Financial Management

Operation & Maintenance Appropriations

Operation & Maintenance (O&M) Appropriations funds the cost of operating and maintaining equipment at a state of readiness. It covers expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support.

See Appropriations Categories

Operation & Maintenance (O&M) appropriations are used to finance the following efforts:

  • Operation and maintenance
  • Training, organization, and administration
  • Repair of facilities and equipment
  • Hire of passenger motor vehicles
  • Travel and transportation
  • Care of the dead
  • Procurement of services, supplies, and equipment
  • Communications
  • Recruiting
  • Depot maintenance
  • Purchases from Defense Working Capital Funds (e.g., spare parts)
  • Base operations support

Operation & Maintenance (O&M) Budget Activities

Each O&M appropriation is subdivided into four budget activities (BAs):

  • BA-1 Operating Forces
  • BA-2 Mobilization
  • BA-3 Training and Recruiting
  • BA-4 Administrative and Service-wide Activities

Time Limitation

Available for new obligations for one fiscal year.

Funding Policy

Annualized (1 Year)

Types of Costs

Expense costs

Acquisition Phase

Operations and Support (O&S) Phase



May NOT Fund

These funds may not be used for efforts that are integral to a developmental, production or modification program/effort and any other costs more appropriately funded by other specific appropriations.


AcqLinks and References:

Updated: 6/20/2021

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