This year will likely mark the 60th consecutive fiscal year for which a defense authorization (NDAA) was enacted (FY 2021 is currently in conference).  Passage of the NDAA provides authority to the DoD to fund internal programs, as well as certain Intelligence Community programs, the nuclear weapons programs of the Department of Energy and other defense-related activities at other federal agencies.  However, much of the funding debate within the US Congress, centers on discretionary spending, which put simply, is funding that the US Congress sets annually. Discretionary spending typically accounts for around a third of all Federal funding.  However, within discretionary spending, the defense budget makes up more than 50% of all spending within the United States Government.


The Congressional approval and funding for the defense budget, generally begins after the budget is submitted by the President to the Congress (Each February).  Once delivered, the Congressional Committees overseeing the DoD, which include the House Armed Services Committee (HASC) and the Senate Armed Services Committee (SASC), begin their deliberations on how the funds will be spent.  Although each Committee develops their own bill, there is a reconciliation of differences after both bills pass their chambers (Conference Committee).  This process includes members of both Committees overseeing the Defense budget, along with other members selected by their party leadership, in both the House and the Senate.  Once completed, the conference report is voted on by both chambers and sent to the President for signature. Although the NDAA still remains to be passed, it will likely occur over the next few days.  For specific information on the authorized spending and programs, please see the FY 2021 conference report for the NDAA .

As we continue our Pixstory, we look forward to sharing other priorities of the United States Government and how each of us can CounterPivot to be agile and adapt to policy and funding decisions that impact our daily business decisions.