https://crsreports.congress.gov
Updated December 21, 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 and an additional amount
of funding designated for Overseas Contingency
Operations, or OCO, under Special Transfer Authority.
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 related 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 related authorizing language. See
Figure 1.
Figure 1. DOD General and Special Transfer
Authority Limits, FY2019-FY2021
(in billions of dollars of budget authority)
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
