S. 2572: Department of Defense Appropriations Act, 2026

The bill primarily focuses on providing appropriations for the Department of Defense (DoD) for the fiscal year 2026, with a total budget designated for military personnel, operations, maintenance, procurement, and research initiatives. Here are the key components of the bill:

Appropriations Overview

The bill proposes significant funding for various branches of the military and related initiatives. This includes financial support intended for the basic and applied scientific research, development, test, and evaluation activities within the DoD.

Research and Development Funding

An allocation of $49,262,511,000 is designated specifically for scientific research and development, as well as operational expenses including maintenance of facilities and equipment. The funds are made available until September 30, 2027, ensuring long-term support for ongoing projects and initiatives.

Restrictions on Fund Usage

The bill outlines certain restrictions on how DoD funds can be used. These include:

• Prohibitions on specific types of expenditures to ensure funds are used appropriately.
• Requirements for public-private competition when considering contractor conversions.
• Limitations on appropriations related to the Central Intelligence Agency and other defense-related activities.
• A focus on emergency allocation processes and mandatory reporting to Congress regarding fund usage.

National Intelligence Fund Management

The bill includes provisions that allow the Director of National Intelligence to transfer up to $1.5 billion in funds to address higher priority intelligence needs. This transfer requires detailed reports on how the funds are utilized.

Navy Shipbuilding Restrictions

Additionally, there are specific stipulations regarding Navy shipbuilding funds, which are restricted to purchases made from domestic sources. There are also prohibitions on using funds to support certain foreign organizations and activities.

Summary of Funding Focus

Overall, the bill emphasizes a structured approach to funding defense-related activities, ensuring accountability and proper allocations across various segments of the Department of Defense. It aims to bolster military readiness through extensive research and development, while imposing strict guidelines on financial management.

Relevant Companies

• BA (Boeing): Potential impact from increased defense procurement and research contracts.
• RTX (Raytheon Technologies): May benefit from funding allocated for defense contractors and research initiatives.
• LDOS (Leidos Holdings): Likely to see increased opportunities due to funding for defense operations and intelligence services.
• NOC (Northrop Grumman): Could gain from military personnel and operational funding aimed at advanced defense technologies.