The House and the Senate Armed Services committees have both prepared their versions of the FY26 National Defense Authorization Act (NDAA). On July 15, the House Armed Services Committee (HASC) marked up and passed H.R. 3838 out of committee by a vote of 55-2. The bill combines the Streamlining Procurement for Effective Execution and Delivery Act of 2025 – SPEED Act with the NDAA for FY26. On July 11, the Senate Armed Services Committee (SASC) passed S. 2296, its version of the FY26 National Defense Authorization Act, out of committee by a vote of 26-1.
The NDAA is written by the Armed Services Committees and, while it sets policy for the Department of Defense (DOD) and parts of the Department of Energy and authorizes spending levels, it doesn’t provide actual appropriations. Ultimately, the topline for the Department will be decided in the FY26 appropriations bills. Chart I shows that the HASC authorizes the same amount of funds requested by the President whereas the SASC authorizes nearly $31 billion more than the request. While some of the Operation and Maintenance accounts receive reductions in the SASC bill, military construction increases $22 billion above the request, and the shipbuilding accounts are authorized $10 billion above the request.
PERSONNEL
The NDAA sets the pay levels for DOD. Both the SASC and the HASC provide a 3.8% overall pay raise for servicemembers. The active-duty end strength levels provided in each bill are consistent with the request of 1.3 million and represent an increase of 26,000 compared with FY25.
The SASC bill requires DOD to publish how housing allowances are calculated, what housing types are covered, and to create a new calculation taking bedroom size into consideration for rental costs. The HASC expands eligibility for Basic Allowance and Housing by removing household income from the eligibility requirement.
KEY POLICY PROVISIONS
The following General Provisions should be of interest:
- Sec. 1001 – Both the HASC and the SASC provide for $6 billion in general transfer authority.
- Sec. 1013 – The SASC provides an exemption of unmanned surface vessels and unmanned underwater vehicles from certain technical oversight requirements.
- Sec. 1057 – The SASC recommends a provision that would authorize the Secretary of Defense to establish and maintain an Irregular Warfare Exercise Lab.
- Sec. 1078 – The HASC calls for DOD to better utilize existing counter-unmanned aircraft authorities already in law in coordination the Federal Aviation Administration (FAA).
- Sec. 1502 – The SASC recommends a provision that will direct the Secretary of Defense to conduct a comprehensive study on future space launch capacity with a report due no later than March 31, 2026.
- Sec. 1503 – The SASC recommends a provision stipulating that any weapon system intended to produce space control effects to adversary satellite systems be acquired and operated by US Space Force, with commercial augmentation as necessary.
- Sec. 1505 – The SASC recommends a provision to ensure that space acquisition employ procedures to maximize competition for programs to deliver space-based tactical data and that the products from these vendors comply with interfaces and standards to ensure resilience and interoperability with DOD systems.
- Sec. 1531 – The SASC recommends a provision to revise the national missile defense policy and to provide an annual briefing on Golden Dome until it reaches full operational capability.
- Sec. 1832 – The HASC adds a new provision that requires the Secretary of Defense to ensure that weapons system acquisition negotiations consider data-as-a-service solutions.
- Items of Special Interest – The SASC is supportive of the Navy’s efforts to integrate large diameter and extra-large unmanned underwater vehicles (UUVs) capable of executing high value missions in contested
We anticipate another continuing resolution to begin the fiscal year, and we do not know the timing of the passage of the NDAA, but we assume it will pass before appropriations are finalized. The NDAA will include many of the provisions above and will also include some of the oversight necessary to ensure the additional spending in the One Big Beautiful Bill Act (reconciliation) is accountable to the defense committees.
Chart I. Source: Department of Defense, House Armed Services, Senate Armed Services. *Non-emergency and non-reconciliation.