DEPOTS Act

What it does

• •Authorizes the Secretary of Defense to write off or eliminate internal accounting charges (such as depreciation or internal debt) associated with Department of Defense depots and arsenals whose capital assets no longer generate revenue due to mission changes directed by the Federal Government.
• •Requires that write-offs be conducted in a manner ensuring any previous cash outlay from a revolving fund is recovered.
• •Limits the authority to financial balances within military department or DoD accounts, excluding payments owed to commercial contractors.
• •Allows the Secretary of Defense to delegate this authority to individual military department Secretaries.

Why it matters

• •Removes financial accounting barriers that may prevent the Department of Defense from realigning depots and arsenals to match current mission requirements.
• •Addresses the situation where capital assets have been rendered revenue-neutral by government-directed mission changes, allowing internal accounting adjustments without losing previous cash investments.

Who is affected

• •The Department of Defense, including military departments, depots, and arsenals.
• •The Secretary of Defense and military department Secretaries responsible for managing depot and arsenal operations.

What happens next

The bill was referred to the Senate Committee on Armed Services on August 6, 2026, and awaits further committee action.