House passes NDAA that excludes AI state‑preemption and CBDC ban
The House passed a roughly $900–901 billion NDAA 312–112 after a razor‑thin 215–211 rule vote, advancing a package that excludes provisions preempting state AI regulation and a ban on a U.S. central bank digital currency (CBDC). Conservatives threatened revolt over those omissions, and Speaker Mike Johnson secured support with last‑minute promises to pursue a CBDC ban and other measures later; the bill includes an AI Futures Steering Committee, outbound investment screening measures and drops a bipartisan military "right to repair" mandate. After Congress twice rejected AI preemption language, President Trump signed an executive order seeking to preempt state AI laws administratively, setting up likely legal challenges.
📌 Key Facts
- The House passed the fiscal-year NDAA with an approximately $900–901 billion topline; the rule to consider the bill narrowly passed 215–211 and final passage was 312–112.
- The enacted House package excludes provisions that would preempt state AI laws and also omits a prohibition on a U.S. central bank digital currency (CBDC).
- The NDAA establishes an "Artificial Intelligence Futures Steering Committee" charged with long-range AI policy recommendations.
- The package includes a range of other defense and policy measures — outbound investment screening, bans on certain DoD contracts with China-linked biotech/genetic sequencing firms and components, authority to use troops at the border, DEI prohibitions, a 3.8% troop pay raise, a maritime-strike footage oversight penalty, and academy athletics policy — among other items.
- Conservative opposition centered on the missing CBDC ban and the absence of anti‑abortion provisions, threatening a GOP revolt; multiple conservatives (including Reps. Chip Roy, Marjorie Taylor Greene, Michael Cloud, Greg Steube, Eric Burlison, Tim Burchett and Keith Self) expressed opposition or reservations.
- Speaker Mike Johnson secured the rule and final passage with last‑minute promises — including pushing to attach a CBDC ban to the next appropriations bill in late January, a future vote to ban members of Congress from trading individual stocks, and a floor vote on Rep. Marjorie Taylor Greene’s Protect Children’s Innocence Act — and held the rule vote open for over an hour to win support.
- Vote dynamics: several Republicans (Anna Paulina Luna, Marjorie Taylor Greene, Tim Burchett and Lauren Boebert) flipped to vote "yes" on the rule, while Rep. Thomas Massie remained the lone GOP "no" on the rule; some conservatives nonetheless signaled they would oppose final passage.
- A bipartisan "military right to repair" mandate was stripped from the final bill; the enacted compromise instead requires DoD to audit contracts for missing technical data rights and recommend fixes to Congress — a change criticized by co‑authors Sen. Elizabeth Warren and Sen. Tim Sheehy, watchdogs (GAO, POGO), and blamed in part on lobbying pressure.
📊 Relevant Data
In 2024, operation and maintenance accounted for 38 percent of US military spending.
Budget Basics: National Defense — Peter G. Peterson Foundation
Since FY 2015, the Army's maintenance costs increased for 9 of the 11 ground vehicles reviewed by GAO.
Important New GAO Report on DoD Weapon System Sustainment — Defense Acquisition University
In 2024, the defense sector spent approximately $150 million on lobbying in the United States, with Misc Defense at $75 million, Defense Aerospace at $58 million, and Defense Electronics at $17 million.
Defense Sector Summary — OpenSecrets
In 2025, the unemployment rate for Black Americans reached 7.2% in July, compared to the national average of 4.2%.
The Rising Unemployment Rate Among Black Workers: A Warning Sign of Broader Economic Instability — AAACDFI
AI tools ranked white-associated names higher than Black-associated names 85% of the time in resume screening.
AI tools show biases in ranking job applicants’ names according to perceived race and gender — University of Washington
In the US military, 30.8% of personnel identify with racial minority groups, and 17.4% are Hispanic or Latino.
Demographic Profile of the US Military Community — Veterans Breakfast Club
Black men in the Air Force's junior enlisted ranks are 86% more likely than their white counterparts to face nonjudicial punishment or court-martial.
Black junior enlisted likelier to face punishment than white airmen — Air Force Times
📊 Analysis & Commentary (1)
"The piece argues that while MAGA and a pro‑tech conservative bloc have converging interests—especially around federal preemption and anti‑censorship—any alliance will be opportunistic and unstable and risks regulatory capture and public harms if pursued without safeguards."
📰 Sources (9)
- The final NDAA dropped a bipartisan 'military right to repair' mandate that would have required defense contractors to provide DoD the technical data needed for in‑house repairs.
- Sens. Elizabeth Warren and Tim Sheehy, co‑authors of the provision, publicly criticized its removal despite support from the White House and service secretaries.
- A House Armed Services Committee spokesperson said the enacted compromise requires DoD to audit contracts for missing data rights and recommend fixes to Congress, rather than mandating data delivery now.
- GAO has warned lack of technical data access drives higher sustainment costs; watchdog POGO called the compromise insufficient.
- Sources cited lobbying pressure on Armed Services leaders to drop the stronger language.
- After Congress twice rejected AI preemption language (including in the NDAA), Trump issued an EO to achieve preemption administratively.
- The EO sets up anticipated legal challenges from states and intra‑GOP conflict over federal preemption of state AI rules.
- Speaker Mike Johnson secured the NDAA rule by making last‑minute promises, including to 'go to war' to attach a CBDC ban to the next appropriations bill due in late January.
- Rep. Anna Paulina Luna says she and Johnson spoke directly with Secretary of State Marco Rubio, who vowed to shut down alleged NGO funding to the Taliban.
- Johnson promised a future vote to ban members of Congress from trading individual stocks, per Luna.
- Rep. Marjorie Taylor Greene flipped her vote after Majority Leader Steve Scalise promised a floor vote next week on her Protect Children’s Innocence Act.
- Rule vote dynamics: Luna, Greene, Tim Burchett and Lauren Boebert flipped to 'yes'; Thomas Massie remained the lone GOP 'no'; Johnson held the vote open for just over an hour.
- House passage vote 312–112; rule narrowly passed 215–211.
- Affirms exclusion of AI state‑preemption and CBDC ban in the enacted House package.
- Details outbound investment screening regime and bans on DoD contracting with Chinese biotech/genetic sequencing firms and certain China-linked components.
- Confirms the overall ~$900B topline and House vote timing while outlining additional included measures (border troop use authority, DEI prohibitions, 3.8% pay raise).
- Highlights retention of the maritime‑strike footage oversight penalty and inclusion of academy athletics policy.
- Conservatives are publicly rebuking Speaker Mike Johnson over the NDAA’s exclusion of the Anti‑CBDC Surveillance State Act that he had promised to attach in July.
- Rep. Chip Roy says he will oppose final passage (while giving limited grace on the rule); Reps. Marjorie Taylor Greene, Michael Cloud and Greg Steube also plan to vote against the bill; Rep. Keith Self demanded leadership 'fix' the bill immediately.
- House GOP leadership is uncertain the rule can pass and is considering bringing the NDAA under suspension (requiring two‑thirds support) if the rule fails; dozens of House Democrats are expected to back the legislation.
- House Rules Committee advanced the NDAA Tuesday night, setting up a House floor debate and vote Wednesday.
- Multiple conservatives (Reps. Eric Burlison, Tim Burchett, Keith Self, Michael Cloud) say they are undecided on the procedural rule vote; Rep. Greg Steube voiced process frustrations.
- Opposition centers on the omission of a central bank digital currency (CBDC) ban and the absence of anti-abortion provisions.
- With a razor-thin majority, Speaker Mike Johnson can lose only two GOP votes on the rule, putting passage at risk.
- Final NDAA does not include provisions preempting state AI laws.
- Final NDAA also excludes a prohibition on a U.S. central bank digital currency (CBDC).
- Creates an 'Artificial Intelligence Futures Steering Committee' for long-range AI policy recommendations.