To amend title 10 to shorten breach reporting timelines, increase program transparency, and improve congressional oversight of Department of Defense cost overruns with respect to the cost growth for major systems, and for other purposes. | ChamberLight
Bills · HR 4372
IN COMMITTEE· 119TH CONGRESS
House BillHR 4372Armed Forces and National Security
To amend title 10 to shorten breach reporting timelines, increase program transparency, and improve congressional oversight of Department of Defense cost overruns with respect to the cost growth for major systems, and for other purposes.
INTRO JUL 14· LAST ACTION JUL 14
READING
4MIN
COSPONSORS
4BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill addresses a persistent issue: the tendency for large defense programs to experience significant cost overruns and schedule delays, costing taxpayers billions of dollars. By shortening reporting timelines and requiring more detailed cost breakdowns, it aims to provide earlier warnings and greater transparency into potential problems.
The most significant change is the "two strikes and you're out" rule for critical cost breaches. If a program repeatedly fails to control its costs, this bill removes the discretion to continue it, potentially preventing further wasteful spending. This means if the bill becomes law, the government might terminate failing programs sooner, saving money, whereas if it doesn't pass, programs could continue to accumulate costs even after multiple breaches, with less public oversight.
KEY PROVISIONS
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PROVISION 01
Shortens the deadline for the Department of Defense to report significant cost increases (Nunn-McCurdy breaches) for major defense programs to Congress to 30 days.
This ensures Congress receives crucial information about budget overruns much faster, allowing for more timely oversight.
PROVISION 02
Requires major defense acquisition programs to designate and report separately on individual 'end items' (major components) if each is projected to cost over $500 million over its lifetime.
This provides a more granular view of costs within complex programs, making it easier to pinpoint specific drivers of cost growth.
PROVISION 03
Mandates the public availability of all reports to Congress regarding major defense acquisition programs that have experienced critical cost overruns.
This significantly increases transparency, allowing the public to see justifications for continuing or terminating programs.
PROVISION 04
Establishes that if a major defense acquisition program experiences a second critical cost breach, the Secretary of Defense must terminate the program within 90 days.
This creates a strict 'two-strikes' rule, significantly limiting the ability to continue programs that repeatedly fail on cost control.
PROVISION 05
Requires termination plans for breached programs to consider options that maximize value to the government, such as completing items already in production if resale value exceeds completion cost.
This ensures that even when a program is terminated, efforts are made to recover or minimize losses for the taxpayer.
IN COMMITTEE· 119TH CONGRESS · ARMED SERVICES COMMITTEE · INTRODUCED JUL 14, 2025
House BillHR 4372Armed Forces and National Security
To amend title 10 to shorten breach reporting timelines, increase program transparency, and improve congressional oversight of Department of Defense cost overruns with respect to the cost growth for major systems, and for other purposes.
This bill addresses a persistent issue: the tendency for large defense programs to experience significant cost overruns and schedule delays, costing taxpayers billions of dollars. By shortening reporting timelines and requiring more detailed cost breakdowns, it aims to provide earlier warnings and greater transparency into potential problems.
The most significant change is the "two strikes and you're out" rule for critical cost breaches. If a program repeatedly fails to control its costs, this bill removes the discretion to continue it, potentially preventing further wasteful spending. This means if the bill becomes law, the government might terminate failing programs sooner, saving money, whereas if it doesn't pass, programs could continue to accumulate costs even after multiple breaches, with less public oversight.
KEY PROVISIONS
AI-extracted
high
Shortens the deadline for the Department of Defense to report significant cost increases (Nunn-McCurdy breaches) for major defense programs to Congress to 30 days.
This ensures Congress receives crucial information about budget overruns much faster, allowing for more timely oversight.
med
Requires major defense acquisition programs to designate and report separately on individual 'end items' (major components) if each is projected to cost over $500 million over its lifetime.
This provides a more granular view of costs within complex programs, making it easier to pinpoint specific drivers of cost growth.
high
Mandates the public availability of all reports to Congress regarding major defense acquisition programs that have experienced critical cost overruns.
This significantly increases transparency, allowing the public to see justifications for continuing or terminating programs.
high
Establishes that if a major defense acquisition program experiences a second critical cost breach, the Secretary of Defense must terminate the program within 90 days.
This creates a strict 'two-strikes' rule, significantly limiting the ability to continue programs that repeatedly fail on cost control.
med
Requires termination plans for breached programs to consider options that maximize value to the government, such as completing items already in production if resale value exceeds completion cost.
This ensures that even when a program is terminated, efforts are made to recover or minimize losses for the taxpayer.
Submission of unit cost reports or notifications to Congress after a cost increase determination
Within 30 days after the determination was made
Submission of notification to Congress after a cost increase determination based on quarterly or other reports
Not later than 90 days after conducting the reassessment
Termination of a major defense acquisition program after a second critical breach reassessment
GLOSSARY
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Title 10, United States Code
The section of federal law that governs the organization, duties, and powers of the United States Armed Forces.
Nunn-McCurdy breach
A legal threshold set by Congress where a major defense acquisition program experiences a significant cost increase, triggering specific reporting and review requirements.
Major defense acquisition program
A large-scale program for developing or acquiring military weapons systems or equipment, typically involving significant spending and complex technology.
Unit cost report
A report detailing the average cost of each individual item being developed or purchased within a major defense acquisition program.
Major subprogram
A distinct and expensive component or 'end item' within a larger major defense acquisition program that is tracked and reported separately.
Operations and support costs
The expenses related to running, maintaining, and supporting a military system or piece of equipment throughout its entire useful life, beyond just its development and initial purchase.
Critical cost growth termination
ACTION TIMELINE
2 EVENTS
JUL 14, 25
Introduced in House
INTROREFERRAL
JUL 14, 25
Referred to the House Committee on Armed Services.