DEMAND Act of 2026

119th Congress Introduced by Darrell Issa and 3 co-sponsors

The act requires DoD to include projected foreign military sales demand in planning and production decisions to expand capacity, stabilize suppliers, and drive investments.

Introduced in House

Summary of: DEFENSE EXPORT MODELING ALIGNMENT FOR NATIONAL DEFENSE ACT OF 2026 (DEMAND Act of 2026)

Purpose and intent

The bill aims to improve the U.S. defense industrial base planning by requiring the Secretary of Defense to incorporate projected demand for foreign military sales (FMS) into current and future planning documents.

By formalizing FMS demand in planning, the Act seeks to better align production, capacity, and investment with anticipated foreign defense sales activities.

Key provisions and changes

Inclusion of FMS demand in planning and assessments (Section 2, general provisions):
The Secretary of Defense must include projected FMS demand, including any FMS in progress, into:

Industrial base assessments conducted by the DoD
Munitions production planning documents
Sustainment planning for major defense acquisition programs (as defined by 10 U.S.C. § 4201)
Secretary’s decisions on production rate increases and capacity expansion for defense articles (as defined in the Foreign Assistance Act of 1961, 22 U.S.C. § 2403)

Objectives for the defense industrial base (Section 2, subsections):
While incorporating FMS demand, the DoD should strive to:

Expand overall production capacity
Stabilize critical suppliers and other parts of the defense industrial base
Incentivize capital investment in critical production lines

Who/what is affected

Executive branch: Department of Defense (DoD) is required to integrate FMS demand into planning at multiple levels (base assessments, production planning, sustainment, and capacity decisions).

Defense industrial base: Manufacturers, suppliers, and contractors involved in producing, maintaining, and expanding defense articles and technologies could be influenced by a more FMS-aware planning framework.

Policy and procurement processes: DoD decision-making on production rates, capacity investments, and sustainment plans may reflect projected FMS demand.

Procedural and timeline aspects

Introduction and referrals: Introduced in the House on August 20, 2026. Referred to the Committee on Armed Services and, in addition, to the Committee on Foreign Affairs for consideration of provisions within their jurisdiction.

No specific dates or implementation timeline are provided in the text available; the bill directs the DoD to begin integrating FMS demand into listed planning documents and processes as part of its ongoing planning activities.

Practical implications and potential impacts

May improve accuracy of long-range capacity planning and prevent shortfalls in defense production by anticipating FMS-related demand.

Could stabilize suppliers by signaling clearer demand signals tied to foreign sales, potentially encouraging investment in critical production lines.

Might influence budgeting and resource allocation within the DoD and affecting timelines for production rate adjustments and capacity expansions.

The focus on sustainment planning ties foreign sales to lifecycle support, potentially improving readiness and consistency across programs with international customers.

Sponsor and support

Primary sponsors: Reps. Jackson (TX), McCormick, Messmer, Issa, Van Orden.

Co-sponsors: Rich McCormick, Darrell Issa, Derrick Van Orden, Ronny Jackson.

If you’d like, I can compare this bill to related statutes or provide a brief risk assessment of potential implementation challenges.