$900B defense bill targets China with new investment restrictions

congress issued $900 billion Defense bill Which is reshaping America’s economic and military competition with China by imposing new investment restrictions, banning a range of Chinese-made technologies from the Pentagon’s supply chains, and expanding diplomatic and intelligence efforts to track Beijing’s global footprint.

The legislation, which allows the War Department to spend $8 billion above the White House request, includes a 4% pay raise for enlisted service members, expands counter-drone authorities, and directs new investments in the Golden Dome missile defense shield and nuclear modernization programs.

It also expands Pentagon support for law enforcement operations on the southwest border and strengthens the U.S. posture in the Indo-Pacific region, including funding for Taiwan’s security cooperation program.

In a victory for conservative privacy hawks like House Judiciary Committee Chairman Jim Jordan, R-Ohio, the legislation includes a non-defense provision that would force the FBI to disclose when the bureau was investigating presidential candidates and other candidates for federal office.

The measure was the subject of intra-party infighting last week when Rep. Elise Stefanik, R-N.Y., appointed head of House GOP leadership by Speaker Mike Johnson, publicly accused the speaker of kowtowing to Democrats and allowing the provision to be removed.

The War Department refocuses on artificial intelligence, hypersonics, and directed energy in major strategic reform

Johnson said he was shocked by Stefanik’s anger and was unaware of her concerns when she made them public.

Stefanik later declared victory over X, saying the clause had been reinstated after a conversation between her, Johnson and President Donald Trump.

In vitro fertilization (IVF) coverage for military families, which has become a flashpoint in recent days, is They are not included in the final NDAA. The provisions do not prevent countries from regulating artificial intelligence or banning US central bank digital currencies (CBDC).

Republicans have pushed to ban central bank digital currencies as a privacy and civil liberties measure, arguing that a government-issued digital dollar could give federal agencies the ability to monitor or restrict individual transactions.

House aides said the anti-CBD language has become tied to a separate housing policy package known as the “Pathway to Housing,” and that the concessions required to keep both provisions together are unacceptable.

The bill also creates a new “Steering Committee for the Future of AI” tasked with producing long-range forecasts and policy recommendations for advanced AI systems, including artificial general intelligence.

The legislation targets long-standing bottlenecks in the defense industrial base through licensing New investment toolsExpanding multi-year procurement of high-demand munitions and platforms, and reforming parts of the acquisition system to accelerate the deployment of commercial and emerging technologies.

Along with these reforms, lawmakers approved new “right-to-repair” style requirements that force contractors to provide the technical data the Pentagon needs to maintain and sustain key weapons systems — a change intended to reduce vendor lock-in and alleviate chronic maintenance delays across the fleet.

A key section of the bill creates a far-reaching foreign investment screening system, which would require American companies and investors to alert the Treasury Department when they back certain high-risk technologies in China or other “countries of concern.” The measure gives the Treasury Department the ability to directly block deals, mandates detailed annual reports to Congress, and gives new powers to sanction foreign companies linked to China’s military or surveillance networks. Lawmakers called the effort a long-overdue move to prevent American capital from fueling Beijing’s development of dual-use technologies.

The United States may lose the next major war because of the Pentagon’s “broken” acquisition system

The bill also includes a procurement ban targeting biotechnology providers, which would prevent the Pentagon from contracting with Chinese genetic sequencing and biotechnology companies linked to the People’s Liberation Army or Chinese security services.

Additional sourcing restrictions prevent the War Department from purchasing goods such as advanced batteries, photovoltaic components, computer monitors, and critical metals that originate from foreign entities of concern, further tightening U.S. supply chains away from China. It also requires the administration to phase out the use of Chinese-made computers, printers and other technical equipment.

Beyond the economic measures, the NDAA directs the State Department to deploy a new cadre of Chinese regional officials to U.S. diplomatic posts around the world, responsible for monitoring Chinese commercial, technology, and infrastructure activities across every major geographic region, including Beijing’s Belt and Road Initiative.

The National Defense Authorization Authorization authorizes the Pentagon’s budget at $8 billion above the White House request. (Julia Demarie Nickinson/AP)

The National Defense Authorization Act contains several Provisions relating to Israelincluding a directive for the Pentagon to avoid participating in international defense exhibitions that prevent Israeli participation. It authorizes funding for Iron Dome, David’s Sling, and Arrow — missile defense programs that the United States runs with Israel.Sh.

The bill also requires semi-annual reports comparing China’s global diplomatic presence with the United States’ global diplomatic presence. The Pentagon is separately directed to strengthen the US posture in the Indo-Pacific region by expanding the Pacific Deterrence Initiative and expanding cooperative training and industrial bases initiatives with regional allies, including Taiwan and the Philippines.

The legislation restores authorization to Ukraine Security Assistance Initiative At $400 million annually for fiscal years 2026 and 2027. Congress will also require more frequent reporting on allied contributions in Ukraine to track how European partners are supporting Kiev.

The bill revokes two long-dormant authorizations for war linked to earlier phases of US military intervention in Iraq, while leaving core post-9/11 counterterrorism authority intact. Lawmakers said the final text includes repealing the authorizations for use of military force for the 1991 Gulf War and the 2002 Iraq War, both of which successive administrations have said were no longer operationally necessary. The 1991 authorization approved US-led efforts to expel Iraqi forces from Kuwait, and the 2002 authorization authorized the invasion of Iraq under President George W. Bush.

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The two parties have discussed terminating these licenses for years, arguing that they no longer reflect current US missions in the Middle East. Presidents of both parties, including Trump, have maintained that modern military operations in the region do not depend on either law and that the commander in chief already possesses sufficient Article II authority to defend American personnel when needed. The repeal also answers long-standing concerns in Congress about the use of outdated war powers as secondary legal justifications for actions far removed from their original intent, such as the 2020 strike on Iranian Gen. Qasem Soleimani.

The National Defense Authorization Act does not affect the 2001 Authorization for Use of Military Force, which remains the central legal basis for US counterterrorism operations against Al Qaeda, ISIS, and associated groups. This post-9/11 law still forms the basis for nearly all active U.S. counterterrorism missions around the world.

House aides said leaders in their chamber hope to consider the bill as soon as this week. It would first need to pass through the House Rules Committee, the final gatekeepers, before the legislation gets a House-wide vote. You could hit that plate as early as Tuesday afternoon.

It will then go to a vote in the Senate before it reaches Trump’s desk for his signature.