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What You Need to Know About the Next Defense Budget

The Pentagon's overseas contingency operations account, which has been tacked onto the budget for years to fund the wars in Iraq and Afghanistan, could serve as a budget gimmick.

It's supposed to be emergency war spending. But the OCO—which is not subject to the budget caps—may encompass other priorities that should, theoretically, be in the Pentagon's base budget.

This happened in fiscal 2014, when th­­e cost per troop in Afghanistan skyrocketed to over $2 million from a remarkably stable $1.3 million in previous years, according to Todd Harrison at the Center for Strategic and Budgetary Assessments. The Pentagon apparently added at least $20 billion—and Congress another $10 billion—to the fiscal 2014 OCO account, for things not directly related to war, like depot maintenance for major weapons systems, and pay and benefits for service members not necessarily contingent on deployments.

The fiscal 2014 war funding request was $79 billion, for some 38,000 troops in Afghanistan. "If we see the troop level drop to about 10,000 in 2015, we should see a significant reduction in the budget—by almost a quarter," Harrison said. If the cost per deployed troop is higher—even as the size of the U.S. force is lower, and the scope of military operations smaller—that's a "good indicator we're adding costs in there that don't belong there."