National Defense Authorization Act for Fiscal Year 2026
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The Senate-passed defense bill would authorize funding and set policy for the Department of Defense, military construction, and Department of Energy nuclear security programs for fiscal year 2026, covering everything from ship and aircraft procurement to troop levels and pay.
Beyond core defense funding, the bill would also enact wide-ranging changes on acquisition rules, repeal Pentagon diversity and inclusion offices, extend Ukraine and Indo-Pacific security assistance, and fold in unrelated measures like Coast Guard reauthorization, an intelligence authorization act, and housing policy reforms.
What this bill would do
What it would do
The bill would authorize appropriations for fiscal year 2026 for military personnel, procurement, research and development, operations and maintenance, and military construction across the Department of Defense, as well as for Department of Energy nuclear security programs and the Defense Nuclear Facilities Safety Board. It sets active-duty and reserve end strengths, authorizes shipbuilding and aircraft programs (including Columbia-class submarines and Medium Landing Ships), and would reauthorize or extend dozens of existing security-assistance and acquisition authorities. It would also repeal Department of Defense diversity, equity, and inclusion provisions, including the Chief Diversity Officer position, and would prohibit certain race- and sex-based considerations in service academy admissions and athletics.
The bill is an omnibus vehicle that bundles the core defense authorization with several largely unrelated titles, including an Intelligence Authorization Act, a Coast Guard Authorization Act, a Department of State Authorization Act, and housing-policy provisions under the "ROAD to Housing Act." It does not itself appropriate money—actual funding depends on separate appropriations legislation—and many provisions are reporting requirements, studies, or limitations on the use of funds rather than new programs.
Key provisions
- 1Would authorize appropriations for fiscal year 2026 for military procurement, research and development, operations and maintenance, and military personnel across the Armed Forces.
- 2Would set active-duty and Selected Reserve end strengths for each military service for fiscal year 2026.
- 3Would repeal statutory provisions establishing diversity, equity, and inclusion positions and programs within the Department of Defense, including the Chief Diversity Officer.
- 4Would extend the Pacific Deterrence Initiative and Ukraine Security Assistance Initiative and modify related security-cooperation authorities through fiscal year 2026 and beyond.
- 5Would require the Navy to implement new processes, including type-commander leadership and multi-year shipyard contracts, to improve maintenance of surface ships at private shipyards.
- 6Would require the Secretary of Defense to develop a strategy on the national security implications of emerging biotechnologies and establish a Biotechnology Management Office.
- 7Would restructure the Development Finance Corporation's governance, including creating a Chief Strategic Investment Officer and revising country-eligibility and equity-investment rules.
Who would be affected
Active-duty and reserve service members and their families, the civilian and contractor workforce of the Department of Defense and Department of Energy, defense contractors and shipyards, foreign allies receiving security assistance (including Ukraine, Taiwan, Israel, and NATO members), Coast Guard and State Department personnel, and federal housing agencies and grantees affected by the housing title.
Why it matters
Passage would determine troop levels, pay, procurement of major weapons systems, and continued security assistance to partners like Ukraine and Taiwan for the coming fiscal year. The bill's policy riders—on diversity programs, acquisition rules, and border-related military support—would reshape internal Pentagon operations and personnel policy well beyond routine budgeting, while its non-defense titles extend authorities for the Coast Guard, State Department, and federal housing programs.
What would change
Changes to existing law
Amends Title 10, United States Code (Armed Forces)
Numerous provisions are added, amended, or repealed across acquisition, personnel, and organizational authorities.
Repeals Authorization for Use of Military Force Against Iraq Resolution (1991) and Authorization for Use of Military Force Against Iraq Resolution of 2002 (Sec. 1219)
Both authorizations for use of military force against Iraq would be repealed.
Reauthorizes Ukraine Security Assistance Initiative (Sec. 1250, NDAA FY2016) (Sec. 1223)
Extends the initiative's authority through December 31, 2028, and adds new funding and program flexibility.
Amends Better Utilization of Investments Leading to Development Act of 2018 (BUILD Act) (Subtitle G, Title XII)
Restructures the Development Finance Corporation's leadership, country-eligibility criteria, and investment authorities.
Repeals Chief Diversity Officer statute and related DEI provisions (10 U.S.C. 147 and related sections) (Sec. 920)
Eliminates the position of Chief Diversity Officer and other diversity-related statutory requirements within DOD.
Repeals European Energy Security and Diversification Act of 2019 (Sec. 1298)
Repeals this Act in its entirety.
Agencies directed to act
Effective dates
- Active-duty and reserve end strengths set for the Armed Forces
- Prohibition on Department of Defense contracts with foreign entities of concern conducting DOD-funded research
- Fertility treatment coverage expansion for uniformed service members and dependents
Funding and costs
- $77,000,000
Operation of the Armed Forces Retirement Home
- $3,000,000,000
Development Finance Corporate Equity Investment Account
- $282,830,000
Department of Defense Cooperative Threat Reduction Program
- $350,000,000
Baltic Security Initiative to deepen security cooperation with Baltic countries
- not more than $200,000,000,000
Maximum contingent liability of the U.S. International Development Finance Corporation
Congressional Budget Office estimate
CBO estimates that S. 2296 would primarily affect direct (mandatory) spending, driven by restrictions on generic pharmaceutical purchases by DoD, new multi-year ship maintenance contracts, and third-party financing for the defense industrial base, over the 2026–2035 period.
CBO's estimate covers only direct spending (mandatory outlays that flow without annual appropriations) for S. 2296, the National Defense Authorization Act for Fiscal Year 2026, as reported by the Senate Armed Services Committee on July 15, 2025. The main cost drivers are: new requirements limiting the Department of Defense's ability to purchase generic pharmaceuticals, authorization for DoD to enter multi-year contracts for ship maintenance, and provisions promoting third-party financing for improvements to the defense industrial base. CBO also updated the estimate on September 11, 2025 to reflect section 868 (which repeals existing acquisition laws), finding that it would change net direct spending by less than $500,000 over the 2026–2035 period and would not affect revenues. The published estimate does not report a single net headline dollar figure on the deficit; it focuses on changes to direct spending from the identified provisions.
How implementation would work
As an authorization bill, the NDAA sets ceilings and policy but does not itself appropriate funds; actual spending requires separate appropriations acts. Many provisions direct the Secretary of Defense, military service secretaries, or other officials to submit reports, briefings, or certifications to the congressional defense committees—often as preconditions before a percentage of certain funds may be obligated—creating leverage for congressional oversight. Numerous sections establish pilot programs, working groups, or offices with sunset dates, requiring implementing regulations, staffing designations, and periodic reporting (annual, quarterly, or one-time) before terminating on specified future dates. Agencies such as the Missile Defense Agency, Development Finance Corporation, and Space Development Agency would need to issue guidance, revise acquisition regulations, and coordinate with congressional committees on strategy documents before new authorities take full effect.
Legislative status & sources
Latest action
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Official CRS summary
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This bill sets forth policies and authorities for FY2026 for Department of Defense (DOD) programs and activities, military construction, and the national security programs of the Department of Energy (DOE). It also authorizes the Defense Nuclear Facilities Safety Board for FY2026. The bill authorizes appropriations but it does not provide budget authority, which is provided by appropriations legislation.
Among other elements, the bill
- authorizes the procurement of various items, including aircraft, ships, and missiles;
- authorizes active duty and reserve component personnel strength levels;
- authorizes specified military construction projects and extends the authorization of certain projects from previous fiscal years;
- requires DOD to develop a strategy on the national security implications of emerging biotechnologies;
- requires the Navy to implement certain processes to improve the material condition and combat readiness of Navy surface ships maintained and repaired at private shipyards;
- extends the Pacific Deterrence Initiative (an initiative to enhance U.S. deterrence and defense posture, assure allies and partners, and increase capability and readiness in the Indo-Pacific region) through FY2026; and
- repeals various statutory provisions related to diversity, equity, and inclusion within DOD, including a provision establishing the position of Chief Diversity Officer of DOD.
For additional information on the National Defense Authorization Act (NDAA) see
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Committee report
S. Rept. 119-39