U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.


Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.


  1. Home
  2. Working Capital Fund (WCF)

Working Capital Fund (WCF)


Revolving funds within DoD that finance organizations that are intended to operate like commercial businesses. WCF business units finance their operations with cash from the revolving fund; the revolving fund is then replenished by payments from the business units' customers.

Alternate Definition

WCFs are a unique type of funding that allows Department of Defense (DoD) activities to operate (similar to a commercial business) when financing inventories of supplies or executing industrial-type or commercial-type activities that provide common services within or among departments and the DoD).

General Information

The Defense WCF became effective in FY 1992 (authority of Title 10, USC, Section 2208 ("Working Capital Funds").
WCFs are designated to allow DoD corporate structures the ability to minimize risk when executing maintenance and supply functions.  Also, WCFs exist to: encourage cross-servicing between DoD Services/Components/Agencies and their operating agencies or partners; provide WCF activity managers direct financial authority and flexibility to purchase and utilize personnel, materials, and services more effectively; establish a more effective process for managing the cost of goods and services for DoD entities; and allow for contracts between WCF activities and DoD entities requiring the end products/services.
WCFs are not the same as DoD funds appropriated by Congress (RDT&E, Procurement, O&M, MILPERS, and MILCON).  However, similar to a commercial business, the intent of WCFs is to allow for investments in the near term with a pricing structure that will allow the activity to recoup its investment costs from future year activities and collections.