H.R. 4372

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4372 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 4372

To amend title 10 to shorten breach reporting timelines, increase 
program transparency, and improve congressional oversight of Department 
of Defense cost overruns with respect to the cost growth for major 
systems, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

July 14, 2025

Mr. Garamendi (for himself, Mr. Gimenez, Ms. Jacobs, Mr. Deluzio, and 
Ms. Schakowsky) introduced the following bill; which was referred to 
the Committee on Armed Services

_______________________________________________________________________

A BILL

To amend title 10 to shorten breach reporting timelines, increase 
program transparency, and improve congressional oversight of Department 
of Defense cost overruns with respect to the cost growth for major 
systems, 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. SHORTEN NUNN-MCCURDY BREACH REPORT TIMELINE.

Section 4374 of title 10, United States Code, is amended--
(1) in subsection (a), by striking ``When a unit cost 
report'' and inserting ``Not later than 30 days after a unit 
cost report'';
(2) in subsection (b), by striking ``When a unit cost 
report'' and inserting ``Not later than 30 days after a unit 
cost report''; and
(3) in subsection (c), by amending paragraph (2) to read as 
follows:
``(2) Time for submission of notification to congress.--In 
the case of a determination based on a quarterly report 
submitted in accordance with section 4372 of this title or a 
report submitted in accordance with section 4373 of this title, 
the Secretary shall submit the notification to Congress within 
30 days after the date on which the determination was made.''.

SEC. 2. END ITEM MAJOR SUBPROGRAM DESIGNATION.

Section 4203(a)(1) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
``(C) If the Secretary of Defense determines that a 
major defense acquisition program requires the delivery 
of two or more end items that are each estimated to 
require an eventual total expenditure for research, 
development, test, evaluation, operation, and support 
of more than $500,000,000, the Secretary shall 
designate each such end item as a major subprogram for 
the purposes of acquisition reporting under this 
subpart.''.

SEC. 3. OPERATIONS AND SUPPORT COST INCLUSION.

Section 4214(a)(2) of title 10, United States Code, is amended by 
inserting ``for the life cycle of such major defense acquisition 
program or designated major subprogram'' before the period at the end.

SEC. 4. CRITICAL COST GROWTH TERMINATION.

Section 4376 of title 10, United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting ``(other than a 
program described in paragraph (4)(A))'' after ``major 
defense acquisition program'';
(B) in paragraph (3)--
(i) by striking ``A written'' and inserting 
``(A) A written''; and
(ii) by adding at the end the following new 
subparagraph:
``(B) The Secretary shall make publicly available 
on a website of the Department of Defense each report 
required under subparagraph (A).''; and
(C) by adding at the end the following new 
paragraphs:
``(4) Second critical breach.--
``(A) The Secretary may not submit to Congress a 
written certification under paragraph (1) with respect 
to a major defense acquisition program that has had 
more than one program acquisition unit cost increase or 
procurement unit cost increase resulting in a 
reassessment under subsection (a).
``(B) The Secretary shall terminate a major defense 
acquisition program described in subparagraph (A) not 
later than 90 days after conducting the reassessment 
required by subsection (a) with respect the program.
``(5) Delegation.--The Secretary may not delegate the 
submission of a written certification under paragraph (1).''; 
and
(2) in subsection (c)--
(A) in paragraph (2), by striking ``and'' at the 
end;
(B) in paragraph (3), by striking the period at the 
end and inserting ``; and''; and
(C) by adding at the end the following new 
paragraph:
``(4) consideration of termination plans that maximize 
value, including--
``(A) immediate termination of the program with no 
further action;
``(B) termination of the program after completion 
of the end items in production and for which funds have 
been obligated or expended under the program as of the 
date that--
``(i) if the program was terminated under 
subsection (b)(1), is the last day of the 
applicable 60-day period described in such 
subsection for the program; or
``(ii) if the program was terminated under 
subsection (b)(4), is 90 days after the date on 
which the Secretary completed the reassessment 
required by subsection (a) pursuant to which 
the program was so terminated;
``(C) termination of the program after completion 
of the end items described in subparagraph (B) for 
which the resale value exceeds the cost of completing 
such end items; and
``(D) any other course of action to maximize the 
value to the Government of the funds that have been 
obligated or expended under the program as of the date 
that--
``(i) if the program was terminated under 
subsection (b)(1), is the last day of the 
applicable 60-day period described in such 
subsection for the program; or
``(ii) if the program was terminated under 
subsection (b)(4), is 90 days after the date on 
which the Secretary completed the reassessment 
required by subsection (a) pursuant to which 
the program was so terminated.''.
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