The US Senate approved a record $900 billion defense package in the National Defense Authorization Act, surpassing the President's request and expected to be signed into law. Germany committed €50 billion to defence, while the UK will unveil new spending plans next year. The spending surge has revived European defence manufacturers and intensified competition for contracts. Anduril's CEO warned that rivals are using aggressive tactics to win lucrative government deals.
US Senate Approves Record $900B Defense Package as Western Allies Ramp Up Military Spending
A chart comparing the US and Chinese share of global military spending.
The US Senate has passed a historic $900 billion defense package — the largest US military spending bill on record — underscoring a broader Western push to bolster armed forces and procurement. The funding is bundled in the National Defense Authorization Act (NDAA) and exceeds the amount requested by President Donald Trump; he is expected to sign the bill into law soon.
Germany has also approved a major defense commitment, allocating €50 billion to military capabilities, and the United Kingdom is set to announce its own defence spending plans next year. Together, these moves are reviving orders for European defence manufacturers and intensifying competition for defence contracts internationally.
Industry Impact
The influx of government funding is prompting higher demand for weapons, surveillance systems, and defence technology. Startup defence-tech firms and established contractors alike are competing for a larger pool of contracts and investment as governments prioritize modernization and readiness.
“Rivals are beginning to 'fight dirty' to secure government contracts,” reported the CEO of defence-tech start-up Anduril to Semafor, reflecting heightened pressure and aggressive tactics in procurement battles.
Analysts say the combination of unprecedented US spending and substantial European commitments could reshape defence supply chains, accelerate R&D investment, and trigger consolidation in some sectors. The NDAA’s final provisions will guide Pentagon priorities for procurement, research, and troop readiness in the coming year.
