The U.S. House of Representatives on Wednesday passed a compromise version of the 2026 National Defense Authorization Act (NDAA), a nearly $1 trillion bill setting Pentagon policy. Congress has passed the NDAA annually for 63 years.
The bill serves as a vehicle for a wide range of initiatives, including troop pay raises, competition with China and Russia, and major weapons programs, and is closely watched by defense contractors like Lockheed Martin and RTX Corp.
Key Highlights of the 2026 NDAA
Support for Europe and Ukraine
- $800 million allocated to Ukraine ($400 million per year over two years) under the Ukraine Security Assistance Initiative.
- $175 million for Baltic Security, supporting Latvia, Lithuania, and Estonia.
- Caps the number of U.S. forces in Europe at no fewer than 76,000 and preserves the NATO Supreme Commander title for the U.S. European Commander.
Countering China
- Requires Americans and U.S. companies to notify the Treasury when investing in sensitive Chinese technologies, with new powers to block certain deals.
- Introduces the Biosecure Act, restricting federal funding to some Chinese biotech companies.
- Fully funds the Taiwan Security Cooperation Initiative at $1 billion, including U.S. training and a joint program for drone and anti-drone systems.
- Provides $1.5 billion in security assistance to the Philippines.
Middle East Policy
- Strong support for Israel, including full funding for Iron Dome and David’s Sling missile defense programs.
- Repeals the “Caesar” sanctions on Syria, aiding economic recovery.
- Repeals the 1991 and 2002 Authorizations for the Use of Military Force (AUMF), reasserting Congress’ role in decisions to deploy troops.
Troop Benefits and Social Measures
- 4% pay raise for service members.
- Enhancements to childcare and military housing.
- Bars transgender women from competing in women’s athletic programs at U.S. military academies, but does not limit gender-related medical funding.
- Excludes proposals for expanded in vitro fertilization coverage and Trump’s plan to rename the Department of Defense to the Department of War.
The 2026 NDAA underscores the U.S. Congress’ ongoing priorities in defense readiness, geopolitical strategy, and social policy affecting the military, while shaping funding and strategic posture in Europe, the Indo-Pacific, and the Middle East.