Department of Defense Appropriations Act, 2026
Sponsored By: Senator Sen. McConnell, Mitch [R-KY]
In Committee
Summary
Provides FY2026 funding and policy direction for the Department of Defense. It would set military pay and benefits, fund operations and maintenance, procurement, and research, and authorize major security cooperation programs with reporting and transfer limits.
Show full summary
- Service members and families: Would fund military personnel costs, including active-duty appropriations such as the Army $54.6 billion and the Navy $40.5 billion.
- Readiness, procurement, and R&D: Would supply large O&M and procurement funds, including Army O&M $59.3 billion and Navy O&M $76.4 billion, and sets procurement and RDT&E availability windows through 2028 or 2030.
- Foreign partners and allies: Would allocate $4.6 billion for international security cooperation and $1.5 billion for Indo-Pacific/Taiwan assistance, both subject to prior congressional notice and quarterly reporting.
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Bill Overview
Analyzed Economic Effects
31 provisions identified: 21 benefits, 6 costs, 4 mixed.
Pay for active duty and reserves
If enacted, the bill would fund pay, allowances, and related benefits for active-duty service members, Reservists, and the National Guard for the current fiscal year. It lists Army $54,600,301,000 ($54.6 billion); Navy $40,471,905,000 ($40.47 billion); Air Force $38,769,789,000 ($38.77 billion); Marine Corps $16,989,137,000 ($16.99 billion); Space Force $1,496,608,000 ($1.50 billion). It also provides Reserve and Guard totals such as Army Reserve $5,710,382,000 and Army National Guard $10,431,333,000. The funds include related retirement transfers to the Military Retirement Fund.
Protect DoD civilian jobs
If enacted, DoD could not convert civilian work to contractor performance unless a public‑private competition includes a most efficient organization plan, projected contractor savings are at least the lesser of 10% of the plan's personnel costs or $10,000,000, and the contractor does not gain by offering weaker health benefits. The rule would apply during the current fiscal year.
Limit NSA targeting of U.S. persons
If enacted, the NSA could not use funds from this bill to acquire capabilities under FISA section 702 to target a U.S. person. The NSA would also be barred from acquiring, monitoring, or storing contents of a U.S. person's electronic communications from a public provider under FISA section 501.
Major foreign security assistance funds
If enacted, the bill would provide large security assistance: about $1.3 billion for international security cooperation, $1.5 billion for Indo‑Pacific/Taiwan, $800 million for Ukraine, $192.3 million for section 1207 support, and authority to obligate up to $350 million in anticipation of Kuwaiti contributions. Many uses need at least 15 days' notice to Congress and quarterly reports. Funds generally remain available through Sept. 30, 2027.
Large readiness transfer funding
If enacted, $1.925 billion would be appropriated to improve military readiness and be available for transfer to service O&M accounts. The funds cannot be obligated until 30 days after the Secretary gives a detailed execution plan to the House and Senate Appropriations Committees.
Funding for reserve and sealift fleets
If enacted, $785 million would be available for the National Defense Reserve Fleet and reimbursements to the Maritime Administration. An additional $335 million would be available to buy three used sealift vessels, with those funds available until Sept. 30, 2030.
Pay past shipbuilding cost increases
If enacted, the bill would provide $1,676,587,000 (about $1.68 billion) under Navy Shipbuilding and Conversion to cover prior-year shipbuilding cost increases. The money is available until September 30, 2026, and is allocated to named programs, including $150 million for Carrier Replacement and $483.1 million for CVN refueling overhauls.
Rapid acquisition funding cap
If enacted, the Secretary of Defense could use up to $650 million for rapid acquisition and deployment for specific urgent purposes. Uses are subject to sub‑limits of $50 million and $100 million for certain clauses, and the Secretary must notify Congress of uses.
Ban on DoD housing repairs
If enacted, DoD could not use funds in this Act to repair or maintain military family housing during the current fiscal year. Military families in that housing might face delays or out‑of‑pocket repair costs.
Cuts to some DoD operation budgets
If enacted, Title II funding would be reduced by $1.1 billion total. The bill would cut $850 million to reflect working capital fund cash balances ($350 million from Army O&M and $500 million from Air Force O&M) and cut $250 million for lower fuel costs. These are reductions to enacted Title II appropriations.
Ban forced arbitration for workers
If enacted, contractors getting federal contracts over $1,000,000 could not force employees or certain contractors to resolve Title VII claims or torts tied to sexual assault or harassment through arbitration. Covered subcontractors must include the same promise. The Secretary of Defense may waive this for national security with public notice.
More counsel for sexual assault victims
If enacted, $47 million would be provided to continue and expand the Sexual Assault Special Victims' Counsel Program. Funds may be transferred to service accounts and used for the same purposes as those receiving appropriations.
Support for military health and families
If enacted, up to $165 million could be transferred from Defense Health Program O&M to the joint DoD–VA Demonstration Fund to support operations at the Captain James A. Lovell Federal Health Care Center. Also, each military department could transfer up to $11 million from its O&M to its Fisher House central fund this fiscal year to pay for family lodging and related services. Additional transfers to the Demonstration Fund may be allowed with written notice to Appropriations committees.
Free military housing for tribes
If enacted, the Air Force could convey excess relocatable military housing units at no cost to eligible Indian tribes in eight named States. Tribes must request units through the Operation Walking Shield Program, and the Secretary would resolve conflicting requests. Conveyed units may need to be removed within a reasonable period set by the Secretary.
More transparent small business R&D funding
If enacted, SBIR and STTR set-asides would have to be taken proportionally from all programs that fund extramural work. Military department and agency leaders would have to report detailed accounting of those set-asides with budget justifications. The Secretary of Defense would also have to post grant awards made with money from this bill on a public, searchable website.
Agencies must post reports publicly
If enacted, agencies that get money from this bill must post on their public website any report they are required to send Congress, unless posting would harm national security or reveal proprietary information. Agencies must wait at least 45 days after giving the report to the requesting congressional committee and find posting serves the national interest.
New limits on when DoD spends
If enacted, no more than 20% of limited FY2026 appropriations may be obligated in the last two months of the year. Money in this Act could not be used beyond the current fiscal year unless the Act allows it. New demonstration projects over $5,000,000 in named programs could not be obligated until 15 days after Congress receives a written project report, unless waived for national interest.
Limit FY2026 software pilots
If enacted, FY2026 funds for agile software and digital pilot work would be limited to seven named pilot program elements. Agencies could not start any additional Software and Digital Technology Pilot Programs in FY2026.
Tighter rules for contractors' eligibility
If enacted, agencies could not award contracts, grants, or loans to corporations with certain unpaid federal tax liabilities after appeals unless suspension or debarment was ruled unnecessary. DoD would also be barred from reimbursing contractors for restructuring bonuses tied to business combinations during the current fiscal year.
Block Guantanamo closure funding
If enacted, money in this Act could not be used to close or realign the U.S. Naval Station at Guantanamo Bay, Cuba. The provision would prevent use of these appropriations for closure or realignment activities.
Tight rules on NIP budget moves
If enacted, the Director of National Intelligence would have 60 days to give Congress a FY2026 baseline report. Until then, National Intelligence Program (NIP) funds could not be reprogrammed or transferred except for certified emergencies. Certain transfers, new starts, or terminations of $10 million or more would also require 30 days' advance notice to the intelligence committees.
Block pornography on funded networks
If enacted, networks maintained or created with these funds would have to block access to pornography. Exceptions apply for law enforcement investigations and for networks needed for national defense or intelligence.
Stricter U.S.-made procurement rules
If enacted, DoD would have to follow Buy American rules and require U.S. manufacture for many ship components and other items. Rules would cover ship auxiliary parts, propulsion equipment, anchor and mooring chains, certain steel plates, bearings, and similar items for listed programs. The Secretary can issue limited waivers if U.S. supply is not timely. Non‑U.S. supercomputers would be allowed only after a narrow national‑security certification.
USO grant authorization
If enacted, the Secretary of Defense could award $24 million in grants to the United Service Organizations (USO) if the Secretary determines the grants serve the national interest.
Mitigation funds for Indian lands
If enacted, at least $12 million would be set aside to mitigate environmental impacts on Indian lands from DoD activities. Funds could pay for training, technical help, documentation of damage, and planning to prioritize fixes.
Higher per-item O&M purchase limit
If enacted, DoD could use O&M funds to buy investment items that cost up to $350,000 each. The Secretary may raise that per‑item limit to $500,000 for a named overseas contingency operation.
Short-term lease waiver for Guard partners
If enacted, the Chief of the National Guard Bureau could waive some or all payments for short‑term (one‑year or less) personal property leases to specified nonprofit youth, social, or fraternal organizations on a case‑by‑case basis.
Stop unauthorized PR spending
If enacted, money in this bill could not be used for publicity or propaganda that Congress has not authorized. This would limit some agency public‑relations spending paid from these funds.
Small Navy ship transfer authority
If enacted, the Secretary could transfer up to $40 million between Navy accounts to cover inflation or market changes in ship construction. Transfers must wait 30 days after reporting to Appropriations Committees and the authority expires on Sept. 30, 2030.
Keep university indirect cost rates
If enacted, the Department of Defense would keep negotiated indirect cost rates for universities as they were applied in fiscal year 2024 and could not use these funds to change those rates.
No travel card gambling or strip club bills
If enacted, DoD military and civilian personnel could not use government travel cards for gambling or for entertainment that includes topless or nude performers. Those charges would not be reimbursed.
Sponsors & CoSponsors
Sponsor
Sen. McConnell, Mitch [R-KY]
KY • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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