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Software planning, programming, budgeting, and execution reform

Division A · Title XV: Cyberspace-related Matters · Subtitle B: Information Technology and Artificial Intelligence

Plain-language summaryAI

The Department of Defense must update its financial rules to allow funding for software projects throughout their entire lifecycle, including development, testing, and maintenance, using appropriate budget accounts without unnecessary restrictions. The Secretary of Defense is required to issue these updated rules within one year and provide regular progress reports to Congress until the rules are finalized. A final report with the new regulations and any remaining challenges must be submitted to Congress within one year.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 1521.
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(a) In general

Chapter 131 of title 10, United States Code, is amended by inserting after section 2220 the following new section:

2221. Availability of appropriations accounts for full lifecycle of software capabilities: regulations

(a) In general

The Secretary of Defense shall ensure that the relevant financial management regulations of the Department provide guidance for the budgeting and execution of funds for software capabilities. Such guidance shall—

(1)

reflect that amounts appropriated for operations and maintenance, procurement, or research, development, test, and evaluation may be used at each stage in the lifecycle of a software capability, consistent with applicable law;

(2)

clarify that such amounts may be used, as appropriate, for all activities at each such stage in the lifecycle of a software capability;

(3)

provide that, for any program or activity of the Department that requires a new software capability, the appropriations account primarily available for that program or activity shall be available for that new software capability;

(4)

not impose restrictions on the availability of funds for software capabilities, except as required by law; and

(5)

maintain consistency, to the maximum extent practicable, with Recommendation 11A of the final report (dated March 2024) of the Commission on Planning, Programming, Budgeting, and Execution Reform, as submitted under section 1004 of the National Defense Authorization Act for Fiscal Year 2022 ( Public Law 117–81 ; 135 Stat. 1884).

(b) Definition

In this section, the term lifecycle includes stages such as development, prototyping, testing, fielding, modification, upgrading, licensing, sustainment, and retirement.

(b) Issuance of revised regulations

(1) In general

Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall issue revised regulations to implement section 2221 of title 10, United States Code, as added by this section.

(2) Notification

Not later than 30 days after the Secretary issues the revised regulations under paragraph (1), the Secretary shall notify the congressional defense committees of the revisions.

(c) Updates and report

(1) Written updates

Not later than 180 days after the date of the enactment of this Act, and every 90 days thereafter until the revised regulations required by subsection (b) are issued, the Secretary shall submit to the congressional defense committees a written update containing—

(A)

a description of the progress made toward completing the revised regulations, along with specific actions taken and remaining milestones;

(B)

the most up-to-date working draft of the revised regulations, or an outline of such working draft in sufficient detail to demonstrate the manner in which, and the extent to which, the working draft implements section 2221;

(C)

a description of any anticipated barriers to full and timely issuance of the revised regulations and full and timely implementation of such regulations;

(D)

any recommendations for legislation to fully implement such revised regulations; and

(E)

if the Secretary has not issued such revised regulations within the period described in subsection (b), an explanation for the delay and the anticipated timeline for issuing the revised regulations.

(2) Report

Not later than one year after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report containing—

(A)

the revised regulations required by subsection (b); and

(B)

any remaining barriers to full and timely implementation of such revised regulations.