Title 22Foreign Relations and IntercourseRelease 119-73

§2696 Nondiscretionary personnel costs, currency fluctuations, and other contingencies

Title 22 › Chapter CHAPTER 38— - DEPARTMENT OF STATE › § 2696

Last updated Apr 6, 2026|Official source

Summary

Lets the State Department get extra money needed for staff pay, retirement, and other employee benefits, and to make up for bad swings in foreign currency or rising overseas wages and prices that happen after November 30 of either the calendar year that ended during the prior fiscal year or the calendar year before the year the funding was approved. The Secretary of State can keep a special Buying Power Maintenance account. Money that becomes extra because of currency gains can be moved into that account. Money from that account can be moved back to cover losses so programs can keep running at their approved levels. Transferred money is merged into the receiving account and follows the same rules and time limits. Any legal limits on spending are adjusted as needed to offset these currency or price changes. Unused funds for an account can be moved into the Buying Power Maintenance account no later than the end of the fifth fiscal year after the year they were provided, but those transfers can only apply to funds made available after fiscal year 2008 and cannot make the Buying Power Maintenance balance exceed $100,000,000. Such transfers count as reprogramming and must follow normal reprogramming procedures. Funds authorized for one Department of State account in a two-year authorization cycle may be used for another account, but the “Diplomatic and Consular Programs” account cannot get more than 5 percent above its authorized amount and other accounts cannot get more than 10 percent above theirs. Money authorized for a year remains available until spent. The Department may obligate the full amount for a 12-month contract that runs across two fiscal years if the total is obligated in the earlier year.

Full Legal Text

Title 22, §2696

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)There are authorized to be appropriated for the Department of State, in addition to amounts otherwise authorized to be appropriated for the Department, such sums as may be necessary for any fiscal year for increases in salary, pay, retirement, and other employee benefits authorized by law.
(b)(1)In order to maintain the levels of program activity for the Department of State provided for each fiscal year by the annual authorizing legislation, there are authorized to be appropriated for the Department of State such sums as may be necessary to offset adverse fluctuations in foreign currency exchange rates, or overseas wage and price changes, which occur after November 30 of the earlier of—
(A)the calendar year which ended during the fiscal year preceding such fiscal year, or
(B)the calendar year which preceded the calendar year during which the authorization of appropriations for such fiscal year was enacted.
(2)In carrying out this subsection, there may be established a Buying Power Maintenance account.
(3)In order to eliminate substantial gains to the approved levels of overseas operations for the Department of State, the Secretary of State shall transfer to the Buying Power Maintenance account such amounts in any appropriation account under the heading “Administration of Foreign Affairs” as the Secretary determines are excessive to the needs of the approved level of operations under that appropriation account because of fluctuations in foreign currency exchange rates or changes in overseas wages and prices.
(4)In order to offset adverse fluctuations in foreign currency exchange rates or overseas wage and price changes, the Secretary of State may transfer from the Buying Power Maintenance account to any appropriation account under the heading “Administration of Foreign Affairs” such amounts as the Secretary determines are necessary to maintain the approved level of operations under that appropriation account.
(5)Funds transferred by the Secretary of State from the Buying Power Maintenance account to another account shall be merged with and be available for the same purpose, and for the same time period, as the funds in that other account. Funds transferred by the Secretary from another account to the Buying Power Maintenance account shall be merged with the funds in the Buying Power Maintenance account and shall be available for the purposes of that account until expended.
(6)Any restriction contained in an appropriation Act or other provision of law limiting the amounts available for the Department of State that may be obligated or expended shall be deemed to be adjusted to the extent necessary to offset the net effect of fluctuations in foreign currency exchange rates or overseas wage and price changes in order to maintain approved levels.
(7)(A)Subject to the limitations contained in this paragraph, not later than the end of the fifth fiscal year after the fiscal year for which funds are appropriated or otherwise made available for an account under “Administration of Foreign Affairs”, the Secretary of State may transfer any unobligated balance of such funds to the Buying Power Maintenance account.
(B)The balance of the Buying Power Maintenance account may not exceed $100,000,000 as a result of any transfer under this paragraph.
(C)Any transfer pursuant to this paragraph shall be treated as a reprogramming of funds under section 2706 of this title and shall be available for obligation or expenditure only in accordance with the procedures under such section.
(D)The authorities contained in this paragraph may be exercised only with respect to funds appropriated or otherwise made available after fiscal year 2008.
(c)Amounts authorized to be appropriated for a fiscal year for the Department of State or to the Secretary of State are authorized to be made available until expended.
(d)(1)Subject to paragraphs (2) and (3), funds authorized to be appropriated for any account of the Department of State in the Department of State Appropriations Act, for either fiscal year of any two-year authorization cycle may be appropriated for such fiscal year for any other account of the Department of State.
(2)Amounts appropriated for the “Diplomatic and Consular Programs” account may not exceed by more than 5 percent the amount specifically authorized to be appropriated for such account for a fiscal year. No other appropriations account may exceed by more than 10 percent the amount specifically authorized to be appropriated for such account for a fiscal year.
(3)The requirements and limitations of section 2680 of this title shall not apply to the appropriation of funds pursuant to this subsection.
(e)Amounts authorized to be appropriated for a fiscal year for the Department of State or to the Secretary of State are authorized to be obligated for twelve-month contracts which are to be performed in two fiscal years, if the total amount for such contracts is obligated in the earlier fiscal year.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2008—Subsec. (b)(7)(D). Pub. L. 110–252 amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “The authorities contained in this section may only be exercised to such an extent and in such amounts as specifically provided for in advance in appropriations Acts.” 1994—Subsec. (b)(7)(E). Pub. L. 103–236, § 122(a)(1), struck out subpar. (E) which read as follows: “This paragraph shall cease to have effect after
September 30, 1993.” Subsec. (d)(1). Pub. L. 103–236, § 122(a)(2), substituted “either fiscal year” for “the second fiscal year” and “such fiscal year” for “such second fiscal year”. Subsec. (d)(2). Pub. L. 103–236, § 122(a)(3), amended first sentence generally. Prior to amendment, first sentence read as follows: “Amounts appropriated for the ‘Salaries and Expenses’ and ‘Acquisition and Maintenance of Buildings Abroad’ accounts may not exceed by more than 5 percent the amounts specifically authorized to be appropriated for each such account for a fiscal year.” Subsec. (d)(4). Pub. L. 103–236, § 122(a)(4), struck out par. (4) which read as follows: “This subsection shall cease to have effect after
September 30, 1993.” 1991—Subsec. (b)(7). Pub. L. 102–138, § 117(a), added par. (7). Subsec. (d). Pub. L. 102–138, § 117(c), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “Amounts authorized to be appropriated for the Department of State for a fiscal year for the ‘Administration of Foreign Affairs’ account, the ‘International Organizations and Conferences’ account, the ‘International Commissions’ account, or the ‘Migration and Refugee Assistance’ account may be appropriated for that fiscal year for any other such account, except that the total amount appropriated for a fiscal year for any such account may not exceed by more than 10 percent the amount specifically authorized to be appropriated for that account for that fiscal year.” 1990—Subsec. (e). Pub. L. 101–246 added subsec. (e). 1982—Subsec. (b). Pub. L. 97–241, § 112(a), designated existing provision as par. (1), substituted provision authorizing appropriations to offset adverse fluctuations in foreign currency exchange rates and overseas wage and price changes which occur after Nov. 30 of the earlier of the calendar year which ended during the fiscal year preceding such fiscal year or the calendar year which preceded the calendar year during which the authorization of appropriations for such fiscal year was enacted, for provision authorizing appropriations to offset adverse fluctuations in foreign currency exchange rates occurring after Nov. 30 of the preceding fiscal year, and added pars. (2) to (6).

Statutory Notes and Related Subsidiaries

References to Diplomatic and Consular Programs AccountReferences to the Diplomatic and Consular Programs account to be construed to include the Diplomatic Programs account in fiscal year 2020 and each fiscal year thereafter. See par. (7) of title I of div. G of Pub. L. 116–94, set out as a note under section 2651 of this title.

Effective Date

Pub. L. 96–60, title I, § 105(b), Aug. 15, 1979, 93 Stat. 396, provided that: “The amendment made by subsection (a) [enacting this section] shall take effect on October 1, 1979.”

Reference

Citations & Metadata

Citation

22 U.S.C. § 2696

Title 22Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73