NDIA Statement on House Passage of Reconciliation Package

(ARLINGTON, Va) The National Defense Industrial Association (NDIA) welcomes House passage of the reconciliation package advanced under H.R. 1, which includes key provisions to strengthen America’s defense industrial base and enhance national security. The legislation restores full expensing for research and development (R&D), a longstanding priority for all defense contractors, especially small businesses. It also increases interest deduction limits and reinstates full expensing for capital equipment—steps that will help defense manufacturers invest, expand, and innovate. Importantly, the bill provides nearly $150 billion in defense funding to expand munition stockpiles, support the industrial base, and accelerate innovation to the warfighter. These investments are critical to readiness, deterrence, and sustaining the U.S. military’s technological edge. To be effective, this initial investment must be followed by strong, consistent topline funding through a regular, on-time appropriations process.