Defense Budget Transparency Act of 2022
Bill: H.R.7574 | Sponsor: Rep. Bacon, Don (R-NE)
Policy area: Armed Forces and National Security

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.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense Budget Transparency Act of 
2022''.

SEC. 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).

SEC. 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.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) The term ``independent research organization'' means an 
        organization outside the Federal Government that is not a 
        federally funded research and development center.
            (2) The term ``pass-through budgeting'' means 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 that department's lack of 
        authority over such funds.
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