SANDY HOOK, Conn. - President Trump signed the FY26 National Defense Authorization Act (NDAA) into law Thursday, finalizing the year-long process for the defense policy bill. The House approved the bill last week in a 312-112 vote, and the Senate passed the NDAA Wednesday by a vote of 77-20. The legislation sets the national security topline at $900.6 billion, an $8 billion increase over the president's request. The Pentagon's portion of the total is $855.7 billion in the bill, which marks a $7.5 billion increase over the administration’s initial request of $848.2 billion.

The NDAA reflects a decisive pivot toward modernization. Lawmakers added a total of $12.7 billion specifically for developing and acquiring new military equipment. Consequently, procurement funding rose to $161.7 billion ($8.9 billion over the request), and research and development climbed to $145.7 billion ($3.7 billion over the request). These plus-ups were partially funded by offsetting cuts: $4.1 billion was removed from the Operation & Maintenance budget, and personnel funding saw a $1.5 billion reduction.

The bill supports ongoing defense acquisition reform efforts. A notable development is the establishment of a new Portfolio Acquisition Executive (PAE) role, which aims to shift the weapons buying process from a program-based model to a portfolio-centric approach. The new model is intended to provide acquisition executives with increased oversight and authority to manage groups of capabilities, rather than isolated projects. The legislation also includes multiple provisions intended to increase the number of commercial solutions adopted by the Pentagon, mirroring a push by the administration to prioritize the use of commercial options over bespoke capabilities that often take longer to develop cost significantly more.

Finalizing the NDAA doesn't complete the Pentagon's FY26 budget cycle. Congressional appropriators must next finalize a defense appropriations bill, which provides the final allocation of funds for the military for the remainder of the fiscal year. Most of the government is currently operating under a continuing resolution through January. With a holiday recess approaching, Congress has only weeks to conclude work on the FY26 spending bills to avoid another shutdown. While the House been focused largely on healthcare matters, the driver of October's initial shutdown, the Senate is drafting a minibus appropriations package that includes the Pentagon's budget. If lawmakers can align on the minibus, the military could avoid the disruptions of a full-year CR or another partial government shutdown.

The House has been largely focused on healthcare matters that led to the initial shutdown in October, but the Senate is working on a minibus appropriations bill that includes the Pentagon's budget. If lawmakers can make progress on the minibus bill, then the military could be spared from further disruptions caused by another CR or partial government shutdown.

Source: Forecast International
Associated URL: https://www.forecastinternational.com
Author: s. McDougall, Defense Analyst 

WASHINGTON - The U.S. Marine Corps has commenced full-rate production of the Marine Air Defense Integrated System (MADIS), a new short-range air defense platform designed to neutralize both unmanned aerial systems and manned aircraft. Manufactured by Kongsberg Defence & Aerospace, the system debuted in September and transforms two Joint Light Tactical Vehicles into a mobile hunter-killer team. This acquisition milestone provides Marine units with the capability to identify and destroy threats from fixed positions or while in motion, a significant shift from previous Man-Portable Air Defense Systems (MANPADs) that required troops to dismount to engage targets.

The MADIS configuration pairs two distinct vehicles to address specific threats: one unit is equipped to counter helicopters and fixed-wing aircraft, while the partner vehicle focuses on drone defense. The system offers a choice of lethality, utilizing Stinger missiles or a 30mm cannon, and features recently upgraded targeting algorithms, sensors, and mobility. Officials noted that the system is built with a flexible design to accommodate future upgrades against emerging threats.

Following the start of production, Marines have initiated training on the platform, including live-fire exercises at the Marine Corps Air Ground Combat Center in Twentynine Palms, California. These recent drills follow the system’s first live-fire test conducted during Exercise Balikatan in April 2025.

Source: Defense News
Associated URL: https://www.defensenews.com/unmanned/2025/12/16/drone-hunter-killer-madis-vehicles-now-being-produced-for-marines

SINGAPORE -- In a high-security Shenzhen laboratory, Chinese scientists have reportedly built a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence, smartphones and weapons central to Western military dominance.

Completed in early 2025 and now undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML who reverse-engineered the company's extreme ultraviolet lithography machines or EUVs, according to two people with knowledge of the project.

China's machine is operational and successfully generating extreme ultraviolet light, but has not yet produced working chips, the people said.

The availability of parts from older ASML machines on secondary markets has allowed China to build a domestic prototype, with the government setting a goal of producing working chips on the prototype by 2028, according to the two people.

But those close to the project say a more realistic target is 2030, which is still years earlier than the decade that analysts believed it would take China to match the West on chips.

Source: Reuters
Associated URL: https://www.reuters.com/world/china/how-china-built-its-manhattan-project-rival-west-ai-chips-2025-12-17/