A bill to increase the authority to transfer unobligated balances between certain accounts of the Department of Defense in order to meet increased military personnel costs resulting from fluctuations in foreign currency exchange rates, and for other purposes.

Amends the Department of Defense Appropriations Act, 1988, and the National Defense Authorization Act for Fiscal Years 1988 and 1989 to increase the amount that the Secretary of Defense may transfer between appropriations and between authorizations within the Department of Defense. Directs the Secretary to give priority to civilian employees, readiness, and a more efficient acquisition process.

Allows the Secretary to transfer between the Foreign Currency Fluctuations, Defense account and the military personnel account of a military department funds resulting from increased or decreased military personnel costs due to fluctuations in foreign currency exchange rates.