DEPOTS Act

H.R. 10046, the Defense Expenditure Planning for Optimizing Throughput and Sustainment (DEPOTS) Act, would authorize the Secretary of Defense to write off or eliminate certain internal accounting entries—such as remaining depreciation or internal debt—held in the accounts of a military department or the Department of Defense. This applies specifically to capital assets at depots and arsenals that no longer generate revenue because the government directed a change in their mission. Any write-off must be carried out in a way that still recovers any prior cash outlay made from a revolving fund, and the authority does not extend to money owed to commercial contractors. The Secretary may delegate this authority to the secretary of a military department.

The bill affects internal Department of Defense financial management, particularly the accounting treatment of depots and arsenals whose mission has changed. It does not directly affect private citizens, contractors' payments, or public spending levels, since it governs internal bookkeeping between defense accounts rather than external transactions.

The bill was introduced in the House on August 6, 2026, by Rep. Michael Cloud (R-TX) and referred to the House Committee on Armed Services. It has not yet received a committee vote, floor vote, or further action; the next step would be committee consideration before any further progress toward passage.

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