AIA Addresses Senate NDAA Provisions Restricting U.S. Defense Industrial Base Growth

Arlington, Va. - Aerospace Industries Association (AIA) President and CEO Eric Fanning today responded to the Senate Armed Services Committee after they completed their markup of the Fiscal Year 2027 National Defense Authorization Act. The bill included several provisions that, if enacted, would limit investment into and growth of the U.S. defense industrial base.

"We appreciate Chairman Wicker, Ranking Member Reed, and the Senate Armed Services Committee for their continued leadership on the National Defense Authorization Act and their focus on strengthening America's defense industrial base at a critical moment," Fanning started. "AIA and our member companies share the Committee's goals: expanding the defense industrial base, accelerating innovation, and delivering capability to the field faster.

"However, we have serious concerns with provisions included that will put at risk all their good progress toward rebuilding the defense industrial base," Fanning continued. "Restrictions on capital allocation for both defense and non-defense companies doing business with the Pentagon and sweeping mandates to provide access to sensitive technical data will disincentivize the very investment and innovation the industrial base depends on. Together, these provisions could undermine private investment, slow the pace of innovation, and discourage participation in the defense market by the companies policymakers are trying to attract, like non-traditional and commercial firms and suppliers.

"We appreciate the Committee's work and stand ready to partner on targeted, practical solutions that increase competition, protect national security, and ensure the industrial base can deliver at the speed and scale our warfighters require."

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