AI and Other Technology Investments for DOD in the Budget Reconciliation Bill

On April 27, the House and Senate Armed Services Committees jointly released legislation related to funding for the Department of Defense in the forthcoming reconciliation bill. The proposed funding bill adds an estimated $150B to the DOD budget request for FY 2026, which various sources estimate will be between $886B and $901B. The bill also lists a number of technology investments that will be of interest to industry. Today’s post calls out these investments in the areas of artificial intelligence/machine learning (AI/ML) and other assorted technologies. The specific appropriation lines are listed under the sections where they appear so readers can find them in the bill.

Artificial Intelligence

Significant dollars are earmarked for AI/ML capabilities, including the following in these sections:

Section 20002 Enhancement of DOD Resources for Shipbuilding

• $450M for the application of autonomy and artificial intelligence technology.
• $188M for developing and testing maritime robotic autonomous systems and enabling technologies.
• $174M for developing a Test Resource Management Center robotic autonomous systems proving ground.

Section 20004 Enhancement of DOD Resources for Munitions and Defense Supply Chain Resiliency.

• The Army gets a boost related to its unmanned systems budget in this section, potentially receiving $50M to accelerate the development of one-way attack unmanned aerial systems with advanced autonomy (i.e., likely an AI/ML capability).

Section 20005 Enhancement of DOD Resources for Scaling Low-Cost Weapons into Production

• $25M for the Office of Strategic Capital Global Technology Scout program. This program focuses on procuring commercial solutions from small business partners. Some of the technologies desired by the DOD include AI/ML, cyber security, and sensors.
• $400M for the development and deployment of the Joint Fires Network and associated joint battle management capabilities. Cloud computing features prominently in the DOD’s multi-domain operations construct, as do cyber security-related technology, AI/ML, and the systems integration know-how to get them all working together.
• $400M for expanding advanced command-and-control tools to combatant commands and military departments. Also part of the DOD’s multi-domain construct, these capabilities leverage AI/ML, sensor technology, and cloud computing.
• $124M for improvements to Test Resource Management Center artificial intelligence capabilities.
• $145M for developing artificial intelligence to enable one-way attack unmanned aerial systems and naval systems.
• $250M for advancing the artificial intelligence ecosystem.
• $250M for expanding U.S. Cyber Command’s artificial intelligence lines of effort.
• Section 20006 Enhancement of DOD Resources for Improving the Efficiency and Cybersecurity of the DOD
• $200M for deploying automation and artificial intelligence to accelerate audits of the financial statements of the DOD.

Miscellaneous Technologies

Section 20005 Enhancement of DOD Resources for Scaling Low-Cost Weapons into Production

• $500M for accelerating the development and integration of advanced 5G/6G technologies for military use.
• $25M for testing simultaneous transmit and receive technology for military spectrum agility.
• $1.0B for expanding programs that accelerate the procurement and fielding of innovative technologies. Although the technologies to be fielded are not defined, industry can probably count on them including commercial solutions applied to military challenges.
• $2.0B for expanding the Defense Innovation Unit’s scaling of commercial technology for military use.
• $250M for developing the Test Resource Management Center digital test environment.
• $250M for accelerating the Quantum Benchmarking Initiative.

Congress' reconciliation bill is now expected out around July 4.