WASHINGTON, Dec 9 - The U.S. House of Representatives is due to vote this week on the final version of the 2026 National Defense Authorization Act, or NDAA, a nearly $1 trillion bill setting policy for the Pentagon that Congress has passed for 63 straight years.
Because it becomes law every year, Congress uses the NDAA as a vehicle for a wide range of initiatives, from pay raises for the troops to competition with China and Russia and major weapons programs. It is closely watched by major defense companies, such as Lockheed Martin, RTX Corp and other firms that receive Department of Defense contracts.
Here are some highlights of this year's bill:
PROGRAMS FOR EUROPE
Days after President Trump released a National Security Strategy seen as friendly to Russia and a reassessment of the U.S. relationship with Europe, lawmakers included several provisions in the NDAA that boost Europe's security.
The bill provides $400 billion for Ukraine as part of the Ukraine Security Assistance Initiative, which pays U.S. companies for weapons for Ukraine's military. It also authorizes the Baltic Security Initiative and provides $175 million to support Latvia, Lithuania and Estonia's defense.
The bill also limits the Defense Department's ability to drop the number of U.S. forces in Europe to less than 76,000 and bars the U.S. European Commander from giving up the title NATO Supreme Commander.
COMBATING CHINA
The NDAA sets up a process for screening outbound investment in China, requiring Americans and U.S. companies to alert the Department of the Treasury when they back sensitive technologies in China. Treasury would also have more power to block such deals.
The NDAA also includes the "Biosecure Act," which bars some Chinese biotech companies from receiving federal funding.
Amid concerns that China might try to invade Taiwan, the bill fully funds the Taiwan Security Cooperation Initiative at $1 billion, auth...


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