Can Congress pass a FY26 defense budget this year? Here are 12 key issues for lawmakers.

WASHINGTON — Congressional protection hawks within the Senate are as soon as once more pushing to spice up the topline of the defense budget in fiscal 2026, however as lawmakers return to Capitol Hill in September, they must face an much more urgent query: Will they be capable to go a full-year spending invoice in any respect?

Congress failed at passing FY25 appropriations after talks between Republicans and Democrats broke down, ensuing within the approval of a full 12 months persevering with decision in March. The invoice marked the primary time the Protection Division may have been funded beneath a CR for a whole 12 months.

This 12 months, the finances course of has been much more tumultuous — even with Republican management of each the Home and the Senate — elevating questions on whether or not the Pentagon is heading towards one other full-year funding extension.

For a lot of the 12 months, lawmakers have been wrapped up in passing reconciliation laws generally known as the One Massive Lovely Invoice, a Trump-backed megabill that contained an additional $150 billion in defense funding in addition to different precedence gadgets. 

In the meantime, the Pentagon has dragged its ft in presenting its personal finances request for FY26, placing out some finances paperwork in late June whereas different extra detailed justification paperwork are nonetheless but to be launched or offered to Congress. (Home appropriators drafted their model of the FY26 protection invoice without having seen the Pentagon’s finances proposal.)

With the clock ticking till authorities funding runs out when the brand new fiscal 12 months begins on Oct. 1, Congress’s first order of enterprise upon its return from recess subsequent week shall be teeing up and passing a short-term persevering with decision that may give lawmakers time to work out a spending settlement.

After that, the Home and Senate will begin the harder work of hammering out appropriations payments, with the Home selling a bill that adheres to the Protection Division’s flat $848 billion finances request and the Senate advocating for a topline funding bump of upwards of $22 billion.

In the meantime, neither chamber has taken its model of the Nationwide Protection Authorization Act to the ground but, however the Senate is slated to begin debate on its NDAA as quickly as lawmakers return in September. 

Some specialists say variations within the varied protection payments may not finally matter.

“Probably the most possible end result, in our view, for FY26 discretionary spending is a full-year persevering with decision just like what occurred in FY25,” Byron Callan of Capital Alpha Companions mentioned in an Aug. 1 word after the Senate Appropriations Committee handed its variations of the protection invoice out of committee. “That may hold DoD discretionary on the identical degree as FY25 for FY26, however we might anticipate extra anomalies to permit fee will increase and new begins.”

As Capitol Hill will get all the way down to enterprise, right here’s a take a look at how the Pentagon and every congressional protection committee is approaching 12 main points this finances season:

Protection Finances Topline

Topline finances numbers among the many appropriations and authorizing committees aren’t apples to apples, with no single invoice containing the entire of nationwide protection spending.

The NDAA — which sanctions funds however doesn’t truly obligate them  — contains the Protection Division in addition to protection spending throughout the Division of Power, however doesn’t embody about $11.5 billion in nationwide safety spending outdoors the jurisdiction of the Home and Senate armed providers committees.

In the meantime, Home and Senate protection appropriations payments cowl many of the Protection Division and a few intelligence-related spending, however not protection spending on the Division of Power or navy building spending.

President’s finances: The Protection Division requested $848.3 billion in discretionary funds for fiscal 2026, flat with the enacted full-year persevering with decision for FY25.

Reconciliation: The reconciliation invoice added $150 billion in obligatory funds out there in the course of the Trump administration. The Pentagon intends to make use of $113.3 billion of that funding in FY26.

HASC NDAA: Authorizes $882.6 billion in protection spending, together with $848.3 billion for the Protection Division.

SASC NDAA: Boosts protection spending by $32 billion to $913.9 billion in protection spending, with $ 878.7 billion for the Protection Division.

Home protection appropriations: Adheres to OMB-approved quantity by appropriating $831.5 billion.

Senate protection appropriations: Consists of $851.9 billion, growing protection funding by about $22 billion.

F-35 Joint Strike Fighter

President’s finances: Purchases 47 F-35s: 24 F-35As, 11 F-35Bs and 12 F-35Cs.

Reconciliation invoice: Didn’t add cash for extra F-35s.

HASC NDAA: Authorizes the 47 F-35s requested by the division.

SASC NDAA: Authorizes 57 F-35s, including 10 F-35As.

Home protection appropriations: Provides funds for a complete of 69 F-35s, together with 42 F-35As, 13 F-35Bs and 14 F-35Cs.

Senate protection appropriations: Funds the 47 F-35s requested within the finances.

Golden Dome

President’s finances: Outdoors of the reconciliation spending, the division’s finances request contains no funding particularly earmarked for Golden Dome.

Reconciliation: Consists of $25 billion in Golden Dome spending, all of which the division intends to make use of in FY26.

HASC NDAA: Modifies nationwide missile protection coverage to incorporate the deployment of a next-generation missile defend for the US homeland reminiscent of Golden Dome, and requires yearly studies on Golden Dome.

SASC NDAA: Modifies nationwide missile protection coverage to replicate Golden Dome and codifies the place of Direct Reporting Program Supervisor (DRPM) for Golden Dome.

Home protection appropriations: The invoice incorporates $13 billion in house and missile protection funds that appropriators mentioned may fall beneath the Golden Dome umbrella, damaged down into $8.8 billion for Missile Protection Company packages and $4.1 billion for House Power packages.

Senate protection appropriations: The invoice report states that the Pentagon “has not but offered the Committee with sufficiently detailed proposals to precisely assess” Golden Dome, and requires a briefing on its value, structure and acquisition technique.

F-15EX

President’s finances: No plane funded via discretionary finances.

Reconciliation: Included $3.1 billion to extend F-15EX manufacturing. The Pentagon intends to make use of that cash to purchase 21 F-15EXs in FY26.

HASC NDAA: Conforms to DoD suggestions.

SASC NDAA: Conforms to DoD suggestions.

Home protection appropriations: Provides $345 million for the procurement of three F–15EX plane.

Senate protection appropriations: Conforms to DoD suggestions.

E-7 Wedgetail

President’s finances: Cancelled the program because of survivability and value issues, however included $199 million to wrap up present actions.

Reconciliation: Didn’t deal with the E-7.

HASC NDAA: Provides $600 million to proceed the fast prototyping program for a complete of $799 million.

SASC NDAA: Provides $700 million to proceed improvement and procurement, for a complete of $899 million.

Home protection appropriations: Features a complete of $500 million to proceed the E-7 program.

Senate protection appropriations: Provides $647 million for a complete of $846 million.

A-10 Retirement

President’s Finances: Retires the remaining A-10 Warthogs in FY26.

Reconciliation: Didn’t deal with the A-10.

HASC NDAA: Throughout the markup course of, HASC handed an modification prohibiting retirements of any A-10s in FY26.

SASC NDAA: Mandates that the Air Power retain 103 A-10s in its stock.

Home protection appropriations: Didn’t deal with the A-10 retirement.

Senate protection appropriations: Didn’t deal with the A-10 retirement.