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May 8, 2024

FY2025 Budget Request for the Military Health System

On March 11, 2024, President Joseph R. Biden submitted
his Fiscal Year (FY) 2025 budget request to Congress.
Discretionary funding in the Department of Defense (DOD)
budget request totals $849.8 billion, including $61.4 billion
(7.2%) to fund the Military Health System (MHS), which
delivers certain health entitlements under Title 10, Chapter
55, of the U.S. Code, to servicemembers, military retirees,
and their families. The MHS provides health care to 9.6
million beneficiaries in DOD hospitals and clinics-known
as military treatmentfacilities (MTFs)-and through
civilian health care providers participating in TRICARE,
DOD's health-insurance-like program.
Congress traditionally appropriates discretionary funding
for the MHS in several types of accounts within the annual
defense appropriations bill. These types of accounts include
Operation and Maintenance (O&M), Military Personnel
(MILPERS), and Military Construction (MILCON). DOD
refers to these portions of the budget as the unified medical
budget (UMB). The request does not include a proposal to
modify statutory TRICARE cost-sharing requirements for
beneficiaries.
FY2025 MHS ud get Request
The FY2025 MHS budget request is 1.8% ($1.1 billion)
more than the FY2024 appropriation. Table 1 shows the
FY2025 request and previously enacted amounts for the
MHS.

Defense Health Program (DHP)
The DHP, resourced by O&M funds, performs the
following MHS functions: health care delivery in MTFs;
TRICARE; certain medical readiness activities and
expeditionary medical capabilities; education and training
programs; research, development, test, and evaluation
(RDT&E); management and headquarters activities;
facilities sustainment; procurement; and civilian and
contract personnel. The FY2025 request for the DHP
account is $40.3 billion, which is 1.0% ($0.4 billion) more
than the appropriated amount for FY2024. Table 2
highlights selected programs that DOD intends to create,
maintain, expand, reduce, or transfer to other accounts.
MItary Personne (M    LPERS)
The medical MILPERS account funds military personnel
operating the MHS. This funding includes various pay and
allowances, such as basic, incentive, and special pays;
subsistence allowance; permanent change of station travel;
and retirement contributions. DOD requested $9.5 billion
for medical MILPERS for FY2025 but does not identify
personnel costs related to the MHS at more detailed levels
(e.g., budget activity group, program element, or line item).
This request is nearly the same as the FY2024 request,
reflecting a 0.02% increase in military medical end strength
(+17 positions).

Table I. Military Health System Funding, FY2020-FY2025 Request
($ in billions)

FY2020       FY2021      FY2022      FY2023      FY2024       FY2025
Account                                        Enacted      Enacted     Enacted     Enacted     Enacted      Request
O&M (DHP)                                        $37.1       $34.1        $37.4       $39.2       $39.9       $40.3
DHP Operation & Maintenance                    $33.0       $31.1       $34.0       $35.6       $36.6        $38.9
Research, Development, Test, and Evaluation     $3.7        $2.4        $2.6        $3.0         $2.9        $1.0
Procurement                                     $0.5        $0.5        $0.8        $0.6        $0.4         $0.4
MILPERS                                           $8.9        $8.3         $8.5        $8.9        $9.2        $9.5
MILCON (DHA)                                      $0.3        $0.5         $0.5        $0.6        $0.5        $0.5
MERHCF Contributions                              $7.8        $8.4         $9.3        $9.7       $10.6       $11.0
Grand Total                                      $51.4        $51.3       $55.7       $58.4       $60.2       $61.3
Sources: Department of Defense (DOD), Defense Budget Overview, March 2024, p. 4-1I; DOD, Defense Health Program Fiscal Year (FY)
2025 Budget Estimates, March 2024, p. I; explanatory statement accompanying Division A of P.L. 118-47; explanatory statement accompanying
Division A of P.L. 118-42; CRS In Focus IF 12377, FY2024 Budget Request for the Military Health System, by Bryce H. P. Mendez; and
correspondence with DOD officials.
Notes: Numbers may not add up due to rounding. The FY2025 request does not include funding that Congress historically adds to the DHP
(e.g., unrequested medical research funding). The FY2020 and FY2021 enacted amounts include supplemental funding appropriated from the
CARES Act (P.L. 116-136). O&M (DHP) refers to a DOD budget account, whereas DHP Operation & Maintenance refers to a subordinate budget

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