UAS, Cybersecurity, and Countering China: What's Inside the 2025 National Defense Authorization Act

The National Defense Authorization Act (NDAA) for the upcoming fiscal year is not yet law, but several key points are discernible from early reports: the U.S. military is concentrated on tensions with China, modernization based on AI, cybersecurity threats, and the growth of unmanned aircraft systems (UAS), among other emerging concerns.

The NDAA has been approved by Congress for 63 consecutive years. Following passage in the House and a mark-up by the Senate Armed Services Committee (SASC), the bill now awaits approval in the Senate. As the Senate mulls over the bill’s details, let’s break down the important parts of Congress’ annual plan for our defense sector.

Strategic Priorities

The NDAA outlines several strategic priorities to address the evolving security landscape. These priorities reflect the increasing emphasis on countering threats from near-peer adversaries like China and Russia, as well as addressing non-traditional security challenges.

1. Time for Tech: Preliminary mark-ups in both the House and Senate indicate the NDAA will promote greater investment in new high tech weaponry – such as AI and unmanned aircraft (UAS). Specifically, the bill pushes for production of uncrewed, low-cost aircraft that integrate AI and necessitates a strategy for countering foreign drone technologies and investigating drones that cross the border. The 2025 NDAA also encourages investment in quantum computing abilities, phasing out of old plane and ship models, and supports increasing funding for nuclear modernization. Increased investment in these areas comes as foreign aggressors begin to develop new computing abilities alongside growing threats of nuclear conflict from nations like North Korea. To achieve these goals, the act stresses support from commercial sectors, lateral entry programs, and expansion of roles in the military, such as the Chief Digital and Artificial Intelligence Officer Governing Council.

2. Eyes on China and the Indo-Pacific: The act highlights the importance of countering The People’s Republic of China, particularly as Putin and Xi strengthen diplomatic ties. To accomplish this, the NDAA outlines a strategy to buttress alliances; this includes establishment of a joint force headquarters subordinate to the U.S. INDOPACOM in Japan and Australia. Further, early versions of the bill indicate a need for formulation of a cross-regional strategy identifying hostile activities engaged in by the Chinese People's Liberation Army (PLA).

3. Calls for Heightened Cybersecurity: Adaptations of the 2025 NDAA specify that cybersecurity is an area for improvement. As per the United States Senate Armed Services Committee, cybersecurity strengthening begins with establishing greater protection of underwater sea cables. The committee also promotes the evaluation of the military’s Joint Warfare Cloud Capability (JWCC), a vehicle that enables the DoD to obtain cloud storing services, in addition to other initiatives to bolster information management.

Budget and Funding Allocation

The NDAA for the upcoming fiscal year proposes a significant increase in defense spending, reflecting the growing geopolitical challenges and the need for modernization of the U.S. military. The bill authorizes over $800 billion in funding, covering a broad spectrum of defense-related activities, including personnel salaries, equipment procurement, research and development, and military construction projects.

1. Spending Top Line: The Senate Armed Services Committee version of the bill allocates $919.9 billion for national defense spending, which is about a 4% increase over the previous $883.7 billion budget. The national defense budget cap has long been an area of contention, and as the bill sees the Senate floor, this will continue to be an area which lawmakers fight over.

Notably, Jack Reed (D-R.I.), the Senate Armed Services Committee Chair, voted against the budget behind closed doors in June due to budget cap concerns.

2. Military Pay Raises: The SASC supports a 4.5% pay increase for all military members and a 2% pay raise for civilian employees employed by the DoD.
3. U.S. Combat Capacity: The Senate Armed Services Committee mark-up supports various budget allocations to ensure the ultimate strength of American troops, highlighting some areas of budget growth and shrinkage. Designations include the authorization of $1.43 billion for a third DDG Arleigh Burke-class destroyer, $252 million to further the Navy’s development of the nuclear-armed sea-launched cruise missile, more funding for an additional 5 HH-60W Combat Rescue Helicopters, and the designation of $70 million for the W80-X ALT-SLCM, which would go toward developing a warhead for the nuclear-armed sea-launched cruise missile. While not finalized, and likely subject to change, the U.S. military budget will reflect new desires for modernization and increased combat capabilities.

Contentious Subjects

The new NDAA has not been without controversy. Several provisions have sparked debate among lawmakers, advocacy groups, and the public. Here are a couple of the most contentious issues:

1. Climate Change Initiatives: Versions of the bill thus far have incorporated references to climate change initiatives and alluded to climate-conscious defense strategies. As just one example, the SASC report encourages the DoD to build military installation resilience through the scaling and implementation of the DoD’s Climate Assessment Tool.

2. Diversity, Equity and Inclusion Amendments: When the House amended the bill earlier this year, it added elements that would ban drag shows on military bases, limit healthcare for transgender military members, and restrict abortion access for servicewomen.

Despite these contentious subjects, the bill has received bipartisan support. “This bill shows there is bipartisan support for doing more to maintain deterrence and protect American interests. I am encouraged that many of my colleagues have joined me in the conversation about the need to invest more in our national defense. I look forward to discussing the peace through strength vision I have laid out in the months to come,” wrote Senator Roger Wicker (R-MS), after the SASC completed its amended version of the bill.

The 2025 NDAA still has a long road ahead. The 2024 NDAA did not pass until December 2023; therefore, there are likely many revisions ahead before the 2025 version becomes law. The House and the Senate must compromise on a final version of the bill, which will then go to the president’s desk to become law.

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