Pentagon diverts $5.3 billion to cover troop pay as shutdown enters third week

As the government shutdown entered its third week on Oct. 29, the War Department confirmed it will ensure that roughly 1.3 million active-duty service members receive their paychecks on Friday, despite a lapse in appropriations for military personnel since the end of September.

To cover the estimated $5.3 billion in salaries and benefits, the Pentagon is reallocating funds from three unobligated accounts within its existing budget.

According to officials at the Office of Management and Budget and the Department of Defense, the transfers include $2.5 billion from the operations and maintenance account, $1.4 billion from the research, development, test, and evaluation account, and another $1.4 billion from the procurement account.

The move, authorized under the Pentagon’s general transfer authority, provides only a temporary bridge to meet the upcoming payday. It follows an earlier $8 billion shift on Oct. 15 from RDT&E funds to cover the mid-month payroll. The general transfer authority allows up to $8 billion in reallocations under the current continuing resolution, but only for urgent national security priorities.

Administration officials framed the decision as necessary to preserve troop readiness and morale amid a prolonged budget impasse. However, it has prompted concerns from some lawmakers and watchdog groups over its legality and the potential erosion of congressional control over appropriations.

The reallocation of funds comes at a cost to other Pentagon priorities. Drawing from research and development accounts could delay work on key innovation programs such as artificial intelligence, cyber defense, and hypersonic weapons. Redirecting procurement funds may also slow shipbuilding schedules and equipment modernization efforts authorized under the “One Big Beautiful Bill” reconciliation package passed in July.

While active-duty military pay is secured for now, hundreds of thousands of civilian employees and reservists remain furloughed or unpaid. The next scheduled military payday, Nov. 14, is yet another challenge, as remaining transfer authority is limited.

With no agreement yet on a continuing resolution or full-year budget, the White House has ruled out additional funding maneuvers beyond existing statutory limits. Some lawmakers have floated using tariff revenues to bridge future pay periods, but administration officials have dismissed that option as impractical.

As the shutdown drags on, pressure is mounting on both parties to reach a deal.