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1 Long-Term Costs of the Administration's 2022 Defense Budget 1 (January 11, 2022)

handle is hein.congrec/lgtmcsotea0001 and id is 1 raw text is: his report describes the Congressional Budget Office's analysis of the costs and budgetary consequences through 2031 of current plans for the Department of Defense (DoD). Ordinarily, CBO would have based its projections of long-term costs on DoD's 2022 Future Years Defense Program (FYDP), which would have covered fiscal years 2022 to 2026. However, as is common when a new Administration submits its first budget request, DoD did not release a 2022 FYDP. Therefore, the report draws from the fis- cal year 2022 budget request submitted by the Biden Administration, other documents and statements pub- lished by the Administration, and the 2021 FYDP (the most recent five-year plan released by DoD). The Administration's 2022 budget request calls for $715 billion in funding for DoD. In real terms-that is, with adjustments to remove the effects of inflation-the funding request is 1.5 percent less than the total amount provided for 2021 and 1.0 percent less than the amount that would have been requested for 2022 under the Trump Administration's final (2021) FYDP.1 Almost two-thirds of the request is for operation and support ($292 billion for operation and maintenance and $167 billion for military personnel), and about one-third is for acquisition ($134 billion for procurement and $112 billion for research, development, test, and evaluation). The remaining $9.8 billion is for infrastructure ($8.4 bil- lion for military construction and $1.4 billion for family housing). 1. To remove the effects of inflation, CBO used the gross domestic product price index from the Bureau of Economic Analysis. Dollar amounts are expressed in 2022 dollars. For the years after 2022, CBO projects that DoD's costs would steadily increase so that, in 2031, the department's budget (in 2022 dollars) would reach $787 billion, about 10 percent more than the amount proposed in the 2022 budget (see Figure 1). Several factors would contrib- ute to those rising costs, including the following: - Continued growth in the costs of compensation for service members and DoD's civilian employees, which would account for 24 percent of the increase; - Continued growth in other costs to operate and maintain the force, which would account for 35 percent; and Increased spending on new, advanced military equipment and weapons (largely as a result of DoD's shift in focus from counterinsurgency operations to potential conflicts with technologically advanced militaries), which would account for 39 percent. Although the Administration's request for 2022 is about $7 billion less than the amount that was planned for 2022 in the 2021 FYDP, the cumulative costs through 2031 under the projections presented here would be about the same as the costs CBO had projected for the 2022-2031 period in its analysis of that earlier FYDP.2 In a departure from its practice for more than a decade, DoD did not split its 2022 request into two components: a base budget and funding for overseas contingency operations (OCO). The base budget was intended to fund normal, peacetime operations and other activities anticipated during the regular budgeting process, and 2. See Congressional Budget Office, Long-Term Implications of the 2021 Future Years Defense Program (September 2020), www.cbo.gov/publication/56526. Notes: Unless this report indicates otherwise, all years referred to are federal fiscal years, which run from October 1 to September 30 and are designated by the calendar year in which they end. Numbers in the text, figures, and tables may not add up to totals because of rounding. Previous editions of this report, which CBO publishes annually, are available at https://go.usa.gov/xEnE6.

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