S. 1071
National Defense Authorization Act for Fiscal Year 2026
Sponsor: John Cornyn
1 cosponsor
Official summary
Written by the Congressional Research Service.
National Defense Authorization Act for Fiscal Year 2026
This bill sets forth policies and authorities for FY2026 for Department of Defense (DOD) programs and activities, military construction, and the national security programs of the Department of Energy (DOE). The bill also sets forth policies and authorities for the Department of State, the Coast Guard, and the Intelligence Community (IC).
Among other elements, the bill
- authorizes the procurement of various items, including aircraft, ships, and missiles;
- sets active duty and reserve component personnel strength levels;
- sets policy regarding various aspects of military health care and military compensation;
- sets policy regarding DOD acquisitions and acquisition management, including contracting authorities and domestic sourcing;
- sets policy for various matters related to DOD interactions with foreign nations, including matters concerning Israel, Ukraine, and the Indo-Pacific;
- sets policy for various matters related to DOD cyber operations, cybersecurity, and artificial intelligence;
- authorizes specified military construction projects and extends the authorization of certain projects from previous fiscal years;
- authorizes the National Nuclear Security Administration, Defense Nuclear Facilities Safety Board, Naval Petroleum Reserves, and Maritime Administration;
- sets policy regarding the organization and workforce of the State Department;
- sets acquisition and personnel policy for the Coast Guard;
- sets policy for merchant mariner credentials, vessel safety, and oil pollution response; and
- sets policy for the IC regarding artificial intelligence and biotechnology.
For additional information on the National Defense Authorization Act (NDAA) see
- In Focus IF10516, Defense Primer: Navigating the NDAA, and
- In Focus IF10515, Defense Primer: The NDAA Process.
Text of the bill
A Department of Defense Authorizations
I Procurement
A Authorization of Appropriations
B Army Programs
C Navy Programs
D Air Force Programs
E Defense-wide, Joint, and Multiservice Matters
II Research, Development, Test, and Evaluation
A Authorization of Appropriations
B Program Requirements, Restrictions, and Limitations
C Biotechnology Matters
D Plans, Reports, and Other Matters
III Operation and Maintenance
A Authorization of Appropriations
B Energy and Environment
C Logistics and Sustainment
D Matters Relating to Munitions
E Other Matters
IV Military Personnel Authorizations
A Active Forces
B Reserve Forces
C Authorization of Appropriations; Reports
V Military Personnel Policy
A Officer Policy
B Reserve Component Management
C General Service Authorities and Military Records
D Recruitment and Accession
E Member Training
F Member Education
G Military Justice and Other Legal Matters
H Career Transition
I Family Programs, Child Care, and Dependent Education
J Decorations and Awards, Reports, and Other Matters
VI Compensation and Other Personnel Benefits
A Basic Pay and Retired Pay
B Bonus, Incentive, and Separation Pays
C Allowances
D Leave
E Family and Survivor Benefits
F Defense Resale Matters
G Other Benefits, Administrative Matters, Reports, and Briefings
VII Health Care Provisions
A TRICARE and Other Health Benefits
B Health Care Administration
C Studies, Reports, and Other Matters
VIII Acquisition Policy, Acquisition Management, and Related Matters
A Acquisition Policy and Management
B Amendments to General Contracting Authorities, Procedures, and Limitations
C Provisions Relating to Workforce Development
D Provisions Relating to Supply Chains and Domestic Sourcing
E Prohibitions and Limitations on Procurement
F Industrial Base Matters
G Other Matters
IX Department of Defense Organization and Management
A Office of the Secretary of Defense and Related Matters
B Other Department of Defense Organization and Management Matters
X General Provisions
A Financial Matters
B Counterdrug Activities
C Naval Vessels and Shipyards
D Counterterrorism
E Miscellaneous Authorities and Limitations
F Studies and Reports
G Other Matters
XI Civilian Personnel
XII Matters relating to foreign nations
A Assistance and training
B Foreign military sales and related processes
C Matters relating to the Middle East
D Matters relating to Israel
E Matters relating to Europe, Ukraine, and the Russian Federation
F Matters relating to the Indo-Pacific region
G Matters relating to Asia
H Other matters
XIV Other Authorizations
A Military Programs
B National Defense Stockpile
C Other Matters
XV Cyberspace-related Matters
A Cyber Operations
B Cybersecurity
C Information Technology and Data Management
D Artificial Intelligence
E Reports and Other Matters
XVI Space Activities, Strategic Programs, and Intelligence Matters
A Space Activities
B Defense Intelligence and Intelligence-Related Activities
C Nuclear Forces
D Missile Defense Programs
E Matters Relating to Unidentified Anomalous Phenomena
F Matters Relating to Electromagnetic Warfare
G Other Matters
XVII Other Defense Matters
XVIII Acquisition Reform
A Alignment of the Defense Acquisition System
(a) Changes to applicability of full cost accounting standards coverage
(1) In general. Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall revise the rules and procedures prescribed pursuant to subsections (a) and (b) of section 1502 of title 41, United States Code, to the extent necessary to increase the thresholds established in section 9903.201-2 of title 48, Code of Federal Regulation, from $50,000,000 to $100,000,000 (as adjusted for inflation in accordance with section 1908 of title 41, United States Code).
(2) Department of defense. Not later than 120 days after the date of the enactment of this Act, the Secretary shall update the Department of Defense Supplement to the Federal Acquisition Regulation to require full compliance with cost accounting standards established under section 1502 of title 41, United States Code, only for an entity or subsidiary of an entity that—
(A) received a single contract award under such cost accounting standards with a value equal to or greater than $100,000,000 (as adjusted for inflation in accordance with section 1908 of title 41, United States Code); or
(B) received contracts during the cost accounting period that ended preceding the date of the report with a net value equal to or greater than $100,000,000 (as adjusted for inflation in accordance with section 1908 of title 41, United States Code).
(b) Amendments to cost accounting standards board
(1) Organization. Subsection (a) of section 1501 of title 41, United States Code, is amended by striking Office of Federal Procurement Policy and inserting Office of Management and Budget.
(2) Membership. Subsection (b) of such section 1501 is amended—
(A) by amending paragraph (1) to read as follows:
(1) Members, chairman, and appointment. The Board shall consist of 5 voting members and 2 nonvoting members.
(A) Voting members. One voting member is the Administrator of Federal Procurement Policy, who serves as Chairman. The other 4 members, all of whom shall have experience in Federal Government contract cost accounting, are as follows:
(i) 2 representatives of the Federal Government, each of whom has substantial experience in administering and managing covered contracts—
(I) one of whom is a representative of the Department of Defense appointed by the Secretary of Defense; and
(II) one of whom is an officer or employee of the General Services Administration appointed by the Administrator of General Services.
(ii) 2 individuals from the private sector, each of whom is appointed by the Director of the Office of Management and Budget—
(I) one of whom is a senior employee or retired senior employee of a Government contractor with substantial experience in the private sector involving administration and management of covered contracts; and
(II) one member of the accounting profession, with substantial experience as an accountant.
(B) Nonvoting members. There may be up to 2 nonvoting members appointed by the Board from academia, a nonprofit organization, or a private entity with substantial experience in establishing financial accounting and reporting standards in compliance with Generally Accepted Accounting Principles.
(B) in paragraph (2)—
(i) in subparagraph (A), by inserting , which may be extended for an additional 4-year period by the individual who appointed such member under paragraph (1) after 4 years; and
(ii) in subparagraph (B), by striking paragraph (1)(A) and inserting paragraph (1)(A)(i); and
(C) by adding at the end the following new paragraph:
(4) Ineligibility. Beginning on January 1, 2028, an individual who is a member of an audit entity of an executive agency is not eligible to serve as a member of the Board.
(3) Duties. Subsection (c) of such section 1501 is amended—
(A) in paragraph (2)—
(i) by striking within one year and all that follows through conform such standards and inserting the following: not later than 180 days after the date of enactment of this paragraph, and biennially thereafter, review any cost accounting standards established under section 1502 of this title and eliminate or conform such standards; and
(ii) by striking and at the end;
(B) in paragraph (3), by striking disputes. and inserting the following: disputes, and take necessary action to clarify or improve such standards if misinterpretation or lack of clarity in a standard was a primary component of such dispute; and; and
(C) by adding at the end the following:
(4) ensure that any action taken pursuant to paragraph (3) is not taken solely for the purpose of tailoring such standard to favor a party in the dispute.
(4) Report. Subsection (e) of such section 1501 is amended—
(A) in paragraph (1), by striking and at the end;
(B) in paragraph (2), by striking the period at the end and inserting ; and; and
(C) by adding at the end the following new paragraph:
(3) including a summary of rulemaking activities related to any changes to such standards and any associated timelines for such activities.
(5) Senior staff. Subsection (f)(1)(B) of such section 1501 is amended—
(A) by striking may appoint and inserting shall appoint; and
(B) by striking two and inserting not less than four.
(6) Covered contract defined. Such section 1501 is amended by adding at the end the following new subsection:
(j) Covered contract defined. In this section, the term covered contract means a contract that is subject to the cost accounting standards issued pursuant to section 1502 of this title.
(7) Deadline. Not later than 90 days after the date of the enactment of this Act, the Director of the Office of Management and Budget, the Secretary of Defense, and the Administrator of General Services shall implement the amendments made by this subsection, including making the appointments under section 1501(b) of title 41, United States Code, as amended by this subsection.
(c) Cooperation with the comptroller general. The Secretary of Defense and the Cost Accounting Standards Board established under section 1501 of title 41, United States Code (as amended by this section), shall cooperate in full and in a timely manner with the Comptroller General of the United States, including providing any analysis, briefings, or other information requested by the Comptroller General related to requirements of this section and the amendments made by this section.
(d) Amendment to mandatory use of cost accounting standards
(1) Subcontracts. Section 1502(b)(1) of title 41, United States Code, is amended—
(A) in subparagraph (B)—
(i) by striking of the amount set forth in section 3702(a)(1)(A) of title 10 as the amount is and inserting $35,000,000, as; and
(ii) by inserting , including requirements relating to inflation in section 1908 of this title after law; and
(B) in subparagraph (C)—
(i) by inserting (or the portion of a contract or subcontract) after a contract or subcontract each place it appears;
(ii) in clause (ii), by adding or at the end;
(iii) in clause (iii)—
(I) by inserting (or the portion of such contract or subcontract) after a firm, fixed-price contract or subcontract; and
(II) by striking ; or and inserting a period; and
(iv) by striking clause (iv).
(2) Waiver. in paragraph (3), subparagraph (A) by inserting , as adjusted for inflation in accordance with section 1908 of this title, after $100,000,000.
(3) Regulations. Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall issue such regulations as are necessary to implement the amendments made by this subsection.
(e) Amendment to required board action for prescribing standards and interpretations. Section 1502(c) of title 41, United States Code, is amended—
(1) in paragraph (2), by inserting and at the end;
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(f) Amendments to contract price adjustment requirements
(1) In general. Section 1503(b) of title 41, United States Code, is amended to read as follows:
(b) Amount of adjustment. A contract price adjustment undertaken under section 1502(f)(2) of this title shall be made, where applicable, on relevant contracts that are subject to the cost accounting standards so as to protect the Federal Government from payment, in the aggregate, of increased costs, as defined by the Cost Accounting Standards Board and in accordance with the following requirements:
(1) The Federal Government may not recover costs greater than the aggregate increased cost to the Federal Government, as defined by the Board, on the relevant contracts subject to the price adjustment unless the contractor or subcontractor made a change in its cost accounting practices of which the contractor or subcontractor was aware or should have been aware at the time of the price negotiation and which contractor or subcontractor failed to disclose to the Federal Government.
(2) For such changes in cost accounting practices—
(A) costs recovered by the Federal Government shall exclude any contract or subcontract (or any portion of such contract or subcontract) that is firm, fixed-price, or that is not price-redeterminable based on costs; and
(B) for a fiscal year, for any contract or subcontract (or any portion of such contract or subcontract) that is not a firm, fixed-price contract or subcontract the costs recovered by the Federal Government shall not exceed the net increased costs, if any, paid to the contractor or subcontractor for all changes in cost accounting practices implemented within the same fiscal year.
(2) Regulations. Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall issue such regulations as are necessary to implement the amendments made by this subsection.
B Requirements Process Reform
C Matters Relating to Commercial Products and Commercial Services
D Improvements to Acquisition Programs
E Modifications to Strengthen the Industrial Base
B Military Construction Authorizations
XXI Army Military Construction
XXII Navy Military Construction
XXIII Air Force Military Construction
XXIV Defense Agencies Military Construction
XXV International Programs
A North Atlantic Treaty Organization Security Investment Program
B Host Country In-Kind Contributions
XXVI Guard and Reserve Forces Facilities
XXVII Base Realignment and Closure Activities
XXVIII Military Construction General Provisions
A Military Construction Programs
B Military Housing Reforms
C Real Property and Facilities Administration
D Land Conveyances
E Modifications to Unspecified Minor Military Construction
F Other Matters
C Department of Energy National Security Authorizations and Other Authorizations
XXXI Department of Energy National Security Programs
A National Security Programs and Authorizations
B Program Authorizations, Restrictions, and Limitations
C Reports and Other Matters
XXXII Defense Nuclear Facilities Safety Board
XXXIV Naval Petroleum Reserves
XXXV Maritime Administration
D Funding Tables
XLI Procurement
XLII Research, Development, Test, and Evaluation
XLIII Operation and Maintenance
XLIV Military Personnel
XLV Other Authorizations
XLVI Military Construction
XLVII Department of Energy National Security Programs
E Department of State Authorization Act for Fiscal Year 2026
I Organization and operations
A Management and consular affairs
B Human resources
C Political affairs
D Other matters
II Workforce matters
III Information security and cyber diplomacy
IV Public diplomacy
V Diplomatic security
VI Miscellaneous
F Intelligence Authorization Act for Fiscal Year 2026
LXI Intelligence Activities
LXII Central Intelligence Agency Retirement and Disability System
LXIII Intelligence Community Matters
LXIV Intelligence Community Efficiency and Effectiveness
LXV Matters Relating to Elements of the Intelligence Community
A Central Intelligence Agency
B Elements of Department of Defense
C Federal Bureau of Investigation
LXVI Artificial Intelligence and Other Emerging Technologies
A Artificial Intelligence
B Biotechnology
C Other matters
LXVII Matters Relating to Foreign Countries
A Matters Relating to China
B Other Matters
LXVIII Reports and Other Matters
G Coast Guard Authorization Act of 2025
LXXI Coast Guard
A Authorization of appropriations
B Accountability
LXXII Organization, Authorities, Acquisition, and Personnel of the Coast Guard
A Authorities
B Acquisition
C Personnel
D Coast Guard Academy
E Reports and Policies
LXXIII Shipping and Navigation
A Merchant Mariner Credentials
B Vessel Safety
C Ports
D Matters Involving Uncrewed Systems
E Other Matters
LXXIV Oil Pollution Response
LXXV Sexual Assault and Sexual Harassment Response
A Accountability Implementation
B Misconduct
C Other matters
LXXVI Comptroller General Reports
LXXVII Amendments
H Other Matters
LXXXI Financial Services Matters
LXXXII Judiciary Matters
LXXXIII Foreign Affairs Matters
A Taiwan Non-Discrimination Act of 2025
B BUST Fentanyl Act
C Western Balkans democracy and prosperity
D Countering Wrongful Detention Act of 2025
E Other Matters
LXXXIV National Oceanic and Atmospheric Administration
A National Oceanic and Atmospheric Administration Commissioned Officer Corps
B South Pacific Tuna Treaty matters
C Other Matters
LXXXV Comprehensive Outbound Investment National Security Act of 2025
A General Matters
B Imposition of Sanctions
C Prohibition and notification on investments relating to covered national security transactions
D Securities and Related Matters
LXXXVI Securing the Airspace, Facilitating Emergency Response, and Safeguarding Key Infrastructure, Entertainment Venues, and Stadiums
LXXXVII DFC Modernization and Reauthorization Act of 2025
A Definitions and Less Developed Country Focus
B Management of Corporation
C Authorities Relating to the Provision of Support
D Other Matters
LXXXVIII Other Matters