S. 3700, the FAA SMS Compliance Review Act of 2026, directs the FAA Administrator to convene an independent expert panel within 60 days of the bill's enactment to evaluate the agency's Safety Management System (SMS), which covers safety policy, risk management, assurance, and promotion practices across the aviation industry. The panel will include representatives from NASA, aviation labor unions, independent safety experts, and industry, along with non-voting liaisons from ICAO and the NTSB, and will assess the FAA's compliance with international safety standards, internal audit practices, safety culture, training, and voluntary reporting programs. Within 180 days of its first meeting, the panel must deliver a public report of findings and recommendations, requiring approval from at least two-thirds of its members, with any dissenting opinions included. The FAA Administrator will be required to keep Congress updated on how these recommendations are being implemented and must publicly justify any recommendations the agency chooses not to adopt. The bill also sets confidentiality rules for panel members accessing sensitive FAA records, exempts the panel from standard federal advisory committee regulations, and specifies that the panel will disband once its final report is submitted. Overall, the legislation is designed to strengthen oversight and accountability of the FAA's internal safety systems without creating new ongoing funding obligations beyond the panel's temporary operations.