H.R. 7323

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7323 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7323

To require the Secretary of Defense to establish a network of regional 
hubs to foster innovation, collaboration, and rapid development of 
defense-related technologies, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 3, 2026

Mr. Bell (for himself, Ms. Ross, Mr. Hudson, and Mr. Messmer) 
introduced the following bill; which was referred to the Committee on 
Armed Services

_______________________________________________________________________

A BILL

To require the Secretary of Defense to establish a network of regional 
hubs to foster innovation, collaboration, and rapid development of 
defense-related technologies, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Defense Technology Hubs Act of 
2026''.

SEC. 2. PURPOSE.

The purpose of this Act is to enhance national security and 
technological superiority by requiring the Secretary of Defense to 
establish a network of regional defense technology hubs to foster 
innovation, collaboration, and rapid development of defense-related 
technologies to attract talent from across the United States.

SEC. 3. DEFINITIONS.

In this Act:
(1) Anchor federal defense institution.--The term ``anchor 
Federal defense institution'' means a defense manufacturing 
facility, an institution of higher education that engages the 
Department on research, development, testing, and evaluation, 
or a military installation.
(2) Defense technology hub.--The term ``defense technology 
hub'' means a regional hub designated and supported under the 
Program.
(3) Eligible consortium.--The term ``eligible consortium'' 
means a consortium composed of universities, defense 
contractors, small businesses, nonprofit organizations, 
independent research entities, and State or local governments.
(4) Emerging technologies.--The term ``emerging 
technologies'' means scientific and engineering advancements 
with potential military applications as identified by the 
Secretary of Defense.
(5) Program.--The term ``Program'' means the Defense 
Technology Hubs Program established under section 4(a).

SEC. 4. ESTABLISHMENT OF DEFENSE TECHNOLOGY HUBS PROGRAM.

(a) Program Required.--
(1) In general.--The Secretary of Defense shall establish a 
program to designate and support regional hubs focused on 
advancing defense technologies critical to national security.
(2) Designation.--The program established pursuant to 
paragraph (1) shall be known as the ``Defense Technology Hubs 
Program''.
(b) Designation of Defense Technology Hubs.--
(1) Solicitation of applications.--Under the Program, the 
Secretary shall solicit applications from eligible consortia to 
be designated as defense technology hubs under the Program.
(2) Submittal of applications.--A consortium seeking 
designation and support as a regional hub under subsection 
(a)(1) shall submit to the Secretary an application therefor at 
such time, in such manner, and containing such information as 
the Secretary may require.
(3) Criteria.--The Secretary shall select eligible 
consortia for designation and support under subsection (a)(1) 
from among those submitting applications pursuant to paragraph 
(2) of this subsection using the following criteria:
(A) Demonstrated capability in defense-relevant 
technology areas.
(B) Evidence of regional collaboration and 
stakeholder commitment.
(C) Presence of anchor Federal defense institutions 
or mission-critical installations of the Department 
that support or are early adopters of emerging defense 
technologies, such as geospatial intelligence, data 
fusion, artificial intelligence, autonomy, edge 
networking and computing, human-machine teaming, and 
quantum.
(D) Existence of regional innovation ecosystems 
with demonstrated success in leveraging Federal, State, 
and private sector collaboration, such as technology 
innovation consortia, academic research clusters, and 
specialized defense accelerators.
(E) Demonstrated success in developing partnerships 
and collaborative arrangements with local Federal 
defense institutions and mission-critical installations 
for the purposes of advancing research, development, 
prototyping, and transition of emerging defense 
technologies.
(F) Demonstrated success in developing partnership 
and collaborative arrangements with Federal defense 
institutions and mission-critical installations in 
workforce development and training programs to build a 
skilled pipeline for defense innovation.
(E) Potential to address Department-identified 
strategic priorities.
(F) Economic and workforce development impact.
(4) Geographic distribution.--
(A) In general.--In selecting eligible consortia 
for designation and support under the Program, the 
Secretary shall ensure that defense technology hubs are 
distributed--
(i) across diverse geographic regions of 
the United States, with a goal of designating 
at least 10 defense technology hubs before the 
date that is 3 years after the date of the 
enactment of this Act; and
(ii) to regions in which eligible consortia 
are co-located with, or readily accessible to, 
multiple facilities of the Department, 
including mission-critical installations, to 
maximize collaboration between eligible 
consortia and the Department of Defense.
(B) Preference.--In considering geographic 
distribution, the Secretary may give preference to 
regions with demonstrated strategic relevance to 
national security missions, including those with newly 
constructed or expanded Department facilities and 
intelligence community investments.
(c) Objectives of Defense Technology Hubs.--The objectives of a 
defense technology hub under the Program are as follows:
(1) To accelerate the research, development, prototyping, 
and transition to operational use of emerging technologies 
intended for military applications, such as artificial 
intelligence, edge networking and computing, quantum 
technologies, human-machine teaming, hypersonics, 
biotechnology, and advanced manufacturing.
(2) To foster partnerships among components of the 
Department of Defense, private industry, academic institutions, 
and State and local governments.
(3) To address regional defense technology needs while 
leveraging local expertise, infrastructure, and economic 
strengths, including proximity to Federal mission partners such 
as combat support agencies and participation in existing 
innovation consortia or university-industry alliances.
(4) To promote workforce development and training programs 
to build a skilled pipeline for defense innovation including 
partnerships with research universities, community colleges, 
and vocational programs.
(5) To enhance the resilience and security of the defense 
industrial base.
(d) Grants.--
(1) Grants authorized.--Under the Program, the Secretary 
may award grants to defense technology hubs.
(2) Use of funds.--A defense technology hub receiving a 
grant under paragraph (1) shall use the amounts of the grant 
for the following purposes:
(A) As seed funding for establishment of the 
defense technology hub.
(B) For research, prototyping, and technology 
transition projects consistent with the objectives set 
forth in subsection (c).
(C) Administrative and evaluation expenses of the 
defense technology hub relating activities under the 
Program.
(D) Establishing and maintaining required security 
and compliance systems and functions.
(e) Security and Compliance Requirements.--
(1) In general.--Under the Program, each defense technology 
hub shall do the following:
(A) Implement cybersecurity measures consistent 
with Department cybersecurity standards.
(B) Ensure all research and technology transfers 
comply with the International Traffic in Arms 
Regulations (ITAR) and the Export Administration 
Regulations (EAR).
(C) Prevent participation by foreign entities of 
concern, as identified by the Secretary in coordination 
with the heads of the elements of the intelligence 
community (as defined in section 3 of the National 
Security Act of 1947 (50 U.S.C. 3003)) or identified in 
the Entity List maintained by the Bureau of Industry 
and Security of the Department of Commerce and set 
forth in Supplement No. 4 to part 744 of title 15, Code 
of Federal Regulations, and consistent with existing 
Federal designations.
(D) Establish mechanisms to prevent unauthorized 
access to sensitive defense-related research and 
technology.
(E) Establish necessary programs, infrastructure, 
and processes to sponsor, obtain, and hold security 
clearances for the purposes of enabling classified 
research, development, and prototyping of emerging 
defense technologies.
(2) Monitoring and enforcement.--The Secretary shall, in 
coordination with the Director of the Defense 
Counterintelligence and Security Agency, establish procedures 
to monitor and enforce compliance with the requirements set 
forth in paragraph (1).
(f) Intellectual Property Management.--
(1) Guidelines required.--The Secretary shall develop 
guidelines under the Program for intellectual property 
ownership and licensing within the defense technology hubs, 
balancing national security needs with commercial incentives 
for private sector participation.
(2) Retention of rights.--The guidelines developed pursuant 
to paragraph (1) shall include provisions for the Department to 
retain necessary rights for defense applications while allowing 
members of consortia that are defense technology hubs to pursue 
commercial opportunities as may be appropriate.
(g) Funding.--
(1) Authorization of appropriations.--There is authorized 
to be appropriated to the Department of Defense to carry out 
the Program $375,000,000 for the period of fiscal years 2026 
through 2030.
(2) Availability.--Of the amounts appropriated pursuant to 
the authorization in paragraph (1), $75,000,000 shall be 
available to the Secretary to award grants under subsection 
(d).
(3) Federal share.--The Federal share of support provided 
to a defense technology hub under the Program in a fiscal year 
may not exceed 50 percent of the total cost of the operations 
and activities of the defense technology hub under the Program 
in that fiscal year.
(h) Administration.--
(1) In general.--The Secretary shall administer the Program 
through the Under Secretary of Defense for Research and 
Engineering, acting through the Assistant Secretary of Defense 
for Critical Technologies and in coordination with the Director 
of the Defense Innovation Unit and the heads of such other 
elements of the Department as the Secretary considers 
appropriate.
(2) Waiver of acquisition regulations.--For any project of 
a defense technology hub under the Program that the Secretary 
determines has a total cost of less than $10,000,000, the 
Secretary may waive applicable acquisition regulations to 
expedite development and prototyping, consistent with similar 
authorities of the Secretary that were in effect on the day 
before the date of the enactment of this Act.
(3) Annual progress reports.--Each defense technology hub 
shall, not less frequently than once each year, submit to the 
Secretary an annual progress report detailing technological 
advancements, partnerships, and economic outcomes.

SEC. 5. COORDINATION WITH EXISTING PROGRAM.

The Secretary of Defense shall ensure the Program complements, and 
does not duplicate, existing efforts such as efforts of the Defense 
Advanced Research Projects Agency (DARPA), the Manufacturing USA 
Institutes, the Regional Technology and Innovation Hubs of the Economic 
Development Administration (EDA), the Defense Innovation Unit (DIU), 
and the Regional Innovation Engines of the National Science Foundation. 
The Secretary shall, as the Secretary determines appropriate, align 
defense technology hub activities with existing defense and 
intelligence infrastructure to maximize the use of established mission 
platforms and reduce redundant investments, particularly in areas where 
new Federal campuses are designed to serve as long-term anchors for 
defense innovation ecosystems.

SEC. 6. EVALUATION AND REPORTING.

(a) Independent Evaluations.--The Secretary of Defense shall seek 
to enter into a contract with an independent entity to evaluate the 
effectiveness of the Program annually for the first 5 years of the 
Program, and biennially thereafter, assessing technology outputs, 
national security impacts, and return on investment.
(b) Annual Reports.--Not less frequently than once each year, the 
Secretary shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives an 
annual report detailing Program activities, defense technology hub 
performance, and recommendations for improvement to the Program.

SEC. 7. EFFECTIVE DATE.

The provisions of this Act shall take effect on the date that is 
180 days after the date of the enactment of this Act.
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