US HB7240

Requires the FAA to narrowly construe the "sensitive government mission" exception for ADS-B Out transmission requirements under 14 CFR 91.225(f)(1), limiting the exception only to portions of flights where sensitive activities are actually carried out

Directs the FAA Administrator to issue revised regulations within 1 year of enactment and update any memoranda of agreement with Federal, State, local, or Tribal agencies to conform with the new requirements

Mandates quarterly reports from agencies performing sensitive government missions to the FAA Administrator, including attestations of compliance and detailed flight logs of when ADS-B Out equipment was not transmitting

Requires the GAO to conduct a review within 2 years comparing exception utilization before and after the revised regulations, assessing compliance by the Department of Defense and other agencies

Establishes annual Inspector General audits beginning 3 years after enactment to evaluate FAA oversight of ADS-B Out exceptions, with special notification to Congress required when any agency uses the exception 5 or more times in a calendar month