Audit the Pentagon Act of 2026

This bill requires the Department of Defense to obtain a clean audit opinion for its financial statements or face automatic spending reductions. If the Pentagon fails to achieve this by fiscal year 2026, non-exempt programs would lose 0.5% of funding in the first year of failure and 1% annually thereafter, with cuts applied across all programs within the affected department. Military personnel, reserve, National Guard, and Defense Health Program accounts are exempt from these reductions. Any funds saved through these cuts would be deposited into the General Fund for deficit reduction, not redirected to military operations.