FY2026 NDAA: Military Construction and Housing Authorizations

The National Defense Authorization Act (NDAA) for FY2026 authorized funding for the Department of Defense (DOD) military construction and family housing programs, and included policy provisions that may impact the management and oversight of these programs. (DOD is “using a secondary Department of War designation,” under Executive Order 14347 dated September 5, 2025.) The FY2026 NDAA authorized 4.4% more for military construction (MILCON) and family housing than the amount the President requested in his FY2026 budget submission to Congress. The FY2026 NDAA included several provisions that gave DOD expanded authorities for executing military construction contracts. Other provisions may affect the Defense Community Infrastructure Program (DCIP), which is a DOD-run grant program that provides funding for local government entities in communities surrounding military installations to support civilian infrastructure projects that may in some way enhance military readiness. The law also included provisions that may affect the funding and oversight of military housing programs. Among those provisions are repeal of statutory requirements for construction standards intended to reduce risk of terrorist attacks; new authorities giving DOD more flexibility for MILCON contracting; expanded eligibility for grant programs supporting communities surrounding military installations, and additional requirements for DOD’s management of the privatized housing programs. During the legislative process, the Senate-passed version of an NDAA proposed to change the way Congress provides funding for military infrastructure by shifting Facilities Sustainment Restoration and Modernization (FSRM) funding from DOD’s Operation and Maintenance (O&M) accounts into the accounts for MILCON. That proposed change was not included in the version of the legislation that was ultimately enacted.