House/Senate Negotiators Release FY2025 NDAA Compromise

Over the weekend, House and Senate Armed Services Committee leaders released the final version of the fiscal year (FY) 2025 National Defense Authorization Act (NDAA).  The compromise legislation authorizes $883.7 billion in defense spending, aligning with President Biden’s request and adhering to fiscal caps set by the 2023 debt limit law. This measure includes substantial pay raises for military personnel, alongside quality-of-life improvements to childcare, housing, and medical services programs.

The NDAA also strategically advances military capabilities, mandating an operational anti-missile interceptor installation on the East Coast by 2031 and sustaining funding for critical programs like the F-35, albeit with provisions to ensure performance improvements. While divisive amendments addressing cultural issues were excluded, bipartisan compromise allowed the focus to remain on modernization and readiness. The bill notably addresses procurement, research, and future investments in areas such as military construction ($17.55 billion), Department of Energy security programs ($33.3 billion), and defense-related activities ($512.4 million).

The House should vote on the legislation this week, and the Senate will follow soon after. You can review the legislation at this link. 

Do not hesitate to contact the LSN Federal Team if you have any questions about this legislation or are interested in getting involved with next year’s NDAA process, which will begin in the first quarter of 2025.

Warm Regards,

The LSN Federal Team

Overview of Funding Levels and Allocations

The FY2025 NDAA authorizes $883.7 billion in total defense spending, matching the President’s budget request. This includes:

• Department of Defense (DoD): $849.9 billion
• Department of Energy National Security Program: $33.3 billion
• Other Defense-Related Activities: $512.4 million

Overall Funding Trends:

• Stability in topline funding aligns with FY24 trends, adhering to fiscal caps established in the debt limit agreement.
• Expanded allocations focus on modernization and operational readiness.

Modernization and Procurement

• Sustained funding supports equipment upgrades, shipbuilding programs, and aircraft replacements.
• A notable reduction in procurement delays or restrictions for flagship programs like the F-35 is contingent on progress in addressing deficiencies.

Procurement Focus

• F-35 Program: Limited procurement of 48 aircraft until corrective actions are implemented to address identified issues, with annual updates mandated for five years.
• Army Modernization: Emphasis on upgrading ammunition production and addressing industrial base constraints to maintain operational readiness.
• Shipbuilding Programs: Economic order quantity contracts and design flexibility for amphibious and landing ship programs to ensure cost efficiency.

Research, Development, Test, and Evaluation (RDT&E)

• Comprehensive allocations support advanced capabilities, including quantum computing and artificial intelligence (AI) integration.
• Expanded Defense Laboratory authorities enable direct financial assistance to educational programs and partnerships.

Emerging Technology Initiatives

• Pilot programs and secure infrastructure developments for AI and biotechnology align with national security priorities.
• Testing electromagnetic spectrum demonstration technologies for optimized spectrum usage reflects ongoing innovation needs.