Legislation Overview

Sens. Bernie Sanders (I-Vt.) and Chuck Grassley (R-Iowa) have reintroduced a bipartisan bill that targets the Pentagon’s audit performance. The proposed legislation, known as the Audit the Pentagon Act, will impose financial penalties if any segment of the Pentagon fails an independent audit. Specifically, 2 percent of the offending segment’s budget will be withheld and redirected to the Treasury Department to decrease the national deficit.

Background and Motivation

The ongoing issue of waste, fraud, and financial mismanagement at the Pentagon has been highlighted by repeated audit failures. Sanders criticized the lack of accountability, particularly given the current demand for a substantial military budget amidst the conflict with Iran. He pointed out the difficulty in tracing the allocation of trillions of dollars.

Legislative History and Support

This bill was originally introduced in 2021 and brought back in 2023. It has gathered support from several co-sponsors, including Sens. Ron Wyden (D-Ore.), Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), and others.

Current Audit Status

The Pentagon failed its eighth consecutive audit late last year. Defense Secretary Pete Hegseth announced that the department aims to pass a clean audit by 2028. Lawmakers both Democratic and Republican have been pushing for greater transparency in the Pentagon’s financial documentation.

Recent Legislative Amendments

Recently, Rep. Andy Biggs’s (R-Ariz.) amendment was incorporated into the National Defense Authorization Act. This amendment proposes to cut the Pentagon’s budget by 0.5 percent if any segment fails an audit, indicating ongoing legislative efforts to enforce fiscal responsibility.