Federal Capital Revolving Fund
SEC. 4. ESTABLISHMENT OF FEDERAL CAPITAL REVOLVING FUND.
There is hereby established in the Treasury a Federal Capital Revolving Fund to pay for the costs of projects approved pursuant to this Act.
(a) Administration of Fund.—The Fund is subject to the supervision of the Administrator in accordance with this Act.
(b) Permissible Uses.—Amounts in the Fund are available only for transfer to purchasing agencies to pay for the costs of approved projects.
(c) Prior Approval of Purchase Transfers.—Amounts in the Fund shall be transferred to a purchasing agency to pay for the costs of a project when—
(1) a purchase transfer to fund the project is approved in advance by an appropriations Act;
(2) the purchasing agency has received an appropriation for the first repayment amount and has made the first repayment to the Fund; and
(3) the project is designated by Congress in statute as an approved project and the President subsequently so designates.
(d) Purchase Transfer Limit.—Notwithstanding the amount approved by an appropriations Act for a purchase transfer, if the amount available to the purchasing agency for the first repayment amount is less than the amount required by section 6(c), the amount transferred from the Fund shall be equal to the product of the first repayment amount and the number of years in the repayment period.
(e) Higher Project Cost.—If a purchase transfer from the Fund is approved by an appropriations Act, but the approved amount is insufficient to pay the full costs of the project, then no amounts in excess of the approved amount may be transferred from the Fund to the purchasing agency for the difference (between the approved amount and the full costs of the project) unless approved in advance by an appropriations Act and the purchasing agency has received an appropriation of an additional amount for the adjustment to the repayment amount, calculated pursuant to section 6(c)(2) and has paid such additional amount to the Fund.
(f) Annual Limitation on Total Purchase Transfers.—Total new purchase transfers approved in appropriations Acts shall not exceed $2,500,000,000 per year plus any cumulative unused limitation in prior fiscal years.
(g) Excess Purchase Transfer Amounts.— If for any year the sum of approved purchase transfers exceeds the amounts available in the Fund or the annual limitation specified in subsection (f), each transfer amount approved by such appropriations Acts shall be reduced by a uniform percentage calculated by the Administrator such that the excess is eliminated, and the Administrator shall not transfer more than the reduced purchase transfer amount calculated for each project.
(h) Payment of One-time Administrative Fee.—Upon receipt of the purchase transfer, the purchasing agency shall pay the Administrator from the purchase transfer the one-time administrative fee.
The Federal Capital Revolving Fund Act of 2018 is proposed legislation that would reform the way the Federal Government purchases capital assets.
Section-by-Section for the Federal Capital Revolving Fund Act of 2018
Sec. 4. Establishment of the Federal Capital Revolving Fund.This section establishes the FCRF in the General Services Administration, specifies allowable uses of the FCRF, a requirement for prior approval of projects by the Appropriations Committee and designation by the President, appropriations for the first of up to 15 annual repayment amounts before funds can be used to acquire a project, limitations on projects, an annual limitation on aggregate total purchase transfers from the Fund to purchasing agencies, impacts of excess purchase transfer amounts, and the payment of a one-time administrative fee to support the administration of the FCRF.
[From the Budget Process section of the Analytical Perspectives volume of the President’s Fiscal Year 2020 Presidential Submission; pp. 138-140.]