What are the three DoD Funds?

• A. Appropriated, Reimbursable, Non-Appropriated Funds (NAFs)
• B. General Fund, Special Funds, Trust Funds
• C. Deposit Funds, Revolving Funds, Special Funds
• D. Category A NAFs, Category B NAFs, Category C NAFs

Answer: (A)

The three DoD Funds refer to how money is obtained and managed: appropriated funds, reimbursable funds, and non-appropriated funds (NAFs). Appropriated funds come from congressional appropriations and support most programs and operations, used under annual budget cycles and subject to the rules of the federal appropriations process. Reimbursable funds are money earned when DoD provides goods or services under an agreement and is paid by another federal entity or customer; these funds are recovered and spent as part of ongoing operations, not treated as a new annual appropriation. Non-appropriated funds are generated by DoD activities themselves (for example, through morale, welfare, and recreation programs or military exchanges) and are used to fund related non-appropriated activities without being tied to a specific congressional appropriation. Together, these categories capture the official ways DoD finances its varied activities. Other fund classifications like general funds, trust funds, or deposit/revolving funds exist in different contexts, but they are not the standard three DoD fund types described here.