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Congress·Passed House·3 months ago

Congress requires federal agencies to inventory software and curb unused licenses and hidden cloud costs

Also known as: Strengthening Agency Management and Oversight of Software Assets Act

Legislative Progress

Filed
Review
House
Senate
President

Impacts

Mixed Impacts(2)
Federal Employee
Neutral
Small Business Owner
Neutral

Key Points

  • Federal agencies must do a full count of the software they pay for and use, including unused licenses and extra cloud fees.
  • Within 18 months of the law taking effect, each agency must send this software review to budget officials, federal purchasing officials, and Congress.
  • Agencies must create a follow-up plan to cut waste, like consolidating licenses and stopping offices from buying new software without approval from the agency tech lead.
  • Plans must also address training staff to buy software smarter and avoid contracts that limit how the government can use software or control its own data.
  • The government watchdog agency must later report on whether agencies followed through, and the bill says no new money is provided to do this work.
TechnologyCybersecurityEconomyConsumer Protection

Milestones

4 milestones11 actions
Dec 16, 2025Senate

Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Dec 15, 2025House

Motion to reconsider laid on the table Agreed to without objection.

Dec 15, 2025House

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5862-5864)

Dec 15, 2025

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5862-5864)

Dec 15, 2025House

DEBATE - The House proceeded with forty minutes of debate on H.R. 5457.

What Happens Next

Projected impacts based on AI analysis

Right after the bill becomes law

Agencies start the comprehensive software assessment work

Federal agencies begin counting what software they pay for, what’s actually used, and where extra fees (like cloud usage charges) show up—setting up possible cleanups of unused licenses.

No later than 18 months after enactment

Each agency completes its comprehensive software assessment

Agencies should have a detailed picture of licenses, contracts, restrictions, duplication, and total software costs, which can trigger license reductions or contract changes.

Within 30 days after each agency head receives the assessment

Agencies send completed assessments to OMB, GSA, GAO, and Congress

Oversight groups get the same information, making it harder for wasteful or duplicate software spending to stay hidden.

No later than 1 year after the agency sends its assessment to OMB/GSA/GAO/Congress

Agencies submit their software modernization plans

Agencies lay out how they will consolidate licenses, tighten approvals for new software, automate license tracking, train staff, and estimate costs and expected savings.

No later than 2 years after enactment

OMB and GSA deliver a government-wide recommendations report to Congress

Congress gets a cross-agency set of recommendations on interoperability, consolidation, cost reduction, and better oversight—potentially shaping future rules and buying strategies.

No later than 3 years after enactment

GAO publishes a government-wide report card on software asset management

The public and Congress get an outside review of trends, comparisons across agencies, and whether agencies followed the rules on using contractors without conflicts of interest.

Related News

7 articles

Source Information

Document Type

Congressional Bill

Official Title

Strengthening Agency Management and Oversight of Software Assets Act

Bill NumberHR 5457
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReceived in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Sponsor

Cosponsors

(3)
D: 1R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.