By 1932 Major Hugh J. Kerr, Chief of the Field Service Section of the Materiel Division, proposed the formation of a transport squadron at each air depot to act as a cadre for the transport wing the Air Corps proposed to support a field army in the event of mobilization.

By March 1934, it had become a Regular Army Inactive unit at Norton Field, Ohio, with reserve officers assigned.

The rapid transport of supplies by the squadrons permitted the Air Corps to maintain low levels of materiel at its airfields, relying on replenishment from depot stocks only when needed.

These, and various other militarized DC-3s remained as the squadron's equipment until the entry of the United States into World War II.

After being moved to Pope in the 2005 BRAC, the 440th became the first Air Force Reserve Wing to have an active duty associate squadron.