This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning national defense, cybersecurity, weapons systems, military commitments, and the Army, Navy and Air Force. Once a week, we break down the most important updates in this space in under five minutes.

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Dates: 2026-05-03 to 2026-05-09

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 🗺️ State Government News
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• Department of the Navy Fiscal Year 2027 Budget Request: The House Armed Services Committee will hold a hearing on May 14 regarding the Navy's FY 2027 budget request, featuring testimony by Acting Secretary Hung Cao, Admiral Daryl Caudle, and General Eric Smith.
• Department of the Air Force Fiscal Year 2027 Budget Request for Seapower and Projection Forces: On May 13, the House Armed Services Subcommittee on Seapower and Projection Forces will review the Air Force's FY 2027 budget with input from Lieutenant General David Tabor and Mr. William Bailey.
• Budget Hearing - The United States Navy and Marine Corps: The House Appropriations Subcommittee on Defense convenes May 12 for a budget hearing with leaders from the Navy and Marine Corps, including Acting Secretary Hung Cao, Admiral Caudle, and General Smith.
• Hearings to examine Air Force modernization in review of the Defense Authorization Request for Fiscal Year 2027 and the Future Years Defense Program.: The Senate Armed Services Subcommittee on Airland will hold an open hearing May 12 to examine Air Force modernization as part of FY 2027 defense authorization and the Future Years Defense Program.
• Department of the Army Fiscal Year 2027 Budget Request: The House Armed Services Committee will discuss the Army's FY 2027 budget request on May 15, with Secretary Daniel Driscoll and General Christopher LaNeve scheduled to testify.
• Securing NATO’s Eastern Frontier: Assessing the Strategic Landscape in the Baltic Region: The House Foreign Affairs Subcommittee on Europe hosts a hearing May 14 with Deputy Assistant Secretary Christopher Smith addressing strategic aspects of NATO's eastern frontier in the Baltic region.
• Budget Hearing - The Department of Defense: On May 12, the House Appropriations Subcommittee on Defense will assess the Department of Defense budget, including testimony from General Dan Caine, Secretary Pete Hegseth, and Acting Assistant Secretary Jules Hurst.
• To receive a closed briefing on cyber operations and readiness for the fourth quarter of fiscal year 2025 and the first quarter of fiscal year 2026.: The Senate Armed Services Subcommittee on Cybersecurity schedules a closed briefing May 13 on cyber operations and readiness spanning Q4 FY2025 and Q1 FY2026.

Federal Government News

Arms Sales Notification: UK Submarine Combat Systems

The Department of Defense issued an arms sales notification for a proposed $1 billion sale to the United Kingdom, covering submarine combat and weapon systems, technical support, training, and embedded personnel. The transaction supports the AUKUS security partnership and includes engineering, logistics, and program support by major defense contractors. Approximately 300 U.S. personnel are scheduled for a five-year assignment in the UK to deliver training and maintenance. The sale involves technology classified as TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION; assessments deem the UK capable of safeguarding this technology. The program amendment exceeds congressional notification thresholds and aims to bolster maritime deterrence without impacting U.S. defense readiness.

Sources: www.federalregister.gov

Arms Sales Notification: Kuwait Air and Missile Defense Sensors

DoD announced a proposal for an $8 billion sale to Kuwait, featuring eight Lower Tier Air and Missile Defense Sensors (LTAMDS) radars and supporting tactical systems. RTX Corporation will serve as principal contractor. The sale seeks to enhance Kuwait's air defense with advanced 360-degree surveillance integrated into the U.S. Army's system. Implementation will require 12 U.S. government and 12 contractor representatives in Kuwait over 20 years. Technology involved is classified as SECRET, and Kuwait has been judged capable of protecting it. No adverse impact to U.S. defense readiness is anticipated.

Sources: www.federalregister.gov

DFARS Supplement Proposal: Mitigating Risks Related to Foreign Ownership

The DoD proposed amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) for contracts above $5 million, requiring contractors and subcontractors to disclose foreign ownership or control and beneficial ownership. Disclosures must be submitted to the Defense Counterintelligence and Security Agency and updated after changes. Firms must mitigate foreign influence risks within 90 days of contract award or modification. The rule impacts about 37,740 entities, including over 21,000 small businesses, and is aligned with broader supply chain and cybersecurity efforts. Public comments are due by July 6, 2026.

Sources: www.federalregister.gov

Request for Information: Small Modular Reactor (SMR) Concept for Maritime

The Maritime Administration (MARAD) issued a request for information supporting development of scalable, commercially viable U.S.-built small modular reactor (SMR) propulsion systems for marine integration. Topics include liability frameworks, port acceptance, workforce pipelines, standards, and system architecture for deployment. Responses may address technical, regulatory, insurance, workforce, and operational barriers, as well as lessons from past nuclear vessel construction, with an August 5, 2026 submission deadline. MARAD plans stakeholder engagement events to inform subsequent government actions.

Sources: www.federalregister.gov

Special Conditions: Lithium Battery Installations in Airbus Defense and Space S.A. Model 212

The FAA established special conditions for Xtreme Avionics, LLC modifications to the Airbus Defense and Space Model C-212 series, prescribing requirements for lithium-ion battery backup in the GI 275 Standby Display. The conditions address novel lithium-ion battery design, mandating safe operating limits, prevention of thermal events, gas emission control, crew warning systems, and protection against heat and corrosive fluids. These rules supersede certain existing regulations and apply to all affected installations. Public comment is open until June 22, 2026.

Sources: www.federalregister.gov

America 250: Presidential Message on Coral Sea Battle Anniversary

The White House issued a message marking the 84th anniversary of the Battle of the Coral Sea, recognizing American and Australian forces. The statement noted the ongoing U.S.-Australia alliance, referencing recent agreements to expand access to critical minerals for economic and defense purposes and restating a commitment to Indo-Pacific security and allied cooperation.

Sources: www.whitehouse.gov

Presidential Message on National Astronaut Day

A presidential address commemorated National Astronaut Day, referencing NASA milestones and the Artemis II mission, which involved significant lunar distance travel and included U.S. and Canadian astronauts. The Executive Order for American Space Superiority was cited, with ongoing advancement in space nuclear technology and plans for lunar return and permanent settlement by 2028.

Sources: www.whitehouse.gov

Victory Day for World War II, 2026

President Trump proclaimed May 8, 2026 as Victory Day for WWII, honoring the contributions and sacrifices of American forces. The proclamation reiterated the commitment to maintain a dominant U.S. military for the protection of national sovereignty.

Sources: www.whitehouse.gov

Legislative Updates

Expanding the Defense Industrial Base Sales Act (H.R. 8649)

Bill 8649, Expanding the Defense Industrial Base Sales Act, was referred to the House Committee on Foreign Affairs on May 4. The bill relates to international defense sales and aims at broadening participation in the U.S. defense industrial base.

Sources: www.congress.gov

Allied Defense Sales Act (H.R. 8665)

Bill 8665, Allied Defense Sales Act, was referred to the House Committee on Foreign Affairs. The legislation is intended to address sales to allied foreign governments.

Sources: www.congress.gov

MISSION Rx Act (H.R. 8667)

Bill 8667, MISSION Rx Act, was referred to the Committee on Veterans’ Affairs and the Armed Services Committee for further consideration. The bill is focused on veterans’ healthcare provisions connected to defense operations.

Sources: www.congress.gov

To protect U.S. food security, expand CFIUS jurisdiction (H.R. 8700)

Bill 8700 was referred to the Committee on Financial Services and related committees, proposing greater jurisdiction for CFIUS over land purchases by foreign adversaries near sensitive sites, and broadening the definition of such sites.

Sources: www.congress.gov

2026 Authorization for Use of Military Force Against Iran (H.R. 176)

Bill 176, concerning authorization for military operations against Iran, was referred to the House Committee on Foreign Affairs on May 7.

Sources: www.congress.gov

State Government News

Indiana Outlaws Land Ownership by Foreign Adversaries

Senate Enrolled Act 256, signed by Governor Mike Braun, mandates registration and full disclosure by foreign agents and bans land ownership by China, Iran, North Korea, and Russia.

Sources: www.indianasenaterepublicans.com

Co-Authored Indiana Bill Blocks Land Sales to Foreign Adversaries

SEA 256, co-authored by Senator Randy Maxwell, prohibits land acquisition by designated foreign countries, eliminates foreign agents from state programs, and restricts funding to affiliates of hostile nations.

Sources: www.indianasenaterepublicans.com

Indiana Law Bans Foreign Agents from Buying State Land

Senator Eric Koch's bill SEA 256 requires hostile country agents to register and disclose state activities, and blocks government contracts with businesses controlled by foreign adversaries.

Sources: www.indianasenaterepublicans.com

Montana Governor Recognizes Veteran Service

Governor Greg Gianforte honored Navy veteran Peter Olson with the Montana Governor’s Veteran Commendation for distinguished service and extensive community involvement.

Sources: news.mt.gov

Florida Foreign Interference Restriction and Enforcement Act Signed

Governor Ron DeSantis signed HB 905, establishing restrictions and criminal penalties for hostile foreign influence and transactions involving countries like Iran and Cuba, and enhancing state-level foreign agent disclosure.

Sources: www.flgov.com

What We're Reading This Week

• Greece is interested in purchasing C-390 military planes, says minister: Greece is considering purchasing Embraer C-390 military aircraft, according to official statements.
• Rheinmetall submits bid for GNYK shipyard as it deepens naval push: Rheinmetall has submitted a bid for GNYK shipyard as part of its expanded naval strategy.
• Ukraine Gripen fighter jet deal could be signed within months, defence minister says: Negotiations for a Gripen fighter jet purchase by Ukraine may conclude within months, per Swedish defense officials.
• US approves potential sale of joint direct attack munitions to Ukraine: The United States approved a potential sale of Joint Direct Attack Munitions to Ukraine for its defense operations.
• Turkey's Aselsan to ramp up delivery of 'Steel Dome' parts in 2026: Aselsan is set to increase its delivery of parts for Turkey's 'Steel Dome' air defense system this year.
• Poland signs first loan deal as part of EU defence spending push: Poland has signed its first loan agreement under the EU's major defense spending initiative.

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