Negotiations over the National Defense Authorization Act (NDAA) have reached an impasse in Congress, potentially ending a 65-year streak of the defense policy bill being signed into law. Democrats are currently demanding significant reductions to a $1.15 trillion funding request and the inclusion of legislative "guardrails" concerning the ongoing war against Iran. The legislation faces additional complications from a separate $350 billion reconciliation request and a proposal to formally rename the Department of Defense to the "Department of War."
The bill's traditional bipartisan support faltered earlier this year. In June, the House Armed Services Committee passed its version 44-12, but only half of the panel's Democrats voted in favor. The full House subsequently passed the measure in July with a narrow 216-212 vote. In the Senate, a July procedural vote failed 50-46, falling short of the 60 votes required for advancement as Democrats cited concerns over spending levels and the lack of congressional authorization for the conflict in Iran.
Key points of contention include the cost of the Iran war, which has reached $47 billion, an increase of $3 billion since September. Democrats have also expressed reluctance to provide record funding for a Pentagon led by Defense Secretary Pete Hegseth, who faces a House impeachment vote scheduled for mid-November. Meanwhile, some Republican defense hawks, including Sen. Mitch McConnell (R-Ky.), have suggested that the administration's actions regarding Ukraine and Russia—specifically the waiving of sanctions on Russia and reports of restricted satellite services for Ukraine—could complicate the year-end legislative agenda.
A lapse in the NDAA would also stall specific policy changes currently embedded in the draft, such as "right-to-repair" provisions that would allow troops greater latitude to fix their own equipment. Furthermore, corporate entities would be impacted by a Senate provision that seeks to bar the Pentagon from contracting with companies that conduct stock buybacks or pay dividends. The delay or failure of this bill sets a precedent that could disrupt the historically predictable cycle of defense policy, potentially leading to increased reliance on temporary spending measures and creating uncertainty for long-term military modernization projects.
Lawmakers are currently engaged in informal negotiations, with staff-level work reportedly completed. The "Big Four"—the leaders of the House and Senate defense committees—are scheduled to take up the unresolved issues when Congress returns after the November 3 midterm elections. House Speaker Mike Johnson (R-La.) stated the goal is to complete the bill by Thanksgiving, though defense industry experts note that the legislation could still face a veto from President Trump if the final compromise includes language on Iran that the White House opposes. The outcome may also be influenced by the results of the midterms, as a change in chamber control could shift the leverage for concessions.