A new Congressional Budget Office report says the enactment of the House Armed Services Committee’s defense policy bill for fiscal year 2017 would reduce the Defense Department’s direct spending by approximately $206 million over the next 10 years.
CBO said in a report published Wednesday that the allocation of $603.3 billion in total funds for DoD’s military functions and other activities of the Energy Department under the National Defense Authorization Act for Fiscal Year 2017 would result in $587 billion in total outlays over a five-year period beginning in 2017.
The agency estimates that some provisions of the proposed bill would increase the net costs of DoD programs by approximately $24 billion over a four-year period starting in 2018.
CBO cited the Pentagon’s procurement initiatives, force structure, and benefits and compensation as some of the programs that would be affected by such provisions.
The proposed bill contains private-sector or intergovernmental mandates and that aggregate costs of compliance with such mandates would not go beyond the annual threshold established in the Unfunded Mandates Reform Act, according to CBO.
The agency added that the passage of the bill would not result in on-budget deficit growth “in any of the four consecutive 10-year periods beginning in 2027.”