitarian assistance programs overseas. The proposal would merge the three humanitarian budget accounts (International Disaster Assistance, Migration and Refugee Assistance, and Food For Peace Title II); strip programming responsibilities from the State Department’s refugee bureau and consolidate them entirely in a new humanitarian bureau at USAID; and establish a vaguely described “dual hat” senior leader role to oversee humanitarian activities at both USAID and the State Department. The proposed changes would be the most significant overhaul of USG humanitarian structures in decades. The proposal in its current form is unlikely to get much traction in Congress, where it is seen on both sides of the aisle as dramatically weakening US leadership on refugees. In light of other moves by the administration—like slashing refugee resettlement numbers and treating asylum seekers roughly—that is a legitimate and vital concern. There is ample reason to approach the proposal with caution, particularly the idea of stripping away the refugee bureau’s resources.
  • Topic: Foreign Aid, Budget, Refugees, Humanitarian Crisis
  • Political Geography: United States, North America
  • Author: Deborah A. McCarthy
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: The US Department of Defense is playing a predominant role in US foreign policy due to expanded mandates, large budgets and the disparagement of diplomacy by the Trump Administration. Defense relations may be the steadier foundation for transatlantic cooperation.
  • Topic: Foreign Policy, Defense Policy, Diplomacy, International Cooperation, Military Strategy, Budget, Transatlantic Relations
  • Political Geography: United States, Europe, North America
  • Author: Rhys McCormick, Andrew Philip Hunter, Gregory Sanders
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The presence of a technologically superior defense industrial base has been a foundation of U.S. strategy since 1945. While the implementation of the budget cuts in the Budget Control Act of 2011 has caused concerns for the industrial base, the resulting debate has been lacking in empirical analysis. The purpose of this research is to measure the impact of the current defense drawdown across all the tiers of the industrial base. This report analyzes prime and subprime Defense Department contract data to measure the impacts of the drawdown by sector to better understand how prime and subprime contractors have responded to this external market shock.
  • Topic: Science and Technology, Military Strategy, Budget, Defense Industry
  • Political Geography: United States
  • Author: Tom Karako, Wes Rumbaugh
  • Publication Date: 02-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: President Trump’s 2019 budget request includes $12.9 billion for missile defense programs, including $9.9 billion for the Missile Defense Agency and about $3 billion in modernization in the military services, building upon the acceleration initiated in the $323 million FY 2017 Above Threshold Reprogramming and the FY 2018 Budget Amendment of $2.0 billion. The proposed budget continues the recent trend of procurement consuming a greater portion of overall missile defense spending, reflecting a choice for prioritizing near-term capacity over longer-term capability. With the exception of two new Pacific radars and a modest effort for tracking hypersonic threats, the request includes strikingly few changes to the program of record. The submission fails to address past shortfalls for more research and development of new missile defense technologies and capabilities, most significantly with its lack of real movement toward a space-based sensor layer for tracking and discrimination, as opposed to merely missile warning. Pursuit of more advanced capabilities will require substantial programmatic changes in the 2020 budget, or with a budget amendment later this year, if such capabilities are recommended by the forthcoming Missile Defense Review. On February 12, the Department of Defense (DoD) released its budget request for FY 2019, which included a total of $12.9 billion for missile defense-related activities. The proposed topline for the Missile Defense Agency comes in at $9.9 billion, comprising $2.4 billion for procurement, $6.8 billion for research, development, test, and evaluation (RDT&E), $500 million for operations and maintenance (O&M), and $206 million for military construction (MILCON). The $9.9 billion request is a 26 percent increase from the FY 2018 budget request of $7.9 billion. Funding for ballistic missile defense within the services includes about $3 billion, largely for the procurement of Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) and Standard Missile-6 (SM-6) interceptors. Overall, the budget reflects a near-term focus on capacity of existing programs, even at the expense of capability improvements. In its current form, the request boosts funding for all four families of interceptors. For homeland missile defense, this includes the continued improvements to the capacity and reliability of the Ground-based Midcourse Defense (GMD) system by continuing to deploy an additional 20 interceptors, several testing spares, and a new missile field at Fort Greely, Alaska. The request also deepens the magazines for Terminal High Altitude Area Defense (THAAD), Aegis, and Patriot interceptors, continuing a procurement-heavy trend from last year.1 The focus on capacity does not answer the question, however, how missile defense efforts will be adapted to the new reality of great power competition described by the National Security Strategy and the National Defense Strategy.2 One of the few new muscle movements in the entire budget is the addition of two radars in the Pacific for discriminating long-range missile threats to the homeland. The idea of a discrimination radar for Hawaii had been publicly floated over the past two years, and had previously been part of the yet-unpassed appropriations marks from the House and Senate appropriations committees. The Hawaii radar is scheduled for a 2023 deployment, with an additional radar deployed by 2024 at a yet-undisclosed location. The two radars will cost approximately $2.5 billion over the course of the Future Years Defense Program (FYDP). The inadequacy of the request lies not with the top line, but rather with the capabilities and strategy that the top line fails to prioritize. Although these radars would be useful to close the near-term Pacific midcourse gap against limited ballistic missile threats to the homeland, such funds must be weighed against the opportunity cost for larger improvements in capability provided by a space-based sensor layer that could provide substantially more capable birth-to-death tracking and discrimination on a more global scale and against a wider diversity of threats. The choice for capacity over capability reflects a near-term time horizon, but further delay in more advanced technologies will carry costs at a later time. In sum, the administration’s budget request for FY 2019 prioritizes near-term readiness against limited but growing ballistic missile threats from sources such as North Korea. This choice, however, falls short of connecting missile defense efforts to the reality of renewed great power competition as articulated in the National Defense Strategy. The inadequacy of the request lies not with the top line, but rather with the capabilities and strategy that the top line fails to prioritize. The 2019 request’s modesty of ambition is manifested by low funding for more advanced programs, such as boost-phase intercept, space-based sensors, and volume kill. Should the forthcoming Missile Defense Review address some of these issues and recommend programmatic changes, their implementation may have to wait until the 2020 budget, unless a budget amendment of some kind prioritizes them for the coming fiscal year.
  • Topic: Security, Defense Policy, Military Strategy, Budget, Missile Defense
  • Political Geography: United States, Europe, Asia, North America
  • Author: Anthony H. Cordesman
  • Publication Date: 08-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The report draws on a wide range of official sources and is designed to provide an overview of official reporting on major trends rather than make an independent analysis. The U.S. provides a vast amount of detail on its annual budget request for military and international affairs spending – much of it in graphic, tabular, and summary form. The material presented here is an attempt to pick the key materials to show where the U.S. is focusing its military spending, how it relates to its strategy, how major force improvements will affect U.S. capabilities, and how the U.S. is dealing with its strategic partners and potential threats. However, the user should be aware that much of the material presented is often uncertain and is not comparable from source to source. There also is no easy or single way to summarize the trends in the U.S. defense budget. The materials that go into just the unclassified portions of the Department of Defense’s annual submission of President’s budget request to Congress, and the subsequent Congressional review of that request, run well over several thousand pages. It is also critical for the reader to understand that only the portion of the report dealing with the National Defense Authorization Act (pages 24-43) represents the final result of Congressional action and the FY2019 budget signed by the President, and not all of the portions of reference action by the key Committees involved were approved in exactly the form shown in the final bill signed by the President. Much of the material is drawn from sources that precede the final Congressional markup because the Department never updates most of the tables and charts in the Department of Defense request until the following year and new budget submission. The material presented also shows that different sources define total defense spending in different ways, and include different expenditures and convert current to constant dollars in different ways. More importantly, most sources report in terms of “Budget Authority” (BA) – the total money the Congress authorizes in a given Fiscal Year that can be spent over a period of years. This is the best estimate of what the Congress is actually approving. However, some sources in terms of “Budget Outlays” (BO) – only the money that can be spent in 12-month period of that U.S. Fiscal Year. (Which begins on 1 October of the year the Congress acts upon, and ends on 30 September of the following year). This is the best way of assessing the impact of spending on how well the budget is balanced, the size of the deficit, and impact on the federal debt. Budget projections for future years present other problems. The Congressional Budget Office (CBO) provides detailed estimates of how the President’s budget request – and the final budgets the Congress authorizes – will impact over time. Many such estimates precede Congressional action on the budget, and it then takes several months for the CBO to estimate the probable future trends in the total federal budget and impact of the final Congressionally approved levels of U.S. defense spending on that total federal budget and the U.S. GDP. This often creates major lags in official estimates of the trends in every aspect of federal spending, the budget deficit, and the national debt. More broadly, the Department of Defense has effectively abandoned any serious effort to create a program budget, and to provide a realistic estimate of the cost of the Future Year Defense Program beyond the fiscal year directly under review. It essentially rolls forward current activities and plans to make estimates of the next four years that are based on the spending levels in the budget year under review. It bases such estimates largely on input categories such as personnel, O&M, RDT&E, and procurement. The Department of Defense does not report expenditures by major mission or command. The Department defines “strategy” largely in terms of broad concepts and goals. It does not tie its “strategy” to net assessments of the balance in terms of threats and strategic partners, to specific force plans, to specific actions and schedules, to specific costs, or to measures of success and effectiveness. Unclassified reporting in “PPB” – or planning, programming, and budgeting– form has become a functional oxymoron. The Congress does hold strategy hearings and directs studies of key strategic issues, but these efforts rarely address any of the practical details of any aspect of the nature and cost of U.S. strategy. Similarly, the outyear estimates of military spending by the Department of Defense, OMB, and the Congressional Budget Office (CBO) focus on a “baseline” that assumes the United States does not actually use its military forces in any operational form. The limited estimates provided for future Overseas Contingency Operations are “placeholders” and not actual estimates. This is partly inevitable given the inability to predict the future, but it creates a practical problem in a country whose civil plans call for major future increases in mandatory spending on retirement, medical case, and welfare. This means the official U.S. projections of civil spending rise relative to military spending in ways history indicates will be highly unrealistic.
  • Topic: Defense Policy, Military Strategy, Military Affairs, Budget
  • Political Geography: United States, Europe, Middle East, North America