Enacted appropriations and other budgetary legislation may vary in the level of detail they provide regarding how agencies should spend the funds that have been provided. Even when the purpose of appropriations has been specified in great detail, agencies have often been provided with some flexibility to decide how they will use their available budgetary resources during the fiscal year. In some instances, agencies are provided with limited authority to shift funds from one appropriations account or fund account to another—commonly referred to as "transfer authority." In addition, agencies are generally permitted to shift funds from one purpose to another within an appropriations account. This practice, usually referred to as "reprogramming," may be restricted by statute. This report provides an overview of transfers and reprogramming, and describes the statutory limitations and requirements for congressional notification that are applicable to each. An agency or department may only transfer budgetary resources if it has been provided the statutory authority to do so. Transfer authority may be broad or narrow in scope and it may apply to all agencies, to select agencies, or only to a single agency. Indefinite transfer authority is typically provided with specific restrictions on the circumstances under which the authority may be used. Transfer authority may be provided either in authorizing statutes or in appropriations acts. Transfer Authority in Authorizing Statutes

While transfer authority provided in annual appropriations acts is often limited to a specific dollar amount or percentage of the total budget authority provided, transfer authority in authorizing statutes is often broad or indefinite (i.e., provided without explicit caps on the amount of funds that may be transferred). Unlike transfers, reprogramming of funds is generally permitted unless such actions are otherwise restricted by statute, and an agency may not reprogram funds if doing so would violate any other provisions of law. An agency's ability to reprogram may be restricted by including "limiting provisions" within its annual appropriations acts or other statutes. For example, provisions in the Department of Homeland Security Appropriations Act, 2013, established the following limitations and notification requirements on reprogramming actions by DHS: 
(a) None of the funds provided by this Act, provided by previous appropriations Acts to the agencies in or transferred to the Department of Homeland Security that remain available for obligation or expenditure in fiscal year 2013, or provided from any accounts in the Treasury of the United States derived by the collection of fees available to the agencies funded by this Act, shall be available for obligation or expenditure through a reprogramming of funds that:
(1) creates a new program, project, or activity; (2) eliminates a program, project, office, or activity; (3) increases funds for any program, project, or activity for which funds have been denied or restricted by the Congress; (4) proposes to use funds directed for a specific activity by either of the Committees on Appropriations of the Senate or the House of Representatives for a different purpose; or (5) contracts out any function or activity for which funding levels were requested for Federal full-time equivalents in the object classification tables contained in the fiscal year 2013 Budget Appendix for the Department of Homeland Security, as modified by the joint explanatory statement accompanying this Act, 
unless the Committees on Appropriations of the Senate and the House of Representatives are notified 15 days in advance of such reprogramming of funds. Limitations on Transfers and Reprogramming

		General Restriction

In general, transferred and reprogrammed funds are subject to any limitations or conditions that were imposed by their original appropriations act. Additional Restrictions

			Amount: "Not-to-Exceed" Limits

Statutes that provide authority to transfer funds may place a cap on the amounts that may be transferred. Congressional Notification

Agencies may be required by statute to notify Congress prior to (or shortly after) carrying out certain transfers and reprogramming transactions. Often, such requirements involve agencies notifying the relevant House and Senate Appropriations Committees a certain number of days (often 15, 30, or 45 calendar days) prior to transferring or reprogramming funds. Typically, all account-to-account transfers will require prior notification to Congress. Reprogramming actions generally require notification only when they exceed a certain dollar amount or "threshold." These adjustments may be necessary due to changing or unforeseen circumstances. When done so in accordance with the applicable authority, procedures, and limitations, transfers and reprogramming may enable agencies to operate more effectively or efficiently, while still adhering to congressional intent, thereby preserving Congress's "power of the purse." When transfers and reprogramming actions deviate from the applicable authorities, procedures, and limitations, however, it is possible that funds may be used in ways contrary to congressional intent. This, in turn, may pose challenges for congressional oversight of budget execution and agency operations.
Enacted appropriations and other budgetary legislation may vary in the level of detail they provide regarding how agencies should spend the funds that have been provided. Even when the purpose of appropriations is specified in great detail, agencies may be provided with some flexibility to make budgetary adjustments throughout the fiscal year. These adjustments may be necessary due to changing or unforeseen circumstances. In some instances, agencies are provided with transfer authority (i.e., authority to shift funds from one appropriations or fund account to another). In addition, agencies are generally permitted to shift funds from one purpose to another within an appropriations account. This practice, usually referred to as "reprogramming," is subject to statutorily imposed limitations.
An agency may only transfer budgetary resources if Congress has provided the agency with the statutory authority to do so. Transfer authority may be provided either in authorizing statutes or in appropriations acts. Transfer authority may be broad or narrow in scope, and may apply to all agencies, to select agencies, or only to a single agency. Transfer authority may be limited to a specific dollar amount. Alternatively, transfer authority may be provided for an indefinite amount, but with specific restrictions on the circumstances under which the authority may be used.
Reprogramming is generally permitted unless otherwise restricted or prohibited by statute. An agency's ability to reprogram may be restricted by including "limiting provisions" within its annual appropriations acts or other statutes. In addition, an agency may not reprogram funds if doing so would violate any other provisions of law.
In general, transferred and reprogrammed funds are subject to any limitations or conditions that were imposed by their original appropriations act. Statutes that provide transfer and reprogramming authority will commonly impose additional limitations or conditions, such as "not-to-exceed" limits, which place a cap on the amount of funds that may be transferred or reprogrammed, and "purpose" restrictions, which prohibit transferred or reprogrammed funds from being used for certain activities.
Agencies may be required by statute to notify Congress prior to (or shortly after) transferring or reprogramming funds. Such requirements usually involve notification to the relevant House and Senate Appropriations Committees a certain number of days (often 15, 30, or 45 calendar days) prior to transferring or reprogramming funds. Typically, all account-to-account transfers will require prior notification to Congress. Reprogramming actions generally require prior notification only when they exceed a certain dollar amount or "threshold."
When done so in accordance with the applicable authorities and procedures, transferring or reprogramming funds may enable agencies to operate more effectively or efficiently, and in a manner that is consistent with congressional intent. When transfers or reprogramming actions deviate from the applicable authorities, procedures, and limitations, however, it is possible that funds may be used in ways contrary to congressional intent.
This report provides an overview of transfers and reprogramming, and describes the statutory limitations and requirements for congressional notification that are applicable to each. This report concludes by discussing some of the challenges that transfers and reprogramming may pose for congressional oversight of budget execution.