House Approves Fiscal 2026 Defense Funding Bill With Strong Bipartisan Support

The U.S. House of Representatives on Thursday overwhelmingly passed a defense appropriations bill for fiscal year 2026, clearing the way for roughly $839 billion in funding for the Department of Defense and sending the legislation to the Senate as lawmakers race toward a late-January funding deadline.

The measure, which is part of a broader package of annual spending bills, exceeds the Pentagon’s original budget request by approximately $8.4 billion. Supporters of the legislation say the additional funding reflects congressional priorities aimed at strengthening military readiness, accelerating modernization, and addressing emerging global threats.

The defense bill is designed to finance military operations, personnel costs, and procurement through the end of the fiscal year in September. Its passage marks a significant step in Congress’s effort to avoid a partial government shutdown once the current temporary funding measure expires.

Lawmakers approved the bill by a vote of 341–88, demonstrating broad bipartisan agreement on the need for robust defense spending. The legislation was advanced alongside funding measures for several other federal departments, according to defense policy outlet Breaking Defense.

Expanded Investment Across Key Defense Areas

The bill directs increased funding to a wide range of military priorities, many of which go beyond what the Defense Department initially proposed. Congressional appropriators said the changes were made to address long-term strategic challenges, particularly growing competition with China and Russia.

Among the most significant funding areas are naval expansion and shipbuilding. The legislation allocates money for additional submarines and surface ships beyond the administration’s request, reflecting concern among lawmakers about fleet size, readiness, and the Navy’s ability to operate in contested regions.

Air Force and space programs also received notable funding boosts. The bill increases investment in next-generation aircraft, missile warning satellites, and classified space-based national security initiatives. Lawmakers argued these programs are critical for maintaining air and space superiority in future conflicts.

Missile defense remains another focal point. The legislation expands funding for both homeland and regional missile defense systems, including interceptors and radar upgrades designed to counter evolving threats.

Focus on Innovation and Readiness

In addition to traditional weapons systems, the bill places a strong emphasis on research and development. Congress increased funding for emerging technologies such as hypersonic weapons, artificial intelligence, autonomous platforms, and cyber capabilities. Supporters say these investments are essential to ensuring the U.S. military remains technologically competitive in the coming decades.

The legislation also addresses munitions and weapons stockpiles, increasing funding for artillery shells, precision-guided munitions, and missile production. These increases are intended to replenish inventories that have been strained by overseas operations and U.S. support for allies.

Service members are another major focus of the bill. Funding is included to support a pay raise for uniformed personnel, along with expanded housing assistance and quality-of-life initiatives. Lawmakers from both parties emphasized the importance of improving compensation and living conditions as a way to boost recruitment and retention.

Senate Action Still Required

While House leaders praised the bill’s passage, the measure must still clear the Senate before it can be signed into law. The Senate is expected to return to Washington next week, leaving lawmakers with a narrow window to act before the January 30 deadline to prevent funding disruptions.

Some members of Congress have argued that even with the increases included in the bill, defense spending may still fall short of what military leaders say is necessary to meet global security demands. Appropriators indicated they remain open to further revisions as the legislation moves through the Senate.

IRS Confirms Tax-Free Military Bonus

Separately, federal officials confirmed this week that a one-time $1,776 payment issued to more than 1.5 million U.S. service members in December 2025 will not be subject to federal income tax.

The Internal Revenue Service and the Treasury Department said the payment qualifies as a “qualified military benefit” under federal tax law, meaning recipients do not need to report it as taxable income on their federal returns.

The payment, known as the “Warrior Dividend,” was announced by President Donald Trump in mid-December and distributed ahead of the Christmas holiday. It was intended both as a recognition of military service and as a commemoration of the 250th anniversary of the founding of the U.S. military.

Pentagon officials described the dividend as a supplemental housing-related allowance funded through appropriations included in the One Big Beautiful Bill Act passed in 2025.

Pentagon Press Secretary Kingsley Wilson said the tax-free status ensures the full amount goes directly to service members and their families. Secretary of War Pete Hegseth added that the payment reflects a broader commitment to supporting those in uniform and acknowledging their role in national defense.

As the defense spending bill heads to the Senate, congressional leaders say the coming days will be critical in determining whether lawmakers can finalize a funding agreement before the deadline and avoid disruptions to federal operations.

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