The FY2026 National Defense Authorization Act (NDAA), signed into law by President Donald Trump on December 18, 2025, marks a pivotal moment in U.S. defense strategy, emphasizing technological superiority, rapid acquisition reforms, and supply chain security. With a staggering $900.6 billion allocation, the NDAA surpasses the presidential budget request by roughly $8 billion, underscoring its critical role in maintaining U.S. military dominance.
The NDAA’s procurement plan is ambitious, earmarking $26 billion for shipbuilding, $38 billion for aircraft, $4 billion for ground vehicles, and $25 billion for munitions. This substantial investment reflects a strategic focus on modernizing and expanding the U.S. military’s capabilities across multiple domains. The emphasis on maintaining technological superiority is evident in the significant investments in emerging technologies, including artificial intelligence (AI), hypersonic programs, and space-based systems.
One of the standout features of the NDAA is its push for the rapid integration of AI into military operations. The Department of War (DOW) is tasked with developing AI systems that act as reliable “teammates” in planning and execution, with a strong emphasis on accountability and traceability. This initiative aims to achieve operational efficiency and decision superiority through Applied Artificial Intelligence (AAI), ensuring that AI systems enhance rather than replace human decision-making.
The act also provides over $2.6 billion for hypersonic programs, recognizing their importance in modern warfare. Significant investments are allocated to space-based systems, including missile-warning, missile-tracking, and next-generation intelligence-collection satellites. Advanced technologies, such as deploying nuclear reactors on the Moon, are being developed to ensure U.S. space dominance. The legislation targets resources for unmanned aerial systems (UAS), uncrewed maritime platforms, and counter-UAS technologies, highlighting the growing importance of autonomous systems in military operations.
The NDAA addresses the need for data-driven logistics management tools to handle potentially disrupted supply lines in future conflicts. Provisions are included to secure U.S. biotechnology supply chains against foreign adversaries and to strengthen the recruitment and retention of a skilled cyber workforce through new hiring authorities. The budget includes investments for developing quantum computing capabilities that advance U.S. technical superiority.
To ensure these technologies are fielded quickly, the NDAA encourages several changes. The act highlights speed and urgency and is designed to ensure warfighters receive urgently needed capabilities, embracing an “acceleration imperative” that requires faster development and deployment cycles. The Administration is signaling openness to new suppliers and investment models, including private capital, to build a more resilient and innovative defense industrial base.
The overall aim of the FY2026 NDAA regarding technology is to leverage innovation into tactical advantages on the battlefield, thereby maintaining America’s military superiority. Transforming Warfighting The NDAA reforms focus on accelerating requirements, centralizing program management, and embedding sustainment planning to avoid costly readiness gaps and overruns. NDAA revises acquisition rules to prioritize “best value” instead of “lowest overall cost” and emphasizes “price competition.” It requires the defence acquisition system to expeditiously provide the Armed Forces with the capabilities needed to operate in the most cost‑effective manner possible.
The NDAA fortifies the defence industrial base by deepening allied integration, expanding funding and hiring authorities for critical supply chains, and streamlining cybersecurity and technology transfer. It directs the DOW to harmonize cybersecurity rules for the defense industrial base by June 01, 2026. A key provision requires the DOW to build a digital inventory of weapon‑system technical data to prevent sustainment gaps. It creates a U.S.-Israel Defense Industrial Base Working Group to study deeper integration and potential inclusion of Israel in the national technology and industrial base, with protections for sensitive information. It directs the War Secretary to produce a technology framework to revise transfer and foreign disclosure policies for artificial intelligence (AI), counter-unmanned aircraft systems (c-UAS), missile defence, and other topics. It emphasises the need for contractors to maintain or invest in surge capacity, and the steps to address it.
The bill advances missile defence by enforcing the Golden Dome policy. “The Iron Dome for America” requires that every major weapon system have a designated product support manager responsible for sustainment, planning, and readiness outcomes to achieve availability targets. The Bill sets policy to deploy and maintain a “next-generation missile defence shield” capable of defending against complex ballistic, hypersonic, and cruise missile threats. It bars the Pentagon from outsourcing missile intercept capabilities to private or subscription-based models. The Secretary of War must develop and operate a missile defence system with kinetic missile capabilities that is “owned and operated” by the armed forces. It authorizes US funding for Israeli missile defence programs, including up to