Section 809 Panel - Recommendation #57 - Modify Fiscal Law to Extend the Duration of when Funds Cancel from 5 Years to 8 Years in Expired Status to Align Program Acquisitions with Funding Periods and Prevent Putting Current Funds at Risk and to Support Meeting Appropriation Intent

Abstract

Since the early 1990s, when Congress enacted the 5-year time limit on expired funds, Department of Defense (DoD) weapon systems and the methods used to contract for them have become more complex. By law, DoD has set periods within which it is required to obligate and disburse appropriated funds, referred to here as fund periods (obligation period based on the type of appropriation/expiration period of 5 years/cancelation). Updating the time of expired funds from 5 years to 8 years would align the fund periods with how programs are contracted, executed, and closed out.