Statement by Undersecretary of Defense (Comptroller)/Chief Financial Officer Michael McCord on Planning, Programming, Budgeting, Execution ReformDOD Convened Climate and[...]

The Planning, Programming, Budgeting, and Execution (PPBE) process has been one of the Department's foundational decision support systems since the 1960s. PPBE underpins how we support the National Defense Strategy, deliver capabilities at the speed of relevance, and apply the tools and technology needed to address emerging threats. This process has served the Department well for over 60 years, but continual improvements are essential to ensure we remain agile in achieving our mission and ensuring the success of our warfighters.

I look forward to leading the Department's PPBE reform agenda. We have already made tremendous strides and improvements as we continue to modernize. We remain committed to evaluating and evolving our capabilities and technologies so we can stay agile and prepared for the future fight.

Our PPBE reform agenda has multiple parts. DoD's most senior leaders are focused on refining our internal processes. Our annual budget development process has evolved to focus on matching our resources to our strategy from a joint perspective while highlighting critical issues for resolution. We also incorporated PPBE reform throughout the Strategic Management Plan, which, led by the Department's Performance Improvement Officer, is the Department's key framework for managing strategic priorities and goals in support of the National Defense Strategy.

Importantly, this year, the Commission on PPBE Reform released 28 overarching recommendations in its final report, which detailed a total of 35 distinct initiatives, and incorporated their 13 initial interim recommendations from 2023. I echo Deputy Secretary Hicks' statement that, "the Commissioners have put forward thoughtful and timely analysis and recommendations on a range of matters relating to effective defense resource management. I am grateful to them for their efforts to bring insight and attention to this important topic."

As part of the Department's PPBE reform agenda, Deputy Hicks endorsed 26 of the 35 distinct initiatives for full or partial implementation across DoD. These reforms require careful coordination with Congress, the Office of Management and Budget, and other key stakeholders. Although we are committed to advancing these reforms expeditiously, the timeline for their implementation will depend on the outcomes of cross-matrixed discussions and, where necessary, legislative actions. As the implementation plans mature, we reaffirm our commitment to collaborating with Congress and all stakeholders. We recognize that the success of these reforms depends on sustained cooperation and transparency, and we are dedicated to ensuring that our efforts lead to meaningful and lasting improvements in defense resource management.

Additionally, our resourcing process must evolve in concert with the Congress. Their partnership is essential to vesting the Department with the authorities it needs to continue delivering results in a dynamic global environment that can change overnight. We value and respect this collaboration and look forward to working together to find solutions that enable DoD

to remain competitive against our adversaries while preserving congressional oversight. We ask Congress to enact additional flexibilities now to prepare us for the future fight and urge them to undertake the single most important defense resourcing reform for our generation: a return to predictable and timely resourcing to ensure the federal government can meet our national security needs.

Lastly, I want to extend a sincere thank you to the many civilian and military members across the DoD who are leading the PPBE reform initiatives and contributing to mission success.

You can find more on the Department's PPBE reform initiatives on the Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer's website: https://comptroller.defense.gov/