The Congressional Budget Office analyzed the Department of Defense’s plans between 2025 and 2029 as outlined in the 2025 Future Years Defense Program, or FYDP, and projected that defense costs under such plans would increase by 11 percent to $965 billion in 2039.
According to a CBO report published Wednesday, 64 percent of the cost increase would occur in operation and support.
Of the $99 billion increase in annual costs that CBO projects over a decade starting 2029, 32 percent would be for weapon systems development and procurement and 4 percent would be for infrastructure.
According to the 2025 FYDP, the defense budget would rise to $866 billion by 2029, reflecting a 1.9 percent increase from 2025.
CBO noted that the total costs of DOD’s plans between 2025 and 2029 would be about 4 percent or $154 billion higher than the department indicated in the 2025 FYDP.
From 2025 through 2039, the total costs would be approximately 5 percent or $677 billion higher than DOD stated in the current FYDP.
According to the report, DOD would need to reduce its plans or seek larger budgets to accommodate the higher costs.
