Last week, the House passed its version of the FY26 annual National Defense Authorization Act (NDAA), a yearly national security policy package that has been signed into law every year for over the past five decades. While there were provisions on China, supply chains, and AI in the base text that the House Armed Services Committee (HASC) marked up and reported, the floor process allowed for Members to also address these broad topics-and there was plenty of interest in doing so.
Below’s list represents those amendments adopted on the House floor that touch on these issues. All passed by voice vote (i.e., faced no opposition). Notably, the outbound investment bill (FIGHT China Act) and BIOSECURE Act were not offered to the bill, though the former is still in the mix on the Senate side (more below).
Senate NDAA. We are waiting to see if the Senate can pass its version of the NDAA this week or in early October after the September 30 government funding deadline has been addressed. Negotiations over possible NDAA amendment votes-including a second Manager’s package-continue to bog down the floor process.
Amendments in the first Manager’s package remain in the Senate NDAA, including Senator Jim Banks’ advanced AI chip export language (GAIN Act), although it could be amended before final passage. While the Banks’ legislation has generated strong pushback from the tech industry, Anthropic’s Dario Amodei has added his support to the bill.
Likewise, we expect bipartisan amendments recently floated for a second Manager’s package to ultimately be included (e.g., ROAD to Housing Act). Hundreds of other filed amendments, such as Senator John Cornyn’s outbound investment language (FIGHT China Act), hang in the balance amidst broader objections from Democrats.
NDAA Conference Report. Regardless of the Senate’s ability to move to final passage, both chambers will begin conferencing their bills throughout the fall with the goal of passing final legislation before the end of the year for the President’s signature. None of these policies are set in stone and Republican Leadership maintains that Congress will defer to President Trump and his Administration (most notably: Commerce, Treasury, USTR) on China policy. That said, the Administration can use these policies to its advantage in ongoing talks with the Chinese-both as carrot and stick.
China Talks. To that end, both Secretary of War Pete Hegseth and Secretary of State Marco Rubio held calls with their respective Chinese counterparts last week. Meanwhile, Treasury Secretary Scott Bessent wrapped up two days’ worth of meetings with Chinese Vice Premier He today in Spain. All indications are that the talks were cordial, if not productive. It appears that the Hegseth and Rubio calls revolved around China seeking assurances on Taiwan (more on that below).
Bessent was primarily focused on fentanyl and the TikTok divestiture. On the latter, the Administration announced today that a framework had been reached, pending a call between Presidents Trump and Xi this Friday. For his part, President Trump has been keen on a political ally buying the app (e.g., Larry Ellison) and the expiring order to delay Congress’s TikTok ban (September 17) appears to have worked to the Administration’s favor.
That said, the details of the framework are not yet clear. In addition to ownership, a key question will be the app’s algorithm and whether that is handed over to U.S. investors. Perhaps in a sign that it has no plans to do so, the CCP recently amended its list of technologies prohibited from being exported to include “personalized push notification technology based on data analysis.” And while China’s findings on Monday that Nvidia violated its anti-monopoly law also appeared provocative, it was likely a maneuver by President Xi to proactively counteract any domestic criticism he may face over the sale of TikTok.
Finally, the Taiwan issue will continue to be existential for both sides. Secretary Lutnick told CNBC at the end of last week that “a big deal” will be coming soon with Taiwan. How that plays into the China talks remains to be seen. For its part, the Taiwanese side echoed Lutnick’s bullishness, albeit in a more measured tone, saying, “Current negotiations have achieved certain progress, and we are now awaiting the U.S. side to schedule a concluding meeting.”
Russian Sanctions. The Trump Administration is strongly pushing the EU, NATO, and G7 to adopt 100 percent tariffs on India and China to increase pressure on Russia and force President Putin back to the table. It’s unclear if the EU/NATO/G7 will agree as they have slow-walked tariffs to date and their ability to enact them could face legal challenges or pushback from member countries (i.e., Hungary and Slovakia).
But this more aggressive posture by President Trump, as well as efforts by the Administration to clamp down on transshipments, demonstrates the complexity of geopolitics today. At the least, it appears to have restarted talks with the Indians, with trade negotiators meeting this week after August’s scheduled meeting was postponed.
Mexico/USMCA. Meanwhile, Mexico approved its 2026 budget last week, which included raising tariffs on 1,500 imports with countries they do not have formal trade agreements (the main focus, of course, being China). China has very strongly denounced the move while the Trump Administration has been cheering the Mexicans on. The move is a positive development in the context of USMCA renegotiation.
OUTLOOK/ANALYSIS. The outcome of the Bessent/He meetings this week are important in determining if the two sides remain on track towards a summit later this fall between Presidents Trump and Xi. A deal on TikTok augers well, but there are many outside issues as outlined above that could cause the talks to break down. In addition, we did not see movement from the talks on the Panama Canal issue, purchasing agreements, and/or Russian sanctions. Next up is likely to be a determination by the Administration to again extend its Chinese reciprocal tariff pause. We will keep you updated.
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House NDAA Amendments
- Finstad (R-MN) – Amendment No. 5 – Extends and modifies the Annual Report on Military and Security Developments Involving the People’s Republic of China
- Stefanik (R-NY) – Amendment No. 27 – Bans non-US citizens from maintaining, administering, operating, accessing, using, or receiving information about any Department of Defense cloud computing system, Department data, or Department-related data
- Baird (R-IN) – Amendment No. 46 – Directs the Secretary of Defense to brief Congress within 90 days on the effectiveness and feasibility of using pulsed lasers to defend against drone swarms in the near term and missile threats in the medium term
- Barr (R-KY) – Amendment No. 48 – Directs the Department of Defense to assess the national security implications of the reliance on China and other foreign adversaries for the production of shipping containers and to establish a requirement to establish a domestic production facility at an existing Army depot with a consolidated shipping center
- Biggs (R-AZ) – Amendment No. 56 – Prohibits the use of funds to acquire information or communication technology from entities with substantial ownership or control by the People’s Republic of China
- Biggs (R-SC) – Amendment No. 61 – Calls for a study exploring the feasibility of allowing departments and agencies to have critical mineral purchasing and reselling capabilities for the purpose of reducing the bureaucratic burden and increasing the speed of purchasing minerals for projects within those departments and agencies
- Buchanan (R-FL) – Amendment No. 68 – Requires the Department of Defense to report to Congress on the threat of fiber optic-controlled drones to US military installations, operations and personnel. This report should evaluate the use of these drones by foreign adversaries for surveillance and targeting
- Buchanan (R-FL) – Amendment No. 69 – Requires a GAO report to assess vulnerabilities in U.S. supply chains for critical minerals essential to defense manufacturing, including rare earth elements, lithium, cobalt and nickel. The report should identify current sources, evaluate barriers to expanding mining and processing capacity and recommend actions that federal agencies and Congress should take to incentivize domestic production
- Buchanan (R-FL) – Amendment No. 72 – Mandates the Secretary of Defense, in coordination with the Secretary of Commerce, submit a report to Congress that: 1. Identifies the types and estimated number of dual-use technologies developed or manufactured in the United States that have been acquired by entities linked to the Chinese Communist Party over the past 5 years; 2. Describes the primary methods of acquisition; 3. Provides recommendations to strengthen protections against foreign acquisition of dual-use technologies
- Buchanan (R-FL) – Amendment No. 74 – Prohibits the use of foreign social media platforms on all government-issued devices while on military instillations
- Cammack (R-FL) – Amendment No. 80 – Directs GAO to conduct a component-level assessment of the Department of Defense’s reliance on Chinese-sourced materials in munitions, microelectronics, and energy storage systems, and to provide recommendations for alternative sourcing strategies
- Cammack (R-FL) – Amendment No. 81 – Requires the Department of Defense to prioritize partnerships with institutions of higher education conducting research in hypersonics, biotechnology, and artificial intelligence, and to report to Congress within 180 days on existing partnerships in these areas
- Cammack (R-FL) – Amendment No. 85 – Directs the Secretary of Defense to assess vulnerabilities in military medical supply chains, including reliance on China for active pharmaceutical ingredients and medical devices, and report findings to the Armed Services Committees within 180 days
- Dunn (R-FL) – Amendment No. 110 – Requires the Defense Health Agency to conduct a supply chain risk assessment and develop and maintain a list of critical medical products that rely on covered items originating from China
- Evans (R-CO) – Amendment No. 115 – Requires the Under Secretary of Defense for Acquisition and Sustainment to conduct a comprehensive security assessment of non-domestic additive manufacturing equipment and associated software which supplies the defense industrial base
- Fry (R-SC) – Amendment No. 126 – Establishes a permanent magnet traceability pilot program to validate domestic supply chain integrity for rare earths and critical materials, including examples from mine to magnet and from end-of-life recycled products to magnet. The pilot program under which the Department of Defense shall validate the sources of rare earth elements and critical materials used in permanent magnets used by the Department, including sources of recycled rare earth elements and critical materials used in such permanent magnets, to ensure the accuracy of the information reported by contractors providing such permanent magnets to the Department and the integrity of the supply chains for such permanent magnets against foreign adversaries
- Fry (R-SC) – Amendment No. 127 – Requires the Secretary of Defense, acting through the Director of the Defense Logistics Agency, to submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the Department’s efforts to prioritize the recovery of rare earth elements from end-of-life Department of Defense equipment through the Strategic Materials Recovery and Reuse Program, not later than 180 days after the enactment of this Act
- Gosar (R-AZ) – Amendment No. 141 – Requires a report on the sources of rare earth materials and elements extracted, processed, and refined to support new technologies of the DOD
- Gottheimer (D-NJ) – Amendment No. 142 – Requires a briefing on the NATO Procurement and Supply Agency (NPSA) procurement exposure and supply chain risks with respect to China
- Hudson (R-NC) – Amendment No. 157 – Provides funding for advanced drone development for Special Operations and Low Intensity Conflict
- Huizenga (R-MI) – Amendment No. 159 – Requires the Secretary of Defense to compile a report and global mapping of the PRC’s efforts to build or buy strategic foreign ports
- Krishnamoorthi (D-IL) – Amendment No. 178 – Requires the Secretary of Defense to analyze the proliferation of Chinese medical equipment in DOD facilities and other DOD Contexts
- Krishnamoorthi (D-IL) – Amendment No. 180 – Prohibits heads of executive agencies from procuring or operating and federal funds from being used to procure or operate covered unmanned ground vehicle systems that are manufactured or assembled by a covered foreign entity with exemptions in the national interest of the United States
- Lee (D-NV) – Amendment No. 184 – Requires the delivery of a report on DoD’s progress to meeting DFARS Case 2021-D015 (Restriction of Certain Metal Products), which bans the DoD from sourcing magnets from covered entities (e.g., China) over two phases which conclude with a full ban on 1 January 2027
- Moolenaar (R-MI) – Amendment No. 205 – Directs the Secretary of Defense to develop and maintain a classified and prioritized list of high-risk DoD critical infrastructure dependent on materials or components from foreign countries of concern and conduct a comprehensive risk assessment. Requires biennial classified briefings to Congress with findings, strategies, and recommendations to strengthen supply chain resilience and reduce reliance on vulnerable foreign sources
- Moolenaar (R-MI) – Amendment No. 206 – Directs the Department of Defense to establish an initiative to prepare to fully harness the transformative potential of advanced artificial intelligence, modernize adoption plans, assess the national security and defense implications of advanced artificial intelligence, and analyze strategic competition factors relating to the People’s Republic of China’s pursuit of advanced artificial intelligence
- Moore (R-NC) – Amendment No. 207 – Directs the Under Secretary of Defense for Acquisition to prepare a report to be submitted to Congress no later than March 2026. The report must detail the Department of Defense’s (DoD) current supply and future needs for lithium, assessing its use in military electronics, vehicles, weapons, and advanced systems like unmanned vessels and AI data centers. It must also evaluate potential supply chain risks and the feasibility of partnering with commercial industry to secure a stable domestic supply of lithium
- Nunn (R-IA) – Amendment No. 220 – Directs the DOD to conduct an analysis of the tools currently available to combat the impact and threat of adversarial AI capabilities. The rapid development of AI by the CCP has raised concerns over the security of America’s operational security, our cyber networks, and components of our autonomous weapon systems. Taking inventory of the current deterrence measures on hand will allow the DOD to protect the DIB and modernize its cyber response in a more efficient manner
- Nunn (R-IA) – Amendment No. 221 – Prohibits the Department of Defense from procuring, acquiring or utilizing any blockchain network infrastructure originating from a company or individual stemming from an entity or country of concern. Specifically, this bill aims to tackle the CCP’s continued investment in distributed ledger technology
- Nunn (R-IA) – Amendment No. 224 – Directs the Undersecretary of Defense, Acquisitions and Sustainment to develop a spend plan of up to $20 million for the Services’ towards a comprehensive set of advanced manufacturing practices including AI-optimized robotic forming, additive and subtractive manufacturing, and advanced materials and processing practices for hypersonic research and development. Building factories of the future require software-defined, artificial intelligence (AI)-driven, off-the-shelf commercial solutions to carry out different manufacturing operations in consolidated manufacturing platforms, deployable at the point of need
- Nunn (R-IA) – Amendment No. 227 – Amends Section 1248 of the FY22 National Defense Authorization Act (NDAA) by extending and expanding the Department of Defense’s annual assessments of Taiwan’s military readiness, regional allied responses, and U.S. contingency planning in the face of rising CCP aggression
- Nunn (R-IA) – Amendment No. 228 – Directs the Secretary of Defense to establish a strategic defense technology partnership between the rapid acquisition offices of the DOD and the Taiwan Ministry of National Defense. The partnership will collaborate on defense technology objectives, defense industrial base modernization, measures to counter the CCP in the INOPACOM region, and access to new markets for American defense technology companies
- Obernolte (R-CA) – Amendment No. 231 – Directs the Undersecretary for Acquisition and Sustainment to establish procedures that prioritize sourcing from and securing an integrated boron supply chain, from mining, to processing, to advanced material manufacturing, from the U.S.-domiciled, U.S.-based facilities for use in military applications
- Ogles (R-TN) – Amendment No. 234 – Orders a report identifying obstacles to US assistance in strengthening Taiwan’s self-defense capabilities
- Ogles (R-TN) – Amendment No. 235 – Directs the Secretary of Defense to invite Taiwan to participate in RIMPAC exercises
- Panetta (D-CA) – Amendment No. 242 – Directs the Director of the Defense Innovation Unit (DIU) to support the development of low-cost, easily scalable, and rapidly deployable technologies to counter internet shutdowns or limitations on network access abroad, particularly those imposed by adversary countries such as Iran
- Pfluger (R-TX) – Amendment No. 246 – Requires the Secretary of Defense to revoke security clearances for former personnel of the DOD who engage in lobbying activities on behalf of China
- Moolenaar (R-MI) – Amendment No. 26 – Prohibits federal research awards from going to individuals or institutions with affiliations or partnerships with hostile foreign entities, including those listed on U.S. government entity lists (e.g., the Department of Defense 1260H List and the BIS Entity List). Requires applicants to disclose past foreign ties, funding, and activities. Imposes ongoing restrictions on sharing research results with adversaries and mandates congressional notification of any national security waivers
- Schweikert (R-AZ) – Amendment No. 256 – Authorizes the use of artificial intelligence in the weapon inventory system for the Department of Defense, for the purpose of creating accurate inventory records
- Scott (R-GA) – Amendment No. 265 – Prohibits the Secretary of Defense from entering into, renewing, or extending a contract or other agreement for the procurement of organic light emitting diode (OLED) display technologies that are fabricated in a foreign adversary, by a foreign adversary entity, or by a covered OLED display technologies company
- Self (R-TX) – Amendment No. 267 – Encourages the Department of Defense to expand artificial intelligence pilot programs and fielding across mission areas and requires biannual reports to Congress on integration efforts for five years
- Stauber (R-MN) – Amendment No. 276 – Requires the Department of Defense to address our dependence on Communist China for critical minerals
- Stefanik (R-NY) – Amendment No. 277 – Revises Section 1723 of the Rules Committee Print 119-8 to include cameras to the covered list
- Van Orden (R-WI) – Amendment No. 290 – Encourages the President to take such actions as may be necessary to counter Chinese Communist Party efforts to blockade or embargo Taiwan, including by providing training and support to the Taiwan Navy for liquefied natural gas convoy operations. Ensures Taiwan is eligible for U.S. energy security and diversification programs under section 2004 of the European Energy Security and Diversification Act of 2019, including access to liquefied natural gas programs available to European countries
- Wittman (R-VA) – Amendment No. 298 – Requires a report from the Secretary of Defense within 180 days regarding the use of waivers for software security requirements within the Department of Defense