&

United States

Coa st GUard

Posture Statement

2016 Budget in Brief

2014 Performance highlights
Crewmembers from Coast Guard 

Maritime Safety and Security Team 

Kings Bay, Ga., patrol Baltimore’s 

Inner Harbor.
The United States Coast Guard operates in a complex, diverse and 

rapidly changing world. To ensure we meet the demands of today 

while preparing for tomorrow, the Service will align our actions 

and investments with the Department of Homeland Security (DHS) 

and National strategies. The Posture Statement provides the 

strategic context of the external environment and highlights my 

focus for Fiscal Year 2016. 

The Fiscal Year 2016 Budget reflects our continuous and sound 

stewardship of constrained resources as we prioritize and 

economize our investments in the 21st century. Investments in the 

Offshore Patrol Cutter, improved aviation capabilities, integrated 

command and control systems and a proficient workforce are all 

critical to our future success. We will adapt to address today’s 

challenges while positioning the Coast Guard for sustained mission excellence deep into the 21st century. 

I am firmly committed to prioritizing operations and resources to Maximize Service to the Nation. 

As a unique force with both military and civil authorities, Coast Guard missions touch nearly every facet 

of the Nation’s strategic maritime interests. Coast Guard authorities, people and assets are essential to 

national security and economic prosperity. I am extremely proud of the results our Coast Guard active 

duty, civilian, reservists and auxiliary personnel accomplish daily in support of national priorities. The 

2014 Performance Highlights demonstrate the enduring, multi-mission character and intrinsic value of the 

Coast Guard to the United States.

As we approach 225 years of service, history has demonstrated a responsive, capable and agile Coast 

Guard will meet any operational demand and is a vital instrument of national security. We will remain 

Semper Paratus – Always Ready.

THE COMMANDANT OF THE UNITED STATES COAST GUARD

WASHINGTON, D.C.

P. F. ZUKUNFT

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

At all times an Armed Force, a regulatory agency, a humanitarian service, a federal law enforcement agency and a member 

of the intelligence community, the Coast Guard is responsible for the safety, security and stewardship of the Nation’s waters. 

The Coast Guard employs broad authorities and capabilities, leverages expansive partnerships and projects effective and 

persistent presence to ensure the most vital national interests in the maritime operating environment are met. 

Strategic Landscape 

Transnational trends and geostrategic challenges are rapidly changing our world. Transnational Organized Crime networks, 

technological advancements in marine industries, cybersecurity risks, impacts of climate change, shifting human migration 

patterns and weakening sovereign nation states all pose significant challenges for U.S. National Security and economic 

prosperity. Our maritime domain has never been so complex, and increased opportunities for economic prosperity are 

accompanied by new challenges in the maritime domain. As such, the Coast Guard must look to the future, adapt its 

operations and prepare for the demands ahead. 

Strategic Focus

While external trends continue to increase risk in our operating environment, fiscal and budgetary realities necessitate 

strategic approaches that optimize efficiency and effectiveness. The Coast Guard has begun development of a suite of 

regional and functional strategies that address the most pressing risks the Coast Guard will face in the next ten years. The 

first two of these strategies – the Coast Guard Arctic Strategy and the Coast Guard Western Hemisphere Strategy – have 

clearly defined our highest priorities in the respective regions. Future strategies, such as the Coast Guard Cyber Strategy, 

will focus on priorities associated with specific trends, such as the rise of cyber threats in our operating environment. 

These strategies are informed by applicable national and department-level strategy, the Quadrennial Homeland Security 

Review (QHSR) and the Quadrennial Defense Review (QDR).

While the Coast Guard will remain active globally – from the Polar ice caps to the Persian Gulf – the Western Hemisphere 

represents a critical front for U.S. National interests. To meet the demands of the Nation in the coming year, the Coast Guard 

must focus on several key areas:

I. Combating Transnational Organized Crime (TOC) networks. In our own hemisphere, threats and challenges are 

growing, including the instability in Central and South America linked to TOC networks. Fueled by immense profits from 

drug trafficking, these networks are involved in activities that span terrorism, human smuggling, trafficking in persons 

and weapons, piracy and environmental crime. These networks weaken governments, thwart legitimate economic 

development and terrorize peaceful citizens. 

To combat TOC networks, the Coast Guard will:

➢ Build the network of interagency and international partners to combat TOC networks. Collaborate 

within The Interdiction Committee (TIC) to identify, target and defeat illicit networks. 

➢ Continue building upon 41 international counter-drug bilateral agreements and work with the 

interagency and international partners to grow partner nation capacity.

posture statement
➢ Use intelligence to drive interdictions at sea, resulting in the prosecution of smugglers and the 

disruption and defeat of TOC networks.

➢ Increase offshore presence to interdict drugs at sea – where they are in their highest quantity, highest 

purity and most vulnerable – in order to sever criminal revenue sources.

➢ Invest in the Offshore Patrol Cutter (OPC) to replace the aging fleet of Medium Endurance Cutters. 

II. Securing the Southern Border. Securing the Nation’s maritime borders is one of the Coast Guard’s greatest challenges. 

In recent years, border threats to our Southern Approaches have grown dramatically. The Caribbean basin, Central 

America and South America represent an extremely diverse and expansive region, which includes several U.S. territories 

including Puerto Rico. The U.S. has strong and highly productive international relationships with many countries in the 

region to our south, but many of the region’s nations suffer from economic hardship, ineffective governance and other 

societal challenges. 

To secure the southern border, the Coast Guard will: 

➢ Build unity of effort within the Department of Homeland Security Southern Border and Approaches Campaign 

Plan.

➢ Deter illegal migration activity and provide the necessary indications and warnings for the U.S. concerning 

maritime mass migration.

III. Safeguarding Maritime Commerce. The Nation’s prosperity is inextricably tied to the stability and safety of our Marine 

Transportation System (MTS) and the reliability of our maritime critical infrastructure. The MTS is the lifeblood of 

the National economy and is the conduit for 90 percent of U.S. trade by volume. The safe and efficient movement of 

commerce within the Nation’s waterways is critical to every citizen. Dramatic changes in U.S. energy production have 

increased the demand on the entire MTS. Increased congestion, larger vessels, greater complexity of port operations 

and expanded movement of energy resources and hazardous materials increases the overall risk of an incident that 

could inhibit economic productivity and have environmental consequence. 

To safeguard commerce, the Coast Guard will:

➢ Conduct a comprehensive review of oversight and regulatory frameworks to improve safety and 

maximize efficiency of the Nation’s MTS.

➢ Increase the proficiency of the Marine Safety workforce.

➢ Focus on innovative technologies to improve waterways management and the aids to 

navigation system.

IV. Enhancing Cybersecurity. Cyber technology has not only fueled unprecedented growth and efficiency in our globalized 

economy, but has also spawned a growing number of challenges and risks that jeopardize our Nation’s security 

and prosperity. Government and commercial systems face emerging cyber threats from adversaries that possess 

substantial resources and employ sophisticated tools. These threats pose significant risks to the MTS and could 

compromise or limit the ability of the system to function efficiently. 

To increase cybersecurity, the Coast Guard will:

➢ Continue to align with DHS and DOD in developing a cyber strategy to defend our own network and 

work with port partners to protect maritime critical infrastructure and the MTS. 

➢ Coordinate our cybersecurity activities across Federal, state, local and maritime industry 

stakeholders.

V. Adapting in the Polar Regions. Resource development and opportunities for new trade routes are growing in the Arctic. 

Management of these issues is critical to a safe and responsible use of this vital region now and in the future. Climate 

change consequences are wide ranging and are most readily seen in the polar regions. The impacts of decreasing ice 

coverage in the Arctic include increased human activity and a greater interest in the region’s natural resources. 

To achieve national objectives in the polar regions, the Coast Guard will:

➢ Cooperate with the Department of State and other Federal and international partners as the U.S. 

assumes Chairmanship of the Arctic Council.

➢ Lead the Coast Guard Arctic Forum.

➢ Support Law of the Sea Convention ratification.

➢ Advocate for national capability in the polar regions.
VI. Committing to Coast Guard Men and Women. Cutters, boats and aircraft are the most visible symbols of the Coast 

Guard, but its people provide the unique capabilities and competencies the Nation has come to rely upon for nearly 

225 years. In looking forward, the Coast Guard must continue investing in its nearly 40,000 active duty, 7,500 reservists, 

8,000 civilians and 30,000 volunteer auxiliarists by providing them the right platforms, tools and training to proficiently 

and safely serve the Nation’s maritime interests. 

To most effectively execute its missions, the Coast Guard will:

➢ Foster a culture of respect in which leaders promote and sustain a climate that does not tolerate 

sexual assault, sexual harassment and enabling behaviors.

➢ Revolutionize human capital management to recruit and retain the most talented, diverse and 

proficient workforce for the 21st Century Coast Guard.

➢ Develop a force planning construct defining current and future Coast Guard workforce 

requirements.

Building America’s 21st Century Coast Guard

The Coast Guard must continue evolving to address emerging demands. Enhanced integration across DHS, rapid 

innovations and more complicated operations necessitate greater unity of effort. The Coast Guard must keep pace to best 

serve the Nation. Further, advances in technology and the growing complexity of the maritime operating environment 

demand modern, affordable and integrated assets to support coordinated command and control, flexible operational 

capability and surge capacity. Multifaceted missions, changing demographics and knowledge-driven workplace 

systems require an adaptable, proficient and diverse workforce with increased technical skill sets. 

The Fiscal Year 2016 Budget priorities lay the foundation for the Service to address today’s challenges and key focus 

areas over the next five years. We will invest in the 21st century Coast Guard by building the necessary platforms 

to meet future missions, sustain mission excellence to meet current demands and maximize service to the Nation by 

driving efficiency and effectiveness throughout all activities. Finally, the Coast Guard’s overall mission performance will 

demonstrate its value in protecting America’s national security interests and preserving its economic prosperity.
The Coast Guard’s FY 2016 Budget preserves Coast Guard operations and continues recapitalization efforts 

for the 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 2016 Budget priorities are:

FY 2016 budget priorities

Invest

in the 21st Century 

Coast Guard

Sustain

Mission

Excellence

Maximize

Service to

the Nation
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 existing assets, future mission success relies on continued recapitalization of Coast Guard boats, cutters, aircraft, 

systems and infrastructure.

 

In support of DHS’s strategic objectives and in furtherance of the Coast Guard Western Hemisphere and Arctic Strategies, the FY 2016 

Budget provides for the acquisition of six Fast Response Cutters, continues to invest in pre-acquisition activities for an affordable 

Offshore Patrol Cutter and funds vessel sustainment projects for two 140-foot Icebreaking Tugs and a 225-foot Seagoing Buoy Tender. 

The budget also continues sustainment and conversion work on legacy fixed and rotary wing aircraft, missionization of the HC-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 2016 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 commitment to its workforce and supports proficiency, maximizing operational safety and 

effectiveness. In 2016, the Coast Guard will decommission two 110-foot Patrol Boats that are being replaced by more capable 

Fast Response Cutters. The Coast Guard will also decommission three HC-130H aircraft and corresponding support personnel while

accepting the delivery of new HC-130J aircraft and HC-27J aircraft. In all, the FY 2016 Budget sustains the Coast Guard’s highest 

priority operations with current operational assets and the necessary workforce.

Maximize Service to Nation

In best serving the Nation, the Coast Guard must meet evolving mission requirements stemming from national priorities and remain a 

trusted steward of public resources. The 2016 Budget sustains critical frontline operations by efficiently allocating resources across 

all mission programs. Coast Guard Operational Commanders will continue maintaining search and rescue coverage, protecting critical 

infrastructure, countering illicit threats from entering the United States, facilitating a safe Marine Transportation System (MTS) to 

minimize physical and cyber disruptions to the transit of maritime commerce, safeguarding the maritime environment and supporting 

foreign policy objectives and defense operations. 

The FY16 Budget in Brief

Invest in the 21st Century Coast Guard 
Acquisition, Construction, and Improvements (AC&I)

Surface Assets $533.9M (0 FTE)

The budget provides $533.9 million for the following surface asset recapitalization and sustainment initiatives:

➢ National Security Cutter (NSC) – Provides funding for the 

Structural Enhancement Drydock Availability (SEDA) for the 

NSC and Post Delivery Activities for the fifth through eighth 

NSCs, completing the recapitalization of the Coast Guard’s High 

Endurance Cutter fleet. The acquisition of the NSC is vital to 

performing DHS missions in the far off-shore regions, including 

the harsh operating environment of the Pacific Ocean, Bering 

Sea and Arctic;

➢ Fast Response Cutter (FRC) – Provides funding to procure six 

FRCs. These assets replace the aging fleet of 110-foot patrol 

boats that provide the coastal capability to conduct search and 

rescue operations, enforce border security, interdict drugs, 

uphold immigration laws, prevent terrorism and enhance 

resiliency to disasters; 

➢ Offshore Patrol Cutter (OPC) – Supports technical review and 

analysis of preliminary and contract design phase deliverables 

for the OPC project. The Administration’s request includes a 

General Provision permitting a transfer to the OPC project if the 

program is ready to award the next phase of vessel acquisition 

in FY 2016. The OPC will replace the Medium Endurance 

Cutter classes that conduct missions on the high seas and 

coastal approaches;

➢ Polar Icebreaker (WAGB) – Continues pre-acquisition 

activities for a new polar icebreaker; 

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

Guard’s major cutter fleet beginning with the NSC;

➢ In-Service Vessel Sustainment – Continues funding for 

sustainment projects on 140-foot ice-breaking tugs, 225-foot 

Seagoing Buoy Tenders, the training Barque EAGLE, and initial 

sustainment activities for the 47-foot motor lifeboats; 

➢ Survey and Design – Continues funding for multi-year 

engineering and design work for multiple cutter classes in 

support of future sustainment and acquisition projects
Air Assets $200.0M (0 FTE)

The budget provides $200.0 million for the following air asset recapitalization or enhancement initiatives:

➢ HC-144A – Funds spare parts required to maintain the 

operational availability of the HC-144A Ocean Sentry aircraft;

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

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

maintenance support and ensures these newly acquired 

aircraft are ready for induction into the operational fleet. 

Funds aircraft regeneration, spares, initial training, mission 

system development, ground support equipment to stand up 

first operational unit; 

➢ HH-65 – Continues modernization and sustainment of the 

Coast Guard’s fleet of HH-65 helicopters, converting them 

to MH-65 Short Range Recovery (SRR) helicopters. The 

modernization effort includes reliability and sustainability 

improvements, where obsolete components are replaced 

with modernized sub-systems, including an integrated 

cockpit and sensor suite; 

➢ HC-130J – Funds initial spare parts required for stand up of 

the second operational HC-130J unit.

Other (Asset Recapitalization) $65.1M (0 FTE)

The budget provides $65.1 million for other initiatives funded under the Acquisition, Construction and Improvements account, including 

the following equipment and services: 

➢ 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;

➢ Command, Control, Communications, Computers, 

Intelligence, Surveillance and Reconnaissance 

(C4ISR) – Provides design, development, upgrades and 

assistance on C4ISR hardware and software, creating a 

common operational picture and ensuring interoperability of 

all new and in-service assets; 

➢ CG-Logistics Information Management System – 

Continues development and deployment of a unified logistics 

system for Coast Guard operational assets.

Shore Units & Aids to Navigation (ATON) $101.4M (0 FTE)

The budget provides $101.4 million to recapitalize shore infrastructure for safe, functional, and modern facilities that support Coast 

Guard assets and personnel:

➢ Specific Projects – Funds pier improvements in Little 

Creek, Virginia, to facilitate 210-foot WMEC homeport 

shift, renovation and restoration of electrical system at Air 

Station Barbers Point, Hawaii; funds the first phase of the 

replacement of aging dry-dock facilities at the Coast Guard 

yard; erosion control work at Station Siuslaw River, Oregon; 

provides permanent facilities at Station Vallejo, 

California;

➢ ATON Infrastructure – Maintains transportation 

safety on Federal waterways through construction and 

improvements to short-range aids and infrastructure to 

improve the safety of maritime transportation. 

➢ Major Acquisition System Infrastructure – Funds 

modification and construction of facilities to support newlydelivered acquisitions. Includes upgrades and construction 

for NSC homeports, Medium Range Surveillance aircraft 

operational and maintenance facilities and engineering, 

feasibility and environmental studies for future projects.

Acquisition Personnel & Management $116.9M (881 FTE)

The budget provides $116.9 million for pay and benefits of 

the Coast Guard’s acquisition workforce.
Operating Expenses (OE)

Operating & Maintenance Funds for New Assets $89.9M (222 FTE)

Provides funding for operations and maintenance of shore facilities, as well as cutters, boats, aircraft and associated C4ISR subsystems 

delivered through acquisition efforts:

➢ Shore Facilities – Funds operation and maintenance of shore 

facility projects scheduled for completion by FY 2016;

➢ Response Boat-Medium – Funds operation, maintenance 

and support of 4 RB-Ms;

➢ FRC – Funds operation and maintenance of FRCs #18-21 and 

provides funding for personnel to operate and maintain hulls 

#19-22, including the shore-side support personnel;

➢ NSC – Funds personnel for NSC #6, and costs for shoreside support personnel for NSCs #4-5 (to be homeported in 

Charleston, South Carolina);

➢ HC-27J Aircraft – Funds operations, maintenance and 

personnel funding for the first four C-27J aircraft that will be 

assigned to Air Station Sacramento, California. 

 

Pay & Allowances 

$80.8M (0 FTE)

Maintains parity with DoD for military pay, allowances and health 

care, and for civilian pay raise and retirement contributions. 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.

Asset Decommissionings

As the Coast Guard recapitalizes its cutter and aircraft fleets and 

brings new assets into service, older assets being replaced will be 

decommissioned or retired.

➢ Patrol Boat (WPB) -$1.1 M (-14 FTE)

Decommissions two 110-ft WPB patrol boats. These assets 

will be replaced with FRCs in the 7th Coast Guard District. 

➢ HC-130H Aircraft Retirement -$11.7M (-53 FTE)

Eliminates funding and personnel associated with the 

retirement of three HC-130H to the Air Force for transfer to 

the U.S. Forest Service as outlined in the FY 2014 National 

Defense Authorization Act. Newly acquired HC-130J and HC27J aircraft will provide increased operational reliability.

Operational Adjustments

In FY 2016, the Coast Guard will make sound, risk-based adjustments while investing in critical recapitalization initiatives. 

These adjustments include: :

➢ Cybersecurity Remediation

+$5.2M (0 FTE)

This increase reflects a portion of a DHS-wide plan to address 

identified vulnerabilities related to a component controlled 

system and the Department will track remediation of these 

vulnerabilities commencing in FY 2015.

➢ Support Structure Review and Rebalancing

-$2.5M (-18 FTE)

A thorough review of the Coast Guard’s support delivery 

structure identified personnel reductions at various locations 

that can be taken with no direct operational impacts and a 

minimal loss of current service delivery;

➢ National Capital Region Footprint Consolidation

-$3.0M (0 FTE)

Reduces the Coast Guard’s physical footprint in the National 

Capital Region through consolidation of personnel and offices 

into the Douglas A. Munro Coast Guard Headquarters Building 

at St. Elizabeths; 

➢ Professional Services Contract Reduction

-$44.9M (0 FTE)

Reduces or scales professional services contracts and redirects 

savings to higher priorities;

➢ Manual Continuous Monitoring Reduction

-$1.2M (0 FTE)

Due to increased capabilities of the Continuous Diagnostics and 

Mitigation (CDM) program, the need for manual cybersecurity 

monitoring is reduced and the Coast Guard is able to achieve 

savings with no loss of IT system security;

➢ Headquarters Directorate Reduction

-$5.0M (0 FTE)

Reduces funding for the overhead costs of Coast Guard 

headquarters directorates through a focused effort to minimize 

duplicative spending on consumable supplies and materials. 
Appropriation ($000) FY 2014

Revised Enacted1

FY 2015

President’s Budget

FY 2016

President’s Budget

Operating Expenses (OE) $6,782,607 $6,750,733 $6,821,503

Acquisition, Construction and Improvements (AC&I) $1,373,135 $1,084,193 $1,017,269

Environmental Compliance and Restoration (EC&R) $13,164 $13,214 $13,269

Reserve Training (RT) $120,000 $109,605 $110,614

Research, Development, Test and Evaluation (RDT&E) $19,200 $17,947 $18,135

Alteration of Bridges --- --- ---

Health Care Fund Contribution (HFC) $185,958 $176,970 $159,306

Sub-total (Discretionary Funding)2 $8,494,064 $8,152,662 $8,140,095 

Retired Pay $1,460,000 $1,443,896 $1,605,422

Boat Safety $105,874 $112,830 $115,776

Maritime Oil Spill Program $186,225 $101,000 $101,000

Gift Fund $2,049 $80 $1,621

Sub-total (Mandatory Funding) $1,754,148 $1,657,806 $1,823,819 

OSLTF Contribution [$45,000] [$45,000] [$45,000]

Transfer to ICE for UACs [-$29,000]

Hurricane Sandy Supplemental Funding from AC&I to OE [$26,800] --- ---

Overseas Contingency Operations $227,000 --- ---

FY 2013 § 505 Rescission ($3,879) --- ---

Rescission of unobligated balances -$149,459 --- ---

Transfer to DHS for UAC Emergency Reprogramming [-$2,500]

Sub-total (Transfers and Supplementals) $73,662 --- ---

TOTAL BUDGET AUTHORITY2 $10,321,874 $9,810,468 $9,963,913 

1 Reflects reprogrammings/transfers, as applicable, and actual FTE.

2 Small differences due to rounding of individual appropriations.

Table 1: Appropriation Summary

Table 2: FY 2016 Net Discretionary Budget Authority – Breakout by Statutory Mission

Coast Guard Mission ($000) FY 2014

Revised Enacted1

FY 2015

President’s Budget

FY 2016

President’s Budget

FY 2015 +/-

FY 2016

 Aids to Navigation $1,418,797 $1,433,560 $1,564,990 $131,430

 Defense Readiness $691,488 $704,234 $632,814 -$71,420

 Drug Interdiction $1,575,875 $1,444,134 $1,332,122 -$112,012

 Ice Operations $135,808 $214,064 $239,211 $25,147

 Living Marine Resources $1,030,729 $1,029,137 $1,097,021 $67,884

 Marine Environmental Protection $458,606 $370,213 $337,841 -$32,372

 Marine Safety $812,468 $750,608 $805,057 $54,449

 Migrant Interdiction $748,096 $695,479 $715,688 $20,209

 Other-Law Enforcement (Foreign Fish) $186,698 $176,599 $128,710 -$47,889

 Ports, Waterways and Coastal Security $2,126,006 $2,064,948 $2,114,159 $49,211

 Search and Rescue $1,063,641 $927,492 $996,302 $68,810

Net Discretionary Excluding Supplementals and Transfers $8,494,064 $8,152,662 $8,140,095 -$12,567

Mandatory Funding $1,754,148 $1,657,806 $1,823,819 $166,013

OSLTF Contribution [$45,000] [$45,000] [$45,000] [$45,000]

Transfer to ICE for UACs [-$29,000] --- --- ---

Hurricane Sandy Supplemental Funding from AC&I to OE [$26,800] --- --- ---

Overseas Contingency Operations $227,000 --- --- ---

FY 2013 § 505 Rescission ($3,879) --- --- ---

Rescission of unobligated balances -$149,459 --- --- ---

Transfer to DHS for UAC Emergency Reprogramming [-$2,500] --- --- ---

TOTAL BUDGET AUTHORITY2 $10,325,753 $9,810,468 $9,963,913 $153,445

1

 Pursuant to P.L. 113-76: $153.3 million was rescinded in FY 2014 ($149.4 million in AC&I funds and $3.9 million in OE funds). 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 2016

Request

Vessels $533,900

Survey and Design - Vessel and Boats $9,000

In-Service Vessel Sustainment $68,000

National Security Cutter (NSC) $91,400

Offshore Patrol Cutter (OPC) $18,500

Fast Response Cutter (FRC) $340,000

Cutter Boats $3,000

Polar Icebreaker $4,000

Aircraft $200,000

Maritime Patrol Aircraft (MPA) $3,000

HC-27J Conversion/Sustainment $102,000

HH-65 Conversion/Sustainment Projects $40,000

Long Range Surveillance Aircraft (C-130H/J) $55,000

Other $65,100

Program Oversight and Management $20,000

C4ISR $36,600

CG-LIMS $8,500

Shore and ATON $101,400

Major Shore, ATON and S&D $41,900

Major Acquisition Systems Infrastructure $54,500

Minor Shore $5,000

Personnel and Management $116,869

Direct Personnel Costs $116,869

TOTAL $1,017,269 

Table 3: FY 2016 Acquisition, Construction, and Improvements (AC&I)
 Budget Change (Dollars in Thousands)

 Pos. FTE Amount

FY 2014 Revised Enacted1 48,396 46,400 $6,782,607 

FY 2015 President’s Budget 47,644 48,116 6,750,733 

Adjustments-to-Base 

Transfers to and from Other Accounts 

 Transfer 2 2 5,984 

 Total Transfers 2 2 5,984

Increases 

 Annualization of Part Year Funding - 176 54,959 

 Mandatory Personnel Entitlements 

 Annualization of 2015 Military and Civilian Pay Raise - - 7,180 

 2016 Military Pay Raise - - 20,177 

 2016 Civilian Pay Raise - - 7,587 

 2016 Military Allowances - - 42,942 

 2016 Civilian Allowances - - 2,954 

 Operational Adjustments 

 GSA and Other Governmental Rent - - 1,650 

 High Risk Internal Cybersecurity Remediation - - 5,171 

 Operating and Maintenance Funds for New Assets 

 Shore Facility Follow-On - - 3,310 

 Response Boat - Medium (RB-M) Follow-On 1 1 453 

 Logistics Information Management System (LIMS) Follow-On - - 2,452 

 Fast Response Cutter (FRC) Follow-On 161 69 17,191 

 National Security Cutter (NSC) Follow-On 146 44 6,061 

 C-27J Aircraft Support Follow-On 152 77 47,420 

 HC-130J Aircraft Follow-On 33 17 7,615 

 MH-60T Helicopter Follow-On 27 14 5,359 

 Air Station Los Angeles Relocation: Phase 1 1 1 3,415 

 ATTC Underwater Egress Facility Support Follow-on 2 2 171 

 sUAS Service Contract 2 1 2,560 

 Base Re-Allocations (Non-Add) 

 Military FTP and FTE Transfer to Civilian [7] [7] [789]

 PPA Funding Adjustment - - [35,544]

otal Increases 525 402 238,627 

Decreases 

Termination of One-Time Costs - - (21,422)

Part Year Management Annualizations - (616) (78,811)

 Operational Adjustments 

 Shore-side Support Structure Review & Rebalancing (16) (8) (607)

 Logistics & Service Center Shared Service Efficiencies (18) (10) (1,900)

 National Capitol Region Footprint Consolidation - - (3,000)

 Fuel Logistics Management Program Review - - (300)

 Health Services Delivery Review & Rebalancing (14) (7) (3,799)

 Headquarters Directorate Reduction - - (5,000)

 Cellular Wireless Savings - - (4)

 Professional Services Contract Reduction - - (44,999)

 Continuous Monitoring Reduction - - (1,254)

 Asset Decommissionings and Retirements 

 Two 110-foot Patrol Boats (27) (14) (1,061)

 Three HC-130 Aircraft (106) (53) (11,684)

otal Decreases (181) (708) (173,841)

Total Adjustments-to-Base 346 (304) 70,770 

FY 2016 Current Services 47,990 47,812 6,821,503 

FY 2016 Request 47,990 47,812 6,821,503 

FY 2015 to FY 2016 Total Change 346 (304) 70,770

1

 Excludes funding provided to the Coast Guard for Overseas Contingency Operations (OCO).

Table 4: Operating Expenses FY 2015 Request to FY 2016 Request
On an average day, the Coast Guard: 

Conducts 48 search and rescue cases; saves 9 lives; 

assists 73 people in distress; saves over $132,000 in property;

seizes 297 pounds of marijuana and 549 pounds of cocaine worth $8.2 million;

services 134 buoys and fixed aids to navigation; interdicts 6 illegal migrants; 

conducts 24 security boardings in and around U.S. ports; escorts 5 high-capacity passenger vessels; 

conducts 54 waterborne patrols of critical maritime infrastructure; 

investigates 24 pollution incidents; inspects 127 vessels, containers and marine facilities;

issues 173 credentials to merchant mariners; facilitates movement of $8.7 billion worth of goods and commodities 

through the Nation’s marine transportation system. 

Semper Paratus – Always Ready
A Coast Guard engineer inspects the 

Eads Bridge in St. Louis, Missouri.
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 Strengthen National Preparedness and Resilience.

Coast Guard activities cross six mission programs:

1. Maritime Law Enforcement; 

2. Maritime Response;

3. Maritime Prevention;

4. Marine Transportation System Management;

5. Maritime Security Operations;

6. Defense Operations.

Every day Coast Guard men and women work with DHS and other Federal, state, local and 

international partners to provide the service the Nation has come to expect over our 225 year 

history. In 2014, Coast Guard operations supported national goals and achieved tremendous results.

2014 Performance Highlights
Crewmembers from the Coast 

Guard Cutter Stratton unload 

narcotics from a smuggling vessel 

intercepted by the crew in the 

Eastern Pacific Ocean.
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. 

The Maritime Law Enforcement program preserves America’s jurisdictional 

rights within our maritime borders and suppresses violations of U.S. Federal 

law on, under and over the seas. The Coast Guard is the lead Federal maritime 

law enforcement agency for enforcing 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. 

As the Nation’s lead maritime law enforcement agency, the Coast Guard 

directly supports the security and management of our Nation’s maritime 

borders, including waters of the Great Lakes, U.S. Territorial Seas, the U.S. 

Exclusive Economic Zone and the high seas. The Coast Guard’s success 

in the interdiction of illegal drugs is emblematic of its role as the Nation’s 

lead maritime law enforcement agency. In 2014, the Coast Guard combatted 

Transnational Organized Crime (TOC) networks by removing over 140 metric 

tons of illegal drugs from the maritime domain, more than the amount seized 

by all other Federal agencies combined, and detaining over 340 suspected 

smugglers for prosecution in the U.S. 

In the interest of protecting America’s natural resources, endangered marine 

species and marine sanctuaries, the Coast Guard conducted over 5,900 

fisheries boardings on U.S. vessels in addition to 69 boardings of foreign 

vessels to enforce laws that prohibit illegal, unregulated, and underreported 

(IUU) fishing. IUU fishing is global in reach and Coast Guard efforts are 

critical to stemming this illegal activity that is harmful to ecosystems and a 

threat to global food security. 

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 U.S., its territories and possessions. Thousands of people try 

to enter this country illegally every year using maritime routes, many via 

smuggling operations. Interdicting migrants at sea reduces the safety risks 

involved in such transits and means migrants can be quickly returned to their 

countries of origin without the costly processes required if they successfully 

enter the U.S.. During 2014, the Coast Guard interdicted 3,587 total illegal 

migrants, including 1,103 from Haiti and 2,111 from Cuba. $3 billion

Street value of illegal drugs 

removed by the Coast Guard

in 2014. 

maritime law enforcement

USCG

mission

Pro g r a

m
A Coast Guard member operates the winch during the hoist of a survivor 

of a fishing vessel emergency to a Coast Guard MH-60 Jayhawk 

helicopter in Kodiak, Alaska. The air station launched to conduct 12 

search and rescue cases including five medevacs during the month 

of August 2014 with a total of 11 lives saved and seven lives assisted.
3,443

USCG

mission

Pro g r a

m

Our BUDGET AT WORK

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 impact of 

disasters to people, the environment and the economy. 

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

the Coast Guard has proven to be an effective leader in the maritime domain, 

including in the Arctic where Coast Guard presence and work through the 

Coast Guard Arctic Forum have made the Nation more ready to respond to 

a maritime incident in the region. 

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

posture enable it to protect life, property, and the environment in response 

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

to respond to over 17,500 search and rescue cases in 2014, resulting in 

over 3,400 lives saved. In October 2013, when a passenger vessel capsized 

off Miami, a Coast Guard 45-foot Response Boat, MH-65 medium-range 

helicopter and a volunteer Coast Guard Auxiliary unit responded and 

quickly rescued 30 individuals from the water and ensured all passengers 

were safely returned to shore. 

As the principal Federal Maritime Security Coordinator and Federal On-Scene 

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 2014, a collision involving an oil 

tank barge resulted in the discharge of approximately 168,000 gallons of oil 

into Galveston Bay near Texas City, Texas. The Coast Guard established and 

led an interagency team of Federal, state and local responders to protect 

the sensitive areas located near and around the area of discharge, including 

protecting threatened and endangered species placed at risk by the spill. 

The Coast Guard-led team quickly established a safety zone and removed 

the hazardous material from the affected waterway. 

 

Lives saved during 

Coast Guard operations in 2014.

The Coast Guard provides emergency 

response to save lives in peril and 

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

maritime response
A Coast Guard marine inspector inspects 

machinery equipment aboard a vessel 

moored in Richmond, Calif.
USCG

mission

Pro g r a

m

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 safeguards maritime commerce by ensuring 

safe, secure and environmentally sound maritime approaches to the 

Nation. 

That maritime governance is instituted by the Coast Guard’s 

development of regulations and operating standards for domestic 

vessels and marine facilities and enforcement of those regulations 

through comprehensive inspections. In 2014, the Coast Guard inspected 

over 12,500 U.S.-flagged commercial vessels to ensure compliance with 

safety and security requirements. The Service completed inspections 

on over 25,300 containers finding over 2,000 deficiencies, which led 

to shipments being placed on hold until dangerous conditions were 

corrected. The Coast Guard also inspected over 3,600 marine facilities 

to ensure compliance with safety and environmental protection 

regulations. In addition, the Coast Guard conducted over 4,800 

safety and security examinations on vessels operating on the Outer 

Continental Shelf. The Service also investigated over 5,800 reportable 

marine casualties involving commercial vessels.

The Coast Guard ensures the safety of recreational boaters as well as 

commercial mariners. In 2014, the Coast Guard conducted over 43,700 

recreational vessel boardings and issued over 10,500 citations and 

warnings. Efforts to keep boaters safe were also furthered by Coast 

Guard visits to over 400 U.S. boat manufacturers to ensure compliance 

with Federal regulations, provide manufacturers with regulatory 

updates and disseminate boating safety educational materials. 

Maritime prevention

Our BUDGET AT WORK

63,000 

Merchant Mariner credentials 

verified and issued by the 

Coast Guard in 2014.

The Coast Guard ensures a safe maritime 

workforce by screening and providing 

credentials to mariners who work in 

our Nation’s marine transportation 

system. These credentials are issued 

in accordance with guidelines in 

order to show evidence of a mariner’s 

qualifications. The Coast Guard conducts 

background security screenings as 

part of this process, mitigating risk to 

the Nation.
Members of the Coast Guard Cutter 

KATMAI BAY break ice on the St. Marys 

River in northern Michigan at sunset.
USCG

mission

Pro g r a

m

The Marine Transportation System Management program ensures 

a safe, secure, efficient 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 terrorist 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 and champion 

development of the Nation’s marine transportation system. 

In 2014, approximately $1.7 trillion worth of commerce transited 

over 25,000 miles of our Nation’s waterways. The Coast Guard’s 

maintenance of more than 49,000 navigation aids played a critical 

role in facilitating the safe transport of these goods within the 

Marine Transportation System. 

The Coast Guard is leveraging technology to improve safety and 

resilience of the Marine 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 a balanced, 

integrated system where a combination of electronic and physical 

Aids to Navigation improves the overall safety, efficiency and 

resiliency of our waterways. 

The Coast Guard also worked with maritime industry and other 

stakeholders to recognize and address growing cybersecurity risks 

to the Marine Transportation System.

During one of the harshest winters on record in the Great Lakes, 

Coast Guard domestic icebreakers, in concert with the Canadian 

Coast Guard, facilitated the movement of more than 35 million tons 

of bulk cargo and over 20 million barrels of gasoline, diesel and 

heating oil in the ice-laden Great Lakes region.

Our BUDGET AT WORK

35 million Tons of bulk cargo allowed to 

transit the Great Lakes due to the 

Coast Guard in 2014.

The Coast Guard is responsible for 

domestic ice breaking on the Great 

Lakes. The efforts of Coast Guard 

vessels ensure commerce is not halted 

by the effects of ice and weather. 

mariNe transportation

system management
The Maritime Security Operations program encompasses 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 

the other two elements: the establishment and oversight of maritime 

security regimes, and maritime domain awareness. 

Preventing terrorism requires integrated, comprehensive operations 

that maximize effectiveness without duplicating efforts. The Coast 

Guard is a critical component in this effort to safeguard the Marine 

Transportation System. The Service uses its unique authorities, 

competencies, operational capabilities and partnerships to board 

suspect vessels, escort ships that pose a significant risk to our 

ports and waterways, enforce fixed security zones around maritime 

critical infrastructure and key resources and patrol the maritime 

approaches, coasts, ports and rivers of America. In addition, the 

Coast Guard plays a key role in the surge response to known security 

threats and high-profile events. 

To protect the American people from terrorist threats, during 2014, 

the Coast Guard conducted over 19,700 waterborne patrols of 

critical maritime infrastructure, escorted over 1,800 high-capacity 

passenger vessels and conducted over 8,600 security boardings in 

and around U.S ports. 

Our BUDGET AT WORK

32,624 

Maritime Security Response 

Activities conducted in 2014.

Coast Guard efforts to combat terrorism 

and enhance security involve detecting, 

deterring, preventing, disrupting and 

aiding in recovery from terrorist attacks 

and other criminal acts in the maritime 

domain.

Maritime Security Operations

USCG

mission

Pro g r a

m
The Defense Operations program provides 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 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 as 

outlined in the 2008 DOD-DHS Memorandum of Agreement on the Use of 

U.S. Coast Guard Capabilities and Resources in Support of the National 

Military Strategy. The Service directly supports DOD’s theater security 

cooperation efforts by conducting port operations, maritime interception 

operations and training international partners. 

In addition, Coast Guard Patrol Forces Southwest Asia (PATFORSWA) 

supports U.S. military operations in the Middle East with a continued 

maritime humanitarian presence and by providing the U.S. Navy’s 5th

Fleet with combat-ready assets and unique vessel boarding capabilities 

to address maritime threats in the region. 

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 other U.S. or foreign security organizations, 

allowing for greater impact in preventing terrorism abroad.

Our BUDGET AT WORK

71 

DOD directed Rotary Wing Air 

Intercept operational missions 

conducted by the Coast Guard 

in 2014.

The Coast Guard has a leading role in 

the National Capital Region Air Defense 

Force mission providing 24/7 continuous 

airspace protection over the National 

Capital Region. The Coast Guard’s 

efforts to combat terrorism and enhance 

security involve detecting, deterring, 

preventing, disrupting and aiding in 

recovery from terrorist attacks and other 

criminal acts in the maritime domain. 

USCG

mission

Pro g r a

m

defense operations
U.S. Coast Guard Headquarters

washington, d.c.

www.uscg.mil/budget