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                                                                                         Updated June 16,2020
The European Deterrence Initiative: A Budgetary Overview


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The European Deterrence Initiative (EDI) is a Department
o fDefens e (DOD) effort to enhance the U.S. deterrence
posture, increase the readiness andresponsiveness of U.S.
forces in Europe, support the collective defense and
security of NATO allies, and bolster the security and
capacity ofU.S. allies and partners,according to the DOD
European Deterrence Initiative Fact Sheet.
EDI began as the European Reassurance Initiative (ERI) in
June 2014. The Obama Administration launchedit
primarily as an effort to reassure U.S. allies in Europe of a
continued U.S. commitment to their security in the wake of
Russia's 2014 invasionandoccupation ofUkraine's Crimea
region and instigation of conflict in eastern Ukraine. As
tensions with Russia mounted, thefocus of the program
broadened fromreas suring allies to deterring Russian
aggression. DOD beg an referring to the programas ED in
2018.

Today, EDT is a key funding source for U.S. European
Command's (EUCOM) posture adjustments in responseto
the evolving European security environment. EDI has
enabled thefirst increase in U.S. military forces in Europe
since the endofthe Cold War. This includes the rotational
deployment of an Armored Brigade Combat Team (BCr),
mostly in Central and Eastern Europe. Two BCTs, one
Stryker-equipped and one airborne infantry, are
permanently stationed in Europe-in Germany and Italy,
respectively. A prominent objective ofEDI has been to
enable rapid military mobilization to Central and Eastern
Europe in order to respond quickly to military aggression in
the region.
EDI began in FY2015 with $985 million in funding.
Between FY2016 and FY2019, Congress authorized
significant annualincreases in EDI funding as requested.
Funding for the effort peaked at $6.5 billion in FY2019 and
was $5.91 billion in FY2020.

Some Members of Congress have raised questions about
reduced funding levels requestedby the Administration for
FY2021. Press reports in June2020 stated that the
Administration is considering withdrawing 9,500 of the
approximately 35,000 U.S. troops stationed in Germany
have heightened concerns in Congress about the
Administration's commitment to EDI and to European
security more broadly. Other congressional voices have
urged European allies to increase military investments to
augment EDI and related NATO deterrence efforts.


EDI funding is designated as Overseas Contingency
Operations (OCO) funding. Figure 1 outlines annual
funding levels. The FY2021 requestis 25% less than the
amount appropriated in FY2020, and, if enacted, would


represent the second consecutive year ofreduced funding
for EDI.
DOD officials contend that the Administration remains
committed to EDI and suggest that lower funding requests
are due primarily to the completion of multi-year
infras tructureprojects. Critics, including some Members of
Congress, have questioned therationale behind the
A dministration's deferral ofEDI projects-totaling $772
million in 2019 and $316 million in 2020-to fund the
U.S.-Mexico border wall, and the aforementionedreported
plan to withdraw U.S. troops fromGermany.
The FY2021 EDI budget request would support an average
strength of9,904 active, reserve, and guard personnel in
EUCOM. These include 9,095 Army, 459 Air Force, and
350 Navy personnelparticipating in EDI activities in
Europe. As of February 2020, about 74,000 U.S. personnel
were permanently stationed in Europe.
Figure I. EDI Budget FY201 5-FY202 I
(In billions of dollars)
                               ..............








   FY20OIS FY20OIG FY20OI7 FY20JIS FY201I9 FY2OZO FY2O2I
                                      Enact  Req.
Source: Under Secretary of Defense (Comptroller).

Since its inception, EDT has divided its funding into five
categories. Figure 2 shows the funding trends of each
category. The following are descriptions and selected
highlights based on the FY2021 EDT budget request.
Enhanced Prepositioning ($2.34 billion in FY2020, $1.94
billion requested in FY2021) is the largest funding categoiy
and supports the prepositioning of equiplmnt and material
to allow military forces to increase readiness and rapidly
deploy if needed.
  SThe largest component of Enhanced Prepositioning is
  the Army PrepositionedS tocks ($452.8 million),
  which stores large sets ofequiplmntto reduce the
  demand on strategic transportation assets in the event of
  a conflict. APS locations currently exist in Belgium,
  Germany, Poland, and the Netherlands.
hncreasedPresence ($2.05 billion in FY2020, $1.45 billion
reques ted in FY2021) provides EUCOM with a larger
military presence that is capable of deterring and
responding to regional adversaries.


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