The Guarding Readiness Resources Act sets clear rules for money that states and territories pay back to the National Guard Bureau for using military equipment. These reimbursements must go into the proper Defense Department accounts and can only be used to repair, maintain, replace, or do similar work on National Guard assets used while units are on state active duty .

Key points:

• Who is affected: National Guard Bureau; states; Puerto Rico; District of Columbia; Guam; Virgin Islands; and the Department of Defense.
• What changes: Reimbursed funds must be credited back to the original account or another appropriate, currently available account, and may only be used for repair, maintenance, replacement, or similar functions tied directly to National Guard assets used on state active duty.
• What it does overall: Updates federal law to clearly direct how these reimbursements are handled and spent for National Guard equipment used under state authority .