Appropriation is an authorization by an act of Congress that permits
Federal agencies to incur obligations and make payments from the
Treasury. An appropriation usually follows enactment of
authorizing legislation. An appropriation act is the most
common means of providing budget authority. Appropriations do
not represent cash actually set aside in the Treasury; they represent
limitations of amounts which agencies may obligate during a specified
time period. Appropriation types are listed below:
Research, Development, Test, and
Evaluation (RDT&E) appropriations fund the efforts performed by
contractors and government activities required for the research and
development of equipment, material, computer application software, and
its test and evaluation to include initial operational test and
evaluation and live fire test and evaluation. RDT&E also funds
the operation of dedicated research and development (R&D)
installations activities for the conduct of R&D programs.
Procurement appropriations fund those
acquisition programs that have been approved for production (to include
low rate initial production (LRIP) of acquisition objective
quantities), and all costs integral and necessary to deliver a useful
end item intended for operational use or inventory upon delivery.
Operation and Maintenance
(O&M) appropriations fund expenses such as civilian salaries,
travel, minor construction projects, operating military forces,
training and education, depot maintenance, stock funds, and base
operations support. Military Personnel
(MP) appropriations fund costs of salaries and other compensation for
active and retired military personnel and reserve forces based on end
Military Construction (MILCON)
appropriations fund major projects such as bases, schools, missile
storage facilities, maintenance facilities, medical/dental clinics,
libraries, and military family housing.
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