House Passes $900 Billion Defense Bill With Pay Hikes, Troop Mandates, And DEI Cuts
The U.S. House of Representatives has approved a comprehensive defense policy bill, authorizing a staggering $900 billion for military programs, including provisions for a pay raise for troops, among others.
Pay Hikes, Troop Mandates
The House passed the National Defense Authorization Act (NDAA) on Wednesday with a 312-112 vote. The bill, which typically garners bipartisan support, is seen as a significant move amid the growing tensions between the Republican-led Congress and the Trump administration over military management.
The legislation provides a 3.8% pay increase for many service members, effective January 1. It also mandates upgrades to military bases and housing. Service members with families will receive this raise, along with hiked monthly allowances from $250 to $400 per month when deployed or separated from their families for 30 days or longer.
The legislation requires the Pentagon to keep at least 76,000 troops and key equipment in Europe, ensuring consultation with NATO allies, and sets a minimum of 28,500 U.S. troops in South Korea.
The bill also proposes cutting Diversity, Equity, and Inclusion (DEI) programs and offices.
House leadership kept the vote open over an hour as Speaker Mike Johnson (R-La.) persuaded four GOP members to switch from "no" to "yes," with Rep. Thomas Massie (R-Ky.) remaining the sole Republican opposing the rule.
On Wednesday, Rep. Thomas Massie also introduced legislation to withdraw the U.S. from NATO, citing it as a “Cold War relic.” This move has intensified the internal Republican debate over the alliance.
Defense Stocks Soar Amid Policy Boost
The passing of this bill comes at a time when the U.S. is re-evaluating its global military commitments. Also, the defense sector is surging due to U.S. policy, global geopolitical risks, and increased budgets. Under Trump, a rearmament cycle began, highlighted by the July 4 "One Big Beautiful Bill Act," which injected $156.2 billion into defense, the Pentagon's largest boost in over a decade.
On a year-to-date basis, the iShares U.S. Aerospace & Defense ETF (BATS:ITA) and the Global X Defense Tech ETF (NYSE:SHLD), surged 41.13% and 72.98%, respectively, outperforming the Vanguard S&P 500 ETF (NYSE:VOO) and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) at 17.62% and 23.01% gains, each, for the same period, as per data from Benzinga Pro.
Meanwhile, the stocks in focus are Lockheed Martin Corp. (NYSE:LMT), RTX Corporation (NYSE:RTX), and General Dynamics Corporation (NYSE:GD), returning 2.48%, 23.21% and 24.07%, respectively, for the past 6 months.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.