U.S. lawmakers released the final version of the FY25 National Defense Authorization Act (NDAA) this past Saturday, omitting a significant funding boost recommended by the Senate Armed Services Committee earlier this year. The NDAA adheres to the Biden administration’s topline request of $883.7 billion for national security, including $849.9 billion for the Pentagon and $33.3 billion for national security programs in the Department of Energy. The proposed bill aligns with the spending caps established by the Fiscal Responsibility Act (FRA).
The House and Senate armed services committees differed on their original FY25 budget proposals. The House marked up its bill in line with the administration’s request, but the SASC proposed adding $25 billion to the defense topline. The additional funding included $10 billion for procurement and $2.9 billion for research and development (RDT&E), among other changes.
The compromise authorization bill proposes comparatively modest increases of $1.5 billion for procurement and $611.5 million for RDT&E. Another $865.1 million is added for military personnel. These increases are offset by a $1.9 billion reduction in operation and maintenance funding.
With the NDAA finalized, congressional appropriators will ultimately determine the size of the Pentagon’s FY25 budget. The House and Senate appropriations committees have released their individual budget markups, but they still must negotiate a compromise bill in the form of a conference defense appropriations bill. House and Senate appropriators mirrored the differences seen in the armed services committees’ treatment of the FY25 request. The House Appropriations Committee marked up its budget proposal in line with the FY25 request and FRA spending limits, while Senate appropriators recommended adding nearly $19 billion for the Pentagon in FY25. The Senate proposal would add $8.5 billion for procurement and $2 billion for RDT&E.
Currently, the government is funded by a continuing resolution (CR) that extends last year’s funding levels through December 20, 2024, leaving Congress with a tight deadline to pass FY25 appropriations or extend the CR to avoid a government shutdown.
Shaun's deep-rooted interest in military equipment continues in his role as a senior defense analyst with a focus on the United States. He played an integral role in the development of Forecast International's U.S. Defense Budget Forecast, an interactive online product that tracks Pentagon acquisition programs throughout the congressional budget process. As editor of International Military Markets – North America, Shaun has cultivated a deep understanding of the vast defense markets in the United States and Canada. He is a regular contributor to Forecast International's Defense & Security Monitor blog and has co-authored white papers on global defense spending and various military programs.
