18 December 2025
The Fiscal Year 2026 National Defense Authorization Act (NDAA) was signed into law by President Donald Trump on December 18, 2025, becoming Public Law 119-60. The legislation authorizes approximately $900.6 billion for the Department of Defense (DOD), nuclear security programs at the Department of Energy, and related national security activities—about $8 billion above the presidential budget request.
Key Provisions:
• Defense Acquisition Reform: Central to the NDAA is a major overhaul of the DOD acquisition system, driven by the SPEED Act (Streamlining Procurement for Effective Execution and Delivery) and the FoRGED Act (Fostering Reform and Government Efficiency in Defense). Key changes include:
o Creation of Portfolio Acquisition Executives (PAEs) to shift from program-by-program oversight to portfolio management.
o Revisions to prioritize "best value" over "lowest overall cost" in procurements.
o Raising thresholds for acquisition requirements and cost accounting standards to reduce compliance burdens.
o Codification of Executive Order 14265 and Secretary Pete Hegseth’s "Transforming the Warfighting Acquisition System" strategy.
• Military Pay and Quality of Life: The bill includes a 3.8% across-the-board pay raise for service members and extends the in-home child care pilot program through 2029.
• Force Posture in Europe: The NDAA imposes strict guardrails on U.S. troop reductions in Europe:
o Prohibits reducing U.S. forces below 76,000 troops without congressional certification.
o Requires the Supreme Allied Commander Europe (SACEUR) to remain an American.
o Mandates a Baltic Security Initiative (BSI) to deepen cooperation with Estonia, Latvia, and Lithuania.
• Support for Ukraine: Authorizes $400 million in FY2026 and FY2027 for the Ukraine Security Assistance Initiative (USAI), allowing Ukraine to purchase U.S. defense equipment. It also includes provisions for justice for Ukrainian children abducted by Russia.
• Drones and Counter-Drone Measures: Centralizes counter-UAS efforts under the Joint Interagency Task Force 401, with investments in the domestic small-UAS industrial base.
• Defense Industrial Base: Requires the DOD to build a digital inventory of weapon-system technical data to prevent sustainment gaps, a compromise on the "right to repair" debate.
• Omission: The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs were not reauthorized in this year’s NDAA.
The NDAA reflects a strong bipartisan consensus in Congress on defense priorities, standing in contrast to the more Europe-focused strategic shift outlined in the administration’s 2025 National Security Strategy (NSS).
