Overview of the National Defence Authorisation Act for Fiscal Year 2026
US President Donald Trump has signed into law a defence policy bill aimed at enhancing America's defence alliances and partnerships, particularly with India, to promote a free and open Indo-Pacific region.
Key Objectives of the Act
- Engagement with India: The Act emphasizes broadening the US engagement with India through the Quadrilateral Security Dialogue (Quad), an initiative set up in 2017 comprising India, the US, Japan, and Australia to counter China's influence in the Indo-Pacific.
- Strategic Competition with China: Strengthening US alliances in the Indo-Pacific to maintain a strategic advantage over China.
- Defence Industrial Base: The Act aims to bolster the US and allied defence industrial bases by enhancing capability, capacity, and workforce, including improved supply chain security and interoperability.
Initiatives and Mechanisms
- Security Initiative: Establishment of a security initiative to enhance cooperation among the US and allied countries' defence industrial bases in the Indo-Pacific.
- Nuclear Liability Rules: A joint consultative mechanism between the US and India to assess nuclear liability rules and align them with international norms, facilitating peaceful nuclear energy cooperation.
Reporting and Evaluation
The Secretary of State is required to submit a report on the joint assessment of nuclear liability rules within 180 days of enactment and annually for five years.
Partner Nations
The Act defines an "ally or partner nation" as any country that is a member of the Organisation for Economic Cooperation and Development, India, or any country designated by the Secretary of State.
