---
kind: "section"
citation: "10 U.S.C. § 126"
title: "10"
title_heading: "Armed Forces"
number: "126"
heading: "Transfer of funds and employees"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/126"
units:
  - "Subtitle A — General Military Law"
  - "Part I — Organization and General Military Powers"
  - "Chapter 3 — General Powers and Functions"
---

# §126. Transfer of funds and employees

- (a) When a [function](/usc/10/467.md?p=1), power, or duty or an activity of a [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) of the [Department](/usc/10/101.md?p=a-6) of Defense is transferred or assigned to another [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) of that [department](/usc/10/101.md?p=a-6), balances of appropriations that the [Secretary](/usc/10/4951.md?p=3) of Defense determines are available and needed to finance or discharge that [function](/usc/10/467.md?p=1), power, duty, or activity, as the case may be, may, with the approval of the President, be transferred to the [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) to which that [function](/usc/10/467.md?p=1), 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](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3); or
  - (2) be credited to a new account that may be established on the books of the [Department](/usc/10/101.md?p=a-6) of the Treasury;

  and be merged with the funds already credited to that account and [accounted for](/usc/10/1513.md?p=3) as one fund. Balances of appropriations credited to an account under [clause (1)](#a-1) are subject only to such limitations as are specifically applicable to that account. Balances of appropriations credited to an account under [clause (2)](#a-2) are subject only to such limitations as are applicable to the appropriations from which they are transferred.

- (b) When a [function](/usc/10/467.md?p=1), power, or duty or an activity of a [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) of the [Department](/usc/10/101.md?p=a-6) of Defense is transferred to another [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) of that [department](/usc/10/101.md?p=a-6), those civilian employees of the [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) from which the transfer is made that the [Secretary](/usc/10/4951.md?p=3) of Defense determines are needed to perform that [function](/usc/10/467.md?p=1), power, or duty, or for that activity, as the case may be, may, with the approval of the President, be transferred to the [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) to which that [function](/usc/10/467.md?p=1), power, duty, or activity, as the case may be, is transferred. The [authorized strength](/usc/10/101.md?p=b-11) in civilian employees of a [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) from which employees are transferred under this section is reduced by the number of employees so transferred. The [authorized strength](/usc/10/101.md?p=b-11) in civilian employees of a [department](/usc/10/101.md?p=a-6) or [agency](/usc/10/3451.md?p=3) to which employees are transferred under this section is increased by the number of employees so transferred.

## Source credit

(Added Pub. L. 87–651, title II, § 201(a), Sept. 7, 1962, 76 Stat. 516; amended Pub. L. 96–513, title V, § 511(2), Dec. 12, 1980, 94 Stat. 2920.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| 126(a)<br>126(b) | 5:172f(a).<br>5:171n(a) (as applicable to 5:172f(a)).<br>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 Amendment

Amendment 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.