Audit the Pentagon Act

The "Audit the Pentagon Act" establishes a mechanism to enforce financial accountability within the Department of Defense. It stipulates that if any department, agency, or element of the DoD fails to obtain an unqualified opinion on its full financial statements for a given calendar year after fiscal year 2024, specific penalties will be imposed.

Specifically, the amount authorized to be appropriated for that non-compliant entity in the subsequent fiscal year will be reduced by 2.0 percent. This reduction will be applied on a pro rata basis across all its programs, projects, and activities. Furthermore, all funds withheld due to these audit failures will be deposited by the Secretary of Defense into the general fund of the Treasury for the purpose of deficit reduction.