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1 1 (February 14, 2020)

handle is hein.crs/govcadl0001 and id is 1 raw text is: &~ ~ riE SE .$rCh &~ ~ ~ Updated February 14, 2020 Defense Primer: DOD Transfer and Reprogramming Authorities In provisions of the U.S. Code and on an annual basis through authorization and appropriations acts, Congress provides the Department of Defense (DOD) limited authority to obligate funds for purposes other than originally approved. These authorities allow the department to transfer or reprogram funds. A transfer involves shifting funds from one appropriations account to another, while a reprogramming involves shifting funds within the same account. DOD uses the term reprogramming action to describe both types of transactions. The ability to transfer or reprogram funds provides DOD with flexibility to respond to unanticipated budgetary or national security conditions. Changes in financial or operational circumstances can generate costs or savings for the department. For example, costs may arise from the need to replenish expended munitions, expand combat medical training, or cover a price increase that exceeds the budgeted amount for a weapon system. Savings may accrue from military recruitment shortfalls, canceled programs or renegotiated contracts, or favorable fluctuations in foreign exchange rates, fuel prices, or inflation. Congress may address such scenarios by enacting supplemental appropriations or rescissions; DOD may respond by using limited statutory authorities to transfer or reprogram funds. Title 10, Section 2214, of the United States Code generally covers transfers within DOD whenever authority is provided in an appropriation Act to transfer amounts in working capital funds or to transfer amounts provided in appropriation Acts for military functions of the Department of Defense (other than military construction). The statute limits use of transfers or reprogrammings to a higher priority item, based on unforeseen military requirements, and prohibits their use for an item for which Congress has denied funds. The statute also requires the Secretary of Defense (SECDEF) to promptly notify Congress of each transfer made under such authority. Other notification requirements reside in specific appropriations provisions. In addition to these statutory notification requirements, the DOD Financial Management Regulation (FMR) requires some reprogramming actions to be approved by certain congressional committees. In recent years, defense authorization and appropriations acts have included separate provisions that permit DOD to transfer a certain amount of funding from the base budget (under General Transfer Authority, or GTA) and an additional amount of funding designated for Overseas Contingency Operations (under Special Transfer Authority, or STA). General Transfer Authority. Section 8005 of the Department of Defense Appropriations Act, 2020 (Division A of P.L. 116-93) allows the Secretary of Defense, with the approval of the Office of Management and Budget, to transfer up to $4 billion of funds made available in this Act ... for military functions (except military construction) between such appropriations or funds or any subdivision. Section 1001, General Transfer Authority, of the National Defense Authorization Act for FY2020 (NDAA; P.L. 116- 92) is the accompanying authorizing language. Special Transfer Authority. Section 9002 of the FY2020 defense appropriations act allows the SECDEF to transfer up to $2 billion of OCO funding between the appropriations or funds made available in Title IX of the act. Section 1520A, Special Transfer Authority, of the FY2020 NDAA is the accompanying authorizing language. See Figure 1. Figure I. DOD General and Special Transfer Authority Limits, FY2018-FY2020 Totai $6.........00 $6.00 Authorty ..............4uthority • ........................,iiiii i iiiiii .................iiii ..................utho il5 .................., ...... ............ ..... ............. ........................., ...... .................. ,.................. ... .. ...... .. 2518 2Si9 2028 Sources: FY201I8-FY2020 defense appropriations acts (PiL. I I 5-141, PiL. 11 5-245, and PiL. 11 6-93). Separate reprogramming authorities and processes are used for military construction and family housing appropriations and for National Intelligence Program/Military Intelligence Program appropriations. The Office of the Under Secretary of Defense-Comptroller (0USD-C) describes reprogramming as a change in the application of funds. According to the department, types of reprogramming actions can include the following: Prior-Approval (PA). Reprogramming actions that require prior approval from the chairman and the ranking member of the House Appropriations Committee (HAC), House Armed Services Committee (HASC), Senate Appropriations Committee (SAC), and Senate Armed K~:> p\w -- , gnom goo mppm qq\ a , q 'S I 11LULANJILiN,

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