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                                                                                         Updated  March 29, 2024

Defense Primer: Defense and Intelligence Unfunded Priorities


Introduction
By law, certain U.S. Department of Defense (DOD)
officials and other executive branch agency officials are
required to submit reports to Congress describing defense
and intelligence-related priorities that were not included in
the President's annual budget request. These reports, known
as unfunded priorities lists (UPLs), identify certain
programs, activities, or mission requirements for which
appropriations were not requested, along with the funding
amounts that may be necessary to resource them. Pursuant
to 10 U.S.C. §222a, the highest-ranking officers of the U.S.
military services and combatant commands (COCOMs)  are
to submit UPLs (also sometimes referred to as unfunded
requirements, or UFRs) to the Secretary of Defense,
Chairman  of the Joint Chiefs of Staff, and congressional
defense committees. Some Members  have described DOD
unfunded priorities as wish lists that reduce budget
discipline and increase unnecessary spending. Others have
described them as risk lists that identify items intended to
support strategic objectives. With the value of such items
sometimes totaling tens of billions of dollars a year (e.g.,
DOD   alone identified nearly $24 billion in FY2022 UPLs),
Congress often debates authorization and appropriation of
funding for certain unfunded priorities.

Background
For decades, reports accompanying defense authorization
and appropriation legislation have sometimes referenced
unfunded requirements of the military. For instance, the
conference report (H.Rept. 97-749) to accompany the
National Defense Authorization Act for FY1983 (NDAA;
P.L. 97-252) authorized appropriations within the Operation
and Maintenance, Air National Guard accounts for certain
unfunded requirements (i.e., cold weather gear and
chemical defense equipment). By the mid-1990s, according
to some accounts, the services routinely submitted lists of
unfunded priorities to Congress. In the 2000s, conference
reports accompanying defense authorization and
appropriation legislation sometimes referenced the
unfunded priority list of DOD or a military service, or the
unfunded requirements list of a military service. In 2009,
in preparation of the FY2010 President's budget request to
Congress, then-Secretary of Defense Robert M. Gates
limited access to information about proposals to decrease
funding for certain defense programs-a move that he
acknowledged  generated congressional concerns over
transparency into the department's budget development
process. In 2021, then-Chairman of the Joint Chiefs of Staff
General Mark A. Milley said unfunded priorities lists
provide a flexibility option for lawmakers. In 2023,
Secretary of Defense Lloyd J. Austin III said he would
support removing statutory requirements for UPLs.


Selected Legislation
FY2013  NDAA.   Section 1003 of P.L. 112-239 included a
provision expressing the sense of Congress that certain
military officers should submit to Congress, through the
Chairman  of the Joint Chiefs of Staff (CJCS) and the
Secretary of Defense (SECDEF), a list of any priority
military programs or activities under the jurisdiction of such
officer for which, in the estimate of such officer additional
funds, if available, would substantially reduce operational
or programmatic risk or accelerate the creation or fielding
of a critical military capability.
FY2017  NDAA.   Section 1064 of P.L. 114-328 established
the statutory requirement of 10 U.S.C. §222a for annual
reports on unfunded priorities of the services and
COCOMs.   In particular, the statute requires the service
chiefs and combatant commanders to submit within 10 days
of the President's budget request to Congress a report on
the unfunded priorities of the service or command under
their jurisdiction. The statute requires the officers to submit
the documents to the SECDEF, CJCS, and congressional
defense committees (i.e., the House and Senate Committees
on Armed  Services and Appropriations). The reports are to
include items in order of priority and such information as
the line item number in procurement accounts, program
element number in research and development accounts, and
the sub-activity group in operation and maintenance
accounts. The statute defines an unfunded priority, in part,
as a program, activity, or mission requirement that is not
funded in the budget of the President and is necessary to
fulfill a requirement associated with an operational or
contingency plan of a combatant command or other
validated requirement. Section 1696 of the act established
a similar statutory requirement (10 U.S.C. §222b) for an
annual report on unfunded priorities of the Missile Defense
Agency  (MDA).
FY2021  NDAA.   Sections 924 and 1006 of P.L. 116-283
amended  10 U.S.C. §222a to include among the officers
required to submit reports on unfunded priorities the Chief
of Space Operations and the Chief of the National Guard
Bureau, respectively. Section 1005 established the statutory
requirement of 10 U.S.C. §240i for the DOD Comptroller to
submit a report on unfunded priorities related to audit
readiness and remediation. Section 1867 renumbered the
statutory requirement for the Under Secretary of Defense
for Acquisition and Sustainment to submit a report on
unfunded priorities of the national technology and industrial
base to 10 U.S.C. §4815.

Selected Permanent Laws
Table 1 lists statutory provisions requiring components of
DOD,  the intelligence community, and other agencies to
submit UPLs, under varying terms.

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