WASHINGTON - President Trump signed a budget reconciliation bill on July 4th that includes sweeping tax cuts, around $150 billion for defense priorities, and adjustments to domestic programs to offset some costs of the legislation. The House initially passed its version of the bill in May, and the Senate passed a modified version of the legislation on July 1 by a narrow vote of 51-50, with Vice President JD Vance serving as the tie-breaking vote. Rather than make additional changes to send back to the Senate, the House adopted the Senate version by a vote of 218-214 to meet an informal deadline of July 4.
The administration's FY26 request relies heavily on the reconciliation bill, which includes the following defense investments:
Sec. 20001: $9 billion for Servicemember Quality of Life. Funds increases in allowances and special pays, as well as improvements to housing, healthcare, childcare, and education assistance to military families.
- Sec. 20002: $29 billion for Shipbuilding and the Maritime Industrial Base. Expands the size and enhances the capability of our naval fleet. Invests in autonomous surface and subsurface technology. Builds capacity and improves infrastructure in the maritime industrial base.
- Sec. 20003: $25 billion for Golden Dome for America. Supports President Trump’s vision for layered missile defense shield for America. Develops space-based assets support the system and rapidly accelerates defense against hypersonic threats to the homeland and deployed troops.
- Sec. 20004: Expands production of missile defense interceptors and counter drone capabilities.
- Sec. 20005: $16 billion to Expedite Innovation to the Warfighter. Expands DoD initiatives to scale production of game-changing new technology and expedite delivery of low-cost, attritable weapons systems and artificial intelligence needed to ensure success on future battlefields.
- Sec. 20006: $400 million for Fiscal Responsibility and a Clean Audit. Invests in the IT infrastructure, business systems, and new AI/automation capabilities needed to ensure the DoD fully passes an audit.
- Sec. 20007: $9 billion for Air Superiority. Reverses declines in fighter force posture. Accelerates delivery of next generation aircraft and autonomous systems.
- Sec. 20008: $15 billion for Nuclear Deterrence. Accelerates modernization of the nuclear triad. Improves readiness of our current nuclear deterrent. Invests in infrastructure needed to restore America’s ability to manufacture nuclear weapons.
- Sec. 20009: $12 billion for Pacific Deterrence. Expands military exercises and improves readiness of Indo-Pacific forces. Acquires capability and builds infrastructure needed to defend forces and conduct military operations in the Western Pacific.
- Sec. 20010: $16 billion to Enhance Military Readiness. Improves readiness through modernization of depots and shipyards, expands stocks of critical spare parts, and enhances training and capabilities of active and reserve forces.
- Sec. 20011: $1 billion for Border Security. Funds DoD personnel and logistics support to help carry out President Trump’s border, immigration, and counterdrug enforcement agenda.
- Sec. 20012: $10M for DOD IG to conduct specific oversight on appropriations in this title.
- Sec. 20013: Authorization of military construction projects in this title.