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FMA Washington Report: July 10, 2026
Senate Armed Services Committee Approves Fiscal Year 2027 NDAA

The Senate Armed Services Committee (SASC) approved its version of the Fiscal Year 2027 National Defense Authorization Act (NDAA), S. 4874, on June 11, by a vote of 18-9, clearing its way for consideration by the full Senate. Notably, the Senate version prohibits any reduction in force (RIF), hiring delay, or hiring freeze at any of the four public shipyards or for any position funded by a working capital fund.

The House Armed Services Committee passed its version (H.R. 8800) by a vote of 44-12. The topline funding authorized for national defense by both bills is approximately $1.15 trillion. After both chambers pass their respective bills, the differences between the bills will need to be ironed out before the bill can be sent to President Trump.

Click here to read a detailed summary of the Senate version.

As in the House version, the Senate bill includes language to formally rename the Department of Defense the “Department of War.” The Congressional Budget Office estimates the change would cost up to $125 million to implement.

Among the differences between the bills, the Senate version authorizes a 3.6 percent pay raise for all military members, while the House version authorizes a 7 percent pay raise for all military personnel ranked E-5 and below, a 6 percent boost for E-6 to O-3, and a 5 percent raise for O-4 and above. Neither bill boosts spending for defense civilians. However, the Senate version allows the Secretary of Defense to establish the pay of wage-grade employees located at any defense industrial base facility, in an effort to make rates of pay comparable to the private sector and surrounding areas.

SASC Chairman Roger Wicker (R-MS) called S. 4874 a “seminal breakthrough for the American military,” that will “define the next generation of warfare.” Ranking Member Jack Reed (D-RI) said the bill strengthens national defense and enhances oversight and accountability. “It forces the Secretary to be more accountable to Congress and will prevent many errors of the past from being repeated in the future,” according to Reed.

The House and Senate are poised to consider their respective versions of the NDAA in the coming weeks.

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