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FY26 National Defense Authorization Bill – Procurement Issues

Before the August recess, the Senate set up votes on its $925.8 billion defense authorization bill for fiscal year 2026, which will be addressed when Congress returns in the first week of September. The measure (S. 2296) would authorize $32 billion more than the Trump administration requested, including additional funds for shipbuilding and F-35 Joint Strike Fighters. In contrast, the House draft measure (H.R. 3838) aligns more closely with the administration’s request, authorizing $892.6 billion.

When combined with the resources provided under the reconciliation bill – the One Big Beautiful Bill (Public Law 119-21) – defense spending could surpass $1 trillion, a historic first for the nation. The national defense authorization act, which sets funds, policies, and military personnel levels for the Defense Department, is regarded as a must-pass bill and has been enacted annually since 1961.

Senate Majority Leader Thune (R-SD) filed cloture on the motion to proceed with the Senate bill, scheduling the first votes for September 2nd. The Senate Armed Services Committee approved the measure by a 26-1 vote on July 9th, while the House Armed Services Committee approved its version on July 15th by a 55-2 vote. Congress will need to reconcile differences between the two bills to pass a final measure by the end of the year.

Separately, the House passed a $831.5 billion defense spending bill (H.R. 4016) for fiscal 2026 by a 221-209 vote on July 18th. The Senate Appropriations Committee approved its defense funding measure (S. 2572) by a 26-3 vote on July 31st, although this measure covers a narrower range of programs than the defense authorization bill.

We will continue to track the following provisions, which are important to the construction industry. As more details become available, we will update you accordingly.  Those provisions are:

  • Section 312 – PFAS DoD reporting
  • Section 802 – Assumption of Uninsurable Risk
  • Section 814 – Contract Reference Standards
  • Section 2801 – Other Transaction Authority
  • Section 2804 – Progressive Design-Build Authority
  • Section 2805 – Modular Construction Requirements
  • Section 2806 – Multiyear Contracting for housing and childhood centers
  • Section 2826 – Review of United Facilities Criteria (UFC)
  • Section 2827 – Cost Premium Reporting
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