Sen. Joni Ernst (R-IA) announced Wednesday that she has uncovered more than $77 billion in Pentagon research and development spending that was deliberately shielded from public view, and she’s pushing legislation to make sure it never happens again.
The funds, spread across fiscal years 2021 through 2025, covered contracts for radio equipment, shipbuilding, COVID-19 vaccine development, test kits, and therapeutics. Companies receiving payments include AstraZeneca and Microsoft.
“Sunshine is the best disinfectant, and I’m shining a light on any and all government secret spending,” Ernst told the New York Post. “Now that we know that over $77 billion in Pentagon spending was unlawfully hidden from taxpayers, I’m lifting the veil.”
The mechanism behind the concealment is a legal loophole known as Other Transaction Agreements, or OTAs. Federal agencies use OTAs to bypass the transparency requirements normally attached to standard acquisition laws. The arrangements are technically legal, but critics say they let the Pentagon move massive sums without the public accountability that should accompany taxpayer dollars.
Ernst’s “Stop Secret Spending Act” was taken up by the House Government Oversight Committee on Wednesday. The bill would require full disclosure of all OTA spending going forward, forcing the federal government to account for every dollar.
This isn’t the first time Ernst has flagged the problem. In 2024, she uncovered $18 billion in similar off-books spending. The Government Accountability Office separately identified more than $40 billion in OTA outlays between fiscal years 2020 and 2022.
The OTA process falls outside the Federal Funding Accountability and Transparency Act of 2006, which mandates public disclosure of contracts, grants, and loans exceeding $25,000. Proponents of OTAs argue they speed up procurement for cutting-edge technology. Critics, including Ernst, say that speed comes at the cost of basic government transparency.
Ernst announced in September 2025 that she would not seek a third Senate term.
