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Audit the Pentagon Act: Financial Penalties for Failing Financial Audits

This bill introduces automatic budget cuts for Department of Defense agencies that fail to achieve a clean financial audit. It aims to ensure better accountability of taxpayer money and use the resulting savings to reduce the national deficit.
Key points
Defense agencies failing an audit will face budget reductions of 0.5% to 1.0%.
Funds from these reductions will be redirected to national deficit reduction.
Military pay and health programs are protected from these budget cuts.
The President can waive penalties if they pose a risk to national security.
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Status: Introduced
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Additional Information
Print number: 119_HR_7555
Sponsor: Rep. Pocan, Mark [D-WI-2]
Process start date: 2026-02-12