2016

PERFORMANCE

HIGHLIGHTS

2018

BUDGET

OVERVIEW

POSTURE

STATEMENT

UNITED STATES COAST GUARD
Coast Guard Cutter PAMLICO’s crew removes an 

aids to navigation tower from a wooden structure 

on the Mississippi River near New Orleans. The 

FY 2018 Budget initiates efforts to recapitalize our 

Service’s Inland Waterways and Western River 

cutter fleet, which includes vessels that have 

been in service for over 70 years.
I am pleased to provide the Coast Guard’s annual Posture Statement, 

which provides strategic context for the Service, outlines my Fiscal 

Year (FY) 2018 Budget focus, and offers performance highlights 

from 2016. 

The world’s premier, multi-mission, maritime service, the Coast 

Guard confronts an array of evolving threats to offer a unique 

and enduring value to the Nation. A strategy-driven organization, 

where intelligence drives operations to make best use of its 

resources, the Coast Guard is well positioned to help secure the 

maritime border, disrupt transnational criminal organizations, 

and safeguard the waterways that contribute to America’s 

economic prosperity. 

In FY 2018, we will continue to Invest in the 21st Century Coast 

Guard, Sustain Mission Excellence, and Maximize Service 

to the Nation. I am exceptionally pleased this budget builds on existing progress to replace our 

aging cutter fleet with modernized resources such as the Offshore Patrol Cutter and Fast Response 

Cutter. The FY 2018 Budget also expedites the critical acquisition of our icebreaking capabilities, 

a resource required to preserve U.S. security and sovereignty in the Polar Regions. These 

investments, coupled with increased funding for our workforce, set the conditions for sustained 

mission excellence. 

I could not be prouder of the operational successes of our active duty, civil service, reserve, and auxiliary 

personnel. The 2016 Performance Highlights provided in this year’s Posture Statement demonstrate 

the Coast Guard’s return on investment and our enduring value to the United States. Our presence and 

capabilities have never been more critical to our national priorities. Coast Guard readiness relies on the 

ability to simultaneously execute our full suite of missions and sustain support to Combatant Commanders, 

while also being ready to respond to contingencies.

History has proven that a responsive, capable, and agile Coast Guard is an indispensable instrument 

of national security. With continued support of the Administration and Congress, the Coast Guard will 

continue to live up to our motto – Semper Paratus – Always Ready.

THE COMMANDANT OF THE UNITED STATES COAST GUARD

WASHINGTON, D.C.

PAUL F. ZUKUNFT

Admiral, U.S. Coast Guard
America’s Coast Guard

The Coast Guard is the only branch of the U.S. Armed Forces within the Department of Homeland Security. A law enforcement 

agency, member of the U.S. Intelligence Community, and first responder during natural disasters – the Coast Guard leverages 

an expansive array of interagency, military, international, and industrial relationships for maximum strategic effect. 

Strategic Landscape 

Challenging global economic conditions, weak foreign governance, rapid technological advancement, and stress on 

international institutions are converging to create a challenging operating environment for the military. These global trends 

undermine already-weak nation states and fuel instability, providing ideal conditions for Transnational Organized Crime 

networks, Violent Extremists, and other asymmetric threats.

This dynamic global landscape increases potential threats to our Nation. The domestic demand for illicit narcotics continues 

to foster a criminal marketplace that directly undermines border security. Adversaries are adapting their nefarious methods 

to leverage technological advances. These advances are exposing new cyber vulnerabilities that could disrupt the maritime 

transportation system. Additionally, the physical world is changing – waters in the Arctic are opening to permit increased 

access to resources in this remote region. In preparing for the future, the Coast Guard will leverage its agility and broad 

operational capabilities to protect our Nation and ensure its prosperity. 

Strategic Focus

The Coast Guard is a strategy-driven organization, where intelligence drives operations and risk-based decisions make best 

use of resources to maximize our enduring value to the Nation. Taxpayers demand solutions that optimize efficiency and 

effectiveness, maximizing the fiscal and budgetary return on public investments.

The Coast Guard will continue to implement a suite of regional and functional strategies that position our Service to best 

respond to maritime risks that may evolve over the next ten years. The first two of these strategies – the Arctic Strategy 

and the Western Hemisphere Strategy – address our highest priorities in their respective regions. The Coast Guard’s Cyber 

Strategy and Human Capital Strategy are complementary, as they underpin the success of all Coast Guard activities. These 

strategies are informed by applicable Department of Homeland Security and national strategies and are coordinated to 

augment Department of Defense priorities.

The Western Hemisphere represents a strategic focus area for missions that support U.S. national security and 

economic prosperity.

I. Combating Transnational Organized Crime (TOC) Networks. TOC networks are funded by profits from drug and 

human trafficking operations. The TOC networks’ indiscriminate use of violence weakens regional governments, 

impedes legitimate economic activity and development, and constitutes a threat to regional stability and security. 

The Coast Guard’s long-term counter-TOC effort integrates a host of governmental organizations, both at home and in 

the countries of origin. With the Department of Homeland Security, the Coast Guard fosters diplomatic partnerships, 

leverages its dual status as a military service and law enforcement agency, and capitalizes on U.S. Intelligence 

Community membership to support this fight.

POSTURE STATEMENT
II. Securing the Southern Border. Maritime border security not only requires the defense of our ports, waterways, 

and infrastructure at home, it also necessitates an offshore presence to identify and disrupt illicit networks seeking 

to exploit transit zones on the high seas, which leads to increased drug traffic across the southern U.S. border. 

Leading the national effort to secure our maritime borders, the Coast Guard employs a strategic approach to 

improve awareness, prioritize threats, and advance an adaptable interdiction posture. Early detection requires close 

coordination between and among maritime partners, intelligence collectors, and state-of-the-market technologies, 

such as Unmanned Aircraft Systems (UAS). By fully leveraging the available suite of tools, the Coast Guard is able to 

optimize our presence and confront maritime threats before they reach our shores.

III. Safeguarding Maritime Commerce. The United States has one of the largest systems of ports, waterways, and critical 

maritime infrastructure in the world. This maritime highway contributes $4.6 trillion to the Nation’s economic activity 

each year and is a conduit for nearly 90 percent of U.S. trade by volume. The safe, efficient, and secure movement of 

commerce upon the Nation’s waterways is critical to maintaining America’s competitive edge in a global economy. 

As Captain of the Port, the Coast Guard’s role in overseeing the safety and security of port operations is a vital 

component of the maritime transportation system.

IV. Enhancing Cybersecurity. Cyber threats are endemic to the government, public, and private sector alike. In addition 

to protecting its own networks and systems, the Coast Guard is actively assessing the cyber vulnerabilities that 

might hamper our maritime transportation system. By leveraging its authorities and promoting private-public 

partnerships, the Coast Guard works with industry to develop and implement measures that will secure critical 

maritime infrastructure from those who seek to do harm.

V. Adapting in the Polar Regions. Reduced polar ice coverage has increased human activity in the Arctic and interest 

in its natural resources. At-sea presence is intrinsic to preserving U.S. interests and asserting U.S. sovereignty in the 

Arctic Region. To meet security, safety, and governance needs, the Coast Guard is positioned to provide improved 

awareness, and promote broader partnerships as a strategic advocate in this vital region. Additionally, the Coast 

Guard continues to support scientific endeavors in both Polar Regions.

Investing in the 21st Century Coast Guard

Given the Coast Guard’s geostrategic landscape and organizational priorities, our Fiscal Year 2018 Budget priorities maximize 

our value to the Nation, sustain mission success, and fund necessary investments in the 21st Century Coast Guard. From 

infrastructure and capitalized assets, to our most important resource – our people – the Coast Guard remains always ready 

to confront the challenges, both domestic and international, to our national security and American way of life.
The Coast Guard’s FY 2018 Budget sustains Coast Guard operations and continues recapitalization efforts for cutters, boats, 

aircraft, systems, and infrastructure. The budget also efficiently allocates resources to optimize Coast Guard mission 

performance. The Coast Guard must continue meeting today’s operational requirements while investing in future capability 

to best serve the Nation.

The Coast Guard’s FY 2018 Budget priorities are:

FY 2018 BUDGET PRIORITIES

Invest

in the 21st Century 

Coast Guard

Sustain

Mission

Excellence

Maximize

Value to

Nation
 Invest in the 21st Century Coast Guard Coast Guard mission demands continue to grow and evolve. The complexities and challenges facing the Nation 

require well-trained Coast Guard men and women with capable platforms providing the persistent presence 

necessary to conduct operations. Given the age and condition of the Coast Guard’s legacy assets, future mission 

success relies on continued recapitalization of Coast Guard boats, cutters, aircraft, systems, and infrastructure.

The FY 2018 Budget provides funding for the acquisition of the first Offshore Patrol Cutter (OPC). OPCs will be 

the cornerstone of our Service’s future surface fleet and comprise 70 percent of the Coast Guard’s offshore 

presence. Furthermore, the budget provides funds to continue acquisition of a new polar icebreaker to meet 

growing demands in the Polar Regions. It also funds four Fast Response Cutters and sustains the 140-foot 

Icebreaking Tug and 225-foot Seagoing Buoy Tender fleets. The budget also initiates efforts to recapitalize our 

Service’s aging Inland Waterways and Western River Tender fleet by providing funds to conduct an analysis 

of alternatives. In addition to surface recapitalization efforts, the FY 2018 Budget continues sustainment and 

conversion work on in-service fixed and rotary wing aircraft, including missionization of the C-27J aircraft 

received from the Air Force, and investment in Command, Control, Communications, Computers, Intelligence, 

Surveillance, and Reconnaissance (C4ISR) systems.

 Sustain Mission Excellence

The FY 2018 Budget ensures the Coast Guard can conduct today’s highest priority operations in support of national 

objectives. Most importantly, it sustains the Coast Guard’s workforce and supports proficiency, maximizing 

operational safety and effectiveness. In 2018, the Coast Guard will decommission one High-Endurance Cutter 

(WHEC) and three Patrol Boats (WPBs) while accepting delivery of more capable, modernized assets, including 

one National Security Cutter and five Fast Response Cutters. In 2018, the Coast Guard will also implement the 

new Blended Retirement System for eligible Service members, changing the current military retirement system 

to one that includes both defined contributions and defined benefits. In all, the FY 2018 Budget increases the 

workforce by 578 positions to support Coast Guard activities across six mission programs.

 Maximize Value to Nation

In best serving the Nation, the Coast Guard must continue to meet evolving mission requirements stemming 

from national priorities and remain a trusted steward of public resources. The 2018 Budget sustains frontline 

operations by efficiently allocating resources across all mission programs. Coast Guard Operational Commanders 

will maintain search and rescue coverage, protect critical infrastructure, counter illicit threats from entering the 

United States, facilitate safe navigation within the vital Maritime Transportation System (MTS), safeguard the 

maritime environment, support foreign policy objectives, and conduct defense operations.

THE FY18 BUDGET OVERVIEW
Acquisition, Construction, and Improvements (AC&I)

Surface Assets $877.1 million (0 FTE)

The budget provides $877.1 million for the following surface asset recapitalization and sustainment initiatives:

➢ National Security Cutter (NSC) – Provides funding for 

Post Delivery Activities for the fifth through eighth NSCs, 

and test and evaluation activities. The acquisition of the 

NSC is vital to performing DHS missions in the far offshore regions, including the harsh operating environments 

of the Pacific Ocean, Bering Sea, and Arctic. The NSC 

also provides a robust command and control platform for 

homeland security and contingency operations;

➢ Offshore Patrol Cutter (OPC) – Provides funding to 

begin construction of the first OPC, which is scheduled 

for delivery in 2021. The OPC will replace the Medium 

Endurance Cutter classes that conduct missions on the 

high seas and coastal approaches;

➢ Fast Response Cutter (FRC) – Funds procurement of 

four FRCs, totaling 48 of 58 on contract. These assets 

replace the less capable 110-foot patrol boats, enhancing 

the Coast Guard’s coastal capability to conduct Search 

and Rescue operations, enforce border security, interdict 

drugs, uphold immigration laws, prevent terrorism, and 

enhance resiliency to disasters;

➢ Polar Icebreaker – Continues efforts towards awarding 

a contract for detail design and construction in 2019, and 

to deliver a new heavy polar icebreaker in 2023. New 

heavy polar icebreakers will provide the Nation with 

assured surface access to the Polar Regions for decades 

to come;

➢ Cutter Boats – Continues funding for production of multimission cutter boats that will be fielded on the Coast 

Guard’s major cutter fleet including the NSC;

➢ In-Service Vessel Sustainment – Continues funding for 

sustainment projects on 140-foot Ice Breaking Tugs, 225-

foot Seagoing Buoy Tenders, and 47-foot Motor Lifeboats; 

and

➢ Survey and Design – Continues funding for multi-year 

engineering and design work for multiple cutter classes 

in support of future sustainment and acquisition projects. 

Funds are included to conduct an engineering survey and 

evaluate options to extend the service life of 270-foot 

Medium Endurance Cutters.
Air Assets $82.6 million (0 FTE)

The budget provides $82.6 million for the following air asset recapitalization or enhancement initiatives:

➢ HC-27 – Funds continued activities of the C-27J Asset 

Project Office (APO). The APO organizes logistics, training 

development, maintenance support, and ensures these 

newly acquired aircraft are ready for induction into the 

operational fleet. Continues funding for spare parts and 

logistics, training, and mission system development;

➢ HH-65 – Continues modernization and sustainment of the 

Coast Guard’s fleet of H-65 Short Range Recovery (SRR) 

helicopters, converting them to multi-mission MH-65E 

variants. The modernization effort includes reliability and 

sustainability improvements, where obsolete components 

are replaced with modernized sub-systems, including an 

integrated cockpit and sensor suite. Initial funding is also 

included to extend aircraft service life for 10,000 hours;

➢ HH-60 – Includes initial funding to extend aircraft service 

life for another 10,000 hours to better align with DOD’s 

H-60 replacement timeline;

➢ C-130J – Funds upgrade of the mission system processor 

and equipment required to maintain the operational 

availability of the HC-130J Long Range Surveillance 

aircraft; and

➢ sUAS – Continues program funding to deploy small 

Unmanned Aircraft Systems (sUAS) onboard the National 

Security Cutter (NSC).

Shore Units and Aids to Navigation (ATON) $75.0 million (0 FTE)

The budget provides $75.0 million to recapitalize shore infrastructure that supports Coast Guard assets and personnel, as well as 

construction and improvements to ensure public safety on waterways:

➢ Specific Projects – Funds permanent boat maintenance, 

waterfront, and support facilities for Station Vallejo, CA; 

recapitalizes runway lighting system at Elizabeth City, NC; 

and funds minor shore infrastructure construction projects;

➢ ATON Infrastructure – Maintains transportation 

safety on Federal waterways through construction and 

improvements to short-range aids and infrastructure; and

➢ Major Acquisition Systems Infrastructure – Funds 

modification and construction of facilities to support newly 

delivered assets. Includes upgrades and construction for 

Fast Response Cutter (FRC) homeports.

Other (Asset Recapitalization) $50.8 million (0 FTE)

The budget provides $50.8 million for other initiatives funded under the Acquisition, Construction, and Improvements account, 

including the following equipment and services: 

➢ Command, Control, Communications, Computers, 

Intelligence, Surveillance, and Reconnaissance 

(C4ISR) – Provides design, development, upgrades, and 

assistance on C4ISR hardware and software of new and 

in-service assets; 

➢ Program Oversight and Management – Funds activities 

associated with the transition of the Coast Guard’s assets 

from acquisition to operations, including delivery, provision 

of logistics, training, and other services necessary to 

ensure seamless integration into the operational fleet;

➢ CG-Logistics Information Management System – 

Continues development and deployment of this system to 

Coast Guard operational assets; and

➢ Other Equipment and Systems – Funds end-use items 

costing more than $250,000 used to support Coast Guard 

missions, including equipment to support operation and 

maintenance of vessels, aircraft, and infrastructure.

Acquisition Personnel and Management $118.2 million (835 FTE)

The budget provides $118.2 million for pay and benefits of the Coast Guard’s acquisition workforce. 
Operating Expenses (OE)

Operating and Maintenance of New Assets

+$98.6 million (+233 FTE)

Increases funding for operations and maintenance of shore facilities and provides sustainment funding for new cutters, boats, aircraft, 

and associated C4ISR subsystems delivered through acquisition efforts:

➢ Shore Facilities – Funds operation and maintenance of 

shore facility projects scheduled for completion prior to 

FY 2018;

➢ FRC – Funds operation and maintenance of FRCs #26-30, 

as well as personnel for FRC crews #29-33 and shore-side 

support for FRCs #27-30;

➢ NSC – Funds operations and maintenance of NSC #7 and 

NSC small Unmanned Aircraft Systems (sUAS), as well as 

personnel for NSC crew #8, shore-side support for a third 

NSC homeport, and SCIF crews for NSCs #7-8;

➢ C-27J Aircraft – Funds fixed-wing aircraft support personnel 

at the Aviation Logistics Center;

➢ HC-130J Aircraft – Funds operations, maintenance, and 

personnel for HC-130J airframes #8-9;

➢ MH-60T Aircraft – Funds operations, maintenance, and 

personnel for a MH-60T airframe;

➢ Logistics Information Management System – Funds 

operations and maintenance of the Coast Guard Logistics 

Information Management System (CG-LIMS); and

➢ Shipboard Control and Navigation Training System 

(SCANTS) – Funds operations and maintenance of the 

SCANTS simulator.
Pay & Allowances

+$109.8 million (0 FTE)

As a branch of the Armed Forces of the United States, the Coast 

Guard is subject to the provisions of the National Defense 

Authorization Act, which include pay and personnel benefits for 

the military workforce. The FY 2018 Budget maintains parity with 

DOD for military pay, allowances, and health care, and for civilian 

pay raise and retirement contributions, including providing a 2.1 

percent military and 1.9 percent civilian pay raise.

Asset Decommissionings

As the Coast Guard recapitalizes its cutter and aircraft fleets and 

brings new assets into service, the older assets that are being 

replaced will be decommissioned:

➢ Patrol Boat (WPB) -$1.7 million (-23 FTE)

Decommissions three 110-foot Patrol Boats (WPBs). These 

assets are being replaced with Fast Response Cutters (FRCs);

➢ High Endurance Cutter (WHEC) -$8.4 million (-92 FTE)

Decommissions one 378-foot High Endurance Cutter (WHEC). 

These assets are being replaced with National Security 

Cutters (NSCs); and

➢ HC-130H Aircraft -$4.0 million (-14 FTE)

Decommissions one HC-130H aircraft. These assets are 

being replaced with HC-130J aircraft.

Operational Adjustments

In FY 2018, the Coast Guard will make sound, risk based 

operational decisions while investing in critical recapitalization 

and new workforce initiatives: 

➢ Mission Essential Systems and Cyber Security 

+$27.3 million (+2 FTE)

Funds sustainment of critical network infrastructure and DOD 

working capital fund increases necessary to comply with 

DOD information network and cybersecurity requirements;

➢ Federal Aviation Administration (FAA) Compliance

+$16.9 million (0 FTE)

Funds fixed-wing aircraft equipment upgrades and associated 

equipment replacement necessary to comply with FAA 2020 

airspace requirements;

➢ Workforce Support Improvements 

+$9.1 million (+34 FTE)

Provides funding and personnel to manage the new Blended 

Retirement System, increase the frequency of Personnel 

Security (PERSEC) suitability background investigations, and 

enhance capabilities to handle sexual assault allegations;

➢ GSA and Other Governmental Rent 

+$4.8 million (0 FTE)

Funds GSA and other governmental rent increases; and

➢ Management and Support Efficiencies 

-$13.9 million (-13 FTE)

Reflects savings generated from an enterprise-wide efficiency 

review that can be taken with no direct operational impacts 

and a minimal loss of current service delivery.
Appropriation ($000) FY 2016

Revised Enacted1

FY 2017

Annualized CR1

FY 2018

President’s Budget

Operating Expenses (OE) 6,827,776 6,879,692 7,213,464 

Acquisition, Construction, and Improvements (AC&I) 1,928,393 1,924,127 1,203,745 

Environmental Compliance and Restoration (EC&R) 13,221 13,196 13,397 

Reserve Training (RT) 110,099 109,890 114,875 

Research, Development, Test, and Evaluation (RDT&E) 18,019 17,986 18,641 

Medicare-Eligible Retiree Health Care Fund Contribution (MERHCFC) 168,847 175,506 195,784 

Sub-total (Discretionary Funding) $ 9,066,355 $ 9,120,397 $ 8,759,906 

Retired Pay 1,604,000 1,604,000 1,690,824 

Boat Safety 114,326 113,049 118,416 

Maritime Oil Spill Program 107,329 101,000 101,000 

Gift Fund 1,621 2,214 2,864 

Sub-total (Mandatory Funding) $ 1,827,276 $ 1,820,263 $ 1,913,104 

OSLTF Contribution [45,000] [44,914] [45,000] 

Overseas Contingency Operations 160,002 160,002 - 

Alteration of Bridges (rescission of unobligated balances) - - (12,400)

Sub-total (Transfers and Supplementals) S 160,002 $ 160,002 ($ 12,400)

TOTAL BUDGET AUTHORITY $ 11,053,633 $ 11,100,662 $ 10,660,610 

1 Reflects rescissions and reprogrammings/transfers, as applicable.

Table 1: Appropriation Summary

Table 2: Net Discretionary Budget Authority – Breakout by Statutory Mission

Coast Guard Mission ($000) FY 2016

Revised Enacted1

FY 2017

Annualized CR1

FY 2018

President’s Budget

FY 2017 +/-

FY2018

 Aids to Navigation 1,357,099 1,371,485 1,283,614 (87,871)

 Defense Readiness 464,750 432,672 599,748 167,076 

 Drug Interdiction 1,629,923 1,500,315 1,479,440 (20,875)

 Ice Operations 201,760 468,759 186,136 (282,623)

 Living Marine Resources 1,032,030 949,230 896,369 (52,861)

 Marine Environmental Protection 204,108 207,199 217,744 10,545 

 Marine Safety 580,676 568,061 549,718 (18,343)

 Migrant Interdiction 780,673 871,462 874,666 3,204 

 Other-Law Enforcement (Foreign Fish) 171,294 124,849 112,286 (12,563)

 Ports, Waterways and Coastal Security 1,735,338 1,717,266 1,756,284 39,018 

 Search and Rescue 908,704 909,099 803,901 (105,198)

Net Discretionary Excluding Supplementals and Transfers $ 9,066,355 $ 9,120,397 $ 8,759,906 ($ 360,491)

Mandatory Funding $ 1,827,276 $ 1,820,263 $ 1,913,104 $ 92,841 

OSLTF Contribution [45,000] [44,914] [45,000] [86] 

Overseas Contingency Operations 160,002 160,002 - (160,002)

Rescission of Unobligated Balances - - (12,400) (12,400)

TOTAL BUDGET AUTHORITY2 $ 11,053,633 $ 11,100,662 $ 10,660,610 ($ 440,052)

1 Reflects rescissions and reprogrammings/transfers, as applicable.

2 The Coast Guard budgets by appropriation rather than by individual missions. The Coast Guard projects resource allocations by mission through the use of an activity-based costing 

system. Actual allocations will vary depending on operational environment and mission need.
Appropriations ($000) FY 2018

President’s Budget

Vessels $ 877,100 

Survey and Design - Vessel and Boats 1,500 

In-Service Vessel Sustainment 60,500 

National Security Cutter (NSC) 54,000 

Offshore Patrol Cutter (OPC) 500,000 

Fast Response Cutter (FRC) 240,000 

Cutter Boats 1,000 

Inland Waterways and Western Rivers Cutter 1,100 

Polar Icebreaker 19,000 

Aircraft $ 82,600 

HC-27J Conversion/Sustainment 52,000 

HH-65 Conversion/Sustainment Projects 22,000 

MH-60T Sustainment 2,500 

Long Range Surveillance Aircraft (C-130H/J) 5,600 

Unmanned Aircraft System (UAS) 500 

Other $ 50,800 

Program Oversight and Management 15,000 

C4ISR 22,000 

CG-LIMS 9,800 

Other Equipment and Systems 4,000 

Shore and ATON $ 75,000 

Major Shore, ATON and S&D 10,000 

Major Acquisition Systems Infrastructure 60,000 

Minor Shore 5,000 

Personnel and Management $ 118, 245 

Direct Personnel Costs $ 118, 245

TOTAL $ 1,203,745 

Table 3: FY 2018 Acquisition, Construction, and Improvements (AC&I)
Table 4: Operating Expenses FY 2017 to FY 2018 Budget Change

(dollars in thousands)

Pos. FTE Amoun

FY 2016 Revised Enacted 1,2 48104  45263  $6,827

FY 2017 Annualized CR 48,14  46,53  $6,879,6

Transfers to and from 

WCF Transfer - - (1,472

Total Transer -  -  

Pricing Cha

Incr

Adjustment for Non-Recurring Rescisins -  -

Adjustment for 2017 Initiativs 25  286  

Annualization of 2017 Initiaties - 373  5

Mandatory Personnel Entitle

Annualization of 2017 Military and Civilian Pay Rase-  -  1

2018 Military Pay Raise- -  35,6

2018 Civilian Pay Raise - - 11,757

2018 Military Allowancs   -  45

2018 Civilian Allowances- -  1,2

Operational Adjus

Defense Information Systems Agency (DISA) Syste Fe Incr

GSA and Other Governmenta Rnt -  

Base Re-Allocations (non-a

Military and Civilian FTP and FTE Transfer [7]  [37] [4,

PPA Funding Adjustmen -  - [1,

Total Increass 25  659  2

Dec

Termination of One-Time Cost - -  (43,

Annualization of 2017 Initiative Redutions -  (168)

Total Decrases -  (168) 

Total Adjustments-to-Bse 29  491  

Program C

Incr

Operational Adjus

Personnel Security & Investigatins7  4  

Mission Essential Systems and Cyber Seurty 3  2

Modernized Retirement System Training & Management (206 NAA) 36

Special Victims' Counsel (201 NAA) 

CG Aircraft FAA Compliance & Obsolete Equipen Replac

Operating and Maintenance Funds for

Shore Facility Follow-O 12 10  5

Logistics Information Management System (CG-LMS Follo

Ship Control and Navigation Training System (SCANTS)Folow-

Fast Response Cutter (FRC) FollowOn 78  87 

National Security Cutter (NSC) Folow-O 283  1

C-27J Aircraft Support FolowOn 21 

HC-130J Aircraft Follo-On35  18

MH-60T Helicopter Follo-O 23  6

Total Increass 60  269  1

Dec

Operational Adjus

Direct Support Efficiencies (16) 

Management Efficiencies (5) (3) 

Training Efficiencis   -  (5

Asset Decommissionings and Reti

One High Endurance Cutter (WHEC) (184) (92)

Three 110-foot Patrol Boats (54) (23) (1,

One HC-130H Aircraft (28) (14) 

Total Decreases (287) (142) 

Total Program Chanes 34  127  

FY 2018 Current Services  48,677  $ 47,181 $ 7

FY 2018 Operating Expenses Requet $ 48,677  $ 47,181 

FY 2017 to FY 2018 Operating Expenses Toal Cange 573

1 Excludes funding provided to the Coast Guard for Overseas Contingency 

2 Reflects FY 2016 FTE
On an average day, the Coast Guard: 

Conducts 45 search and rescue cases; saves 14 lives; assists 66 people in distress; 

seizes 1,214 pounds of cocaine and 144 pounds of marijuana; 

conducts 40 waterborne patrols of critical maritime infrastructure; interdicts 17 undocumented migrants;

escorts 7 high-capacity passenger vessels; conducts 16 security boardings in and around U.S. ports;

screens 329 merchant vessels for potential security threats prior to arrival in U.S. ports;

conducts 13 fisheries conservation boardings; services 82 buoys and fixed aids to navigation;

investigates 32 pollution incidents; completes 25 safety examinations on foreign vessels;

conducts 110 marine inspections; investigates 18 marine casualties involving commercial vessels;

facilitates movement of $12.6B worth of goods and commodities through 

the Nation’s Maritime Transportation System.

Semper Paratus – Always Ready
A Coast Guard Air Station 

Cape Cod helicopter crew 

conducts hoisting operations 

with the Coast Guard Cutter 

SENECA. Aviation and cutter 

crews regularly train together 

to maintain readiness levels 

and proficiency in challenging 

operational tasks.
The Coast Guard effectively and efficiently performs activities that support the Department of Homeland Security in its mission 

priorities: Prevent Terrorism and Enhance Security, Secure and Manage Our Borders, Enforce and Administer Our Immigration 

Laws, Safeguard and Secure Cyberspace, and Ensure Resilience to Disasters.

Coast Guard activities cross six mission programs:

1. Maritime Law Enforcement; 

2. Maritime Response;

3. Maritime Prevention;

4. Maritime Transportation System Management;

5. Maritime Security Operations;

6. Defense Operations.

Every day Coast Guard men and women work with DHS, DOD, and other Federal, State, local, and international partners to 

provide the service the Nation has come to expect over our 226 year history. In 2016, operations across the six Coast Guard 

mission programs supported National goals and achieved phenomenal results.

2016 PERFORMANCE HIGHLIGHTS
Crew members from 

the Coast Guard Cutter 

DILIGENCE assist Cuban 

migrants down an 

accommodation ladder 

and onto the cutter’s 

small boat. The migrants 

were transferred from 

DILIGENCE to the 

Coast Guard Cutter 

CHARLES DAVID JR., for 

repatriation back to Cuba.
MARITIME LAW ENFORCEMENT

The Maritime Law Enforcement program protects America’s maritime borders, 

defends our Nation’s maritime sovereignty, facilitates legitimate use of the 

waterways, and suppresses violations of U.S. Federal law on, under, and over the 

seas. The Coast Guard is the only agency with both the authorities and capabilities 

to enforce national and international law on the high seas, outer continental shelf, 

and inward from the U.S. Exclusive Economic Zone (EEZ) to inland navigable 

waters, including the Great Lakes. 

New, state-of-the-market ships and enhanced intelligence capabilities complement 

the work of Coast Guard crews to stem the maritime drug flow. In 2016, the Coast 

Guard once again had record breaking results, interdicting 201 metric tons of 

cocaine from the maritime domain and detaining 585 suspected smugglers for 

prosecution. During a three-month deployment to the Eastern Pacific, Coast Guard 

Cutter BERTHOLF detained 22 suspected narco-traffickers and interdicted more 

than 12.2 metric tons of cocaine. This deployment was highlighted by the seizure 

of a self-propelled semi-submersible (SPSS) vessel carrying more than $200 million 

of illegal narcotics.

To protect America’s natural resources, endangered marine species, and marine 

sanctuaries, the Coast Guard conducted 4,600 fisheries boardings on U.S. vessels 

and cited 147 significant fishery violations. Close collaboration with partner 

agencies was a key part of this effort. The Coast Guard also conducted other 

law enforcement mission responsibilities related to foreign flagged fishing vessels. 

Under the auspices of bilateral enforcement agreements and Regional Fisheries 

Management Organizations, the Coast Guard boarded 103 foreign vessels on the 

high seas and in EEZs of partner nations to suppress Illegal, Unregulated, and 

Underreported (IUU) fishing. IUU fishing is global in reach, harmful to ecosystems, 

and a threat to global food security. The Coast Guard’s efforts are critical to 

stemming this illegal activity. The Coast Guard also detected 176 illegal incursions 

by foreign flagged fishing vessels into the U.S. EEZ, protecting our Nation’s 

sovereignty and natural resources. 

The Coast Guard secures the Southern Border and Approaches by conducting 

patrols and coordinating with other Federal agencies and foreign countries to 

interdict undocumented migrants at sea, denying them entry via maritime routes 

to the United States, its territories, and possessions. Thousands of people attempt 

to illegally enter the United States every year using maritime routes, many via 

smuggling operations. Interdicting migrants at sea reduces the safety risks involved 

in such transits. Migrants can be quickly returned to their countries of origin, 

avoiding the more costly processes required if they successfully enter the United 

States. During 2016, the Coast Guard interdicted 6,346 undocumented migrants 

attempting to illegally enter the United States by maritime routes and repatriated 

5,299 Cuban migrants, 570 Dominican migrants, and 365 Haitian migrants back to 

their country of origin.

$5.9

 billion

Wholesale value of illegal narcotics

removed by the Coast Guard in 2016.

OUR BUDGET AT WORK 

As the lead Federal agency for drug interdiction on the 

high seas, Coast Guard operations support national and 

international strategies to deter and disrupt illegal drug 

traffickers. These efforts are crucial to Federal efforts 

to dismantle Transnational Organized Crime (TOC)/ 

Drug Trafficking Organizations (DTOs), and prevent 

transnational threats from reaching U.S. shores. 
A Coast Guard Station San Juan crewmember 

monitors passengers using the marine escape 

system to awaiting life rafts as they abandon the 

CARIBBEAN FANTASY ferry vessel a mile north of 

San Juan, Puerto Rico. An engine room fire, which 

eventually spread to other compartments, forced 

all 511 passengers and crew to abandon ship.
MARITIME RESPONSE

The Maritime Response program mitigates the consequences of marine 

casualties and disastrous events. The Coast Guard minimizes loss of life and 

property by searching for and rescuing persons in distress in the maritime 

environment. Coast Guard preparedness efforts ensure incident response 

and recovery resources are fully ready and capable to minimize impacts of 

disasters to people, the environment, and the economy. 

As the federal expert in search and rescue and marine pollution response, the 

Coast Guard is an effective leader in the maritime domain. The Coast Guard’s 

presence in the Arctic and our work with the Coast Guard Arctic Forum are 

improving the Nation’s capability to respond to a maritime incident in the 

region. In September 2016, the Coast Guard and U.S. Northern Command 

conducted an exercise to simulate a mass rescue operation in the Arctic and 

to test response capabilities in this remote maritime domain. As receding 

sea ice invites increased human activity in commercial and private ventures, 

there will be increased demand for a Coast Guard presence in this vast and 

unforgiving frontier.

The Coast Guard’s robust multi-mission capabilities and ready-force posture 

enable protection of life, property, and the environment in response to 

disasters. This multi-mission capability ensured the Service was ready 

to respond to 16,343 Search and Rescue (SAR) cases in 2016, assisting 

24,089 people and saving 5,174 lives. In August 2016, the ocean going ferry 

CARIBBEAN FANTASY suffered an engine room fire that quickly spread 

out of control. With the vessel disabled and adrift two miles north of San 

Juan, Puerto Rico, the order was given for all 511 passengers and crew to 

abandon ship. Coast Guard District Seven and Sector San Juan activated 

their respective Mass Rescue Response plans, and within minutes, air and 

surface assets arrived on scene to assist. All 511 passengers and crew were 

rescued and brought to awaiting emergency medical services shore-side.

As the principal Federal Maritime Security Coordinator and Federal OnScene Coordinator in the coastal zone, the Coast Guard coordinates the 

response to oil and other hazardous materials spills in navigable waterways 

up to and including Spills of National Significance. In October 2015, the Coast 

Guard led response efforts to safely remove 48,000 gallons of contaminated 

water, 1,600 gallons of benzene, and 10,000 pounds of spent carbon from the 

Tank Barge ARGO in Lake Erie after it was identified as an environmental 

threat. Responders working under Coast Guard direction completed the 

complex emergency cleanup, which required specialized dive operations.

5,174

Lives saved 

during Coast Guard 

operations in 2016.

OUR BUDGET AT WORK 

The Coast Guard provides emergency response to save lives 

in peril, minimize loss of life, injury, and property damage. 

Responsible for the execution of the National Search and Rescue 

Plan, the Coast Guard plans searches, organizes, and dispatches 

assets to search, locate, and rescue mariners in distress, and 

provides initial medical advice, assistance, and evacuation. The 

Coast Guard relies on extensive partnerships to conduct SAR and 

coordinates SAR operations with international, federal, state, 

local, and tribal authorities.
In preparation for the CRYSTAL SERENITY’s 

voyage through the Northwest Passage, a Coast 

Guard marine inspector observes crew members 

as they test the capabilities of a crane and hyrostatic release raft. The Coast Guard conducted 

multiple examinations to test the crew’s ability to 

react in the event of an emergency.
MARITIME PREVENTION

The Maritime Prevention program mitigates the risk of human casualties 

and property losses, minimizes security risks, and protects the marine 

environment. The Coast Guard does so by providing the maritime 

governance that ensures safe, secure, and environmentally sound 

maritime approaches to the Nation. 

Maritime governance is established by Coast Guard regulations 

and operating standards for domestic vessels and marine facilities. 

Enforcement of those regulations occurs primarily through comprehensive 

inspections. In 2016, the Service conducted over 22,000 container 

inspections and monitored 1,000 oil, hazardous substance, or explosives 

transfers to ensure security of the maritime domain. The Coast Guard 

also inspected more than 1,500 marine facilities for compliance with 

safety and environmental protection regulations. In addition, the Coast 

Guard investigates commercial marine casualties to determine causal 

factors and provide recommendations to prevent future incidents. In 

2016, the Coast Guard conducted more than 6,400 incident investigations 

and partnered with the National Transportation Safety Board (NTSB) to 

investigate 45 major marine casualties involving public interest, including 

convening a Commandant’s Marine Board of Investigation (MBI) after the 

sinking of the EL FARO.

The Coast Guard also regulates recreational boating. In 2016, the Coast 

Guard boarded over 41,000 recreational vessels and conducted over 

2,600 recreational boat manufacturer inspections to ensure compliance 

with federal regulations. Coast Guard supported state agencies also 

conducted an additional 1.3 million recreational vessel boardings in 2016.

As an active member of the International Maritime Organization (IMO), the 

Coast Guard shares a global responsibility to facilitate safe and secure 

maritime commerce. Through the Port State Control program, the Coast 

Guard conducted over 9,300 safety examinations on foreign commercial 

vessels, resulting in 117 IMO detentions.

The Coast Guard also minimizes security risks to the homeland through 

activities to prevent incidents in the maritime domain, upon the global 

supply chain, or to the maritime transportation system. In 2016, the Service 

conducted over 5,900 inspections at Maritime Transportation Security Act 

regulated facilities to identify potential port security risks. The Coast Guard 

also visited more than 50 maritime trading partner countries to assess the 

effectiveness of anti-terrorism measures in over 150 foreign port facilities.

32.4

million 

Merchant vessel crew members 

and passengers screened for 

potential security threats prior to 

arrival in U.S. ports in 2016.

OUR BUDGET AT WORK 

As a component of the Department of Homeland 

Security and member of the Intelligence Community, the 

Coast Guard minimizes security risks to the Nation by 

screening vessels, crew members, and passengers prior 

to arrival in a U.S. port. 
A Coast Guard Petty Officer 

from Aids to Navigation 

Team Woods Hole climbs a 

structure in Buzzards Bay to 

replace an outdated lantern 

with a self-contained LED 

light. Aids to Navigation Team 

Woods Hole is responsible 

for maintaining 250 buoys, 20 

lighthouses, and 54 structures 

along the southeastern coast 

of Massachusetts.
MARITIME TRANSPORTATION

SYSTEM MANAGEMENT

The Maritime Transportation System Management program ensures a safe, 

secure, and environmentally sound waterways system. The Coast Guard 

minimizes disruptions to maritime commerce by assessing and mitigating risks 

to safe navigation by providing waterways restoration capabilities after extreme 

weather events, marine accidents, or intentional incidents. The Coast Guard 

works in concert with other Federal agencies, state and local governments, 

marine industries, maritime associations, and the international community 

to optimize balanced use of the Nation’s Maritime Transportation System. 

The Coast Guard also works with these key maritime industry stakeholders 

to recognize and address the growing cyber security vulnerabilities to the 

Maritime Transportation System.

Our Nation’s waterways support $4.6 trillion in economic activity for the United 

States. In 2016, the Coast Guard played a critical role in facilitating the safe 

transport of goods and services within the Maritime Transportation System by 

performing maintenance on 29,750 buoys and beacons and responding to more 

than 6,600 aids to navigation infrastructure discrepancies.

The Coast Guard is leveraging technology to improve safety and resilience 

of the Maritime Transportation System. In conjunction with port partners and 

industry stakeholders, electronic aids to navigation are being tested in locations 

in which they can best augment, and possibly replace, the existing physical 

system of buoys and beacons. The Coast Guard envisions an integrated system 

where a combination of electronic and physical Aids to Navigation improves 

the overall safety, efficiency, and resiliency of our waterways. In the summer 

of 2016, the Coast Guard partnered with the Army Corps of Engineers, and 

surveyed and marked a temporary Intercoastal Waterway channel from the 

Mississippi River through Breton and Chandeleur Sounds to the Gulfport Ship 

Channel. The 59 physical buoys and beacons placed by the Coast Guard 

were augmented with an additional 32 Automatic Identification System Aids 

to Navigation (AIS-ATON). The temporary alternate route ensured critical 

Intercoastal Waterway traffic was able to safely transit, uninterrupted, through 

the Mississippi River delta area.

Following two historically harsh winters on the Great Lakes, 2016 marked a 

return to average seasonal conditions. Coast Guard domestic icebreakers 

conducted more than 3,400 hours of icebreaking to facilitate the movement of 

two million tons of dry bulk and six million barrels of liquid cargoes through 

ice-impeded waters of the Great Lakes and Eastern Seaboard. Throughout 

the 2016 ice season, Coast Guard icebreaking assets kept all high priority 

waterways open without interruption.

$4.6

 trillion

Economic activity linked to U.S. 

waterways every year.

OUR BUDGET AT WORK 

The Coast Guard is responsible for maintaining secure and 

safe waterways for the benefit of commerce. Efforts require 

close coordination with all levels of government and the 

maritime industry to effectively manage inland and coastal 

navigational aids and keep critical maritime routes open 

during winter months. 
The Coast Guard’s Maritime 

Security Response Team 

(MSRT) participates in 

a training evolution in 

Hyannis, Massachusetts. 

The highly trained and 

specialized team, using 

a real-world underway 

ferry, practiced tactical 

boardings-at-sea, active 

shooter scenarios, and 

detection of radiological 

material. 
MARITIME SECURITY OPERATIONS

Maritime Security Operations encompass activities conducted to detect, 

deter, prevent, and disrupt terrorist attacks, and other criminal acts in the 

U.S. maritime domain. It includes the execution of antiterrorism, response, 

and select recovery operations. This program conducts the operational 

element of the Coast Guard’s Ports, Waterways, and Coastal Security 

mission and complements our Maritime Prevention efforts. 

The Ports, Waterways, and Coastal Security mission is a critical 

component of a layered approach to homeland security. It is conducted 

in coordination with other Department of Homeland Security agencies 

and the Department of Defense. The approach places a premium on 

intercepting threats before they reach U.S. shores by conducting layered, 

multi-agency, maritime security operations and by strengthening the port 

security posture of strategic economic and military ports. In this construct, 

the Coast Guard conducts both offshore and inshore security operations.

Preventing and disrupting terrorist attacks requires integrated, 

comprehensive operations that maximize effectiveness without 

duplicating efforts. The Coast Guard is a critical component in the 

effort to safeguard the Maritime Transportation System. The Service 

uses its unique authorities, competencies, operational capabilities, and 

partnerships to board and escort suspect vessels, enforce fixed security 

zones around maritime critical infrastructure and key resources, and patrol 

the maritime approaches, coasts, ports, and rivers of America. As part of 

critical force protection activities for the Nation’s strategic assets, Coast 

Guard Maritime Force Protection Units, located in Bangor, Washington, 

and Kings Bay, Georgia, provided effective waterborne, armed security 

for U.S. Navy ballistic missile submarines during 212 home-port surface 

transits in 2016.

The Coast Guard also plays a key role surging to support Maritime Security 

Response Operations to known security threats and high-profile events. 

In 2016, Coast Guard assets established and enforced fixed security 

zones in support of National Special Security Events, including the United 

Nations General Assembly in New York, the Presidential Conventions in 

both Cleveland and Philadelphia, and Super Bowl 50 in the San Francisco 

Bay Area.

To help protect the American people from maritime security threats, the 

Coast Guard conducted 14,606 waterborne patrols of critical maritime 

infrastructure, escorted over 2,629 high-capacity passenger vessels, and 

conducted 5,982 security boardings in and around U.S. ports during 2016.

558

High interest vessels boarded 

for potential security risks to the 

United States in 2016.

OUR BUDGET AT WORK 

Coast Guard efforts to enhance port security involve 

detecting, deterring, preventing, disrupting, and aiding 

in recovery from terrorist attacks and other criminal acts 

in the maritime domain. 
Coast Guard Cutter STRATTON

and the littoral combat ship USS 

CORONADO (LCS 4) steam in 

formation while transiting in the 

Pacific Ocean.
DEFENSE OPERATIONS 

The Defense Operations program exercises the Coast Guard’s unique authorities 

and capabilities to support the National Military Strategy. The program portfolio 

comprises eight activities including: Maritime Interdiction Operations; Combating 

Maritime Terrorism; Port Operations Security and Defense; Military Environmental 

Response Operations; Coastal Sea Control Operations; Maritime Operational 

Threat Response (MOTR); Rotary Wing Air Intercept Operations; and Support for 

Theater Security Cooperation Initiatives. 

The Coast Guard is involved in fighting terrorism not only in U.S. waters but around 

the world through its support of Department of Defense (DOD) partners. As both 

a federal law enforcement agency and an Armed Service, the Coast Guard is 

uniquely positioned to conduct defense operations in support of Combatant 

Commanders by performing rotary-wing air intercept operations and providing 

assets to work with U.S. naval forces. An example of the synergy between the 

Services is the Cooperative Strategy for 21st Century Seapower; this strategy 

reaffirms the importance of the maritime domain and the Coast Guard, Navy, 

and Marine Corps’ role in supporting national, defense, and homeland security 

priorities across the globe. Coast Guard multi-mission forces are able to integrate 

with DOD in a wide range of maritime operations.

Overseas deployments demonstrate to the DOD, Joint Forces, and Combatant 

Commanders that the Coast Guard possesses relevant competencies to 

contribute to the successful accomplishment of naval warfare missions and 

Theater Security Cooperation (TSC) initiatives. For example, Coast Guard Port 

Security Units (PSUs) have been deployed almost continuously to strategic ports 

in Kuwait since 2002 for port security; Island class patrol boats have conducted 

security for Iraqi oil platforms continuously since 2002 and in more recent years 

have been conducting TSC missions throughout the U.S. Central Command’s 

area of responsibility. In addition to these TSC missions, Coast Guard Tactical 

Law Enforcement Teams conducted 26 deployments onboard U.S. Navy and 

Allied vessels in 2016. One such deployment aboard the USS SHAMAL (PC-13) 

supported Joint Interagency Task Force South and resulted in the interdiction 

of two go-fast vessels, five suspected smugglers, and the removal of 800 kg 

of cocaine.

The Coast Guard is also uniquely positioned to assist other nations in developing 

maritime forces and is involved in a diverse range of productive Security Sector 

Assistance (SSA) partnerships around the world. The Coast Guard is a full-service 

maritime development partner with the technical and professional capabilities to 

address a range of small-service maritime development issues. As a Service with 

a global reputation for humanitarian response, the Coast Guard often enjoys a 

level of entry not afforded to other U.S. or foreign military organizations. In 2016, 

Coast Guard boat handling and boat maintenance experts joined U.S. Marines on 

Joint Riverine Training Teams on deployments to Central America in support of 

U.S. Southern Command. The teams trained Belize, Costa Rica, and Guatemala 

Marine and Riverine forces in maritime interdiction procedures.

139

DoD directed Rotary Wing 

Air Intercept operational 

missions conducted by the 

Coast Guard in 2016.

OUR BUDGET AT WORK 

The Department of Homeland Security’s efforts to combat 

terrorism and enhance security include detecting, deterring, 

preventing, disrupting, and aiding in recovery from terrorist 

attacks and other criminal acts in the maritime domain. The 

Coast Guard also has a leading role in the National Capital 

Region Air Defense mission to provide 24/7 continuous 

airspace protection over the National Capital Region. 
A few armed vessels, judiciously 

stationed at the entrances of our 

ports, might at a small expense be 

made useful sentinels of the laws.

— Alexander Hamilton,

Founder

U.S. COAST GUARD HEADQUARTERS

WASHINGTON, D.C.

www.uscg.mil/budget