Estimated Changes in Direct Spending Under S. 2296, the National Defense Authorization Act for Fiscal Year 2026

September 3, 2025

Cost Estimate

As reported by the Senate Committee on Armed Services on July 15, 2025

Summary

S. 2296 would prescribe various authorities and policies that govern national defense and foreign affairs. The bill would affect direct spending, as shown in the table and discussed below. Those effects stem mainly from new requirements that would restrict the Department of Defense’s (DoD) ability to purchase generic pharmaceuticals, authorize DoD to enter into multi-year contracts for ship maintenance, and promote the use of third-party financing for improvements to the defense industrial base.

Corrections and Updates

On September 11, 2025, CBO updated this estimate regarding section 868, Repeals of Existing Law to Streamline the Defense Acquisition Process. When the estimate was posted on September 3, 2025, CBO had not completed its review of that section. CBO now estimates that enacting section 868 would change net direct spending by less than $500,000 over the 2026-2035 period and would not affect revenues.