This Act may be cited as the Defense Expenditure Planning for Optimizing Throughput and Sustainment Act of 2026 or the DEPOTS Act.

(a) Write-offs (1) In general With respect to any depot or arsenal of the Department of Defense, the Secretary of Defense may write-off or eliminate any internal Department accounting charges, such as remaining depreciation or internal debt from an account of a military department or the Department associated with capital assets that do not generate revenue due to mission realignments directed by the Federal Government. (2) Recovery of outlays Write-offs under paragraph (1) shall be done in a manner than ensures any previous cash outlay from a revolving fund is recovered. (3) Application of authority The authority under paragraph (1) applies only to financial balances within the accounts of a military department or the Department of Defense, not to payments owed to commercial contractors. (b) Delegation The Secretary may delegate the authority under subsection (a) to the Secretary of a military department.