Massive Defense Bill Boosts Military Pay 4.5% But Blocks DEI Programs and Expands Police Drone Authority

This legislation, deceptively titled the “Abducted Ukrainian Children Recovery and Accountability Act” (a nod to one provision), is actually the massive Fiscal Year 2026 National Defense Authorization Act (NDAA). It’s the annual policy and spending blueprint for the entire U.S. national security apparatus, setting budgets for the Department of Defense, Energy's nuclear programs, and the Intelligence Community.

What does it actually do? It authorizes a 4.5% pay raise for service members, funds new ships and planes, and puts serious money into improving military housing and childcare. Think of it as the military’s annual operating budget, but it also contains dozens of policy riders that affect everything from foreign policy to your local police department’s ability to use counter-drone technology.

The Direct Boost for Military Families

If you have a spouse or family member in the Army, Navy, Air Force, or Marines, this bill has a direct impact. Division A authorizes that 4.5% pay increase, which is a big deal for families struggling with inflation. Beyond the paycheck, the bill focuses on quality of life: it expands parental leave policies and funds pilot programs to increase access to in-home childcare. It also extends legal deadlines for dozens of previously authorized but unfinished construction projects, meaning those new barracks, training centers, and, crucially, childcare centers (Division B) might actually get built before the authorization expires. For a junior enlisted family, better access to affordable childcare and a small pay bump can be the difference between staying in the service or getting out.

Where Policy Gets Sticky: DEI and Supply Chains

Not every provision is about funding. This bill contains some significant policy shifts. One of the most controversial is found in Section 2, which explicitly prohibits the use of funds for Diversity, Equity, and Inclusion (DEI) programs within the Department of Defense. This is a clear policy signal that could significantly change internal recruiting, retention, and training efforts across the military, potentially impacting the support structures available to minority service members and their families.

Meanwhile, the bill takes aim at global supply chains, specifically targeting China and Russia. Division A bans the military from purchasing seafood from these countries, and Division H establishes broad new rules that restrict U.S. investment in advanced foreign technologies—things like semiconductors and AI—in countries of concern. For U.S. manufacturers in the defense industrial base, this is meant to be a boon, forcing the sourcing of critical materials like advanced batteries domestically by 2030. If you work in manufacturing, this could mean more jobs, but it could also mean higher costs for some military equipment as supply chains are forcibly rewired.

New Powers for Local Cops

One provision tucked away in Division H could have a significant impact on domestic security and civil liberties. The bill expands the authority to counter drone threats, allowing federal, state, and local law enforcement to intercept or disable drones that pose a “credible threat” to people, critical infrastructure, or large public venues like stadiums and prisons. While the intent is to stop bad actors from using drones for nefarious purposes, this is a major expansion of federal power delegated down to local police. The key question is how “credible threat” will be defined and regulated. Without strict guidelines, this new authority could easily be overused or misused, raising concerns about privacy and surveillance.

The Intelligence Transparency Trade-Off

Finally, the bill addresses the Intelligence Community (Division F). While it authorizes funding for intelligence activities and creates new strategies to counter foreign AI theft, it also mandates increased transparency on two high-profile, sensitive topics. It requires the public release of classified 9/11 records and the declassification of intelligence related to the origins of COVID-19. This is a win for public accountability and historical clarity, but it comes alongside provisions that create a dedicated mission manager focused on China and prohibit contracts with certain Chinese biotech firms, tightening the focus and restrictions on international scientific and business engagement.