https://crsreports.congress.gov
Updated November 17, 2022
Defense Primer: Budgeting for National and Defense
Intelligence
Introduction
Intelligence Community (IC) programs include the
resources (money and manpower) to accomplish IC goals
and responsibilities as defined by the U.S. Code and
Executive Order 12333. IC programs are funded through
the: (1) National Intelligence Program (NIP), which covers
the programs, projects, and activities of the IC oriented
toward the strategic requirements of policymakers, and (2)
Military Intelligence Program (MIP), which funds defense
intelligence activities intended to support tactical military
requirements and operations. The Director of National
Intelligence (DNI) and the Under Secretary of Defense for
Intelligence and Security (USD(I&S)) manage the NIP and
MIP, respectively, under different authorities.
NIP and MIP Spending
At the present time, only the NIP topline figure must be
publicly disclosed based on a directive in statute. The DNI
is not required to disclose any other information concerning
the NIP budget, whether the information concerns particular
intelligence agencies or particular intelligence programs.
Although not mandated by statute, the Secretary of Defense
also discloses annual MIP appropriations totals dating back
to 2007. In FY2021, funding appropriated for the NIP and
MIP totaled $84.1 billion (NIP $60.8 billion, MIP $23.3
billion). The aggregate NIP/MIP appropriated budget for
FY2022 is $89.8 billion (NIP $65.7 billion, MIP $24.1
billion). The aggregate NIP/MIP requested budget for
FY2023 is $93.7 billion (NIP $67.1 billion, MIP $26.6
billion).
Background
National Intelligence Program (NIP)
The origins of the intelligence budget, separate and distinct
from the defense budget, date to reforms initiated in the
1970s to improve oversight and accountability of the IC. At
that time, the National Foreign Intelligence Program (NFIP)
was managed by the Director of Central Intelligence (DCI),
in consultation with the Secretary of Defense, and overseen
by the National Security Council (NSC). Congress
redesignated the NFIP as the NIP in the Intelligence
Reform and Terrorism Prevention Act (IRTPA) of 2004
(P.L. 108-458 §1074). The IRTPA also provided for a
number of additional IC reforms, including the position of
DNI. The DNI was given more budgetary authority over the
NIP than the DCI had over the NFIP. Intelligence
Community Directive (ICD) 104 provides overall policy to
include a description of the DNI’s roles and responsibilities
as program executive of the NIP.
Military Intelligence Program (MIP)
Military-specific tactical and/or operational intelligence
activities were not included in the NFIP. They were known
as Tactical Intelligence and Related Activities (TIARA) and
managed separately by the Secretary of Defense. TIARA
referred to the intelligence activities “of a single service”
that were considered organic to military units. In 1994,
Congress created a new category called the Joint Military
Intelligence Program (JMIP) for defense-wide intelligence
programs. In 2005, the Secretary of Defense signed a
memorandum that merged TIARA and JMIP to form the
MIP. DOD Directive 5205.12, signed in November 2008,
established policies and assigned responsibilities, to include
the USD(I&S)’s role as program executive of the MIP,
acting on behalf of the Secretary of Defense.
The IC established organizing principles called “Rules of
the Road” to loosely explain the two budget programs’
different but related structures. A program is primarily NIP
if it funds an activity that supports more than one
department or agency (such as satellite imagery), or
provides a service of common concern for the IC (such as
secure communications). The NIP funds the Central
Intelligence Agency (CIA) and the Office of the Director of
National Intelligence (ODNI) in their entirety, and the
strategic intelligence activities associated with departmental
IC elements (such DOD’s National Security Agency
(NSA)).
A program is primarily MIP if it funds an activity that
addresses a unique DOD requirement. Additionally, MIP
funds may be used to “sustain, enhance, or increase
capacity/capability of NIP systems.” The DNI and
USD(I&S) work together in a number of ways to facilitate
the integration of NIP and MIP intelligence efforts.
Mutually beneficial programs may receive both NIP and
MIP resources.
Two Budget Processes: IPPBE & PPBE
The IC’s Intelligence Planning, Programming, Budgeting
and Evaluation (IPPBE) process allocates funding and
personnel resources supporting IC-wide capabilities
through the development and execution of the NIP and its
associated budget. The NIP addresses priorities described in
national security-related documents such as the National
Intelligence Strategy. The IPPBE process applies to all 18
components of the IC (IC elements are specified by 50
U.S.C. §3003(4)). Program managers control NIP resources
aligned with requirements for IC capabilities such as
geospatial intelligence, signals intelligence, and human
intelligence—capabilities that may span several IC
components.
