2017 Defense Budget: Offset Promising, But Today’s Procurement Disproportionately Pays the Bills
President Obama’s fiscal year 2017 defense budget request (FY17) totals $610 billion: a $551 billion base budget combined with $58.8 billion in overseas contingency operations (OCO) funding, or emergency spending above the legal budget caps. The president’s final budget is at least $18 billion short of his own request from last year, setting up both parties for yet another political fight over the defense topline on Capitol Hill. Worse, inflation means the latest defense budget is actually declining—not rising—in real terms. In sum, the president’s 2017 defense budget cuts more than it invests.