About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (January 22, 2021)

handle is hein.crs/govebqx0001 and id is 1 raw text is: Congressional Research Service Inforrning the legislative debate since 1914 0 Updated January 22, 2021 Defense Primer: DOD Transfer and Reprogramming Authorities In provisions of the U.S. Code and typically 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. Background 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 7000.14-R (FMR) requires some reprogramming actions to be approved by certain congressional committees. Transfer Authorities 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, or OCO, under Special Transfer Authority, or STA. General Transfer Authority. Section 8005 of the Department of Defense Appropriations Act, 2021 (Division C of P.L. 116-260) 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 FY2021 (NDAA; P.L. 116- 283) is the accompanying authorizing language. Special Transfer Authority. Section 9002 of the FY2021 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 1512, Special Transfer Authority, of the FY2021 NDAA is the accompanying authorizing language. See Figure 1. Figure I. DOD General and Special Transfer Authority Limits, FY20 19-FY2021 (in billions of dollars of budget authority) $6.0 $600 $.60 Total $600 -0 Authority Special Authority ,.¢1 A tort i'ty 2019 2020 2021 Sources: FY2019-FY2021 defense appropriations acts (P.L. 115-245, P.L. 116-93, and P.L. 116-260). Separate reprogramming authorities and processes are used for military construction and family housing appropriations and for National Intelligence Program/Military Intelligence Program appropriations. Types of Reprogramming Actions The Office of the Under Secretary of Defense-Comptroller (OUSD-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 tps://crsreports.congress.qo

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most