Updated November 17, 2022

Defense Primer: Budgeting for National and Defense

Intelligence
Introduction Military Intelligence Program (MIP)
Intelligence Community (IC) programs include the Military-specific tactical and/or operational intelligence
resources (money and manpower) to accomplish IC goals activities were not included in the NFIP. They were known
and responsibilities as defined by the U.S. Code and as Tactical Intelligence and Related Activities (TIARA) and
Executive Order 12333. IC programs are funded through managed separately by the Secretary of Defense. TIARA
the: (1) National Intelligence Program (NIP), which covers referred to the intelligence activities “of a single service”
the programs, projects, and activities of the IC oriented that were considered organic to military units. In 1994,
toward the strategic requirements of policymakers, and (2) Congress created a new category called the Joint Military
Military Intelligence Program (MIP), which funds defense Intelligence Program (JMIP) for defense-wide intelligence
intelligence activities intended to support tactical military programs. In 2005, the Secretary of Defense signed a
requirements and operations. The Director of National memorandum that merged TIARA and JMIP to form the
Intelligence (DNI) and the Under Secretary of Defense for MIP. DOD Directive 5205.12, signed in November 2008,
Intelligence and Security (USD(I&S)) manage the NIP and established policies and assigned responsibilities, to include
MIP, respectively, under different authorities. the USD(I&S)’s role as program executive of the MIP,
acting on behalf of the Secretary of Defense.
NIP and MIP Spending
At the present time, only the NIP topline figure must be The IC established organizing principles called “Rules of
publicly disclosed based on a directive in statute. The DNI the Road” to loosely explain the two budget programs’
is not required to disclose any other information concerning different but related structures. A program is primarily NIP
the NIP budget, whether the information concerns particular if it funds an activity that supports more than one
intelligence agencies or particular intelligence programs. department or agency (such as satellite imagery), or
Although not mandated by statute, the Secretary of Defense provides a service of common concern for the IC (such as
also discloses annual MIP appropriations totals dating back secure communications). The NIP funds the Central
to 2007. In FY2021, funding appropriated for the NIP and Intelligence Agency (CIA) and the Office of the Director of
MIP totaled $84.1 billion (NIP $60.8 billion, MIP $23.3 National Intelligence (ODNI) in their entirety, and the
billion). The aggregate NIP/MIP appropriated budget for strategic intelligence activities associated with departmental
FY2022 is $89.8 billion (NIP $65.7 billion, MIP $24.1 IC elements (such DOD’s National Security Agency
billion). The aggregate NIP/MIP requested budget for (NSA)).
FY2023 is $93.7 billion (NIP $67.1 billion, MIP $26.6
billion). A program is primarily MIP if it funds an activity that
addresses a unique DOD requirement. Additionally, MIP
Background funds may be used to “sustain, enhance, or increase
capacity/capability of NIP systems.” The DNI and
National Intelligence Program (NIP) USD(I&S) work together in a number of ways to facilitate
The origins of the intelligence budget, separate and distinct the integration of NIP and MIP intelligence efforts.
from the defense budget, date to reforms initiated in the Mutually beneficial programs may receive both NIP and
1970s to improve oversight and accountability of the IC. At MIP resources.
that time, the National Foreign Intelligence Program (NFIP)
was managed by the Director of Central Intelligence (DCI), Two Budget Processes: IPPBE & PPBE
in consultation with the Secretary of Defense, and overseen The IC’s Intelligence Planning, Programming, Budgeting
by the National Security Council (NSC). Congress and Evaluation (IPPBE) process allocates funding and
redesignated the NFIP as the NIP in the Intelligence personnel resources supporting IC-wide capabilities
Reform and Terrorism Prevention Act (IRTPA) of 2004 through the development and execution of the NIP and its
(P.L. 108-458 §1074). The IRTPA also provided for a associated budget. The NIP addresses priorities described in
number of additional IC reforms, including the position of national security-related documents such as the National
DNI. The DNI was given more budgetary authority over the Intelligence Strategy. The IPPBE process applies to all 18
NIP than the DCI had over the NFIP. Intelligence components of the IC (IC elements are specified by 50
Community Directive (ICD) 104 provides overall policy to U.S.C. §3003(4)). Program managers control NIP resources
include a description of the DNI’s roles and responsibilities aligned with requirements for IC capabilities such as
as program executive of the NIP. geospatial intelligence, signals intelligence, and human
intelligence—capabilities that may span several IC
components.

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 Defense Primer: Budgeting for National and Defense Intelligence

The DOD’s Planning, Programming, Budgeting and processes. Execution and performance reviews are
Execution (PPBE) process provides the funding for service undertaken, so that funds are obligated in accord with DNI,
intelligence components and DOD intelligence agencies USD(I&S), and legislative intent. Midyear reviews may
(Defense Intelligence Agency, NSA, National Geospatial lead to decisions that require a redistribution of funds.
Intelligence Agency, and the National Reconnaissance
Office) required to organize, train and equip military forces Evaluation is a Process not a Phase
for combat, and to cover all necessary support missions. The E in the IPPBE stands for evaluation rather than
The senior leader for intelligence in each service—called execution. The PPBE also includes evaluation but it is not
the Component Manager—manages that service’s MIP part of its acronym.
resources in accordance with USD(I&S) guidance and Evaluation is a continuous process with several periodic
policy. entry points throughout both the IPPBE and PPBE phases.
Its primary objective is to assess the effectiveness of NIP
Planning Phase and MIP programs, activities, major initiatives, and
The IC’s Assistant DNI for Systems and Resources investments. Evaluations inform current and future
Analysis (ADNI/SRA) and the DOD’s Under Secretary of planning, programming, budgeting, and execution
Defense for Policy lead the IPPBE and PPBE planning decisions.
phases, respectively. They analyze long-term trends,
validate intelligence-related requirements, identify gaps and Responsibility for the evaluation function is shared. For
shortfalls, and prioritize needs as they relate to the DNI and example, DOD and IC Policy and Strategy offices conduct
USD(I&S) policy goals. Officials on the staffs of the ODNI the program-level and strategic assessments to inform the
and OUSD(I&S) oversee each phase of the IPPBE and planning phase. CFOs are responsible for all budgeting and
PPBE processes, and work in concert to synchronize their execution-related evaluations and performance
efforts. measurement reports required for OMB and Congress.
IPPBE and PPBE Budget Cycles
Programming Phase The IPPBE and PPBE comprise at least four different fiscal
During the programming phase, the IPPBE lead is the year budget cycles running simultaneously at any given
ADNI/SRA while the PPBE lead is the Director of Cost and point in time. Numerous federal, departmental, and agency-
Program Evaluation (CAPE). The primary objective of this specific timelines, missions, and priorities further
phase is to provide analytically based, fiscally constrained complicate both cycles.
options to frame resource decisions. Programming includes (Note: This In Focus was originally written by former CRS
the following primary activities: Analyst Anne Daugherty Miles.)
 Conducting major issue studies to analyze high-impact, Relevant Statutes
cross-IC issues (such as a common need for data-mining
Title 10, U.S. Code, Chapter 9; Title 50, Chapter 44, Subchapter
technology);
III
 Developing independent total life cycle cost estimates
for major systems acquisitions and other programs of
interest; CRS Products
 Producing the final Consolidated Intelligence Guidance CRS In Focus IF10428, Intelligence Planning, Programming,
(CIG)—the joint DNI/USD(I&S) guidance used by NIP Budgeting, and Evaluation (IPPBE) Process, by Michael E. DeVine
Program Managers and MIP Component Managers to CRS In Focus IF10429, Defense Primer: Planning, Programming,
finalize their program and budget submissions. Budgeting, and Execution (PPBE) Process, by Brendan W. McGarry
Budgeting (and Execution) Phase CRS In Focus IF10470, The Director of National Intelligence (DNI),
In the IPPBE, budgeting and execution comprise one phase by Michael E. DeVine
led by the ADNI/Chief Financial Officer (ADNI/CFO). The CRS In Focus IF10523, Defense Primer: Under Secretary of Defense
PPBE separates budgeting and execution into two separate for Intelligence and Security, by Michael E. DeVine
phases. The ADNI/CFO’s counterpart is the USD CRS In Focus IF10525, Defense Primer: National and Defense
Comptroller/Chief Financial Officer (USD(C)/CFO). Intelligence, by Michael E. DeVine
CRS Report R44381, Intelligence Community Spending: Trends and
The ADNI/CFO is responsible for producing the
Issues, by Michael E. DeVine
Congressional Budget Justification Books (CBJBs) and the
accompanying NIP Summary of Performance and Financial
Information Report. Together, these classified documents Other Resources
explain and justify the details associated with each of the DOD Directive 7045.14, The Planning, Programming, Budgeting,
NIP programs to the House Permanent Select Committee on and Execution (PPBE) Process, August 29, 2017.
Intelligence and the Senate Select Committee on IC Directive 116, Intelligence Planning, Programming, Budgeting, and
Intelligence. In contrast, the MIP programs are justified Evaluation System, September 14, 2011.
using Congressional Justification Books (CJBs) submitted
to Congress as part of DOD’s PPBE process.

If the budget is enacted by Congress, the two CFOs manage

Michael E. DeVine, Analyst in Intelligence and National
the NIP and MIP budget apportionment and reprogramming
Security
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 Defense Primer: Budgeting for National and Defense Intelligence

IF10524

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