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September 24, 2024

Defense Primer: Military Infrastructure Funding

The Department of Defense (DOD) maintains military
infrastructure to support military missions around the world.
This infrastructure includes buildings, roads, airfields, ports,
training ranges, barracks, utilities, piers, pipelines, and other
structures. Congress provides two primary funding sources to
support military infrastructure. Military construction
(MILCON) funding provides for the construction of new
facilities and the expansion of existing facilities. Facilities
Sustainment, Restoration and Modernization (FSRM) funding
provides for the maintenance and renovation of existing
facilities. For FY2025, the Biden Administration requested
$17.5 billion for MILCON and family housing programs; the
request for FSRM funding (sometimes also referred to in
budget documents as Sustainment, Restoration and
Modernization) totaled $19.8 billion.
The MILCON and FSRM programs are interdependent; in
budget planning, the tradeoff between maintaining and
adapting existing facilities or building anew is given close
consideration. Both programs aim to ensure the readiness of
military infrastructure worldwide. Nevertheless, the two
programs have several differences (see Table 1), as each
provides funding for different types of projects, is governed
by different statutes and policies, and is funded by distinct
congressional appropriations processes.
Broadly speaking, one key difference between MILCON and
FSRM is that Congress typically exercises comparatively
more oversight and direction over the MILCON budget. For
example, Congress requires DOD to provide budget-
justification documents for individual projects before
authorization and the law generally requires enactment of
Table I. MILCON and FSRM Program Distinctions
MILCON

Purpose
Committee Oversight
Appropriation Category
Funding Availability
Legislation
Governance
Community Project
Funding/Congressionally
Directed Spending

Funds new construction and expansion of
existing facilities
MILCON appropriations are overseen by
Appropriations Committees' MILCON-VA
subcommittee
Funded through Military Construction
accounts
MILCON funding is typically available for
obligation for up to five years
Appropriation enacted in the annual MILCON-
VA Appropriations Act
Funding guidelines are based in statute,
contained in 10 U.S.C. §§2801 etseq.
Chamber rules in some years may allow
Members to submit requests to fund specific
MILCON projects in their communities

line-item level authorization and appropriation for individual
projects. By comparison, Congress typically provides annual
funding for FSRM in a lump sum to the military services and
DOD components, allowing the services and components to
exercise discretion over which specific projects receive
funding from one year to the next. In some instances,
congressional defense committees may allow Members to
submit requests to fund specific MILCON projects in their
communities; such funding requests-formally known in the
House as Community Project Funding and in the Senate as
Congressionally Directed Spending- are rarely an option for
FSRM projects.
MILCON
MILCON is one of the primary components, or titles, of the
DOD budget. Statutes that outline the use of MILCON
funding are contained in Title 10, Chapter 169 of the U.S.
Code (Sec. 2801 et. seq.). As part of the annual President's
budget request, DOD submits a list of individual MILCON
projects, with justification documentation, that includes a cost
estimate and the status of each project's planning and design
work. Historically, legislation authorizing MILCON projects
is developed by the House and Senate Armed Services
Committees and enacted in an annual National Defense
Authorization Act (NDAA). Legislation appropriating funds
for MILCON is developed by the Military Construction,
Veterans Affairs, and Related Agencies (MILCON-VA)
subcommittees of the appropriations committees and
appropriated in the annual MILCON-VA Appropriations Act.
The line item-level authorizations for individual projects are
generally included in an NDAA and appropriations in a
MILCON-VA Appropriation Act.

FSRM
Funds routine maintenance or modernization of
existing facilities
FSRM appropriations are overseen by Appropriations
Committees' Defense subcommittee
Funded as line-item subset of O&M accounts
FSRM funding is typically available for obligation for
one year
Appropriation enacted in the annual Defense
Appropriations Act
Funding guidelines are contained in the DOD
Financial Management Regulation (FMR)
Defense committees typically do not invite Members
to submit requests for specific FSRM projects

Source: CRS analysis of U.S. Code, DOD policies, and defense appropriations documents.

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