H.R. 4372

119th CONGRESS 1st Session

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 · Sponsor: Mr. Garamendi · Committee: Committee on Armed Services

Table of contents

• H.R. 4372
  • SEC. 1. Shorten Nunn-McCurdy breach report timeline
  • SEC. 2. End item major subprogram designation
  • SEC. 3. Operations and support cost inclusion
  • SEC. 4. Critical cost growth termination

SEC. 1. Shorten Nunn-McCurdy breach report timeline

• Section 4374 of title 10, United States Code, is amended—
  • in subsection (a), by striking When a unit cost reportand inserting Not later than 30 days after a unit cost report;
  • in subsection (b), by striking When a unit cost reportand inserting Not later than 30 days after a unit cost report; and
    • (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.
  • in subsection (c), by amending paragraph (2) to read as follows:

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:
  • 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 before the period at the end.

SEC. 4. Critical cost growth termination

• Section 4376 of title 10, United States Code, is amended—
  • in subsection (b)—
    • in paragraph (1), by inserting after ;
    • in paragraph (3)—
      • (i) by striking and inserting ; and
      • (ii) by adding at the end the following new subparagraph:
        • The Secretary shall make publicly available on a website of the Department of Defense each report required under subparagraph (A).
      • (4) Second critical breach
        • 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).
        • 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).
    • by adding at the end the following new paragraphs:
  • in subsection (c)—
    • in paragraph (2), by striking and at the end;
    • in paragraph (3), by striking the period at the end and inserting ; and; and
      • consideration of termination plans that maximize value, including—
        • immediate termination of the program with no further action;
        • 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;
        • 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
        • 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.