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             Congressional Research Service
             Informing theagi sative de~bate since 1914




Defense Spending and Your District


Defense spending touches every Member  of Congress's
district through pay and benefits for military
servicemembers  and retirees, economic and environmental
impact of installations, and procurement of weapons
systems and parts from local industry, among other
activities. This product is intended to familiarize Members
with the scope of federal funding for defense-related
activities, and to help prepare them to deliberate on defense
policy and funding legislation.

Major Activities in Defense Policy
Members  typically influence defense policy and funding in
legislation that addresses three broad categories of national
defense-related activities: (1) military and intelligence
activities of the Department of Defense (DOD); (2) atomic
energy defense activities primarily of the Department of
Energy, including development of nuclear weapons and
propulsion systems; and (3) other defense-related activities
(e.g., FBI counterintelligence activities). In the President's
FY2025  budget request to Congress, national defense-
related activities accounted for $921 billion (12%) of $7.5
trillion in total federal funding. Of the $921 billion, $895
billion was requested for discretionary budget authority
(i.e., funding provided in appropriations acts). Congress can
choose to provide lesser, the same, or greater amounts.

DOD Budget
DOD   accounts for $850 billion (95%) of the $895 billion in
discretionary funding requested for national defense-related
activities. The annual defense budget process provides an
opportunity for Members to prioritize funding for various
types of military activities. In terms of major categories, or
titles, the largest share of funding in DOD's portion of the
President's fiscal year (FY) 2025 budget request was
$337.9 billion (40%) for Operation and Maintenance
(O&M)   to operate and maintain the armed services;
followed by $181.9 billion (21%) for Military Personnel
(MILPERS)   to pay for servicemembers; $167.5 billion
(20%) for Procurement to buy weapons, equipment, and
services; $143.2 billion (17%) for Research, Development,
Test, and Evaluation (RDT&E)  to develop new technology;
$15.6 billion (2%) for military construction (MILCON) to
fund construction projects and land acquisition; $2.0 billion
(0.2%) for family housing (FH); and $1.7 billion (0.2%) for
revolving funds (see Figure 1).

Operation   and  Maintenance
Members  and their staff typically express interest in O&M
activities, in part because this portion of the DOD budget
funds a range of activities occurring in or around
congressional districts-and throughout the world. These
activities include military recruiting; minor repairs of
military installations (e.g., replacing roofs, refinishing wall
surfaces, repairing or replacing heating and cooling


Updated December   16, 2024


systems); routine maintenance of aircraft, ground vehicles,
and ships; headquarters and supply operations; and paying
civilian personnel. O&M funding also supports the Military
Health System (MHS),  which offers health care benefits
and services through its TRICARE program to
approximately 9.6 million beneficiaries composed of
servicemembers, military retirees, and family members.
The MHS   administers Congressionally Directed Medical
Research Programs  funding to certain medical research
programs on a variety of diseases and topics. O&M funding
also supports military training exercises and other activities
related to readiness (i.e., the ability of military forces to
fight and meet the demands of assigned missions).

Figure  I. FY2025 DOD   Budget  Request,  by Major
Appropriation  (as Share  of Discretionary Funding)


Source: CRS analysis of White House Office of Management and
Budget, Analytical Perspectives, Budget of the United States Government
Fiscal Year 2025, Table 25-1.
Notes: Percentages may not add to 100% due to rounding.

Military Personnel
Every congressional district has some military-connected
constituents, such as active-duty servicemembers,
reservists, retirees, DOD employees, contractors, and/or
military families. During the legislative cycle, Members
may  weigh decisions about compensation, benefits (e.g.,
healthcare, leave time), and other policies that affect these
populations. The basic MILPERS  spending questions
facing Congress on an annual basis typically include How
many  people? and How  much to pay them? Title 10,
Section 101, of the United States Code gives Congress the
authority to establish end-strengths (the total force size) for
the active and reserve components. Elements of military
compensation  (e.g., basic pay and housing allowances) are
specified in law, including formulas tying pay increases to
inflation, unless modified by Congress. Factors influencing
force size and compensation decisions may include


Total: $850 billion


MILCON
  1.8%

  Family
Housing
  01%


Revolving
  Funds
  0.2%

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