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State Active Duty Reimbursement

SAD
SAD
Priority
Joint-Personnel

Issue

National Guard equipment is federally owned. That equipment – such as aircraft, vehicles, and communications systems – is often used while responding to State Active Duty (SAD) missions, including natural disasters and civil emergencies.

States are required to provide reimbursement to the federal government for the maintenance costs associated with this use (DoD FMR 7000.14-R). The Miscellaneous Receipts Act (31 U.S.C. § 3302(b)) mandates that any funds received by the federal government must be deposited into the U.S. Treasury unless otherwise explicitly stated. Thus, preventing those funds from being returned to the National Guard units to conduct that much needed maintenance and maintain readiness.

SAD

Why This Happens

  • States reimburse costs through the U.S. Property and Fiscal Officer (USPFO).
  • Because reimbursement funds originate at the state level, outside congressional appropriations, they trigger the Miscellaneous Receipts Act (MRA).
  • The MRA requires these funds to be deposited into the U.S. Treasury. As a result, the National Guard cannot retain or reuse reimbursed funds for maintenance or repair.

The Impact

  • Readiness for federal missions is degraded.
  • Equipment used for SAD missions is not fully restored or repaired.
  • Maintenance shortfalls accumulate unpredictably.
  • State response usage exceeds programmed O&M funding.
  • States must pull funding from other areas to address the maintenance needs.

Recommendation

The National Guard of the United States (NGAUS) urges Congress to:

  • Support Guarding Readiness Resources Act (S.807/H.R.1695) led by Senators Lee and Duckworth / Congressmen Harrigan and Neguse

What This Does

  • Allows USPFOs to retain approximately $28M annually in SAD reimbursement funds.
  • Ensures reimbursed funds return directly to National Guard units.
  • Enables timely maintenance, repair, and replacement of federal equipment.
  • Preserves readiness for federally directed missions.
  • Aligns fiscal policy with operational reality.

Why It Matters

  • No new spending
  • No change to state reimbursement obligations
  • Allows funds to be used for their intended purpose
  • Protects readiness without expanding federal costs
  • Supports governors and Guard units responding to emergencies

Point of Contact

Julian Plamann
Deputy Director Government Affairs, Joint & Personnel

Attachments

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