U.S. Sens. Marsha Blackburn (R-TN) and Jacky Rosen (D-NV) recently joined U.S. Reps. Chrissy Houlahan (D-PA) and Pat Fallon (R-TX) in introducing legislation that seeks to bolster advanced defense capabilities.
The lawmakers recently detailed the Investing in American Defense Technologies Act, noting it establishes a federal public-private partnership to support and invest in American defense-centric small businesses producing advanced capabilities that included hypersonics, space, and autonomous systems.
Additionally, the legislation would aid cutting-edge defense technology production and place the country in a more competitive space with adversaries like China.
Bill provisions include addressing the lack of available private capital supporting defense-focused small businesses, which the lawmakers maintain stunts growth and innovation in the field; remedying defense industrial base small businesses shrinking by more than 40 percent over the last 10 years; and accelerating production and acquisition of advanced capabilities for national security by creating incentives for private capital to invest in small businesses.
“This bipartisan legislation will improve the acquisition of cutting-edge technology for national defense and security,” Blackburn said. “It encourages private capital to invest in small businesses that have traditionally been unable to be a part of producing equipment for our country’s armed forces.”
Houlahan said strategic competition with adversaries remains a concern for American security.
“We risk falling behind due to the Department of Defense (DoD)’s challenges in scaling its work with private companies outside the agency, which stems from a lack of available capital,” Houlahan said. “This bipartisan and bicameral legislation aims to solve this problem by creating the Advanced Technology Investment Incentive Program, which incentivizes private defense companies to work with the DoD by limiting risk through a fund guarantee.