Title 10Armed ForcesRelease 119-73

§126 Transfer of funds and employees

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART I— - ORGANIZATION AND GENERAL MILITARY POWERS › Chapter CHAPTER 3— - GENERAL POWERS AND FUNCTIONS › § 126

Last updated Apr 6, 2026|Official source

Summary

When a job, duty, or activity moves from one Defense department or agency to another inside the Department of Defense, the Secretary of Defense can pick any leftover funds that are available and needed for that work. With the President’s approval, those funds can move to the department or agency that will do the work. The money must still be used for the same kinds of things it was meant for. The funds can go into an existing spending account of the receiving office or into a new account at the Treasury Department. The Secretary can also move civilian employees who are needed to do the transferred work, again with the President’s approval. The sending office’s authorized number of civilian employees is reduced by how many move, and the receiving office’s authorized number is increased by that same amount.

Full Legal Text

Title 10, §126

Armed Forces — Source: USLM XML via OLRC

(a)When a function, power, or duty or an activity of a department or agency of the Department of Defense is transferred or assigned to another department or agency of that department, balances of appropriations that the Secretary of Defense determines are available and needed to finance or discharge that function, power, duty, or activity, as the case may be, may, with the approval of the President, be transferred to the department or agency to which that function, power, duty or activity, as the case may be, is transferred, and used for any purpose for which those appropriations were originally available. Balances of appropriations so transferred shall—
(1)be credited to any applicable appropriation account of the receiving department or agency; or
(2)be credited to a new account that may be established on the books of the Department of the Treasury;
(b)When a function, power, or duty or an activity of a department or agency of the Department of Defense is transferred to another department or agency of that department, those civilian employees of the department or agency from which the transfer is made that the Secretary of Defense determines are needed to perform that function, power, or duty, or for that activity, as the case may be, may, with the approval of the President, be transferred to the department or agency to which that function, power, duty, or activity, as the case may be, is transferred. The authorized strength in civilian employees of a department or agency from which employees are transferred under this section is reduced by the number of employees so transferred. The authorized strength in civilian employees of a department or agency to which employees are transferred under this section is increased by the number of employees so transferred.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised sectionSource (U.S. Code)Source (Statutes at Large) 126(a) 126(b)5:172f(a).5:171n(a) (as applicable to 5:172f(a)).5:172f (less (a)).
July 26, 1947, ch. 343, § 407; added Aug. 10, 1949, ch. 412, § 11 (21st and 22d pars.), 63 Stat. 589.
July 26, 1947, ch. 343, § 308(a) (as applicable to § 407), 61 Stat. 509. In subsection (a), the words “under authority of law” are omitted as surplusage. The following substitutions are made: “needed” for “necessary”; “used” for “be available for use by”; and “those appropriations” for “said funds”. In subsection (b), 5 U.S.C. 172f(b) is restated to reflect more clearly its purpose to authorize “transfers of personnel” (

Senate Report No. 366

, 81st Congress, p. 23).

Editorial Notes

Amendments

1980—Subsec. (b) Pub. L. 96–513 substituted “President” for “Director of the Bureau of the Budget”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–513 effective Dec. 12, 1980, see section 701(b)(3) of Pub. L. 96–513, set out as a note under section 101 of this title.

Executive Documents

Delegation of Functions Authority of President under subsec. (a) of this section to approve transfers of balances of appropriations provided for therein delegated to Director of Office of Management and Budget, see section 9(2) of Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747, set out as a note under section 301 of Title 3, The President.

Reference

Citations & Metadata

Citation

10 U.S.C. § 126

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73