When pseudo cases are financed with funds that expire/cancel, the funds in the FMS trust fund must be obligated within the period of appropriation availability, expended within five years after the appropriation expires for new obligations, and any unexpended funding returned to the U.S. Treasury or the original funds ...

What happens to the funds after the period expires?

Expired - Funds can no longer be obligated for new requirements, but are still available to pay the bills. Canceled - Funds are no longer available for anything, including to pay the bills.

What is the DOD permitted to do with expired funds?

Expired funds are not available for new obligations. Both the obligated and unobligated balances of expired appropriations must be available for recording, adjusting, and liquidating obligations properly chargeable to that account.