S-5185 — Audit the Pentagon Act

YourVoice.Now Summary

Transparency & Accountability

Pentagon offices that fail a full audit would lose 2% of their funding, with the money going to deficit reduction.

Transparency & Accountability

Penalty for Pentagon offices that fail audits — 2% budget cut

Each year the Defense Secretary would name the parts of the Pentagon that lack a clean audit of all their books. Each one would lose 2% of its money, which would go to the Treasury to lower the deficit.

More about this bill

Parts of the Pentagon that fail a full audit would lose 2% of their money for that year. The Secretary of Defense would decide each year which offices fall short. An office falls short if it does not get a clean audit opinion on all its financial statements. A clean opinion (an "unqualified opinion") means auditors found the books fairly stated. The 2% cut would be spread in proportion across every program in that office. The money would not shift to other uses. It would go to the Treasury to pay down the federal deficit. The cut is figured from the amount Congress authorized for that office. The rule covers any fiscal year after 2024. Most households would see no direct change in daily life.

Congressional Summary

Audit the Pentagon Act This bill requires the Department of Defense (DOD) to reduce spending for any department, agency, or other DOD element that DOD determines has not achieved an unqualified opinion on its full financial statements for the calendar year ending during that fiscal year. (An unqualified opinion or clean audit means an auditor has determined the financial statements are presented fairly and provide a true view of an entity’s financial position.) Specifically, the amount available to such department, agency, or element for the fiscal year when the determination is made must be reduced by 2%. Amounts unavailable to such department, agency, or element must be applied on a pro rata basis against each program, project, and activity. DOD must deposit such unavailable amounts in the general fund of the Department of the Treasury for purposes of deficit reduction.

Details

Congress: 119th
Chamber: Senate
Status: summarized
Action: Introduced in Senate
Action Date: 2026-07-30
Date Added: 2026-10-06
Source: Congress.gov →

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