WASHINGTON — As Congress reconvenes in September, legislators confront a crowded agenda of defense‑related priorities, ranging from a short‑term funding measure to sustain government operations through the midterm elections, a supplemental package for the Iran conflict, and the fiscal year 2027 defense budget.
The Pentagon has laid out a $1.15 trillion discretionary request, with an additional $350 billion slated through the reconciliation process, together totaling a historic $1.5 trillion in defense funding. However, whether the Republican‑led Congress can rally the political support to enact the full $1.5 trillion remains uncertain, as both chambers navigate varying stages of the appropriations cycle.
The House has not yet passed its FY27 defense appropriations bill, having cleared the measure through committee in June. The Senate lags further behind, with Republican and Democratic leaders on the Senate Appropriations Committee deadlocked over how to balance defense and nondefense spending. Consequently, Senate appropriators have not yet released the text of their FY27 defense spending bill.
These funding delays are spilling over into the National Defense Authorization Act (NDAA). The House passed its NDAA version in July, but Senate Democrats have blocked the upper chamber from bringing its version to the floor, citing the Iran war and concerns about the defense topline as primary objections.
“If we can nail down a solid budget resolution—both domestic and defense—we’ll be in a much better position to move forward,” Senator Jack Reed, the Senate Armed Services Committee’s ranking Democrat, told Breaking Defense in July.
Reconciliation is another pivotal flashpoint. The House approved its “Reconciliation 3.0” package with $60 billion earmarked for defense, yet Senate Majority Leader John Thune has not yet secured enough votes to advance the measure in the Senate.
- The White House’s supplemental request includes $67 billion in defense funds intended to replenish U.S. stockpiles and cover operational costs. Neither chamber has yet charted a path to approve this funding.
- A continuing resolution (CR) would maintain FY26 funding levels after the current fiscal year ends on Oct. 1. Both the House and Senate have passed separate CR bills extending funding into early December and will need to reconcile a final version before the Sept. 30 deadline to avoid a government shutdown.
Congress faces a tight timeline: the House returns next week before a weeklong Labor Day recess, and the Senate will not reconvene until Sept. 14. With only a few weeks before the October midterm break, election outcomes could further shape budget negotiations, especially if Democrats gain control of one or both chambers.
As lawmakers get back to work, here’s an overview of 13 key defense issues that are shaping up in pending legislation:
Defense Budget Topline
Appropriations and authorization committees use different metrics, so no single bill captures the entire national defense outlay. The NDAA authorizes funding but does not allocate it, covering the Defense Department and some Department of Energy nuclear‑related spending, while excluding roughly $12 billion in security activities outside the armed services committees’ jurisdictions. House and Senate defense appropriations bills address most of the Defense Department’s accounts and certain intelligence-related spending, but omit Department of Energy defense activities and military construction.
President’s Budget: The Trump administration’s FY27 request totals $1.15 trillion in discretionary spending—the first defense request to exceed $1 trillion without relying on mandatory reconciliation funds.
DoD Reconciliation request: The administration is pushing for an additional $350 billion in mandatory spending via reconciliation. The House has approved a budget resolution that, if adopted by the Senate, would trigger a reconciliation process providing $60 billion for defense. Armed services panels will decide how that money is allocated once a budget resolution clears both chambers.
House NDAA: Authorizes $1.14 trillion in discretionary spending, fully funding the portion of the defense request within its jurisdiction. The House Armed Services Committee (HASC) did not include reconciliation‑requested items, which would be considered only if the House and Senate adopt a budget resolution.
Senate NDAA: Authorizes $1.14 trillion for discretionary spending, matching the president’s topline request. Like the House version, the Senate Armed Services Committee (SASC) did not address reconciliation‑requested funds.
House defense appropriations: Provides $1 trillion in discretionary spending, adhering to the president’s budget request. Military construction and other spending are handled in separate appropriations bills. The House appropriators have not taken up reconciliation.
Munitions
President’s Budget: Most of the munitions increase is confined to the reconciliation request, while discretionary allocations actually shrink for certain key weapons. For example, the FY27 discretionary budget would fund 267 PAC‑3 missiles, down from 310 in FY26. The reconciliation request would add nearly 3,000 more PAC‑3 interceptors.
Reconciliation: earmarks $47 billion for munitions, targeting 12 critical legacy systems and other priority weapons efforts.
House NDAA: Grants multiyear procurement authority for 13 critical munitions and mandates a report on maximizing munitions capacity, along with quarterly inventory updates. Authorizes spending roughly at the levels proposed in the president’s discretionary request.
Senate NDAA: Requires a briefing on the Pentagon’s munitions strategy, expressing concern that current proposals focus on expanding existing production lines without sufficiently broadening the industrial base or diversifying inventory with affordable, mass‑producible options. Authorizes multiyear procurement for 19 munitions and maintains funding near the discretionary request levels.
House defense appropriations: Allocates $11.4 billion for critical munitions procurement, roughly following the president’s discretionary request. The committee labels the department’s approach of funding munitions expansion through reconciliation “risky and uncoordinated.” It includes multiyear contracts for 14 munitions spanning three to seven years.
RELATED: The Pentagon wants a 188 percent bump for missile procurement. Can industry deliver?
Golden Dome
President’s Budget: Requests $397 million for the Golden Dome initiative in the base budget, with the majority of its funding intended for reconciliation.
Reconciliation: Provides $17.1 billion for Golden Dome, described as a means to “create irreversible momentum for the GDA program, solidify the program’s foundation, and lock in progress on these complex, long‑lead time efforts.”
House NDAA, Senate NDAA, House defense appropriations: All three measures fully fund the $397 million discretionary request.
F‑35 Joint Strike Fighter
President’s Budget: Provides funding for 32 F‑35 aircraft: 24 F‑35As for the Air Force, six F‑35Bs for the Marine Corps, and two F‑35Cs for the Navy.
Reconciliation: Seeks $6.7 billion in additional aircraft procurement funding to acquire a total of 53 planes: 14 F‑35As, 10 F‑35Bs, 11 F‑35Cs (Marine Corps), and 18 F‑35Cs (Navy).
House NDAA: Aligns with the president’s budget request for F‑35 procurement and does not incorporate reconciliation funding.
Senate NDAA: Adds $232 million for F‑35A procurement while keeping the total number of F‑35As at 24.
House defense appropriations: Fully funds the discretionary request.
E‑7 Wedgetail
President’s Budget: The Air Force originally planned to cancel the E‑7 Wedgetail, but Defense Secretary Pete Hegseth signaled in May that the Pentagon intended to revive the program via a budget amendment.
DoD Reconciliation request: Contains no provision for this program.
House NDAA: Follows the budget request levels, with a committee aide indicating the panel wanted to see a White House budget amendment before committing additional funds.
Senate NDAA: Includes a provision blocking the DoD from canceling the E‑7 program and restores funding, adding $1.5 billion.
House defense appropriations: Adds $1.5 billion to fully fund the program as requested by the department.
Arleigh Burke‑Class Destroyers
President’s Budget: Funds a single Arleigh Burke‑class destroyer, down from the typical two to three ships procured annually.
DoD Reconciliation request: Requests $314 million for the destroyer program, per a DoD budget document.
House NDAA: Provides $1 billion in incremental funding for an additional DDG‑51, partially financing a second ship.
Senate NDAA: Adds $2.5 billion for a second destroyer.
House defense appropriations: Sticks with the president’s budget request.
UH‑60 Black Hawk
President’s Budget: Includes $32 million for one UH‑60M helicopter.
DoD Reconciliation request: No funding allocated for this program.
House NDAA: Adds $250 million to procure six additional UH‑60Ms.
Senate NDAA: Aligns with the president’s request.
House defense appropriations: Adds $493 million to acquire additional aircraft, with exact quantities unspecified.
CH‑47 Chinook
President’s Budget: Allocates $319 million for five Chinook helicopters.
DoD Reconciliation request: No funding provided for this program.
House NDAA: Adds $381 million to procure seven additional CH‑47s beyond the Pentagon’s five‑helicopter request.
Senate NDAA: Adheres to the president’s request.
House defense appropriations: Adds $456 million to procure an unspecified number of additional aircraft.
Foreign Shipbuilding
President’s Budget: Does not address this issue.
DoD Reconciliation request: Includes $1.85 billion in Navy research and development funds earmarked for “two separate study and procurement efforts” to evaluate allied shipbuilders’ capability to construct future cruisers, destroyers, and frigates. OMB officials indicated the funds could be used to acquire a warship from Japan or South Korea.
House NDAA: Contains a provision prohibiting the Pentagon from building a battle‑force ship at a foreign shipyard.
Senate NDAA: Would eliminate the presidential waiver on the ban on foreign‑built vessels, removing the president’s ability to construct ships abroad for national‑security reasons. However, it would allow the White House to build two auxiliary vessels—a bulk fuel vessel class and a strategic sealift class—provided the shipbuilder makes direct capital investments in the U.S. maritime industrial base to support future U.S. construction.
House defense appropriations: Prohibits the use of funds in the bill for constructing ships at foreign shipyards.
RELATED: Trump opens door for foreign‑built Navy ships. It could get complicated.
Space Development Agency and Space Rapid Capabilities Office
President’s Budget: Although not explicitly detailed, the acting SDA director indicated in April that the SDA and Space RCO might be eliminated as the Space Force restructures its acquisition portfolios.
DoD Reconciliation request: No provisions address this issue.
House NDAA: Permits the elimination of both the SDA and Space RCO.
Senate NDAA: Repeals statutory requirements for the SDA and Space RCO, enabling the Defense Department to reorganize its space agencies and shut down both entities.
House defense appropriations: Does not directly address the offices but includes an additional $10 million for the Space RCO earmarked for “deep space network integration into Space Force.”
Right to Repair
Although not featured in the budget request, senior officials such as Army Secretary Dan Driscoll have repeatedly urged Congress to enact right‑to‑repair legislation, granting the military greater access to technical data for in‑house equipment repairs. Industry groups, including the Chamber of Commerce, have largely opposed such measures, urging Congress to reject the push.
DoD Reconciliation request: No provisions address this issue.
House NDAA: During committee markup, lawmakers approved an amendment by Representative Maggie Goodlander (D‑NH) that would grant the Pentagon default government‑purpose rights for any technical data or software covered by a contract.
Senate NDAA: Contains parallel language granting the Pentagon default government‑purpose rights for technical data and software.
House defense appropriations: Does not address the right‑to‑repair issue.
Share Buybacks and Dividends
The White House issued an executive order in January directing the Defense Department to ensure that future contracts limit share buybacks and dividend payments for underperforming contractors.
House NDAA: An amendment to restrict share buybacks, offered by Representative Chris DeLuzio (D‑PA), was introduced but later withdrawn during the committee markup.
Senate NDAA: Includes a provision requiring that future defense contracts contain clauses barring contractors from conducting share buybacks or paying dividends unless a waiver is granted.
House defense appropriations: Does not address share‑buyback restrictions.
War Department Renaming
The budget itself does not cover this topic, but the Pentagon submitted a separate legislative proposal to officially rename the department the “Department of War.”
DoD Reconciliation request: No provisions address this matter.
House NDAA: During markup, the House Armed Services Committee voted 29‑27 along party lines to approve an amendment by Representative Ronny Jackson (R‑TX) renaming the department.
Senate NDAA: Would enact the rename to “Department of War.”
House defense appropriations: Does not address the renaming proposal.
