As reported by the Senate Committee on Armed Services on May 18, 2016
S. 2943 would authorize appropriations totaling an estimated $603.9 billion for the military functions of the Department of Defense (DoD), for certain activities of the Department of Energy (DOE), and for other purposes. In addition, S. 2943 would prescribe personnel strengths for each active-duty and selected-reserve component of the U.S. armed forces. CBO estimates that appropriation of the authorized amounts would result in outlays of $587.8 billion over the 2017-2021 period.
Of the amount authorized for 2017, $544.1 billion—if appropriated—would count against that year’s defense cap set in the Budget Control Act (BCA), as amended. Another $0.2 billion authorized for nondefense programs would count against the nondefense cap and an additional $58.9 billion authorized and designated for overseas contingency operations would not be constrained by caps.
The bill also contains provisions that would affect the costs of defense programs funded through discretionary appropriations in 2018 and future years. Those provisions mainly would affect force structure, compensation and benefits, the military health system, and various procurement programs. CBO has analyzed the costs of a select number of those provisions and estimates that they would, on a net basis, decrease the cost of those programs relative to current law by about $14 billion over the 2018-2021 period. The net costs of those provisions in 2018 and beyond are not included in the total amount of outlays mentioned above because funding for those activities would be covered by specific authorizations in future years.
In addition, CBO estimates that enacting the bill would increase direct spending by $10.9 billion over the 2017-2026 period. S. 2943 would have an insignificant effect on revenues. Because enacting the bill would affect direct spending and revenues, pay-as-you-go procedures apply.