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June 7, 2019
Defense Primer: DOD Transfer and Reprogramming
Authorities
In the United States Code and annual authorization and
as FMR and DOD budget execution documents, makes a
appropriations acts, Congress provides the Department of
distinction between general transfer authority and special
Defense (DOD) limited authority to obligate funds for
transfer authority.
purposes other than originally approved. These authorities
General Transfer Authority. Section 8005 of the FY2018
allow the department to transfer or reprogram funds. A
defense appropriations act (P.L. 115-141) allows the
transfer involves shifting funds from one appropriations
Secretary of Defense, with the approval of the Office of
account to another, while a reprogramming involves
Management and Budget, to transfer up to $4.25 billion of
shifting funds within the same account. DOD uses the term
“funds made available in this Act ... for military functions
reprogramming action to describe both types of
(except military construction) between such appropriations
transactions. This primer focuses on authorities provided in
or funds or any subdivision.” Section 1001, “General
the fiscal year ending September 30, 2018.
Transfer Authority,” of the FY2018 National Defense
Background
Authorization Act (NDAA; P.L. 115-91) is the
accompanying authorizing language. See Figure 1.
The ability to transfer or reprogram funds provides DOD
(Separate reprogramming authorities and processes are used
with flexibility to respond to unanticipated budgetary or
for military construction and family housing appropriations
national security needs. Changes in financial or operational
and for National Intelligence Program/Military Intelligence
circumstances can generate costs or savings for the
Program appropriations.)
department. For example, costs may arise from the need to
replenish expended munitions, expand combat medical
Figure 1. DOD General Transfer Authority,
training, or cover a price increase that exceeds the budgeted
FY2016-FY2018
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
Sources: FY2016-FY2018 defense appropriations acts (P.L. 114-113,
transfer made under such authority.” Other notification
P.L. 115-31, and P.L. 115-141); email from the Office of the Under
requirements may reside in specific provisions of DOD
Secretary of Defense (Comptrol er), June 6, 2019.
appropriations.
Note: Amounts exclude Military Personnel adjustments.
In addition to these notification requirements, DOD
Special Transfer Authority. Section 9002 of the FY2018
Financial Management Regulation (FMR) requires some
defense appropriations act allows the SECDEF to transfer
reprogramming actions to be approved by certain
up to $2.25 billion in Overseas Contingency Operations
congressional committees.
(OCO) funding “between the appropriations or funds” made
Transfer Authorities
available in Title IX of the act. Section 1512 of the FY2018
NDAA is the accompanying authorizing language.
In recent years, defense authorization and appropriations
acts have included transfer authority of a certain amount for
Reprogramming Action Types
a general purpose and additional amounts for specific
The Office of the Under Secretary of Defense-Comptroller
purposes. For example, the authorizing legislation, as well
(OSD-C) describes reprogramming as “a change in the
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Defense Primer: DOD Transfer and Reprogramming Authorities
application of funds.” According to the department, types of
requirement. For internal reprogramming actions, OSD-C
reprogramming actions can include the following:
notifies the committees using DD Form 1415-3. For prior-
approval reprogramming actions, OSD-C typically submits
Prior-Approval (PA). Reprogramming actions that require
to the committees DD Form 1415-1 in one of two ways: (1)
prior approval from the chairman and the ranking member
as needed for specific requirements, usually on a monthly
of the House Appropriations Committee (HAC), House
basis, and (2) as part of a single request for multiple
Armed Services Committee (HASC), Senate
reprogramming actions due prior to June 30 each year. The
Appropriations Committee (SAC), and Senate Armed
latter is intended to streamline the process for the
Services Committee (SASC). Prior-approval
committees and DOD. Typically, the committees either
reprogramming actions can involve the following:
approve, deny, or adjust the requested amounts before DOD
increasing procurement quantity of a major end item (e.g.,
transfers or reprograms funds. See Figure 2.
aircraft, missile, naval vessel);
involving congressional special interest items;
Figure 2.DOD Process for Prior Approval
Reprogramming Actions
using general or special transfer authority;
exceeding established thresholds (see the “Below Threshold
Reprogramming” heading below);
establishing a new program or canceling an existing one; or
using proceeds to replace certain items sold from inventory.
Internal Reprogramming (IR). Actions that do not require
congressional approval and that are used to move funds
without changing their purpose or congressional intent.
Internal reprogramming actions can involve the following:
reclassifying funds to a different line item, program element, or
appropriation without changing the substance of the program;
using transfer authority to execute funds from designated
transfer accounts (e.g., Environmental Restoration accounts;
Drug Interdiction and Counter-Drug Activities, Defense;
Overseas Contingency Operations Transfer Fund; Foreign
Currency Fluctuations, Defense); and
reflecting approval to increase procurement quantities for
major end items not requiring prior approval of the
congressional defense committees.
Source: CRS based on DOD 7000.14-R FMR.
Below Threshold Reprogramming (BTR). Minor
reprogramming actions that do not require congressional
Issue for Congress
approval because they do not meet certain dollar thresholds.
While DOD regulation requires congressional prior
The explanatory statement accompanying the FY2018
approval of certain reprogramming actions, the department
defense appropriations act included the following
does not view the requirement as legally binding. The
thresholds:
ability of Congress to create legally binding prior approval
$10 mil ion for military personnel;
requirements on reprogramming actions may be limited by
the 1983 U.S. Supreme Court case Immigration and
$20 mil ion for operation and maintenance;
Naturalization Service (INS) v. Chadha. Some observers
$20 mil ion for procurement; and
may view approval requirements as practically binding,
$10 mil ion for research, development, test, and evaluation.
however, because the annual appropriations process
provides a means for Congress to impose sanctions on
Letter Transfer (LTR). Reprogramming actions that are
violations of comity and trust.
used to process congressionally directed transfers, such as
transfers from the Defense Health Program to the
Department of Veterans Affairs.
Selected References
10 U.S.C. 2214, Transfer of funds: procedure and limitations
Process
DOD 7000.14-R, Financial Management Regulation (FMR),
Section 8007 of the FY2018 defense appropriations act
Volume 3, Chapter 6, September 2015
directs the DOD to submit a report (DD Form 1414) to the
congressional committees within 60 days after enactment to
CRS Report R43098, Transfer and Reprogramming of
establish a baseline against which the department can
Appropriations: An Overview of Authorities, Limitations, and
transfer or reprogram funds. The baseline reflects
Procedures
adjustments since the initial appropriation, to include
rescissions, supplemental appropriations, and approved
reprogramming actions to date. Section 8007 prohibits
Aaron D. Walenga, National Defense Fellow
DOD from reprogramming or transferring funds until the
Brendan W. McGarry, Analyst in US Defense Budget
report is submitted to the congressional committees, unless
the SECDEF certifies that the action is an emergency
IF11243
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Defense Primer: DOD Transfer and Reprogramming Authorities
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