What's Happening?
The Senate has passed its version of the fiscal 2026 National Defense Authorization Act (NDAA) despite the ongoing government shutdown that has stalled much of Congress's agenda. The bill was approved in a 77-20 vote after a month-long impasse over amendments. Senators agreed to vote on 17 standalone amendments, while another 48 less controversial measures were bundled into a manager’s package and adopted by voice vote. Key amendments included restrictions on U.S. investments that could bolster Chinese technologies and provisions to ease veterans' access to care at military hospitals. The Senate also adopted a bipartisan amendment to repeal authorizations for the use of military force against Iraq. However, several proposals, including those related to military assistance to civilian law enforcement and universal dental care for veterans, were rejected.
Why It's Important?
The passage of the Senate's version of the NDAA is significant as it sets the stage for negotiations with the House to reconcile differences between the two versions of the bill. The Senate's addition of $32 billion above the White House's budget request highlights differing priorities that will need to be addressed. The bill's approval amid a government shutdown underscores the urgency of defense policy amidst broader legislative gridlock. The amendments reflect ongoing concerns about national security, veterans' care, and foreign policy, particularly regarding China and Iraq. The outcome of these negotiations will impact defense spending, military operations, and veterans' services, affecting stakeholders across the defense and veteran communities.
What's Next?
As the NDAA heads to conference, acquisition reform will be a top legislative priority for both the House and Senate Armed Services Committees. The differing approaches to acquisition reform between the two versions of the bill mean significant work lies ahead for negotiators. The reconciliation process will involve addressing the $32 billion difference in toplines and aligning on key policy changes. The outcome will shape defense policy and spending for the coming fiscal year, influencing military readiness and strategic priorities. Stakeholders, including defense contractors, military personnel, and veterans' groups, will be closely monitoring the negotiations.
