Congress Prioritizes AI, Modernization in Defense Funding Bill

Congress issued their technology priorities in the 2025 National Defense Authorization Act. The House and Senate prioritized artificial intelligence and quantum computing, among other emerging technologies.

Here’s a look at some of the technology provisions in the bill that are set to impact the ways that the Defense Department pursues, funds and acquires technology.

AI

The 2025 NDAA aligns with President Joe Biden’s October AI executive order, emphasizing innovation and advancing national interests in AI. The budget calls for a series of AI-enabled applications and systems at DOD, including developing a pilot program to use AI-enabled software to optimize workflows and operations in department depots, shipyards and manufacturing facilities.

Congress took a step toward AI governance by expanding the responsibilities of the Chief Digital and Artificial Intelligence Officer Governing Council established last year. The NDAA also sets forth requirements to “ensure that the budgeting process for programs containing AI includes cost estimates for the acquisition and sustainment of data required to train, maintain or improve the AI.”

The bill also establishes a working group to develop and coordinate an AI initiative among U.S. allies and partners.

Battlefield Modernization

The bill calls for developing new drone capabilities and defending against adversarial drones. Congress calls for requirements for unmanned maritime autonomy architecture and the establishment of “a counter-unmanned aircraft systems task force, to be known as the ‘C-UAS Task Force'” to study the adversarial use of unmanned systems.

“In the modern battlefield, technology and new innovations are crucial,” said Rep. Adam Smith. “We have put a variety of provisions to help move toward [innovation and fielding new technology].”

The bill also calls for cooperation with international partners in the defense of undersea cables and the strengthening of the international supply chain to better protect the production of DOD munitions.

Continuous Authority to Operate

The threat landscape is ever-changing, and the DOD’s cyber systems will need to keep pace with and adapt to new challenges on the battlefield. Part of that effort centers around the push to adopt continuous authority to operate, cutting down on a time-consuming process to get software approved for use within the DOD.

The NDAA authorizes the director of the Defense Innovation Unit to operate a pilot program until 2028 designed to develop “an alternative testing and evaluation pathway to accelerate the testing and evaluation of technologies that have the potential to provide warfighting capabilities to the Department of Defense in the near-term and mid-term timeframes.”

The pilot program will allow the adoption of commercial dual use technologies, technologies that have not been integrated into DOD service, un-fielded technologies and software-based technologies.

Defense Acquisition and CMMC

The Pentagon over the past year has spooled up efforts to speed up tech acquisition and increase work with Silicon Valley partners. The NDAA outlines how DOD is expected to procure existing and future technologies, while ensuring quality and production fit department standards.

The plan recommends strengthening the middle tier of acquisition authorities to expedite and oversee rapid prototyping and fielding of new technology. The bill establishes a cross-functional team that will implement the recommendations put forth by the Commission on Planning, Programming, Budgeting, and Execution Reform in March of this year.

Working with the defense industrial base, the NDAA outlines creating a pilot program to better track the number and amounts awarded to small businesses and non-traditional defense contractors through other transaction authorities.

“It provides new authorities and speeds the artificial intelligence and hypersonics that give us an advantage if in conflict with China,” said Rep. Mike Rogers. “[The NDAA] includes new authorities to retool and revitalize the industrial base to ensure the systems we need to prevail.”

Cybersecurity

The NDAA supports developing a cybersecurity strategy to manage and secure the Joint Warfighting Cloud Capability (JWCC) contract and other multi-cloud environments.

The bill also calls for implementing “cyber tabletop exercises with the defense industrial base,” to locate and then further address gaps in cybersecurity infrastructure, as well as creation of a “dedicated DOD cyber intelligence capability” to support intelligence gathering on cyber threat actors and capabilities.

The NDAA also requires further development of the department’s zero-trust guidance as it applies to “the Internet of Military Things hardware” and makes permanent the authority for the Joint Federated Assurance Center, the DOD group that promotes and enables software and hardware assurance.

As for the upcoming Cybersecurity Maturity Model Certification 2.0 program, the NDAA also requires assessing DOD’s implementation of the framework.

Emerging Technology

The NDAA outlines future DOD priorities for tech on the cutting edge. It delves into the emerging field of biotechnology, directing the department to create a roadmap and biosurveillance strategy while also creating plans to reduce reliance on non-human primates in biomedical modeling and research.

The Defense Advanced Research Projects Agency (DARPA) would establish a Quantum Scaling Initiative to ready the department for the advent of quantum computing. The plan also includes provisions for the department to accelerate the transition of advanced quantum and quantum hybrid computing technology into operational use.

The bill also calls for the research and development of space-based sensing capabilities designed to detect, track and respond to threats and investment in the development of directed-energy weapons as part of a larger effort to develop hypersonic defenses.