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GovCon Expert McAleese Expects Compromise of Up to 7% Rise in FY 2022 DOD Funding

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A McAleese & Associates report forecasts that Congress will reach a final compromise of 5 percent to 7 percent increase in fiscal year 2022 defense funding in late February or early March.

Jim McAleese, founder of McAleese & Associates and a three-time Wash100 winner, reported the compromise could increase the Department of Defense’s FY 2022 funding by $36 billion to $46 billion to hit $740 billion to $750B, up from the enacted funding level of $704 billion in FY 2021.

McAleese noted that Senate Minority Leader Mitch McConnell, R-Ky., called for equal “parity” in 2022 increases in both DOD and domestic funding and that the House Appropriations Committee will likely back the 5 percent jump in DOD’s funding for the current fiscal year.

According to the report, the Senate Appropriations Committee previously proposed a 13 percent rise in FY 2022 domestic funding in parallel with a 4.5 percent increase in defense funding to reach $736 billion.

McAleese explained that an absolute parity in allocation of about $118 billion of requested increase in overall discretionary funding for FY 2022 would provide an 8 percent rise, or $59 billion, in this year’s Pentagon funding to reach $763 billion.

The House Appropriations Committee-Defense is set to hold a hearing on Jan. 12 to assess the impact of continuing resolution on the military. The government is operating under a stopgap funding measure that will expire on Feb. 18.