www.crs.gov | 7-5700
February 20, 2018
FY2018 Defense Spending Under an Interim Continuing
Resolution
Background
On September 8, 2017, Congress passed and the President
signed H.R. 601 (P.L. 115-56), the Continuing
Appropriations Act, 2018, and Supplemental
Appropriations for Disaster Relief Requirements Act, 2017.
In addition to providing supplemental appropriations in
response to Hurricane Harvey and temporarily suspending
the statutory limitation on public debt, the bill provided
temporary funding in FY2018 for certain programs and
activities typically funded by regular appropriations bills.
Commonly referred to as an interim continuing resolution
(CR), Division D of H.R. 601 provided budget authority for
continuation of certain projects or activities funded in
FY2017.
Division D of H.R. 601 was extended through March 23,
2018 by four measures: Division A of H.J.Res. 123 (P.L.
115-90); Division A of H.R. 1370 (P.L. 115-96); Division
B of H.R. 195 (P.L. 115-120); and Division B of H.R. 1892
(P.L. 115-123). Division C of H.R. 1892 also increased the
discretionary spending limits set by the Budget Control Act
(BCA/P.L. 112-25) for FY2018 and FY2019.
Division D of H.R. 601 as extended will be referred to
herein as the FY2018 CR.
Funding Rate
An interim CR typically funds activities under a formulaic
approach that provides budget authority at a restricted
level―not a specified amount. This method of providing
budget authority is commonly referred to as a funding rate.
The funding rate for a project or activity is calculated as the
total amount of budget authority annually available based
on a reference level, multiplied by the fraction of the fiscal
year for which the funds are made available in the CR. In
recent years, the reference level has generally been based
on the amount of budget authority made available under the
prior year’s appropriations, reduced as required to comply
BCA limits.
The FY2018 CR provides budget authority for FY2018 for
most projects recent years, the reference level has generally
been based on the amount of budget authority made
available under the prior year’s appropriations, reduced as
required to comply and activities at the rate at which they
were funded during FY2017 minus 0.6791% effective
October 1, 2017, through March 23, 2018. The law funds
Overseas Contingency Operations (OCO) at the full
FY2017 rate (not subject to the 0.6791% reduction).
Table 1 provides an annualized FY2018 CR rate―an
estimation of the budget authority provided to DOD if the
terms of the FY2018 CR were extended until the end of
FY2018. This estimated annualized CR rate is
approximately 9% less than the President’s budget request.
The rate for operations provided under the CR is 13%
below the President’s budget request for Operation and
Maintenance (O&M) accounts—funding that provides for
readiness activities such as training, equipment
maintenance, logistics and civilian personnel pay. Research,
development, test and evaluation (RDT&E) funding is 15%
below the requested funding amount for FY2018.
Potential Effects of a CR on DOD Programs
Interim CRs typically are designed to preserve
congressional funding prerogatives until annual budgetary
decisions are made, while avoiding a government
shutdown. By its very nature a CR provides funding quite
differently from a regular appropriations bill, if only
because funding levels are set to continue at or near the
previously appropriated level.
Table 1. DOD Base Discretionary Budget Authority and Estimated CR Budget Authority (Select Accounts)
FY2018 CR
Annualized Rate
FY2018 CR vs.
FY2018 Request
Operation and Maintenance (O&M)
Research and Development (R&D)
Revolving and Management Funds
Source: H.Rept. 115-219, Committee Report to Accompany Department of Defense Appropriations Bill, 2018, and H.R. 601(P.L. 115-56).
Notes: The annualized FY2018 CR rate is an estimate of the budget authority provided if the terms of H.R. 601were extended until the end of
FY2018. Does not include Overseas Contingency Operations funding. Dollars in billons; totals may not reconcile due to rounding.
