The FY2017 Coat Guard budget (included in the Department of Homeland Security budget) totals $10.3 billion. This is $0.6 billion less than enacted in FY2016 (excluding Overseas Contingency Operations supplemental funding).

The budget “preserves Coast Guard operations and continues recapitalization efforts for cutters, boats, aircraft, systems and infrastructure,” according to the Coast Guard's budget overview.

The FY2017 Coast Guard budget supports its three priorities: invest in the 21st century Coast Guard; sustain mission excellence; and maximize the Coast Guard's value to the nation.

Commandant of the Coast Guard ADM Paul F. Zukunft said the budget “illustrates the Coast Guard's dedication to strategically investing for the future while sustaining mission excellence.”

The request includes $8.4 billion in discretionary funding (to be appropriated by Congress) and $1.9 billion in mandatory funding (including retired pay).

Operating expenses account for $7.0 billion of the FY 2017 discretionary budget, slightly higher ($0.1 billion) than the enacted FY2016 level. These amounts fund Coast Guard operational activities worldwide, including personnel costs.

The FY2017 Coast Guard budget preserves critical front-line operations. The budget funds parity with the Department of Defense (DoD) in military pay (1.6 percent pay increase) and allowances and civilian pay (1.6 percent pay increase). It also provides operations and maintenance funding of new assets (e.g., NSC-6 &7, HC-130J, Fast Response Cutters 22-25, and the Rescue 21 C3 system), and shore-side support for Coast Guard facilities.

The FY2017 acquisition, construction, and Improvements discretionary request of $1.1 billion ($0.8 billion, less than FY2016) finances the acquisition of new assets and construction of new facilities and improvements to existing facilities.

The principal investments funded in the acquisition budget comprise: (a) $704 million for new vessels, including four Fast Response Cutters (FRC), accelerated production of the new Polar Icebreaker, final design and long-lead items for the Offshore Patrol Cutter (OPC), and In-Service Vessel Sustainment for the 140 ft domestic icebreaker fleet; (b) $201 million for aircraft, including H-65 helicopter enhancements/upgrades, missioning the first HC-27J airframes, and retrofitting the HC-144A fixed wing aircraft; (c) $59 million other asset initiatives including the GG-Logistics Information System and C4ISR development and upgrades; and (d) $51 million for shore projects such as pier and infrastructure improvements supporting the the FRC homeport at Galveston, Texas and facility modifications at Air Station Clearwater, Florida and Air Station Kodiak, Alaska.

The Coast Guard makes what it describes as “risk-based reductions” to maintain assets and sustain front-line operations. The budget reflects savings from fuel efficiencies throughout the National Security Cutter (NSC) fleet. The Coast Guard also proposes to decommission four Island Class Patrol Boats (to be replaced by FRCs) and one High Endurance Cutter (and accept delivery of one NSC).

Other details of the FY2017 Coast Guard budget are available in the Department of Homeland Security Coast Guard budget justification documents.