This bill, titled the Smarter Sentencing Act of 2026, significantly modifies federal drug sentencing laws by reducing mandatory minimum penalties for certain offenses under the Controlled Substances Act and the Controlled Substances Import and Export Act. It introduces a new definition for a "courier," establishing lower mandatory minimum sentences for individuals whose role was limited to transporting or storing drugs or money. These sentencing changes apply to future cases and also allow for the retroactive review and potential reduction of sentences for individuals convicted of covered offenses before the bill's enactment. The legislation directs the United States Sentencing Commission to review and amend its guidelines and policy statements to align with these new sentencing modifications. In doing so, the Commission must consider factors such as minimizing the federal prison population, fiscal implications, public safety, and the need to reduce racial disparities in sentencing, while ensuring severe penalties for serious traffickers. The Commission is granted emergency authority to promulgate these changes within 120 days of the Act's enactment. Furthermore, the bill mandates several reports to enhance transparency and accountability in the federal criminal justice system. The Attorney General must report on how cost savings from reduced incarceration will be used to address prison overcrowding, invest in law enforcement, and reduce recidivism. Additionally, the Attorney General and various federal agencies are required to compile comprehensive reports and establish publicly accessible indexes of all federal criminal statutory and regulatory offenses, detailing their elements, potential penalties, prosecution history, and mens rea requirements.