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January 9, 2023
The Pacific Deterrence Initiative: A Budgetary Overview

The Pacific Deterrence Initiative (PDI) is a set of prioritized
defense investments and activities established by Congress
to enhance U.S. deterrence and defense, assure allies and
partners, and counter adversary threats in the Indo-Pacific
region in response to China's growing military power.
Background and Establishrment
Section 1251 of the William M. (Mac) Thornberry FY2021
National Defense Authorization Act (NDAA; P.L. 116-283)
created PDI to carry out activities in support of U.S.
strategic goals in the Indo-Pacific. In the Senate Armed
Services Committee report (S.Rept. 116-236)
accompanying the FY2021 NDAA, PDI is described both
as a means to focus resources on capability gaps and
enhance budgetary transparency and oversight by
requiring the Department of Defense (DOD) to provide a
detailed and region-specific account of spending and
programs. PDI is modeled on a similarly geographic-based
effort known as the European Deterrence Initiative (EDI),
which was established in 2014 to deter Russian military
aggression in Eastern Europe and assure U.S. allies in the
region.
PDI is not a separate fund to resource DOD activities.
Rather, it represents an attempt to highlight DOD efforts
that accomplish the congressionally directed goals of the
initiative. It means that, although DOD submits a separate
budget request for PDI activities, funding is provided as a
subset of the DOD budget, rather than through separate
appropriations.
FY2022 Funding
 Prednf Budget Request
The FY2022 President's budget requested $5.1 billion for
PDI. This submission encompassed more than 30 line items
within existing defense appropriations accounts, organized
into DOD-defined activity categories:
 Force Design and Posture. Design a force capable of
protecting the interests of U.S. allies and deterring
and/or prevailing in conflict ($23 million);
 Exercises, Experimentation, and Innovation. Improve
readiness and effectiveness and develop new ways to
operate ($150 million);
 Joint Force Lethality. Ensure the United States can
deter and defeat threats in the Indo-Pacific ($4.9
billion);
 Strengthen Alliances and Partnerships. Enhance
interoperability and partners' abilities to defend against
aggression (less than $1 million).
The majority of PDI spending identified in the DOD
request was dedicated to weapons systems, including $2
billion for a DDG-51 Aegis destroyer, $744 million for a

T-AO fleet oiler, and $439 million for F-35 fighter aircraft
upgrades.
Authorized and Appropriated Activities
In the enacted FY2022 NDAA (P.L. 117-81), Congress
authorized $7.1 billion for PDI activities and substantially
altered the categories and allocation of spending from the
budget request. In its explanatory statement accompanying
the NDAA, the House Armed Services Committee
reiterated its support for PDI, but criticized DOD for its
emphasis on weapons systems:
We note that the PDI budget request for fiscal year
2022 was improperly focused on platforms,
including the DDG-51, T-AO fleet oiler, and F-35,
as opposed to improving the joint posture and
enabling  capabilities  necessary  to  enhance
deterrence in the Indo-Pacific region. Therefore, we
identified approximately $7.1 billion in investments
that support and attempt to improve the current
posture, capabilities, and activities of U.S. forces in
the Indo-Pacific region ... that more accurately
reflect a baseline from which to measure progress
against the objectives of the PDI.
Congress also identified and authorized a different set of
investments across the following activity categories:
 Modernize and Strengthen Presence ($4.1 billion);
 Exercises, Training, Experimentation ($696 million);
 Infrastructure Improvements ($1.5 billion);
 Logistics and Prepositioning of Equipment ($360
million); and
 Defense and Security Capabilities of Allies and Partners
($489 million).
In addition, Section 1242 of the FY2022 NDAA required
the Commander of U.S. Indo-Pacific Command
(INDOPACOM) to submit to Congress an independent
assessment of PDI resources, force posture, and other
capabilities necessary to implement the National Defense
Strategy in the Indo-Pacific region for each fiscal year over
a five-year period through FY2027. INDOPACOM
completed this assessment in March 2022, identifying $9.1
billion in FY2023 PDI activities.
Neither the DOD Appropriations Act, 2022 (P.L. 117-103)
nor the Military Construction, Veterans Affairs, and
Related Agencies Act, 2022 (P.L. 117-103) mention the
Pacific Deterrence Initiative. The report accompanying the
DOD bill (H.Rept. 117-81) recommended $15 million for
planning and design of military construction projects for
PDI in INDOPACOM. Given the absence of dedicated PDI
appropriations and the lack of geographical identification in
DOD budget documentation, the extent to which authorized
FY2022 PDI activities received appropriations is unclear.

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