https://crsreports.congress.gov
March 2, 2020
FY2021 Budget Request for the Military Health System
On February 10, 2020, President Donald Trump submitted
his Fiscal Year (FY) 2021 budget request to Congress. The
Department of Defense (DOD) budget request totals $705.4
billion, including $50.8 billion (7.2%) to fund the Military
Health System (MHS). DOD refers to this latter portion of
the DOD budget request as the unified medical budget
(UMB). The MHS delivers certain health entitlements
under Chapter 55 of Title 10, U.S. Code, to military
personnel, retirees, and their families. The MHS provides
health care to approximately 9.6 million beneficiaries in
DOD hospitals and clinics—known as military treatment
facilities (MTFs)—and through civilian health care
providers participating in TRICARE.
Congress traditionally appropriates mandatory and
discretionary funding for the MHS in several accounts
within the annual defense appropriations bill. These include
the Defense Health Program (DHP), Military Personnel
(MILPERS), and Military Construction (MILCON).
Funding is typically appropriated to both DOD’s base and
overseas contingency operations (OCO) budgets.
FY2021 MHS Budget Request
The FY2021 MHS budget request is 1.2% ($0.6 billion)
below the FY2020 appropriation. The request, as shown in
Table 1, includes the following:
$33.1 billion for DHP;
$8.9 billion for medical MILPERS;
$0.5 billion for medical MILCON; and
$8.4 billion for health care accrual
contributions to the Medicare Eligible
Retiree Health Care Fund (MERHCF).
Defense Health Program (DHP)
The DHP funds numerous MHS functions, such as health
care delivery in MTFs, TRICARE, certain medical
readiness activities and expeditionary medical capabilities,
education and training programs, medical research,
management and headquarters activities, facilities
sustainment, procurement, and civilian personnel. The
FY2021 request for the DHP account is $33.1 billion,
which is 3.8% ($1.3 billion) below the appropriated amount
for FY2020. Table 2 highlights selected programs that
DOD intends to create, expand, reduce, or transfer to the
military services.
Military Personnel (MILPERS)
Medical MILPERS funds military personnel within the
MHS. This includes various pay and allowances, such as
basic, incentive, and special pays; subsistence for enlisted
personnel; permanent change of station travel; and
retirement contributions.
Table 1. Military Health System Funding, FY2018-FY2021 Request
($ in billions)
Sources: Department of Defense (DOD), “Defense Budget Overview,” February 2020, p. 2-4; DOD, “Defense Health Program Fiscal Year (FY) 2021
Budget Estimates,” February 2020, p. DHP-15; DOD, “Defense Health Program Fiscal Year (FY) 2020 Budget Estimates,” March 2019, p. DHP-13; DOD,
“Defense Health Program Fiscal Year (FY) 2019 Budget Estimates,” February 2018, p. DHP-15.
Notes: Numbers may not add up due to rounding. Not included in the FY2021 request is Congress’s typical add-ons to the DHP, such as unrequested
medical research funding. The Software & Digital Technology Pilot Program is a new DHP budget activity realigned from Operations and Maintenance in
FY2021. Congress appropriates discretionary funding for the DHP, MILPERS, and MILCON accounts and mandatory funding for MERHCF contributions.
