2026 NDAA: $900B+ Defense Bill Prioritizes Hypersonics and AI

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Dec 10, 2025

Congress just passed a $900B+ defense bill pouring billions into hypersonics, AI weapons, and space systems, while Obamacare subsidies are left to expire in weeks. What does this say about America's real priorities right now?

Financial market analysis from 10/12/2025. Market conditions may have changed since publication.

Every December, Washington does the same dance: lawmakers rush to finish the massive defense policy bill before they head home for the holidays. This year felt different, though. While most of us were thinking about holiday shopping lists, Congress quietly finalized a defense package that reads less like a budget and more like preparation for a very different kind of future.

I’ve been following these bills for years, and I’ll be honest, this one stopped me in my tracks. The numbers are enormous, of course, but it’s what the money is actually buying that feels like a turning point.

A New Era of American Military Power Is Being Funded Right Now

Late Sunday night, the House Armed Services Committee released the final text of the fiscal year 2026 National Defense Authorization Act. The topline number? Roughly $900.6 billion — about eight billion dollars more than the Pentagon itself asked for, and a clear signal that Congress wants to move faster than the bureaucracy.

That extra eight billion might sound like pocket change in a trillion-dollar budget environment, but in defense terms it’s a deliberate statement: we’re not waiting.

Where the Real Money Is Going

Let me break down the headline investments that actually matter.

  • $26 billion for shipbuilding — the biggest commitment in years
  • $38 billion for air power, including full funding for the Navy’s future sixth-generation fighter
  • $25 billion purely for munitions stockpiles
  • And then the one that made me do a double take: $145.7 billion explicitly targeted at hypersonics, artificial intelligence, quantum technologies, directed energy weapons, and autonomous systems

That last line item alone is larger than the entire defense budget of most countries. It’s not “research and development.” It’s procurement-scale money for weapons that, frankly, still feel like they belong in a movie.

We’re talking about missiles that fly above Mach 5 and can maneuver unpredictably, laser systems capable of burning drones out of the sky, AI that can run entire battle networks with minimal human input, and satellites that can blind or destroy other satellites. This isn’t science fiction anymore. It’s line-item spending.

The “Golden Dome” Makes Its Debut

One phrase keeps appearing in the bill text: Golden Dome. It’s the new name for an integrated, multi-layer missile defense shield that would cover the continental United States — think Iron Dome, but on steroids and for the entire homeland.

The legislation directs immediate funding increases for THAAD, Patriot, SM-3 interceptors, and begins serious money for space-based sensors and interceptors. It also codifies several executive orders that prioritize speed in acquisition — something the Pentagon has talked about for years but rarely delivered.

This year’s bill helps advance President Trump and Republicans’ Peace Through Strength agenda by revitalizing the defense industrial base and restoring the warrior ethos.

House Speaker Mike Johnson

Getting Rid of What They Call “Distractions”

Perhaps the most politically charged part of the bill is what it removes.

Every single diversity, equity, and inclusion office, program, and training requirement inside the Department of Defense? Gone. Permanently prohibited from being re-created. The legislation also bans biological males from competing in women’s sports at service academies and ties promotions explicitly to merit, with race and gender considerations outlawed.

Love it or hate it, that’s a clearer ideological line than we’ve seen in decades.

At the same time, the bill delivers the largest quality-of-life investment for troops in years:

  • 3.8% pay raise across the board
  • $1.5 billion for barracks and family housing upgrades
  • $491 million targeted at military childcare
  • Big increases in family separation allowance and hazardous duty pay

In other words, take care of the warfighter, but strip out the politics, and buy the most advanced weapons on earth. That’s the trade.

China Is the Clear Focus

If there’s one country mentioned more than any other in the 1,000+ page document, it’s China.

The Pacific Deterrence Initiative gets a major funding boost. There are new bans on procuring critical minerals, biotech, drones, or solar panels from Chinese-linked entities. Taiwan military cooperation is fully funded. Even the phrasing feels sharper — multiple sections talk about “deterring Chinese aggression” rather than the softer diplomatic language of previous years.

One subtle but important detail: the bill quietly puts brakes on any major reduction of U.S. forces in Europe without Congressional approval. You need 76,000 troops in Europe or you can’t draw down — a clear message that even with the China pivot, abandoning NATO allies isn’t on the table.

Meanwhile, Back Home…

Here’s the part that feels almost surreal.

While Congress was finalizing a bill that spends $145 billion on weapons most of us can barely imagine, the enhanced Obamacare subsidies — the ones that have kept millions of Americans insured at low or no cost — are set to expire in just a few weeks.

There’s no serious talk about health care market chaos in 2026, with some estimates suggesting average premiums could double for many families. Yet the political energy to fix it just… isn’t there right now.

It’s a stark illustration of priorities. When national security leaders believe the world is getting more dangerous — and make no mistake, this bill screams that belief — domestic social programs suddenly find themselves on the back burner.

What This Actually Means for the Future

I’ve been around long enough to remember when “hypersonic” was a theoretical concept and “AI in warfare” meant better logistics software.

We’re past that now. The 2026 NDAA isn’t just funding incremental upgrades. It’s funding an entirely new generation of American military dominance built around speed, precision, autonomy, and survivability in space and cyberspace.

Whether that makes you feel safer or more anxious probably depends on your worldview. But one thing feels certain: the world five or ten years from now is going to look very different because of decisions being made this month.

And while politicians argue about culture-war amendments and border security language, the engineers at Lockheed, Raytheon, Anduril, and a dozen startups you’ve never heard of are already spending the money.

The future isn’t coming. In the defense world, it just got funded.

The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.
— Robert Kiyosaki
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