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handle is hein.crs/govzzd0001 and id is 1 raw text is: Congressional Research Service ~Informing the legislative debate since 1914 0 June 7, 2019 Defense Primer: DOD Transfer and Reprogramming Authorities In the United States Code and annual 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. This primer focuses on authorities provided in the fiscal year ending September 30, 2018. Background The ability to transfer or reprogram funds provides DOD with flexibility to respond to unanticipated budgetary or national security needs. 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 choose to address such scenarios by enacting supplemental appropriations or rescissions; DOD may respond by using authorities provided by Congress to transfer or reprogram funds. Title 10, Section 2214, of the United States Code states authority provided in an appropriation Act allows DOD 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 the authority to a higher priority item, based on unforeseen military requirements, and prohibits its use for an item for which Congress has denied funds. It also requires the Secretary of Defense (SECDEF) to promptly notify Congress of each transfer made under such authority. Other notification requirements may reside in specific provisions of DOD appropriations. In addition to these notification requirements, DOD Financial Management Regulation (FMR) requires some reprogramming actions to be approved by certain congressional committees. Transfer Authorities In recent years, defense authorization and appropriations acts have included transfer authority of a certain amount for a general purpose and additional amounts for specific purposes. For example, the authorizing legislation, as well as FMR and DOD budget execution documents, makes a distinction between general transfer authority and special transfer authority. General Transfer Authority. Section 8005 of the FY2018 defense appropriations act (P.L. 115-141) allows the Secretary of Defense, with the approval of the Office of Management and Budget, to transfer up to $4.25 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 FY2018 National Defense Authorization Act (NDAA; P.L. 115-91) is the accompanying authorizing language. See Figure 1. (Separate reprogramming authorities and processes are used for military construction and family housing appropriations and for National Intelligence Program/Military Intelligence Program appropriations.) Figure I. DOD General Transfer Authority, FY2016-FY2018 In billions of dollars of budget authority Total $4.50 $4.50 $4.25- Authority QAuthority - Remaining $.6 - Authority Used FY2016 FY2017 FY2018 Does not include the transfer o FY2016-FY2018 funds executed in FY2019; general transfer authority limits derived from FY2016-FY2018 defense 2ppropriations bills. Sources: FY20 I 6-FY20 18 defense appropriations acts (P.L. 114-113, P.L. 115-31, and P.L. 115-141); email from the Office of the Under Secretary of Defense (Comptroller), June 6, 2019. Note: Amounts exclude Military Personnel adjustments. Special Transfer Authority. Section 9002 of the FY2018 defense appropriations act allows the SECDEF to transfer up to $2.25 billion in Overseas Contingency Operations (OCO) funding between the appropriations or funds made available in Title IX of the act. Section 1512 of the FY2018 NDAA is the accompanying authorizing language. Reprogramming Action Types The Office of the Under Secretary of Defense-Comptroller (OSD-C) describes reprogramming as a change in the https:!icrsreports co ness

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