Welcome to the latest episode where we break down the most important news and developments from the Department of Defense. This week’s headline: Congress has passed the $895 billion Fiscal Year 2025 National Defense Authorization Act, with $849.9 billion directly for the DoD. That’s more funding than ever aimed at modernizing technology, confronting growing threats from China and Russia, and improving the lives of America’s service members.

This funding comes as the DoD shifts strategic priorities towards the Indo-Pacific region, specifically to deter a possible Chinese invasion of Taiwan by 2027. With China rapidly expanding its navy, Defense officials announced they plan to deploy new unmanned vessels within carrier strike groups as early as next year. The pivot also calls for more resources at America’s own borders and enhanced security of the Panama Canal, underlining a broad change in how defense dollars get allocated.

On the technology front, the Pentagon’s critical technology list is seeing a major trim. Defense leaders emphasize getting cost-effective directed energy weapons and hypersonics scaled up for real battlefield use. Under Secretary Emil Michael explained, “We want the cost disadvantage out,” highlighting the need for affordable and powerful defenses. Michael’s experience in Silicon Valley is steering the DoD’s push for stronger private sector partnerships, especially in AI, where companies are investing hundreds of billions each year.

To tackle cyber threats, the Cybersecurity Maturity Model Certification—CMMC—is undergoing a major overhaul. CMMC 2.0 now streamlines requirements for defense contractors, reducing the bureaucracy and focusing squarely on protecting sensitive information. The revised standards are phased into new contracts this quarter, so businesses working with the DoD will need to be certified soon.

Personnel policy is also changing: a recent memo directs a dramatic reduction in budget for moving service members between assignments—think fewer Permanent Change of Station moves and more stability for military families. By 2030, PCS budgets will have been cut in half, with new plans expected to improve the quality of life for troops and reduce disruptions for spouses seeking employment.

For American citizens, this means a more agile, tech-driven defense posture but also more opportunities in the defense industrial base as the Pentagon works to onboard more suppliers and technicians. Businesses—especially in tech and manufacturing—should look for new opportunities and requirements as DoD reforms acquisition. Innovations driven by public-private partnerships may trickle down to the civilian market faster than before.

State and local governments can expect more coordination as defense priorities shift domestically and globally. Internationally, these changes send a clear message: the U.S. is doubling down on the Indo-Pacific while updating alliances and ramping up support for Ukraine, including the recent approval of air-delivered munitions sales there.

If you’re a defense contractor, check out CMMC 2.0 requirements now. Military families, keep an eye on personnel updates for greater geographic stability. Anyone interested in defense innovation or policy can engage via DoD’s social media channels and public comment periods as new policies roll out.

Watch for upcoming deployment of unmanned vessels, AI-enabled defense systems, and more funding opportunities for American innovators. To follow the latest, visit the Senate Armed Services Committee website, DoD’s official Twitter @DoDCTO, and stay tuned for public notices on defense.gov.

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