H.R. 10046 – DEPOTS Act

AI-Generated Summary

Updated August 7, 2026 at 11:49 PM UTC

The DEPOTS Act lets the Secretary of Defense cancel internal accounting costs for DoD depots and arsenals when those assets stop generating revenue due to mission realignments. The goal is to clean up depreciation and internal debt balances while ensuring any money already spent from revolving funds is recouped. The rule applies only to internal DoD accounts and can be passed down to service secretaries.

Key Provisions

The Secretary of Defense can erase internal DoD accounting charges—such as remaining depreciation or internal debt—related to depot or arsenal capital assets that no longer produce revenue because of mission changes.
Any write‑offs must be handled so that cash already spent from a revolving fund is recovered.
The authority only covers internal DoD account balances; it does not affect payments owed to private contractors.
The Secretary of Defense may delegate this write‑off authority to the secretaries of the individual military departments.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Armed Services.

Armed Services Committee

August 6, 2026

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HouseIntro Referral

Introduced in House

August 6, 2026

HouseIntro Referral

Referred to the House Committee on Armed Services.

Armed Services Committee

August 6, 2026

Bill Text

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Introduced in HouseIssued August 6, 2026

I

119th CONGRESS

2d Session

H. R. 10046

IN THE HOUSE OF REPRESENTATIVES

August 6, 2026

Mr. Cloud introduced the following bill; which was referred to the Committee on Armed Services

A BILL

To authorize the Secretary of Defense to eliminate any internal Department of Defense depreciated costs or cancel any internal Department debts associated with depots and arsenal from accounts of a military department or the Department that are associated with certain capital expenditures that no longer generate revenue due to mission changes.

1.

Short title

This Act may be cited as the Defense Expenditure Planning for Optimizing Throughput and Sustainment Act or the DEPOTS Act.

2.

Capital expenditure write-offs for Department of Defense depots and arsenals

(a)

Write-Offs

(1)

In general

With respect to any depot or arsenal of the Department of Defense, the Secretary of Defense may write-off or eliminate any internal Department accounting charges, such as remaining depreciation or internal debt from an account of a military department or the Department associated with capital assets that do not generate revenue due to mission realignments directed by the Federal Government.

(2)

Recovery of outlays

Write-offs under paragraph (1) shall be done in a manner than ensures any previous cash outlay from a revolving fund is recovered.

(3)

Application of authority

The authority under paragraph (1) applies only to financial balances within the accounts of a military department or the Department of Defense, not to payments owed to commercial contractors.

(b)

Delegation

The Secretary may delegate the authority under subsection (a) to the Secretary of a military department.