$1.5 Trillion Defense Bill Headlines Manufacturing Agenda in Congress

The Pentagon is asking Congress for a record $1.5 trillion for fiscal 2027, and the National Defense Authorization Act carrying that request is the biggest manufacturing bill still moving as the 119th Congress enters its final stretch.

The NDAA request, aimed at ramping up weapons and military equipment production, comes as the U.S. faces a weapons shortage tied to its war with Iran — a shortage President Donald Trump has repeatedly denied. The House passed its version in July; the Senate has had the bill since Sept. 14.

The money would stabilize the defense industrial base's supply chain and manufacturing operations, help small businesses win contracts, and fund modernized weapons and munitions systems. The request includes $21.4 billion for the F-35 Lightning II program alone.

One provision, added over the summer to both chambers' versions, could deepen U.S.-Israel military ties by consolidating Israeli technology within the U.S. defense supply chain — potentially opening the door to shared R&D, licensing agreements and co-production. That runs against Trump's Nov. 3 announcement that the U.S. will stop providing Israel billions of dollars in military aid in 2027.

What happens to chemical review fees?

Chemical manufacturers are watching a Dec. 11 deadline. User fees under the Frank R. Lautenberg Chemical Safety for the 21st Century Act — the 2016 amendment to the Toxic Substances Control Act — were set to expire Sept. 30. Congress punted, extending them through Dec. 11 in a continuing resolution signed in September.

The stakes: the EPA's review process for new substances is legally capped at 90 days, but chemical trade groups and companies say reviews routinely run longer and hurt their businesses. They also argue the agency's guidelines are inconsistent and its risk assessments are not science-based. Support for the law, once lauded by industry, has dissipated over the decade since passage.

Lawmakers remain divided on how to fix TSCA. When Congress returns, the clock will be ticking on a deal that satisfies chemical makers while preserving chemical safety reviews covering substances such as PFAS and methylene chloride.

Is a national robotics strategy coming?

Lawmakers introduced companion bills this year to create a national robotics commission, aiming to spur domestic investment and close the gap with China, Japan, Germany and other leaders.

The National Commission on Robotics Act, introduced in February by Reps. Jay Obernolte, R-Calif., Jennifer McClellan, D-Va., and Bob Latta, R-Ohio, has a Senate version from Sen. Todd Young and others, introduced in June. Both sit in their respective science and commerce committees.

The commission would examine foreign robotics policies, supply chain risks, workforce incentives and industry-academic partnerships, delivering an interim report within one year and a final report within two.

The urgency is real. China accounted for 59% of global robot deployments last year — 354,200 installations — according to the International Federation of Robotics. The U.S. logged 38,400 installations, more than any other country besides China. Industry advocates argue foreign subsidies and lower costs make U.S. suppliers noncompetitive, and note the vast majority of robots are manufactured and deployed overseas.

Will permitting reform finally pass?

The Bipartisan American Affordability and Jobs Act of 2026, introduced Sept. 30 by Sens. Martin Heinrich, D-N.M., Mike Lee, R-Utah, Shelley Moore Capito, R-W.Va., and Sheldon Whitehouse, D-R.I., targets the environmental review bottleneck manufacturers have complained about for years.

Key manufacturers and trade groups signed a letter to Senate negotiators urging passage this year. But House Minority Leader Hakeem Jeffries, D-N.Y., voiced concerns and criticized the lack of House Democratic input, Politico reported Nov. 5 — a wrinkle that could hurt the bill's lame-duck chances.

The bill would:

• Narrow the definition of "major federal actions" subject to NEPA review, excluding projects with no or minimal federal funding, or funded only through loans or loan guarantees
• Set a two-year deadline for environmental impact statements and one year for environmental assessments
• Require a "unified interagency data system" linking agency systems for environmental reviews and authorizations

What else is on the docket?

Several other bills bear directly on manufacturing supply chains:

• Surface transportation reauthorization. The House passed the Build America 250 Act, a five-year package, 62-to-2 earlier this year. It adds $100 billion over a decade for Federal Highway Administration programs covering bridges, transit, rail and motor carriers. The Senate has yet to release its version; the IIJA, set to expire Sept. 30, was extended through Dec. 11. The National Association of Manufacturers has flagged highway congestion, bottlenecked ports and freight delays as core reasons the bill matters.
• MATCH Act. Would align U.S. export controls on sensitive semiconductor manufacturing equipment with allied nations to block China and other adversaries from exploiting chipmaking technology and servicing loopholes. House and Senate versions remain in committee.
• Chip EQUIP Act. Would bar CHIPS Act funding recipients from buying specialized manufacturing tools from Chinese government-owned or controlled entities, or other foreign entities of concern. It cleared House Energy and Commerce and Science, Space, and Technology committees in September.
• Memory Chip Competitiveness Assessment Act. Requires Commerce to study the advanced memory technology supply chain, pricing impacts and ways to expand supply without sourcing from North Korea, China, Russia or Iran. Reported out of House Energy and Commerce in September.
• Robotics Supply Chain Improvement Act. Directs Commerce to collect more data and set standards for new robotics to keep the U.S. ahead of China. Introduced Aug. 6; in the Commerce Committee.
• Advanced Manufacturing Jobs in America Act. Directs the Labor Department to run pilot projects pairing community and tribal colleges, local boards, manufacturers and MEP centers on advanced manufacturing training. In the House Education and Workforce Committee.
• American Manufacturing Revitalization Exchange Program Act. Creates an international exchange program at the State Department to train technicians, machinists, engineers and production specialists. Referred to House Foreign Affairs in June.
• RED Tape Act. Drops the Clean Air Act requirement that the EPA review and comment on federally authorized construction projects already subject to NEPA review. Passed the House in April; in the Senate environment committee.
• FENCES Act. Exempts states from penalties for ozone and particulate matter emissions they can't control when national air quality standards aren't met. Passed the House in April; in Senate Environment and Public Works.

With the NDAA, a likely second continuing resolution and the permitting bill all landing in a compressed lame-duck window, manufacturers and their supply chain partners should expect a heavy December of policy decisions shaping freight demand, defense procurement and chemical logistics into 2027.