Defense Budget Transparency Act of 2022

To require an independent study and report on the effect of pass-through budgeting on the Department of the Air Force, and for other purposes. 1. Short title This Act may be cited as the Defense Budget Transparency Act of 2022 2. Study and report on pass-through budgeting (a) Study required The Secretary of Defense shall seek to enter into an contract or other agreement with an independent research organization pursuant to which the organization will conduct a study on the effects of pass-through budgeting on the Department of the Air Force and other organizations and elements of the Department of Defense. (b) Elements The study under subsection (a) shall include the following: (1) For the period from fiscal year 2001 through fiscal year 2021— (A) the total amount of funds requested by each military department (as set forth in the budget of the President for each such fiscal year as submitted to Congress pursuant to section 1105(a) of title 31, United States Code), not including amounts subject to pass-through budgeting; and (B) the total amount of funds appropriated to each military department, not including amounts subject to pass-through budgeting. (2) For the period covered by the most recent future-years defense program submitted to Congress under section 221 of title 10, United States Code, an analysis of the positive and negative effects of pass-through budgeting on— (A) the budget of the Department of the Air Force; and (B) the budgets of other military departments, including the Armed Forces. (3) A determination as to whether pass-through budgeting creates an inaccurate impression among members of the public, Congress, and policy makers concerning— (A) the actual level of funding allocated to the Department of the Air Force over which it has spending authority; and (B) the actual level of funding allocated to Defense-wide accounts. (4) A determination as to whether any inaccurate impressions identified under paragraph (2) are detrimental to the mission of the Department of the Air Force. (5) A recommendation as to whether the funds included in the budget of the Department of the Air Force that are subject to pass-through budgeting should instead be included in a separate accounting line within that budget or allocated to another Defense-wide account. (c) Report Not later than February 15, 2023, the Secretary of Defense shall— (1) submit to the congressional defense committees a report on the results of the study conducted under subsection (a); and (2) make such report available on a publicly accessible website of the Department of Defense. (d) Form of report The report required under subsection (a) shall be submitted in unclassified form but may include a classified annex. Any classified annex included with such report shall not be subject to disclosure under subsection (c)(2). 3. Identification of funds subject to pass-through budgeting in annual budget requests Beginning with fiscal year 2024, in the budget justification materials submitted to Congress in support of the Department of Defense budget for each fiscal year (as submitted with the budget of the President under section 1105(a) of title 31), the amount requested for each military department shall include a separate line item that clearly identifies any amounts requested for such department that are subject to pass-through budgeting. 4. Definitions In this Act: (1) The term independent research organization (2) The term pass-through budgeting

Summary: Defense Budget Transparency Act of 2022 This bill requires research and specified action related to pass-through budgeting for military departments. Pass-through budgeting refers to the practice by which certain funds allocated for a military department are subject to the authority of other departments and agencies of the federal government but are included in the overall budget of the military department despite the department's lack of authority over the funds. Specifically, the bill requires the Department of Defense (DOD) to seek to enter a contract with an independent research organization to conduct a study on the effects of pass-through budgeting on the Department of the Air Force and other DOD organizations and elements. For each fiscal year beginning with FY2024, the budget justification materials submitted in support of the DOD budget must include separate line items for each military department to clearly identify any amounts requested that are subject to pass-through budgeting.