State Adjutants General have the authority to use Federal equipment and property during State-directed missions, and the U.S. Property and Fiscal Officers (USPFOs) have the responsibility to obtain reimbursement for use of the equipment, damages, and losses associated with the use of such equipment and property.

Reimbursements are received by the USPFO and deposited to the General Fund of the U.S. Treasury in accordance with the Miscellaneous Receipts Statute (31 U.S.C. § 3302). Because the funds are not deposited into Department of Defense accounts, National Guard units are not able to promptly maintain, repair, or replace damaged equipment used for State-directed missions.

This proposal would provide a significant, positive impact on Federal training and readiness levels by placing the reimbursement funds from the State into the appropriate Department of Defense accounts rather than the Federal Treasury. Retaining reimbursement of costs incurred while Federal equipment and property are utilized for State-directed[ missions would ensure available funding for maintenance, repair, and replacement costs when needed. Equipment and property will remain ready for the National Guard (NG) Federal mission.