President Donald Trump signed the National Defence Authorisation Act for Fiscal Year 2026 on December 18, 2025, in the Oval Office, Washington. The law sets annual appropriations for the Department of War, Department of Energy national security programmes, Department of State, Department of Homeland Security, the Intelligence Community, and other agencies.
Focus on Indo-Pacific and Quad Cooperation
The Act emphasizes expanding U.S. engagement with India and other Quad nations—Japan and Australia—to support a free and open Indo-Pacific and address China’s regional influence. It directs the Secretary of Defence to strengthen alliances and partnerships in the region through military exercises, defence trade, humanitarian aid, disaster response, and maritime security.
Enhancing Defence Industrial Base and Security Initiative
The legislation mandates a security initiative to boost cooperation among defence industrial bases of the U.S. and partner countries in the Indo-Pacific, enhancing capability, workforce, interoperability, and supply chain resilience. Participating countries include India, Australia, Japan, South Korea, the Philippines, and New Zealand.
U.S.-India Nuclear Liability Dialogue
The Act calls for a joint consultative mechanism under the U.S.-India Strategic Security Dialogue to evaluate India’s nuclear liability framework and align it with international norms. The Secretary of State must submit a report within 180 days of enactment and annually for five years.
Defining Allies and Partners
The law defines ally or partner nations to include OECD members, India, and any country designated by the Secretary of State, reinforcing the U.S.’s strategic and defence cooperation framework.
