US HB7555

Pentagon failed its 8th consecutive audit in December 2025, with November 2023 audit revealing inability to account for hundreds of billions of dollars representing 63% of nearly $4 trillion in assets

DoD departments, agencies, or elements failing to achieve an unqualified audit opinion face automatic budget reductions of 0.5% in the first year and 1.0% in subsequent years, applied pro rata across all programs

Military personnel accounts, reserve personnel accounts, National Guard personnel accounts, and the Defense Health Program account are excluded from budget reductions

Reduced funds are deposited into the General Fund of the Treasury for deficit reduction purposes

President may waive reductions by certifying to Congress that cuts would negatively affect national security or combat-deployed service members, with a required report explaining essential activities affected