Sponsor
Ken Calvert
Representative · R-CA
Representative · R-CA
Official title: Making appropriations for the Department of Defense for the fiscal year ending September 30, 2027, and for other purposes.
Introduced June 26, 2026 by Ken Calvert
The bill increases funding and authorities to strengthen readiness, shipbuilding, and domestic industrial capacity while expanding oversight and domestic‑content rules — a trade‑off that boosts U.S. capabilities and jobs but raises federal spending, procurement costs, and regulatory/notification constraints that can slow flexibility and complicate acquisitions.
Service members and the military-industrial base receive substantial near‑term funding and authorities (O&M, contingency, RDT&E, shipbuilding, sealift, and compute infrastructure) that bolster readiness, sustain shipyards, and accelerate fielding of critical capabilities.
U.S. manufacturers and domestic suppliers (including shipbuilding, steel, anchors, bearings, and specialty components) gain protected market access through Buy American and domestic‑content rules, supporting jobs and supply‑chain resilience.
Taxpayers and Congress gain increased transparency and fiscal oversight via new reporting, publication of grants, and limits on late‑year obligations, which reduce year‑end spending rushes and make defense spending more visible to appropriators.
Taxpayers face larger defense and foreign assistance outlays that increase federal spending and could add to deficit pressure given the sizable authorizations and appropriations in the bill.
Service members and operators could see reduced agility because numerous pre‑obligation notifications, 15–30 day holds, prohibitions on transfers or budget moves, and other timing constraints may slow urgent responses and interagency adjustments.
Domestic sourcing/domestic‑content mandates and procurement restrictions (including bans on firms with unpaid federal tax liabilities) may raise costs, cause procurement delays, and narrow vendor pools if U.S. suppliers cannot meet demand promptly.
Based on analysis of 11 sections of legislative text.
Sets DoD fiscal‑year appropriation limits and transfer authority; funds strategic sealift and the Reserve Fleet; imposes pay, contractor conversion, domestic sourcing, surveillance, and reporting rules.
Sets fiscal-year limits, transfer authorities, and several operational and procurement restrictions for the Department of Defense and related maritime programs while funding strategic sealift and the National Defense Reserve Fleet. It also imposes pay and employment limitations for certain DoD foreign national employees, rules for converting civilian functions to contractor performance, domestic sourcing requirements for specified Navy ship components, reporting requirements for DoD financial and contracting activity, and restrictions on use of funds for certain intelligence activities. Implements transfers among defense appropriations up to $3.0 billion with OMB approval for unforeseen military needs, provides specific multiyear and until‑expended funding for sealift and the Ready Reserve Force, requires advance congressional notifications for certain transfers and procurements, and reduces the bill’s total by $1 billion to reflect projected savings from business process modernization and AI.