PATHS Act
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The PATHS Act would extend through FY2028 the Department of Homeland Security's authority to use flexible 'other transaction' contracting — a procurement tool exempt from many federal procurement rules — for research and prototype projects. It would also add a new 72-hour congressional notification requirement whenever that authority is used for artificial intelligence projects, and lower a public-reporting threshold for contract awards from $4 million to $1 million.
What this bill would do
What it would do
The bill would extend the Department of Homeland Security's "other transaction" (OT) authority — which allows DHS to enter research and prototype agreements outside the standard federal procurement rules when traditional contracts, grants, or cooperative agreements are not feasible — through September 30, 2028. Without this extension, that authority would have lapsed at September 30, 2024. The bill would also require DHS to notify four congressional committees within 72 hours whenever it uses or extends OT authority for artificial intelligence technology projects, and to offer a briefing explaining the decision.
Separately, the bill would lower from $4 million to $1 million the minimum value of contract awards that DHS must publicly report on its website, expanding the transparency requirement to cover a broader set of smaller contracts. The bill does not appropriate new funds or create a new program; it modifies existing procurement authority and oversight rules.
Key provisions
- 1Would extend DHS's other transaction authority for research and prototype projects through September 30, 2028, replacing the lapsed September 30, 2024 deadline.
- 2Would require DHS to notify four congressional committees within 72 hours of using OT authority for artificial intelligence technology and offer a briefing on the rationale.
- 3Would lower the minimum contract award value that DHS must publicly report on its website from $4,000,000 to $1,000,000.
Who would be affected
The Department of Homeland Security and its contracting offices, which gain a four-year extension of flexible OT procurement authority. Technology companies and researchers — including AI firms — that pursue DHS prototype and research agreements outside standard procurement rules. Congressional oversight committees that would receive new AI-related notifications. Businesses holding DHS contracts below $4 million that would newly appear in public reporting.
Why it matters
For technology firms working with DHS, especially in AI, the extension preserves access to a streamlined contracting pathway that bypasses many standard federal procurement regulations, making agreements faster to structure. The new 72-hour AI notification requirement gives Congress earlier visibility into how DHS uses this flexibility for emerging technology. The lower reporting threshold exposes more mid-sized contract awards to public scrutiny.
What would change
Changes to existing law
Amends Homeland Security Act of 2002, Section 831 (6 U.S.C. 391) (Sec. 2(a))
Extends DHS other transaction authority deadline from September 30, 2024, to September 30, 2028, and adds a 72-hour AI-use congressional notification requirement.
Amends James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (6 U.S.C. 112 note; Public Law 117-263) (Sec. 2(b))
Lowers the minimum DHS contract award value subject to public website reporting from $4,000,000 to $1,000,000.
Agencies directed to act
Effective dates
- Extended DHS other transaction authority expires
How implementation would work
DHS would continue using OT authority under the existing framework established in Section 831 of the Homeland Security Act, now extended to September 30, 2028. Whenever the Secretary uses or extends OT authority specifically for AI technology, DHS must notify the Senate Committees on Appropriations and Homeland Security and Governmental Affairs, and the House Committees on Appropriations and Homeland Security, within 72 hours and offer a briefing. The public contract-award reporting change is self-executing: DHS would update its website disclosures to capture awards at or above $1 million rather than $4 million.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Official CRS summary
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This bill extends through FY2028 the authority of the Department of Homeland Security (DHS) to use other transactions (OT) to carry out research and prototype projects when the use of contracts, grants, and cooperative agreements is not feasible or appropriate. (OTs, in contrast to traditional procurement contracts, are exempt from many federal procurement laws and regulations.) DHS must notify Congress within 72 hours of using or extending this authority for research and development projects related to artificial intelligence technology and must offer to brief Congress on the rationale for such a decision.
The bill also lowers from $4 million to $1 million the minimum value of contract awards that DHS must publicly report on its website.
Legislative subjects
Advanced technology and technological innovations; Computers and information technology; Government Operations and Politics; Internet, web applications, social media; Public contracts and procurement; Research and development