On Dec. 10, 2025, the House of Representatives passed a compromise version of the fiscal year 2026 National Defense Authorization Act (NDAA), by a vote of 312 to 112. The legislation includes the BIOSECURE Act, which, if enacted, will overhaul how federal agencies and funding will engage with global biotechnology suppliers. In addition, this version of the NDAA could provide the Pentagon a larger role in biotechnology. The Senate is expected to act before adjourning for the holidays. The NDAA is considered a” must pass” bill.
The BIOSECURE Act
The compromise version preserves the core of the BIOSECURE Act framework which bans federal agencies, grant and loan recipients from using equipment or services from “biotechnology companies of concern.” That category includes companies already listed under the Department of Defense’s (DOD) 1260 H authority, as well as additional companies designated through a new national security review process. The new process will be led by the Office of Management and Budget (OMB).
The legislation specifies a timeline for action:
- OMB must publish the first list of “companies of concern” within a year of enactment and update the list annually.
- OMB then has 180 days to issue implementing guidance.
- The Federal Acquisition Regulation (FAR) must be revised within a year of the issuance of the guidance.
- Prohibitions would then take effect 60-90 days after the FAR changes, with a five-year grandfathering period for contracts, grants and loans already involving affected suppliers.
A provision has been added to prevent compliance conflicts in federal health programs. That provision clarifies that drug manufacturers will remain eligible for the Medicaid Drug Rebate Program participation even if BIOSECURE restrictions prevent them from signing a required federal supply schedule agreement with the Department of Veteran Affairs.
Expanding DOD’s Role in Biotechnology
The NDAA also expands DOD’s role in biotechnology. The legislation directs the department to create a new office dedicated to biotechnology, develop a national security strategy for emerging biotechnologies and increase domestic bio industrial manufacturing.
The legislation requires DOD to establish a Biotechnology Management Office to oversee research, development and acquisition of “broad-based biotechnology capabilities.” The legislation does not provide any new funding streams for the new office, but relies on existing research funding. The legislation also requires the department to develop a comprehensive strategy for assessing the national security implications of emerging biotechnologies and to ensure military support for biotechnological innovation across the services.
In addition, the NDAA would push DOD domestic bio industrial manufacturing capacity for “critical bio manufactured products at commercial scale.” The legislation directs U.S.-based facilities to be built out by competitive awards.
Both the House and Senate previously passed differing versions of the BIOSECURE Act. The Senate included its version as an amendment to their version of the NDAA.