S.Amdt. 3545

This amendment, submitted by Ms. Hirono, aims to replace section 849A of bill S. 2296 to change how the Defense Industrial Base Fund is used. Its primary purpose is to provide the Secretary of Defense with specific authorities to create, protect, and expand the domestic industrial base to support national security.

What it adds or changes:

• Eligible Uses: It lists specific areas where funds can be used, such as microelectronics, critical minerals, unmanned vehicles, manned aircraft, and shipbuilding. It also allows for the recycling of end-of-life equipment to get strategic materials.

• Restrictions: The Secretary is prohibited from using these authorities in covered countries, which are defined as China, Russia, Iran, and North Korea.

• Financial Incentives: The amendment allows the use of grants, contracts, subsidies, and purchase commitments to encourage the private sector and small-to-medium entities to develop national security capabilities.

• Industrial Support: The Secretary can procure and install equipment in both government-owned and privately-owned facilities to improve production processes.

• Accountability: It requires the Secretary to submit an annual report to congressional defense committees evaluating the investments and their effectiveness, as well as a report on how these activities coordinate with other defense industrial base efforts.