Congress Passes NDAA 2026, Increasing Defense Acquisition Thresholds
Congress has enacted the National Defense Authorization Act for fiscal year 2026, allocating $900.6 billion to the Department of Defense. The legislation significantly raises defense acquisition thresholds, including RDT&E costs for major systems and noncompetitive contract approvals, to streamline procurement processes and alleviate regulatory burdens on defense contractors.
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The National Defense Authorization Act for fiscal year 2026 was signed into law on December 18, 2025, authorizing $900.6 billion for the Department of Defense. NDAA 2026 significantly raises acquisition thresholds, including RDT&E costs for major systems from $115 million to $275 million and total expenditures from $540 million to $1.3 billion.
It also increases noncompetitive acquisition thresholds, including approvals for contracts exceeding $10 million raised to $500 million. These changes aim to streamline procurement and reduce regulatory burdens on defense contractors.
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