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Bipartisan Bill Would Dock Pentagon's Budget for Failed Audits

The measure would cut 2% from any Defense Department office that misses a clean audit and send the money to the Treasury, lawmakers said.

  • On Thursday, Senators Bernie Sanders and Chuck Grassley reintroduced the Audit the Pentagon Act, legislation proposing to withhold 2% of the budget from any Defense Department component failing to achieve a clean audit.
  • The Defense Department has never passed a financial audit in the more than three decades since Congress first required one, failing eight consecutive annual audits without consequences despite lawmakers approving massive budget increases yearly.
  • Sanders identified examples of "waste and fraud" in a press release, citing almost $141 billion spent on a Northrop Grumman ballistic missile project seven years behind schedule and more than $126 billion on a General Dynamics submarine program.
  • Acting Comptroller Jules Hurst argued audit failures stem from valuing decades-old equipment, while the bill gained 10 cosponsors including Republicans Mike Lee of Utah and Rand Paul of Kentucky and Democrats Elizabeth Warren and Cory Booker.
  • The Pentagon faces a statutory deadline of December 31, 2028, to achieve a clean audit opinion, as the administration seeks $1.5 trillion in total military spending for fiscal year 2027 amid the ongoing Iran war.
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Bipartisan bill would dock Pentagon's budget for failed audits

(The Center Square) – Two U.S. senators want to attach a financial penalty to the Pentagon's long-running failure to pass an audit.

·Washington, United States
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NBC News broke the news in New York, United States on Thursday, July 30, 2026.
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