Congress released a $900 billion defense bill that reshapes U.S. economic and military competition with China by imposing new investment restrictions, banning a range of Chinese-made technologies from Pentagon supply chains, and expanding diplomatic and intelligence efforts to track Beijing’s global footprint. 

The legislation, which authorizes War Department spending at $8 billion above the White House’s request, includes a 4% pay raise for enlisted service members, expands counter-drone authorities, and directs new investments in the Golden Dome missile defense shield and nuclear modernization programs. 

It also extends Pentagon support to law enforcement operations at the southwest border and strengthens U.S. posture in the Indo-Pacific, including funding for Taiwan’s security cooperation program.

In a victory for conservative privacy hawks like House Judiciary Committee Chairman Jim Jordan, R-Ohio, the legislation includes a non-defense provision that would mandate FBI disclosure when the bureau was investigating presidential candidates and other candidates for federal office.

That measure was the subject of party in-fighting last week when Rep. Elise Stefanik, R-N.Y., whom Speaker Mike Johnson, R-La., had appointed chairwoman of House GOP leadership, publicly accused the speaker of kowtowing to Democrats and allowing that provision to be removed.

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Johnson said he was blindsided by Stefanik’s anger and was unaware of her concerns when she had made them public.

Stefanik later claimed victory on X, stating the provision had been reinstated after a conversation between herself, Johnson and President Donald Trump. 

Coverage of in vitro fertilization (IVF) for military families, which became a flashpoint in recent days, is not included in the final NDAA. Neither are provisions preempting states from regulating AI or banning a U.S. central bank digital currency (CBDC). 

Republicans have pushed the CBDC prohibition as a privacy and civil-liberties measure, arguing that a government-issued digital dollar could give federal agencies the ability to monitor or restrict individual transactions. 

House aides said the anti-CBDC language became tied to a separate housing-policy package known as “Road to Housing,” and the concessions required to keep both items together were unacceptable.

The bill also establishes a new “Artificial Intelligence Futures Steering Committee” charged with producing long-range forecasts and policy recommendations for advanced AI systems, including artificial general intelligence.

House and Senate negotiators released a $900-billion defense bill that reshapes U.S. economic and military competition with China by imposing new investment restrictions, banning a range of Chinese-made technologies from Pentagon supply chains, and expanding diplomatic and intelligence efforts to track Beijing’s global footprint.  (Demetrius Freeman/The Washington Post via Getty Images)

The legislation takes aim at long-standing bottlenecks in the defense industrial base by authorizing new investment tools, expanding multi-year procurement for high-demand munitions and platforms, and overhauling portions of the acquisition system to speed the fielding of commercial and emerging technologies. 

Alongside those reforms, lawmakers approved new “right-to-repair” style requirements that force contractors to provide the technical data the Pentagon needs to maintain and sustain major weapons systems—a change intended to reduce vendor lock-in and ease chronic maintenance delays across the fleet.

One major section of the bill establishes a far-reaching outbound investment screening system, requiring U.S. companies and investors to alert the Treasury Department when they back certain high-risk technologies in China or other “countries of concern.” The measure gives Treasury the ability to block deals outright, forces detailed annual reporting to Congress, and grants new authorities to sanction foreign firms tied to China’s military or surveillance networks. Lawmakers cast the effort as a long-overdue step to keep U.S. capital from fueling Beijing’s development of dual-use technologies.

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The bill also includes a procurement ban targeting biotechnology providers that would bar the Pentagon from contracting with Chinese genetic sequencing and biotech firms linked to the People’s Liberation Army or China’s security services. 

Additional sourcing prohibitions restrict the War Department from purchasing items such as advanced batteries, photovoltaic components, computer displays, and critical minerals originating from foreign entities of concern, further tightening U.S. supply chains away from China. They also require the department to phase out the use of Chinese-made computers, printers and other tech equipment.

Beyond economic measures, the NDAA directs the State Department to deploy a new cadre of Regional China Officers at U.S. diplomatic posts around the world, responsible for monitoring Chinese commercial, technological, and infrastructure activities across every major geographic region, including Beijing’s Belt and Road Initiative.

NDAA authorizes Pentagon budget at $8 billion above White House request.  (Julia Demaree Nikhinson/AP)

The NDAA contains several Israel-related provisions, including a directive for the Pentagon to avoid participating in international defense exhibitions that bar Israeli involvement. It authorizes funding for  Iron Dome, David’s Sling, and Arrow – the missile defense programs the U.S. operates with Israel. 

The bill also requires biennial reports comparing China’s global diplomatic presence to that of the United States. The Pentagon is separately directed to strengthen U.S. posture in the Indo-Pacific by extending the Pacific Deterrence Initiative and expanding cooperative training and industrial-base initiatives with regional allies, including Taiwan and the Philippines.

The legislation reauthorizes the Ukraine Security Assistance Initiative at $400 million per year for fiscal years 2026 and 2027. Congress will also require more frequent reporting on allied contributions to Ukraine to track how European partners support Kyiv.

The bill repeals two long-dormant war authorizations tied to earlier phases of U.S. military involvement in Iraq, while leaving the primary post-9/11 counterterrorism authority untouched. Lawmakers said the final text includes repeals of the 1991 Gulf War AUMF and the 2002 Iraq War AUMF, both of which successive administrations have said are no longer operationally necessary. The 1991 authorization approved the U.S.-led effort to expel Iraqi forces from Kuwait, and the 2002 authority permitted the invasion of Iraq under President George W. Bush.

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Both parties have debated winding down these authorizations for years, arguing they no longer reflect current U.S. missions in the Middle East. Presidents from both parties, including Trump, have maintained that modern military operations in the region do not rely on either statute and that the commander in chief already holds sufficient Article II authority to defend U.S. personnel when required. Repeal also answers long-running concerns in Congress about outdated war authorities being used as secondary legal justifications for actions far from their original intent, such as the 2020 strike on Iranian Gen. Qassem Soleimani.

The NDAA does not touch the 2001 Authorization for Use of Military Force, which remains the central legal basis for U.S. counter-terror operations against al-Qaeda, ISIS, and associated groups. That post-9/11 statute continues to underpin nearly all active U.S. counter-terror missions worldwide.

House aides said leaders in their chamber hoped to consider the bill as soon as this week. It will first need to go through the House Rules Committee, the final gatekeepers before legislation gets a chamber-wide vote. It could hit that panel as early as Tuesday afternoon.

Then it will head for a vote in the Senate before reaching Trump’s desk for his signature.