Audit the Pentagon Act of 2023

S 2054, the "Audit the Pentagon Act of 2023," requires the Department of Defense (DoD) to obtain an unqualified audit opinion on its full financial statements by 2024. If a DoD component (like a military branch or agency) fails to achieve this by the end of the calendar year for any fiscal year after 2024, it faces a 1% reduction in its next fiscal year's funding. The withheld funds are distributed proportionally across all programs within that component and then deposited into the Treasury's general fund for deficit reduction. This bill directly affects all DoD financial components by linking their budget authority to audit compliance.