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Updated February 14, 2020
Defense Primer: DOD Transfer and Reprogramming
Authorities
In provisions of the U.S. Code and on an annual basis
General Transfer Authority. Section 8005 of the
through authorization and appropriations acts, Congress
Department of Defense Appropriations Act, 2020 (Division
provides the Department of Defense (DOD) limited
A of P.L. 116-93) allows the Secretary of Defense, with the
authority to obligate funds for purposes other than
approval of the Office of Management and Budget, to
originally approved. These authorities allow the department
transfer up to $4 billion of “funds made available in this
to transfer or reprogram funds. A transfer involves shifting
Act ... for military functions (except military construction)
funds from one appropriations account to another, while a
between such appropriations or funds or any subdivision.”
reprogramming involves shifting funds within the same
Section 1001, “General Transfer Authority,” of the National
account. DOD uses the term reprogramming action to
Defense Authorization Act for FY2020 (NDAA; P.L. 116-
describe both types of transactions.
92) is the accompanying authorizing language.
Background
Special Transfer Authority. Section 9002 of the FY2020
The ability to transfer or reprogram funds provides DOD
defense appropriations act allows the SECDEF to transfer
with flexibility to respond to unanticipated budgetary or
up to $2 billion of OCO funding “between the
national security conditions. Changes in financial or
appropriations or funds” made available in Title IX of the
operational circumstances can generate costs or savings for
act. Section 1520A, “Special Transfer Authority,” of the
the department. For example, costs may arise from the need
FY2020 NDAA is the accompanying authorizing language.
to replenish expended munitions, expand combat medical
See Figure 1.
training, or cover a price increase that exceeds the budgeted
amount for a weapon system. Savings may accrue from
Figure 1. DOD General and Special Transfer
military recruitment shortfalls, canceled programs or
Authority Limits, FY2018-FY2020
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
Sources: FY2018-FY2020 defense appropriations acts (P.L. 115-141,
denied funds. The statute also requires the Secretary of
P.L. 115-245, and P.L. 116-93).
Defense (SECDEF) to “promptly notify” Congress “of each
transfer made under such authority.” Other notification
Separate reprogramming authorities and processes are used
requirements reside in specific appropriations provisions.
for military construction and family housing appropriations
and for National Intelligence Program/Military Intelligence
In addition to these statutory notification requirements, the
Program appropriations.
DOD Financial Management Regulation (FMR) requires
some reprogramming actions to be approved by certain
Types of Reprogramming Actions
congressional committees.
The Office of the Under Secretary of Defense-Comptroller
Transfer Authorities
(OUSD-C) describes reprogramming as “a change in the
application of funds.” According to the department, types of
In recent years, defense authorization and appropriations
reprogramming actions can include the following:
acts have included separate provisions that permit DOD to
transfer a certain amount of funding from the base budget
Prior-Approval (PA). Reprogramming actions that require
(under General Transfer Authority, or GTA) and an
prior approval from the chairman and the ranking member
additional amount of funding designated for Overseas
of the House Appropriations Committee (HAC), House
Contingency Operations (under Special Transfer Authority,
Armed Services Committee (HASC), Senate
or STA).
Appropriations Committee (SAC), and Senate Armed
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Defense Primer: DOD Transfer and Reprogramming Authorities
Services Committee (SASC). Prior-approval
reprogramming action), due prior to June 30 each year. The
reprogramming actions:
latter is intended to streamline the process for the
increase procurement quantity of a major end item (e.g.,
committees and DOD. Typically, the committees either
aircraft, missile, naval vessel);
approve, deny, or adjust the requested amounts before DOD
transfers or reprograms funds. See Figure 2.
involve congressional special interest items;
use general or special transfer authority;
Figure 2.DOD Process for Prior Approval
exceed established thresholds (see the “Below Threshold
Reprogramming Actions
Reprogramming” heading below);
establish a new program or cancel an existing one; or
use 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:
reclassify funds to a different line item, program element, or
appropriation without changing the substance of the program;
use 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
reflect approval to increase procurement quantities for major
end items not requiring prior approval of the congressional
defense committees.
Below Threshold Reprogramming (BTR). Minor
Source: CRS based on DOD 7000.14-R FMR.
reprogramming actions that do not require congressional
approval because they do not meet certain dollar thresholds.
OUSD-C also submits to the committees a quarterly report
The FY2020 defense appropriations act explanatory
(DD Form 1416) on the status of certain reprogramming
statement set a $10 million threshold for reprogramming
actions.
funds within the following appropriation titles:
Issue for Congress
Military Personnel;
While DOD regulation requires congressional prior
Operation and Maintenance;
approval of certain reprogramming actions, the department
Procurement; and
does not view the requirement as legally binding. The
Research, Development, Test, and Evaluation.
ability of Congress to create legally binding prior approval
requirements on reprogramming actions may be limited by
Letter Transfer (LTR). Reprogramming actions that are
the 1983 U.S. Supreme Court case Immigration and
used to process congressionally directed transfers, such as
Naturalization Service (INS) v. Chadha. Some observers
transfers from the Defense Health Program to the
may view approval requirements as practically binding,
Department of Veterans Affairs.
however, because the annual appropriations process
Process
provides a means for Congress to impose sanctions on
violations of comity and trust.
Section 8007 of the FY2020 defense appropriations act
directs DOD to submit a report (DD Form 1414) to the
congressional committees within 60 days after enactment to
Selected References
establish a baseline against which the department can
10 U.S.C. 2214, Transfer of funds: procedure and limitations
transfer or reprogram funds. The baseline reflects
DOD 7000.14-R, Financial Management Regulation (FMR),
adjustments since the initial appropriation, to include
Volume 3, Chapter 6, September 2015
rescissions, supplemental appropriations, and approved
reprogramming actions to date. The provision prohibits
CRS Report R43098, Transfer and Reprogramming of
DOD from reprogramming or transferring funds until the
Appropriations: An Overview of Authorities, Limitations, and
report is submitted to the congressional committees, unless
Procedures
the SECDEF certifies that the action is an emergency
requirement. For internal reprogramming actions, OUSD-C
notifies the committees using DD Form 1415-3. For prior-
Acknowledgment: This primer was originally co-authored
approval reprogramming actions, OUSD-C typically
by Aaron D. Walenga, a former National Defense Fellow
submits to the committees DD Form 1415-1 in one of two
with CRS.
ways: (1) as needed for specific requirements, usually on a
monthly basis, and (2) as part of a single request for
Brendan W. McGarry, Analyst in US Defense Budget
multiple reprogramming actions (known as an omnibus
IF11243
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Defense Primer: DOD Transfer and Reprogramming Authorities
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