Insights and Implications: FY 2020 Federal Budget Request

Published: April 16, 2019

FeaturedFederal Market AnalysisBudgetForecasts and SpendingInformation TechnologyPolicy and LegislationPresident Trump

Deltek’s Insights and Implications: FY 2020 Federal Budget Request examines the priorities, initiatives and information technology trends within the President’s FY 2020 budget request.

NOTE: This report was published before the Office of Management and Budget's (OMB) data update. While total IT numbers are consistent, the OMB update included additional investment-level detail. Please visit the Excel file accompanying this report or the GovWin IT Budget Database (under the Federal>Market Analysis tab) for revised IT budget data.

Deltek’s Insights and Implications: FY 2020 Federal Budget Request analyzes the proposed program investments and policy directives within the Trump Administration’s $1.3T discretionary budget request, which includes $718.3B in Defense and $594.5B in Civilian discretionary budgets and the $87.1B Information Technology budget.

In this third budget request from the Trump Administration proposes adhering to the original Defense and Non-Defense discretionary budget caps laid out in the Budget Control Act (BCA). Rather than look to Congress to pass yet another bipartisan bill setting new discretionary caps, the Administration proposes doubling Overseas Contingency Operations (OCO) funding – which is exempt from sequestration – to effectively raise overall Defense spending without violating BCA caps.

The FY 2020 budget supports key policies, programs and agency reforms consistent with Administration priorities, such as national defense and force readiness, border security, public safety, veteran care and addressing the opioid epidemic. As a mission enabler, the Administration continues to emphasize IT modernization and investments in key technologies, presenting potential opportunities in cloud computing, artificial intelligence, automation and cybersecurity.

Key Findings

  • The FY 2020 budget requests a significant increase in DOD funding at the expense of civilian agency budgets. It also proposes shifting billions in DOD base funding to Overseas Contingency Operations (OCO) accounts, which are exempt from sequestration.
  • Priorities remain consistent: national defense readiness, border security, IT modernization, cybersecurity, R&D, and healthcare.
  • Requested funding for Defense prototyping is up more than 20%, suggesting that the use of Other Transaction Authority (OTA) for commercial acquisitions will continue growing in FY 2020.
  • The Trump Administration is requesting a relatively flat IT budget, with spending boosts planned in key areas, including Census 2020, VA electronic health records and claims processing, FAA modernization, and cybersecurity.
  • Federal investment in AI is advancing rapidly, with significant budget increases proposed within both civilian and Defense agencies.
  • IT investment transparency has been significantly limited by OMB, which continues transitioning agencies to the Technology Business Management (TBM) Framework.
  • Critical Insight for Vendors

    This report delivers a comprehensive view of upcoming federal spending plans. Its purpose is to augment business development planning through strategic and tactical insight into the budget request.

    The report provides:

  • Top FY 2020 Administration priorities
  • Federal initiatives driving IT investment and acquisitions
  • Analysis of agency discretionary and IT budgets, priorities and initiatives
  • Departmental technology spending on Development, Enhancement and Modernization (DME) versus Operations and Maintenance (O&M) funding
  • Deltek's Insights and Implications: FY 2020 Federal Budget Request report is delivered in PowerPoint® format, including a PowerPoint® Executive Briefing, and an Excel® data workbook.

    Insights and Implications: FY 2020 Federal Budget Request

    Introduction

    Discretionary Budget

    IT Budget

    Agency Budget Outlook

  • Air Force
  • Navy
  • Army
  • Defense Agencies
  • Health and Human Services
  • Veterans Affairs
  • Homeland Security
  • State/USAID
  • Energy
  • Justice
  • NASA
  • Agriculture
  • Transportation
  • Commerce
  • Treasury
  • Snapshots: Housing and Urban Development, Labor, Education, Interior, Social Security Administration, General Services Administration, Environmental Protection Agency, US Army Corps of Engineers, National Science Foundation, Small Business Administration, Office of Personnel Management, and the Nuclear Regulatory Commission
  • Conclusions and Recommendations