Congress Set to Pass FY 2016 Omnibus Funding Bill

With a few days left before an existing short-term continuing resolution (CR) expires, the text of what is likely to constitute the final bill has been released. The legislation combines more than one trillion dollars in federal spending with adjustments to tax rules and provisions for increased cybersecurity and intelligence programs.

If the bill is passes, as is widely expected, it will remove concerns over the possibility of government shutdowns for the rest of the fiscal year and address funding for each of the agencies covered under the twelve individual appropriations bills that traditionally make their way through Congress.

The legislation provides a total of $1.1 trillion in base and Global War on Terror/Overseas Contingency Operations (GWOT/OCO) funding and abides by the terms set out in the two-year Bipartisan Budget Act of 2015 (BBA) by meeting the $548B defense and $518B non-defense base budget caps. The bill also encompasses authorizing legislation for the Intelligence Community and the Cybersecurity Act of 2015.

 

Department Highlights

Agriculture

The omnibus provides $21.8B in discretionary funding for the USDA, a 4.8% increase from the FY 2015 enacted level of $20.8B. Funding highlights include:

• $1.6B for the Farm Service Agency, the same as the FY 2015 enacted level.
• $1.35B for the Agricultural Research Service, an increase of 15.4%, or $18M more than the FY 2015 enacted level of $1.17B.
• $1B for the Food Safety and Inspection Service, the same as the FY 2015 enacted level.
• $898M for the Animal and Plant Health Inspection Service, an increase of 4.5%, or $859M more than the FY 2015 enacted level of $874M.
• $863M for the Natural Resources Conservation Service, a decrease of 16.3%, or $168M less than the FY 2015 enacted level of $858M.
• $683M for Rural Development, a decrease of 0.73%, or $5M less than the FY 2015 enacted level of $678M.
• $198M for the Foreign Agricultural Service, an increase of 5.3%, or $10M more than the FY 2015 enacted level of $188M.
• Up to $65M for the Modernize and Innovate the Delivery of Agricultural Systems (MIDAS) program at the FSA
• $34.6M for the Public Health Data Communications Infrastructure System at FSIS
• $28M to support USDA cybersecurity requirements
• $4.25M for IT infrastructure at APHIS
• $1.25M for the Food Animal Residue Avoidance Database Program at NIFA

Commerce

The Department of Commerce receives $9.2B in the omnibus, which is $0.7B more than the FY 2015 enacted budget and $0.6B under the FY 2016 request. Funding highlights include:

• Provides $1.1B for activities within the Periodic Censuses and Programs account and includes direction to prioritize increases in spending for the 2020 Census.
• The National Institute of Standards and Technology (NIST) receives $964M.
• Provides $690M for Scientific and Technical Research and Services (STRS) at NIST, included increases for Strengthening NIST Cryptographic Capabilities and Quantum-Based Sensors and Measurements. The National Strategy for Trusted Identities in Cyberspace (NSTIC) is integrated into the National Cybersecurity Center of Excellence (NCCoE), which receives $31.5M without any separate appropriation for NSTIC.

Defense

The Department of Defense (DoD) receives $514.1B in base discretionary funding, a $23.9 increase over FY 2015. DoD also receives $58.6B in Global War on Terror/Overseas Contingency Operations (GWOT/OCO) funding, in line with the latest BBA.

Defense-Wide

The omnibus provides $56B in discretionary funding for the Defense Agencies, approximately the same level requested in the President’s Budget for FY 2016. Funding highlights include:

• $32.1B in Operations and Maintenance funding, -0.92%, or $300M less than was requested in the President’s Budget for FY 2016.
• $5.2B in Procurement funding, 1.36%, or $700M more than was requested in the President’s Budget for FY 2016.
• $18.7B in Research, Development, Test, and Evaluation (RDT&E) funding, 2.2%, or $400M more than was requested in the President’s Budget for FY 2016.
• $161.8M in RDT&E funding for the Information Systems Security Program
• $141.3M in RDT&E funding for the Defense Information Systems Network (DISN)
• $100M in RDT&E funding for the Technology Offset Initiative
• $84.4M in Procurement funding for the Joint Information Environment
• $83.3M in RDT&E funding for C4I Interoperability
• $10M in RDT&E funding for Defense Information Infrastructure Engineering & Integration
• $2.5M in RDT&E funding for Insider Threat

Air Force

The omnibus provides $135B in discretionary funding for the Air Force, a decrease of 2.7%, or $3.8B, less than was requested in the President’s Budget for FY 2016. Funding highlights include:

• $35.7B in Operations and Maintenance funding, 6.5%, or $2.5BM less than was requested in the President’s Budget for FY 2016.
• $41.5B in Procurement funding, 0.7%, or $278 more than was requested in the President’s Budget for FY 2016.
• $25.2B in Research, Development, Test, and Evaluation (RDT&E) funding, 4.7%, or $1.3B less than was requested in the President’s Budget for FY 2016.
• $139.2M in Procurement funding for Communications Security (COMSEC) Equipment
• $98.7M in Procurement funding for AFNET equipment
• $67M in Procurement funding for Base Communications Infrastructure equipment
• $61.9M in Procurement funding for Mobility Equipment
• $177M in Procurement funding for Distributed Ground Systems
• $169.4M in RDT&E funding for Dominant Information Sciences and Methods
• $93.7M in RDT&E funding for Cyber Operation Technology Development, Advanced Components
• $60.3M in RDT&E funding for Tactical Data Networks Enterprise, Engineering and Manufacturing Development
• $241.4M in RDT&E funding for the Space Fence program
• $44.3M in RDT&E funding for the NEXTGEN JSTARS program
• $46.6M in RDT&E funding for the Information Systems Security Program

Army

The omnibus provides $110B in discretionary funding for the Army (not counting MILCON), a decrease of -1.8%, or $2B, less than was requested in the President’s Budget for FY 2016. Funding highlights include:

• $32.4B in Operations and Maintenance funding, 7.7%, or $2.7B less than was requested in the President’s Budget for FY 2016.
• $16.4B in Procurement funding, 2%, or $300M more than was requested in the President’s Budget for FY 2016.
• $7.6B in Research, Development, Test, and Evaluation (RDT&E) funding, 10.1%, or $700M more than was requested in the President’s Budget for FY 2016.
• $250.3M in Procurement funding for the Distributed Common Ground System-Army
• $222M in RDT&E funding for the High Performance Computing Modernization Program
• $133.3M in Procurement funding for the Joint Battle Command-Platform
• $105.7M in Procurement funding for Automated Data Processing Equipment
• $73.5M in Procurement funding for the Installation Information Infrastructure Modernization Program
• $31.1M in RDT&E funding for the Information Systems Security Program

Navy

The omnibus provides $135B in discretionary funding for the Navy, an increase of 0.3%, or $436M, more than was requested in the President’s Budget for FY 2016. The omnibus provides an additional $20.5B in discretionary funding for the Marine Corps, a decrease of 3.4%, or $726M, less than the budget request. Funding highlights include:

• $39.6B in Navy Operations and Maintenance funding, 6.2%, or $2.6B less than was requested in the President’s Budget for FY 2016.
• $47.6B in Navy Procurement funding, 7.3%, or $3.3B more than was requested in the President’s Budget for FY 2016.
• $18.1B in Navy Research, Development, Test, and Evaluation (RDT&E) funding, 1.3%, or $232M more than was requested in the President’s Budget for FY 2016.
• $5.7B in Marine Corps Operations and Maintenance funding, 8.2%, or $511M less than was requested in the President’s Budget for FY 2016.
• $1.2B in Marine Corps Procurement funding, 4.9%, or $55M more than was requested in the President’s Budget for FY 2016.
• $135.7M in Procurement funding for Cryptographic equipment for the Information Systems Security Program (ISSP)
• $118.1M in Procurement funding for the Navy Multiband Terminal (NMT)
• $275.6M fin Procurement funding or CANES
• $142.5M in RDT&E funding for the Tactical Data Links program
• $28.1M in RDT&E funding for the Information Systems Security Program

Energy

The Department of Energy receives $29.7B in the omnibus, which is $1.8B more than the FY 2015 enacted budget and $0.8B under the FY 2016 request. Funding highlights include:

• Provides $62M for Electricity Delivery and Energy Reliability cyber security including support for Cyber Security for Energy Delivery Systems, which includes $5M for development of an industry-scale electric grid test bed and no less than $5M to develop cyber and cyber physical solutions.
• Nuclear Energy Enabling Technology receives $112M including $2M for nuclear cyber activities.
• Supports vehicle technology including $141M for Batteries and Electric Drive Technology.

Health and Human Services    

HHS funding is part of the broader Labor, Health and Human Services, and Education Appropriation which totals $162.1B in discretionary funding which is $5.4B over FY 2015 enacted levels and $5.5B less than requested.  Funding highlights include:

• $7.2B in discretionary funding to CDC and $3.7B in discretionary funding for CMS.
• $32B for NIH to include $200M in funding for the new Precision Medicine Initiative.
• $681M for Health Care Fraud and Abuse Control activities.
• Does not include funding for either the proposed "Idea lab" or the Digital Services team.

Homeland Security

The Department of Homeland Security receives $41.0B in the omnibus, which is $1.3B more than the FY 2015 enacted budget and $0.4B less than the FY 2016 request. Funding highlights include:

• $310M for the Office of the CIO, which is $10.6M less than requested but $21.9M more than FY 2015. This includes an additional $4.7M for salaries and expenses and a reduction of $15.3M for IT Services.
• $11.1B for Customs and Border Protection (CBP), which is an increase of $358.8M over FY 2015 but $405.8M less that the FY 2016 request. This includes $829.4M for Automation Modernization of IT systems, up $21.3M over FY 2015, but $37.9M short of the requested budget.
• $ 5.8B for Immigration and Customs Enforcement (ICE), a $126.7M reduction over FY 2015 and $133.0M less than the FY 2016 request. This includes $53M for Automation Modernization of IT systems, which is +$27.0M and -$50.5 over the FY 2015 enacted and FY 2016 request, respectively.
• $4.9B of net discretionary for the Transportation Security Administration (TSA), a $26.7M increase over FY 2015 and a $78.2M increase over the budget request and includes $3.6B for Aviation Security, +$15.3B and +$89.7B over FY 2015 enacted and FY 2016 requested, respectively.
• $10.9B in total funds for the U.S. Coast Guard, including $160M of GWOT/OCO funds, an overall $880.0M increase over FY 2015 and a $1.2B raise over the FY 2016 budget request.
• $1.6B for the National Protection and Programs Directorate (NPPD), $133.2M over the FY 2015 level and $23.8M less than requested. This includes $1.3B for Infrastructure Protection and Information Security, up $102.3M over 2015 but $20.7 less than requested.
  • $818.7M for cybersecurity, up $65.5M and $406K over FY 2015 enacted and FY 2016 request, respectively.
  • $11.3B for the Federal Emergency Management Agency (FEMA), which is $544.1M above FY 2015 and $153.8M over the budget request. The total includes $7.4B for disaster relief.

Housing and Urban Development

The omnibus provides $38.6B in discretionary funding for HUD, an 8.4% increase from the FY 2015 enacted level of $35.6B.Funding highlights include:

• $26.9B for Public and Indian Housing, an increase of 1.9%, or $500M more than the FY 2015 enacted level of $26.4B.
• $11.3B for Housing Programs, an increase of 9.7%, or $1B more than the enacted level of $10.3B.
• $6.6B for Community Planning and Development Programs, an increase of 1.5%, or $100M more than the FY 2015 enacted level of $6.5B.
• $250M for HUD’s IT Fund to modernize its IT infrastructure

Interior

The Department of the Interior receives $12.0B in the omnibus, which is $1.3B more than the FY 2015 enacted budget and $0.1B under the FY 2016 request. Funding highlights include:

• The DOI’s Working Capital Fund receives $67M, including an increase over FY 2015 enacted levels to improve cybersecurity.
• Provides $1.1B for the management of land and resources.
• Resource Management within the U.S. Fish and Wildlife Services receives $1.2B.
• U.S. Geological Survey receives $1.1B for surveys, investigations and research.

Justice

The Department of Justice receives $29.1B in the omnibus, which is $2.1B more than the FY 2015 enacted budget and $0.1B under the FY 2016 request. Funding highlights include:

• Provided funding is expected to enhance DOJ efforts to combat cybercrime and cybersecurity.
• Funding for the Federal Bureau of Investigation (FBI) is provided at $8.1B, which is $0.3B under the FY 2015 enacted budget and $0.4B under the FY 2016 request.
• Funding for the Drug Enforcement Administration (DEA) is provided at $2.5B, which is $0.5B over the FY 2015 enacted level and $0.4B over the FY 2016 request.
• The National Security Division receives $95M for salaries and expenses to strengthen support for the Intelligence Community in identifying and disrupting cyber threats.

National Aeronautics and Space Administration

The National Aeronautics and Space Administration receives $19.3B in the omnibus, which is $1.3B more than the FY 2015 enacted budget and $0.8B over the FY 2016 request. Funding highlights include:

• Provides $2.8B for Safety, Security, and Mission Services, including $39.1M for Independent Verification and Validation services and supports the full request for cybersecurity, governance, and information security activities.
• Requires NASA to provide semiannual briefings on the Asteroid Redirect Mission, the James Webb Telescope, Orion and the Space Launch System.
• Provides $5.6B for Science including $1.9B for Earth Science, $1.6B for Planetary Science, $731M for Astrophysics, and $37M for Education and Public Outreach.
• $5.0B for Space Operations, including $15M to continue servicing satellites.
• Space Technology receives $687M, which includes $133M for satellite servicing (in addition to any Space Operations funding to support International Space Station satellite service activities).
• $4.0B for Exploration, including $1.3B for the Orion Multi-purpose Crew Vehicle and $2.0B for the Space Launch System (SLS).

State and International Programs

The Department of State receives $53B which includes $38B in base discretionary funds and $15B in GWOT/OCO funding. This total is $3.4B above the FY 201 5 enacted level and $1.3B less than requested. Funding highlights include:

• $16.3B in State Department operational base and contingency funding, $632M over FY 2015 and $1.1B less that the budget request.
• $5.6B for embassy security, $175M above the 2015 enacted level and $1.9M above the budget request.
• $1.5B for USAID, a $110M increase over 2015 and $174M below the requested level.

Transportation

The omnibus provides $18.7B in discretionary funding for the DOT, a 4.75% increase from the FY 2015 enacted level of $17.8B. Funding highlights include:

• $16.3B for the Federal Aviation Administration, an increase of 3.6%, or $563M more than the FY 2015 enacted level of $15.7B.
• $2.4B for the Federal Transit Administration, an increase of 5.1%, or $118M more than the FY 2015 enacted level.
• $1.7B for the Federal Railroad Administration, an increase of 4.9%, or $800M more than the FY 2015 enacted level.
• $869M for the National Highway Traffic Safety Administration, an increase of 4.7%, or $39M more than the FY 2015 enacted level.
• $832M for the Office of the Secretary, an increase of 3.6%, or $29M more than the FY 2015 enacted level.
• $580M for the Federal Motor Carrier Safety Administration, a decrease of 0.68%, or $4M less the FY 2015 enacted level.
• $429M for the Federal Highway Administration, an increase of 0.7%, or $3M more than the FY 2015 enacted level.
• $806M for programs related to NextGen en route systems
• $235M for Data Communications in Support of the Next Generation Air Transportation System
• $37.4M for the System-Wide Information Management program
• $8M for departmental cybersecurity initiatives

Treasury

Treasury funding is part of the Financial Services Appropriations.  Treasury’s discretionary funding totals $11.9B for FY 2016 which is $420M over FY 2015 enacted levels and $1.5B less than requested. Funding highlights include:

• Requires the department to provide a report to the Committees on Appropriations on cloud computing progress and usage by November 30, 2016 to include plans for the expansion of cloud computing to leverage the utility-based model.
• $11.2B for the Internal Revenue Service, including $2.2B for taxpayer services and $4.9B for enforcement efforts and $290M for business systems modernization.
• $113M for Financial Crimes Enforcement Network.
• The bill does not provide any additional funds for the IRS to implement the Affordable Care Act.

Veterans Affairs

VA funding is part of the broader Military Construction/Veterans Affairs Appropriations.  VA’s discretionary funding totals $71.4B for FY 2016.  Funding highlights include:

• After two failed attempts at replacing its 1980s financial management system, and subsequently abandoning plans to replace it, the bill directs VA to make the development of a financial management system, whether acquired or created, a top priority for 2016.
• The bill directs VA to submit a comprehensive strategic plan to reduce the unnecessary use of Social Security numbers and VA's reliance on them.
• $4.1B for information technology systems which includes over $500M for DME.
• $183M for VistA Evolution.
• $50M for interoperability and Virtual Lifetime Electronic Record (VLER) Health.
• $253M in information technology funding for the Veterans Benefits Management System which processes disability claims.
• $19M for the claims appeals modernization efforts.
• $17M for the Medical Care Collection Fund Electronic Data Exchange for providers.
• $10M for the Electronic Data Exchange for payers.
• The bill urges VA to increase the number of contract awards on T4NG to a minimum of 24, distributed equally between small and large vendors.

Intelligence Community

The omnibus includes the Intelligence Authorization Act for Fiscal Year 2016 (Division M) and appears substantially the same as the bill which decisively passed the House on December 1. The total funding authorized by the bill is consistent with the Bipartisan Budget Act passed in November.  Several provisions in the bill include:

• Strategy for comprehensive interagency review of overhead satellite architecture that aims to produce innovative satellite systems in less than five years and takes advantage of commercial technology and acquisition approaches.
• Reports on strategies to detect/deter ISIS revenue streams, effects of OPM data breach, small business contracting, standards to measure the impact of cyber-attacks, reduction of analytic duplication, IC hiring graduates form the Cyber Corps Scholarship Program, continuous evaluation of security clearances, and retention of call detail records.
• Authorizes funds to thwart cyberattacks and insider threats and recover from unauthorized disclosures of intelligence capabilities

Cybersecurity Act of 2015

The bill includes the Cybersecurity Act of 2015 which has been moving through both chambers and contains the following provisions:

• Creates a voluntary cybersecurity information sharing process that encourages public and private sector entities to share cyber threat information.
• Removes legal barriers to sharing and the threat of unfounded litigation while protecting private information.
• Improves federal network and information system security.
• Provides assessments on the federal cybersecurity workforce.
• Provides reporting and strategies on cybersecurity industry-related and criminal?related matters.

Fellow GovWin Federal Industry Analysis (FIA) analysts Kyra Fussell, Angela Petty, and Alex Rossino contributed to this entry.