November 3 Defense Budget Refresher: Budget Deal and Defense Authorization

By Sarah Tully

Budget Deal (H.R. 1314) (new information in italics)

On October 26, congressional leaders announced a two-year budget deal to increase discretionary spending caps for defense and non-defense spending for Fiscal Years 2016 and 2017. The bill also suspends the debt limit until March 15, 2017.

The deal raises the defense spending caps by $25 billion over the caps under the budget control act level for Fiscal Year 2016, and $15 billion for Fiscal Year 2017. It also provides $59 billion for the Pentagon portion of the Overseas Contingency Operations account. OCO for non-defense, that is, the 150 International Affairs account, gets $15 billion under the deal, for a total of $74 billion for OCO.

The initial version of the bill implied that the OCO levels were to be used as a floor, not a cap; however, House rules amendment struck the words “no less than” in reference to OCO.

The $59 billion for OCO under the Budget Deal is $5 billion less than the $64 billion for OCO appropriated in FY 2015. But the $15 billion for State Department OCO is $6 billion more than the $9 billion appropriated in FY 2015.

To recap:

Budget Deal (in billions)

FY 2016 Base Budget: 548

FY 2016 050 (Defense) OCO: 59

FY 2016 150 (International Affairs) OCO: 15

The House passed the bill by a vote of 266-167 on October 28. Just after 3am on October 30, the Senate passed the deal, by vote of 64-35. President Obama signed the deal into law on November 2.

Congress has until December 11 to appropriate funds for FY 2016.


Defense Authorization Bill (H.R. 1735) (new information in italics)

On May 15, the House approved the FY 2016 NDAA by 296 to 151. Before the final vote, the House considered 135 amendments, but the Republican leadership refused to permit votes on many key amendments. On June 18, the Senate approved the authorization bill 71-25. Of the 600 amendments filed, only 58 were voted upon. There were many speeches and quorum calls and not much action.

Next came three months of on-and-off negotiations on a House-Senate conference agreement. Certain provisions on torture, the Guantanamo Bay prison, Tricare co-pays, the huge increase in the Overseas Contingency Operations account (OCO), and of course, protection of the Sage Grouse (click here to watch the bird’s terrifying mating dance), held up the negotiations.

The conference report was agreed to on September 29. It includes $38 billion over the president’s request for the Overseas Contingency Operations (OCO) account, an expansion of various missile defense systems, restrictions on funding to dismantle retired nuclear weapons, and hundreds of other policy provisions. See our side-by-side comparison of House, Senate and Conference versions of the defense authorization bill here.

Many Democrats on the two Armed Services committees refused to sign the Conference Report because while defense would be getting a hefty increase, domestic programs would not.

On October 1, the House agreed to the Conference Report by a vote of 270-156. Ten Republicans and 146 Democrats voted against the measure. On October 7, the Senate agreed to the Conference Report by a vote of 70-27. Republican Senators Cruz and Paul joined 25 Democrats in opposing the report.

The president wanted to get rid of the spending caps for defense and non-defense, and threatened to veto the NDAA over the continued use of OCO as a budget gimmick, among other issues, such as Guantanamo.

On October 22, the president vetoed the bill. This was the fifth time in history the defense bill has been vetoed – most recently by President George W. Bush in 2008 over an Iraq policy issue.

The budget agreement, reached on October 26, sets a limit on Pentagon spending that is roughly $5 billion less than what is authorized in the NDAA.

The savings found include a $230 million reduction from the initial authorization of $786.2 million for the Long Range Strike Bomber, and a $20.5 million reduction for the new nuclear cruise missile, a 56% decrease compared to the $36.6 million initially authorized. It also includes a $125 million reduction for the Syria Train & Equip program as compared to the $600 million from the president’s request, and the $531.5 million authorized in the initial version of the NDAA.

The House will vote on a revised version of the authorization bill on Thursday. If that passes, the House will forgo its veto-override vote. House and Senate Armed Service Committee chairs Mac Thornberry and John McCain do not intend to change any policy aspects of the revised bill, which will likely be inserted into a shell bill to be advanced quickly.