What You Need to Know About the FY26 NDAA: Cybersecurity, AI, and Innovation

The proposed Fiscal Year 2026 National Defense Authorization Act (NDAA) is more than a budget. It’s a roadmap for how America intends to innovate, secure, and lead in the digital era. By weaving together advancements in cybersecurity, artificial intelligence (AI), quantum computing, and supply chain resilience, this NDAA positions the U.S. to meet today’s challenges while building tomorrow’s opportunities.

For the innovation community—startups, research labs, scale-ups, and investors—the message is clear: the government is opening new doors for collaboration, experimentation, and growth. The NDAA provisions will continue to evolve in the next few months - but here are a few highlights we picked up.

Cyber: Expanding Talent, Expanding Horizons

The NDAA treats cyber talent as a national security priority. Expanded hiring authorities (Sec. 1107) allow DoD to attract top experts from industry and academia, while a comprehensive cyber workforce strategy (Sec. 1601) ensures a sustainable pipeline through 2027. At the same time, new programs make it easier for Guard and Reserve members to continue serving in cyber missions (Sec. 1605, Sec. 1610C), ensuring that valuable expertise stays in the system.

This isn’t just about filling jobs. It’s about growing an ecosystem. Universities, training providers, and tech companies now have the opportunity to help shape the skills and tools that will define the next generation of cybersecurity.

AI: From Potential to Practice

AI takes center stage in this year’s NDAA (and not as an experiment, but as a foundation).

• AI Security Partnership (Sec. 1621): A new government–industry forum for safeguarding AI against threats.
  AI Sandboxes (Sec. 1622): Secure testbeds for experimentation and training, giving startups a chance to showcase solutions.
• AI Model Oversight & Evaluation (Sec. 1623): Establishes a cross-functional team to standardize evaluation of AI models, ensuring consistency in testing, reliability, and bias checks.
• Secure AI Acquisition (Sec. 1627): A procurement framework that makes robust AI security requirements non-negotiable.
• AI/ML Cybersecurity Policy & AI-SBOM (House Sec. 1531): A department-wide AI security policy paired with mandatory AI software bills of materials, enhancing transparency and trust.

Together, these measures create a clearer, more predictable environment for innovators. AI companies that invest early in assurance, transparency, and trust will not only align with DoD standards but also gain credibility in broader commercial and international markets.

Quantum and High-Performance Computing: Scaling the Future

The NDAA updates DoD’s high-performance computing strategy (Sec. 1625) to integrate commercial cloud solutions and accelerate quantum research, while also prioritizing post-quantum cryptographic readiness. 

For cloud providers, quantum startups, and cybersecurity innovators, this is a strong signal: the government is ready to partner on transformative capabilities that will shape the next decade.

Supply Chains: Building Resilience, Creating Opportunity

Supply chain security is no longer treated as a liability; it’s a platform for innovation. Sec. 863 incentivizes contractors to adopt supply chain transparency tools by rewarding them for doing so. Sec. 869 speeds up the qualification of alternate suppliers, creating new opportunities for smaller manufacturers and advanced technology firms.

For companies with solutions in visibility, analytics, or advanced manufacturing, this presents an opportunity to become integral to a stronger, more competitive defense industrial base.

Why It Matters for Innovators

The FY26 NDAA is a forward-looking playbook. It underscores that cybersecurity, AI, and quantum are not just areas of risk; they are engines of resilience, growth, and leadership. By embedding innovation into its strategy, DoD is signaling that it wants to work with industry not just as a supplier, but as a partner.

For the innovation community, the opportunity is enormous:

• Cyber talent pipelines will expand, creating new collaboration models.
  
  
• AI frameworks will set benchmarks that shape global markets.
  
  
• Quantum and cloud adoption will drive joint research and scalable solutions.
  
  
• Supply chain reforms will reward transparency and open doors for new entrants.
  
  

OpenPolicy Insights

At OpenPolicy, we see the FY26 NDAA as both a roadmap and an invitation. The legislation is filled with touchpoints where innovative companies can not only comply but also thrive by shaping standards, piloting solutions, and building partnerships with the government and its allies.

Our role is to help innovators translate policy into opportunity:

• Navigating complexity: We track NDAA provisions, standards, and regulatory shifts to help companies understand how to engage.
• Positioning solutions: We help align technologies with DoD priorities, including cyber resilience, AI assurance, quantum readiness, and supply chain transparency.
• Building bridges and sharing intelligence: We connect innovators with decision-makers, ensuring threat data and best practices flow both ways to shape standards and turn policy into capability.

The NDAA is setting the pace. With the right strategy, innovators can set the standard.

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