# Congress Negotiates FY2027 Defense Funding

Congress is approaching a compressed FY2027 funding and authorization calendar: the continuing resolution expires **December 11, 2026**, five weeks after the November 3 midterm elections, while the full-year defense appropriations and FY2027 National Defense Authorization Act remain unresolved. The administration is seeking about $1.1535 trillion in discretionary national defense funding plus $350 billion through reconciliation, while budget resolutions under consideration point to a $60 billion defense reconciliation level. The negotiations may also affect commercial acquisition, intellectual and technical data provisions, and supply-chain resiliency, creating uncertainty around defense funding and acquisition timing.

- Contractors should use the competing funding levels to develop budget scenarios for FY2027, including the possibility that appropriations or reconciliation decisions shift after the midterms.
- Companies supporting defense agencies should assess how potential NDAA provisions on commercial acquisition, intellectual and technical data, and supply-chain resiliency could affect future solicitations and contract terms.
- With limited congressional session time before the continuing resolution expires, businesses may need to account for delayed procurement decisions and funding uncertainty in bid schedules and resource planning.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Policy, Grants & Funding
**Published:** October 28, 2026

### Government Entities
- United States Congress (Congress)
- U.S. Department of Defense (DoD)
- House Armed Services Committee (HASC)
- U.S. Senate Armed Services Committee (SASC)
- Senate Defense Appropriations Subcommittee

### Key Quotes
> Anytime you get a big thing like a reconciliation bill, there’s going to be some things that you don’t like, so you have to weigh it out and decide whether there are more good things than bad.
> — Morgan Griffith, U.S. Representative

### Sources
- [
        Legislative procurement priorities on Capitol Hill - Federal News Network](https://federalnewsnetwork.com/podcast/off-the-shelf-podcast/legislative-procurement-priorities-on-capitol-hill) - Federal News Network
- [Defense priorities tied up in lame-duck jumble - Roll Call](https://rollcall.com/2026/10/27/defense-priorities-tied-up-in-lame-duck-jumble) - Roll Call
- [FY 2027 Defense Funding: Potential Post-Midterm Outcomes](https://www.csis.org/analysis/fy-2027-defense-funding-potential-post-midterm-outcomes) - CSIS | Center for Strategic and International Studies