An original bill to authorize appropriations for fiscal year 2027 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes.
- Sponsor
- Sen. Wicker, Roger F. [R-MS]
- Committees
- Armed Services Committee
- Last action
- Jul 14, 2026
Bottom line
The bill sets the defense budget and policy framework for fiscal year 2027, prioritizing modernization, readiness, and strategic competition while addressing military quality of life and emerging technological challenges.
What it actually does
This bill, the National Defense Authorization Act for Fiscal Year 2027, authorizes appropriations for military activities of the Department of Defense, military construction, and defense activities of the Department of Energy for fiscal year 2027. It also prescribes military personnel strengths for the same fiscal year and includes numerous policy provisions across procurement, research and development, operations and maintenance, personnel, acquisition, cyberspace, and international affairs, aiming to modernize the U.S. military and address evolving global threats.
Proponents argue
Supporters argue that the bill is essential for maintaining national security, modernizing the military to effectively counter threats from peer competitors like China and Russia, enhancing the readiness and quality of life for service members and their families, and fostering innovation in critical defense technologies. They highlight investments in advanced weapon systems, cybersecurity, and strengthened alliances as vital for global stability.
Opponents contend
Critics might contend that the bill's overall spending levels are excessive or misdirected, potentially diverting resources from other pressing national priorities. They could also argue that certain policy provisions are controversial, unrelated to core defense functions, or may lead to unintended consequences, such as perpetuating outdated strategies or increasing the risk of conflict.
The provided text is extensive, comprising a detailed table of contents and numerous substantive sections, requiring several hours for a thorough review by an informed reader.
Sec. 111, Title I, Division A
Multiyear Procurement Authority for Infantry Squad Vehicle Program
This provision grants the Secretary of the Army authority to enter into multiyear contracts, starting in fiscal year 2027, for the procurement of Infantry Squad Vehicles (ISV), including associated components and support equipment. This authority is subject to existing legal requirements for multiyear procurement and aims to achieve cost savings compared to annual contracting.
Supporters argue
Proponents argue that multiyear procurement stabilizes the industrial base, allows for economic order quantity purchases, and ultimately reduces costs for the taxpayer while ensuring the Army receives necessary equipment more efficiently.
Critics contend
Critics sometimes argue that multiyear contracts can lock the government into programs that may become obsolete or face cost overruns, limiting flexibility to adapt to changing threats or technological advancements.
Tradeoffs
The provision balances the desire for cost efficiency and industrial base stability through multiyear contracts against the need for flexibility in defense acquisition programs.
Sec. 112, Title I, Division A
Inclusion of Army National Guard in Army Arctic Strategy and Force Structure
This section mandates the full integration of the Army National Guard into the Army's Arctic strategy. It requires identifying specific National Guard units with cold-weather capabilities, establishing a modernization roadmap for Arctic missions, and expanding their participation in Arctic exercises to validate interoperability.
Sec. 125, Title I, Division A
Prohibition on Destruction or Scrapping of World War II-Era Aircraft
This section prohibits the Department of Defense from destroying, dismantling, scrapping, cannibalizing, or rendering permanently inoperable any aircraft manufactured before December 31, 1945, that is in Navy custody. Such aircraft may only be retained, transferred to eligible entities (museums, federal agencies with preservation capabilities), or deaccessioned under a preservation plan. A waiver is possible only if the aircraft is beyond practical restoration and no eligible entity expresses interest.
Sec. 131, Title I, Division A
Modification of Inventory Requirements for Air Force Fighter Aircraft
This section modifies the inventory requirements for Air Force fighter aircraft. It mandates a total fighter aircraft inventory of not less than 1,800 aircraft from October 1, 2026, to October 1, 2035, and a combat-coded fighter aircraft inventory of not less than 1,369 by December 31, 2030. It also explicitly excludes collaborative combat aircraft from the 'fighter aircraft' definition.
Sec. 212, Title II, Division A
Development and Production of Alternative Low-Cost Weapon Systems
This section directs the Secretary of Defense to develop, test, evaluate, demonstrate, and transition to production a portfolio of alternative, affordable, low-cost weapon systems across eight categories, including hypersonic strike systems, cruise missiles, and various interceptors. The programs must prioritize innovative acquisition strategies, expendable designs, and scalability for high-volume employment, with transition to production by fiscal year 2030.
Sec. 220, Title II, Division A
Codification of Department of Defense Research Security Program and Prohibition on Contracts with Foreign Entities of Concern
This section codifies the DoD Research Security Program, aimed at protecting intellectual property and critical technologies at institutions of higher education performing defense research. It establishes a list of 'foreign entities of concern' and 'foreign talent programs' that pose national security threats. Beginning January 1, 2028, covered institutions are prohibited from entering contracts with these entities or nations, with limited waiver provisions and strict reporting requirements for existing contracts.
Sec. 313, Title III, Division A
Authorization of Sustainable Aviation Fuel Procurement
This section amends Title 10, U.S. Code, to authorize the Secretary of Defense to procure sustainable aviation fuel for operational or training purposes at a cost that exceeds the cost of conventional petroleum-based aviation fuel. This allows the DoD to prioritize environmental goals even if it means higher immediate costs.
Sec. 320B, Title III, Division A
Initiation of Remedial Actions with Respect to Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS)
This section mandates that the Secretary of Defense initiate interim remedial actions for PFAS contamination at no fewer than 50 covered sites within two years of enactment, consistent with environmental law. Covered sites are those with delayed remedial investigation or feasibility study end dates compared to previous DoD publications. The Secretary must also ensure timely completion of ongoing remedial actions.
Sec. 353, Title III, Division A
Prohibition on Operation of Connected Vehicles of Concern on Military Installations
This section implements a two-phase prohibition on connected vehicles of concern on military installations. Phase I, starting July 1, 2027, bans vehicles prohibited under 15 CFR part 791. Phase II, starting January 1, 2029, bans additional vehicles determined by the Secretary of Defense to be designed, manufactured, or supplied by foreign entities of concern and posing national security risks. The Secretary must publish a list of banned vehicles and develop an implementation plan, with waivers possible for operational or national security reasons.
Sec. 401, Title IV, Division A
End Strengths for Active Forces
This section authorizes the maximum number of active duty personnel for each branch of the Armed Forces as of September 30, 2027. The authorized end strengths are: Army (469,000), Navy (356,600), Marine Corps (173,700), Air Force (330,400), and Space Force (13,200).
Sec. 529A, Title V, Division A
Requirement of Equal Opportunity, Racial Neutrality, and Exclusive Use of Merit in Military Personnel Actions
This section mandates that all Department of Defense military personnel actions, including promotions, assignments, and schooling selections, be based exclusively on individual merit, fitness, capability, and performance. It explicitly prohibits the consideration of an individual's sex, race, ethnicity, or national origin in these actions, with a limited exception for specific, unconventional missions in foreign countries requiring combatant commander approval.
Sec. 529B, Title V, Division A
Prohibition on Participation of Males in Athletic Programs or Activities, and Males Entering Privacy Spaces, at Military Service Academies Designated for Women or Girls
This section prohibits individuals whose sex is male from participating in athletic programs or activities designated for women or girls at military service academies and DoD schools. It also mandates that multi-occupancy restrooms and changing rooms be designated for exclusive use by males or females, and that permanent sleeping quarters be sex-segregated. Exceptions are provided for training/practice (if no female is deprived of opportunity) and certain emergency/custodial situations.
Sec. 713, Title VII, Division A
Pilot Program on Reciprocal Access to Health Care Facilities, Personnel, and Services of Department of Defense and Department of Veterans Affairs
This section establishes a joint pilot program between the DoD and VA to expand reciprocal access to healthcare facilities, personnel, and services. Its goals include improving access, continuity of care for transitioning service members and veterans, reducing duplication, and enhancing medical readiness. The program will designate 5-10 pilot sites, prioritize transitioning members and those in underserved areas, and allow waivers of administrative requirements. It builds on existing sharing agreements but aims to go further.
Sec. 801, Title VIII, Division A
Multi-Year Procurement for Certain Munitions
This section authorizes the head of an agency to enter into multi-year contracts, beginning in fiscal year 2027, for the procurement of 19 specific munitions systems, including Joint Strike Missiles, Tomahawk Cruise Missiles, Javelin systems, and various bombs and rockets. This authority aims to achieve cost efficiencies and stabilize the industrial base for these critical items.
Sec. 804, Title VIII, Division A
Modifications to Technical Data Rights and Default Government Purpose Rights for Deliverables
This section significantly modifies technical data rights for DoD contracts. It establishes 'default government purpose rights' for noncommercial products or services unless contractors provide clear evidence for more restrictive rights. It also introduces provisions for deeming data as government purpose rights if contractors fail to comply with marking requirements and allows for clawback of excessive payments if improper restrictive markings lead to unjustified sole-source environments. It also expands government purpose rights for detailed manufacturing data needed for wartime or contingency operations.
Sec. 815, Title VIII, Division A
Limitations Relating to Capital Distributions for Defense Contractors
Beginning June 15, 2027, this section prohibits the Secretary of Defense from entering into contracts for goods or services unless the contractor agrees not to purchase its own equity securities or pay dividends/make other capital distributions. A waiver is possible if the contractor commits to a 'qualifying defense investment plan' approved by the Secretary. Non-compliance can lead to penalties, including suspension of payments or contract termination. This authority sunsets on January 1, 2031.
Sec. 901, Title IX, Division A
Establishment of the Economic Defense Unit
This section establishes an Economic Defense Unit (EDU) within the Department of Defense, led by a Director reporting directly to the Deputy Secretary of Defense. The EDU is responsible for coordinating economic competition activities, developing requirements and campaign plans for economic competition, conducting analyses, directing execution, and advising on integration into interagency planning. It also leads DoD outreach to private actors in economic competition and sponsors tabletop exercises.
Sec. 904, Title IX, Division A
Redesignation of Under Secretary of Defense for Personnel and Readiness; Reorganization of Assistant Secretaries of Defense
This section redesignates the Under Secretary of Defense for Personnel and Readiness as the Under Secretary of Defense for Personnel and Health Affairs. It also reorganizes Assistant Secretary positions: the Assistant Secretary of Defense for Sustainment is redesignated as the Assistant Secretary of Defense for Sustainment and Readiness (reporting to Under Secretary for Acquisition, Technology, and Logistics), and the Assistant Secretary of Defense for Readiness is eliminated, with its functions transferred. A new Assistant Secretary of Defense for Housing, Personnel Movement, and Travel Policy is established under the new Under Secretary for Personnel and Health Affairs.
Sec. 905, Title IX, Division A
Establishment of Under Secretary of Defense for Cyber, Information, and Networks
This section establishes a new Under Secretary of Defense for Cyber, Information, and Networks, appointed from civilian life with extensive background in cyber operations or IT. This new Under Secretary will serve as the Principal Cyber Advisor and Chief Information Officer for the DoD, overseeing policy, strategy, and investment priorities for AI, data, cybersecurity, and IT enterprise. The section also establishes a Deputy Under Secretary and Assistant Secretaries for Networks, Cyber Policy, and Resources, and codifies the Chief Digital and Artificial Intelligence Officer and Chief Information Security Officer under this new role.
Sec. 917, Title IX, Division A
Establishment of United States Robotic and Autonomous Systems Command (RASCOM)
This section authorizes the President to establish a new unified combatant command, RASCOM, for robotic and autonomous systems. RASCOM's mission would include force generation, joint training, interoperability, doctrine development, and operational employment through other combatant commands. It would have limited acquisition authority for experimental and rapid prototyping, and a separate major force program category in budget documents. Each service would establish a component command under RASCOM with dedicated career paths.
Sec. 1019, Title X, Division A
Authority for Construction of Vessels in Foreign Shipyards with Onshoring Requirement
This section modifies existing law to allow the Secretary of Defense to construct up to two vessels for each class of 'covered vessels' (bulk fuel and strategic sealift) in foreign shipyards, if it's in the national security interest, the foreign country is a treaty ally with capacity, and concurrent direct capital investments are made in the U.S. maritime industrial base to onshore construction of subsequent vessels. It requires a report and certification before funds are obligated, and mandates that critical mission systems are installed in the U.S. or secure allied facilities.
Sec. 1078, Title X, Division A
Redesignation of the Department of Defense as the Department of War
This section mandates a symbolic and administrative change, redesignating the 'Department of Defense' as the 'Department of War' and the 'Secretary of Defense' as the 'Secretary of War' throughout Titles 10, 32, and 37 of the U.S. Code. It includes conforming changes for related terms like 'OSD' to 'Office of the Secretary of War' and 'DoD' to 'Department of War'.
Sec. 1083, Title X, Division A
Ban on Bets on Military Operations
This section makes it unlawful for any person to place, accept, or facilitate a wager regarding a military operation, including contingency operations, sensitive military operations, or wars. It defines 'wager' broadly to include financial instruments tied to event outcomes, but excludes lawful insurance. The provision also includes civil action enforcement by the Attorney General and amends existing federal laws related to illegal gambling to include this prohibition.
Sec. 1086, Title X, Division A
Requirement for Markings on Lethal Military Platforms
This section prohibits the Secretary of Defense from employing a manned platform with offensive lethal weapons capabilities to conduct an attack if it does not include markings to signify its affiliation with the United States Armed Forces and distinguish itself from the civilian population, equipment, or platforms. This requirement does not apply to platforms with purely defensive weapon capabilities.
Sec. 1204, Title XII, Division A
Abraham Accords Defense Cooperation Initiative
This section establishes the 'United States-Abraham Accords Defense Cooperation Initiative' to bolster defense cooperation between the U.S. and Abraham Accords countries. Its objectives include deterring Iranian aggression, coordinating with the Comprehensive Security Integration and Prosperity Agreement, and enhancing regional planning and cooperation on capabilities like counter-UAS, air defenses, intelligence, and joint military exercises. The Secretary of Defense must submit a strategy and seek matching funds from participating countries.
Sec. 1211, Title XII, Division A
Assistance to Lebanese Armed Forces for Countering Hezbollah and Other Terrorist Groups
This section authorizes up to $36 million in assistance (training, equipment, logistics) to vetted divisions of the Lebanese Armed Forces (LAF) to counter Hezbollah, ISIS, al-Qaeda, and other terrorist groups, and to bolster LAF capacity to disarm Hezbollah. Funds are contingent on the Secretary of Defense certifying that the Government of Lebanon has declared Hezbollah's military activities illegal and that the LAF is actively working to disarm Hezbollah and prevent Iranian support. Quarterly reports are required.
Sec. 1224, Title XII, Division A
United States-Ukraine Strategic Defense Innovation Working Group
This section establishes a U.S.-Ukraine Strategic Defense Innovation Working Group to explore co-development, co-production, acquisition, and transfer of 'covered systems' (expendable, low-cost unmanned systems and counter-UAS capabilities). The group will analyze lessons learned from Ukraine's battlefield, identify high-utility Ukraine-designed systems, develop mutual technology transfer frameworks, and assess the feasibility of testing U.S.-manufactured systems in Ukraine. It aims to accelerate fielding of innovative defense technologies.
Sec. 1250, Title XII, Division A
War Reserve Stock Program for Taiwan
This section authorizes the President to transfer humanitarian, medical, armor, artillery, ammunition, and missile supplies from DoD inventory to Taiwan, specifically for use as reserve stocks located in Taiwan. This is an exception to existing foreign assistance law. A congressional notification is required 30 days before any transfer, identifying items and concessions received, and an annual report summarizing transfers.
Sec. 1647, Title XVI, Division A
Policy and Guidance Related to Autonomous Weapon Systems and Artificial Intelligence Capabilities Acquisition
This section establishes DoD policy to maximize autonomy and AI while ensuring human oversight, accountability, and accuracy. It mandates that autonomous weapon systems (AWS) and AI capabilities maintain human judgment, allow intervention, include fail-safes, and provide sufficient information for operators. It sets two levels of human judgment for AWS and AI capabilities (Level 1: low/no risk, Level 2: moderate/high risk) and requires review and verification before prototyping/development and fielding. It prohibits certain AI uses (e.g., nuclear launch, targeting U.S. persons without legal authority).
Title XLI, Division D
Procurement Authorizations for Fiscal Year 2027
This title authorizes specific appropriations for procurement across the Army, Navy, Marine Corps, Air Force, Space Force, and Defense-Wide activities for fiscal year 2027. It details funding for aircraft, missiles, weapons, ammunition, shipbuilding, and other equipment, including significant investments in programs like the F-35, CH-53K, Virginia Class Submarine, B-21 Raider, and Ground Based Strategic Deterrent.
Title XLII, Division D
Research, Development, Test, and Evaluation (RDT&E) Authorizations for Fiscal Year 2027
This title authorizes appropriations for RDT&E activities across the Army, Navy, Air Force, Space Force, and Defense-Wide programs for fiscal year 2027. It includes funding for basic research, applied research, advanced technology development, advanced component development and prototypes, system development and demonstration, and management support, with a strong emphasis on areas like artificial intelligence, hypersonics, cyber, and space technologies.
Title XLIII, Division D
Operation and Maintenance (O&M) Authorizations for Fiscal Year 2027
This title authorizes appropriations for Operation and Maintenance activities across all military services and Defense-Wide for fiscal year 2027. It covers a wide range of activities including operating forces, mobilization, training and recruiting, and administration and servicewide activities. Key areas include depot maintenance, flying hour programs, base support, cyberspace sustainment, and medical readiness, with significant transfers of Facilities Sustainment, Restoration & Modernization (FSRM) funds to Division B (Military Construction).
Title XLIV, Division D
Military Personnel Authorizations for Fiscal Year 2027
This title authorizes appropriations for military personnel across all services for fiscal year 2027, totaling $188,652,405,000. It also includes $14,349,269,000 for Medicare-Eligible Retiree Health Care Fund Contributions. The appropriations cover basic pay, various incentive and special pays for enlisted members and officers, and adjustments related to force structure changes.
Title XLV, Division D
Other Authorizations for Fiscal Year 2027 (Working Capital Funds, Drug Interdiction, Inspector General, Defense Health Program, CTEF)
This title authorizes appropriations for various other defense-related activities for fiscal year 2027. It includes funding for Working Capital Funds (Army, Navy, Air Force, Defense-Wide, DECA), Chemical Agents & Munitions Destruction, Drug Interdiction & Counter-Drug Activities (including National Guard programs), the Office of the Inspector General, the Defense Health Program (O&M, RDT&E, Procurement, Private Sector Care), and the Counter-Islamic State of Iraq and Syria Train and Equip Fund (CTEF).
Title XLVI, Division D
Military Construction (MILCON) Authorizations for Fiscal Year 2027
This title authorizes appropriations for military construction projects, land acquisition, facilities sustainment, and family housing functions for all military services and Defense-Wide activities for fiscal year 2027. It includes significant investments in new construction, family housing, and base realignment and closure activities, with notable projects in Guam, Hawaii, and various overseas locations, reflecting a focus on Indo-Pacific posture and infrastructure modernization.
Title XLVII, Division D
Department of Energy National Security Programs Authorizations for Fiscal Year 2027
This title authorizes appropriations for Department of Energy national security programs for fiscal year 2027, totaling $41,143,582,000. This includes significant funding for the National Nuclear Security Administration (NNSA) for Weapons Activities (stockpile management, production modernization, R&D), Defense Nuclear Nonproliferation, and Naval Reactors. It also funds Defense Environmental Cleanup and Other Defense Activities, ensuring the maintenance and modernization of the U.S. nuclear deterrent and related security programs.
Prohibits covered institutions (universities conducting DoD-funded research) from entering into contracts with 'covered nations' (e.g., China, Russia) or 'foreign entities of concern' starting January 1, 2028. It includes a detailed list of entities of concern and foreign talent programs.
Sec. 220, Title II, Division A, Section 4147(a) of Title 10, U.S. Code
Why it matters:This is a standard legislative practice for codifying new authorities and definitions, but the complexity of the definitions and cross-references can make it challenging for non-specialists to grasp the full scope of the prohibition.
Case for: Proponents argue this is a critical measure to prevent intellectual property theft, counter foreign malign influence in sensitive research, and safeguard national security by severing ties between U.S. research institutions and adversarial entities.
Case against: Critics might argue that such broad prohibitions could stifle academic freedom, hinder legitimate international scientific collaboration, and create significant administrative burdens for universities, potentially leading to a 'chilling effect' on research partnerships.
Estimated impact: Potentially impacts hundreds of U.S. research institutions and thousands of foreign entities, with significant financial and operational implications for affected contracts and collaborations.
Implements a two-phase ban on connected vehicles of concern on military installations: Phase I (July 1, 2027) bans vehicles already prohibited by Commerce regulations; Phase II (January 1, 2029) bans additional vehicles tied to foreign entities of concern and posing national security risks, as designated by the Secretary of Defense.
Sec. 353, Title III, Division A, Subsections (a) and (b)
Why it matters:The phased implementation is a standard approach for allowing time for compliance. The reliance on external regulations and future designations is a common way to provide flexibility and adapt to evolving threats without requiring new legislation for every update.
Case for: Proponents argue this is a vital cybersecurity and counterintelligence measure to prevent foreign adversaries from exploiting connected vehicle technology to surveil or disrupt military operations and personnel.
Case against: Critics might argue that this imposes a significant burden on military personnel and their families, who may own affected vehicles, potentially requiring them to purchase new cars or face restricted access to bases.
Estimated impact: Potentially affects thousands of military personnel and their families, as well as the automotive industry. The financial impact on individuals could be substantial.
Establishes 'default government purpose rights' for technical data and computer software delivered under DoD contracts for noncommercial products/services, unless contractors provide clear and convincing evidence for more restrictive rights. It also includes provisions for deeming data as government purpose rights if contractors fail to comply with marking requirements and allows for clawback of excessive payments from contractors for improper restrictive markings.
Sec. 804, Title VIII, Division A, Subsection (b)
Why it matters:The technical nature of data rights naturally leads to complex statutory language. However, the significant shift in default rights and the introduction of clawback provisions are substantively consequential and could be intentionally placed within technical amendments to avoid broader public debate.
Case for: Proponents argue this will significantly reduce vendor lock-in, foster competition for sustainment and upgrades, and save taxpayer money by ensuring the government has necessary data rights without overpaying for proprietary information.
Case against: Critics, particularly large defense prime contractors, contend this undermines intellectual property protections, disincentivizes private R&D investment, and could lead to a 'race to the bottom' on pricing, ultimately harming innovation and the long-term health of the defense industrial base.
Estimated impact: Potentially shifts billions of dollars in intellectual property value and future sustainment costs from contractors to the government, impacting the profitability and business models of defense companies.
Redesignates the 'Department of Defense' as the 'Department of War' and the 'Secretary of Defense' as the 'Secretary of War' throughout Titles 10, 32, and 37 of the U.S. Code, with conforming changes for related terms.
Sec. 1078, Title X, Division A
Why it matters:The placement in 'General Provisions' for a symbolic change is a common legislative tactic for controversial or politically charged items that might not garner sufficient support as standalone legislation or if highlighted prominently. It allows for passage within a must-pass bill.
Case for: Proponents might argue this name change more accurately reflects the department's core mission of preparing for and conducting warfare, sending a clear signal of resolve to adversaries and allies. They may believe it fosters a more direct and assertive mindset within the military.
Case against: Critics would contend that the name 'Department of Defense' reflects a broader mission of deterrence, diplomacy, and global security, not just warfighting. They might argue that 'Department of War' is anachronistic, signals an overly aggressive posture, and could negatively impact diplomatic efforts or public perception.
Estimated impact: Primarily symbolic, but could have significant implications for public perception, international relations, and internal military culture. Administrative costs for updating signage, documents, and digital systems would be substantial.
Prohibits any person from placing, accepting, or facilitating a wager regarding a military operation, broadly defined to include contingency operations, sensitive military operations, or wars. It includes civil enforcement and amends existing gambling laws.
Sec. 1083, Title X, Division A
Why it matters:This is a specific prohibition on a niche activity that might not be widely known or understood. Its inclusion in a comprehensive defense bill ensures it passes without extensive standalone debate, which might be difficult given its unique subject matter.
Case for: Proponents argue that this ban is essential to prevent perverse incentives, maintain the integrity of military operations, and protect the reputation of the Armed Forces from financial speculation on human lives and national security events.
Case against: Critics might argue that this could be an overreach of federal authority into private financial activities, potentially infringing on individual freedoms or the operation of legitimate prediction markets, even if the subject matter is sensitive.
Estimated impact: Prevents financial speculation on military operations, impacting a small but potentially influential segment of the financial and betting markets. The direct financial impact is likely limited but the ethical implications are significant.