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.

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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