Trump Signs NDAA for Fiscal Year 2026 with $901 Billion Military Budget and Multiple Restrictions on China
On December 18 local time, U.S. President Trump signed the National Defense Authorization Act (NDAA) for fiscal year 2026, raising U.S. defense spending to a record $901 billion, an increase of $8 billion over the government’s initial request. The bill was passed with strong bipartisan support in both houses of Congress, becoming the core document of U.S. annual defense policy.
The core provisions of the bill focus on containing China, systematically embedding multiple restrictive measures: incorporating key elements of the Biodefense Act and the Foreign Investment Protection to Contain China Act, prohibiting federal agencies from cooperating with “sensitive biotechnology companies” in China, and controlling U.S. investments in areas such as semiconductors, AI, and quantum information in China; allocating $1 billion to support the “Taiwan Security Cooperation Initiative,” linking it to previous arms sales of $11.1 billion to the island. At the same time, the bill stipulates providing $400 million in military aid to Ukraine each year for the next two years and limiting the number of U.S. troops stationed in Europe and the U.S. to below 76,000, with some provisions contradicting Trump’s foreign policy.
Domestically, the bill includes a nearly 4% pay increase for U.S. military personnel, the development of the Iron Dome missile defense system, the cancellation of Pentagon diversity programs, and requires the Defense Secretary to submit videos related to drug-related ship attacks, or else suspend some travel budgets.
On the 19th, China strongly responded, with the Ministry of Foreign Affairs, the Ministry of Defense, and the Taiwan Affairs Office condemning the bill for portraying a Chinese threat and interfering in internal affairs, urging the U.S. not to implement negative clauses related to China and the island. If the U.S. insists on going its own way, China will take resolute and strong measures to defend its sovereignty, security, and development interests.