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Capital acquisition funds (CAF) have been discussed as a new mechanism for financing fed. capital assets. As envisioned, CAFs would have 2 goals. First, CAFs would potentially improve decision-making by reflecting the annual cost for the use of capital in program budgets. 2nd, they would help ameliorate at the sub-unit level the effect of large increases in budget authority for capital projects, without forfeiting congressional controls requiring the full cost of capital assets to be provided up-front. This report describes: (1) how CAFs would likely operate; (2) the potential benefits & difficulties of CAFs, including alternative mechanisms for obtaining the benefits; & (3) several issues to weigh when considering implementation of CAFs. Tables.