President Trump signed the National Defense Authorization Act (NDAA) in December, appropriating $34.3 billion for the Department of Energy (DOE) National Security Programs. This includes a 29% increase in the National Nuclear Security Administration’s Weapons Activity programs, listed as Atomic Defense activities.

Funding levels within the NDAA reflect the Administration’s goals to accelerate nuclear modernization and development activities. This article provides an overview of key program funding under NDAA Sections 3101 and 4701.

Organizational Reforms and Policy Updates

Funding for these programs and activities prioritizes research and development in national security and defense programs:

• National Nuclear Security Administration: $26B (+4%)  
• Weapons Activities: $24.9B plus $4.8B in mandatory reconciliation funding (+29%)
• Stockpile Management: $5.8B (+11%)
• Stockpile Research, Technology and Engineering: $3.4B (+4.3%)
• Infrastructure and Operations: $3.7B (+18%)
• Nuclear Energy: $160M (+7%)
• Naval Reactors: $2.3B (+0.1%).
• Defense Nuclear Nonproliferation: $2.3B(-4.6%).

Weapons Activities

Weapons Activities received the largest increase, focusing on weapons research and development, production and sustainment/storage projects. These include:

• W80-4 Long Range Standoff (LRSO) cruise missile warhead: $1.2B (+8%) continues the Life Extension Program with full production expected in FY 2027 and program completion around FY 2031.
• B-61 Lifestyle Extension Program (LEP): $49M, a 209% increase for full-scale production activities toward completion in FY 2028.
• W93 Warhead Program: $807M (+77%) funds design definition and cost studies with planned full production unit in mid-2030s.
• Stockpile Services: $3B (+28%) including sustainment, dismantlement and disposition, production operations, and nuclear enterprise assurance activities.
• Plutonium Pit Production: $3.8B supports ongoing efforts at the national laboratories.
• SLCM-N Warheads: $272M for development engineering transition toward initial operational capacity.

Infrastructure and Construction Projects

The NDAA funds energy infrastructure and major construction projects at $3.7B, including these:

• Uranium Processing Facility (UPF) - Y-12 National Security Complex, ongoing construction supporting the W87-1 and W93 programs.
• Savannah River Plutonium Processing Facility (SRPPF) construction to repurpose the Mixed Oxide Fuel Fabrication (MOX) facility with a goal of 90% design completion by December 31, 2026.
• Los Alamos Infrastructure (LAP4) multi-phase subprojects to achieve 30-pit per year capacity.
• Depleted Uranium Modernization to re-establish High Purity Depleted Uranium metal production and modernize radiation case component manufacturing.
• Rapid Capabilities Program replaces the Stockpile Responsiveness Program and accelerates new nuclear weapons development over five years.
• Studies and Assessments: a 117% increase, funds concept assessments for next-generation reentry capabilities, future warhead needs, and design options surrounding hard and deeply buried targets.

 Other Key Changes

In addition to funding increases, the defense spending package includes significant organizational and policy revisions to strengthen NNSA operations, expand acquisition authorities, and clarify mission responsibilities across the nuclear security enterprise. These include:

• Reorganizing Atomic Energy Defense activities and consolidating NNSA authorizations related to military construction and national security. (Section 3111)
• Establishing an Advanced Nuclear Energy Working Group that will oversee the development and deployment of nuclear energy technologies to bolster force readiness and resiliency.
• Replacing the Stockpile Responsiveness Program with a new NNSA Rapid Capabilities Development Office to enhance abilities to adapt to dynamic international security conditions. (Section 3113)
• Clarifying statutory requirements for two-site plutonium pit production at the Los Alamos National Laboratory and the Savannah River Processing Facility (Section 3112)
• Protecting national security labs and weapons production facilities from Unmanned Aircraft. (Section 3114)
• Extending scientific/engineering personnel appointment authority for an additional 10 years, through FY 2036. (Section 3115)
• Clarifying the NNSA role in supporting artificial intelligence research but limiting funding to nuclear security missions and prohibiting the establishment of enduring national artificial intelligence/machine learning (AI/ML) programs outside the nuclear security scope. (Section 3117)
• Mandating expanded use of Other Transaction Authorities (OTAs) and requiring inclusion of facilities construction/repair authorities. (Section 3123); Note: Section 817 also provides for sole source contracts for production under contracts awarded under competitive procurements.
• Requiring the Secretary of Energy to increase efforts to identify optimal disposal pathways and schedules for radioactive waste, including a complex-wide optimization analysis within one year, an integrated disposal plan within 16 months. (Section 3125).
• Classifying employees within the Atomic Energy Defense Activities as national security employees. (Section 3127).

Contractor Takeaways

Multiple contracting opportunities will exist from these NDAA-funded programs. Streamlined procurement and expanded use of OTAs for emerging technologies will increase opportunities for non-traditional startups and tech companies, including small businesses. Infrastructure programs will drive opportunities in architectural, engineering, and design, as well as construction contracting and subcontracting. The DoE Acquisition Forecast lists 928 NNSA opportunities scheduled between February 2026 and January 2028, and the FY 2025-2026 Construction forecast includes 193 projects. Additionally, NNSA provides individual forecasts for its contractor-managed sites. The chart below provides examples of possible energy industry sectors.

 

 

 

 

 

 

 

 

 

 

Potential IT Projects:

Within the IT market, AI research and utilization projects will include predictive maintenance, cybersecurity threat detection and mitigation via machine learning, warhead testing through AI digital simulations and AI-enhanced radiation detection systems. The attached overview provides a snapshot of potential IT opportunities.