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Congressional Research Service
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December 5, 2016


Defense Primer: Budgeting for National and Defense

Intelligence


Introduction
Intelligence Community (IC) programs provide the
resources (money and manpower) considered necessary to
accomplish IC goals, directions, duties and responsibilities
as defined by U.S. Code and Executive Order 12333. IC
programs are grouped, for the most part, under two labels:
(1) the National Intelligence Program (NIP), which covers
the programs, projects, and activities of the IC oriented
towards the strategic needs of decision-makers, and (2) the
Military Intelligence Program (MIP), which funds defense
intelligence activities intended to support tactical military
operations and priorities. The NIP and MIP are managed
and overseen separately, by the Director of National
Intelligence (DNI) and Under Secretary of Defense for
Intelligence (USD(I)), respectively, under different
authorities.

The NIP and MIP

National Intelligence Program (NIP)
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 also
created the position of DNI. The DNI was given greater
budgetary authorities in conjunction with 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 what falls where. 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. In
2010, the Secretary of Defense began disclosing MIP
appropriations figures on an annual basis and in 2011
disclosed those figures back to 2007. These actions have
provided public access to previously classified budget
numbers for national and military intelligence activities. In
Fiscal Year (FY) 2016, the aggregate amount (base and
supplemental) appropriated totaled $70.7 billion-NIP
$53B, MIP $17.7B.

Two Budget Processes: IPPBE & PPBE
The IC's Intelligence Planning, Programming, Budgeting
and Evaluation (IPPBE) is a resource allocation process
designed to fund IC-wide capabilities-such as
reconnaissance, surveillance and geospatial intelligence-
through the development and execution of the National
Intelligence Program and budget. The NIP addresses
priorities described in national security-related strategy
documents (such as the National Intelligence Strategy).
IPPBE guidance is applicable to all 17 components of the
IC. NIP resources (manpower and dollars) are managed by
Program Managers who exercise daily control over
resources associated with 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 need to organize, train and equip military


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