DEPOTS Act
- Sponsor
- Sen. Cornyn, John [R-TX]
- Committees
- Armed Services Committee (primary)
- Last action
- Aug 6, 2026
Bottom line
This bill provides the Department of Defense with accounting flexibility to manage internal debts and depreciated costs for capital assets at depots and arsenals that have become obsolete due to mission changes, without affecting external contractors.
What it actually does
This bill authorizes the Secretary of Defense to write off or eliminate internal Department of Defense accounting charges, such as remaining depreciation or internal debt, associated with capital assets at military depots and arsenals. This authority applies specifically when these assets no longer generate revenue due to mission realignments directed by the Federal Government. The write-offs must ensure that any previous cash outlay from a revolving fund is recovered and do not apply to payments owed to commercial contractors.
Section 2(a)(1)
Authority to Write-Off Internal DOD Depreciated Costs and Debts
This provision grants the Secretary of Defense the power to remove certain financial burdens from the books of military departments or the Department of Defense. Specifically, it allows the Secretary to eliminate internal accounting charges, like remaining depreciation or internal debt, that are linked to capital assets at military depots and arsenals. This can only be done if these assets are no longer generating revenue because their mission has been changed or realigned by the Federal Government, aiming to clear obsolete financial entries.
Section 2(a)(2)
Recovery of Outlays Requirement
This clause specifies that any write-offs performed under the bill's authority must be executed in a way that ensures any cash previously spent from a revolving fund is recovered. This critical requirement prevents the write-off from creating a net loss to those funds, thereby maintaining financial accountability and ensuring the integrity of the Department of Defense's internal financial mechanisms. It ensures that while internal accounting is adjusted, the actual cash flow from these funds is appropriately managed and not diminished.
Section 2(a)(3)
Limitation to Internal Balances
This section clarifies that the authority to write off costs and debts only applies to financial balances held within the internal accounts of a military department or the Department of Defense itself. It explicitly states that this authority does not extend to payments or debts owed to external commercial contractors, ensuring that external obligations remain unaffected and that the scope of the bill is strictly limited to internal governmental accounting adjustments, protecting third-party interests.
Section 2(b)
Delegation of Authority
This provision allows the Secretary of Defense to delegate the authority to perform these write-offs to the Secretary of a military department (e.g., Secretary of the Army, Navy, or Air Force). This delegation capability is designed to enable more decentralized and efficient management of these specific accounting adjustments, streamlining the process and allowing for more direct oversight by the relevant military department leadership, rather than requiring all decisions to come from the top.