![handle is hein.crs/govejge0001 and id is 1 raw text is: b\Congressional ____
~ Research Service
FY2023 NDAA: National Defense Stockpile
October 31, 2022
Congress is considering provisions in the House and Senate-committee versions of the Fiscal Year 2023
National Defense Authorization Act (FY2023 NDAA) that would make changes to the National Defense
Stockpile (NDS), a department of Defense (DOD)-administered reserve of critical materials. The House-
passed (H.R. 7900) and Senate Armed Services Committee (SASC)-reported (S. 4543) FY2023 NDAA
bills contain provisions which would expand NDS management authorities, introduce new planning and
reporting requirements, and authorize the largest new appropriations for material acquisitions in more
than 30 years. The Senate is considering the stockpile provisions of S. 4543 as part of S.Amdt. 5499, a
complete substitute amendment to H.R. 7900. The Senate is also considering some stockpile-related
amendments to S.Amdt. 5499.
Background
Title 50, Section 98a, of the US. Code establishes the NDS to decrease and to preclude, when possible, a
dangerous and costly dependence by the United States upon foreign sources or a single point of failure for
[critical materials] in times of national emergency. In a similar manner to other U.S. stockpile programs,
the NDS acquires and retains materials for use by critical civilian and defense manufacturers when
supplies are commercially unavailable. The stockpile also tracks the availability of rare materials used in
the manufacture of products that include munitions, batteries, laser equipment, and satellite components.
According to the Strategic and Critical Materials 2021 Report un Stockpile Requirements, the NDS
inventory contains stocks of 55 materials valued at about $888 million.
The President has authority over the NDS, but per 50 U.S.C. O98h-7, may designate another federal
official to exercise management responsibilities. Currently, the Under Secretary of Defense for
Acquisition and Sustainment (USD [A&S]) is the designated NDS Manager; additionally, the Defense
Logistics Agency (DLA) Strategic Materials division exercises operational oversight. The NDS funds its
annual operations and new acquisitions with the National Defense Stockpile Transaction Fund, a
revolving fund that receives money from multiple sources including appropriations and proceeds from the
sale of surplus inventory. In FY2022, Congress appropriated $125 million for the NDS, the first new
appropriation in three decades.
Congressional Research Service
https://crsreports. congress.gov
IN12041
CRS INSIGHT
Prepared for Members and
Committees of Congress](ViewImageLocal?handle=hein.crs/govejge0001&div=1&collection=&method=preview&ext=.png&size=3)
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