This bill sets clear rules for how the National Guard can use money it gets back from states and territories after they use Guard equipment. The money must be put back into the right Defense Department accounts and can only be spent to fix, maintain, replace, or do similar work on National Guard gear used during state-run missions. This helps keep Guard equipment ready and safe for local emergencies like storms, wildfires, or other state needs .

Key points:

• Who is affected: National Guard Bureau, Department of Defense, and states/territories that use Guard equipment.
• What changes: Reimbursement funds must go back into proper Defense accounts and be used only to repair, maintain, or replace Guard assets used on state active duty .
• Why it matters: Ensures money from states directly supports the upkeep of Guard equipment for local missions, improving readiness and response for communities.