H.R. 7323: Defense Technology Hubs Act of 2026

The bill, titled the Defense Technology Hubs Act of 2026, aims to improve national security and technological advancement by establishing a network of regional defense technology hubs across the United States. Here is a breakdown of its key components:

Purpose

The primary goal of this Act is to foster innovation, collaboration, and the rapid development of defense-related technologies. It intends to create an environment that attracts skilled professionals and promotes the advancement of technologies crucial for national defense.

Definitions

• Anchor Federal defense institution: This includes defense manufacturing facilities, educational institutions engaged in research and development with the Department of Defense (DoD), or military installations.
• Defense technology hub: A designated regional center supported under the Program.
• Eligible consortium: A group comprising universities, defense contractors, small businesses, nonprofit organizations, and local or state governments that can apply to become a defense technology hub.
• Emerging technologies: New scientific advancements with potential military applications as recognized by the DoD.

Establishment of the Program

The Secretary of Defense will set up the Defense Technology Hubs Program to designate and support regional hubs. Applications for these hubs will be solicited from eligible consortia, which must meet certain criteria demonstrating their capability and relevance to defense technology.

Designation Criteria

To qualify as a defense technology hub, consortia must show:

• Expertise in defense-relevant technology areas.
• Collaborative efforts with various stakeholders.
• Proximity to key DoD facilities and installations to facilitate ongoing collaboration.
• A successful record in creating partnerships for research, development, and workforce training.

The Secretary of Defense will ensure these hubs are distributed geographically to maximize regional contributions to national defense.

Objectives of Defense Technology Hubs

The objectives of each hub will include:

• Accelerating the development of emerging technologies for military use.
• Encouraging partnerships among the DoD, private industry, and academic institutions.
• Addressing local defense technology needs and leveraging available local resources.
• Promoting workforce development programs to ensure a skilled workforce is available.
• Enhancing the resilience and security of the defense industrial base.

Grants

The Secretary may distribute grants to support the operations of these technology hubs, which can be used for initial funding, ongoing projects, and administrative expenses. Each hub is expected to maintain high standards for security and compliance with regulations.

Security and Compliance

Each hub must implement cybersecurity measures consistent with DoD standards and ensure compliance with arms regulations. They must also prevent foreign entities of concern from participating in their programs to safeguard sensitive research.

Intellectual Property Management

The Secretary will establish guidelines to balance national security interests with commercial incentives for private sector participation, allowing hubs to pursue commercial opportunities while retaining necessary rights for defense applications.

Funding

The bill authorizes $375 million in appropriations for the program from 2026 to 2030, with specific allocations for grants to hubs. The federal share of support for any hub cannot exceed 50% of the total operational cost in a given year.

Administration

The program will be administered by the Secretary of Defense through designated officials, and there are provisions for waiving acquisition regulations for smaller projects to enhance efficiency in development and prototyping.

Evaluation and Reporting

The effectiveness of the program will be evaluated by an independent entity for the first five years, with annual reports submitted to Congress detailing program performance and activities.

Coordination with Existing Programs

The Secretary will ensure that this initiative complements other existing programs and does not create redundancies, aligning activities with established defense and intelligence infrastructure.

Effective Date

The provisions of this Act will take effect 180 days after its enactment.

Relevant Companies

• BA (Boeing Co.) - As a major defense contractor, Boeing could be involved in partnerships or technology development under the hubs.
• RTX (Raytheon Technologies Corp.) - This company may engage with the program to advance defense technologies relevant to their operations.
• LM (Lockheed Martin Corp.) - Likely to collaborate on research and development projects associated with the defense technology hubs.
• NOC (Northrop Grumman Corp.) - Could participate in developing technologies within the regional hubs that support U.S. defense initiatives.