Order Code RL34275
How Long Can the Defense Department Finance
FY2008 Operations in Advance of Supplemental
Appropriations?
Updated December 10, 2007
Amy Belasco, Stephen Daggett, and Pat Towell
Specialists in Defense Policy and Budgets
Foreign Affairs, Defense, and Trade Division

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How Long Can the Defense Department Finance
FY2008 Operations in Advance of Supplemental
Appropriations?
Summary
The Department of Defense is currently financing both day-to-day peacetime
activities and overseas military operations in Iraq and elsewhere with funds
appropriated in the regular FY2008 Defense Appropriations Act, P.L. 110-116. That
measure provides $460 billion for the Defense Department to cover the costs of
baseline, non-war-related programs in FY2008. The Administration has also
requested $189.3 billion in FY2008 supplemental appropriations for the Department
of Defense to cover war-related costs. Congress has approved $16.8 billion of that
amount, all for Mine Resistant Ambush Protected (MRAP) vehicles. The remainder
has been held up pending debate over Iraq policy.
For the present, action on supplemental funding appears to be at an impasse. On
November 14, the House approved a bill, H.R. 4156, to provide $50 billion in
supplemental appropriations as a temporary “bridge fund” to cover war costs for part
of the year, with a requirement that the President begin withdrawing troops from Iraq.
The Senate rejected cloture on a motion to bring the bill up for debate, however, and
the White House has threatened a veto. There has been no action in Congress to date
on a full-year supplemental.
In the absence of supplemental appropriations, the Defense Department has said
that money for Army operations will run out in mid-February and for the Marine
Corps in March, even after a transfer of $4.1 billion from other accounts to sustain
Army operations. On November 15, Secretary of Defense Gates announced plans to
"cease operations at all Army bases by mid-February next year." This would result,
he said, in furloughs of 100,000 civilian and another 100,000 contractor personnel.
CRS calculates that money in the FY2008 Defense Appropriations Act, together
with planned transfers, will sustain Army and Marine Corps operations about as long
as the Defense Department projects. The Defense Department may be able to extend
operations further by transferring limited additional amounts to the Army and Marine
Corps and by slowing down spending through measures such as those the Army
began to implement last April. With these steps, money would still eventually run
out, but the Army might be able to continue operating until about the end of March,
2008, and the Marine Corps, until the end of April. Such measures would reduce
remaining financial flexibility and might disrupt day-to-day operations. The Defense
Department may be able to sustain operations longer by invoking the Feed and
Forage Act or by using novel, unprecedented measures, such as assigning the Navy
and Air Force to pay costs of Army operations abroad. Such measures may weaken
congressional war powers and erode congressional controls on the use of funds.
This report reviews the status of funding for military operations in advance of
FY2008 supplemental appropriations. It will be updated as events warrant.

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Contents
How Long Regular FY2008 Defense Appropriations Will Last . . . . . . . . . . 1
Effects of H.R. 4156, a $50 Billion “Bridge Fund” . . . . . . . . . . . . . . . . . . . . 2
Alternatives for Extending Operations Longer . . . . . . . . . . . . . . . . . . . . . . . 3
Transfer Additional Funds to the Army and Marine Corps . . . . . . . . . . . . . . 4
Slow the Pace of Army and Marine Corps Operations . . . . . . . . . . . . . . . . . 5
Invoke the Feed and Forage Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Use Unprecedented Title 10 Authorities to Assign Support Operations to
Other Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Pros and Cons of Measures to Extend Operations . . . . . . . . . . . . . . . . . . . . 10
List of Tables
Table 1. Uses of the Feed and Forage Act Since FY1960 . . . . . . . . . . . . . . . . . . 8

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How Long Can the Defense Department
Finance FY2008 Operations in Advance of
Supplemental Appropriations?
The Department of Defense is currently financing both the day-to-day peacetime
operation of U.S. military forces and overseas military operations in Iraq and
elsewhere with funds appropriated in the regular FY2008 Defense Appropriations
Act, P.L. 110-116. That measure provides $460 billion for the Defense Department
to cover the costs of baseline, non-war-related programs in FY2008. The
Administration has also requested $189.3 billion in FY2008 supplemental
appropriations for the Department of Defense to cover war-related costs. Congress
has approved $16.8 billion of that amount, all for Mine Resistant Ambush Protected
(MRAP) vehicles. The remainder has been held up pending debate over Iraq policy.
For the present, action on supplemental funding appears to be at an impasse. On
November 14, the House approved a bill, H.R. 4156, to provide $50 billion in
supplemental appropriations as a temporary “bridge fund” to cover war costs for part
of the year, with a requirement that the President begin withdrawing troops from Iraq.
The Senate rejected cloture on a motion to bring the bill up for debate, however, and
the White House has threatened a veto. There has been no action in Congress to date
on a full-year supplemental.
How Long Regular FY2008 Defense Appropriations Will Last
With enactment of supplemental appropriations in doubt, the immediate issue
has become how soon the Defense Department will have to rein in operations before
it runs out of money. At a press conference on November 15, Secretary of Defense
Gates warned that the Army would run out of money by the beginning of February,
and the Marine Corps some time in March, and he announced measures to limit
spending beginning almost immediately. “The least undesirable” option, he said,
would be to “cease operations at all Army bases by mid-February next year.” This
would result, he said, in furloughs of 100,000 civilian and another 100,000 contractor
personnel. Because some layoffs require 60 days advance notice, he said, the
Pentagon would have to begin sending notifications to personnel in December.1
In the same press conference, Secretary Gates said that the Defense Department
would take steps to extend Army and Marine Corps funding by “reprogramming” or
1 Department of Defense, "DoD News Briefing with Secretary of Defense Gates and
Chairman of the Joint Chiefs of Staff Adm. Mullen from the Pentagon Briefing Room,
Arlington, Va.," November 15, 2007 at
[http://www.defenselink.mil/transcripts/transcript.aspx?transcriptid=4089].

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“transferring” funds.2 On November 20, the Defense Department announced that it
was requesting approval from the congressional defense committees to transfer
$4.5 billion of funds from other accounts to the Army and to the Joint IED Defeat
Organization. The transfers, officials said, would extend Army operations for two
or three weeks.3
CRS calculations of the length of time the Army and Marine Corps can continue
to operate without additional funding are in line with Defense Department estimates.
At issue is how long money in Army and Marine Corps Operation and Maintenance
(O&M) accounts will last at projected obligation rates. The O&M accounts finance
a broad range of activities, including recruitment, training, transportation, clothing,
subsistence, fuel, facility operation and repair, and equipment maintenance. Funding
for Army and Marine Corps O&M supports both peacetime activities and war-related
operations.
For the first few months of the fiscal year, the Army appears to be planning
obligations of about $6.6 billion per month and the Marine Corps of about $800
million per month. The FY2008 Defense Appropriations Act, P.L. 110-116, provides
$27.4 billion in O&M for the Army and $4.8 billion for the Marine Corps. At
planned monthly obligation rates, therefore, the Army can operate with baseline
appropriations for about four months of the fiscal year (which began on in October
1, 2007) or until the beginning of February, and the Marine Corps can operate for
about six months, or until the end of March, consistent with Defense Department
estimates.
Effects of H.R. 4156, a $50 Billion “Bridge Fund”
The House-passed bridge fund, H.R. 4156, would provide $50 billion in
supplemental appropriations for FY2008. This is about one-fourth of the amount the
Administration has requested to cover DOD war costs for all of FY2008. Most of the
money in H.R. 4156, however, $37.5 billion, is for operation and maintenance, of
2 In general a “transfer” of funds is a shift of money from one appropriations account to
another. Because appropriations laws provide specific amounts for each account, a shift of
funds is permissible only to the extent Congress allows a transfer in statutory language. As
part of each appropriations bill, Congress usually specifies that a limited amount may be
transferred, subject to certain conditions. Section 8005 of the FY2008 Defense
Appropriations Act permits DOD to transfer up to $3.7 billion between accounts. This is
referred to as “General Transfer Authority” or “GTA.” In most agencies the term
“reprogramming” refers to shifts of funds within accounts, rather than a “transfer” between
accounts. The Defense Department, however, uses the term “reprogramming” to refer to all
shifts of funds, including those that involve a transfer between accounts. All transfers, along
with reprogramming actions over certain threshold amounts, also require advance approval
by the four congressional defense committees.
3 Department of Defense, “Reprogramming Action – Prior Approval,” Serial No. FY 08-02
PA, November 20, 2007. The proposal decreases Navy and Air Force personnel accounts
by $1.85 billion each, for a total of $3.7 billion, decreases cash balances in the Army
Working Capital Fund by $800 million, increases Army Operation and Maintenance funding
by $4,055.6 million, and increases the Joint Improvised Explosive Device Defeat Fund by
$444.4 million.

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which $27.5 billion is for the Army and $2.4 billion is for the Marine Corps. The
Army O&M total is 50% of the $54.9 billion that the Administration requested in
FY2008 supplemental appropriations for Army operations abroad, and the Marine
Corps total is 52% of the $4.7 billion requested in FY2008 supplemental
appropriations for Marine Corps operations abroad. The additional money for the
Army would extend operations for about four months at the Army’s projected
monthly rate of obligations, or until about the end of May. The additional money for
the Marine Corps would extend operations for about three months at the projected
monthly rate of obligations, or until the end of June.
Alternatives for Extending Operations Longer
In the absence of a bridge fund, the Defense Department may be able to extend
Army and Marine Corps operations beyond February or March, either by adding
money from other sources to O&M accounts or by slowing the pace at which the
services are obligating funds. Barring extensive use of the Feed and Forage Act or
an unprecedented use of provisions of standing law that may allow other services to
pay for Army and Marine Corps operations (see below for a discussion) options
appear limited, and the services may be able to extend operations for an additional
month or two.
Alternatives for extending Army and Marine Corps operations include –
! Transfer limited additional amounts that may be available from cash
balances in working capital funds;
! Slow the pace of Army and Marine Corps obligations of funds, in
part by using means the Army considered in April 2007 and in part
by delaying depot maintenance funding;
! Invoke the Feed and Forage Act, which permits obligations of funds
in advance of appropriations, and for which there are extensive
precedents in the past 40 years; and finally,
! Consider using standing authorities for which there do not appear to
be precedents to limit Army and Marine Corps costs, such as the
authority in 10 USC 165 to assign support operations to other
services.
Each of these alternatives may extend operations for some time, but each has limits
and disadvantages as well.
In the Army’s official view, moreover, all of these kinds of budget maneuvers
are detrimental. In a presentation at the Brookings Institution on December 4, Army
Chief of Staff George Casey complained about any kind of budgetary gamesmanship:
In general, as Chief of Staff of the Army, not having predictable, timely funding
makes it harder for me to do my job: to organize, train and equip the Army.
Every time you put something off or delay it or take some measures to get
another week's worth of funding for the operations and maintenance account, it
has second and third order effects that ricochet all through the organization, that
you don't find the results for two or three months, and it just makes it harder.

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CRS-4
The second thing is I think what's going on right now sends a terrible signal to
soldiers and families. We have nine brigades that are redeploying from Iraq and
Afghanistan right now after being gone for 15 months. They started in
September. They'll come in through January. The notion that people are even
discussing closing down or warm-basing their installations just minimum
essential tasks at a time when they're coming home from being gone for 15
months is very difficult for them.4
Transfer Additional Funds to the Army and Marine Corps
The Defense Department may be able to transfer a limited amount of additional
money to extend Army and Marine Corps operations. DOD already plans, subject
to approval by the congressional defense committees, to transfer $3.7 billion of funds
from Air Force and Navy personnel accounts to the Army and to JIEDDO and to shift
$800 million of cash balances from working capital funds to the Army. The $3.7
billion transfer from the Air Force and the Navy exhausts the total amount of General
Transfer Authority provided by Section 8005 of the FY2008 Defense Appropriations
Act. Additional funds may be available for transfer, however, in cash balances of
working capital funds.
The transfer of excess cash balances in working capital funds is permitted by
Section 8008 of the FY2008 Defense Appropriations Act.5 Working capital funds
are business-like activities of the Defense Department that are funded primarily
through revenues from sales to the military services. Some working capital fund
activities maintain inventories of products that they sell to the services. Others
provide industrial services, such as depot maintenance of equipment. The military
services use appropriated funds, mostly in the operation and maintenance accounts,
to make the purchases. Section 8008 allows the funds to maintain sufficient cash
balances to meet projected requirements for disbursements. Excess cash balances
4 General George William Casey, Jr., Chief of Staff of the Army, "Maintaining Quality in
the Force: a Briefing by General George W. Casey, Jr.," Brookings Institution Transcript,
December 4, 2007, p. 33, on line at [http://www.brookings.edu/~/media/Files/events
/2007/1204_casey/20071204casey.pdf]. The military services have consistently been wary
of budget maneuvers, including Administration steps to use money from later in the year to
finance operations at the start of the year – a practice known as “cash flowing.” Disputes
over the use of cash flowing for the Iraq war began as early as January, 2004. The
Administration decided not to request FY2005 supplemental appropriations until after the
start of calendar year 2005. When senior service leaders expressed concern about that
decision in congressional hearings, DOD Comptroller Dov Zakheim called a press
conference to defend the practice. See Department of Defense, "Defense Department
Special Briefing: Purpose Of Budget Supplementals," February 11, 2004, available on line
at [http://www.defenselink.mil/transcripts/transcript.aspx?transcriptid=2062]. Subsequently
Congress initiated the practice of providing part-of-the year bridge funding when it added
$25 billion in unrequested funds for war related expenses to the FY2005 Defense
Appropriations Act. Later, Congress provided an unrequested bridge fund of $50 billion in
FY2006. The Administration only began to request appropriations for a bridge fund in the
FY2007 budget.
5 Like Section 8005, Section 8008 is a recurring provision in annual defense appropriations
acts.

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CRS-5
may then be available for transfer to other accounts, including service operation and
maintenance accounts.
The amount of excess cash balances varies from fund to fund and from year to
year. So far, the Defense Department has tapped FY2008 excess cash balances twice.
The FY2008 Defense Appropriations Act used $628 million to offset Army, Navy,
Air Force, and Defense-Wide operation and maintenance accounts. And now the
Defense Department is using $800 million for the Army. So about $1.4 billion has
been used.
Pros and Cons. The Government Accountability Office (GAO) has reported
to congressional defense committees that DOD had as much as $3.5 billion in excess
cash balances in the working capital funds at the start of FY2008.6 With $1.4 billion
having been used, another $2.1 billion or so may be available. To tap all of the
remaining funds to finance Army and Marine Corps O&M accounts would extend
operations for a week or two. It would also, however, further reduce DOD’s
remaining financial flexibility to respond to future developments, at least
temporarily. DOD has asked Congress to restore the $3.7 billion in transfers it
requested on November 20, and Congress has, in the past, agreed to forgive amounts
transferred because of delays in making supplemental appropriations.7
Slow the Pace of Army and Marine Corps Operations
To the extent that Army obligations of O&M funds can be reduced below about
$6.6 billion per month, and Marine Corps obligations below $790 million, the
services can operate longer with available funds. Last April, the Army planned a
series of increasingly restrictive limits on activities to be implemented if FY2007
supplemental appropriations were further delayed.8 The Army projected that these
measures could reduce obligations by as much as $3.6 billion over three months out
of FY2007 obligations of about $6 billion per month.9 The Army and Marine Corps
6 CRS calculation based on DOD data provided by GAO analyst by e-mail, November 30,
2007.
7 The Defense Department also opposed House and Senate use of excess cash balances in
the FY2008 defense appropriations bills – see Department of Defense, “Budget Appeal,
FY2008 Defense Appropriations Bill,” #RF-2, October 15, 2007. The appropriations
conference agreement rejected the appeal.
8 Army Memorandum, “Operation and Maintenance, Army Spending Restrictions Plan for
FY07,” April 14, 2007. The text of the Memorandum is available on line at
[http://www.comw.org/warreport/fulltext/0704armyspending.pdf]. See also, Army Press
Release”Funding Needs Prompt Army Spending Constraints,” April 16, 2007, at
[http://www.army.mil/-newsreleases/2007/04/16/2698-funding-needs-prompt-army-
spending-constraints/]. The Army Memorandum is also discussed in CRS Report RL33900,
FY2007 Supplemental Appropriations for Defense, Foreign Affairs, and Other Purposes,
by Stephen Daggett, Amy Belasco, Pat Towell, Susan B. Epstein, Connie Veillette, Curt
Tarnoff, Rhoda Margesson, and Bart Elias, updated July 2, 2007 – see subsection entitled
“Financing Army Operations Until Passage of the Supplemental.”
9 Army Budget Office, PowerPoint Slides entitled “Operation and Maintenance, Army
(continued...)

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may also be able to defer some other funding by, for example, delaying orders for
depot maintenance of equipment, for which the Army plans average obligations of
about $400 million per month in FY2008 – i.e., about $1.6 billion over the first four
months of the year.
Pros and Cons. If implemented over the next four months, these steps might
reduce obligations by as much as $5 billion ($3.6 billion from measures like those
identified last April, plus $1.6 billion from deferring depot maintenance), though less
if they were pursued selectively. This is enough for an additional three weeks or so
of operations. Some of these measures may be less disruptive to the day-to-day
operations of the force than others, particularly if undertaken on only a temporary
basis. The Army reportedly has a depot maintenance backlog of about 7 ½ months,
so there may be some room to defer new orders without disrupting depot work
flows.10 It is uncertain how reduced obligations of funds would affect military
readiness or how disruptive cuts would be to facilities management, civilian and
contractor employment, materiel inventories, equipment orders to industry, DOD
travel, or depot maintenance workloads. Congress may wish to consider these
matters more fully through hearings and other means.
Defense Department officials have said that cuts such as those planned last
spring are not sufficient in the present circumstances because of greater uncertainty
about supplemental funding. In his November 20 press briefing, DOD spokesman
Geoff Morrell insisted that the issue was not simply how to free up money to extend
operations, but, rather, what steps the Defense Department would have to take to
shut down operations almost completely in the absence of funding. “All that will
happen on the [military] bases,” he said, “is that the most basic security and safety
personnel – fire, police, and so forth – will be operating. Day care centers, libraries,
all of the additional benefits that are there for families living on the base will cease
to operate, because we will not have the funds to keep them going.” The steps taken
last spring, he explained, were designed to extend operations on the assumption that
Congress would provide additional appropriations quite soon. Now, however,
defense officials are not coping with a delay in funding, but with a shut off of funds.11
9 (...continued)
Spending Restrictions Will Extend Fund Availability” and “OMA FY07 Execution,” April
2007.
10 E-mail communication from GAO analyst, November 30, 2007.
11 Department of Defense, "DoD News Briefing with Press Secretary Geoff Morrell from
the Pentagon," November 20, 2007 at –
[http://www.defenselink.mil/transcripts/transcript.aspx?transcriptid=4091].

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CRS-7
Invoke the Feed and Forage Act
The Feed and Forage Act, 41 USC 11,12 is a long-standing law, with antecedents
from well before the Civil War,13 that gives the Defense Department authority to
finance some costs of military operations in advance of congressional appropriations.
In the past 40 years, the act has been used periodically to pay for unplanned military
contingencies and to sustain military operations when supplemental appropriations
have been delayed.
The Feed and Forage Act permits the Department of Defense to obligate funds
in advance of appropriations for “clothing, subsistence, forage, fuel, quarters,
transportation, or medical and hospital supplies.” Obligations may not, however,
“exceed the necessities of the current year.” These categories are broad enough to
encompass most activities financed in operation and maintenance accounts. The
“transportation” category, for example, has been interpreted to allow operation of
weapons engaged in combat, including aircraft carrying out bombing missions in
Southeast Asia, and funding of repairs of equipment, including purchases of spare
parts.14 The law does not, however, permit pay of uniformed personnel or purchases
of munitions or other weapons.
When queried about the use of the Feed and Forage Act, Pentagon spokesperson
Geoff Morrell all but dismissed its potential use except in extraordinary
circumstances –
we have extraordinary measures that can be taken in the eventuality that we find
ourselves in a situation where we have no money – and no ability to move funds
and we find ourselves with our men and women in uniform in the theater
potentially unfunded. But all that we would be able to do in those circumstances
is provide – is basically provide for their survival. It’s a “Feed and Forage”
provision. It dates back before the Civil War. And it will allow us, really, just
to provide for their feed and that’s it. So it’s an extraordinarily desperate
situation. We are not there yet. We are not talking about invoking that yet.15
The Feed and Forage Act has been used in the past in circumstances quite
similar to those today. It has been used, for instance, to sustain major military
12 It is also frequently cited as Revised Statute 3732. The “Feed and Forage Act” as codified
in 41 USC 11 is an express exception to the “Adequacy of Appropriations Act,” which states
that “No contract or purchase on behalf of the United States shall be made, unless the same
is authorized by law or is under an appropriation adequate to its fulfillment.”
13 Louis Fisher, Presidential Spending Power (Princeton: Princeton University Press, 1985),
pp. 238-247. The author cites one precedent as early as 1799 – see p. 240.
14 CRS has prepared an extensive compilation of background material, much of it provided,
by the Department of Defense Comptroller, on uses of the Feed and Forage Act since 1960,
on its history, and on associated issues, including war powers. Congressional staff and
Members of Congress should contact Stephen Daggett at CRS for a copy.
15 Department of Defense, “DoD News Briefing with Press Secretary Geoff Morrell from
the Pentagon,” November 20, 2007 at
[http://www.defenselink.mil/transcripts/transcript]. aspx?transcriptid=4091.

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operations, including combat operations in Southeast Asia in the 1960s and
transportation of personnel to the Persian Gulf during Operation Desert Shield/Desert
Storm, when appropriated funds were not sufficient. Table 1 summarizes uses of the
Feed and Forage Act since 1960. As the table shows, when amounts are adjusted to
today’s prices, the Feed and Forage Act has been invoked to finance quite substantial
obligations of funds – in FY1968, for example, during the Vietnam War, when, in
FY2008 prices, $7.4 billion was used and in FY1991, for Operation Desert
Shield/Desert Storm, when $2.6 billion was used.
Table 1. Uses of the Feed and Forage Act Since FY1960
(amounts in millions of current year and constant FY2008 dollars)
Current
Constant
Fiscal
Year
FY2008
Year
Dollars
Dollars
1962
Berlin Airlift
53
441
1966
Southeast Asia
277
1,943
Southeast Asia: Late enactment of supplemental
1968
appropriations
1,136
7,427
Southeast Asia: Late enactment of supplemental
1969
appropriations
4
23
1972
Southeast Asia
137
700
Escalating foreign currency rates: Late enactment
1978
of supplemental appropriations
80
252
1980
Middle East oil crisis
664
1,719
1991
Gulf War
1,642
2,562
1994
Haiti
126
185
1996
Saudi Arabia Khobar Towers*
–
–
2001
Terrorist Attacks of 9/11/01*
–
–
Source: Current year dollars figures from Department of Defense Comptroller, constant dollar totals
calculated by CRS using deflators from Department of Defense Comptroller.
*Note: The act was invoked in 1996 following the Khobar Towers bombing in Saudi Arabia and in
2001 just after the attacks of 9/11, but no funds were used.
Pros and Cons. The Feed and Forage Act gives the Department of Defense
considerable flexibility to mobilize funding for military operations in the event of
unexpected developments. The potential use of substantial amounts to carry on
combat operations, particularly if Congress has denied or refused to act on funding
for a war, may be of concern to Congress because of its implications for
congressional war powers, including the power of the purse. During the Vietnam
war, use of the Feed and Forage Act ignited a vigorous debate over war powers
issues. In 1973 Senators Mathias and Church sponsored hearings on the law, and in
1974 and 1975, Senator Abourezk proposed repealing the act because, he argued, it
eroded congressional authority.16 Use of the Feed and Forage Act under current
16 John P. MacKenzie, “Pentagon Use of 1861 Law Scored,” Washington Post, September
(continued...)

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circumstances may warrant similar concerns. Unless Congress were to enact
language restricting funding for Iraq “in this or any other act,” use of funding under
the Feed and Forage Act would not appear to be subject to any limitations.
The act has other has limitations as well. Significantly, while the act permits the
Defense Department to obligate funds (i.e., sign contracts or hire civilian personnel),
in DOD’s interpretation, it does not permit actual expenditures (i.e., outlays) of funds
without congressional appropriations.17 This would require contractors to agree,
likely with some compensation, to contracts that might delay actual payments. In
effect, the law allows the Defense Department to obligate Congress to provide what
are known as “deficiency appropriations,” which were quite frequently enacted up
until the 1950s, but have not been used often since then. The enactment of deficiency
appropriations may, however, be delayed.
Use Unprecedented Title 10 Authorities to Assign Support
Operations to Other Services
While the use of the Feed and Forage Act has an extensive history, there are
some other authorities in standing law that might be used to extend Army and Marine
Corps operations, but for which CRS is not aware of any precedents. One such
provision is 10 USC 165. Title 10 U.S. Code is the standing law that establishes the
Department of Defense and includes most of the statutory language that governs its
organization and operations. Section 165 ( c) specifically permits the Secretary of
Defense to assign responsibility for administration and support of forces assigned to
combatant commands (including the Central Command responsible for operations
in Iraq and Afghanistan), to other components of the Defense Department. The term
“components” includes the active duty element of each military service, as well as
each of the reserve elements, as well as defense agencies. The full text of the
provision reads –
( c) Assignment of Responsibility to Other Components of DOD.— After
consultation with the Secretaries of the military departments, the Secretary of
Defense may assign the responsibility (or any part of the responsibility) for the
administration and support of forces assigned to the combatant commands to
other components of the Department of Defense (including Defense Agencies
and combatant commands). A component assigned such a responsibility shall
discharge that responsibility subject to the authority, direction, and control of the
Secretary of Defense and subject to the authority of commanders of the
combatant commands under section 164 ( c) of this title.
16 (...continued)
30, 1973, p. 4. Remarks of Senator Abourezk, Congressional Record, June 5, 1975, pp.
S17367-17369. Remarks of Senator Abourezk, Congressional Record, June 3, 1974, pp.
S9417-S9422. Congressional concern about the act was piqued particularly when
then-Secretary of Defense Melvin Laird asserted in congressional testimony that the Defense
Department could use authority of the "deficiency authorization legislation," meaning the
Feed and Forage Act, to continue military operations in Southeast Asia in the absence of
appropriations for the war – see MacKenzie article.
17 See, Department of Defense Comptroller, “Budget Execution Flexibility, FY2007,” at
[http://www.defenselink.mil/comptroller/execution/Final_Budget_Execution.pdf], p. 19.

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Pros and Cons. On its face, 10 USC 165 ( c) would appear to allow the
Defense Department considerable latitude to assign management and budget
responsibility to the Air Force and Navy for such support activities as food and
housing services handled by civilian contractors under what are know as LOGCAP
contracts, for which $6.2 billion is requested in FY2008; contracts for linguists, for
which $1.1 billion is requested; subsistence for DOD civilians and contractors, for
which $675 million is requested; or other war support activities. The Secretary also
has authority to detail civilian personnel from one service to another as part of his
general responsibility for managing the Department, so Army personnel currently
managing these contracts could be detailed to another service to ensure continuity.18
Since Air Force and Navy O&M budgets are less limited than Army and Marine
Corps budgets, this would further extend the amount of time the Army and Marine
Corps could operate without FY2008 supplemental funding. The FY2008 Defense
Appropriations Act provides $32.2 billion for Air Force O&M and $33.1 billion for
Navy O&M. If the Air Force and Navy were each assigned responsibility for $5
billion of activities currently handled by the Army, it would extend Army operations
by a month-and-a-half, while funding for Air Force and Navy operations would be
reduced by about two months.
Since the use of this provision is unprecedented, it is not known whether a shift
of responsibilities could quickly and efficiently be implemented. Use of this
authority might also be a matter of considerable concern to Congress, since it would
appear to undermine congressional limitations on the use of funds. If the Navy can
support Army operations with large amounts of money, then the integrity of the
account structure into which Congress appropriates money is clearly at issue.
Pros and Cons of Measures to Extend Operations
The Defense Department has warned that money available to sustain Army and
Marine Corps operations will run out in February or March, and CRS calculations are
consistent with this projection. The Defense Department may be able to extend
military operations further by transferring limited additional amounts to the Army
and Marine Corps and by slowing down operations, but each alternative has some
disadvantages.
! Excess cash balances remaining in working capital funds might be
as high as $2.1 billion. Tapping these funds would, however, reduce
DOD’s remaining flexibility to respond to unexpected
developments.
! The Army projected that measures it planned to slow down
operations last April might, at the upper limit, avoid $3.6 billion or
so of obligations over three months. Some of these measures,
however, may disrupt day-to-day Army operations.
! Deferring new orders for depot maintenance might reduce planned
obligations by $400 million or so per month, or about $1.6 billion
18 See Title 5, Section 3341 and Title 10, Sec. 113 (d).

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CRS-11
over four months. CRS cannot, however, assess how this would
affect depot work planning.
Taken together, all of these measures might temporarily reduce or offset Army
and Marine Corps funding requirements by as much as $2.1 billion (use remaining
excess cash balances in working capital funds) + $3.6 billion (slow operations) +
$1.6 billion (defer new depot maintenance orders) = $7.3 billion, or about one
month's worth of funding at current obligation rates, which would allow the Army
to extend operations until about the end of March, 2008, and the Marine Corps until
about the end of April.
A potentially more significant source of funds may be to invoke the Feed and
Forage Act. In the past, it has been used to finance as much as $7.4 billion of
war-related operations in today's prices. That amount would finance Army and
Marine Corps operations for about another month. Operations might be sustained
longer if larger amounts were used. There may be some problems negotiating
contracts, however. And use of the Feed and Forage Act raises significant war
powers issues. For Congress to recommend use of the Feed and Forage Act appears
particularly ironic – it is, in a sense, to write the script for the Executive Branch to
evade legislative restrictions on the use of funds to carry on the war in Iraq.
The potential for DOD to use unprecedented measures, such as the flexibility
given to the Secretary of Defense to reassign responsibility for support activities to
other services, is particularly hard to assess. It might be difficult to administer, or it
might involve only paper changes that could be implemented quickly. It would
appear, however, to undermine congressional controls on the use of funds.

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