Congressional Response Report: SSA’s Limitation on Administrative Expenses Appropriation’s Transfer Authority

Since Fiscal Year 1996, public law has required that the unobligated balances provided for annual Limitation on Administrative Expenses (LAE) at the end of each fiscal year to remain available until expended to invest in information technology. This provision has allowed SSA to transfer millions of dollars for a computing network, IT, telecommunications hardware and software infrastructure, and non-payroll administrative expenses associated solely with these costs.

In response to a request from U.S. Rep. Sam Johnson (R-TX), Chairman of the Subcommittee on Social Security, we reviewed information on SSA's LAE appropriation's transfer of unobligated LAE funds for IT investment.