OFFICE OF THE UNDER SECRETARY OF DEFENSE …

1 FEBRUARY 2020 OFFICE OF THE UNDER SECRETARY OF DEFENSE (COMPTROLLER)/CHIEF FINANCIAL OFFICERD efense Budget OverviewIrreversible Implementation of the National DEFENSE StrategyREVISED MAY 13, 2020 UNITED STATES DEPARTMENT OF DEFENSE FISCAL YEAR 2021 BUDGET REQUEST i Preface The Overview Book has been published as part of the President s Annual DEFENSE Budget for the past few years. From FY 1969 to FY 2005, OSD published the Annual DEFENSE Report (ADR) to meet 10 USC section 113 requirements. Subsequently, the Overview began to fill this role. The Overview is one part of an extensive set of materials that constitute the presentation and justification of the President s Budget for FY 2021. This document and all other publications for this and previous DoD budgets are available from the public web site of the UNDER SECRETARY of DEFENSE (Comptroller): The Press Release and Budget Briefing, often referred to as the Budget Rollout, and the Program Acquisition Costs by Weapons System book, which includes summary details on major DoD acquisition programs (.)

2 , aircraft, ground forces programs, shipbuilding, space systems, etc.) are especially relevant. The website for Performance Improvement tables and charts is Other background information can be accessed at The estimated cost of this report or study for the Department of DEFENSE is approximately $29,000 for the 2020 Fiscal Year. This includes $13,000 in expenses and $16,000 in DoD labor. Generated on 2020 Jan28 RefID: 6-78B6743 ii Changes/Revisions as of May 13, 2020 PAGE EXPLANATION OF CHANGE/REVISION PURPOSE 1-10 Update FY 2021 DEFENSE -Wide Review reform opportunities total Revision 2-8 Updated Figure Civilians FTE Revision 6-1 Added footnote to OCO for Base Requirements in Figure Addition 6-4 Added footnote to OCO for Base Requirements in Figure Addition 6-5 Updated the OFFICE of Security Cooperation - Iraq (OSC-I)

3 Funding level Revision 8-1 Updated Fourth Estate reform opportunities Revision 8-1 Updated FY 2021 Reform totals Revision 8-1 Updated FY 2021 DEFENSE -Wide Review reform opportunities total Revision 8-3 Reorganized the bullet on the Air Force is implementing the Pilot Training Next Revision 8-3 Updated Army lower priority programs Revision 8-3 Updated the FY 2021 total program eliminations Revision A-3 Updated Table A-4 Combat Force Structure Overview Revision Overview FY 2021 DEFENSE Budget TABLE OF CONTENTS iii Table of Contents 1. FY 2021 Budget Summary A Strategy Driven Budget 1-1 Introduction .. 1-1 2018 National DEFENSE Strategy .. 1-2 FY 2021 Budget Request Overview .. 1-3 Continues to Strengthen Military Readiness and Invest in the Modernization of a More Lethal Strengthens Alliances, Deepens Interoperability, and Attracts New Partners.

4 1-9 Reforms the Department for Greater Performance and Accountability .. 1-1 0 Support Our People/Families .. 1-11 Conclusion .. 1-1 3 2. Sustaining Our Forces 2-1 Military Compensation .. 2-1 Military Housing Privatization Initiative .. 2-2 Managing Military Health System .. 2-3 Strengthening Military Families .. 2-6 DoD Civilians .. 2-7 3. Achieving a Sustainable Level of Readiness 3-1 Army Readiness .. 3-2 Navy Readiness .. 3-4 Marine Corps Readiness .. 3-6 Air Force Readiness .. 3-8 Space Force Readiness .. 3-1 0 United States Special Operations Command Readiness .. 3-1 1 Joint Capabilities .. 3-1 2 Readiness Reform .. 3-1 4 4. Enhancing Lethality 4-1 The Growing 4-1 Power Projection .. 4-3 Munitions .. 4-6 Nuclear Modernization/Nuclear Deterrence.

5 4-7 Missile Defeat and DEFENSE .. 4-9 Science and Technology .. 4-12 Overview FY 2021 DEFENSE Budget TABLE OF CONTENTS iv Space and Spaced-Based Systems .. 4-12 Cyberspace Activities .. 4-13 5. Establishing the Space Force 5-1 United States Space Force .. 5-1 Fiscal Year 2021 Budget .. 5-2 Transitional Budget and Resource Plan .. 5-3 6. Overseas Contingency Operations and Emergency 6-1 OCO Categories .. 6-2 Current Operations .. 6-2 OCO Functional/Mission Category .. 6-4 7. Audit 7-1 The Department of DEFENSE Consolidated Audit Strategy .. 7-2 Audit Remediation .. 7-3 Budget .. 7-4 Data Analytics .. 7-5 8. Reforming DEFENSE 8-1 9. Military Departments 9-1 Army .. 9-1 Navy/Marine Corps .. 9-9 Air Force .. 9-19 10.

6 Performance Plan and Annual Performance Report 10-1 Appendix A. Resource Exhibits A-1 Table A-1 DoD Total (Base + OCO/Emergency) Budget by Appropriation Title .. A-1 Table A-2 DoD Total (Base + OCO/Emergency) Budget by Military Department .. A-1 Table A-3 DoD Total (Base + OCO/Emergency) Budget by Military Department and Appropriation Title .. A-1 Table A-4 Combat Force Structure Overview .. A-3 Table A-5 Active Component End Strength (in Thousands) .. A-4 Table A-6 Reserve Component End Strength (in Thousands) .. A-4 Table A-7 DoD Base Budget by Appropriation Title .. A-4 Table A-8 DoD Base Budget by Military Department .. A-5 Table A-9 DoD OCO Budget by Appropriation Title .. A-5 Table A-10 DoD OCO Base Budget by Military Department.

7 A-5 Overview FY 2021 DEFENSE Budget TABLE OF CONTENTS v Table A-11 DoD Emergency Budget by Appropriation Title .. A-6 Table A-12 DoD Emergency Budget by Military Department .. A-6 Table A-13 DoD Base Budget by Military Department and Appropriation Title .. A-6 Table A-14 DoD OCO Budget by Military Department and Appropriation Title .. A-8 Table A-15 DoD Emergency Budget by Military Department and Appropriation Title .. A-9 Appendix B. Acronym List B-1 Overview FY 2021 DEFENSE Budget TABLE OF CONTENTS vi This page intentionally left blank Overview FY 2021 DEFENSE Budget CHAPTER 1 FY 2021 BUDGET SUMMARY A STRATEGY DRIVEN BUDGET 1-1 1. FY 2021 BUDGET SUMMARY A STRATEGY DRIVEN BUDGET INTRODUCTION The Department of DEFENSE s (DoD) enduring mission is to provide a combat-credible military force to deter war, or should deterrence fail, prevail in war.

8 The 2018 National DEFENSE Strategy (NDS) correctly identified a fundamental problem for the Department the erosion of competitive military advantage with China and Russia in key regions. It is the Department s responsibility, and the highest imperative of the Strategy, to reverse this erosion, while sustaining efforts to deter and counter threats from Iran and North Korea, and defeating violent extremist threats to the United States. It is critical for DoD to reverse this erosion. Doing so will ensure DoD can continue deterring aggression and coercion from those that would seek to supplant the United States and challenge the free and open international order that forms the foundation of our continued freedom and prosperity.

9 Great power competition is the pre-eminent challenge facing the nation s security. China possesses one of the largest militaries in the world and is becoming increasingly comfortable portraying itself as a counter to the United States. China s spending specifically targets key military advantages with new capabilities in space, cyber, electronic warfare, undersea warfare, fighter aircraft, bombers equipped with long-range cruise missiles, and other anti-access, area denial (A2/AD) capabilities. Russia too has invested heavily in A2/AD capabilities to prevent an adversary from operating in Eastern Europe, including advances in strategic air operations, integrated air DEFENSE systems, surface to-air-missiles, and coastal DEFENSE cruise missiles.

10 Russia has also upgraded conventional forces while investing heavily in cyber, space, electronic warfare, and hybrid warfare capabilities. Additionally, Russia is comprehensively improving its strategic nuclear weapons and delivery systems with a projected investment of $28 billion by 2020. This investment will allow Russia to upgrade its capacity in intercontinental ballistic missiles, ballistic missile submarines, and strategic bombers. The DoD must balance ongoing activities directed at long term strategic competition while simultaneously addressing regional aggressors and other acute operational demands. Since 2016, DoD has made significant progress on a range of fronts to compete with China and Russia by prioritizing modernization, innovation, and high-end readiness, while also recognizing the immediacy of the challenge posed by regional aggressors.