House Passes 2027 NDAA and $60 Billion Reconciliation Package; Senate Path Uncertain

On July 22, the U.S. House of Representatives passed its version of the 2027 National Defense Authorization Act (NDAA) and a reconciliation package providing $60 billion for the Pentagon, both in largely party-line votes (NDAA 216-212; budget resolution 216-214). The NDAA includes provisions for multiyear F-35 and F-15EX procurement, elimination of two Space Force acquisition organizations, authorization for four MH-139 helicopters, a prohibition on retiring E-3 AWACS aircraft through 2027, and requirements for reports on arming tanker aircraft and Collaborative Combat Aircraft (CCA) programs. The reconciliation package, the third such effort this Congress, totals $95 billion, with $60 billion for military needs, partly to cover costs of the war with Iran and replenish munitions. However, both bills face an uncertain future in the Senate, where a procedural vote on the NDAA failed earlier in July due to Democratic opposition over the Iran conflict and defense spending levels. Senate Majority Leader John Thune has not indicated when he will bring the NDAA up again, and Republicans are divided on the reconciliation package's size and offsets.