Congress recently released the compromise language for the fiscal 2025 National Defense Authorization Act (NDAA), which adheres to the established budget cap and sees minimal changes from the Pentagon’s earlier requests. According to Byron Callan of Capital Alpha Partners, the compromise bolsters overall procurement and research and engineering (R&E) funding by approximately $2 billion over the Pentagon’s initial FY25 proposal. The breakdown shows Army procurement remaining stable, Navy procurement decreasing by about $500 million, and Air Force procurement increasing by approximately $800 million.
The House is set to vote on the bill on Wednesday. It’s important to note that while the NDAA primarily serves as a policy bill, it lacks the definitive funding allocations for military operations, which will be addressed in future appropriations legislation. The Breaking Defense team highlights several key elements from the NDAA:
Air Force
The NDAA proposes measures to slow or block several retirements requested by the Air Force. It would approve many divestments but reject the retirement of F-15E and F-22 aircraft and impose restrictions on RQ-4 and C-130 offloading. Continuing A-10 retirements alongside older F-15 and F-16 models, the bill mandates the retention of 16 E-3s until they can be replaced by the upcoming E-7 or alternative capabilities.
Additionally, the NDAA would authorize six F-15EXs, three C-130s (including a ski-equipped LC-130J), two C-40Bs, and allocate an extra $400 million for E-7 program acceleration, aiming to support long-lead procurement efforts. Moreover, it restricts the Pentagon from acquiring more than 30 F-35As, nine F-35Bs, and nine F-35Cs until the Secretary of Defense implements a plan to address deficiencies noted in recent testing. The language also mandates that subcontractors invest funds to enhance the F-35 program and cuts $345 million from Air Force procurement to address “excess cost growth.”
Lastly, it reduces funding for the Advanced Battle Management System by $102 million and the KC-46 program by $159 million, while requiring a plan from the Secretary of the Air Force to establish air base air defense sites to protect against potential attacks from adversaries, such as China.
Army
The NDAA introduces a range of reporting obligations for the Army. Among them is a directive for the Secretary of the Army to formulate a plan for procuring and deploying additional kinetic effectors for small unmanned aircraft defense systems. Additionally, it mandates a report on procuring energetic materials, vital for bombs and missiles, from foreign sources.
The requirements also include a Black Hawk modernization report and an assessment of vehicle protection systems on Army ground combat vehicles. Furthermore, the Army must provide an update on its long-term Stryker investment strategy.
Navy
Concerns have been raised in the bill’s explanatory statement regarding alleged “lack of transparency” from Navy leadership, as they are accused of negotiating significant plans with the industry to enhance the Virginia-class submarine program without adequately informing Congress or the Office of Management and Budget (OMB). Lawmakers express frustration, stating that they are left with an expensive new supplemental funding request and limited options to address the underlying issues.
