Fiscal Year 2002 Budget - Center for Defense Information

The Bush Administration is requesting $343.2 billion for the Pentagon in Fiscal Year 2002. This is $32.6 billion above current levels, and includes the $14.2 billion increase requested for the military in the March budget release (see below). This total also includes $14.3 billion for the defense functions of the Department of Energy. With the new funds, Pentagon spending now accounts for over half (50.5%) of all discretionary spending -- those funds that the Administration must request and Congress must act on each year.

BACKGROUND: On February 28 the Bush Administration released the first official information on its proposed Fiscal Year 2002 budget request. The document, "A Blueprint for New Beginnings: A Responsible Budget for America's Priorities," was a preliminary document outlining broad spending priorities for the federal government.

As part of its initial request, the Bush Administration sought $310.5 billion for the Defense Department in FY'02 2002, plus an additional $14.3 billion for the defense functions of the Department of Energy. In all, the Pentagon's initial request was $324.8 billion. This was the FY'02 spending level projected last year by the Clinton Administration. It was $14.2 billion more than FY'01, a 4.6 percent increase above current levels. At the time, White House and Pentagon officials made clear that this was a "placeholder budget," and that further significant increases would requested.

HIGHLIGHTS OF THE FULL REQUEST

The budget includes $82.3 billion for personnel ($6.9 billion above current levels) to fund a 4.6% pay raise, increased health benefits and higher housing allowances. The Operations and Maintenance budget (which is most closely associated with force readiness) grows by $17.8 billion to $125.7 billion, while the research and development budget, at $47.4 billion, represents a $6.4 funding boost.

Only the procurement budget, which goes mainly towards the purchase of weapons, did not increase, dropping from $62.1 billion to $61.6 billion. While this represents a reduction of only $500 million (0.8%), it seems improbable that Congress will accept such levels, and will likely increase the procurement accounts by substantial amounts.

CDI's Fiscal Year 2002 Budget Fact Sheets

"FY'02 Request for Selected Weapons Systems," CDI Factsheet, July 12, 2001.

"FY'02 Request for Ballistic Missile Defense," CDI Factsheet, July 12, 2001.

"FY'02 Discretionary Budget Request," CDI Factsheet, July 17, 2001.

"U.S. Military Spending vs. the World," Updated July 16, 2001.

Other CDI Resources

"Administration Releases Details of Pentagon Spending Request," CDI's Weekly Defense Monitor, July 12, 2001, Volume 5, Issue #27.

"New DoD Budget: Long on Dollars, Short on Details," CDI's Weekly Defense Monitor, June 28, 2001, Volume 5, Issue #25.

"Bush Administration Releases Budget Top-Lines," CDI's Weekly Defense Monitor, March 1, 2001, Volume 5, Issue #9.