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Corps, or the Chief of Space Operations’’ and inserting 
‘‘the Commandant of the Marine Corps, the Chief of 
Space Operations, or the Chief of the National Guard Bu-
reau’’. 
SEC. 924. COAST GUARD INPUT TO THE JOINT REQUIRE-
MENTS OVERSIGHT COUNCIL. 
Section 181(d) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(5) INPUT
FROM
COMMANDANT
OF
COAST 
GUARD.—The Council shall seek, and strongly con-
sider, the views of the Commandant of the Coast 
Guard regarding Coast Guard capabilities in support 
of national defense.’’. 
SEC. 925. CODIFICATION OF THE DEFENSE INNOVATION 
UNIT AND ESTABLISHMENT OF THE NON-
TRADITIONAL INNOVATION FIELDING ENTER-
PRISE. 
(a) 
CODIFICATION
OF
DEFENSE
INNOVATION 
UNIT.— 
(1) IN
GENERAL.—Chapter 303 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
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‘‘§ 4127. Defense Innovation Unit 
‘‘(a) ESTABLISHMENT.—There is established in the 
Department of Defense a Defense Innovation Unit (re-
ferred to in this section as the ‘Unit’). 
‘‘(b) DIRECTOR AND DEPUTY DIRECTOR.—There is 
a Director and a Deputy Director of the Unit, each of 
whom shall be appointed by the Secretary of Defense from 
among persons with substantial experience in innovation 
and commercial technology, as determined by the Sec-
retary. 
‘‘(c) AUTHORITY OF DIRECTOR.—The Director is the 
head of the Unit. The Director— 
‘‘(1) shall serve as a principal staff assistant to 
the Secretary on matters within the responsibility of 
the Unit; 
‘‘(2) shall report directly to the Secretary of 
Defense without intervening authority; and 
‘‘(3) may communicate views on matters within 
the responsibility of the Unit directly to the Sec-
retary without obtaining the approval or concurrence 
of any other official within the Department of De-
fense. 
‘‘(d) RESPONSIBILITIES.—The Unit shall have the 
following responsibilities: 
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‘‘(1) Seek out, identify, and support the devel-
opment of commercial technologies that have the po-
tential to be implemented within the Department. 
‘‘(2) Accelerate the adoption of commercial 
technologies within the Department of Defense to 
transform military capacity and capabilities. 
‘‘(3) Serve as the principal liaison between the 
Department of Defense and individuals and entities 
in the national security innovation base, including, 
entrepreneurs, startups, commercial technology com-
panies, and venture capital sources. 
‘‘(4) Carry out programs, projects, and other 
activities to strengthen the national security innova-
tion base. 
‘‘(5) Coordinate the activities of other organiza-
tions and elements of the Department of Defense on 
matters relating to commercial technologies, dual 
use technologies, and the innovation of such tech-
nologies. 
‘‘(6) Coordinate and oversee the nontraditional 
defense innovation fielding enterprise established 
under section 4063 of this title. 
‘‘(7) Carry out such other activities as the Sec-
retary of Defense determines appropriate. 
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‘‘(e) SUPPORT FOR MULTI-STAKEHOLDER PARTNER-
SHIPS.— 
‘‘(1) The Director shall identify and support 
multi-stakeholder research and innovation partner-
ships that— 
‘‘(A) have the potential to generate tech-
nologies, processes, products, or other solutions 
that address national defense or security needs 
or otherwise benefit national defense or secu-
rity; and 
‘‘(B) have as an objective the technology 
transfer or commercialization the work product 
generated by the partnership. 
‘‘(2) Support provided by the Director to a 
multi-stakeholder research and innovation partner-
ship under this subsection may include providing re-
sources to the partnership, participating in the part-
nership, providing technical and technological advice 
and guidance to the partnership, suggesting and in-
troducing other participants for inclusion in the 
partnership, and providing the partnership with in-
sight into desired solutions for defense and security 
needs. 
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‘‘(3) To be eligible to receive support under this 
subsection a multi-stakeholder research and innova-
tion partnership shall be composed of— 
‘‘(A) one or more universities, colleges, or 
other institutions of higher education with re-
search and innovation capability; 
‘‘(B) one or more non-profit organizations 
that provide policy, research, outreach, oper-
ations, organizational, management, testing, 
evaluation, technology transfer, legal, financial, 
or advocacy expertise; 
‘‘(C) one or more for-profit commercial en-
terprises that may be publicly or privately 
owned, early stage or mature, and incorporated 
or operating by another ownership structure; 
and 
‘‘(D) one or more departments or agencies 
of the Federal Government with expertise, oper-
ations, or resources related to the subject mat-
ter of the multi-stakeholder research and inno-
vation partnership. 
‘‘(4) The areas of research and development 
covered by a multi-stakeholder research and innova-
tion partnership under this subsection may in-
clude— 
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‘‘(A) cybersecurity, quantum computing, or 
artificial intelligence; 
‘‘(B) geo-spatial imaging or geographic in-
formation systems; 
‘‘(C) aerodynamics, navigation, or wind re-
sistance management; 
‘‘(D) satellite operations, functionality, or 
utilization; 
‘‘(E) climate science or natural resource 
management; 
‘‘(F) clean energy generation, storage, dis-
tribution, and efficiency; 
‘‘(G) space-based operations, monitoring, 
and management; or 
‘‘(H) such other areas as the Director de-
termines appropriate. 
‘‘(5) On an annual basis, the Director shall 
submit to the Secretary of Defense a report on the 
activities, advances, outcomes, and work product of 
the multi-stakeholder research and innovation part-
nerships supported under this subsection.’’. 
(2) MODIFICATION OF AUTHORITY TO CARRY 
OUT CERTAIN PROTOTYPE PROJECTS.—Section 4022 
of title 10, United States Code, is amended— 
(A) in subsection (a)— 
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(i) in paragraph (1), by inserting ‘‘the 
Director of the Defense Innovation Unit,’’ 
after 
‘‘Defense 
Advanced 
Research 
Projects Agency,’’; 
(ii) in paragraph (2)(A), by inserting 
‘‘, the Defense Innovation Unit,’’ after 
‘‘Defense 
Advanced 
Research 
Projects 
Agency’’; and 
(iii) in paragraph (3), by inserting ‘‘, 
Defense Innovation Unit,’’ after ‘‘Defense 
Advanced Research Projects Agency’’; and 
(B) in subsection (e)(1)— 
(i) by redesignating subparagraphs 
(C) through (E) as subparagraphs (D) 
through (F), respectively; and 
(ii) by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) the Director of the Defense Innova-
tion Unit;’’. 
(3) MODIFICATION
OF
OTHER
TRANSACTION 
AUTHORITY.—Section 4021 of title 10, United 
States Code, is amended— 
(A) in subsection (b), by inserting ‘‘, the 
Defense Innovation Unit,’’ after ‘‘Defense Ad-
vanced Research Projects Agency’’; and 
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(B) in subsection (f), by striking ‘‘and the 
Defense Advanced Research Projects Agency’’ 
and inserting ‘‘, the Defense Innovation Unit, 
and the Defense Advanced Research Projects 
Agency’’. 
(4) CONFORMING AMENDMENTS.—Section 1766 
of title 10, United States Code, is amended— 
(A) in subsection (b), by striking ‘‘as de-
termined by the Under Secretary of Defense for 
Research and Engineering’’ and inserting ‘‘as 
determined by the Secretary of Defense’’; and 
(B) in subsection (c)(3), by striking ‘‘as di-
rected by the Under Secretary of Defense for 
Research and Engineering’’ and inserting ‘‘as 
directed by the Secretary of Defense’’. 
(b) ESTABLISHMENT OF NONTRADITIONAL INNOVA-
TION FIELDING ENTERPRISE.—Subchapter I of chapter 
303 of title 10, United States Code, is amended by insert-
ing after section 4062 the following new section: 
‘‘§ 4063. Nontraditional innovation fielding enterprise 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense 
shall designate within the Department of Defense a group 
of organizations to be known, collectively, as the ‘nontradi-
tional innovation fielding enterprise’ (referred to in this 
section as the ‘NIFE’). The purpose of the NIFE is to 
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streamline coordination and minimize duplication of ef-
forts among elements of the Department of Defense on 
matters relating to the development, procurement, and 
fielding of nontraditional capabilities. 
‘‘(b) COMPOSITION.—The NIFE shall consist of— 
‘‘(1) the Defense Innovation Unit; and 
‘‘(2) each organization designated as a service- 
level NIFE lead under subsection (c). 
‘‘(c) 
DESIGNATION
OF
SERVICE-LEVEL
NIFE 
LEADS.— 
‘‘(1) Not later than 120 days after the effective 
date of this section, each Secretary of a military de-
partment, in consultation with the Director of the 
Defense Innovation Unit, shall designate a single or-
ganization within each armed force under the juris-
diction of such Secretary to serve as the lead organi-
zation within that armed force on matters within the 
responsibility of the NIFE. Each organization so 
designated shall be known as a ‘service-level NIFE 
lead’. 
‘‘(2) An organization designated under para-
graph (1) shall be an organization of an armed force 
that— 
‘‘(A) exists as of the effective date of this 
section; and 
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‘‘(B) has a demonstrated ability to engage 
at scale with nontraditional defense contractors, 
as determined by the Secretary concerned. 
‘‘(d) LEADERSHIP.— 
‘‘(1) HEAD OF NIFE.—Subject to the authority, 
direction, and control of the Secretary of Defense, 
the Director of the Defense Innovation Unit shall 
serve as the head of the NIFE and, in such capac-
ity, shall be responsible for the overall oversight and 
coordination of the NIFE. 
‘‘(2) SERVICE-LEVEL LEADS.—Each head of an 
organization of an armed force designated as a serv-
ice-level NIFE lead under subsection (c) shall serve 
as the head of the NIFE within that armed force 
and, in such capacity, shall be responsible for the 
oversight and coordination of the activities of the 
NIFE within that armed force. 
‘‘(e) DUTIES.—The Director of the Defense Innova-
tion Unit shall carry out the following activities in support 
of the NIFE: 
‘‘(1) Coordinate with the Joint Staff and the 
commanders of the combatant commands to identify 
operational challenges that have the potential to be 
addressed through the use of nontraditional capabili-
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ties, including dual-use technologies, that are being 
developed and financed in the commercial sector. 
‘‘(2) Using funds made available to the Defense 
Innovation Unit for the activities of the NIFE— 
‘‘(A) select projects to be carried out by 
one or more of the service-level NIFE leads; 
‘‘(B) allocate funds to service-level NIFE 
leads to carry out such projects; and 
‘‘(C) monitor the execution of such 
projects by the service-level NIFE leads. 
‘‘(3) On a semiannual basis, submit to the Sec-
retary of Defense and the congressional defense 
committees a report on the progress of the projects 
described in paragraph (2). Each such report shall 
identify any gaps in resources or authorities that 
have the potential to disrupt the progress of such 
projects. 
‘‘(4) Serve as Chair of the NIFE Resource Ad-
visory Board under subsection (f). 
‘‘(5) Serve as the principal liaison between the 
Department of Defense, nontraditional defense con-
tractors, investors in nontraditional defense compa-
nies, and departments and agencies of the Federal 
Government pursing nontraditional capabilities simi-
lar to those pursued by the Department. 
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‘‘(6) Lead engagement with industry, academia, 
and other non-government entities to develop— 
‘‘(A) domestic capacity with respect to in-
novative, commercial, and dual-use technologies 
and the use of nontraditional defense contrac-
tors; and 
‘‘(B) the capacity of international allies 
and partners of the United States with respect 
to such technologies and the use of such con-
tractors. 
‘‘(f) NIFE RESOURCE ADVISORY BOARD.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Department of Defense an advisory board to be 
known as the ‘NIFE Resource Advisory Board’ (re-
ferred to in this subsection as the ‘Board’). 
‘‘(2) MEMBERS.—The Board shall be composed 
of the following members— 
‘‘(A) The Director of the Defense Innova-
tion Unit. 
‘‘(B) The head of each service-level NIFE 
lead. 
‘‘(C) The Director of the Joint Staff. 
‘‘(D) The Chief Digital and Artificial Intel-
ligence Officer of the Department of Defense. 
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HR 2670 RDS
‘‘(E) The Director of the Office of Stra-
tegic Capital of the Department of Defense. 
‘‘(3) CHAIR.—The Director of the Defense In-
novation Unit shall serve as Chair of the Board. 
‘‘(4) MEETINGS.—The Board shall meet annu-
ally and may meet more frequently at the call of the 
Chair. 
‘‘(5) RESPONSIBILITIES.—On an annual basis 
the Board shall— 
‘‘(A) identify not fewer than 10 objectives 
of the Department of Defense that have the po-
tential to be supported using nontraditional ca-
pabilities that are capable of being fielded at 
scale within a period of three years; and 
‘‘(B) for each objective identified under 
subparagraph (A)— 
‘‘(i) develop a specific set of require-
ments and a budget for the development 
and fielding of nontraditional capabilities 
to support such objective; and 
‘‘(ii) based on such budget and re-
quirements, solicit proposals from public 
and private sector entities for providing 
such capabilities. 
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‘‘(6) NONAPPLICABILITY OF CERTAIN REQUIRE-
MENTS.—Section 1013(a)(2) of title 5 (relating to 
the termination of advisory committees) shall not 
apply to the Board. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘nontraditional capability’ means 
a solution to an operational challenge that can sig-
nificantly leverage commercial innovation or external 
capital with minimal dependencies on fielded sys-
tems. 
‘‘(2) The term ‘nontraditional defense con-
tractor’ has the meaning given that term in section 
3014 of this title.’’. 
(c) EFFECTIVE DATE AND IMPLEMENTATION.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall take effect 180 days 
after the date of the enactment of this Act. 
(2) IMPLEMENTATION.—Not later than the ef-
fective date specified in paragraph (1), the Secretary 
of Defense shall issue or modify any rules, regula-
tions, policies, or other guidance necessary to imple-
ment the amendments made by subsections (a) and 
(b). 
(d) MANPOWER SUFFICIENCY EVALUATION.— 
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(1) EVALUATION.—The Secretary of Defense 
shall evaluate the staffing levels of the Defense In-
novation Unit as of the date of the enactment of this 
Act to determine if the Unit is sufficiently staffed to 
achieve the responsibilities of the Unit under sec-
tions 4063 and 4127 of title 10, United States Code, 
as added by subsections (a) and (b) of this section. 
(2) REPORT.—Not later than the effective date 
specified in subsection (c)(1), the Secretary of De-
fense shall submit to the Committees on Armed 
Services of the Senate and the House of Representa-
tives a report on the results of the evaluation under 
paragraph (1). The report shall include a plan— 
(A) to address any staffing shortfalls iden-
tified as a part of the assessment; and 
(B) for funding any activities necessary to 
address such shortfalls. 
SEC. 926. DESIGNATION OF EXPLOSIVE ORDNANCE DIS-
POSAL CORPS AS A BASIC BRANCH OF THE 
ARMY. 
(a) DESIGNATION
AS
BASIC
BRANCH.—Section 
7063(a) of title 10, United States Code, is amended— 
(1) in paragraph (12), by striking ‘‘and’’ at the 
end; 
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(2) by redesignating paragraph (13) as para-
graph (14); and 
(3) by inserting after paragraph (12) the fol-
lowing new paragraph: 
‘‘(13) Explosive Ordnance Disposal Corps; 
and’’. 
(b) ORGANIZATION AND FUNCTIONS.—Chapter 707 
of title 10, United States Code, is amended by adding at 
the end the following new section: 
‘‘§ 7085. Explosive Ordnance Disposal Corps: organi-
zation and functions 
‘‘(a) CHIEF OF CORPS.—There is a Chief of the Ex-
plosive Ordnance Disposal Corps of the Army. The Sec-
retary of the Army shall appoint the Chief from among 
general officers of the Army who are Explosive Ordnance 
Disposal qualified and are serving in the Logistics Corps 
as of the time of the appointment. The Secretary of the 
Army shall not assign any officer who has not served as 
an officer in the Explosive Ordnance Disposal Corps as 
the Chief of the Explosive Ordnance Disposal Corps. 
‘‘(b) FUNCTIONS.—The Explosive Ordnance Disposal 
Corps shall, at a minimum, perform functions relating 
to— 
‘‘(1) the disposal of explosive ordnance and mu-
nitions management; and 
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‘‘(2) ensuring the safety of explosives.’’. 
(c) CONFORMING REPEAL.—Section 582 of the Na-
tional Defense Authorization Act for Fiscal Year 2018 
(Public Law 115–91; 131 Stat. 1415) is repealed. 
(d) EFFECTIVE DATE.—The amendments and repeal 
made by subsections (a) through (c) shall take effect 180 
days after the date of the enactment of this Act. 
SEC. 927. REPEAL OF AUTHORITY TO APPOINT A NAVAL RE-
SEARCH ADVISORY COMMITTEE. 
Section 8024 of title 10, United States Code, is re-
pealed. 
SEC. 928. ELIGIBILITY OF MEMBERS OF SPACE FORCE FOR 
INSTRUCTION 
AT 
THE 
NAVAL 
POST-
GRADUATE SCHOOL. 
Section 8545 of title 10, United States Code, is 
amended— 
(1) in subsection (a)(1), by striking ‘‘and Coast 
Guard’’ and inserting ‘‘Space Force, and Coast 
Guard’’; and 
(2) in subsection (c), by striking ‘‘and Coast 
Guard’’ and inserting ‘‘Space Force, and Coast 
Guard’’. 
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SEC. 929. MEMBERSHIP OF THE AIR FORCE RESERVE 
FORCES POLICY COMMITTEE. 
Section 10305(b) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘consists of’’ and inserting 
‘‘shall have voting members, who shall be’’ before 
‘‘officers’’; 
(2) by redesignating paragraphs (1) through 
(3) as subparagraphs (A) through (C), respectively; 
(3) by inserting ‘‘(1)’’ before ‘‘The committee’’; 
and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2)(A) The committee shall have four nonvoting 
members, who shall be the Chief Master Sergeants of the 
Air Force, the Air Force Reserve, the Air National Guard, 
and the Space Force. 
‘‘(B) A nonvoting member who cannot attend a meet-
ing of the committee may designate a member in the grade 
of E-8 or E-9 to attend in their stead.’’. 
SEC. 930. FRAMEWORK FOR CLASSIFICATION OF AUTONO-
MOUS CAPABILITIES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Chief Digital and 
Artificial Intelligence Officer of the Department of De-
fense, in consultation with the Under Secretary of Defense 
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for Policy, the Under Secretary of Defense for Research 
and Engineering, the commanders of the combatant com-
mands, and the Secretaries of the military departments, 
shall establish a Department-wide classification frame-
work for autonomous capabilities. 
(b) PURPOSE.—The purpose of the framework re-
quired under subsection (a) shall be to facilitate the devel-
opment of a common understanding within the Depart-
ment of Defense of autonomous capabilities and related 
operational requirements to better plan for, resource, and 
integrate appropriate autonomy-enabling hardware and 
software into current and future systems across the De-
partment. 
(c) AUTONOMY CLASSIFICATION FRAMEWORK.—At a 
minimum, the framework required under subsection (a) 
shall— 
(1) include multiple levels of increasingly com-
plex autonomous maneuver capability with a focus 
on classifying necessary levels of human supervision 
or control during operational use; 
(2) apply to current and future autonomous 
systems operating across land, air, maritime, and 
space domains; 
(3) include estimates of costs necessary to 
achieve specific levels of autonomous capability; and 
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(4) include— 
(A) operational requirements including 
necessary levels of survivability in GPS- or com-
munications-denied environments; 
(B) specific operational or engagement sce-
narios; and 
(C) necessary levels of teaming with other 
autonomous systems. 
(d) PROGRESS REPORT.—Not later than 30 days 
after the establishment of the framework under subsection 
(a), the Chief Digital and Artificial Intelligence Officer 
shall submit to the congressional defense committees a re-
port that includes a description of the framework and the 
specific methodologies, criteria, and operational require-
ments used to develop the classifications under the frame-
work. 
(e) REGULAR REASSESSMENT.— 
(1) IN
GENERAL.—Not less frequently than 
once every two years, the Chief Digital and Artificial 
Intelligence Officer shall reassess and update the 
classification framework required under subsection 
(a) to ensure the framework incorporates recent de-
velopments in technology, standards, and operational 
requirements relating to autonomous capabilities. 
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(2) BRIEFING.—Not later than 30 days of the 
completion of each reassessment under paragraph 
(1), the Chief Digital and Artificial Intelligence Offi-
cer shall provide to the congressional defense com-
mittees a briefing on the results of the reassessment 
and any resulting revisions to the classification 
framework under subsection (a). 
(f) IMPLEMENTATION.—Not later than 90 days after 
the establishment of the framework under subsection (a), 
the Under Secretary of Defense for Policy shall issue in-
structions to the military departments to implement such 
framework by operationalizing the use of the framework 
in the planning and budgeting processes of individual pro-
gram offices. 
(g) PLAN FOR INTEGRATION OF AUTONOMOUS CAPA-
BILITIES INTO SYSTEMS OF THE DEPARTMENT OF DE-
FENSE.— 
(1) PLAN REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the 
Chief Digital and Artificial Intelligence Officer of 
the Department of Defense shall develop and imple-
ment a plan and procedures to standardize the plan-
ning, resourcing, and integration efforts with respect 
to autonomous capabilities for current and future 
systems across the Department. 
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(2) ELEMENTS.—The plan required under 
paragraph (1) shall include the following: 
(A) A Department-wide assessment of the 
status of efforts to resource and integrate au-
tonomy software into current and future sys-
tems, including— 
(i) the identification of current and 
future systems across the Department 
which can be integrated with autonomy 
software to enable continuous operational 
capability of such systems in GPS- or com-
munications-denied environments, includ-
ing those systems identified in the report 
required by section 246 of the National 
Defense Authorization Act for Fiscal Year 
2022 (Public Law 117–81; 135 Stat. 
1622); and 
(ii) an assessment of gaps in— 
(I) program funding related to 
the acquisition of autonomy software; 
(II) acquisition processes, includ-
ing the planning, programming, budg-
eting, and execution process for ac-
quiring and integrating autonomy-en-
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abling capabilities across relevant pro-
grams of record; 
(III) training capabilities; 
(IV) 
testing, 
evaluation, 
verification, and validation capabilities 
in all environments, including virtual 
and real world environments; and 
(V) efforts to test, resource, and 
scale commercially available tech-
nologies. 
(B) A plan to address, to the maximum ex-
tent practicable, the gaps assessed in subpara-
graph (A), including— 
(i) updated procedures to plan for au-
tonomy software costs at the onset of the 
acquisition life cycle; 
(ii) plans to include in greater detail 
the projected autonomy software costs for 
applicable programs of record within pe-
riod covered by the Future Years Defense 
Program; and 
(iii) plans to standardize the acquisi-
tion of autonomy software for programs of 
record across the military departments in-
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cluding the use of the capability classifica-
tion framework under subsection (a). 
(3) CONSULTATION.—The Chief Digital and 
Artificial Intelligence Officer shall develop the plan 
under paragraph (1) in consultation with— 
(A) the Under Secretary of Defense for 
Acquisition and Sustainment; 
(B) the Joint Chiefs of Staff; 
(C) the senior acquisition executive of each 
military department; 
(D) the commanders of the combatant 
commands; and 
(E) such other organizations and elements 
of the Department of Defense as the Chief Dig-
ital and Artificial Intelligence Officer deter-
mines appropriate. 
(4) REPORT.— 
(A) IN GENERAL.—Not later than 90 days 
after the completion of the plan under para-
graph (1), the Chief Digital and Artificial Intel-
ligence Officer shall submit to the congressional 
defense committees a report that describes the 
specific elements of the plan. 
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(B) FORM.—The report under subpara-
graph (A) shall be submitted in unclassified 
form but may contain a classified annex. 
SEC. 931. COMPREHENSIVE ASSESSMENT OF FORCE DE-
SIGN MODERNIZATION EFFORTS OF THE MA-
RINE CORPS. 
(a) IN GENERAL.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall seek to enter into a contract with a federally funded 
research and development center to conduct an inde-
pendent review, assessment, and analysis of the mod-
ernization initiatives Marine Corps. 
(b) ELEMENTS.—The report required under sub-
section (a) shall include the following elements: 
(1) An assessment of changes in the National 
Defense Strategy, Defense Planning Guidance, Joint 
Warfighting Concept, and other strategic documents 
and concepts that informed the force design mod-
ernization requirements of the Marine Corps. 
(2) An assessment of how the Marine Corps 
should be structured, organized, trained, equipped, 
and postured to meet the challenges of future com-
petition, crisis, and conflict. 
(3) An assessment of the ability of the defense 
innovation base and defense industrial base to de-
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velop and produce the technologies required to im-
plement the force design modernization of the Ma-
rine Corps on a timeline and at production rates suf-
ficient to sustain military operations. 
(4) An assessment of forward infrastructure, 
and 
the 
extent 
to 
which 
installations 
are 
operationalized to deter, compete, and prevail during 
conflict in support of the modernization of the Ma-
rine Corps. 
(5) An assessment of the current retention and 
recruiting environment and the ability of the Marine 
Corps to sustain manpower requirements necessary 
for operational requirements under title 10, United 
States Code. 
(6) The extent to which the modernization ini-
tiatives within the Marine Corps are nested within 
applicable joint warfighting concepts. 
(7) An assessment of whether the moderniza-
tion of the Marine Corps is consistent with the strat-
egy of integrated deterrence. 
(8) An assessment of the ability of the Marine 
Corps to generate required force elements for the 
Immediate Ready Force and the Contingency Ready 
Force. 
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(9) The extent to which the modernized capa-
bilities of the Marine Corps can be integrated across 
the Joint Force, including warfighting concepts at 
the combatant command level. 
(10) The extent to which the modernization ef-
forts of the Marine Corps meet the requirements of 
current and future plans of combatant commanders 
and global force management operations. 
(11) The extent to which modeling and simula-
tion, experimentation, wargaming, and other analytic 
methods have supported the changes to the mod-
ernization initiatives of the Marine Corps. 
(12) An inventory of existing or planned invest-
ments associated with the modernization efforts of 
the Marine Corps, disaggregated by the following ca-
pability areas: 
(A) Command and Control. 
(B) Information. 
(C) Intelligence. 
(D) Fires. 
(E) Movement and Maneuver. 
(F) Protection. 
(G) Sustainment. 
(13) An assessment of how observations regard-
ing the invasion and defense of Ukraine affect the 
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feasibility, advisability, and suitability of the mod-
ernization of the Marine Corps. 
(c) REPORT.— 
(1) IN
GENERAL.—Not later than 270 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
defense committees a report on the results of the as-
sessment required under subsection (a). 
(2) FORM
OF
REPORT.—The report required 
under paragraph (1) shall be submitted in unclassi-
fied form, but may include a classified annex to the 
extent required to ensure that the report is accurate 
and complete. 
(d) EFFECT ON OTHER REQUIREMENTS.—Effective 
on the date of the submittal of the report under subsection 
(c)(1), the requirement to submit a briefing pursuant to 
section 1023 of the Joint Explanatory Statement accom-
panying the James M. Inhofe National Defense Authoriza-
tion Act for Fiscal Year 2023 (Public Law 117–263), shall 
cease to have force or effect. 
SEC. 932. ENHANCING DEPARTMENT OF DEFENSE COORDI-
NATION OF GEOECONOMIC AFFAIRS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall conduct a review of the planning, resourcing, and 
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contributions of the Department of Defense to interagency 
efforts with respect to geoeconomic affairs. 
(b) DUTIES.—The review required under subsection 
(a) shall include the following: 
(1) A Department-wide assessment of capabili-
ties to— 
(A) assess geoeconomic competition be-
tween the United States and strategic competi-
tors; 
(B) identify methods to partner with gov-
ernments and key commercial entities; and 
(C) to support United States national in-
terests. 
(2) An assessment of any gaps in— 
(A) existing departmental commercial due 
diligence and commercial partnership processes 
and procedures to enable sustainable coopera-
tion with governmental and commercial entities 
within the United States and between the 
United States and trusted allies and partners 
for national defense purposes; 
(B) efforts by the combatant commands to 
develop and to coordinate expertise on how 
strategic competitors may use economic and 
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HR 2670 RDS
supply chain strategies within the areas of re-
sponsibility of the combatant commands; 
(C) the contributions of the Department to 
the coordinated use of existing industrial base 
and supply chain tools, acquisition and budget 
authorities, industrial security oversight, tech-
nology transfer and export controls, cybersecu-
rity standards and oversight, and mergers and 
acquisition reviews to enhance innovation and 
industrial cooperation and to protect the de-
fense capabilities of the United States and its 
allies; and 
(D) the contributions of the Department to 
existing measures to safeguard the intellectual 
property and knowledge created from United 
States Government and private sector research 
and development funding while encouraging, 
where appropriate, the sharing of such knowl-
edge with trusted allies and partners. 
(3) A plan to address, to the maximum extent 
practicable, the gaps assessed under paragraph (2). 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report con-
taining— 
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(1) the findings of the review required under 
subsection (a); 
(2) a list of gaps identified by the assessment 
required under subsection (b)(2); 
(3) for each identified gap, a description of the 
gap and an assessment of any legal authorities, 
budgeting and execution processes, or other issues 
the Secretary deems necessary to address the gap; 
(4) the plan required under subsection (b)(3); 
and 
(5) any other information the Secretary con-
siders appropriate. 
(d) DEFINITION OF GEOECONOMICS.—In this sec-
tion, the term ‘‘geoeconomics’’ means the global inter-
action between competing national security and economic 
priorities comprising the various activities undertaken be-
tween governments, allies, competitors, producers, and 
consumers, including— 
(1) how economics, technological innovation, 
and geography affect the distribution of capabilities 
in the international system; and 
(2) how states use economic and technological 
instruments in pursuit of their strategic interests. 
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SEC. 933. FUTURE FORCE DESIGN OF THE DEPARTMENT OF 
THE AIR FORCE. 
(a) SENSE OF CONGRESS.—It is the Sense of Con-
gress that— 
(1) the Department of the Air Force has made 
significant progress in organizing, training, and 
equipping the Air Force and Space Force to address 
the needs of the Joint Force and align with the cur-
rent National Defense Strategy and National Mili-
tary Strategy; and 
(2) to be prepared to effectively deter and de-
feat a peer adversary, the Department must address 
force design requirements that will enable equipment 
modernization, organizational restructure, and ca-
pacity adjustments to meet the challenges presented 
by the People’s Republic of China. 
(b) FORCE DESIGN REQUIRED.—Not later than Au-
gust 31, 2024, the Secretary of the Air Force shall develop 
a force design for the Air Force and Space Force projected 
through 2050. 
(c) ELEMENTS.—The force design under subsection 
(b) shall address— 
(1) the concepts, capabilities, and structural 
elements (including size and form) of the Air Force 
and Space Force that are necessary to ensure those 
forces effectively execute their core functions 
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HR 2670 RDS
through 2050 in support of the National Defense 
Strategy and the National Military Strategy; 
(2) force structure, including the development 
of capabilities (including platforms and systems) at 
the right level of capacity to address the challenges 
outlined by the National Defense Strategy and Na-
tional Military Strategy; 
(3) force composition, including recruitment 
and development of the human capital, effective dis-
tribution of forces in the total force and policies to 
increase career flexibility across the different compo-
nents; 
(4) organizational design, including develop-
ment of potential models to increase agility and 
operational effectiveness across the Air Force and 
Space Force; and 
(5) such other matters as the Secretary of the 
Air Force determines to be relevant. 
(d) INFORMATION TO CONGRESS.—Not later than 60 
days after completion of the force design required under 
subsection (b), the Secretary of the Air Force shall— 
(1) submit a summary of the force design to 
the congressional defense committees; and 
(2) provide to the congressional defense com-
mittees a briefing on the force design. 
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HR 2670 RDS
SEC. 934. ADDITION OF COLLEGE OF INTERNATIONAL SE-
CURITY AFFAIRS TO NATIONAL DEFENSE 
UNIVERSITY. 
Section 2165(b) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraph (6) as para-
graph (7); and 
(2) by inserting after paragraph (5) the fol-
lowing new paragraph (6): 
‘‘(6) The College of International Security Af-
fairs.’’. 
Subtitle C—Space National Guard 
SEC. 951. ESTABLISHMENT OF SPACE NATIONAL GUARD. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established a Space 
National Guard that is part of the organized militia 
of the several States and Territories, Puerto Rico, 
and the District of Columbia— 
(A) in which the Space Force operates or 
where there are significant space launch or mis-
sion control facilities; and 
(B) active and inactive. 
(2) RESERVE
COMPONENT.—There is estab-
lished a Space National Guard of the United States 
that is the reserve component of the United States 
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HR 2670 RDS
Space Force all of whose members are members of 
the Space National Guard. 
(b) COMPOSITION.—The Space National Guard shall 
be composed of the Space National Guard forces of the 
several States and Territories, Puerto Rico and the Dis-
trict of Columbia— 
(1) in which the Space Force operates; and 
(2) active and inactive. 
SEC. 952. NO EFFECT ON MILITARY INSTALLATIONS. 
Nothing in this subtitle, or the amendments made by 
this subtitle, shall be construed to authorize or require the 
relocation of any facility, infrastructure, or military instal-
lation of the Space National Guard or Air National Guard. 
SEC. 953. IMPLEMENTATION OF SPACE NATIONAL GUARD. 
(a) REQUIREMENT.—Except as specifically provided 
by this subtitle, the Secretary of the Air Force and Chief 
of the National Guard Bureau shall implement this sub-
title, and the amendments made by this subtitle, not later 
than 18 months after the date of the enactment of this 
Act. 
(b) BRIEFINGS.—Not later than 90 days after the 
date of the enactment of this Act, and annually for the 
five subsequent years, the Secretary of the Air Force, 
Chief of the Space Force and Chief of the National Guard 
Bureau shall jointly provide to the congressional defense 
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HR 2670 RDS
committees a briefing on the status of the implementation 
of the Space National Guard pursuant to this subtitle and 
the amendments made by this subtitle. This briefing shall 
address the current missions, operations and activities, 
personnel requirements and status, and budget and fund-
ing requirements and status of the Space National Guard, 
and such other matters with respect to the implementation 
and operation of the Space National Guard as the Sec-
retary and the Chiefs jointly determine appropriate to 
keep Congress fully and currently informed on the status 
of the implementation of the Space National Guard. 
SEC. 954. CONFORMING AMENDMENTS AND CLARIFICA-
TION OF AUTHORITIES. 
(a) DEFINITIONS.— 
(1) TITLE 10, UNITED STATES CODE.—Title 10, 
United States Code, is amended— 
(A) in section 101(c)— 
(i) by redesignating paragraphs (6) 
and (7) as paragraphs (8) and (9), respec-
tively; and 
(ii) by inserting after paragraph (5) 
the following new paragraphs: 
‘‘(6) The term ‘Space National Guard’ means 
that part of the organized militia of the several 
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HR 2670 RDS
States and territories, Puerto Rico, and the District 
Of Columbia, active and inactive, that— 
‘‘(A) is a space force; 
‘‘(B) is trained, and has its officers ap-
pointed under the sixteenth clause of section 8, 
article I of the Constitution; 
‘‘(C) is organized, armed, and equipped 
wholly or partly at Federal expense; and 
‘‘(D) is federally recognized. 
‘‘(7) The term ‘Space National Guard of the 
United States’ means the reserve component of the 
Space Force all of whose members are members of 
the Space National Guard.’’; and 
(B) in section 10101— 
(i) in the matter preceding paragraph 
(1), by inserting ‘‘the following’’ before the 
colon; and 
(ii) by adding at the end the following 
new paragraph: 
‘‘(8) The Space National Guard of the United 
States.’’. 
(2) TITLE 32, UNITED STATES CODE.—Section 
101 of title 32, United States Code is amended— 
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(A) 
by 
redesignating 
paragraphs 
(8) 
through (19) as paragraphs (10) and (21), re-
spectively; and 
(B) by inserting after paragraph (7) the 
following new paragraphs: 
‘‘(8) The term ‘Space National Guard’ means 
that part of the organized militia of the several 
States and territories, Puerto Rico, and the District 
Of Columbia, in which the Space Force operates, ac-
tive and inactive, that— 
‘‘(A) is a space force; 
‘‘(B) is trained, and has its officers ap-
pointed under the sixteenth clause of section 8, 
article I of the Constitution; 
‘‘(C) is organized, armed, and equipped 
wholly or partly at Federal expense; and 
‘‘(D) is federally recognized. 
‘‘(9) The term ‘Space National Guard of the 
United States’ means the reserve component of the 
Space Force all of whose members are members of 
the Space National Guard.’’. 
(b) RESERVE COMPONENTS.—Chapter 1003 of title 
10, United States Code, is amended— 
(1) by adding at the end the following new sec-
tions: 
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‘‘§ 10115. Space National Guard of the United States: 
composition 
‘‘The Space National Guard of the United States is 
the reserve component of the Space Force that consists 
of— 
‘‘(1) federally recognized units and organiza-
tions of the Space National Guard; and 
‘‘(2) members of the Space National Guard who 
are also Reserves of the Space Force. 
‘‘§ 10116. Space National Guard: when a component of 
the Space Force 
‘‘The Space National Guard while in the service of 
the United States is a component of the Space Force. 
‘‘§ 10117. Space National Guard of the United States: 
status when not in Federal service 
‘‘When not on active duty, members of the Space Na-
tional Guard of the United States shall be administered, 
armed, equipped, and trained in their status as members 
of the Space National Guard.’’; and 
(2) in the table of sections at the beginning of 
such chapter, by adding at the end the following new 
items: 
‘‘10115. Space National Guard of the United States: composition. 
‘‘10116. Space National Guard: when a component of the Space Force. 
‘‘10117. Space National Guard of the United States: status when not in Federal 
service.’’. 
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TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2024 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $6,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
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(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. REQUIREMENT FOR A COVERED ARMED FORCE 
TO SUBMIT POSTURE STATEMENTS IN SUP-
PORT OF CONGRESSIONAL BUDGET PROC-
ESS. 
(a) FINDING.—Congress finds that since the mid- 
20th century, as a matter of custom, the Secretary of De-
fense and the chiefs of the Armed Forces have provided 
written annual posture statements outlining budget prior-
ities to Congress as a part of the annual budget process. 
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(b) REQUIREMENT.—Prior to the annual budget 
hearings of the congressional defense committees for fiscal 
year 2025, and each subsequent fiscal year, the Secretary 
of Defense, the Secretary of each Military Department, 
and the chief of each covered Armed Force shall submit 
to the congressional defense committees a written posture 
statement in support of budget priorities. Each such pos-
ture statement shall include each of the following: 
(1) An identification of the budget priorities of 
the department or Armed Force. 
(2) An identification of strategic requirements 
to support the role of the Department or Armed 
Force in the national defense of the United States. 
(3) An explanation of how resources are being 
applied to the national defense roles and responsibil-
ities of the Department or Armed Force. 
(4) Programmatic matters related to the roles 
and responsibilities of the Department or Armed 
Force. 
(c) COVERED ARMED FORCE.—The term covered 
Armed Force means the following: 
(1) The Army. 
(2) The Navy. 
(3) The Marine Corps. 
(4) The Air Force. 
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(5) The Space Force. 
SEC. 1003. ESTABLISHMENT OF A BLOCKCHAIN-DISTRIB-
UTED LEDGER TECHNOLOGIES-SMART CON-
TRACTS DEFENSE APPLICATIONS WORKING 
GROUP. 
(a) ESTABLISHMENT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish a working group to be known as 
the ‘‘Blockchain-Distributed Ledger Technologies-Smart 
Contracts Defense Applications Working Group’’ (referred 
to in this section as the ‘‘Working Group’’). The Working 
Group shall identify potential applications for blockchain 
technology, smart contracts, or distributed ledger tech-
nologies in the processes of the Department of Defense. 
(b) MEMBERSHIP.—The Working Group shall be 
composed of representatives of the following: 
(1) The elements of the Department of Defense 
as described in paragraphs (1) through (10) of sec-
tion 111(b) of title 10, United States Code. 
(2) The Office of Science and Technology Pol-
icy. 
(3) Relevant private sector entities. 
(4) Academic institutions. 
(c) RESOURCES.—The Working Group shall use Fed-
eral studies, reports, or other available resources to inform 
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the use of blockchain technology, smart contracts, or dis-
tributed ledger technologies to improve efficiencies at the 
Department of Defense and efficiencies or functions of 
each of the Armed Forces. 
(d) POLICIES.—Not later than April 1, 2024, the 
Secretary of Defense shall issue policies for the activities 
of the Working Group. 
(e) SUPPORT.—The joint federation of capabilities es-
tablished under section 937 of the National Defense Au-
thorization Act for Fiscal Year 2014 (Public Law 113– 
66; 10 U.S.C. 2224) shall provide administrative support 
to the working group. 
(f) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to allow the Secretary of Defense 
to provide any competitive advantage to any participant 
of the Working Group. 
(g) SUNSET.—This section and the Working Group 
established under this section shall terminate on Decem-
ber 31, 2028. 
SEC. 1004. DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES. 
(a) OFFICE OF NAVAL INTELLIGENCE MARITIME IN-
TELLIGENCE SUPPORT.—In section 4501 of division D, 
relating to Drug Interdiction and Counter-Drug Activities, 
increase the amount for Counter-Narcotics Support, line 
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010, by $5,000,000 for Global Trader in the Office of 
Naval Intelligence Maritime Intelligence Support. 
(b) U.S. NORTHERN COMMAND MEXICO OFFICE OF 
DEFENSE COOPERATION.—In section 4501 of division D, 
relating to Drug Interdiction and Counter-Drug Activities, 
increase the amount for Counter-Narcotics Support, line 
010, by $5,000,000 for the U.S. Northern Command Mex-
ico Office of Defense Cooperation. 
(c) ADVANCED ANALYTICS
FOR GLOBAL THREAT 
NETWORK DISRUPTION.—In section 4501 of division D, 
relating to Drug Interdiction and Counter-Drug Activities, 
increase the amount for Counter-Narcotics Support, line 
010, by $5,000,000 for Advanced Analytics for Global 
Threat Network Disruption. 
(d) OPERATION
AND
MAINTENANCE
DEFENSE- 
WIDE.—In section 4301 of division D, relating to Oper-
ation and Maintenance Defense-Wide, reduce the amount 
for Office of the Secretary of Defense, line 490, by 
$15,000,000. 
SEC. 1005. REPORT ON PROGRESS AND CHALLENGES TO 
ACHIEVING AN UNQUALIFIED AUDIT OPIN-
ION. 
(a) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
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port on the progress made by each component of the De-
partment of Defense that has not yet received an unquali-
fied audit opinion on the progress made and the signifi-
cant outstanding challenges toward achieving an unquali-
fied opinion. 
(b) ELEMENTS.—The report required under sub-
section (a) shall include— 
(1) a ranking of each of the components that 
is under standalone audit or being audited as part 
of the Department of Defense consolidated audit 
that has yet to receive an unqualified audit opinion 
in order of how advanced each component is in 
achieving an unqualified audit opinion; 
(2) a detailed summary of the outstanding fi-
nancial, technological, and personnel requirements to 
enable each component to receive an unqualified 
audit opinion; 
(3) a detailed summary of the financial invest-
ments made during the fiscal year preceding the fis-
cal year during which the report is submitted in ef-
forts to modernize the business and financial ac-
counting systems of the Department; 
(4) a status update of the implementation of 
the Department of the recommendations of the 
Comptroller General included in the report titled 
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‘‘DoD needs to Improve System Oversight’’ (GAO- 
23-104539); and 
(5) a summary of the strategy of the Depart-
ment to address shortfalls and potential future 
training and skills gaps in the financial accounting 
and oversight workforce. 
SEC. 1005A. AUDIT REQUIREMENT FOR DEPARTMENT OF 
DEFENSE COMPONENTS. 
(a) IN GENERAL.—During fiscal year 2024, and dur-
ing each of the nine fiscal years thereafter, each compo-
nent of the Department of Defense shall be subject to an 
independent audit. Any such component that fails to be 
subject to such an audit during any fiscal year shall have 
1.5 percent of unobligated amounts available for the com-
ponent be cancelled and returned to the general fund of 
the Treasury for deficit reduction, except as provided in 
subsection (b). 
(b) EXCEPTIONS.—The following accounts are ex-
cluded from any reductions: 
(1) Military personnel, reserve personnel, and 
National Guard personnel accounts of the Depart-
ment of Defense. 
(2) The Defense Health Program account of 
the Department of Defense. 
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SEC. 1005B. DEPARTMENT OF DEFENSE SPENDING REDUC-
TIONS IN ABSENCE OF SUBMITTED FINAN-
CIAL STATEMENTS OR FAILURE TO ACHIEVE 
UNQUALIFIED OR QUALIFIED INDEPENDENT 
AUDIT OPINION. 
(a) APPLICABILITY.— 
(1) IN GENERAL.—Subject to paragraph (2), 
this section applies to the Department of Defense, 
including military departments and Defense Agen-
cies thereof. 
(2) SEPARATE
APPLICABILITY.—If a military 
department or Defense Agency is identified by the 
Director of the Office of Management and Budget as 
required to have its own audited financial statement 
under section 3515 of title 31, United States Code, 
that military department and Defense Agency shall 
be treated separately from the Department of De-
fense for purposes of application of this section. 
(b) DEFINITIONS.—In this section: 
(1) The terms ‘‘financial statement’’ and ‘‘ex-
ternal independent auditor’’ have the meanings given 
those terms in section 3521(e) of title 31, United 
States Code. 
(3) The term ‘‘unqualified’’, with respect to the 
audit status of a financial statement, includes the 
characterizations clean and unmodified. 
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(2) The term ‘‘qualified’’, with respect to the 
audit status of a financial statement, includes the 
characterization modified. 
(c) 
ADJUSTMENTS
FOR
FINANCIAL
ACCOUNT-
ABILITY.— 
(1) IN GENERAL.—On March 2 of each fiscal 
year, the discretionary budget authority available for 
the Department of Defense (or a military depart-
ment or Defense Agency covered by subsection 
(a)(2)) for such fiscal year shall be adjusted as pro-
vided in paragraph (2). 
(2) ADJUSTMENT.—If the Department of De-
fense (or a military department or Defense Agency 
covered by subsection (a)(2)) has not submitted a fi-
nancial statement for the previous fiscal year, or if 
such financial statement has not received either an 
unqualified or a qualified audit opinion by an inde-
pendent external auditor, the discretionary budget 
authority available for the Department of Defense, 
the military department, or the Defense Agency (as 
the case may be) shall be reduced by .5 percent, 
with the reduction applied proportionately to each 
account (other than an account listed in subsection 
(d) or an account for which a waiver is made under 
subsection (e)). 
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(3) 
MINIMIZES
NATIONAL
SECURITY
EF-
FECTS.—Consistent with applicable laws, the Sec-
retary of Defense may make any reduction under 
paragraph (2) in a manner that minimizes any effect 
on national security. 
(4) DEFICIT REDUCTION.—An amount equal to 
the total amount of any reduction under paragraph 
(2) shall be retained in the general fund of the 
Treasury for the purposes of deficit reduction. 
(d) ACCOUNTS EXCLUDED.—The following accounts 
are excluded from any reductions referred to in subsection 
(c)(2): 
(1) Military personnel, reserve personnel, and 
National Guard personnel accounts of the Depart-
ment of Defense. 
(2) The Defense Health Program account of 
the Department of Defense. 
(e) WAIVER.—The President may waive subsection 
(c)(2) with respect to an account if the President certifies 
that applying the subsection to that account would harm 
national security or members of the Armed Forces who 
are deployed in combat zones. 
(f) REPORT.—Not later than 60 days after an adjust-
ment under subsection (c), the Director of the Office of 
Management and Budget shall submit to Congress a re-
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port describing the amount and account of each adjust-
ment. 
Subtitle B—Counterdrug Activities 
SEC. 1006. DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES. 
Section 112(a)(3) of title 32, United States Code, is 
amended by striking ‘‘$5,000’’ and inserting ‘‘$15,000’’. 
SEC. 1007. THREAT ANALYSIS REGARDING FENTANYL CRI-
SIS. 
(a) THREAT ANALYSIS.—The Secretary of Defense, 
in consultation with the Director of the Defense Threat 
Reduction Agency and Office of the Deputy Assistant Sec-
retary of Defense for Counternarcotics and Stabilization 
Policy, shall conduct a threat analysis of any potential 
threats the illicit fentanyl drug trade poses to the defense 
interests of the United States. The threat analysis shall 
contain the following: 
(1) An analysis of the illicit fentanyl drug 
trade, including the manufacture, distribution, and 
sale or trade, and trans-shipment of fentanyl and 
fentanyl-related substances. 
(2) An analysis of new or emerging techniques 
or technologies that are likely to affect the evolution 
of the illicit fentanyl drug trade. 
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(3) An analysis of United States laws, executive 
orders, secretarial orders, and agency actions that 
are likely affecting the evolution of the illicit 
fentanyl drug trade over the Southern border of the 
United States. 
(b) REPORT.—Not later than March 31, 2024, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report that includes each of the fol-
lowing: 
(1) The threat analysis required under sub-
section (a), including any recommendations of the 
Secretary for any related actions. 
(2) Any actions the Department of Defense has 
taken in response to such threat analysis. 
(3) Any other matter the Secretary determines 
appropriate. 
SEC. 1008. REPORT ON ROLE OF DEPARTMENT OF DEFENSE 
IN SUPPORTING NATIONAL EMERGENCY DEC-
LARATION COMBATING FENTANYL CRISIS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the declaration of a national emergency by 
the President to address the unusual and extraor-
dinary threat to the national security, foreign policy, 
and economy of the United States posed by inter-
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national drug trafficking is an appropriate whole-of- 
Government response to the problems posed by drug 
trafficking and, in particular, fentanyl; 
(2) the counternarcotics activities of the De-
partment of Defense encompass unique capabilities 
that are critical for the efforts of the United States 
Government to combat the trafficking of illegal 
drugs, including fentanyl; and 
(3) Department of Defense support for drug 
interdiction capacity and capability should be lever-
aged by Federal, State, local, and tribal law enforce-
ment agencies, as appropriate and as permitted by 
law, to gain intelligence and lessons learned, and to 
enhance collaboration and effectiveness. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port that includes the following: 
(1) A description of Department of Defense ac-
tivities in support of efforts to deal with the national 
emergency declared in Executive Order No. 14059 
on December 15, 2021. 
(2) An assessment of the resources and authori-
ties required to fully leverage the capabilities of the 
Department of Defense to best support efforts to ad-
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dress the threat posed by illicit drugs, including 
fentanyl and other synthetic opioids, that neces-
sitated the declaration of the national emergency in 
Executive Order No. 14059. 
SEC. 1009. DISRUPTION OF FENTANYL TRAFFICKING. 
(a) DEVELOPMENT OF STRATEGY.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense, with the concurrence of the Sec-
retary of State, and in coordination with the heads 
of such other Federal agencies as the Secretary con-
siders appropriate, shall develop and submit to the 
appropriate congressional committees a strategy to 
use existing authorities, including the authorities 
under section 124 of title 10, United States Code, 
as appropriate, to target, disrupt, or degrade threats 
to the national security of the United States caused 
or exacerbated by fentanyl trafficking. 
(2) CONTENTS.—The strategy required by 
paragraph (1) shall outline how the Secretary of De-
fense will— 
(A) leverage existing authorities regarding 
counterdrug and counter-transnational orga-
nized crime activities with a counter-fentanyl 
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nal Revenue Service and the Director of the Bureau of 
Economic Analysis, shall post on the public Internet 
website of the Department of Defense the costs to each 
United States taxpayer of the overseas military footprint 
of the United States, including— 
‘‘(1) the costs of building, maintaining, staffing 
and operating all overseas military bases and instal-
lations; 
‘‘(2) the personnel costs, including compensa-
tion, housing and health care, for all members of the 
Armed Forces deployed overseas at any point 
throughout the fiscal year; 
‘‘(3) the costs paid to contractors providing 
goods and services in support of overseas military 
bases, installations, and operations; 
‘‘(4) the costs of conducting all overseas mili-
tary operations, including operations conducted by 
United States Armed Forces, operations conducted 
using unmanned weapons systems, covert operations, 
and operations undertaken by, with, and through 
partner forces; 
‘‘(5) the costs of all overseas military exercises 
involving United States Armed Forces; and 
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