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50 Questions Your Business Plan Should Answer

S adly, most investors don't read business plans. However, writing one is the only way you will be able to answer the following 50 questions which an investor will ask you:

1. What is the price of your product or service and why?

2. How much capital is required to execute your business plan?

3. How much is the company is worth?

4. What existing products/services does your company provide?

5. What is the use of the proceeds?

6. On a summary basis, what is the historical financial performance of the company (even if, and perhaps particularly if, you have no revenues)?

7. On a summary basis, what is the projected financial performance of the company?

8. What new products/services are being developed and when will they be ready for market?

9. What is the size of the market for your product in dollars?

10. What is the size of the market in terms of units?

11. How has the market for the product/service changed over the past 5 years and why?

12. How do you anticipate it will change going forward?

13. At what rate is the market for your product growing?

14. Is the competition highly concentrated or highly fragmented?

15. What is your distribution channel and why is it the best one?

16. On a broad level, what are the elements of your marketing strategy?

17. What does it cost to generate a lead, and what is the ratio of leads to sales?

18. What funding is being allocated to new product development from the financing and from ongoing operations?

19. How many potential customers have you talked to?

20. What are the gross and margins on your product/service? Why are they superior or inferior to a competitor?

21. What is your assumptions on the bad debt and collection period for outstanding receivables?

22. What are your working capital needs once sales take off and how will these needs be addressed?

23. What will happen to gross and operating margins as sales rise and why?

24. What percentage of your sales are recurring?

25. Who are your top five executives and what is their professional and educational background?

26. What regulatory or legal threats are present?

27. Are there international markets for this product and is the company positioned to take advantage of them?

28. Who is the largest competitor in your industry?

29. What criteria will be used to choose locations for geographic expansion?

30. How will you get this product into mass market distribution channels?

31. Is the product/service patented?

32. Who are your suppliers and or vendors?

33. Do you have more than one for each supplier/vendor of your basic raw materials or services?

34. What are your payment terms with vendors or suppliers?

35. What will cause gross and operating margins to improve as volume increases or decreases?

36. Where is the company located and how many square feet does it lease or own?

37. What is the length of the sales cycle?

38. How did you estimate returns and allowances?

39. How are sales personnel compensated? Incentivized?

40. What, as a percentage of sales, is the industry norm for R&D expenditures?

41. What is the earnings multiple of public companies like yours?

42. What is your immediate marketing objectives?

43. Does the company have a board of directors or advisors?

44. What is the ownership structure of the company? Who else is an owner?

45. How has the company been financed to date? What other financial transactions have occurred in the past?

46. Has the product generated any publicity? Where?

47. How old are the current liabilities on the balance sheet?

48. Who has prepared the historical financial statements and have they been compiled, reviewed or audited?

49. Is there any cyclically in sales?

50. What are the competitive advantages of your products?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

David Evanson

David R. Evanson has more than 30 years working in the media, on Wall Street and in media relations. He has worked with investment banks, asset managers, private equity investors and institutional brokers on a variety of marketing and communications challenges. David is also a recognized financial writer, having authored five books on finance and economics, and articles in Barron’s, Forbes, Investment Dealers’ Digest, On Wall Street, Financial Planning and Entrepreneur, among others. David brings to the table a well-developed understanding of the capital markets, investments and corporate finance, and a talent for creating targeted media communications programs for financial services providers.

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6 Critical Questions Your Business Plan Must Answer If you want to lay the groundwork for a stable business and attract investors, make sure you're hitting these points.

By Larry Alton • Mar 18, 2015

Opinions expressed by Entrepreneur contributors are their own.

Never underestimate the importance of your business plan . It is the backbone of your company, a foundational pillar from which your enterprise will be built. It's going to serve as the first impression for countless potential partners and investors, and it's going to serve as a roadmap for your whole business -- at least for the first several years.

In some ways, writing a business plan is easy -- there are no rules or requirements for length, format, presentation, or even subject matter. But finding the right answers to the right questions is critical if you want to lay the groundwork for a stable business and attract sufficient attention from investors.

Related: 25 Common Characteristics of Successful Entrepreneurs

1. What need are you addressing?

This is an important question because it extends beyond the simple "What does your business do?" It's one thing to outline your business in general, describing what products you make or what services you offer, but if you want a solid business plan you have to take it to the next level.

It's nice to imagine your business as providing something useful, and if you're excited about the idea, it's that much easier to think about people buying it. But you need to be logical and critical when you consider the driving force behind your customers' purchasing decisions: what fundamental customer need is your business addressing? You'll want to back this up with research that shows the need actually exists.

2. What makes you different?

It's a big world out there, and startups are constantly coming on and off the radar. Chances are, there are multiple businesses out there who are already serving the crucial need you outlined from question one. That doesn't mean you can't serve it better, or serve it in a different way, but therein lies the challenge—figuring out what makes you different.

First, you'll need to acknowledge all the major players in your space, and this is going to require some research. Acknowledge what they're doing right, what they're doing wrong, and how they're going about their business. Identify the differentiating factor that will allow you to stand out, and emphasize it.

Related: Struggling to Define Your Business Goals? Ask Yourself These Questions.

3. Who is your audience?

Here's a hint: the answer can't be "everybody." No matter how useful or practical your product or service is, there's no way you're going to be able to sell to everyone in the world. Think about factors like age, sex, education, geographic location, working status, marital status, and perform some preliminary market research to determine the best path forward.

Your key demographic may evolve over time, so don't stay too committed to one niche. Also remember, that it's easy to expand to other markets once you've established yourself in one, so if you have multiple key demographics, it may be wise to focus on one to start things off.

4. How is your business going to make money?

This seems like an obvious question to answer, but you'd be surprised how many entrepreneurs fail to elaborate on their plan. The brief answer to this question is "sell products/services," but how are you going to sell? Where are you going to sell? How much are you going to sell for?

The other side of the question is what are your operating expenses? Who are you going to pay? What services or partners will you need to pay for? And ultimately, will the amount you sell be able to surpass the amount you owe? When will you break even?

5. How will you promote your business?

Promoting your business is just as important as creating it. Otherwise, people will never know who you are. Your marketing strategy should start off based on what similar businesses before you have done. Do they rely on traditional advertising or online marketing? Do they attend tradeshows and local events, or use technology to spread the word about their existence?

Related: The Ultimate Guide to Writing a Business Plan

6. What do you need to get started?

For many potential partners and investors, this is the bottom line. All businesses have to start somewhere, but that starting line varies dramatically from industry to industry and from entrepreneur to entrepreneur. Do you need any advanced equipment? Who will you need to hire? How much will you need for an initial run? These questions should give you an idea exactly how much capital and what resources you need initially.

It may seem counterintuitive, but answering these questions isn't a one-time process. Your business plan should be a living, changing document that evolves along with your company. Throughout your course of entrepreneurship, you're going to encounter new challenges, new opportunities, and hundreds of factors you never considered as significant to your business when you were writing the initial plan. To survive, you're going to have to revise your answers to these questions and update your business plan accordingly.

Related: The Essential Ingredients to Startup Success

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In Defense of the Business Plan

The business plan is under attack and deservedly so. Why spend so much time writing a fictional plan when you are pretty much certain that the odds of it translating to reality are near to zero? Framed this way it is indeed difficult to see why a rational person would venture out to write a business plan! As my colleague Toni Dávila recently pointed out Business Plans Should Move to the Back Seat .  

What it’s not

However, critiquing the business plan based on its predictive performance may miss the point . The culprit perhaps is the word “plan,” that leads us to believe that a business plan is something to be executed with minimal deviations from the original, akin to conventional capital budgeting or financial plans.  That is definitely not the case. A business plan is not a plan!

This would not come as a surprise to those who have read and interiorized the classic William A. Sahlman piece on business plans: “ How to write a great business plan .” He rightly pointed out (long before the slew of criticism thrown at business plans for their poor predictive track record as well as the dot-com bubble, vastly fueled by investments in dubious and not so rigorous business plans):

“What’s wrong with most business plans? The answer is relatively straightforward. Most waste too much ink on numbers and devote too little to the information that really matters to intelligent investors. As every seasoned investor knows, financial projections for a new company – especially detailed, month-by-month projections that stretch out for more than a year–are an act of imagination.”

A business plan is essentially a document that presents the entrepreneurs vision and execution plans with its associated risks and rewards for consumption of investors . The goal is to help investors assess the business and make an informed decision. It is essentially an analysis and communication tool for the entrepreneur to provide the investor , akin to a due diligence report when buying a company for example. Therefore, if as an entrepreneur you are bootstrapping your business or are at a stage where the uncertainties are too high for you to grapple with, the business plan may be of little utility.

So indeed Business Plans Should Move to the Back Seat when demand uncertainties are too high and need to be further investigated and comprehended. In such cases the goal should be to search for a scalable business model through a deep understanding of the market by rigorous research and most importantly experimentation in the field. This crucial phase of the entrepreneurial process definitely does not require a business plan to be written beforehand!

Why it’s important

However, it is also certain that it is during this process that the entrepreneur generates the insights and knowledge that will form the basis of the business plan that will allow her to approach investors to raise financing for her startup if so desired. A business plan apart from providing information to investors is also a symbol of you as a person . It reflects how thoughtful, thorough, honest and diligent you are. Whether the plan is a 40-page document or a 20-slide pitch deck, at the end of the day it should reflect you and your vision and convictions while providing the necessary information to investors to make an informed decision .

Furthermore, we must also realize that a business plan is just the start of long journey full of ups and downs for both investors and entrepreneur. Risk is unavoidable in a startup and there are no tools that can predict the future with any accuracy. Thus it is crucial to realize that, “a business plan must not be an albatross that hangs around the neck of the entrepreneurial team, dragging it into oblivion. Instead, a business plan must be a call for action, one that recognizes management’s responsibility to fix what is broken proactively and in real time .” After all, investing in a fledgling startup is an act of faith based on trust. Both parties must strive to uphold that trust in the long journey to nurture a new venture.

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One thought on “ In Defense of the Business Plan ”

Good post, Anindya. I just read your colleagues post about business plans moving to the back seat as well. You both had some good points. I tend to be a little more on your side of things. Any good plan in business or military (I’ve been in both) must be well researched, well thought, out, but also be flexible, and have backup plans…contingencies. Most new startups that I’ve seen don’t fail because they over-planned…they fail because they had NO plan. The trick is to keep it flexible…adaptable, and see it as a work in progress. But I do agree with Toni in one sense because I do think too many people spend so much time on their initial business plans that they miss opportunities and don’t actually have time DO the business they were passionate about. I was talking with one of my good friends who’s starting an event planning business, and she was really stressed about having everything perfect right off that bat. I gave her some advice to not stress so much about the initial perfection, but get some key things done that would allow her to get started and learn on the fly. She took my advice and a couple months later she’s getting some clients and her business is at least off the ground. So, as I said on Toni’s post, I think the key is balance.

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8 Critical Questions Every Business Proposal Must Answer

Sooner or later you’re going to write a business proposal, either because someone asked for it, or because you want to make a persuasive case that leads to a sale. Where do you start? What should you include? What are the rules? Since one of the goals of a business proposal is to persuade a potential customer to do business with you, it is important that you answer all questions.

Notice I use the word "persuade."

Not only are you trying to drum up business by introducing yourself to potential customers, but you are also trying to make a first and last impression on your prospect. So you want to ensure the proposal does its job- acting as a formal and much more dignified selling tool.

Let’s First Understand the Basics

There’s a lot of confusion on what a business proposal actually entails, so before we get to the questions your proposal must answer, let’s first learn the basics of a business proposal.

A business proposal is a document sent to a prospective client, outlining the products or services you’re offering and explaining why you’re the best. At the bare minimum, its primary objective is to provide a compelling solution to a problem faced by a client ( https://www.inc.com/encyclopedia/business-proposals.html )

That being said, a successful proposal usually results in a contract. But because there is usually a significant distinction between a proposal and a contract, your proposal should be laid out in a question and answer format.

However, there is an exception. If your proposal is in response to an RFP or RFQ, it may contain formatting instructions that you have to follow. In this case, a question and answer format may not be practical ( https://www.clientpoint.net/types-of-business-proposals/ ).

Key Questions to Answer in Your Proposal

Writing a business proposal is easy- there are no set rules or pre-requisites for format, presentation, length or even subject matter. But finding the right answers to the right questions is critical if you want to attract sufficient attention from a potential client. We compiled a list of the typical questions your business proposal must answer:

1. Who are you and What Are Your Qualifications?

Go ahead, brag a bit- this is the section where you get to convince your potential customer that you are the most qualified person for the job. You can start by presenting your company and mission in a way that relates to your client’s needs. Feel free to include a brief story that will give your customer a feel for your brand and help build trust. The function of this section is to grab the attention of the customer so he will read the whole proposal and not just skip to the pricing details, like most clients do.

2. What Are the Client’s Problems?

The secret behind writing a winning business proposal is understanding what the customer’s problems are and offering the best solution to these challenges. This part is paramount because you cannot expect to seal a deal if you don’t know what the client’s problems are ( https://www.clientpoint.net/ultimate-business-proposal-checklist/ ). Most customers will decide whether they are going to read the rest of the proposal just by going through this section. So take this opportunity to show your client that you fully understand their needs and are aware of the issue they want to solve.

3. How Do You Plan To Solve the Problems?

This is the million dollar question your proposal has to answer. In this segment, you need to outline how you’re going to tackle the project from the beginning to the end. Get into the nitty-gritty of the steps you’ll take, highlighting anything notable that sets you apart from the competition. Ensure that you make it realistic with accurate statistics and sound projections, so the client knows exactly what they are agreeing to upfront. This section simply speaks into the details the project will be responsible for, and addresses each and every need in the most comprehensive way.

4. How Long Will Your Proposed Project Take?

Be clear with your prospective client, how long it will take for you to complete the project. Here, you should ensure that you set out realistic expectations so that both of you are on the same page right from the onset. While you might be tempted to underquote the time frame, it’s usually not a good idea. Don’t promise what you may not deliver. If you’re offering a product, time frames might not be applicable, so feel free to omit them. The format of a proposal is usually very flexible, so tailor it to suit your business.

5. How Much Will it Cost?

Cost is a fundamental component of your business proposal. In fact, it’s almost certainly what the client is going to spend most time combing through. How you outline this part depends entirely on what solutions you’re offering. An itemized fee summary may be sufficient if the solution proposed will serve for a short period; otherwise, a fee schedule for periodic milestones may be appropriate if the solution will serve an extended period. If there are any legal/contractual issues to be addressed, such as licensing or permits, include this information here.

6. What is the Return on Investment?

This is the section many people miss. Maybe, it’s assumed that the client will immediately see the return on investment, but that’s highly unlikely. A proposal is your final sell- so don’t be afraid to detail to your prospect what they have to gain by choosing your business. If possible, spell it out so that the client can fully comprehend how your solution will either make money or save money. Being able to demonstrate the return on investment adequately, can almost win you a deal majority of the time ( https://www.entrepreneur.com/encyclopedia/return-on-investment-roi ).

7. Who Will Work on the Project?

For you to clinch a deal, the people you plan to use cannot be left to speculation. This is the section where you get to some level of detail explaining the team members behind the project. Start by identifying each team member and writing a short resume for each. This will not only help the client know the team, but the individual members as well ( https://www.inc.com/geoffrey-james/how-to-write-a-winning-proposal.html ). However, be careful to keep the jargon to a minimum. You want the client to have a clear and concise document. Perhaps, the best way to present this part is to use bullet points.

8. What Is Your Company’s Experience with Similar Projects?

This is your final chance to leave your client with a testimonial from a customer who has had a favorable outcome with your solution. The good thing about testimonials is that they have the power to influence even the most hesitant customers. Let’s call them the trust signals of a proposal. With a testimonial, you have the chance to make a strong final impression on the customer. Not only will it double your chances of closing, but you can as well be prepared to make your potential client smile and then give you a call.

Happy proposal writing.

___________________________________

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If you really want your business proposals, quotes and contracts to stand out and give you the best chance at winning new clients, use ClientPoint Software. It makes creating and formatting professional business proposals, quotes, and contracts fast and easy.  Click here to get a free demo of ClientPoint Software or call us at 888-972-7375 .

Click here to read a case study of how ClientPoint Software helped a business double sales.

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Presentation tips, 10 ways to quickly improve your business presentation skills, proposal writing tips, what to write in a business proposal to land more clients, how to write a business proposal cover letter.

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6 Questions Every Business Plan Should Answer

Table of Contents

An actionable business plan is crucial, whether your business is brand-new or an established player in its field. A business plan is especially vital for SMBs, which often must contend with lower name recognition, fewer loyal customers and other typical business challenges. While it doesn’t guarantee success, creating a business plan with research and care can help a business prepare for any future uncertainties.

Entrepreneurs and small business owners must ensure their business plans address six primary questions. Thinking through these questions and developing potential solutions helps set up your venture for success. 

What is a business plan, and why does it matter?

A business plan is a formal document designed to help you set achievable business goals and outline how you’ll accomplish them. The business plan should include various road maps dedicated to the following operational elements:

• Product creation
• Operational goals

A business plan is a valuable tool internally and externally.

• Internal business plan functions: Internally, a business plan helps align its decisions with an overall road map to help it stay on track. Businesses can also use road maps to help think through difficult choices, such as headcount decisions.
• External business plan functions: Externally, a road map is critical for securing funding from outside investors like angel investors . A business must demonstrate to investors that it has a solid business plan with achievable goals and a road map to success. 

When pitching your business idea to investors , emphasize how your product or service solves a problem and frame your pitch as a story to demonstrate your passion.

What should a business plan include?

Typically, a business plan should include the following elements: 

• Executive summary. An executive summary highlights a business plan’s essential elements. Readers should be able to understand your business plan by reading your executive summary, even if they don’t read the rest of the document.
• Budget. A small business budget should include overall operational and personnel costs. Consider your payroll budget , marketing budget and other departmental budgets.
• Market analysis. A market analysis should include a thorough market assessment that identifies competitors, your target customer , customer buying habits, marketing demographics and what customers are willing to pay. A market analysis may include a competitive analysis that dives more deeply into direct and indirect competitors.
• Product analysis. A product analysis outlines decisions about optimal product pricing. While you want to sell as many products as possible, low prices can scare off customers and eat into your profit margins, while prices that are too high will have customers turning to your competitors. 
• Marketing strategy. Your marketing plan should outline how best to market the business and its products or services. Consider digital marketing targeted to specific online and social platforms, email marketing and local marketing. 

Business plans vary in length depending on your business’s size, industry and scope. An SMB typically has a shorter and more succinct business plan than a larger, established business that operates across industries. 

Collect market intelligence for your business plan by conducting customer surveys and researching social media metrics, competitors’ sales and target customer data.

Questions every business plan should answer

We spoke with six business leaders who shared their thoughts on the crucial questions a business plan should answer. Consider these six essential questions to optimize your business plan.

1. What is the competitive advantage?

Scott Locke, chair of the intellectual property department at Dorf and Nelson LLP, advises thoroughly researching copyright infringement issues when determining your competitive advantage. 

“I always look for what will give the business a competitive advantage relative to businesses that want to offer the same or similar goods and services and an analysis of the competitive landscape,” Locke explained. “I pay particular attention as to whether there is valuable intellectual property, be it patents, trademarks, copyrights or trade secrets, that will serve as barriers to entry for competitors. Similarly, I like to see a discussion of the intellectual property of the most direct competitors and how the new business will avoid infringing on it.”

2. Is the business in a growth market?

Walter Recher, principal consultant at SmallBall Marketing, says your business plan should emphasize how you plan to grow your business . 

“The key to any successful business is to be a growing company in a growth market. A business plan should articulate how the entrepreneurs will enter the market, apply their investment to prepare them to grow quickly, and participate in the expansion of an industry that is thriving, with a better-than-average growth trajectory,” Recher said. “As I have spent my career working for hyper-growth companies in rapidly expanding markets, a founder of several small businesses and adjunct professor of a course on entrepreneurship, this has been the common denominator.”

3. Will customers pay for it?

Andi Gray, founder and president of Strategy Leaders, advises examining the risks of entrepreneurship and determining what and how customers will pay for their products and services. 

“When looking at business plans, I always want to know how the owners plan to get paying customers to engage at a fee and quantity that allows them, as owners, to be in business and sustain themselves,” Gray advised. “My frequently asked question is, ‘How do you plan to feed and clothe yourself, and where do you plan to sleep while you’re getting this venture off the ground?’ My hope is that it will cause the students to consider why they are planning to take the risks of entrepreneurship.” 

4. How will the business be staffed?

Larry Holfelder, senior consultant at DJL Insurance Services Inc., emphasizes the importance of staffing considerations. 

“In every business plan, I like to see the recognition of the need to cover and staff the production, sales and finance parts of the business. Roles should be established for the entity as if it were mature and successful,” Holfelder advised. “Multiple roles should be assigned at first, if necessary, and filled with the right people as the entity grows and the timing is right.” 

Holfelder says thoughtful staffing coverage shows that the business owners are realistic. “I like to see that type of thought process because it shows me they recognize that they won’t be able to do it all themselves and that business success revolves around collaboration and management,” Holfelder said. “It also shows that they recognize their own limitations, their ability to focus on their strengths, and the need to bring in others who know what they don’t in order to reach the goals they envision.”

Consider using a staffing agency if you need to scale quickly and want flexibility and reduced legal risks.

5. Is the product innovative?

Irwin Glenn, chief identity scientist at Hunova, stresses the importance of innovation and inventiveness as well as the team’s level of inspiration. 

“Is the idea for the product or service innovative, a unique invention, or is the dream truly inspired? Glenn asked. “By innovative, I want to understand if the business plan is centered around a new twist on already-existing technology or services delivered in a new and compelling way. If inventive, can the idea be protected against new or existing competition? Finally, is the team assembled an excellent group that can’t be stopped from succeeding? Are they inspiring to me, each other, and their marketplace?”

6. Are the plans and goals realistic?

Charles North, former president and CEO of the Dutchess County Regional Chamber of Commerce, prioritizes a realistic business plan with reasonable expectations. 

“I look for it to be a realistic business plan, not something that is pie-in-the-sky. I want to see reasonable expectations,” North explained. “I tend to look more on the conservative side, since I feel that is the safest way to go. The idea doesn’t have to be reasonable; the plan does. The idea can be anything.”

North also emphasizes the importance of sales forecasts . “I always look for projections on what the business will do in the first year, second year, third year and fourth year showing sales, expenses [and the] bottom line as the business progresses. Those assumptions have to be reasonable.”

How planning for success pays off

A great business idea is no guarantee of success, but a solid business plan is a way to start a new business off the right foot and prepare your venture for a lucrative future. 

Business plans are a vital resource for businesses of all sizes. While business plans should, at minimum, lay out a series of goals and a road map for achieving them, a business plan should also help answer questions ranging from analyzing a business’ competitive advantages to considering if its goals are realistic. 

If you think through these questions while creating your business plan, your business will be in a better position to achieve its goals and weather any challenges it may face. 

David Mielach contributed to the reporting and writing in this article.

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How to Write Winning Business Proposal: Examples & Free Templates (2024)

By Aditya Sheth , Jan 25, 2024

The great Mark Cuban once said, “Sales cure all.” If a business doesn’t sell, it doesn’t make money and by extension the business fails. That’s why you need to write business proposals .

A well-written business proposal can often mean the difference between winning or losing a prospective client.

In this in-depth guide to creating business proposals, we show you how to close more deals, make more sales and crush your business goals — all by using easy-to-edit professional business proposal templates .

Here’s what this guide will cover (click to jump ahead):

What is a business proposal, what are the components of a business proposal.

• How to write a business proposal step by step

What should you include in a business proposal?

What are the types of business proposals, more business proposal examples + writing and design tips.

• FAQs about business proposals

Looking for a shortcut? Watch this quick video for an overview of everything to include in your business proposal:

An effective business proposal is a document used by a B2B or business-facing company (this may not always be the case, but most B2B SaaS companies do so) where a seller aims to persuade a prospective buyer into buying their goods or services.

A business proposal outlines what your business does and what you can do for your client . It can be general like this business proposal example:

Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail:

Or this business proposal sample, which presents a plan for a social media strategy and campaign:

To design a business proposal that holds the client’s attention, identify their pain points . Then provide your buyer with the right solution to alleviate those frustrations.

Working on a new project? These project proposal examples might come in handy for you.

The components of a business proposal can change depending on the field, company size and client needs. While details may differ, strong proposals typically introduce your company, explain the problem, offer a solution and its benefits, highlight your team’s skills, and outline timeline, cost and next steps.

How to write a business proposal step by step

Before you start creating your business proposal template, you need to understand the business proposal format. At a high level, your effective business proposal should include the following:

Create a compelling business proposal title

Build a table of contents, craft the executive summary, write a detailed problem statement, propose your solutions, showcase your team’s expertise, create a realistic timeline.

• Present your payment structure

Specify the terms and conditions

Receiving the decision.

Below, you can see business proposal examples that demonstrate how to include these 10 sections.

A compelling title could mean the difference between someone reading your proposal or ignoring it in favor of a competitor’s . 

What makes a good title page? Here are the essential elements to include: 

• Your name along with your company’s name
• The name of the prospect (or their business) 
• The date you’re submitting the proposal

The gray business consulting proposal template above contains all the details a prospect would want to know. The title also offers a strong tangible benefit to the prospective buyer. Honestly, “Who doesn’t want to grow their business?”

The table of contents is a fundamental part of every winning business proposal template. It makes your proposal scannable and easy to read.

The people you will be pitching to are usually C-level executives. These are busy people who don’t have time to read your entire proposal in one go.

That’s why most of the business proposal examples in this list include a table of contents.

Adding a table of contents to your document makes it easy for them to go through it at their own pace. They can also skim through parts of the proposal that they deem more important. You can see how this abstract business proposal template uses the table of contents:

You can also make your business proposal template easier to navigate by adding hyperlinks to the document, particularly in the table of contents. This way your clients can jump to specific sections without having to scroll through the entire document. 

It’s easy to add hyperlinks in the Venngage editor. Select the text you’d like to turn into a link, then click the link icon in the top bar. From there, select the page you want to link to! Then download your completed design as an Interactive PDF .

The executive summary is a staple in all kinds of annual reports , leadership development plan , project plans and even marketing plans . It is a concise summary of the entire contents of your document. In other words, write a business proposal outline that is easy to glance over and that highlights your value proposition.

The goals of your executive summary are:

• Introduce your company to your buyer
• Provide an overview of your company goals
• Showcase your company’s milestones, overall vision and future plans
• Include any other relevant details

This gray business proposal example has a detailed yet short executive summary including some social proof in the form of clients they’ve worked with:

Take note of how precise this business proposal example is. You want to keep your executive summary concise and clear from the get-go. This sets the right tone for the rest of your proposal. It also gives your buyer a reason to continue reading your proposal.

Crafting an executive summary and keeping it concise and compelling can be challenging. but you can use an AI summarizer online to generate an executive summary. Such tools are trained on relevant AI models that can extract core points from a given text. You can get such a point either in bullet form or in abstract summary form.

Pro Tip: Try to write an executive summary such that, even if your prospective client doesn’t read the entire proposal (with a good executive summary, they most likely will), they should have a clear idea about what your company does and how you can help them.

The point of writing a business proposal is to solve a buyer’s problem. Your goal is to outline the problem statement as clearly as possible. This develops a sense of urgency in your prospect. They will want to find a solution to the problem. And you have that solution.

 A well-defined problem statement does two things: 

• It shows the prospect you have done your homework instead of sending a generic pitch
• It creates an opportunity for you to point out a problem your prospect might not be aware they had in the first place. 

This bold business proposal template above clearly outlines the problem at hand and also offers a ray of hope i.e. how you can solve your prospect’s problem. This brings me to… 

The good stuff. In the proposed solution section, you show how you can alleviate your prospective buyer’s pain points. This can fit onto the problem statement section but if you have a comprehensive solution or prefer to elaborate on the details, a separate section is a good idea.

Spare no details regarding the solution you will provide. When you write a business proposal, explain how you plan to deliver the solution. Include an estimated timeline of when they can expect your solution and other relevant details.

For inspiration, look at how this business proposal template quickly and succinctly outlines the project plan, deliverables and metrics :

At this point, the prospect you’re pitching your solution to likes what they’re reading. But they may not trust you to deliver on your promises. Why is this?

It’s because they don’t know you. Your job is to convince them that you can fix their problem. This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is when you write a business proposal for a potential client.

This free business proposal template showcases the company’s accolades, client testimonials, relevant case studies, and industry awards. You can also include other forms of social proof to establish yourself as a credible business. This makes it that much more likely that they will say yes!

Pro Tip: Attaching in-depth case studies of your work is a great way to build trust with a potential client by showcasing how you’ve solved similar problems for other clients in the past. Our case study examples post can show you how to do just that.

To further demonstrate just how prepared you are, it’s important to outline the next steps you will take should your buyer decide to work with you.

Provide a timeline of how and when you will complete all your deliverables. You can do this by designing a  flow chart . Or add a  roadmap  with deadlines. Pitching a long-term project? A timeline infographic would be a better fit.

If you look at this abstract business proposal template below, even something as simple as a table can do the trick.

The timeline is not always set in stone, rather it’s an estimation. The goal is to clarify any questions your potential client might have about how you will deliver for the underlying B2B sales process.

Present your payment and terms

On this page, you can outline your fees, payment schedule, invoice payment terms , as well as legal aspects involved in this deal. You can even use the  Excel Invoice Template  to create professional-looking invoices (including brand logo and other elements) and add them to this page.

The key to good pricing is to provide your buyer with options. A  pricing comparison table can help with this. You want to give your client some room to work with. Make sure you’re not scaring off your client with a high price, nor undervaluing yourself. 

Breaking up your pricing in stages is another great way to make sure your potential client knows what he’s paying for. Look at how this simple business proposal template does this:

The legal aspects can slot right into the terms and conditions section. Alternatively, you can add them to the signature section of the proposal to keep things simple.

Summarize everything you have promised to deliver so far. Include what you expect from your prospective buyer in return.   Add the overall project timeline from start to end, as well as payment methods and payment schedule, incorporating these details into an online digital project management tool . This way, both of you will be clear on what is being agreed on.

This step is very important as it outlines all the legal aspects of the deal. That is why the terms and conditions section of your proposal needs to be as clear as possible.

I recommend consulting a lawyer or your legal team when working on this section of the business proposal. If you’re a business veteran and understand the legalities of your business, you can use the same terms and conditions across all your proposals.

The final step of this whole process. Your client has read your business proposal and they want to buy what you have to offer.

Add a small section at the end of your proposal to get the necessary signatures. This way, you and your client can sign the proposal and the partnership becomes official.

Be sure to also include your contact information in your business proposal template. It acts as a gentle prompt to your client to contact you in case they have any questions. A professional way of doig that would be to include an e-business card with your contact details, email i.d and any other social links you want to share. You can go through this article for the best digital business cards .

A business proposal usually aims to answer the following questions: 

• Who you are and what your company does
• The problem your buyer is facing
• The solution your company offers to alleviate the problem
• How your company will implement this solution effectively
• An estimate of resources (time, money, etc) required to implement the solution

You can see how this sample business proposal template covers the above points.

Notice how this proposal template addresses the same project like in one of the previous templates, but uses a completely different design style (more retro, while the previous business proposal template is more modern and minimalistic).

Generally, there are three types of business proposals:

1. Formally solicited 

A formally solicited business proposal is made when you respond to an official request to write a business proposal.

In this scenario, you know all the requirements and have more (if not all) information about a prospective buyer. You simply need to write the business proposal for your buyer to evaluate so you can begin the sales process .

2. Informally solicited 

Informally solicited business proposals are written when there isn’t an official request for a proposal. A prospective buyer is interested in your services and asks for a proposal so they can evaluate it.

An informally solicited proposal requires a lot more research from your end. These types of proposals are usually created out of informal conversations. They are not based on official requests which often contain more detail.

3. Unsolicited 

Think of this as a marketing brochure or a cold email . Unsolicited business proposals will often take a generic, one-size-fits-all approach to business proposals. Unsolicited proposals lack any understanding of the buyer or their requirements.

But with additional  market research , personalization and identifying customer pain points , you can propose a customized solution based on your buyer’s needs. This can be a very persuasive approach, such as in this business proposal example:

Now that you know how to write a business proposal, let’s look at how you can optimize your proposal to deliver results!

Below you’ll find some winning business proposal templates and examples to get you started. I’ve also included some design tips to keep in mind when you’re creating your next business proposal: 

1. Know your audience 

If you have some clarity on who your ideal buyer is — their pain points, their budget, deadlines, among other things — you’ve already won half the battle.

If you are a business that helps clients with everything from running giveaways or helping grow their blog , identify which customers to pitch. This is a sure-shot way to close the deal.

Mapping user personas  for your ideal buyer can help bring some clarity. It will also help you position your business proposal correctly. This improves the chance of your buyer moving your business proposal to the “Yes!” pile.

2. Put your brand front and center

If your company follows certain brand guidelines, incorporate them in your business proposal templates. Consider how business proposal examples like the one below highlight brand identity :

From the color palettes to the company logos , everything follows their brand guidelines. The result: a business proposal that’s consistent across the board.

Pro Tip: Switching this template to match your brand assets is actually pretty easy. Venngage’s My Brand Kit feature allows you to import your color palettes, logos as well as font choices. Any Venngage template can now be your template.

You can also consider this sample business proposal template:

App design companies sure do know their design. They did a phenomenal job keeping their brand colors consistent while opting for a black design. This unique color scheme also makes their white logo prominent throughout the proposal.

3. Try less text, more visuals

Have you ever read a proposal and thought to yourself, “Wow, this is all text and has no images, I love it!”? Yeah, me neither.

The free business proposal template below is a perfect example of the “less is more” principle. It does a phenomenal job of communicating what it needs to. By substituting some of the text with icons and visuals, you get a clean business proposal that’s much more scannable.

Want to keep things strictly professional? Instead of icons, you can always add your team’s headshots. This shows your buyer exactly who they’ll be working with.  

Check out this formal business proposal format for some inspiration:

4. Switch up your business proposal designs

It doesn’t hurt to go above and beyond once in a while. Jazz up your business proposal template with some extra colors. This helps make your business proposal more engaging. It also helps your buyers retain information faster.

The business proposal example alternates between black, white and grey backgrounds. It still manages to maintain consistency in its branding . Just switching up your backgrounds once in a while can also bring in some variety to an otherwise standard business proposal.

This SEO business proposal sample proves that it’s possible to switch up the colors in every other page. But it still maintains the same color scheme across the entire proposal just like a professionally designed website : 

Pro Tip: Not a color expert? Our guide on picking colors can help you pick the right color scheme for your proposals.

FAQ about business proposals

What is the purpose of a business proposal.

A business proposal aims to streamline the B2B sales process (which is often complex ) between you as a seller and a buyer.

It does this by serving the dual purpose of acting as a source of information. The proposal also acts as a sales pitch aimed at convincing your buyer why they should buy what you have to offer.

What are the best practices for business proposal design?

• Do a thorough spell-check. The goal of your business proposal is to convince your buyer why you’re the perfect person for the job. A proposal with typos or grammatical errors communicates the opposite. A thorough spell-check before you send your proposal is a must.
• Keep things clear and readable: Clarity is an important aspect that you have to ensure in your business proposal. If you want your proposal to hit home and make an impact on the buyer, you have to write it in an understandable way. To keep things clear and readable, there are a couple of things that you can do. You can, for one, take care to use easy wording and segmented sentences from the get-go. You can also try paraphrasing the hard parts of your proposal once you are done writing it.
• Let your brand shine. As discussed before, writing a business proposal is all about knowing your ideal buyer and focusing on their pain points. But that doesn’t mean your business proposal template has to be boring. Demonstrate how different you are compared to other companies. You can do this through your brand guidelines , by using more visuals, switching up your proposal design or showing off your personality in your writing . 
• Create a business proposal PDF. Downloading your business proposal in PDF format allows you to attach other collaterals with your business proposal. These can include a company explainer video or case studies showcasing the work done with past clients. Also, who doesn’t love saving paper?

How long should your business proposal be? 

The length depends on the scope of the work as well as the complexity of the project. Here is a one-page business proposal template:

Can your business proposal template really be one page? Yes, as long as you understand who your buyer is and their pain points. You should also have the ability to communicate everything your ideal buyer needs to know about your business in a succinct manner.

Or if you’re feeling adventurous how about just two pages? Often, clients prefer if you go straight to the point and avoid all the fluff.

For example, this green modern marketing proposal template wastes no time in getting down to brass tacks:

Need more inspiration? Check out this blog on the 5 marketing proposal examples that’ll help elevate your business.

There is no one size fits all approach when it comes to deciding how many pages you should include in your business proposal template. And at the end of the day, “the only rules are the ones you set for yourself”.

At the end of the day, writing winning business proposals that sell is all about you understanding your buyer, their potential pain points and positioning yourself as someone who can alleviate those pain points. 

Now that you know how to write compelling business proposals, what are you waiting for?

Take action and start creating your own business proposals to close more deals and grow your business today!

More business communications templates + writing tips you might be interested in…

• 31 Consulting Proposal Templates to Close Deals
• 20+ Professional Business Letterhead Templates + Branding Tips
• How to Write a White Paper [Tips & Templates]

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How to Write a Business Proposal Outline

Why you need the ultimate library for your rfp responses.

Respond to RFPs , Responding to RFPs

Updated: Feb 8th, 2024

Quickly writing business proposals is key to winning new deals … but properly aggregating all the content from subject matter experts (SMEs) is often a time-consuming and frustrating task.

Fortunately, creating an effective business proposal outline can give you and your SMEs the structure needed to respond to requests for proposals (RFPs) in the shortest time possible.

Download The Formula for Creating Winning RFP Responses to get an in-depth explanation on how to create revenue-generating proposals.

So, how exactly do you create an effective business proposal outline?

3 things you need to know to create successful business proposal outlines

1.    what a business proposal outline is and isn’t.

It’s important not to confuse a business proposal with a business plan. The goal of the former is to win a sale, while the goal of the latter is to create a strategy for achieving a business objective or overcoming a challenge.

A business proposal outline provides the framework in which SMEs and proposal writers can add content with the goal of creating an RFP response that wins business.

2.    Why start with an outline?

The purpose of creating a business proposal outline is to add structure to the too-often chaotic process of gathering content to create a winning proposal.

According to Ian Linton , global copywriter and author, “By drawing an outline for your business proposal, you prepare a framework for including all the important messages in your proposal. Your outline should cover the messages you feel will convince the customer to select your product or service.”

By developing a framework that covers your key messaging strategy, you accomplish two things.

First, you make life easier for your SMEs. While we need SMEs to answer technical questions and provide expertise when creating a business proposal, we can’t expect them to be experts in the art of persuasion.

By clearly outlining your expectations, you help ensure they will provide the information you need to successfully win over prospects … without your having to ask for additional information and clarification.

Second, you make life easier for your proposal writer. By presenting all the proposal content they need in a structured format, you help them focus on using the information to craft a compelling narrative — rather than spending hours organizing information from various sources.

3.     What a business proposal outline should include

The outline of your business proposal should cover each section you want to include in the final proposal, as well as what information you want that section to convey.

While every proposal is unique and you should include and remove sections based on the information you receive in the RFP, most outlines should include the following:

Executive summary

This is probably the most important section of your business proposal. Your prospects are busy, and many of them will only read this section … unless you can convince them to read more.

It’s important to approach your executive summary as your proposal’s hook. This is likely your only chance to get your prospect’s attention and convince them the rest of the proposal is worth reading.

You can learn a lot about how to approach the executive summary by learning how journalists approach leads. Leads are the intro to a news article, and journalists understand that it’s crucial to write this part effectively if they want readers to finish the story.

According to Hannah Bloch , a digital editor for international news at NPR, the purpose of the lead “is to make the reader want to stay and spend some precious time with whatever you’ve written. It sets the tone and pace and direction for everything that follows. It is the puzzle piece on which the rest of the story depends.”

For tips on how to create leads that hook your reader and have them begging to read more, invest in a copy of “ Great Leads: The Six Easiest Ways to Start Any Sales Message .” This book takes the journalistic concept of leads and shows exactly how to apply it in a sales context.

The about us section is one of the most difficult sections to write effectively. Your prospects read this section to learn about your organization and decide whether you fit their goals and values.

But here’s the thing: Your prospects don’t actually care about you.

It’s not your fault. It’s just the way people are wired.

Mark Hunter , sales consultant and speaker, put it best:

“Unless you’re somebody famous or unless you have a product everyone has to have, I hate to break the news to you, but your prospect couldn’t care less.

“What does this mean to you?

“It means you need to quit sending out stupid emails or leaving pathetic voicemails that extoll who you are and how great your company is. Your prospects simply don’t care!”

So, does this mean you can skip the about us section? Unfortunately, no.

Writing this section plays an important role in building rapport and trust with your prospects, but you have to navigate it carefully to avoid losing your reader’s interest.

Fortunately, several companies have already successfully overcome this challenge, and we can learn from their examples. Check out this list of 15 companies and experts who understand how to write engaging about us or about me content. (Note: This list covers about me and about us pages for websites, but the principals and lessons apply equally well to proposals.)

This is where you detail the key dates and milestones your prospects can look forward to should they become customers.

This is key to setting the appropriate expectations. Make sure the dates aren’t so far in the future that they cause your prospects to think you move too slowly, but also aren’t so ambitious that your team has to scramble to keep your promises.

References and case studies

References and case studies are critical to convincing your prospects they want to do business with your organization. While they expect you and your team to say great things about your company, they expect your customers’ assessments to be more accurate.

According to Content Marketing Institute :

“We look for and act on (even if subconsciously) social proof in all areas our life — including how we behave and the purchasing decisions we make online.

“It doesn’t matter if that social proof comes from friends or strangers. What matters is that we’re seeing evidence from our peers — in this context, other consumers — that the decision we’re about to make is the right one.”

To see examples of well-crafted case studies, check out a few that we’ve put together. (We may be biased about the whole “well-crafted” thing.)

Ready to move beyond the outline?

Creating an effective business proposal outline sets the foundation for a successful proposal, but your work isn’t quite done yet.

As RFP360’s sales director, Pat is responsible for implementing strategic growth initiatives, mentoring sales staff, and driving revenue. Before joining RFP360, he led the sales team for a growing tech firm as they launched their North American presence and new go-to-market strategies. When he’s not working or chasing down his one-and-a-half-year-old and three-and-a-half-year-old children, he enjoys golfing and watching live music.

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Guide to Marketing to DoD

Are you a small business interested in working for DoD? Pursuing DoD contracts is not for everyone; it requires patience, persistence and an in-depth understanding of federal acquisition rules.

It typically takes at least 18 months of planning before a government contractor wins their first contract. Plan to invest significant time and resources becoming procurement ready, identifying potential opportunities, marketing to potential clients, developing proposals, implementing your first DoD contract and complying with DoD rules. While it’s not easy, several government resources and tools can help you win your first DoD contract. This step-by-step guide explains how to get started.

Step 1: Enlist Your Support Network DoD’s support network serves you. In 1985, DoD created the Procurement Technical Assistance Program (PTAP), which is administered by the Department of Defense Office of Small Business Programs, for the specific purpose of helping small businesses that want to learn about doing business with DoD. The APEX Accelerators  help small businesses compete for and execute contracts with DoD and other federal agencies. Most APEX Accelerator services are free. You can find your local APEX Accelerator  here .

Small Business Development Centers (SBDCs) provide aspiring entrepreneurs and small business owners free one-on-one training in business plan development, finance and marketing. SCORE holds events and workshops across the country to match entrepreneurs with local, volunteer mentors. You can find your local SCORE business office here.

A list of public and private programs that support veteran entrepreneurs is here .

Women Impacting Public Policy (WIPP), American Express OPEN and the Small Business Administration launched ChallengeHER in 2013 to boost government contracting opportunities for WOSBs. ChallengeHER provides free workshops, mentoring and direct access to government buyers. 

Step 2: Understand the Rules Review the Federal Acquisition Regulation  (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS). These rules, which govern DoD acquisitions, are complex. It’s very important to understand the rules. For example, WOSB sole-source authority was established in 2015, but the WOSB sole-source authority works differently than the 8(a)’s sole-source authority. Many WOSBs believe they are entitled to sole-source contracts because the authority exists. It doesn’t work that way. In the WOSB program, sole-source contracts are only authorized when only one WOSB can perform the requirement. And that has to be demonstrated through market research. Step 3: Register in SAM The FAR requires all federal government contractors to be registered in the System for Award Management (SAM.gov). Your local APEX Accelerator can help you complete your SAM registration for free. SAM’s website includes FAQs, user guides, helpful hints and videos. If you have questions about SAM, you can contact the Federal Service Desk at 866–606–8220 . Step 4: Target Your Market

DoD employs more than 30,000 acquisition staff. In fiscal year 2021, DoD awarded more than $154 billion in prime contracts to small businesses.

10 Tips for Marketing to DoD

• Follow the money.
• Arm yourself with information and facts, not emotion.
• Find your niche. Don’t try to be everything to everybody.
• Target your market and understand your prospective customer’s mission, environment, challenges and hot buttons.
• Meet with Small Business Professionals.
• Don’t provide a standard, canned presentation to potential customers. Research their requirements and understand their challenges.
• Explain how your service or product has a positive impact on a project’s cost, schedule and performance.
• Identify your differentiators—what separates you from other great performers?
• Translate the relevancy of your past performance; don’t expect a prospective customer to do it for you.

When you meet with Program Managers and Contracting Officers, be prepared to discuss a real requirement, not your generic capabilities. Step 5: Create a Capabilities Statement Create a one-page capabilities statement that summarizes your experience. Your capabilities statement should not include any typos and should include your CAGE code. Your longer capability briefings should be tailored to the specific customer you are meeting and demonstrate how you can address their challenges, including how your service or product has a positive impact on a Program Manager’s cost, schedule and performance. When marketing to potential customers, don’t lead with your socioeconomic status. What really matters is whether you can perform the work. Step 6: Identify Prime Contracting and Subcontracting Opportunities You can identify potential buyers of your services by searching the System for Award Management (SAM.gov), which contains detailed information about federal government contract awards. The system identifies who bought what, from whom, for how much, when and where. You can sort data in SAM.gov by NAICS, key word, customer, place of performance and more. They system will help you understand who buys what you sell and how they buy it. Step 7: Pound the Pavement DoD’s Small Business Professionals (SBPs) are advocates for small businesses. An SBP should be your first point of contact inside an agency, but don’t request a meeting with an SBP unless the agency they support buys what you sell. For an existing requirement, you should request a meeting with an SBP at least 18 months before a contract expires. SBPs can help you understand their organization’s mission, culture, challenges and requirements. You can find links to DoD Small Business Offices here . SBPs can also help you prepare for meetings with Contracting Officers and Program Managers. Contracting Officers have the legal authority to make large purchases on behalf of the federal government. Program Managers use the products and services that vendors provide. These are technical experts and likely to appreciate the details about why your product or service is better than a competitor’s. The Small Business Administration’s Procurement Center Representatives (PCRs) help small businesses obtain federal contracts. They review agencies’ acquisition strategies to ensure that small businesses get their fair share of contracting opportunities. You can find your local PCR here. Step 8: Bid on Your First Contract Get in the game! To succeed, you need to be resilient. You may have only 30 days to put together a top-notch technical proposal. It’s not uncommon for small businesses to spend hundreds of hours and hundreds of thousands of dollars developing proposals that they don’t win. If your first proposal is rejected, don’t give up. You may wish to start with simplified acquisitions. Procurements worth $250,000 or less are typically set aside for small businesses under simplified-acquisition procedures. One way to find such procurements is to search for “simplified acquisition” on www.fbo.gov. Step 9: Win Your First Contract Congratulations, you won your first contract! Step 10: Provide Stellar Performance Winning your first contract isn’t the end; it’s just the beginning. Have a plan for executing the contract to DoD’s high standards.

The Defense Acquisition Toolkit In the Defense Acquisition Toolkit, you will find a visual representation of the key touchpoints for any business that might wish to create or expand their relationship with the Department of Defense.

SAM.gov The official U.S. government website for people who make, receive, and manage federal awards. Includes data previously housed in FedBizOpps and The Federal Procurement System.

DoD Industrial Policy Industrial Policy is the principal advisor to the Under Secretary of Defense for Acquisition and Sustainment for developing DoD policies for the maintenance of the U.S. defense industrial base. Tariffs The Department of Commerce implemented tariffs on steel and aluminum imports for national security reasons. The U.S. Trade Representative announced tariffs to combat unfair trade practices on certain Chinese goods. Additional tariffs on a larger list of goods from China are expected in the future. Small businesses should become familiar with what imported products are affected to make informed business decisions as tariffs could increase the total cost of certain imported goods.   USAspending.gov Subcontract data is available in USAspending.gov.

Mythbusting Memos The Office of Management and Budget’s Office of Federal Procurement Policy (OFPP)  released three memos to improve communication with industry: - Mythbusting 1 Memo - Mythbusting 2 Memo - Mythbusting 3 Memo

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iRubric: Business Plan - Oral Defense rubric

• Business Plan

Self Defense Business Plan Template & Guidebook

Starting a self defense business can be an intimidating venture. It requires planning, research, and investment. However, investing in the right resources upfront can simplify the process and increase your chances of success in this competitive market. The #1 Self Defense Business Plan Template & Guidebook provides a comprehensive and easy to follow plan for entrepreneurs to follow, empowering them to get their self defense business off the ground efficiently and effectively.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Self Defense Business [11 Steps]

How to Write a Self Defense Business Plan in 7 Steps:

1. describe the purpose of your self defense business..

The first step to writing your business plan is to describe the purpose of your self defense business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a self defense business:

Our mission at XYZ Self Defense is to empower individuals to develop the physical, mental, and emotional skills needed to stay safe from harm and confidently protect themselves in any situation.

2. Products & Services Offered by Your Self Defense Business.

The next step is to outline your products and services for your self defense business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your self defense business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your self defense business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your self defense business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a self defense business?

The equipment and supplies needed to run a Self Defense business will depend on the type of classes and services you provide. However, some general items you may need to consider include:

• Safety equipment (mats, padding, helmets, etc.)
• Training implements (dummies, punching bags, etc.)
• Weapons (knives, guns, etc.)
• Protective clothing (gloves, body armor, etc.)
• Educational materials (books, videos, etc.)
• Classroom/training facility (space rental or ownership)
• Permits: Depending on your location and the type of self-defense business you operate, you may need special licenses or permits. Additionally, if you are offering firearms instruction then you will need an FFL.

5. Management & Organization of Your Self Defense Business.

The second part of your self defense business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your self defense business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Self Defense Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a self defense business varies based on many different variables, but below are a few different types of startup costs for a self defense business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your self defense business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your self defense business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your self defense business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Self Defense Business Plans:

Why do you need a business plan for a self defense business.

A business plan for a self defense business is important for setting goals and objectives, developing strategies for achieving those goals, defining the target market and customer base, optimizing resources, tracking financial performance, and developing a roadmap for the future of the business. It can help you to identify potential challenges and develop contingency plans to address those issues. A good business plan will also make it easier to secure financing or attract investments.

Who should you ask for help with your self defense business plan?

A business consultant or a lawyer who specializes in setting up businesses. They can provide professional advice on how to structure the business, what permits and licenses may be required, and other important considerations.

Can you write a self defense business plan yourself?

Yes, depending on the scope of the business plan. A self-defense business plan will typically include a market analysis, operational plan, financial projections, and other components. Depending on the type of business and its objectives, additional components may be needed as well. It is recommended to consult with a professional or experienced mentor to ensure the business plan is correctly structured.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Department of Defense Releases the President's Fiscal Year 2025 Defense Budget

Statement by Secretary of Defense Lloyd J. Austin III on the President's Fiscal Year 2025 Defense Budget

"The President's budget request for the Department of Defense is once again rooted in our 2022 National Defense Strategy, which continues to enable us to match our national resources to our national objectives. This request will bolster our ability to defend our country, paced to the challenge posed by an increasingly aggressive People's Republic of China. It will better posture us to deter aggression against the United States, or our allies and partners, while also preparing us to prevail in conflict if necessary. It will continue to forge a more resilient joint force and a modern defense ecosystem, built for the security challenges of the 21 st century. And it will strengthen the unmatched global network of alliances and partnerships that magnifies our power and deepens our security.

This budget request is consistent with the funding levels approved by Congress under the Fiscal Responsibility Act of 2023. Under these caps, we made difficult but responsible decisions focusing on maintaining our military's readiness and taking care of our personnel. So our budget request reflects targeted reductions to programs delivering key capabilities in later years to support the joint force's ability to fight and win in the near term.

We must continue to invest in cutting-edge defense capabilities and to advance new operational concepts across domains, from advanced cyber systems and enhanced space capabilities to a modernized nuclear triad. This budget request also reflects a deep commitment to our people, who will always be the Department's greatest strategic asset; we hope to raise basic pay, boost quality-of-life initiatives, and promote safety and accountability.

Moreover, this request will enable the Department to deepen cooperation with our interagency colleagues, industry, academia, allies, and partners. Through cooperative defense initiatives, multilateral joint exercises, and shared technology development, we will enhance our capabilities and help make America and the world more secure.

Since my first day as Secretary of Defense, I have focused on three priorities: defending the Nation, taking care of our people, and succeeding through teamwork. President Biden's Fiscal Year 2025 budget request advances each of these priorities.

As Congress writes authorizing and appropriations legislation in the months ahead, I am grateful for Members' support for the budget and the mission of the Department of Defense."

The President's Fiscal Year 2025 Budget Request for the Department of Defense

On March 11, 2024, the Biden-Harris Administration submitted to Congress a proposed Fiscal Year (FY) 2025 budget request of $849.8 billion for the Department of Defense (DoD), consistent with the caps approved by Congress under the Financial Responsibility Act (FRA) of 2023. The FY 2025 defense budget request provides the capabilities and investments to advance the Secretary's three key priorities: defending the United States, taking care of our people, and succeeding through teamwork. 

To achieve these priorities, this budget request links our strategic goals to our resources to continue executing our 2022 National Defense Strategy (NDS), which aligns with the President's National Security Strategy. These guiding documents determine the direction of the Department of Defense in what the President has called the "decisive decade." The NDS outlines the Department's defense and security priorities:

• Defending the homeland, paced to the growing, multi-domain challenge posed by the People's Republic of China (PRC);
• Deterring strategic attacks against the United States, our allies, and our partners; 
• Meeting the acute threat of a newly aggressive Russia;
• Tackling the dangers from Iran, North Korea, global terrorist groups, and more;
• Building a resilient joint force and defense ecosystem.

The NDS positions the U.S. military to meet our defense challenges through integrated deterrence, campaigning, and actions to build enduring advantages. The FY 2025 DoD budget request of $849.8 billion enables the Department to advance these goals by providing the resources to position our warfighters, allies, and partners for success. This budget continues to make the investments necessary to execute the NDS, but the FRA topline limitations required the Department to make tough but responsible choices. We made targeted reductions to programs that will not deliver capability to the force until the 2030s to preserve and enhance the Total Force's ability to fight and win in the near term.

Integrated Deterrence

The FY 2025 budget request allows the DoD to invest in capabilities to maintain a ready, lethal, and combat-credible joint force, with a laser focus on the pacing challenge from the PRC, as well as the acute threat posed by Putin's Russia. The budget makes critical investments to revitalize the defense industrial base, drive innovation, and take care of the Department's personnel. The FY 2025 budget request includes $143.2 billion in research, development, test, and evaluation (RDT&E), and would also fund $167.5 billion for procurement. Combined, these investments will establish even stronger, nimbler, and more modern combat-credible forces across all domains. 

Investments in platforms and systems across the air, sea, and land domains will increase the lethality of our Joint Force and enhance our ability to deter threats well into the future. So this budget request includes:

• $61.2 billion for airpower to continue developing, modernizing, and procuring lethal air forces; 
• $48.1 billion for sea power, including new construction of six battle force fleet ships; and
• $13.0 billion for land power, supporting the modernization of Army and Marine Corps combat equipment.

A safe, secure, effective, and credible nuclear deterrent remains the ultimate check on strategic attacks on our country and our allies. To sustain this level of deterrence, the FY 2025 budget requests $49.2 billion to modernize and recapitalize all three legs of the nuclear triad and operate our legacy systems even as we pursue arms control measures that enhance U.S. and allied security. For example, the budget requests:

• $9.9 billion for the Columbia-class ballistic-missile submarine; 
• $5.3 billion to continue development and procurement of the B-21 strategic bomber program; and
• $3.7 billion to continue funding for the ground-based Sentinel program. 

Our highest defense priority remains to deter attack against the United States. The PRC and Russia are fielding conventional long-range and hypersonic weapons that can threaten our allies, partners, and U.S. forces. Therefore, the FY 2025 budget requests $28.4 billion to enhance U.S. missile-defense capabilities to defend the homeland, U.S. deployed forces, and our allies and partners against this growing missile threat. 

Other critical investment highlights include:

• $9.8 billion in long-range fires to hold adversary targets at risk from operationally relevant ranges and reduce risks to U.S. forces and assets;
• $33.7 billion for vital space capabilities, resilient architectures, and enhanced space command and control to keep space safe for military, civilian, and commercial operations; and
• $14.5 billion for cyberspace activities focused on three main portfolios covering cybersecurity, cyberspace operations, and cyber research and development.

Campaigning

The second way we advance the NDS is through campaigning, or well-planned and carefully sequenced exercises and initiatives to advance our defense priorities. Campaigning starts with our strategic readiness and our ability to build, maintain, and balance warfighting forces, capabilities, and competitive advantages to achieve our strategic objectives. The Department's FY 2025 budget request therefore prioritizes the readiness of our joint force, investing $147.5 billion to build and maintain our warfighting forces and capabilities. The budget request is designed to maintain our current levels of readiness while modernizing to meet future challenges. The Department's strategic-readiness framework keeps our eyes on the horizon, carefully balancing today's urgent and competing demands with preparing to prevail in long-term strategic competition.

The FY 2025 budget request includes critical investments to strengthen deterrence in the Indo-Pacific, including ballistic missile-defense activities in support of Guam; expanded security cooperation with our valued allies and partners; increased investments in exercises, training, and experimentation activities; cyber operations technology support; the fielding of uncrewed and autonomous systems that can operate in all domains; and other innovative technologies.

The outcome of Putin's cruel and unprovoked war of choice against Ukraine will define global security for decades to come, and we remain determined to meet the moment. The FY 2025 budget request also funds our bedrock commitment to NATO, the indispensable defensive alliance that remains the foundation of transatlantic security, and includes $4.2 billion to support investments, activities, and operations within Europe to deter Russian aggression against our allies and partners, including:

• $9.9 billion for the Pacific Deterrence Initiative;
• $2.9 billion for the European Deterrence Initiative;
• $625.6 million in NATO Military Contribution;
• $434 million for the NATO Security Investment Program; and
• $300 million to fund the Ukraine Security Assistance Initiative.

Building Enduring Advantages

The Department's people – the Total Force – are its most valuable asset and we have made significant investments to take care of our people. In particular. DoD supports its outstanding all-volunteer force and their families by continuously working to strengthen economic security and improve quality of life. Critical investments in our people include:

• A 4.5 percent pay increase for Service members and annual rate increases for both housing and subsistence allowances;
• $245.3 million for a proposed substantial increase to the Income Eligibility Threshold for Basic Needs Allowance, an allowance designed to provide extra support to Service members and families who qualify;
• More than $120 million in additional funding for commissaries to provide our Service members with food savings of over 25 percent compared to the local marketplace; 
• $2.0 billion to support family housing to provide safe, high-quality residences for Service members and their families;
• $1.1 billion in unaccompanied housing or barracks construction;
• $547 million to prevent suicide in the military, including $261 million to implement the approved recommendations from the Suicide Prevention and Response Independent Review Committee; and
• $1.2 billion to prevent sexual assault and other harmful behaviors, including $651 million for the continued implementation of the recommendations by the Independent Review Commission on Sexual Assault in the Military and funding for the Sexual Assault Prevention and Response Education and Training Center of Excellence.

Another Department priority is investing in our technological advantage to maintain global readiness for decades to come. The Department's approach, which was codified in the National Defense Science and Technology Strategy, prioritizes three strategic lines of effort: focus on the Joint Mission; create and field capabilities at speed and scale; and strengthen the foundations of research and development. The FY 2025 budget request of $143.2 billion in Research, Development, Test &Evaluation (RDT&E), enables us to maintain our commitment to innovation and modernization with investments including:

• $17.2 billion in science and technology;
• $1.8 billion in artificial intelligence; 
• $1.4 billion in Combined Joint All Domain Command and Control to deliver information advantage at the speed of relevance across all domains and partners;
• $450 million for the Rapid Defense Experimentation Reserve to help more swiftly field new capabilities;
• $144 million to support the Office of Strategic Capital, including $132.6 million in RDT&E funding, which Secretary Austin established to enable the Department to attract and scale private capital in our most critical component-level supply chain technologies; and
• Resources for the Department-wide Replicator Initiative to accelerate the delivery of innovative capabilities to warfighters at speed and scale.

In addition, the Department is focused on manufacturing and production challenges, with continued investment in capabilities supporting a modern, technology-enabled industrial base. We also seek to make supply chains more resilient.

The recently released National Defense Industrial Strategy (NDIS) outlines four priorities for achieving a 21 st -century defense industrial base: resilient supply chains, workforce readiness, flexible acquisition, and economic deterrence. Aligning our ongoing industrial-base efforts with the NDIS priorities will enable better coordination among programs and help us more swiftly identify opportunities for investments or policy modifications. The Department will continue to leverage authorities provided by Congress to deliver critical munitions affordably, while bolstering our inventories and providing a more predictable demand signal to industry. The FY 2025 budget request includes:

• $29.8 billion for munitions, including both conventional ammunition and Precision Guided Munitions;
• $4.0 billion in investments in the submarine industrial base, a historic investment in supplier and workforce development as well as infrastructure expansion and technological advances; and
• $2.5 billion for microelectronics to reduce gaps in the advanced packaging ecosystem.

The FY 2025 budget continues to build on prior investments by including $19.8 billion to sustain, restore, and modernize our facilities, as well as $17.5 billion in construction and family housing programs. These efforts support our people, enhance our deterrence, and improve our critical infrastructure. Those investments include:

• $8.7 billion in facilities supporting readiness improvements;
• $2.5 billion in projects advancing the European Deterrence Initiative, the Pacific Deterrence Initiative, and the Ground-Based Strategic Deterrent program;
• $2.0 billion in critical naval-infrastructure improvements; 
• $2.3 billion to support the construction of other new quality-of-life facilities including barracks, dormitories, child development centers and youth centers, medical clinics, and schools. 

As always, the Department is committed to being a responsible steward of hard-earned taxpayer funds — and committed to better performance across the defense enterprise. The FY 2025 Defense Budget includes $1.3 billion in support of the DoD audit. This includes funding for audit services, support, remediation and financial systems. The Department has taken significant steps to improve our systems, modernize our enterprise, and attract and retain the best possible talent. We must continue to align our resources with our evolving defense needs. That will ensure that we can secure the right capabilities to build enduring advantages over our global competitors — and work toward a safer America in a more stable, open, and prosperous world.

The FY 2025 Defense Budget positions the Department to support its people and its allies and partners during this decisive decade — and to meet the defense challenges that our republic faces today and will face far into the future.

The entire budget proposal and additional materials are available at: https://comptroller.defense.gov/Budget-Materials/Budget2025/

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Business Plan Proposal

my company name is mars cafe that is located in ethiopia addis ababa

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This is a business plan for a school for anyone who might not copy but get insight into the contents and flow of writing a business plan for such an institution or the like.

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It is conventional wisdom that new businesses be planned prior to their start-up hence prospective business founders are generally advised to develop formal plans of their proposed ventures. A business plan that serves as a blueprint or road map that provides direction and increases the firm’s chances for survival and success is thus essential. According to Kraten and Kenneth (2010), a business planning document represents “a nuts-and-bolts document” that clearly demonstrates that the business operator prepared to operate the business from day one. Andualem (1997) asserts that SMEs with regards to Ghana comprise activities that are independently owned and operated; managed by the owner; have a small share of the market; and employ 6-49 employees. This study investigated the impact of a business planning document on the growth of small scale businesses. Basically, the researcher chose the survey strategy in line with the observation that it is possible to use survey approaches within either a qualitative or quantitative research strategy. All the 50 respondents chosen purposively from the target population responded to the survey questionnaires. The study found that business planning influences the success or survival of SMEs. Also SMEs Enhance poverty alleviation, Improve per capita income, Enhance the quality of lives, Encourage technological innovations, Enhance export promotion, Enhance GDP growth, Encourage entrepreneurship, Accelerate employment generation, Ensure inter- and intra-regional decentralization, Serve as a countervailing force against the economic power of larger firms, Accelerate the achievement of wider socio-economic objectives, as well as Serve as cornerstone for socioeconomic growth and stability.

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FACT SHEET: The President’s Budget for Fiscal Year   2025

Budget Details Vision to Protect Progress, Lower Costs, Protect and Strengthen Social Security and Medicare, Invest in America and the American People, and Reduce the Deficit

From Day One of this Administration, President Biden has tackled challenges head-on while delivering long-lasting results. Over the past three years, he has overseen a strong economic recovery, amassed one of the most successful legislative records in generations, grown the economy from the middle out and bottom up, and delivered important progress for the American people.

Since the President and Vice President took office, the economy has added about 15 million jobs, the unemployment rate has remained below 4 percent for two years in a row—a more than 50-year record—while inflation has fallen by two-thirds. Our strong labor market has meant higher paychecks for working Americans, with inflation-adjusted wages and wealth higher now than before the pandemic. The President’s top economic priority remains lowering costs for hardworking Americans. Under his leadership, the Administration is working to bring down prescription drug costs, health insurance premiums, utility bills, and costs for everyday goods and services—all while taking on junk fees that some banks, airlines, and other big corporations use to rip off Americans. At the same time, he has also restored U.S. leadership on the world stage while keeping Americans safe and promoting democracy at home and abroad.

The President has delivered this progress while fulfilling his commitment to fiscal responsibility. The deficit is over $1 trillion lower than when President Biden took office, thanks in large part to the strength of our economic recovery. In addition, the President has also enacted another roughly $1 trillion in savings over the next decade through the Fiscal Responsibility Act, and through Inflation Reduction Act provisions that empower Medicare to negotiate lower prescription drug prices, cap insulin at $35 per month for seniors, and make our tax system fairer by making billion-dollar corporations pay a minimum tax and enabling the IRS to crack down on wealthy and corporate tax cheats.

The Budget details the President’s vision to protect and build on his Administration’s progress by continuing to lower costs for working families, protect and strengthen Social Security and Medicare, invest in America and the American people to make sure the middle class has a fair shot and we leave no one behind, and reduce the deficit by cracking down on fraud, cutting wasteful spending, and making the wealthy and corporations pay their fair share. Building on the President’s record of fiscal responsibility, his Budget reduces the deficit by $3 trillion over the next 10 years—on top of paying for new investments.

The President’s vision of progress, possibilities, and resilience is in stark contrast to Congressional Republicans, who have repeatedly fought to slash critical programs the American people count on and increase the deficit by hundreds of billions of dollars, including by attempting to repeal the parts of the Inflation Reduction Act that take on special interests like Big Pharma, big corporations, and wealthy tax cheats. The President’s Budget:

Lowers Costs for the American People

The President has made lowering costs for hardworking families his top domestic priority. Under his leadership we have seen significant progress bringing down inflation. Inflation is down by more than two-thirds, and costs have fallen for key household purchases from a gallon of gas to a gallon of milk. While Congressional Republicans have consistently taken actions that would raise costs for working families, the President’s Budget would continue lowering costs for families.

Lowers Drug Prices and Expands Access to Prescription Drugs. Thanks to action taken by the Administration, millions of seniors and people with disabilities are saving money on their drug costs, and the Administration announced the first ten drugs for which prices will be negotiated as it continues implementation of the Inflation Reduction Act. The Budget builds on this success by significantly increasing the pace of negotiation, bringing more drugs into negotiation sooner after they launch, expanding the Inflation Reduction Act’s inflation rebates and $2,000 out-of-pocket prescription drug cost cap beyond Medicare and into the commercial market, and other steps to build on the Inflation Reduction Act drug provisions. In addition, the Budget extends the $35 cost-sharing cap for a month’s supply of insulin to the commercial market. The Budget also includes proposals to ensure Medicaid and the Children’s Health Insurance Program (CHIP) are prudent purchasers of prescription drugs and limits Medicare Part D cost-sharing for high-value generic drugs, such as those used to treat hypertension and hyperlipidemia, to no more than $2 per month for Medicare beneficiaries. These reforms will not only cut costs for the Federal government by $200 billion; they will also save billions of dollars for seniors.

Cuts Taxes for Families with Children and American Workers. President Biden’s tax cuts cut child poverty in half in 2021 and are saving millions of people an average of about $800 per year in health insurance premiums today. Going forward, in addition to honoring his pledge not to raise taxes on anyone earning less than $400,000 annually, President Biden’s tax plan would cut taxes for middle- and low-income Americans by $765 billion over 10 years. The Budget restores the full Child Tax Credit enacted in the American Rescue Plan, which helped cut child poverty nearly in half in 2021 to its lowest level in history and narrowed racial disparities in access to the credit. The President’s Budget would restore the expanded Child Tax Credit, lifting 3 million children out of poverty and cutting taxes by an average of $2,600 for 39 million low- and middle-income families that include 66 million children. This includes 18 million children in low-income families who would be newly eligible for the full credit, and 2 million children living with a caregiver who is at least 60 years old. It would also provide breathing room for day-to-day expenses by allowing families to receive their tax credit through monthly payments. And by strengthening the Earned Income Tax Credit for low-paid workers who aren’t raising a child in their home, the President’s Budget would cut taxes by an average of $800 for 19 million working individuals or couples. That includes 2 million older workers age 65 and older and 5 million young adults age 18 to 24 who would be newly eligible for the credit.

Lowers Child Care Costs for Hard-Working Families. The President is committed to providing relief to hard-working families. His Budget creates a historic new program under which working families with incomes up to $200,000 per year would be guaranteed affordable, high-quality child care from birth until kindergarten, with most families paying no more than $10 a day, and the lowest income families paying nothing—providing a lifeline to the parents of more than 16 million children. The Budget also includes $8.5 billion for the Child Care and Development Block Grant (CCDBG) which will help states expand child care assistance to serve over 2 million low-income children.

Increases Affordable Housing Supply to Reduce Housing Costs. The President believes that all Americans should be able to afford a quality home, which is why the Budget includes a historic investment of more than $258 billion that would build or preserve over 2 million units. The Budget builds on previous investments and actions by this Administration to boost housing supply and lower housing costs, particularly for lower- and middle-income households. The Budget expands the existing Low-Income Housing Tax Credit and proposes a new Neighborhood Homes Tax Credit. To further address the critical shortage of affordable housing in communities throughout the Nation, the Budget provides $20 billion in mandatory funding for a new Innovation Fund for Housing Expansion. The Budget invests $1.3 billion in the HOME Investment Partnerships Program (HOME) to construct and rehabilitate affordable rental housing and provide homeownership opportunities. The Budget also provides $7.5 billion in mandatory funding for new Project-Based Rental Assistance contracts to incentivize the development of new climate-resilient affordable housing. Together these proposals would expand the supply of safe and affordable housing, bring new units to market, and ultimately help curb cost growth across the broader rental market.

Expands Access to Homeownership and Affordable Rent and Reduces Down Payments for First-Time and First-Generation Homebuyers. The Budget proposes a new Mortgage Relief Credit to help increase access to affordable housing. The proposal includes a new tax credit for middle-class first-time homebuyers of up to $10,000 over two years to ease affordability challenges. In addition, to unlock starter home inventory and allow middle-class families to move up the housing ladder and empty nesters to right size, the President is calling on Congress to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home. The Budget also provides $10 billion in mandatory funding for a new First-Generation Down Payment Assistance program to address homeownership and wealth gaps. For renters, the Budget proposes $32.8 billion in discretionary funding for the Housing Choice Voucher Program to maintain and protect critical services for all currently assisted families and support an additional 20,000 households. The Budget also provides $9 billion to establish a housing voucher program for all 20,000 youth aging out of foster care annually, and provides $13 billion to incrementally expand rental assistance for 400,000 extremely low-income veteran families, paving a path to guaranteed assistance for all who have served the Nation and are in need.

Reduces the Cost of College and Lifts the Burden of Student Debt. From Day One of his Administration, President Biden vowed to fix the student loan system and make sure higher education is a pathway to the middle class—not a barrier to opportunity. Already, the President has cancelled more student debt than any President in history, approving debt cancellation for nearly 4 million borrowers through more than two dozen executive actions. The Budget includes a $12 billion mandatory Reducing the Costs of College Fund that will fund strategies to lower college costs for students, including a new Classroom to Career Fund that will enable students to more affordably obtain postsecondary degrees by increasing access to career-connected dual enrollment opportunities. The Budget also builds on the President’s historic actions to reduce student debt and the cost of college by eliminating the origination fees charged to borrowers on every new federal student loan, which costs families billions. In addition, to help low- and middle-income students overcome financial barriers to postsecondary education, the Budget proposes to increase the discretionary maximum Pell Grant by $100 and thereby expand the reach of the program to help over 7.2 million students attend a public or non-profit college. The Budget builds on successful bipartisan efforts to increase the maximum Pell Grant award by $900 over the past two years—the largest increase in more than 10 years. The Budget also expands free community college through a Federal-State partnership and provides two years of subsidized tuition for students from families earning less than $125,000 enrolled in a four-year Historically Black College and University (HBCU), Tribally Controlled College and University (TCCU), or Minority-Serving Institution (MSI). 

Lowers Health Care Costs. The President believes that healthcare is a right, not a privilege. With enrollment in Marketplace coverage at an all-time high, the Budget builds on the incredible success of the Affordable Care Act by making permanent the expanded premium tax credits that the Inflation Reduction Act extended, and providing Medicaid-like coverage to individuals in States that have not adopted Medicaid expansion, paired with financial incentives to ensure States maintain their existing expansions. For Medicaid and CHIP, the Budget allows States to extend the existing 12-month continuous eligibility for all children to 36 months, and allows States to provide continuous eligibility for children from birth until they turn age 6. Further, the Budget prohibits enrollment fees and premiums in CHIP.

Reduces Home Energy and Water Costs. The Budget provides $4.1 billion for the Low Income Home Energy Assistance Program (LIHEAP), helping families access home energy and weatherization assistance—vital tools for protecting families from extreme weather and climate change. In addition, the Budget proposes to allow States the option to use a portion of their LIHEAP funds to provide water bill assistance to low-income households.

Protects and Strengthens Social Security and Medicare

Social Security and Medicare are more than government programs, they’re a promise—a rock-solid guarantee that generations of Americans have counted on—that after a life of hard work, you will be able to retire with dignity and security. As the President has made clear, he will reject any efforts to cut or undermine the Medicare or Social Security benefits that seniors and people with disabilities have earned and paid into their entire working lives. The Budget honors that ironclad commitment by firmly opposing benefit cuts to either program and by embracing reforms that would protect and strengthen these programs. The President remains committed to working with the Congress to protect and strengthen Medicare and Social Security for this and future generations and strongly rejects Congressional Republicans’ attempts to cut benefits for hardworking Americans.

Protects and Strengthens Medicare. The Budget strengthens Medicare by extending the solvency of the Medicare Hospital Insurance (HI) trust fund indefinitely by modestly increasing the Medicare tax rate on incomes above $400,000, closing loopholes in existing Medicare taxes, and directing revenue from the Net Investment Income Tax into the HI trust fund as was originally intended. The Budget closes the loophole that allows certain business owners to avoid paying Medicare taxes on these profits and raises Medicare tax rates on earned and unearned income from 3.8 percent to 5 percent for those with incomes over $400,000. In addition, the Budget directs an amount equivalent to the savings from the proposed Medicare drug reforms into the HI trust fund.

Protects the Social Security Benefits that Americans Have Earned. The Administration is committed to protecting and strengthening Social Security. In particular, the Administration looks forward to working with Congress to responsibly strengthen Social Security in a way that ensures no benefit cuts; extends solvency by asking the highest-income Americans to pay their fair share; and improves financial security for seniors and people with disabilities, especially those who face the greatest challenges making ends meet.

Ensures That Americans Can Access the Benefits They’ve Earned. The Budget also invests in staff, information technology, and other improvements at the Social Security Administration (SSA), which will improve customer service at SSA’s field offices, State disability determination services, and teleservice centers for retirees, individuals with disabilities, and their families.

Cuts the Deficit by Promoting Tax Fairness

The President has demonstrated that we can invest in America while achieving meaningful deficit reduction. The deficit is over $1 trillion lower than when President Biden took office, and the President has enacted roughly $1 trillion in additional deficit reduction, including through provisions that empower Medicare to negotiate lower prescription drug prices, cap insulin at $35 per month for seniors and people with disabilities, and establish a minimum tax for large corporations. The Administration looks forward to building on this progress with responsible investments that continue to grow America’s economy from the middle out and bottom up while improving the long-term budget outlook. The Budget proposes another roughly $3 trillion in savings over the next 10 years by making the wealthy and large corporations pay their fair share and closing tax loopholes and cutting wasteful spending on Big Pharma, Big Oil, corporate jets and other special interests, and cracking down on wealthy tax cheats. The President’s proposals to reduce the deficit are in sharp contrast to Congressional Republicans plans for tax giveaways skewed to wealthy and big corporations.

Requires Billionaires to Pay at Least 25 Percent of Income in Taxes. Billionaires make their money in ways that are often taxed at lower rates than ordinary wage income, or sometimes not taxed at all, thanks to giant loopholes and tax preferences that disproportionately benefit the wealthiest taxpayers. As a result, many of these wealthy Americans are able to pay an average income tax rate of just 8 percent on their full incomes—a lower rate than many firefighters or teachers. To finally address this glaring inequity, the President’s Budget includes a 25 percent minimum tax on the wealthiest 0.01 percent, those with wealth of more than $100 million.

Raises Tax Rates for Large Corporations. Corporations received an enormous tax break in 2017. While their profits soared, their investment in their workers and the economy did not. Their shareholders and top executives reaped the benefits, without the promised trickle down to workers, consumers, or communities. The President’s Budget would set the corporate tax rate at 28 percent, still well below the 35 percent rate that prevailed prior to the 2017 tax law. In addition, the Budget would raise the Inflation Reduction Act’s corporate minimum tax rate on billion-dollar corporations that the President signed into law from 15 percent to 21 percent, ensuring the biggest corporations pay more of their fair share. These policies are complemented by other proposals to incentivize job creation and investment in the United States to help ensure broadly shared prosperity.

Cracks Down on Tax Avoidance by Large Multinationals and Big Pharma. For decades, countries have competed for multinational business by slashing tax rates, at the expense of having adequate revenues to finance core services. Thanks in part to the Administration’s leadership, more than 130 nations signed on to a global tax framework to finally address this race to the bottom in 2021. Many of our international partners, including many of the world’s largest economies, have implemented or will soon implement this transformational agreement. The President’s Budget proposes to do the same by reforming the international tax system to reduce the incentives to book profits in low-tax jurisdictions, stopping corporate inversions to tax havens, and raising the tax rate on U.S. multinationals’ foreign earnings from 10.5 percent to 21 percent. These reforms would ensure that profitable multinational corporations, including Big Pharma pay their fair share.

Denies Corporations Deductions for All Compensation Over $1 Million Per Employee. Executive pay has skyrocketed in recent decades, with CEO pay averaging more than 300 times that of a typical worker in 2022. The 2017 tax law’s corporate tax cuts only made this problem worse, producing massive boosts to executive compensation while doing nothing for low- and middle-income workers. While corporations can choose to give huge pay packages to their executives, President Biden believes that they don’t deserve a tax break when they do. His Budget proposes new policy to deny deductions for all compensation over $1 million paid to any employee of a C corporation, which would discourage companies from giving their executives massive pay packages and help level the playing field across C corporations.

Ends Capital Income Tax Breaks and Other Loopholes for the Very Wealthy.  The President’s Budget will end one of the most unfair aspects of our tax system—the fact that the tax rate the wealthy pay on capital gains and dividends is less than the tax rate that many middle-class families pay on their wages. Households making over $1 million—the top 0.3 percent of all households—will pay the same 39.6 percent marginal rate on their income just like a high-paid worker pays on their wages. Moreover, the Budget eliminates the loophole that allows the wealthiest Americans to entirely escape paying taxes on their wealth by passing it down to heirs.

Ensures That the IRS Can Continue to Collect Taxes Owed by Wealthy Tax Cheats. The Inflation Reduction Act addressed long-standing IRS funding deficiencies by providing stable, multi-year funding to improve tax compliance by finally cracking down on high-income individuals and corporations who too often avoided paying their lawfully owed taxes, and to improve service for the millions of Americans that do pay their taxes. Already, the IRS is using these resources to crack down on tax evasion by the wealthy and big businesses. It has collected more than $500 million in unpaid taxes from fewer than 2,000 delinquent millionaires, is recouping taxes from thousands of millionaires who did not fulfill their basic civic duty by filing a tax return, and is cracking down on high-end tax evasion like deducting personal use of corporate jets as a business expense. At the same time, the IRS is improving customer service and modernizing IT infrastructure. The President’s Budget would restore the full Inflation Reduction Act investment and provide new funding over the long-term to continue cutting the deficit by making sure that wealthy Americans and big corporations pay the taxes they owe through tax compliance initiatives and to continue improving service for taxpayers who are just trying to pay what they owe.

Invests in America and the American People

Expands and Protects Access to Health Care

Supports Family Planning Services, Maternal Health, and Health Equity. Americans deserve access to the healthcare they need, including maternal healthcare, contraception, and family planning services, which are essential to ensuring control over personal decisions about their own health, lives, and families. The Budget includes $390 million for the Title X Family Planning program to increase the number of patients served to 3.6 million. The Budget also builds on a nearly 200 percent funding increase for key programs that address maternal mortality over the course of the Administration, including $376 million to support the ongoing implementation of the White House Blueprint for Addressing the Maternal Health Crisis to reduce maternal mortality and morbidity rates, and address the highest rates of perinatal health disparities.

Saves Lives by Advancing Behavioral Healthcare. In 2022, almost a quarter of adults had a mental illness, 13 percent of adolescents had serious thoughts of suicide, and overdose deaths continued near record highs. As a core pillar of his Unity Agenda, the President released a national strategy to transform how we understand and address mental health in America—and the Budget makes progress on this agenda by improving access to care for individuals and communities. The Budget requires all health plans to cover mental health and substance use disorder benefits, ensures that plans have an adequate network of behavioral health providers, and improves the Department of Labor’s (DOL) ability to enforce the law. The Budget builds on historic investments to improve access to mental health services, and makes significant investments in expanding the 988 Suicide and Crisis Lifeline that is projected to respond to 7.5 million contacts from individuals in distress in 2025 alone and expands mental health care and support services in schools. Additionally, the Administration has made historic advances in expanding access to treatment for opioid use disorder, including signing into law a bipartisan provision to expand the number of medical providers who can initiate treatment for opioid use disorder from 129,000 to nearly 2 million. The Budget increases funding for the State Opioid Response grant program, which has provided treatment services to over 1.2 million people and enabled States to reverse more than 500,000 overdoses with over 9 million purchased overdose reversal medication kits.

Drives Healthcare Innovation to Discover New Treatments and Improve Health Outcomes. Investing in health care innovation and new treatments is a direct investment in the American people. The President’s Budget advances progress toward Biden Cancer Moonshot Goals and the White House Initiative on Women’s Health Research, enhances biodefense and public health infrastructure, and directly invests in treatment and prevention of infectious diseases. The Budget makes significant investments to work toward the President and First Lady’s signature Cancer Moonshot goals of reducing the cancer death rate by at least 50 percent over 25 years and improving the experience of people and families who are living with or who have survived cancer. The President and the First Lady launched the first-ever White House Initiative on Women’s Health Research, recognizing that women have been understudied and underrepresented in health research for far too long. The Administration proposes to transform the way the government funds women’s health research at the National Institutes of Health (NIH), including by increasing interdisciplinary research at NIH and creating a new nationwide network of centers of excellence and innovation in women’s health—and the Budget would double existing funding for the Office of Research on Women’s Health at NIH, to improve women’s health outcomes. Additionally, over the past three years, substantial progress has been made toward developing and implementing transformational capabilities to increase the Nation’s ability to respond to and prepare for emerging health threats. Building upon this progress, the Budget invests $9.8 billion to bolster public health capacity that will enable the Centers for Disease Control and Prevention to better serve and protect the American public. The Budget also invests in the treatment and prevention of infectious diseases, including Hepatitis C, HIV, and vaccine-preventable diseases.

Expands Healthcare, Benefits, and Services for Environmental Exposures. The Honoring our PACT Act of 2022 (PACT Act) represents the most significant expansion of veterans’ healthcare and disability compensation benefits for veterans exposed to toxins and other environmental exposures, including burn pits and Agent Orange, in 30 years. As part of the PACT Act, Congress authorized the Cost of War Toxic Exposures Fund (TEF) to fund increased costs above 2021 funding levels for healthcare and benefits delivery for veterans exposed to certain environmental hazards—and ensure there is sufficient funding available to cover these costs without shortchanging other elements of veteran medical care and benefits delivery. The Budget continues this commitment and includes $24.5 billion for the TEF in 2025, through funds appropriated by the Fiscal Responsibility Act, which is $19.5 billion above the 2023 enacted level.

Prioritizes Veterans’ Mental Health Services and Suicide Prevention for Veterans and Military Servicemembers. The Budget invests $135 million within the Department of Veterans Affairs (VA) research programs, together with $17 billion within the VA Medical Care program, to increase access to quality mental healthcare, with the goal of helping veterans take charge of their treatment and live full, meaningful lives. In addition, the Budget provides funding to further advance the Administration’s veteran suicide prevention initiatives and to support the Department of Defense’s efforts on Suicide Prevention and Response.

Supports America’s Workforce and Prepares America’s Economy for 21 st Century Challenges

Continues Implementation of the President’s Investing in America Agenda. The Budget provides a total of $78.4 billion for highway, highway safety, and transit formula programs, supporting the amounts authorized for year four of the Bipartisan Infrastructure Law. The Budget also reflects an additional $9.5 billion in advance appropriations provided by the Bipartisan Infrastructure Law for bridge replacement and rehabilitation, electric vehicle charging infrastructure, and other programs to improve the safety, sustainability, and resilience of America’s transportation network.

Provides National, Comprehensive Paid Family and Medical Leave and Calls for Paid Sick Days. The Budget proposes a national, comprehensive paid family and medical leave program, providing up to 12 weeks of leave to allow eligible workers to take time off to care for and bond with a new child; care for a seriously ill loved one; heal from their own serious illness; address circumstances arising from a loved one’s military deployment; or find safety from domestic violence, sexual assault, or stalking. The President also calls on Congress to require employers to provide seven job-protected paid sick days each year to all workers.

Empowers, Protects, and Invests in Workers. Workers power America’s economic prosperity, building the economy from the middle out and bottom up. To ensure workers are treated with dignity and respect in the workplace and are paid the wages they’re owed, the Budget invests $2 billion in the Department of Labor’s worker protection agencies. The Budget also proposes funding for the Equal Employment Opportunity Commission to support implementation and enforcement of the Pregnant Workers Fairness Act and advancement of pay equity through the collection and analysis of employer pay data. Additionally, the Budget includes funding to strengthen the National Labor Relations Board’s capacity to enforce workers’ rights to organize and collectively bargain for better wages and working conditions.

Confronts the Climate Crisis While Spurring Clean Energy Innovation, Increasing Resilience, and Protecting Natural Resources

Lowers Energy Costs and Catalyzes Clean Energy and Economic Growth in Rural Communities. The Budget builds on the President’s historic Inflation Reduction Act to reduce energy bills for families, expand clean energy, transform rural power production, and create thousands of good-paying jobs for people across rural America. The Budget provides funding for loan guarantees for renewable energy systems and energy efficiency improvements for farmers and rural small businesses, and authority for rural electric loans to support additional clean energy, energy storage, and transmission projects that would create good-paying jobs.

Invests in Clean Air and Reduces Health and Environmental Hazards for At-Risk Communities. The Budget provides a total of $1.5 billion for the Environmental Protection Agency’s Office of Air and Radiation to continue the development of national programs, policies, and regulations that control air pollution and radiation exposure. The Budget provides $8.2 billion for the Department of Energy (DOE) to address legacy waste and contamination in communities, as well as funding for EPA’s Toxic Substances Control Act enforcement. The Administration will ensure the investments for the management of toxic chemicals, including per-and polyfluoroalkyl substances, cleanup of legacy pollution, and long-term stewardship of these sites align with the Justice40 Initiative to benefit disadvantaged communities.

Creates Jobs by Building Clean Energy Infrastructure. The Budget invests $1.6 billion through the DOE to support clean energy workforce and infrastructure projects across the Nation, including funding to weatherize and retrofit homes of low-income Americans, create good jobs and ensure reliable supply chains by manufacturing clean energy components here at home, electrify Tribal homes and transition Tribal colleges and universities to renewable energy, and support utilities and State and local governments in building a grid that is more secure, reliable, resilient, and able to integrate electricity from clean energy sources. These investments, which complement and bolster the historic funding in the Bipartisan Infrastructure Law and Inflation Reduction Act, will create good-paying jobs and revitalize American manufacturing while driving progress toward the Administration’s climate goals, including 100% carbon pollution-free electricity by 2035.

Strengthens Climate Resilience in Communities and Ecosystems. Building on the National Climate Resilience Framework, the Budget invests $23 billion in climate adaptation and resilience across the federal government to address the increasing severity of flood, wildfire, drought, and other extreme weather events fueled by climate change, including funding to support the wildland firefighting workforce through permanent and comprehensive pay reform. The Budget also provides funding to help farmers, ranchers, and forestland owners meet production goals in the face of a changing climate while conserving, maintaining, and restoring natural resources on their lands. The Budget complements the historic Bipartisan Infrastructure Law and the Inflation Reduction Act, which dedicate more than $50 billion across the Federal government to advance climate resilience strategies in every community in America.

Supports and Expands the American Climate Corps. Last year, the Administration announced the launch of the American Climate Corps (ACC) to mobilize a new, diverse generation of more than 20,000 clean energy, conservation, and climate resilience workers, and this year, the first cohort of ACC members will begin their service. The Budget would provide mandatory funding to expand the ACC over the next decade by supporting an additional 50,000 ACC members annually by 2031. The ACC will provide job training and service opportunities on a wide range of projects that tackle climate change in communities around the country.

Doubles Down on America’s Global Climate Leadership . Beyond leading by example through domestic investments, the Budget provides a path to achieving the President’s $11 billion commitment for international climate finance. The Budget also supports $3 billion contribution through mandatory funding to finance the Green Climate Fund. The Budget builds on historic international climate finance progress made over the course of this Administration, in which estimated 2023 levels of $9.5 billion represent a near-sixfold increase from 2021.

Invests in America’s Families

Supports a Strong Nutrition Safety Net. The Budget provides $8.5 billion for critical nutrition programs, including $7.7 billion to fully fund the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to serve all eligible participants, which is critical to the health of pregnant women, new mothers, infants, and young children. By investing in outreach and modernization, WIC would reach 800,000 more women, infants, and children each month, providing vital nutrition assistance to nearly 7 million individuals, up from 6.2 million in 2021. In addition, the Budget includes an emergency contingency fund that would provide additional resources when there are unanticipated cost pressures.

Builds a Strong Foundation for Families with Universal Pre-K and Head Start. The Budget funds voluntary, universal, free preschool for all four million of America’s four-year-olds and charts a path to expand preschool to three-year-olds. High-quality preschool would be offered in the setting of the parent’s choice—from public schools to child care providers to Head Start. The Budget also increases Head Start funding by $544 million to support the Administration’s goal to reach pay parity between Head Start staff and public elementary school teachers with similar qualifications over time. Together these proposals would support healthy child development, help children enter kindergarten ready to learn, and support families by reducing their costs prior to school entry and allowing parents to work.

Expands Opportunity and Advances Equity

Advances Efforts to End Homelessness. The Budget provides $4.1 billion for Homeless Assistance Grants to continue supporting approximately 1.2 million people experiencing homelessness each year and to expand assistance to approximately 25,000 additional households, specifically survivors of domestic violence and homeless youth. These new resources build on Administration efforts that have expanded assistance to roughly 140,000 additional households experiencing homelessness since the President took office. The Budget further reflects the Administration’s commitment to make progress toward ending homelessness by providing $8 billion in mandatory funding for the acquisition, construction, or operation of housing to expand housing options for people experiencing or at-risk of homelessness, as well as $3 billion in mandatory funding for grants to provide counseling and emergency rental assistance to older adult renters at-risk of homelessness.

Honors Commitments to Support Tribal Communities. Incorporating feedback from Tribal consultations, the Budget continues to provide robust support for Tribal Nations and Native communities in keeping with our federal trust and treaty responsibilities. For example, the Budget invests $4.6 billion for the Department of Interior’s (DOI) Tribal programs. This investment in DOI’s Tribal programs build on historic investments in Indian Country under the American Rescue Plan, Inflation Reduction Act, and Bipartisan Infrastructure Law and promote long-term success by addressing critical infrastructure and climate adaptation needs in Native communities.

Expands Access to Capital for Small Businesses . Building on the historic growth in small business applications under the President and Vice President’s leadership, the Budget supports historic lending levels across the Small Business Administration’s (SBA) business lending programs. The over $58 billion in lending provided in the Budget would address the need for greater access to affordable capital, particularly in underserved communities. The Budget proposes a new direct 7(a) lending program, which would further enable SBA to address gaps in access to small dollar lending.

Promotes Equity in Education and Builds a Diverse, Capable STEM Workforce. The Budget increases institutional capacity at HBCUs, TCCUs, MSIs, and under-resourced institutions, including community colleges, and doubles funding by providing $100 million for four-year HBCUs, TCCUs, and MSIs to expand research and development infrastructure. In support of the CHIPS and Science Act’s priority of building a diverse, STEM-capable workforce, the Budget provides $1.4 billion for STEM education and workforce development programs at the National Science Foundation that have an emphasis on diversity, equity, inclusion, and accessibility. The Budget also includes funding for programs focused on increasing the participation of groups historically underrepresented in science and engineering fields, including women and girls and people of color.

Protects Americans at Home and Abroad

From taking action to combat hate in America’s communities, tackle gun violence, and strengthen trust in the Nation’s democratic institutions, to defending freedom around the globe, and rebuilding key alliances, the Administration has taken decisive action to strengthen America at home and abroad, all with the goal of keeping Americans safe. The Budget builds on this progress with proposals to continue investing in State, local, Tribal, and Federal law enforcement, reducing gun violence and crime, securing the border and strengthening the immigration system, and revitalizing U.S. alliances and partnerships while confronting global threats and strengthening America’s military.

Secures the Border and Strengthens the Immigration System. In October 2023, the Administration transmitted an emergency supplemental request for managing the southwest border and migration totaling $13.6 billion. The Budget includes, and therefore reiterates the need for, the unmet needs from the October supplemental request. The Budget includes investments to build longer-term capacity in the areas of border security, immigration enforcement, and countering illicit fentanyl. This amount includes funding to hire 1,300 additional Border Patrol Agents to secure the border, 1,000 additional Customs and Border Protection Officers to stop illicit fentanyl and other contraband from entering the U.S., an additional 1,600 Asylum Officers and support staff to facilitate timely immigration dispositions, as well as $849 million for cutting-edge detection technology at ports of entry. The Budget also reiterates the ask for funding to hire 375 new immigration judge teams to help reduce the immigration case backlog. Taken together, these long-term capacity building investments equip the Nation’s border security and immigration system to more effectively respond to challenges present along the border.

Tackles Crime, Reduces Gun Violence, and Makes America’s Communities Safer. The Budget makes significant investments to bolster Federal law enforcement capacity to strengthen public safety and it also pursues new mandatory investments to combat violent crime and support victims. The Budget includes $17.7 billion for Department of Justice law enforcement, including $2 billion, an increase of over 30 percent since 2021, for the Bureau of Alcohol, Tobacco, Firearms, and Explosives to effectively investigate and prosecute gun crimes. To support state, local, and Tribal law enforcement efforts, the Budget proposes $31.8 billion in mandatory funding to support President Biden’s Safer America Plan, and complements this plan with proposed discretionary investments of $270 million for the COPS Hiring Program and $100 million for community violence intervention and prevention. The Budget also builds upon the Safer America Plan by investing an additional $1.2 billion over five years to launch a new Violent Crime Reduction and Prevention Fund to give law enforcement the support they need to focus on violent crime, including support to hire 4,700 detectives to help drive down the high rate of unsolved violent crimes. In support of victims of crime, the Budget also requests $7.3 billion to replenish and reform the Crime Victims Fund to ensure a stable and predictable source of funding is available to support critical victim service and compensation programs over the next decade.

Prioritizes Efforts to End Gender-Based Violence. The Administration has prioritized funding for programs under the Violence Against Women Act of 1994 (VAWA). These programs have seen funding increased by over 35 percent since 2021 and the Budget proposes further expansion to $800 million for programs under VAWA, including key investments in sexual assault services, transitional housing, and legal assistance for survivors. The Budget also makes clear the Administration’s priority to strongly support underserved and Tribal communities by providing $15 million for culturally-specific services, $5 million for underserved populations, $25 million to assist enforcement of Tribal special domestic violence jurisdiction under VAWA 2022’s expansions, $3 million to support Tribal Special Assistant U.S. Attorneys, and $10 million for a new special initiative to address Missing and Murdered Indigenous People (MMIP).

Combats Narcotics Trafficking. The Budget provides $3.3 billion to the Drug Enforcement Administration (DEA) to combat drug trafficking, including $1.2 billion to combat opioid trafficking, save lives, and make our communities safer. The Budget invests an additional $18 million in Domestic Counter-Fentanyl Threat Targeting Teams at the Drug Enforcement Administration to enhance America’s fight against the transnational criminal networks pushing deadly illicit fentanyl in America’s communities. The Budget also provides $494 million in grants supporting efforts to address substance use. The Budget includes funding to disrupt the international synthetic drug trade which would counter the worldwide flow of fentanyl and other synthetics that endanger public safety and health, and contribute to tens of thousands of drug-overdose deaths in the United States annually.

Reiterates the Administration’s Request for Immediate Funding for Urgent National Security Priorities Related to Ukraine, Israel, and the Indo-Pacific. In October 2023, the Administration transmitted an emergency supplemental request totaling $92 billion to Congress for urgent national security needs. This request included funding to support Ukraine as it continues to defend itself against Russian aggression, Israel’s defense against terrorism, the Indo-Pacific’s regional security, life-saving humanitarian assistance, including for the Palestinian people, and other national security priorities. The request would also make significant and much needed investments in the American defense industrial base, benefitting U.S. military readiness and helping to create and sustain jobs in dozens of states across America. Absent congressional action on this emergency request, the United States will not be able to continue to provide support to Ukraine to meet their battlefield needs as they defend against Russian attacks every day, provide urgently needed military support to allies and partners, make critical DIB investments, or sustain life-saving assistance and development in some of the world’s most vulnerable areas. The Administration appreciates the bipartisan supplemental legislation that passed the Senate, which would address these urgent needs and advance our own national security.

Supports Ukraine, European Allies, and Partners. The Budget continues critical support for Ukraine, the North Atlantic Treaty Organization (NATO) allies, and other European partner states by prioritizing funding to enhance the capabilities and readiness of U.S., allied, and partner forces in the face of continued Russian aggression. However, this Budget cannot address the critical support to Ukraine that requires congressional action on the Administration’s October 2023 National Security Supplemental request.

Promotes Integrated Deterrence in the Indo-Pacific and Globally . To sustain and strengthen deterrence, the Budget prioritizes China as America’s pacing challenge in line with the 2022 National Defense Strategy. The Department of Defense’s 2025 Pacific Deterrence Initiative highlights some of the key investments the Federal government is making, focuses on strengthening deterrence in the region, and demonstrates the Administration’s long-term commitment to the Indo-Pacific. DOD is building the concepts, capabilities, and posture necessary to meet these challenges, working to integrate deterrence efforts across the U.S. Government and with U.S. allies and partners.

Ensures Readiness Across America’s Armed Forces. The Budget continues to ensure that U.S. Soldiers, Sailors, Airmen, Marines, Coast Guardsmen, and Guardians remain the best trained and equipped fighting forces in the world. The Budget places additional emphasis on foundational investments to sustain current weapon systems and support increased training across DOD.

Invests in the Submarine Industrial Base.  DOD conducted the 2025 Submarine Industrial Base (SIB) study to determine how to complete the once-in-a-generation recapitalization of the Submarine Force needed to increase the United States’ ability to build and sustain attack submarines to meet U.S. military requirements. These investments will also support the Administration’s commitments under AUKUS, the first major deliverable of which was the historic decision to support Australia acquiring conventionally-armed, nuclear-powered submarines. In line with the results on this study, the Budget includes $3.4 billion for the SIB in 2025.

Provides Life-Saving Humanitarian Assistance and Combats Global Food Insecurity. The Budget provides $10.3 billion in life-saving humanitarian and refugee assistance to support more than 330 million people in need in more than 70 countries in addition to the emergency supplemental request of $10 billion to address unprecedented global humanitarian needs, including the dire humanitarian situation facing Palestinians in Gaza. The Department of State and the United States Agency for International Development will have to reduce life-saving assistance around the globe without the additional $10 billion in humanitarian assistance requested in the Administration’s October 2023 National Security Supplemental Request.

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Biden releases 2025 budget proposal, laying out vision for second term

Washington — President Biden on Monday released a budget proposal aimed at getting voters' attention: It would offer tax breaks for families, lower health care costs, smaller deficits and higher taxes on the wealthy and corporations.

Unlikely to pass the House and the Senate to become law, the proposal for fiscal 2025 is an election year blueprint about what the future could hold if Mr. Biden and enough of his fellow Democrats win in November. The president and his aides previewed parts of his budget going into last week's State of the Union address , and they provided the fine print on Monday.

If the Biden budget became law, deficits could be pruned $3 trillion over a decade. It would raise tax revenues by a total of $4.9 trillion over that period and use roughly $1.9 trillion to fund various programs, with the rest going to deficit reduction.

Biden aides said their budget was realistic and detailed while rival measures from Republicans were not financially viable.

"Congressional Republicans don't tell you what they cut, who they harm," White House budget director Shalanda Young said. "The president is transparent, details every way he shows he values the America people."

What's in Biden's budget

Parents could get an increased child tax credit in 2025, as payments would return briefly to the 2021 level funded by Mr. Biden's coronavirus pandemic relief package. Homebuyers could get a tax credit worth up to $10,000 in down payment aid for first-time buyers. Corporate taxes would jump upward, while billionaires would be charged a minimum tax of 25%.

Mr. Biden said in his State of the Union that Medicare should have the ability to negotiate prices on 500 prescription drugs, which could save $200 billion over 10 years. Aides said his budget does not specify how many drug prices would be subject to negotiations.

The president is traveling Monday to Manchester, New Hampshire, where he'll call on Congress to apply his $2,000 cap on drug costs and $35 insulin to everyone, not just people who have Medicare. He'll also seek to make permanent some protections in the Affordable Care Act that are set to expire next year.

The proposal would provide about $900 billion for defense in fiscal year 2025, about $16 billion more than the baseline.

The Biden administration is still seeking money to help Ukraine defend itself against Russia and aid for Israel. His budget plan reiterates the supplemental funding request made last October for Ukraine, Israel and humanitarian relief for Palestinians.

It's also requesting funding to expand personnel and resources at the U.S. southern border. Still, military spending over 10 years would fall by $146 billion to $9.57 trillion.

One key theme in the budget plan is an effort to help families afford their basic needs, as the impact of inflation hitting a four-decade high in 2022 continues to leave many voters feeling as though they're worse off under Mr. Biden.

The budget proposal includes $258 billion to help build or preserve 2 million homes, helping to address a national shortage that has kept housing prices high. Parents making under $200,000 annually would have access to child care, with most eligible families paying no more than $10 a day.

It would eliminate origination fees on government student loans, possibly saving borrowers $1,000 over the life of the debt. It also includes $12 billion to help universities develop strategies for reducing their costs.

All of this is a chance for Mr. Biden to try to define the race on his preferred terms, just as the all-but-certain Republican nominee, Donald Trump, wants to rally voters around his agenda.

"A fair tax code is how we invest in things that make this country great: health care, education, defense and so much more," Mr. Biden said at last Thursday's State of the Union address, adding that his predecessor enacted a $2 trillion tax cut in 2017 that disproportionately benefited the top 1% of earners.

Trump, for his part, would like to increase tariffs and pump out gushers of oil. He called for a "second phase" of tax cuts as parts of his 2017 overhaul of the income tax code would expire after 2025. The Republican has also said he would slash government regulations. He has also pledged to pay down the national debt, though it's unclear how without him detailing severe spending cuts.

"We're going to do things that nobody thought was possible," Trump said after his wins in last week's Super Tuesday nomination contests.

House Republicans on Thursday voted their own budget resolution for the next fiscal year out of committee, saying it would trim deficits by $14 trillion over 10 years. But their measure would depend on rosy economic forecasts and sharp spending cuts, reducing $8.7 trillion in Medicare and Medicaid expenditures. Mr. Biden has pledged to stop any cuts to Medicare.

"The House's budget blueprint reflects the values of hard-working Americans who know that in tough economic times, you don't spend what you don't have — our federal government must do the same," House Speaker Mike Johnson of Louisiana said in a statement.

Meanwhile, Congress is still working on a budget for the current fiscal year. On Saturday, Mr. Biden signed into law a $460 billion package to avoid a shutdown of several federal agencies, but lawmakers are only about halfway through addressing spending for this fiscal year.

What’s in Biden’s $850-billion defense budget proposal?

Subscribe to this week in foreign policy, michael e. o’hanlon and michael e. o’hanlon director of research - foreign policy , director - strobe talbott center for security, strategy, and technology , co-director - africa security initiative , senior fellow - foreign policy , strobe talbott center for security, strategy, and technology , philip h. knight chair in defense and strategy @michaeleohanlon alejandra rocha alejandra rocha senior research assistant - strobe talbott center for security, strategy, and technology.

March 15, 2024

• 13 min read

President Joe Biden submitted his fiscal year (FY) 2025 budget proposal on March 11, including a request for $850 billion in discretionary budget authority for the Department of Defense. The new request represents a 4.1 percent increase from the FY 2023 enacted level—or a $34 billion increase. 1 Once inflation is taken into account, however, that projected two-year growth totaling 4.1 percent turns into negative growth, given that aggregate inflation over the last two years totaled about 7 percent.

The Biden administration did not have much choice in the matter since Biden’s deal with then-House Speaker Kevin McCarthy in spring 2023 capped defense spending for FY 2025 at the requested level. The FY 2025 total grows to $895 billion if the National Nuclear Security Administration’s nuclear weapons activities (and a few other, smaller things) are also included; indeed, formally speaking, the “National Defense Budget” of the United States (called the 050 budget function by the Office of Management and Budget) includes those funds as well.

By any measure—but particularly in this election year and in this era of competing budget priorities—that is an enormous amount of money that will surely raise many eyebrows. The sum prompts questions about how it compares internationally and historically. And most importantly, it begs an exploration of its purpose. What is the money for? Why does the military cost this much? Why is it of its current size? And what is it intended to do?

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What is the money for?

One way to understand the U.S. national defense budget is to break it down by broad function, or in the language of budgeteers, by “appropriations title.” In rough numbers, this approach shows that the United States is proposing to allocate, in FY 2025, approximately :

• $182 billion a year on military personnel (for active, reservist, and retired personnel but not including costs associated with the Department of Veterans Affairs).
• $338 billion a year on operations and maintenance.
• $168 billion a year on the procurement of weaponry and other equipment.
• $143 billion a year in Research, Development, Test, and Evaluation (RDT&E) funding.

Personnel funds pay for an all-volunteer force that the nation has rightly decided should be well compensated, at a time when recruiting woes make any consideration of economization almost unthinkable. Operations and maintenance accounts include salaries and benefits for the 795,000 civilians who work full-time for the Department of Defense, and also pay for equipment upkeep, training, fuel, many spare parts, and more mundane aspects of running perhaps the second-largest organization on Earth. 2 Procurement funds purchase the cutting-edge equipment that, along with our people, gives America’s military its fighting edge. Finally, RDT&E pays not only for basic science and laboratory work, and initial design and development, but also for prototyping and testing advanced equipment. None of these categories of military expenditure is easily reduced; each is critical to what makes the American military successful and strong.

U.S. versus global military spending

Shifting focus to an international perspective, in 2023, the United States spent a towering $905.5 billion on defense, more than twice what the rest of NATO spends ($397.7 billion). Meanwhile, U.S. rivals and adversaries collectively spent an estimated $301.6 billion, with China accounting for approximately $219.5 billion and Russia for $74.8 billion. In fact, U.S. defense spending accounted for over 40 percent of the global total for military expenditures. These figures underscore the immense scale of U.S. defense spending relative to that of other nations and are often cited by those who advocate for a smaller defense budget.

However, one should be wary of comparisons that rely solely on these metrics for three reasons.

• Some of these figures, particularly those of our rivals and adversaries, are uncertain and cannot be robustly backed by data.
• The seemingly straightforward comparison gets more nuanced when considering defense spending as a percentage of each country’s GDP. In 2023, the United States spent 3.4 percent of its GDP on defense. In comparison, Russia spent approximately 4.01 percent. Notably, NATO’s defense investment guideline sets the expectation that allies must spend at least 2 percent of their GDP on defense. Granted, many NATO allies fall short of this burden-sharing expectation—a reality that has incited former President Donald Trump’s wrath —with only 18 out of 32 allies expected to meet this requirement in 2024. Comparatively speaking, however, 3.36 percent is not dramatically higher than the guideline set by NATO.
• Dollars do not win wars; people, weapons, tactics, and strategies do. History is littered with examples of countries with larger military budgets losing wars (including the United States itself in Vietnam and Afghanistan).

When comparing Biden’s defense budget request on historical terms, the verdict on whether or not we are spending enough on defense also depends on how you look at it. On the one hand, this sum—in absolute dollar terms, adjusted for inflation—is still substantially greater than the Cold War average and indeed more than peak spending in that period. On the other hand, it is not as high a percentage of GDP as during the Cold War years; from 1950 to 1990, U.S. defense spending varied between roughly 4.5 percent and 10 percent of GDP.

The military’s size and objectives

Comparisons aside, what is the size of today’s military, and what are its designated objectives? Today’s U.S. military is comprised of 1.3 million active-duty troops and 800,000 reservists, backed up by about 750,000 civilian employees of the Department of Defense, along with an additional 2 million to 3 million contractor personnel engaged in the construction, maintenance, and logistical support of weaponry and infrastructure. According to official doctrine , the military is intended to have the following key capabilities:

• Fight, together with at least some allies, and defeat China or Russia (but not both at the same time), presumably in conflicts centered on the Western Pacific region and Eastern European region, respectively.
• Defend the American homeland while also maintaining a nuclear deterrent.
• Deter North Korea and Iran.
• Maintain momentum against transnational violent extremist organizations as part of the so-called “war on terror.”

In as crisp an explanation as one can find, former chief of staff of the U.S. Air Force, General David Goldfein, offered the following insights about what the Air Force, and by extension the entire U.S. military, needs to be able to successfully execute the five missions of the Trump administration’s National Defense Strategy (released in early 2018 by Secretary of Defense Jim Mattis—and something the Biden administration under Secretary Lloyd Austin changed only slightly in its own 2022 strategy):

“We’re told that we have to simultaneously, first, be able to defend the homeland. And as we are defending the homeland, we must ensure that we have a safe, secure, effective nuclear deterrent, and on our worst day as a nation, get the president where he needs to be when he needs to be there and stay connected to his leadership team and forces in the field to execute the nuclear deterrent. While we are doing that, we are expected to defeat a peer threat and ensure that while we are in a fight to defeat a peer in a return to great power competition that we’re also able to deter a rogue nation that might choose to take us on because they see that we’re anchored. And so we have to do those four things simultaneously while we do the fifth, which is to maintain momentum against violent extremism as a global campaign.”

This list does not even include other responsibilities either subsumed within the capabilities of any force that could do the above or, in some instances, that place additional burdens on the American armed forces. These may include disaster relief, joint exercises with allies around the world, and modest activities in Africa, Latin America, and South/Southeast Asia. It also does not explicitly include another crucial imperative: to innovate constantly and modernize the joint-service force.

This force-sizing framework amounts to a one-war (or “one enemy”) combat capability. To be sure, this scenario anticipates a major war against a capable enemy, and, as Goldfein alluded to, we are expected to be able to deter other threats while fighting this single war—but we are not prepared to fight simultaneous wars should deterrence fail. This one-war framework might further increase this risk by tempting other adversaries to take advantage of the opportunity and use military force in one region while U.S. forces are engaged elsewhere.

To put this reality into perspective, once the Berlin Wall fell in 1989, U.S. forces had for 25 years been organized around a two-war framework. However, those two overlapping wars were imagined to be against much less capable foes: the likes of Iraq, Iran, North Korea, or perhaps Syria or another relatively small state in a key strategic region like the Middle East. In fact, the United States was engaged in two overlapping wars for many years in Iraq and Afghanistan—though they differed from the typical scenarios envisioned in these force-sizing paradigms, since they were long and modest in scale, rather than short and big (like Operation Desert Storm in 1991). And even then, it turned out that the United States was not able to undertake both missions at the full required tempo simultaneously.

By way of further historical backdrop, during the Cold War, the United States generally aimed to be able to fight a major war alongside NATO allies against the Soviet bloc in Europe and at least one other simultaneous conflict (like the Korean or Vietnam wars) elsewhere. The U.S. military during the Cold War was generally at least 60 percent larger than it is today; in fact, it was more than twice as large during the Vietnam War. Today, being prepared to fight both China and Russia at the same time would likely require a military 25-50 percent larger than today’s (in rough numbers).

Linking force sizing and war planning

So, the Mattis/Austin framework is one way to understand the size, shape, structure, and global posture of America’s armed forces today. However, it’s worth taking a step back and evaluating whether factors like inertia, bureaucratic dynamics within the Pentagon, and America’s challenges in foreseeing strategic shifts influence our military capabilities. Indeed, the structure of U.S. military forces has changed little over the last 5 to 10 years, even as the last two administrations have dramatically changed the focus of American defense planning from regional contingencies to great-power deterrence. In fact, U.S. military force structure has actually not changed much since the 1990s.

Some advocates want the overall U.S. military, or at least its own services, to grow a substantial amount. But such ambitions are improbable. Although discussion continues around the idea of pursuing a 500-ship Navy with dozens of unmanned vessels, and although the Air Force still harbors hopes of a larger force structure itself—dating back to Goldfein’s “ 386-squadron Air Force ” vision—those services, as well as the Army and Marine Corps, have not changed in size by more than about 5-7 percent over the last 10 years. The Navy has grown modestly, as has the still-tiny Space Force; the other services have declined modestly, and force posture remains generally unchanged.

The Navy continues to struggle to reach a 300-ship size given the inertia and long construction timelines involved in any such changes. The Air Force would have to grow almost 25 percent to reach Goldfein’s goal—and no one is really trying to make that happen now. The Army remains below authorized strength largely because of a problem with recruiting.

Overseas basing has changed somewhat. Since 2022, there are now roughly 20,000 more troops in Central and Eastern Europe and more small bases and contingency access in parts of the Western Pacific. There is also a somewhat smaller Middle East presence than 10 years ago (and much smaller than 20 years ago). But the United States continues to have nearly 100,000 uniformed personnel in East Asia, about the same number in Europe, and about half that number in the broader Middle East/Persian Gulf region. Most of these forces stationed abroad do not cost much more to maintain overseas than they would at home; salaries and equipment costs are about the same either way, and host nations often cover some local costs for the American armed forces.

So, in addition to Goldfein’s five tasks, a more diffuse and general goal of maintaining multi-purpose forces with a substantial presence in three key parts of the world guides American defense strategy and force planning as well. A preference for some secrecy also may limit the degree to which the Trump and Biden administrations link the size and characteristics of the U.S. military to specific contingencies and missions.

There is one more big reason why it is hard to see a direct link between force sizing and war planning. For both the Trump and Biden administrations, the force’s quality has been seen as a higher priority than its exact size. Rather than encourage a debate about whether America needs an even larger military, planners have wanted to focus on military lethality, survivability, sustainability, resilience, and adaptability in an era of rapid technological change. In other words, many would reasonably argue that it is not all about quantity or about which country spends more, but about quality and what we get for the money—about what capabilities would allow our forces to sustain military advantages for the most relevant military scenarios of importance to the nation.

So, when it’s all put together, yes, we have a one-war planning framework, and yes, that helps drive force planning and shaping. However, bureaucratic politics, concern about other possible missions, and a certain inertia also contribute to American defense decisions. At times, that makes the system inefficient and expensive. But it also tends to create a certain hedging or insurance against the unexpected and unforeseen. Perhaps that is not all bad. As Congress gets to work evaluating and modifying the president’s request for national defense funding for FY 2025, there is room for debate about many specifics, to be sure. Yet to us at least, the overall magnitude of the American national defense budget does not seem out of kilter when measured against the geopolitical realities it is meant to address.

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• It is hard to compare with FY 2024 because, even though we are about halfway through the current fiscal year, the government continues to operate on a continuing resolution for this year—a continuation of the previous year’s budget—because Congress has not taken action on a proper budget.
• As measured in terms of total people, with the Chinese military probably larger.

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Biden’s Budget Proposal Gives Meager Boosts to Defense and Diplomacy

What the $7.3 trillion plan says about the u.s. president’s priorities..

• U.S. State Department
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Welcome back to Foreign Policy ’s SitRep. For those of you who missed the Oscars over the weekend, you also missed a commercial during the movie awards promoting AUKUS . (Here’s hoping French officials didn’t tune in.)

Here’s what’s on tap for the day: What Biden’s $7.3 trillion budget plan says about the administration’s defense priorities, Russia puts nuclear weapons closer to NATO soil, and the U.S. Congress puts TikTok on the clock to boot its Chinese owners.

The Biden Budget Battle

U.S. President Joe Biden unveiled a massive $7.3 trillion federal budget plan that includes only marginal increases for defense, diplomacy, and foreign aid as the administration feels pressure from foreign-policy hawks on one side and budget hawks on the other.

Under Biden’s proposal, the U.S. defense budget would go up by 1 percent. U.S. troops would get a 4.5 percent pay raise. The Pentagon wants to field 10 long-range hypersonic weapons. It’s hoping to harden ballistic missile defenses around the island of Guam, home to a U.S. base that would almost certainly be a major Chinese target if the superpowers were to ever go head-to-head. And it wants to buy more stealthy B-21 bombers that should be ready to fly in a few years.

Like most budget proposals when the opposition controls at least one chamber of Congress, this is probably dead on arrival as critics hammer Biden for not being ambitious enough in defense and diplomacy funding (though he is operating under constraints set by Republican-negotiated budget caps). But the proposal still offers important insights into how the administration is trying to balance domestic and foreign-policy priorities for the near future.

The soft-power side of the budget. Biden’s budget allocates $64.4 billion for foreign affairs programs, of which $58.8 billion would go to the State Department and U.S. Agency for International Development.

This includes around $4 billion to be spent over five years on programs to counter China’s geopolitical clout and economic influence worldwide, including infrastructure development projects to counter Beijing’s Belt and Road Initiative.

The proposal falls short of Biden’s fiscal year 2023 plan that sought just over $70 billion for diplomacy and development, and foreign affairs experts have warned the 2025 figure is not enough money to deal with all the proliferating crises around the world.

GOP criticisms. Back on the defense side, top Republicans say that a 1 percent increase in defense isn’t an increase at all, as it doesn’t keep pace with the inflation rate, which is over 3 percent.

(We’ll note that none of the Republican lawmakers criticizing the defense budget, as far as we can track, mentioned the budget caps that Republicans themselves pushed the administration to adhere to last year.)

The Army and Navy, for instance, which are both struggling to recruit new soldiers and sailors, are aiming to downsize their active-duty forces in the new budget.

“This budget projects weakness to every corner of the globe,” Sen. Roger Wicker, the top Republican on the Armed Services Committee, said in a statement after the budget rollout. “The national defense budget that our country needs is one with real, sustained growth, not quiet decline.”

Wicker said the Biden budget does little to keep up with China’s estimated 7.2 percent increase in defense spending (although the numbers vary depending on who you talk to), and he knocked the U.S. administration for not giving enough money for operations in the Indo-Pacific, failing to scale up munitions production, and slowing development of missile defenses.

Hands are tied. The Biden administration has defended the budget request as the best it can do after Congress tied its purse strings with new spending caps—and lawmakers’ inability to pass last year’s budget.

“The department has no way around that reality. Instead, we have been strapped with a series of continuing resolutions,” U.S. Deputy Secretary of Defense Kathleen Hicks said during a press briefing at the Pentagon on Monday. “Because of these statutory caps, and as good stewards of taxpayer dollars, we made smart, responsible choices to work within those limits.”

“We must continue to adapt, advance and innovate at speed and at scale across all domains, prioritizing China as the pacing challenge and Russia as an acute threat,” added Adm. Christopher Grady, the vice chairman of the Joint Chiefs of Staff, at the same briefing. “Our strategy-driven budget does exactly that.”

Family affair. And even within his party, Biden is getting heat from Navy proponents in Congress who want to see a Navy of 355 ships or more. (The U.S. Navy currently has 292 ships in the fleet.)

They are pushing the White House to double down on building up the submarine industrial base to replace the Virginia-class submarines that are heading to Australia as part of the AUKUS alliance with the United Kingdom and to get Columbia-class submarines rolling off of the production lines. The budget cuts submarine production by one—which critics say has been partially paid for and built.

“At a time when the pace of all of Navy shipbuilding—manned and unmanned, including carriers, submarines, destroyers, and frigates—is recovering from the impact of the COVID pandemic and supply chain disruptions, the Navy’s plan to cut a submarine that is already been partially paid for and built, makes little or no sense,” Rep. Joe Courtney, the top Democrat on the House Armed Services Committee’s sea power panel, said in a statement. “If such a cut is actually enacted, it will remove one more attack submarine from a fleet that is already 17 submarines below the Navy’s long-stated requirement of 66.”

Expect sea power—and nuclear weapons—to be two of the main areas of budgetary haggling in the coming months.

Supplemental madness. Outside the budget, there is a lot riding on the Biden administration’s $106 billion national security supplemental, which includes U.S. military aid for Ukraine, Taiwan, and Israel as well as significant investments in the American defense industrial base, including to establish new factories for producing 155 mm artillery ammunition and to build more air defense interceptors that Kyiv has been burning through to fend off Russian air attacks.

The U.S. Army has indicated that without the supplemental, it will fall about 25 percent short of its target of producing 100,000 rounds of 155 mm artillery ammunition per month by the end of 2025.

Multiple people familiar with the talks who spoke to SitRep said there is increasing confidence that House Speaker Mike Johnson will take up the military aid package—which has been stalled since October—by the end of the month or early April at the latest. But that would likely be contingent on backroom wrangling to ensure that Johnson can keep the speaker’s gavel after a vote. (His predecessor, Kevin McCarthy, was forced out after hard-right House Republicans turned on him over a deal to fund the government in October.)

Emergency money. It’s not unusual for the White House to ask for a bunch of money for the Pentagon in a supplemental, experts said. Back in the halcyon days of sequestration during the 2010s, the war in Afghanistan was almost entirely funded out of an emergency pot of money dubbed “Overseas Contingency Operations,” or OCO.

“If you look at the whole history of the sequester years the overseas contingency fund was just another name for supplementals and [Department of Defense] admitted over time that most of that funding should really have been in the base but under the ground rules of the sequester it had to be designated as ‘emergency’ and carried in OCO,” Arnold Punaro, a retired two-star Marine general and former staff director of the Senate Armed Services Committee who now works as a defense industry consultant, told SitRep in an email.

But there are increasing questions about whether it’s a smart way of doing business at a time when the United States is preparing for potential conflicts with larger militaries like Russia and China, not smaller counterinsurgency fights with terror groups.

“Now you’re beginning to see hardcore things like the submarine industrial base, and triad extension on the ground side, and you’re seeing basic things like artillery shells, it’s all being put into the supplemental,” Jeb Nadaner, a former U.S. deputy assistant secretary of defense for industrial policy, told SitRep in a phone interview. “Why everyone seems comfortable with this arrangement, having two budgets for the year, I don’t know.”

Let’s Get Personnel

Biden’s nominee to be the next U.S. ambassador to Haiti, career diplomat Dennis Hankins , was confirmed by the Senate on Thursday. He will have his work cut out for him.

Judd Devermont , formerly Biden’s top National Security Council official for African affairs, has joined the advisory firm Kupanda Capital.

Diana Shaw is leaving her post as the acting State Department inspector general next month, a U.S. official confirmed to SitRep. (Kudos to Politico for first reporting this.) Shaw took the helm as the department’s top internal watchdog back in 2020, during a, shall we say, hectic time for Foggy Bottom.

On the Button 

What should be high on your radar, if it isn’t already.

Russian nukes. Russia has moved tactical nuclear weapons into neighboring Belarus, putting them several hundred miles closer to NATO territory, Western officials confirmed to Jack and Robbie. The move is likely to put more pressure on NATO’s eastern flank, as it comes with Russian President Vladimir Putin continuing to saber-rattle about possible nuclear-weapons use in Ukraine or in a larger conflict with the West. And the Baltic countries are warning that the risk of Western inaction is high. “We would like to see a harder response on that,” said Arvydas Anusauskas, Lithuania’s defense minister. “If [the] Russians move nuclear weapons closer to us, we need to move as well.”

The TikTok tick-tock. The U.S. House of Representatives on Wednesday overwhelmingly approved a bill that could result in a ban on the Chinese-owned short-form video app TikTok, our colleague Rishi Iyengar reports . The bill would put a countdown on TikTok’s Chinese ownership, giving the popular app’s holding company, the Beijing-based ByteDance, 180 days to divest ownership to a company that’s not from a country hostile to the United States. The bill awaits a Senate vote, but it already has fans in high places. Biden has already said that he will sign the bill if it gets to his desk.

Backchannel. The Biden administration held indirect negotiations with Iran through Omani interlocutors in January, the Financial Times reports , during which the U.S. urged Tehran to get Yemen’s Houthi rebel group, which Iran supports, to pull back attacks on shipping lanes in the Red Sea and even brought up Iran’s nuclear program. White House Middle East czar Brett McGurk and State Department deputy special envoy for Iran Abram Paley shared the messages with Omani officials, who passed them along to Iranian representatives, according to the reports. It was the first engagement between the two sides since a prisoner swap in September, but there has been no follow-up meeting, and Houthi attacks in the Red Sea have continued.

Irish woes. The White House is gearing up for a St. Patrick’s Day celebration this weekend, but as the Washington Post reports, it could be a tense affair as Biden hosts Irish leaders who have been outspoken in their condemnation of the U.S. stance on the Israel-Hamas war.

Meanwhile, out in Texas, all Irish bands slated to play at the massive annual SXSW festival canceled their performances over the festival’s links to the U.S. military and U.S. defense industry, citing U.S. military support for Israel in its war with Hamas. In total, over 80 musicians and panelists from the U.S. and elsewhere have joined the boycott.

Military personnel raise the Swedish flag during Sweden’s NATO accession ceremony, marking Sweden joining the alliance as its newest member, at NATO headquarters in Brussels, Belgium, on March 11. Omar Havana/Getty Images

“Don’t talk about strategic autonomy, because that just sounds Gaullist and just splits Europe into old Europe and new Europe. Talk about strategic responsibility. This thing has to be developed in harmony, in strategic harmony, with the United States.”

—Polish Foreign Minister Radoslaw Sikorski, weighing in on French President Emmanuel Macron’s talk of strategic autonomy, during a breakfast hosted by the Christian Science Monitor in Washington this week.  

Put on Your Radar

Thursday, March 14: German Chancellor Olaf Scholz and Lithuanian Prime Minister Ingrida Simonyte are set to continue meetings in Berlin. French President Emmanuel Macron hosts European Council President Charles Michel in Paris. EU foreign-policy chief Josep Borrell continues his visit to Washington, D.C., for meetings with U.S. officials.

The Senate Foreign Relations Committee hears testimony from the Biden administration’s top Indo-Pacific officials at the State Department, Pentagon, and U.S. Agency for International Development on their Pacific Islands strategy.

Friday, March 15: Scholz and Michel meet in Berlin. Biden hosts Irish Taoiseach Leo Varadkar in the Oval Office ahead of the White House’s aforementioned St. Patrick’s Day celebration on Sunday.

Sunday, March 17: Russia’s presidential election concludes. (“I wonder who will win,” the ever-quotable Sikorski quipped earlier this week.)

Monday, March 18: South Korea hosts the three-day Summit for Democracy in Seoul. U.S. Secretary of State Antony Blinken is expected to attend in person.

Tuesday, March 19: U.S. Secretary of Defense Lloyd Austin leads the Ukraine Defense Contact Group meeting at Ramstein Air Base in Germany.

Quote of the Week

“Pure luck, I hit the goddamn target. No, I really did. Bales of hay that were, like, 20 bales of hay with a big target in the middle of the bale of hay. And so I didn’t mean anything by it. I turned to the prime minister and handed it to him and the poor son-of-a-bitch couldn’t pull it back. I was like, oh, God.”

—U.S. President Joe Biden answers a question in a federal case about whether he brought classified information as vice president to his home in Delaware with an anecdote about outshooting then-Mongolian Prime Minister Sukhbaatar Batbold in an archery demonstration during Biden’s 2011 trip to the country as vice president.

This Week’s Most Read

• The West Is Still Oblivious to Russia’s Information War by Ian Garner
• The History Crisis Is a National Security Problem by Bret Devereaux
• State Department Beefs Up U.S. Diplomatic Presence in Kyiv by Jack Detsch and Robbie Gramer

Jack Detsch is a Pentagon and national security reporter at Foreign Policy . Twitter:  @JackDetsch

Robbie Gramer is a diplomacy and national security reporter at Foreign Policy . Twitter:  @RobbieGramer

Amy Mackinnon is a national security and intelligence reporter at Foreign Policy . Twitter:  @ak_mack

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Schumacher’s plan to offload Unilever’s ice-creams has a very familiar flavour

Shareholders may welcome the change in direction, but the chief executive’s predecessors used similar tactics

H ein Schumacher, Unilever’s new-ish chief executive, has already dialled down the worthy corporate sermons on social purpose. Now he’s ditching the ice-creams , including the famous names of Wall’s, Magnum and Ben & Jerry’s, and shedding 7,500 jobs elsewhere. Is this the hard-headed change of direction that shareholders, muttering about a sleepy share price and complacency in the boardroom for at least a decade, have been demanding? Well, possibly. But the script also has a familiar feel.

Remember that Schumacher’s two predecessors also tried slimming the corporate beast by offloading parts that were deemed low-growth or strategically challenged. Paul Polman, fresh from his close encounter with Kraft Heinz’s would-be takeover merchants in 2017 , offloaded the Flora and Stork spreads business . In its way, that was a more radical move because spreads were a core part of the original Dutch end of Unilever. Alan Jope sold the PG Tips tea business , which also had a lot of history behind it.

Ice-cream is a bigger part of Unilever – providing annual turnover of €7.9bn (£6.7bn), or 13% of revenues – and one can understand the rationale for exiting. A seasonal product that ties up capital in thousands of freezer cabinets can be viewed as a misfit among the shampoos, soaps and sauces. The operation is also far more European than the beauty, personal, home and food divisions, most of which have a heavier tilt towards emerging markets.

But a demerger alone creates no value because shareholders are simply handed what they already own, albeit in tradeable form, and must shoulder a bill for separation costs. The point is that neither of the last two disposals noticeably made the rest of Unilever run faster. One assumes the real hope is that a private equity firm makes a clean offer for the ice-creams, as happened with both spreads and tea – but that is not what has been announced so far. (Nor, incidentally, will separating ice-cream do anything for Unilever’s Russian headache: those assets can’t be included in a separation, so the disgrace, as this column sees it , of Unilever paying corporate taxes to a Russian state waging war in Ukraine will continue.)

The test of Schumacher’s promise that the group is capable of better financial returns will really be his “growth action plan”, meaning the 10-point strategy to give the place a kick, starting with fewer employees, especially in office-based roles. A target of €800m of cost savings over the next three years sounds suitably large, even for a company of Unilever’s size. But, again, outsiders have heard such declarations by former managements, usually in the same leaden language of “technology-led interventions”, “process standardisation” and “operational centres of excellence”. The leaner version of Unilever never quite seems to emerge.

Schumacher may be the boss who finally makes it happen, of course. He has Nelson Peltz, feared activist, breathing fire from the boardroom by way of encouragement. Even Terry Smith of Fundsmith, a top Unilever critic in recent times, sounds more upbeat about his investment. And one likes the fact that Schumacher has resisted (so far, at least) calls from some quarters for a sale of the entire food division, Knorr and all. Better to improve the assets you think can be improved. It’s also to his credit that he hasn’t set rigid targets for operating margins; predecessors tried that game and failed.

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But turning around Unilever still looks a long business. Demerging ice-creams probably helps at the margin, but the day job is about using the cost savings to make the sales line move faster. There are a lot of good intentions, but Schumacher hasn’t licked it yet.

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StarTribune

A new plan for midwest power lines could cost $23 billion. is it enough.

The cost of a gargantuan new plan to upgrade the regional electric grid with more than a dozen transmission lines across the Upper Midwest could top $20 billion. And that still might not be enough.

State utility regulators and several major power companies are calling for even more transmission capacity to help the region grapple with major challenges like rising demand for power and the shift away from fossil fuels , even as some welcome the sweeping proposal as a start.

Joe Sullivan, vice chairman of the Minnesota Public Utilities Commission, said "it's pretty clear that it doesn't get us where we need to go."

"They're taking a bite out of these issues," he said.

The draft proposal the Midcontinent Independent System Operator (MISO) released in early March is light on specifics but includes at least three power lines in Minnesota, including part of what MISO termed a "superhighway" of high-capacity infrastructure across much of southern Minnesota and extending into Wisconsin.

MISO's executive director of planning transmission, Laura Rauch,also promised a second wave of Midwest projects to complement its latest proposal. But as it stands, this transmission package would be historic in scope and price tag, with undetermined costs eventually passed to millions of utility customers.

"It would be, to my knowledge, the largest portfolio of high-voltage transmission lines in the country to ever have been proposed and to ever be built," said Mike Schowalter, senior manager focused on the wholesale electric grid transition for the St. Paul-based nonprofit Fresh Energy.

A call for more

This latest proposal is the second in a series of at least four transmission packages meant to strengthen the system across MISO's footprint. The Indiana-based nonprofit manages the electric grid and the open energy market in 15 states from Minnesota to Louisiana and north into the Canadian province of Manitoba.

In 2022, MISO approved the first set of projects — called Tranche 1 — aimed at the Upper Midwest. That included three new power lines in Minnesota worth more than $2 billion as part of a $10.3 billion package of 18 lines across the Midwest.

Those lines are still moving through the regulatory process in Minnesota.

MISO estimated Tranche 2 to cost $17 billion to $23 billion, and it appears to include either three or five lines in Minnesota and more than a dozen in total across Minnesota, North Dakota, Wisconsin, Iowa, Missouri, Illinois, Michigan and Indiana.

The potential cost of the Minnesota projects and the effect on bills is still unclear. Electricity customers ultimately pay for power lines, though costs for the MISO plans in the Upper Midwest are spread across the region based on electric use.

In a public meeting Friday, MISO invited feedback and said its plans could change. Local electric utilities said the current version of Tranche 2 is sparse in Minnesota and North Dakota, leaving the states with unmet needs.

They offered mostly general critiques.

Drew Siebenaler, Xcel's manager of regional transmission planning and analytics, told MISO officials the power lines don't do enough to account for a projected rise in energy demand.

That spike is happening across the country, and Xcel is predicting a one-third increase in its electric load by 2040 . That represents a sharp split from a long period of ultraslow growth, and to supply all that extra electricity, Xcel could need to build significantly more power generation.

The MISO proposal would create a new transmission highway in the Upper Midwest of 765 kilovolt power lines, which Sullivan said can carry a "massive amount of energy" and are substantially bigger than the 345 kV lines that serve as the backbone of the current system.

The draft map shows a long 765 kV corridor in southern Minnesota, along with one 345 kV line near Rochester and another going from roughly Alexandria to Fargo.

But Siebenaler said there needs to be large-capacity transmission projects cutting across more than the southern part of the state. And he urged MISO to not rule out substantial additions to the plan.

Duluth-based Minnesota Power and Fergus Falls-based Otter Tail Power also voiced broad concerns.

Minnesota Power spokeswoman Amy Rutledge said in a statement the utility will keep pushing MISO to ensure "transmission projects necessary for regional reliability are fully considered for Tranche 2 to advance Minnesota's carbon-free goals in a timely manner." There were no MISO lines proposed in the company's northeastern Minnesota service territory.

Ongoing plans

Despite the size of the transmission plan, MISO officials themselves said Friday the proposal wouldn't meet all of the region's needs. That's why the nonprofit is considering a second part to Tranche 2.

The first two transmission packages have focused on MISO's northern region. Tranche 3 will aim at power needs in southern states, and Tranche 4 should better connect north and south together.

Though each transmission project must gain local approval, MISO plans the lines with a goal of creating a more reliable grid addressing challenges like the spike in energy needs from electric vehicles, data centers and new manufacturing while keeping other energy costs lower.

MISO seeks projects with benefits to the entire region that it says are worth more than the cost. In general, state regulators and local utilities back the idea. Sullivan, for instance, said more transmission can cut the need for new power generation, which he said is more expensive to build.

It can also carry renewable power, like that generated by remote wind farms, to more areas. MISO said power is going unused in its western region, including Minnesota, because of insufficient transmission capacity.

Beth Soholt, executive director of the Clean Grid Alliance, a trade group representing renewable power and battery developers, said bigger, more integrated systems protect against blackouts in severe weather.

"The flexibility of being able to deliver power when and where it's needed," she said.

Walker Orenstein covers energy, natural resources and sustainability for the Star Tribune. Before that, he was a reporter at MinnPost and at news outlets in Washington state.

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