DEPUTY SECRETARY OF DEFENSE
1010 DEFENSE PENTAGON
WASHINGTON, DC 20301-1010

SEP 25 2013

MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS
CHAIRMAN OF THE JOINT CHIEFS OF STAFF
UNDER SECRETARIES OF DEFENSE
DEPUTY CHIEF MANAGEMENT OFFICER
COMMANDERS OF THE COMBATANT COMMANDS
DIRECTOR, COST ASSESSMENT AND PROGRAM EVALUATION
DIRECTOR, OPERATIONAL TEST AND EVALUATION
GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE
INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE
ASSISTANT SECRETARIES OF DEFENSE
DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER
ASSISTANTS TO THE SECRETARY OF DEFENSE
DIRECTOR, ADMINISTRATION AND MANAGEMENT
DIRECTOR, NET ASSESSMENT
DIRECTORS OF THE DEFENSE AGENCIES
DIRECTORS OF THE DOD FIELD ACTIVITIES

- ‘SUBJECT: Guidance for Continuation of Operations in the Absence of Available Appropriations

Appropriations provided under the Consolidated and Further Continuing Appropriations Act,
2013 (P.L. 13-6) expire at 11:59 PM on Monday, September 30, 2013. The Administration does not
want a lapse in appropriations to occur. The Administration is willing to work with the Congress to
enact a short-term continuing resolution (CR) to fund critical Government operations and allow
Congress the time to complete the full year 2014 appropriations. The Secretary and I hope that the
Congress will provide the Department with a CR or an appropriations bill for Defense activities
during Fiscal Year (FY) 2014. However, prudent management requires that Department be prepared
for the possibility of a lapse in appropriation.

The attachment to this memorandum provides instructions for continuation of essential
operations in the absence of appropriated funds. The Department will, of course, continue to
prosecute the war in Afghanistan, including preparation of forces for deployment into that conflict.
The Department must, as well, continue many other operations necessary for the safety of human life
and protection of property, including operations essential for the security of our Nation. (A copy of
military operations necessary for national security will be supplied separately.) These activities will
be “excepted” from the results of a lapse in appropriations: all other activities would need to be shut
down in an orderly and deliberate fashion, including — with few exceptions — the cessation of
temporary duty travel.

All military personnel will continue in a normal duty status regardless of their affiliation with
excepted or non-excepted activities. Military personnel will not be paid until such time as Congress

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makes appropriated funds available to compensate them for this period of service. Civilian
personnel who are engaged in excepted activities will also continue in normal duty status and also
will not be paid until Congress makes appropriated funds available. Civilian employees not engaged
in excepted activities will be furloughed, i.e., placed in a non-work, non-pay status.

The responsibility for determining which functions would be excepted from shut down
resides with the Secretaries of the Military Department and Heads of the DoD Components, who
may delegate this authority as they deem appropriate. The attached guidance should be used to
assist in making this determination. The guidance does not identify every excepted activity, but
rather provides overarching direction and general principles for making these determinations. It
should be applied prudently in the context of a Department at war, with decisions guaranteeing our
continued robust support for those engaged in that war, and providing assurance that the lives and
property of our Nation’s citizens will be protected.

This memorandum contains guidance to begin detailed planning. No shutdown actions are to
be taken until you receive further notice.

Within the Office of the Secretary of Defense, the Under Secretary of Defense (Comptroller)
will take the lead in preparing for operations in the absence of appropriations, assisted by other
offices as necessary.

To repeat, the Secretary and I hope that Department of Defense will receive a CR or the
appropriations bill. This guidance is intended to support prudent planning.

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Attachment:
As stated

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Director for National Intelligence