On July 22nd, the U.S. House of Representatives passed a $1.5 trillion FY 2027 defense authorization bill, with $28.6 billion allocated for military construction and family housing. 

The Senate Armed Services Committee, through S.4784, will help set forth policies and funding for the Department of Defense (DoD) programs, activities, and military construction. S.4784 sets aside $50 billion for military construction.

Legislators approved the National Defense Authorization Act (NDAA) HR-8800 by a 216-212 party-line vote. The bill now moves to the Senate, awaiting further debate and voting, with Democrats fighting to lower military spending at a time when White House is slashing funding to social programs. 

The 2027 NDAA significantly increases the country’s unmatched military budget, which was capped at $900 billion in the last fiscal year. 

Military construction (MILCON) helps to build and upgrade vital base facilities, including housing and barracks, airfields, hospitals, and warehouses. These facilities are used by American troops in the country and globally.

The DOD’s program for FY 2026 is one of the largest federal construction programs in the country, with Congress enacting $19.737 billion for MILCON and family housing accounts. It is 4?ove the President’s budget.

Additionally, the Facilities Sustainment, Restoration and Modernization (FSRM) funding adds $18.557 billion in spending for maintenance and renovation of existing buildings.

The MILCON budget has a far-reaching impact beyond just upgrading military facilities. For private contractors, this funding reaches them through contracts issued by the US Army Corps of Engineers (USACE) and the Naval Facilities Engineering Systems Command (NAVFAC).

Unlike other federal contracts, MILCON funds are allocated per project, giving contractors a clear understanding of what will be built, when, and where. 

Top MILCON projects include:

• New barracks at Fort Polk, Louisiana, for $117 million to replace unaccompanied housing with ventilation and moisture control failures.
• $130 million SOF Mission Command Center, $80 million SOF Operational Ammunition Supply Point, and $255 million (phased) SOF Marine Raider Battalion Operations Facilities at Fort Liberty in North Carolina.
• $70 million for a medical center in Bethesda Naval Hospital, Maryland

The FY2026 projects are now entering the procurement phase. USACE and NAVFAC seek bids through PIEE and sam.gov pipelines. Contractors with proper security clearance can bid on these projects.