National Defense Authorization Act (NDAA) Update

Negotiations on the NDAA are ongoing. Given that this measure is one of the few that consistently passes at the end of each year with bipartisan support, and considering the lack of legislative movement since the One Big Beautiful Bill Act, the NDAA is seen as a valuable opportunity to advance non-military priorities. Prior to Thanksgiving, the Chairman of the House Financial Services Committee rejected a bipartisan Senate plan to include affordable housing legislation and other financial policy provisions, such as a temporary ban on the Federal Reserve creating a central bank digital currency. Despite this, members are still advocating for the addition of other provisions. These include measures to prevent states from regulating AI, limit the export of advanced semiconductors to adversarial countries like China, and impose new restrictions on U.S. investments in China. The Chairman of the House Armed Services Committee has indicated that he expects to release the negotiated bill text this week, with a House vote potentially occurring next week.