Section 1243 of the National Defense Authorization Act (NDAA) for Fiscal Year 2026 (P.L. 119-60) provides Cross Fiscal Year (CFY) authority for the Ukraine Security Assistance Initiative (USAI). CFY [will/will not] be utilized on lines [xxx, xxx] of this Building Partner Capacity (BPC) Letter of Offer and Acceptance (LOA).

1. Beginning fiscal year 2026, CFY allows the months (MOS) for USAI programs that begin in the fiscal year in which funds are available to continue until the end of the second fiscal year thereafter.
2. In addition, as long as funds for non-severable services or for a procurement are obligated on contracts within the Period of Availability timeframe for an existing bona fide need, such long-lead procurement items may be delivered to the U.S. Government and non-severable services may be performed until funds cancel. Case reconciliation must occur after the final delivery to the U.S. Government to facilitate case closure not later than July 31 of the cancellation year.
3. Provision of Services Related to Equipment Delivery. Certain activities that are intrinsic to the provision of equipment being delivered under a USAI program may occur outside the MOS authorized by CFY authority. Such activities may include engineering and technical services, quality assurance, installation, transportation, and initial operator training (not tactical or deployment training) when performance is intrinsic to the provision of the equipment and a bona fide need exists for them at the outset of the USAI program. However, only services and training that meet these criteria and are included in the procurement contract for the equipment being delivered may be provided outside the CFY MOS (as long as funds have not yet cancelled).
4. Defense Security Cooperation Agency (DSCA) received funding for this activity under the authority of 10 U.S.C. 2571 (Section 2571). The use of CFY authority is legally available for programs executed via reimbursable funds transfers under this authority. Unlike under the Economy Act (31 U.S.C. 1535), funds transferred under Section 2571 constitute an obligation of funds and do not require that funds transferred under its authority be returned to the ordering organization if they are not further obligated during the funds period of availability. Therefore, such funds are available to pay for DoD-provided services during the MOS allowed under CFY authority even if the funds were not obligated via a project order, travel order, or by a working capital fund transaction.

*A USAI program is defined as the provision of a particular capability to Ukraine within a tranche of a Congressional Notification. DSCA (Office of International Operations, Regional Execution Directorate (IOPS/REX)) oversees the development and execution of USAI programs. The notification to Congress defines a USAI program's scope. A USAI program may require execution by multiple Implementing Agencies, with multiple BPC LOAs and training grants, all of which will share a common program start date based on the earlier of the following: (1) the program's first obligation of program funds for a procurement contract; or (2) the first date of delivery to Ukraine of a USG sourced defense article or USG sourced defense service provided by the program.

**For more information on the program start date, please pull Security Cooperation Information Portal (SCIP)/Security Cooperation Management Suite (SCMS) Dashboard report or contact DSCA (IOPS/REX) for assistance.