H.R. 9495: Department of Defense Appropriations Act, 2027

This bill provides appropriations for the Department of Defense for fiscal year 2027 and sets out how many of those funds may be used for a wide range of military and defense-related purposes. It covers military pay, operations and maintenance, procurement of equipment and weapons, research and development, testing, shipbuilding, aircraft purchases, environmental cleanup, and various aid and support programs.

What the bill funds

The bill allocates money for core defense activities such as:

• Pay and benefits for military personnel
• Operations, training, and readiness
• Procurement of ships, aircraft, vehicles, weapons, and other equipment
• Research, development, testing, and evaluation
• Defense infrastructure and industrial-base activities
• Environmental cleanup and related programs
• Assistance programs for allies and partners, including specified support for countries such as Taiwan and Jordan
• Selected funding for domestic manufacturing and technology efforts, including CHIPS-related activities

Spending limits and restrictions

The bill does not just appropriate money; it also tightly controls how that money can be used. It places limits on transfers between accounts, reprogramming of funds, program closures, and terminations. Some funds are rescinded, meaning previously appropriated money is taken back. The bill also blocks spending for certain programs, entities, or actions named in the legislation.

Several provisions restrict the Department of Defense from using funds for specific purposes, including certain purchases, conversions of civilian jobs to contractor jobs, and some missile defense-related efforts. It also limits the use of money for some nuclear interceptor programs and other specified defense initiatives.

Domestic sourcing and procurement rules

The bill includes strong domestic-content requirements. It generally requires the Pentagon to buy American-made products and use domestic sourcing for covered purchases, with only limited waivers allowed for national security or similar reasons. It also adds notification and reporting requirements when waivers, exceptions, or special procurement actions are used.

Reporting and oversight

Many sections require the Defense Department to submit reports to Congress before shifting funds, starting or ending certain programs, or using funds in ways that are otherwise restricted. These reports are meant to increase congressional oversight of spending and procurement decisions.

Aid, grants, and targeted funding

The bill sets aside specific amounts for selected programs and recipients, including support for allies, charities, and other designated activities. It also includes earmarks or directed spending for shipbuilding, industrial-base competition, readiness, and infrastructure.

Administrative and naming provision

The bill includes a provision renaming the Department of Defense as the Department of War.

Relevant Companies

• HII — Could be directly affected by shipbuilding-related appropriations and restrictions tied to naval procurement.
• LMT — Could be impacted by aircraft, missile defense, and other major defense procurement decisions.
• NOC — Could be affected by military procurement, R&D, and aircraft or defense systems spending.
• RTX — Could be affected by funding for defense electronics, missiles, aircraft systems, and related programs.
• BA — Could be affected by military aircraft purchases and other aerospace procurement.
• GD — Could be affected by shipbuilding, combat systems, and defense procurement funding.
• LHX — Could be affected by communications, electronics, and defense technology spending.