The National Defense Authorization Act (NDAA) conference agreement for Fiscal Year 2026 was released along with an accompanying joint explanatory statement. The text reflects final negotiated outcomes between the House and Senate bills.
Key points:
- The total national defense authorization includes $890.6 billion for FY2026. This covers:
- $855.7 billion for the Department of Defense.
- $34.3 billion for Department of Energy national security programs and the Defense Nuclear Facilities Safety Board.
- $512.4 million for defense-related activities.
- The legislation includes 22 sections with specific provisions directly impacting research universities.
The table below highlights research and higher education-related provisions of the NDAA:
Section | Title | Description |
Program for the Enhancement of the Research, Development, Test, and Evaluation Centers of the Department of Defense | Requires proposals and an implementation plan for alternative and effective R&D program management including with universities | |
Extension of Limitation on Availability of Funds for Fundamental Research Collaboration with Certain Academic Institutions | Continues the funding prohibition from last year’s bill that restricts funding if an individual receives support from an entity on the 1286 list | |
Catalyst Pathfinder Program | Creates partnerships between operational units of the Army and research universities to collaborate directly with soldiers on innovative applied research and development | |
Modifications to Defense Research Capacity Building Program | Requires separate funding solicitations for PE 0601228D8Z geared towards HBCUs and MSIs | |
National Security and Defense Artificial Intelligence Institute | Establishes AI institutes focused on cross-cutting challenges and/or foundational science for AI systems with host institution(s)/consortia | |
Prohibition on Modification of Indirect Cost Rates for Institutions of Higher Education and Nonprofit Organizations | Prevents DOD from unilaterally modifying DOD indirect cost rates without consultative engagement with the extramural research community | |
Department of Defense Biotechnology Strategy | Requires a report back to Congress on the national security implications of emerging biotechnologies; requires proposals to improve DOD’s biotech strategy, including an assessment weighing benefits of a grand challenge research competition. | |
Prohibition on Painful Research on Domestic Cats and Dogs | DOD may not conduct or support “painful’ research on domestic felines and canines. Provides a national security interest waiver process. | |
Modifications to Defense Industrial Base Fund | Expands the eligible use of authorities to use contracts, grants, other transaction authorities, including cooperative agreements, to support the defense industrial base | |
Combatant Command Experimentation Authority | Provides authorities to commanders to conduct experimentation, prototyping, and technology demonstrations to support the development and testing of innovative technologies and capability solutions to address operational needs. | |
Joint Interagency Task Force 401 | Establishes a Task Force directed to coordinate Unmanned Aerial Systems (UAS) policies across the Department | |
Authority to Establish Regional Outreach Centers for the Defense Innovation Unit | Provides authorities for the creation of regional centers focused on streamlining interactions between DIU, the private sector, and other mission partners. | |
Assessment on Potential Establishment of Incubator Programs for Secure Facilities and Networks at Universities | Requires a feasibility study to evaluate the merits of DOD incubator programs for the development, operation, and sustainment of secure facilities and networks at campuses of select institutions of higher education across the United States | |
Framework for Reforming Technology Transfer and Foreign Disclosure Policies | Requires the Department to development a framework revising the highly restricted transfer of U.S. contracted tech including in arms dealings | |
Irregular Warfare Exercise Laboratory | Creates an irregular warfare laboratory to support the training, experimentation, preparation, and validation of the United States Armed Forces to conduct full-spectrum irregular warfare activities | |
Inclusion on List of Chinese Military Companies of Entities Added to Certain Other Lists | Directs the Secretary to consider inclusion of 1260H entities on other government restriction lists | |
Digital Sandbox Environments for Artificial Intelligence | Establishes a Task Force to develop and deploy artificial intelligence experimentation, training, familiarization and development across DOD. | |
Research, Development, Test, and Evaluation tables | Delineates authorized funding levels | |
Modification of Annual Reports on Influence Operations and Campaigns in the United States by the Chinese Communist Party | Requires an updated listing of colleges and universities in the PRC that conduct military research or host dedicated military initiatives or laboratories | |
DOS Bureau of Educational and Cultural Affairs | Authorizes ECA at the State Department | |
Comprehensive Outbound Investment National Security Act of 2025 | Prohibits a U.S. person or entity from knowingly engaging in a covered national security transaction in any prohibited technology. | |
Prohibition on Contracting with Certain Biotechnology Providers | Bars certain Chinese biotech companies from receiving federal funding |