Recently, the Department of Defense (DoD) took a significant step to support contract opportunities for VOSBs, reaffirming its commitment to entrepreneur-veterans in the federal contracting environment. 

The DoD presented an amendment in the discussions on the 2026 National Defense Authorization Act (NDAA) to establish a VOSB participation goal in DoD contracts, which advocates believe will increase access to and affordability of the procurement process.

This legislative move is an important step forward in institutionalising support mechanisms to acknowledge veterans as indispensable contributors to the defense industrial base. 

The DoD is seeking to institutionalize targets for participation in defense contracting, thereby giving veteran-owned firms more frequent opportunities to compete for and win contracts appropriately aligned with their competencies and capacities. Experts believe this amendment could have a follow-on effect for other federal organizations considering similar actions.

Experienced entrepreneurs and advocacy organizations responded positively, and they are hopeful that the provision will allow more veteran-owned businesses to be successful in federal contracts. This action is in addition to already established federal grant and business development programs, focusing on supporting veterans. Cities like Fort Worth, Texas, have started similar pragmatic grant programs to help veterans and other disadvantaged individuals grow small businesses.

Congress is currently reviewing the amendment and may make further improvements before passing it. Nevertheless, it puts veteran-owned businesses in a good position for involvement in the important defense sector and contributes to economic opportunity for veterans while supporting national security interests.