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             Coresoa Resarc Service


                                                                                      Updated December  19, 2018

Defense Primer: Budgeting for National and Defense

Intelligence


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

The   NIP   and   MIP

National  Intelligence Program   (NIP)
The origins of the intelligence budget, separate and distinct
from the defense budget, date back to reforms initiated in
the 1970s to improve oversight and accountability of the IC.
At that time, the National Foreign 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). The term
NIP was created by the Intelligence Reform and
Terrorism Prevention Act (IRTPA) of 2004 (P.L. 108-458
§ 1074). The IRTPA deleted Foreign from NFIP and
created the position of DNI. The DNI was given greater
budgetary authority over the NIP than the DCI had in
conjunction with the NFIP. Intelligence Community
Directive (ICD) 104 provides overall policy to include a
description of the DNI's roles and responsibilities as
program executive of the NIP.

Military Intelligence Program   (MIP)
Military-specific tactical and/or operational intelligence
activities were not included in the NFIP. They were referred
to as Tactical Intelligence and Related Activities (TIARA)
and were managed  separately by the Secretary of Defense.
TIARA   referred to the intelligence activities of a single
service that were considered organic (meaning to
belong to) military units. In 1994, a new category was
created called the Joint Military Intelligence Program
(JMIP) for defense-wide intelligence programs. A DOD
memorandum   signed by the Secretary of Defense in 2005
merged TIARA   and JMIP to create the MIP. DOD
Directive 5205.12, signed in November 2008, established
policies and assigned responsibilities, to include the
USD(I)'s role as program executive of the MIP, acting on
behalf of the Secretary of Defense.


The IC has established organizing principles it calls Rules
of the Road to loosely explain the programs' different but
related structures. A program is primarily NIP if it funds an
activity that supports more than one department or agency
(such as satellite imagery), or provides a service of common
concern for the IC (such as secure communications). The
NIP funds the CIA and the strategic-level intelligence
activities associated with the National Security Agency,
Defense Intelligence Agency and National Geospatial-
Intelligence Agency.

A program is 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 of NIP systems. The DNI and USD(I)
work together in a number of ways to facilitate the
seamless integration of NIP and MIP intelligence efforts.
Mutually beneficial programs may receive both NIP and
MIP  resources.

NIP  and MIP  Spending
At the present time only the NIP topline figure must be
publicly disclosed based on a directive in 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.
The Secretary of Defense also discloses annual MIP
appropriations figures back to 2007. For Fiscal Year (FY)
2017, the aggregate appropriated for the NIP and MIP
totaled $73B (NIP $54.6B, MIP $18.4B). For FY2018, the
aggregate amount appropriated for the NIP and MIP totaled
$81.5B (NIP $59.4B, MIP $22.1B). For FY2019, the
aggregate amount requested for the NIP and MIP totals
$81.1 (NIP $59.9B, MIP $21.2B).

Two Budget Processes: IPPBE                 PPBE
The IC's Intelligence Planning, Programming, Budgeting
and Evaluation (IPPBE) process allocates funding and
personnel resources supporting IC-wide capabilities
through the development and execution of the NIP and its
associated budget. The NIP addresses priorities described in
national security-related documents such as the National
Intelligence Strategy. The IPPBE process applies to all 17
components  of the IC. Program managers control NIP
resources aligned with requirements for IC capabilities such
as cryptology, reconnaissance, and signals collection-
capabilities that may span several IC components.

The DOD's  Planning, Programming, Budgeting and
Execution (PPBE) process provides the funding the service
components  and DOD  intelligence agencies (DIA, NSA,
NRO,  and NGA)  require to organize, train and equip
military forces for combat, and to cover all necessary


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