Do security assistance funds expire at the end of the fiscal year?

Appropriated funds for IMET, FMFP, and ESF may be made available after the expiration of the FY for which they were appropriated. These funds shall remain available for an additional four years from the date when the availability of such funds would otherwise have expired, if such funds are initially obligated before the expiration of their respective periods of availability.

The IMET program has two important exceptions. The first exception involves what is termed an “IMET fifth quarter.” This procedure permits uncommitted appropriated dollars to be committed no later than 30 September of a given fiscal year, but to be spent in the subsequent three-month period (i.e., the fifth quarter), through 31 December. The second exception, set in each year’s appropriations act, allows part of the IMET appropriation to remain available beyond the fiscal year. This authority is to allow for the expenditure of all IMET funding without the loss of it at the end of the FY.

Section 653(a), FAA, requires a Presidential notification, delegated to the Secretary of State, to Congress to allocate any funds appropriated by the annual S/FOAA. This funding allocation report must be made no later than thirty days after the enactment of a law appropriating funds to carry out any provision of the FAA or the AECA. The report will identify each foreign country and international organization to which the USG intends to provide any portion of the appropriated funds, and the amount of funds, by category of assistance, that the USG intends to provide.

Section 634A(a), FAA, is the principal authority covering funding obligations and reprogramming actions. In general, special notification to Congress is required fifteen days in advance of any obligation of funds appropriated to carry out the purposes of the AECA or the FAA for any activities, programs, projects, types of material assistance, countries, or other operations that have not been justified to Congress or that are in excess of the amount justified to Congress. This notification must be provided to the Congressional foreign relations and appropriations committees.

The FMS and DCS components of SA are normally funded by direct cash outlays of the purchasing countries. These two programs can also be funded using appropriated FMFP funds or, in the case of Building Partner Capacity (BPC) programs, DoW SC funds. Consequently, FMS and DCS do not require Congressional budget authorizations or appropriations. Nevertheless, the financial activity generated by FMS cash purchases has a substantial impact on USG financial programs. Special accounting procedures have been instituted for the management of these funds. FMS cash activities are documented in the annual U.S. budget in terms of the FMS Trust Fund.