Appropriation Categories are specific classifications of government funding used to allocate resources for various defense programs. These categories are established by Congress to ensure that funds are used efficiently and effectively.
Key Appropriation Categories in the Department of Defense
- Research, Development, Test, and Evaluation (RDT&E):
- Funds research and development efforts for new weapons systems, technologies, and equipment.
- Covers costs associated with testing and evaluation, including initial operational testing and evaluation (IOT&E) and live-fire testing and evaluation (LFT&E).
- Typically available for two years.
- Procurement:
- Funds the production of military equipment, including aircraft, missiles, ships, and ammunition.
- Covers costs associated with low-rate initial production (LRIP) and the delivery of operational systems.
- Generally available for three years, with ships often having a five-year availability period.
- Operation and Maintenance (O&M):
- Funds the day-to-day operations of the military, including salaries, travel, training, maintenance, and base operations.
- Available for one year.
- Military Personnel (MILPERS):
- Funds salaries and benefits for active-duty military personnel, as well as retired military personnel and reserve forces.
- Available for one year.
- Military Construction (MILCON):
- Funds major construction projects, such as bases, facilities, and housing.
- Typically available for five years.
How Appropriation Categories Work
Congress authorizes expenditures through appropriations acts, which specify the amount of funding allocated to each category. These funds are then distributed to the various branches of the military and defense agencies.
Treasury Index Codes are two-digit codes assigned to each appropriation category to further identify specific funding accounts.
The Role of the DoD Financial Management Regulation (FMR)
The DoD FMR provides guidance on the formulation and submission of budget requests to the Office of the Secretary of Defense (OSD). It outlines the specific criteria for allocating funds to different appropriation categories.
By understanding these appropriation categories, we can better appreciate the complexities of defense budgeting and the importance of congressional oversight in ensuring that taxpayer dollars are used wisely.