RECEIPTS Act
Latest action (24 Feb 2026): Introduced
What this bill does
The RECEIPTS Act addresses the Department of Defense's long-standing inability to produce auditable financial statements, a problem Congress notes has persisted despite legal requirements dating back decades. The bill offers incentives for achieving a "clean" (unqualified) audit opinion after fiscal year 2028, including expanded authority for the Secretary of Defense and military departments to transfer or reprogram funds without as much prior congressional notice. It also phases out several existing periodic reporting requirements once a clean audit opinion is obtained.
If DoD fails to achieve an unqualified audit opinion for fiscal year 2028 by the end of that year, the bill imposes consequences: future nominees for the Under Secretary of Defense (Comptroller) and the financial-management chiefs of the Army, Navy, and Air Force would have to be Certified Public Accountants with prior experience achieving clean audits; the Defense Finance and Accounting Service would have to transfer its non-defense payroll work (e.g., services for HHS) to another federal agency; and DFAS's mission statement would be revised. The bill also authorizes $300 million for automation, artificial intelligence, and financial-system upgrades, offset by canceling equivalent consulting contracts, and establishes a DoD Audit Committee—including congressional appointees—to oversee financial-statement audits, which must be conducted by an independent external auditor.
This affects DoD leadership, financial-management offices, DFAS, other federal agencies receiving DFAS services, and Congress's oversight role. The bill was introduced by Senator Ernst on February 24, 2026, and referred to the Senate Armed Services Committee; no further action has occurred, and it would need committee consideration and passage by both chambers before becoming law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on February 24, 2026. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does S. 3902 do?
- The RECEIPTS Act addresses the Department of Defense's long-standing inability to produce auditable financial statements, a problem Congress notes has persisted despite legal requirements dating back decades. The bill offers incentives for achieving a "clean" (unqualified) audit opinion after fiscal year 2028, including expanded authority for the Secretary of Defense and military departments to transfer or reprogram funds without as much prior congressional notice. It also phases out several existing periodic reporting requirements once a clean audit opinion is obtained. If DoD fails to achieve an unqualified audit opinion for fiscal year 2028 by the end of that year, the bill imposes consequences: future nominees for the Under Secretary of Defense (Comptroller) and the financial-management chiefs of the Army, Navy, and Air Force would have to be Certified Public Accountants with prior experience achieving clean audits; the Defense Finance and Accounting Service would have to transfer its non-defense payroll work (e.g., services for HHS) to another federal agency; and DFAS's mission statement would be revised. The bill also authorizes $300 million for automation, artificial intelligence, and financial-system upgrades, offset by canceling equivalent consulting contracts, and establishes a DoD Audit Committee—including congressional appointees—to oversee financial-statement audits, which must be conducted by an independent external auditor. This affects DoD leadership, financial-management offices, DFAS, other federal agencies receiving DFAS services, and Congress's oversight role. The bill was introduced by Senator Ernst on February 24, 2026, and referred to the Senate Armed Services Committee; no further action has occurred, and it would need committee consideration and passage by both chambers before becoming law.
- Has S. 3902 become law?
- Not yet. As of 24 Feb 2026, S. 3902 is introduced.
- Who sponsored S. 3902?
- S. 3902 was sponsored by Sen. Joni Ernst [R-IA] (Republican-IA), with 0 cosponsors.
- What's the latest action on S. 3902?
- Introduced (24 Feb 2026).
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