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                                                                                    Updated December  30,2020
Defense Primer: Budgeting for National and Defense

Intelligence


Introduction
Intelligence Community (IC) programs include the
resources (money and manpower) to accomplish IC goals
and responsibilities as defmedby the U.S. Code and
Executive Order 12333. IC programs are funded through
the: (1) NationalIntelligence Program(NIP), which covers
the programs, projects, and activities of the IC oriented
toward the strategic requirements ofpolicymakers, and (2)
Military Intelligence Program(MIP), which funds defense
intelligence activities intended to support tactical military
requirements and operations. The Director of National
Intelligence (DNI) and the Under Secretary of Defense for
Intelligence and Security (USD(I&S)) manage the NIP and
MIP, respectively, under different authorities.

NIP   and   MIP  Spending
At the present time, only the NIP topline figure must be
publicly disclosed based on a directivein statute. The DNI
is not required to disclose any other information concerning
the NIP budget, whether the information concerns particular
intelligence agencies or particular intelligence programs.
Althoughnot  statutorily required to do so, the Secretary of
Defense also discloses annual MIP appropriations figures
backto 2007. For FiscalYear (FY) 2019, funding
appropriated for the NIP and MIP totaled $81.7 billion (NIP
$60.2 billion, MIP $21.5 billion). ForFY2020, funding
appropriated for the NIP and MIP totaled $85.8 billion (NIP
$62.7 billion, MIP $23.1 billion). The aggregate NIP/MIP
figurerequestedforFY2021  is $85.0 billion (NIP $61.9
billion, MIP $23.1 billion).

Background

National  Intelligence Program  (NIP)
The origins of the intelligence budget, separate anddistinct
from the defense budget, date to reforms initiatedin the
1970s to improve oversightand accountability of the IC. At
that time, the NationalForeign Intelligence Program(NFIP)
was managed  by the Director of Central Intelligence (DCI),
in consultation with the Secretary of Defense, and overseen
by the National Security Council(NSC). Congress
redesignated the NFIP as the NIP in the Intelligence
Reform and TerrorismPrevention Act (IRTPA) of2004
(P.L. 108-458 § 1074). The IRTPA also provided for a
number of additional IC reforms , including the po sition of
DNI. The DNI was given more budgetary authority over the
NIP than the DCIhad over the NFIP. Intelligence
Community  Directive (ICD) 104 provides overall policy to
include a des cription ofthe DNI's roles andresponsibilities
as programexecutive of the NIP.


Military Intelligence Program  (NIP)
Military -specific tactical and/or operational intelligence
activities were not included in the NFIP. They were known
as Tactical Intelligence and Related Activities (TIARA) and
managed  separately by the Secretary of Defense. TIARA
referred to the intelligence activities ofa single service
that were considered organic to military units. In 1994,
Congress created a new category called the JointMilitary
Intelligence Program(JMIP) for defense -wide intelligence
programs. In 2005, the Secretary of Defense signed a
memorandumthat   merged TIARA  and JMIP to formthe
MIP. DOD  Directive 5205.12, signed in November 2008,
established policies and assigned responsibilities, to include
the USD(I&S)'s role as programexecutive ofthe MIP,
acting on behalf of the Secretary of Defense.

The IC established organizing principles called Rules of
the Road to loosely explain the two budget programs'
different but related structures. A programis primarily NIP
if it funds an activity that supports more than one
departmentor agency (such as satellite imagery), or
provides a service of common concern for the IC (such as
secure communications). The NIP funds the Central
Intelligence Agency (CIA) and the strategic intelligence
activities as sociated with the National Security Agency
(NSA), Defense Intelligence Agency (DIA) and National
Geospatial-Intelligence Agency (NGA).

A programis primarily MIP if it funds an activity that
addresses a unique DOD requirement. Additionally, MIP
funds may be used to sustain, enhance, or increase
capacity/capability ofNIP systems. The DNI and
USD(I&S)  work together in a number of ways to facilitate
the integration of NIP and MIP intelligence efforts.
Mutually beneficialprograms may receive both NIP and
MIP resources.

Two Budget Processes: IPPBE & PPBE
The IC's Intelligence Planning, Programming, Budgeting
and Evaluation (IPPBE) process allocates funding and
personnelresources supporting IC-wide capabilities
through the development and executionofthe NIP and its
as sociated budget. TheNIP addresses priorities describedin
nationals ecurity-related documents such as the National
Intelligence Strategy. The IPPBEprocess applies to all 17
components  of theIC (IC elements are specified by 50
U.S.C. § 3003(4)). Programmanagers control NIP resources
aligned with requirements for IC capabilities such as
geospatial intelligence, signals intelligence, andhuman
intelligence-capabilities that may span several IC
components.


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