A bill to authorize the transfer of certain earmarked funds to accounts for operations and activities in Iraq and Afghanistan.

Allows the Secretary of Defense to transfer the amount of any congressionally directed spending item in or in connection with the Department of Defense Appropriations Act, 2008 (division A of P.L. 110-116) to one or more of the accounts of the Department of State, Department of Defense (DOD), U.S. Agency for International Development (USAID), or accounts or other agencies conducting operations or activities in Iraq or Afghanistan, for the purpose of funding such operations or activities.

Defines "congressionally directed spending item" as language included primarily at the request of a Member of Congress providing, authorizing, or recommending a specific amount of discretionary budget authority, credit authority, or other spending authority for a contract, loan, loan guarantee, grant, loan authority, or other expenditure with or to an entity, or targeted to a specific state, locality, or congressional district other than through a statutory or administrative formula-driven or competitive award process.

Terminates the budget, credit, or other spending authority for the congressionally directed spending item upon the transfer of the amount of such item.