Pentagon Investment Office Would Expand Reach With Funding Boost

May 26, 2026, 9:15 AM UTC

The Pentagon’s shift from a buyer and regulator of military products toward private sector investment would get a boost if there’s a funding increase for a credit program targeting more than 30 critical national security industries and that has provided $1.25 billion in direct and conditional financing to date.

The Defense Department earlier this year requested $20 billion for the Office of Strategic Capital in fiscal 2027, compounding the $1.5 billion funded for OSC and related critical technology under last year’s Republican tax-and-spending megabill (H.R. 1; BGOV Bill Analysis).

A second party-line budget reconciliation bill this summer ...

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