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              Congressional                                                      ____
           ~   Research Service






FY2024 NDAA: Defense Industrial Base Policy



Updated January 8, 2024


Background

The defense industrial base (DIB) is the network of organizations, facilities, and resources that supplies
the U.S. government-particularly the Department of Defense (DOD)-with materials, products, and
services for defense purposes. The DIB is large and complex, encompassing private and public entities
engaged in activities ranging from basic research to the assembly and delivery of complete weapons
systems (for more information, see CRS Report R47751, The US. Defense Industrial Base: Background
and Issues for Congress). Given its role in enabling military operations, the DIB tends to receive
considerable attention from Congress, particularly as part of the annual defense authorization and
appropriation process.
The House and Senate considered an array of DIB-related provisions in their respective bills for a
National Defense Authorization Act for Fiscal Year 2024 (FY2024 NDAA; the House bill was designated
H.R. 2670 and the Senate bill was designated S. 2226). The enacted FY2024 NDAA (P.L. 118-31)
modifies and establishes numerous industrial base programs and policies. Table 1 summarizes key
provisions from H.R. 2670 (House-engrossed), S. 2226 (Senate-engrossed), and P.L. 118-31 (enacted).

         Table  I. Selected Defense Industrial Base Provisions in the FY2024 NDAA
                      Selected provisions from H.R. 2670, S. 2226, and P.L. I 18-31


House-passed (H.R. 2670)


Senate-passed (S. 2226)


Enacted (P.L. 118-31)


Investments and Incentives


Sec. 853 would direct DOD to
establish a public-private partnership
pilot program that would create
incentives (including loan guarantees)
for private equity investment in small
or nontraditional defense contractors.


Sec. 831 in S. 2226 is similar to Sec.
853 in H.R. 2670.


                                                                Congressional Research Service
                                                                  https://crsreports.congress.gov
                                                                                     IN12221

CRS INSIGHT
Prepared for Members and
Committees of Congress


Not adopted.

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