Action Alert: NDAA Contains Critical Wins for U.S. National Security

Bottom Line up Front

FDD Action supports the final conferenced version of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2026 and urges your support. The final bill has a topline of $900 billion, which is $8 billion above the President’s budget request. The bill includes several provisions critical to U.S. national security that counter adversaries like China and Russia, support allies like Israel, and dedicate resources to counter-narcotics efforts. 

FDD Action endorses the final NDAA and urges your support.

Below we highlight 18 provisions that represent important wins for U.S. national security. 

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Countering China

1. Screening U.S. Outbound to China – Comprehensive Outbound Investment National Security (COINS) Act (Title LXXXV / §§ 8501-8531): This provision establishes stricter screening and outbound investment restrictions to prevent U.S. capital from inadvertently supporting China’s military and technological advancements. It creates robust guardrails to protect national security by limiting investments in sensitive Chinese technology sectors like AI, semiconductors, and hypersonic.
2. Biotechnology Threats – Prohibition on contracting with certain biotechnology providers (§ 851): This provision expands restrictions on government contracts to exclude entities identified as posing risks due to potential connections with foreign adversaries in biotechnology research and development. This measure aims to secure U.S. biotechnological infrastructure and supply chains against foreign influence and espionage. Biotechnology is a key component of Xi Jinping’s “comprehensive national security” strategy. 
3. Improving Taiwan’s Security – Modification of Taiwan Security Cooperation Initiative (§ 1265): This provision updates and expands funding and programs to enhance Taiwan’s self-defense capacity, including advanced training, equipment, and bilateral operational cooperation.
4. Tracking Beijing’s Global Ports – Mapping and report on strategic ports (§ 1704): This provision mandates increased transparency and assessment of Chinese-owned or controlled port facilities worldwide to guide more effective countermeasures.
5. Confronting China’s Global Military Footprint – Strategy to respond to global bases of the People’s Republic of China (§ 8367): The strategy aims to coordinate U.S. defense and diplomatic efforts to confront and mitigate China’s establishment of overseas military bases and dual-use infrastructure.
6. Countering China’s Belt and Road – DFC Modernization and Reauthorization Act (Title LXXXVII / §§ 8701-8758): This provision reauthorizes and modernizes the U.S. International Development Finance Corporation (DFC), increasing its lending capacity and expanding its investment authority to better compete with foreign state-backed entities. It aims to enhance the DFC’s ability to support U.S. foreign policy and economic development objectives by streamlining investment processes and broadening its geographic and financial reach.

Countering Russia

1. Supporting Ukraine’s Defense – Extension and modification of Ukraine Security Assistance Initiative (§ 1243): This provision extends the Ukraine Security Assistance Initiative (USAI) through 2029 to provide sustained military assistance and expand capabilities for Ukrainian forces, authorizing $400 million for the initiative both in FY 2026 and FY 2027.
2. Supporting Baltic States’ Defense Baltic Security Initiative (§ 1247): Establishing the Baltic Security Initiative, this measure provides dedicated funding and strategic programs to bolster the defense capabilities and resilience of Estonia, Latvia, and Lithuania. The initiative targets infrastructure improvements, training, and regional cooperation to deter and respond to Russian aggression. 
3. Saving Ukraine’s Children – Supporting the identification and recovery of abducted Ukrainian children (§ 8363): Focused on humanitarian concerns, this provision mandates programs and support mechanisms to identify, locate, and facilitate the recovery of Ukrainian children abducted during the conflict with Russia.
4. Bolstering the Balkans Against Russian Interference – Western Balkans Democracy and Prosperity Act (Subtitle C of Title LXXXIII / §§ 8331-8341): This provision seeks to strengthen democratic institutions, promote economic development, and counter malign influences, including those from Russia, in the Western Balkans. It codifies sanctions against actors threatening the region’s peace and security and supports initiatives such as youth leadership programs and cybersecurity enhancements.

Countering Drug Trafficking

1. Enhancing U.S.-Mexico Counternarcotics Cooperation – Strategy for countering transnational criminal organizations in Mexico (§ 8365): This provision outlines a comprehensive strategy to enhance U.S. security assistance to Mexico, focusing on countering drug trafficking networks and organized crime. It emphasizes cooperation in intelligence sharing, law enforcement training, and capacity building to strengthen Mexico’s ability to combat drug cartels and reduce illicit flows into the U.S.
2. Targeting Chinese Fentanyl Precursors – BUST Fentanyl Act (Subtitle B of Title LXXXIII / Secs. 8311-8320): The BUST Fentanyl Act targets the critical source of fentanyl and its precursors, emphasizing China’s role in supplying Mexican cartels that funnel deadly opioids into the United States. It seeks to leverage U.S. economic power to disrupt these illicit supply chains and hold accountable Chinese entities complicit in trafficking activities.

Supporting Israel

1. Monitoring Iranian Military Power – Extension and modification of annual report on military power of Iran (§ 1222): This provision renews and updates the requirement for the Department of Defense to produce an annual report on Iran’s military capabilities, strategy, and regional influence operations. The modification expands the reporting scope to include Iran’s cooperation with Russia, China, and North Korea in developing UAVs, missiles, naval power, and influence and cyber capabilities.
2. Extending Anti-Tunnel Cooperation – Extension and modification of U.S.-Israel anti-tunnel cooperation (§ 1231): This provision extends and strengthens U.S.-Israel anti-tunnel cooperation. It increases the authorized amount from $50 million to $80 million annually, which is critical given Iran’s attempts to resuscitate support for hostile non-state actors.
3. Extending Counter-UAS Cooperation – Extension and modification of U.S.-Israel cooperation to counter unmanned systems in all warfighting domains (§ 1232): This provision promotes joint U.S.-Israel efforts to develop counter-UAS capabilities, ensuring that Israel can defend against emerging drone threats, while the U.S. benefits from technological innovation through strategic partnerships. It also raises the authorization from $55 million to $70 million and expands it to cover multiple domains.
4. Improving Military Cooperation – Report on U.S.-Israel military exercises (§ 1235): The report aims to ensure transparency and evaluate the effectiveness of joint exercises, which are critical for interoperability and readiness.

Bolstering Cyber Defense & Offense

1. Assessing DOD Supply Chain Risks – Assessment of critical infrastructure owned by the Department of Defense dependent on foreign materials or components (§ 838) – This provision requires an assessment by DOD identifying infrastructure reliant on foreign materials, components, or technologies that could pose supply chain or security risks. The outcomes guide mitigation efforts and policy to fortify critical infrastructure dependence.
2. Enhancing Warfighting with Emerging Tech – Research, development, test, and evaluation of emerging technologies to further the warfighting capabilities of the U.S. and certain partner countries (§ 1234) – This provision authorizes funding for emerging cyber-related technologies that enhance warfighting capabilities of the U.S. and selected partner nations, ensuring technological superiority against evolving threats.