On August 10, the Department of Defense kicked off a defense-wide zero-based review. This brief explains what the review entails, which defense-wide organizations are subject to it, and previous efforts at driving efficiencies in the “Fourth Estate.”
The Trump administration is not requesting that Congress raise the budget caps at all, either for defense or non-defense. Instead, the administration is asking Congress to use a loophole in the law to allow for higher defense spending without breaching the budget caps: overseas contingency operations (OCO) funding.
Expectations have been building for the FY 2020 defense budget request, a budget that acting secretary of defense Shanahan has called the “masterpiece.” As the Office of Management and Budget (OMB) works on finalizing the request, experts from the CSIS International Security Program outline what to look for in the FY 2020 defense budget.
It’s time we ditch the two percent (or any percent) of GDP metric for allied defense spending and focus on what really matters—capability, capacity, readiness, and interoperability. In the end, it’s not about how much of our allies’ economic output is directed to defense, and this metric does little to incentivize the results we want to see.
The OCO budget has been taken advantage of to skirt defense spending limits and to fund base budget activities that do not actually constitute war funding. However, moving all of OCO’s enduring costs into the base budget for the final two years of the Budget Control Act caps may not be politically expedient for passing a budget agreement for FY 2020 and FY 2021.
The National Defense Strategy calls for “modernization of key capabilities through sustained, predictable budgets,” yet the unclassified summary and FY 2019 budget request fail to show how the Department of Defense will fund such a priority in the face of long-term, strategic competition with China and Russia.