The U.S. House of Representatives on Thursday approved a fiscal year 2026 defense appropriations bill that would provide roughly $839 billion in funding for the Department of Defense, moving the measure to the Senate for further consideration ahead of a late-January deadline.
The legislation, part of a broader appropriations package, passed by a wide margin and includes about $8.4 billion more than the Pentagon’s original budget request, reflecting congressional priorities for military modernization and readiness. The bill is designed to fund defense operations and procurement through the end of September, when the current fiscal year expires.
The bill would invest in a range of defense priorities, including procurement of new weapons systems, research and development, and service member pay, while also restoring or increasing funding for programs such as next-generation aircraft, submarines, and other capabilities beyond the Defense Department’s initial proposal.
“Lawmakers voted 341-88 on a largely bipartisan basis to push forward the defense budget, which was coupled with FY26 spending for several other departments,” Breaking Defense reported.
The bill includes funding increases for several major programs and priorities:
• Shipbuilding and Navy modernization: The legislation funds additional submarines and surface vessels beyond the administration’s request, reflecting congressional concern about fleet readiness and competition with China.
• Air Force and space programs: Lawmakers boosted funding for next-generation aircraft, space-based missile warning systems, and classified national security space programs.
• Missile defense: The bill expands funding for homeland and theater missile defense systems, including interceptors and radar upgrades.
• Research and development: Additional resources are directed toward hypersonic weapons, artificial intelligence, autonomous systems, and cyber capabilities.
• Service member compensation: The measure includes funding to support a pay raise for uniformed personnel and expanded housing and quality-of-life programs.
• Munitions and stockpiles: Congress increased funding for precision-guided munitions, artillery shells, and missile production to replenish inventories depleted by overseas operations and allied support.
House lawmakers approved the measure as part of a larger set of spending bills intended to keep the federal government funded and avoid a partial shutdown once temporary funding expires. The Senate, which is scheduled to return next week, must pass the legislation and send it to the president before the Jan. 30 deadline to prevent gaps in federal funding.
House leaders emphasized bipartisan support for robust defense funding, while some members expressed concern that the totals still fall short of what military leaders have identified as necessary for addressing global security challenges. Congressional appropriators said they remain open to further adjustments as the bill moves through the Senate, which is currently out of session but will return next week.
Meanwhile, the Internal Revenue Service confirmed this week that the one-time $1,776 “Warrior Dividend” paid to more than 1.5 million U.S. military service members in December 2025 will not be subject to federal income tax, allowing recipients to keep the full amount.
In an IRS and Treasury Department statement, officials said the payment qualifies as a “qualified military benefit” under U.S. tax law, which excludes certain military allowances from taxable income. As a result, service members who received the bonus do not need to include it as gross income on their federal tax returns.
The Warrior Dividend was announced by President Donald Trump on Dec. 17, 2025, and distributed ahead of the Christmas holiday. The payment was intended to recognize military service and to commemorate the 250th anniversary of the U.S. military’s founding. Pentagon officials described it as a supplemental basic allowance for housing and said it was funded through appropriations in the One Big Beautiful Bill Act enacted in 2025.
Pentagon Press Secretary Kingsley Wilson said the tax-free status “places $1,776 directly in the hands of our warfighters and their families,” emphasizing the department’s effort to support service member quality of life. Secretary of War Pete Hegseth also noted that the payment reflects the nation’s commitment to military personnel and their families.
