Facing an ongoing war in Ukraine and increasingly aggressive behavior by China, members of Congress are substantially boosting funding for the military. The annual defense authorization package the House passed this week exceeds the Biden administration’s budget request by $45 billion.
The $858 billion National Defense Authorization Act (NDAA) is an 8 percent boost in funding levels over fiscal year 2022. While the bill authorizes the money and how to spend it, lawmakers have to follow it up with separate spending legislation.
The House approved a compromise version with an overwhelming vote of 350-80, teeing it up for Senate consideration.
Below are a few highlights of the legislation. (If you want some light weekend reading, the 4,400-page bill text is available here.)
Multi-Year Weapons Procurement
One of the biggest priorities for lawmakers was addressing the United States’ low stockpiles of essential equipment. The coronavirus pandemic gutted weapons supply chains, and America’s security assistance to Ukraine for its defense against Russia this year has dwindled stockpiles even more.
To give weapons manufacturers the certainty they need to ramp up production, the House version of the NDAA provides for multi-year contract authority, a move defense experts say is likely to address those shortfalls, at least to some extent. Congress typically authorizes procurement authority for each fiscal year, but the change will allow longer-term contracts. That will make it easier for defense contractors to justify capital investments in expanding the defense industrial base.
The bill includes a list of weapons that can be acquired with multi-year contracting, including Stingers, Javelins, and more. (Read the full list here.)
Chinese Semiconductor Chips
The bill also bans the government from buying and using products made with semiconductor chips—used in a vast array of technologies—from three Chinese companies linked to the Chinese government and military apparatus.
The ban will phase in over five years, giving weapons and equipment contractors time to comply.
Senate Majority Leader Chuck Schumer and Texas Republican Sen. John Cornyn introduced the amendment to the package, arguing it will reduce America’s dependence on foreign semiconductor producers, boost domestic chip manufacturing, and protect American cyber security.
“It’s simple: the federal government should not be in the business of supporting Chinese-made chips that put our national and economic security at risk,” Schumer said in a release this week.
Some defense policy experts lamented the five-year phase-in—negotiated after pushback from manufacturers—saying the ban should take place sooner. Still, they praised the inclusion of the amendment.
“While the final compromise language eased requirements on industry, Congress is increasingly making clear that the choice going forward is between being a trusted government partner or clinging to Chinese technology dependency,” said Maseh Zarif, director of congressional relations at the national security advocacy group FDD Action. “These are mutually exclusive. No amount of business lobbying is going to end congressional scrutiny and action on this front.”
Taiwan Security Assistance and Preparation
Taiwan would be authorized to receive up to $2 billion in foreign military financing per year through 2027 under the defense bill. Lawmakers still have to fund that money in spending legislation, but it is expected to put a dent in some of the self-governing island’s needs as it faces the threat of invasion by China.
Congress is also seeking to cut down on a nearly $19 billion backlog in weapons sales to Taiwan, mostly caused by the pandemic-related supply chain woes and the war in Ukraine. The bill aims to fast-track some weapons sales to Taiwan by requiring the State Department and Defense Department to compile a list of weapons and equipment that are “pre-cleared and prioritized for sale” to Taiwan. The bill also calls on the government to prioritize and expedite processing for requests from Taiwan for weapons sales.
It further requires the defense secretary to conduct a tabletop exercise within a year to assess America’s ability to respond in the event of an attack on Taiwan. The Defense Department will have to compile the findings of the exercise and offer recommendations to Congress to improve America’s preparation for an attack on Taiwan.
The government will also have to report to Congress within 120 days on Taiwan’s defense needs, and several agencies will be required to submit comprehensive annual reports through 2027 on security and intelligence matters related to Taiwan.
Some Human Rights Provisions Didn’t Make the Cut
An earlier House version of the defense bill included language sponsored by Rep. Jim McGovern blocking arms sales to governments responsible for genocide or violations of international humanitarian law. That was stripped out of the text after negotiations with the Senate. The amendment would have likely affected Saudi Arabia, a top buyer of American weapons. McGovern has consistently urged a tougher stance with the Saudi government.
Another amendment in the earlier House version was even more direct: Sponsored by Rep. Gerry Connolly of Virginia, the language would have curbed offensive arms sales to Saudi Arabia until its government rolls back repressive behavior like targeting dissidents. That provision also didn’t make the cut in the negotiated version.
The Senate could take up the broader defense authorization package as soon as next week.
