House Takes Up Annual Defense Bill with Military Pay Raise, China Provisions

House lawmakers this week are considering the Fiscal Year 2027 National Defense Authorization Act (NDAA), the annual defense policy bill that authorizes military spending and sets Pentagon policy for the coming fiscal year.

Congress has passed an NDAA every year for more than six decades, making it one of the federal government’s most significant annual pieces of legislation. The bill establishes defense priorities and authorizes increased spending for every branch of the U.S. military – and is one of the few bills that still typically passes with bipartisan support. But amid Democrat opposition to the ongoing conflict in Iran, there is real concern that Republicans could have a tougher time than usual getting it to President Trump’s desk.

House Armed Services Committee Chairman Mike Rogers (R-AL) praised the legislation, saying, “The FY2027 NDAA strengthens our ability to defend ourselves and deter our adversaries by revitalizing our defense industrial base, investing in innovative technologies, and restocking the Arsenal of Freedom.”

The House version of the FY2027 NDAA includes several major provisions that would affect military funding, defense manufacturing, and service member compensation. Among them is a tiered military pay raise, with increases ranging from 5% to 7% depending on rank. The Senate proposal, by comparison, includes a flat 3.6% pay raise for all service members.

The legislation also authorizes increased funding for military training, equipment maintenance, modernization programs, and ammunition production in an effort to improve military readiness as the Pentagon responds to evolving global security threats.

The bill places renewed emphasis on countering China’s growing military influence, with special focus on strengthening deterrence in the Indo-Pacific, improving defense supply chains, and preparing for potential security challenges involving Taiwan.

The NDAA would also tighten restrictions on the Department of War’s use of companies linked to the Chinese military. In addition, lawmakers are pursuing new export controls on artificial intelligence and investments in China’s biotechnology sector that supporters say would help prevent sensitive American technology from benefiting the Chinese military.

The legislation also seeks to expand domestic weapons production and streamline the military procurement process. Among its provisions are measures to strengthen the U.S. defense industrial base by increasing domestic sourcing of critical minerals and requiring the Navy to expand third-party construction of ship modules to improve efficiency and production capacity.

Another provision of particular interest would limit stock buybacks by major defense contractors that fail to meet production goals. Supporters argue the measure would encourage companies to reinvest in manufacturing capacity and production rather than returning profits to wealthy shareholders, while critics contend it could discourage private investment in the defense industry.

Last week, Senate Democrats blocked the FY2027 NDAA from advancing to the Senate floor, citing concerns over the proposed topline Pentagon budget number and the Trump administration’s handling of the conflict with Iran. The final vote was 50-46, well short of the 60 votes needed to begin debate on the legislation.

Senator Jack Reed (D-RI), the ranking member of the Senate Armed Services Committee, said concerns about both the Pentagon budget and the conflict with Iran influenced his vote against advancing the bill. “I think the most practical step is to settle the budget issues,” Reed stated.

Despite the procedural setback, congressional leaders are expected to continue negotiations on the legislation in the coming weeks.

For many Americans, the NDAA’s impact extends beyond Washington. The legislation determines military pay raises and benefits, guides investments in new weapons systems and equipment, and shapes U.S. defense priorities in response to threats from adversaries including China, Russia, Iran, and North Korea. It also influences defense manufacturing jobs and military contracts across the country.

The House is expected to vote on the legislation before the Senate resumes consideration of its own version. If both chambers ultimately approve the measure, lawmakers will reconcile any differences before sending a final bill to President Trump for his signature.

The NDAA does not have a hard legal deadline for passage, but Congress traditionally aims to pass the bill before the start of the new fiscal year on October 1.

Lillian Ferrell is a senior at Hillsdale College studying English and music. She has experience in journalism and podcasting as the host of the Grace Over Grind podcast. Her written work focuses on American politics, culture, and public policy.