On October 9, 2025, the US Senate passed its version of the National Defense Authorization Act (“NDAA”) for Fiscal Year 2026, paving the way for the chamber to formally negotiate with the US House of Representatives on a compromise version of the legislation. A must-pass piece of legislation that funds Department of Defense (“DoD”) operations on an annual basis, the NDAA is a frequent vehicle for trade-related provisions and legislative changes affecting DoD acquisition policies with direct implications for government contractors.
Below we discuss key trade-related amendments that were adopted by the Senate prior to passage.
Biotechnology
- A modified version of last year’s “Biosecure Act” that would prohibit heads of executive agencies from procuring or using biotechnology equipment or services from a “biotechnology company of concern,” defined as a company that is identified by DoD to be (1) a Chinese military company operating in the United States; (2) controlled or operated by a foreign adversary and poses a national security risk; or (3) a subsidiary, parent, affiliate, or successor of such companies. It would allow for the prohibition to be waived on a case-by-case basis.
Export Controls
- The “Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025” or the “GAIN AI Act of 2025” that would require companies selling AI chips to give first-refusal to American buyers before selling the chips to entities of foreign countries of concern.
- The “AUKUS Improvement Act of 2025” that would make improvements to the AUKUS partnership. Specifically, it would exempt State Department-vetted entities that have been approved as AUKUS Authorized Users from the requirement to obtain Third Party Transfer approvals under Foreign Military Sales, and it would exempt Australia and the United Kingdom from the need for Congressional Notification for overseas manufacturing.
- An amendment that would modify the requirements for transfers of US defense articles and defense services among the Baltic states.
Foreign Investment
- The “Foreign Investment Guardrails to Help Thwart China Act” or “FIGHT China Act” that would authorize the Department of the Treasury to prohibit US investment in certain technologies in China that could threaten US national security and direct Treasury to impose regulations requiring US persons who make investments in certain technologies in China, including artificial intelligence, advanced semiconductors, quantum systems, and hypersonics, to notify the Department. It would also authorize the President to impose sanctions against participants in China’s defense and surveillance industries, but would specify that sanctions could not be imposed on the importation of goods.
- An amendment that would require the Committee on Foreign Investment in the United States (“CFIUS”) to annually review, update, and report on the facilities and property of the US government determined to be national security sensitive for purposes of review of real estate transactions under Section 721 of the Defense Production Act of 1950.
- An amendment that would add agricultural land and agricultural biotechnology to the list of industries in which CFIUS can review and potentially restrict transactions with foreign entities, specifically those tied to the governments of China, Russia, North Korea, and Iran.
Other Trade Provisions
- The “Defending International Security by Restricting Unacceptable Partnerships and Tactics Act” or “DISRUPT Act” that would make it US policy to disrupt cooperation between China, Russia, North Korea and Iran, including by using threats of sanctions and export controls and by exposing cooperation between and among the countries where it occurs. It also would make it US policy to prepare for the potential of the United States confronting simultaneous conflicts with one or more of the countries by bolstering deterrence across all priority theaters.
- The “Western Balkans Democracy and Prosperity Act” that would strengthen relations between the United States and the countries in the Western Balkans. Specifically, it would address economic and political development in the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia), including by supporting anti-corruption and trade initiatives. In addition, the President would be required to submit any proposed termination of certain sanctions, waiver of such sanctions, or licensing actions related to the Western Balkans to Congress for a specified review period prior to implementation.
- An amendment that would require the President or his designee to certify whether the Government of Syria is meeting certain conditions following repeal of the Caesar Syria Civilian Protection Act of 2019,
A conference committee of members from both chambers will now be appointed to negotiate and create a single, compromise bill known as a conference report. This conference report must then be passed by both the House and the Senate before it can be sent to the President by the end of the year.