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Title 10 — Armed ForcesRelease 119-73not60

§2209 Management Funds

Title 10 › Subtitle Subtitle A— General Military Law › Part IV— SERVICE, SUPPLY, AND PROPERTY › Chapter 131— PLANNING AND COORDINATION › § 2209

Last updated Apr 3, 2026|Official source

Summary

The Army, Navy, and Air Force each have a management fund for operations paid from two or more appropriations when costs cannot be charged right away. Each fund is run by that service secretary and starts with a base of $1,000,000 plus any money later appropriated. Opening an account in a fund needs the Secretary of Defense’s approval. Under rules set by the Secretary of Defense, the funds can pay for non‑stock material, personal pay, and contract services, but only when the costs can later be charged to the department’s or another DoD agency’s appropriations and the fund is repaid promptly. Money may be advanced into a fund based on estimated costs, estimates must be updated as real data comes in, final adjustments are made in the fiscal year the advance occurs, and advances can be used only in that fiscal year unless another law allows otherwise.

Full Legal Text

Title 10, §2209

Armed Forces — Source: USLM XML via OLRC

(a)To conduct economically and efficiently the operations of the Department of Defense that are financed by at least two appropriations but whose costs cannot be immediately distributed and charged to those appropriations, there is the Army Management Fund, the Navy Management Fund, and the Air Force Management Fund, each within its respective department and under the direction of the Secretary of that department. Each such fund shall consist of a corpus of $1,000,000 and such amounts as may be appropriated thereto from time to time. An account for an operation that is to be financed by such a fund may be established only with the approval of the Secretary of Defense.
(b)Under such regulations as the Secretary of Defense may prescribe, expenditures may be made from a management fund for material (other than for stock), personal services, and services under contract. However, obligation may not be incurred against that fund if it is not chargeable to funds available under an appropriation of the department concerned or funds of another department or agency of the Department of Defense. The fund shall be promptly reimbursed from those funds for expenditures made from it.
(c)Notwithstanding any other provision of law, advances, by check or warrant, or reimbursements, may be made from available appropriations to a management fund on the basis of the estimated cost of a project. As adequate data becomes available, the estimated cost shall be revised and necessary adjustments made. Final adjustment shall be made with the appropriate funds for the fiscal year in which the advances or reimbursements are made. Except as otherwise provided by law, amounts advanced to management funds are available for obligation only during the fiscal year in which they are advanced.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised sectionSource (U.S. Code)Source (Statutes at Large) 2209(a)2209(b)2209(c)5:172e(a), (b).5:172e(c) (last sentence).5:172e(c) (less last sentence).5:172e(d).July 3, 1942, ch. 484; restated Aug. 10, 1949, ch. 412, § 11 (16th through 19th pars.), 63 Stat. 588. In subsection (a), the second sentence is substituted for the second sentence of 5 U.S.C. 172e(a) and the first sentence (less last 21 words) of 5 U.S.C. 172e(b) which are omitted as unnecessary. In subsection (c), the 13th through 33d words of 5 U.S.C. 172e(d) are omitted as surplusage.

Reference

Citations & Metadata

Citation

10 U.S.C. § 2209

Title 10 — Armed Forces

Last Updated

Apr 3, 2026

Release point: 119-73not60