August 23, 2026 to August 29, 2026

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.

Want to track GR news in industries related to Defense? Don't miss this week's updates in ICT & Cybersecurity and Foreign Affairs. Also consider subscribing to our Defence - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• Industrial Base and Workforce Development for Skilled Trades—House Appropriations Subcommittee on Defense: The House Appropriations Subcommittee on Defense will hold a hearing on "Industrial Base and Workforce Development for Skilled Trades" on September 4, 2026, at the College of the Canyons Performing Arts Center in Santa Clarita, CA. Witnesses include Michael Cadenazzi (U.S. Department of War), Eric Chewning (Huntington Ingalls Industries), and Michael Reed (Pennsylvania College of Technology).

Federal Government News

White House Declares National Emergency to Secure U.S. Bulk-Power System

Executive Order 14420, issued August 26, 2026, establishes a national emergency to protect the U.S. bulk-power system. The measure blocks transactions involving foreign-produced bulk-power system electric equipment deemed a risk to national security, critical infrastructure, or the economy. The Secretary of Energy is authorized to identify and replace high-risk equipment, impose mitigation measures, and revise federal procurement policy to prioritize U.S.-manufactured energy infrastructure. The order excludes local distribution facilities and provides definitions for key terms, delegating rulemaking and implementation responsibilities to the Secretary. The White House states this action is part of an ongoing effort to address cybersecurity and supply chain threats to critical infrastructure nationwide.

Sources: www.whitehouse.gov, www.whitehouse.gov

United States Space Academy Commission Established by Executive Order

On August 28, 2026, President Trump established a Presidential Commission to design the United States Space Academy—a federal NASA-led institution focused on educating leaders for space exploration, security, and industry. The Commission, chaired by the NASA Administrator, is directed to propose recommendations spanning governance, curricula, service requirements, applicant selection, location, partnerships, and legislative strategy. The Academy is envisioned to train graduates for military, civil, and commercial space roles, supporting ongoing policy efforts such as the Space Force establishment, Artemis missions, and expansion of the U.S. commercial space sector. Recommendations are due in the coming year, with NASA to coordinate further action following approval.

Sources: www.whitehouse.gov, www.whitehouse.gov

Maritime Administration Revises Vessel and Shipyard Financing Program

The U.S. Maritime Administration issued an interim final rule updating the Vessel and Shipyard Financing Program (Title XI) under 46 CFR Part 298. Effective August 28, 2026, the rule reduces regulatory sections from 34 to 20, modernizes terminology, and incorporates changes from the FY2020 NDAA. Notable adjustments include a reduction of the application fee from $5,000 to $1,000 and a restructuring of fee requirements for larger capital projects. Eligibility provisions now specify construction, flagging, and U.S. Coast Guard compliance; they also prioritize applications for vessels suitable for military auxiliary service or classified as "Vessels of National Interest." The rule addresses refinancing, foreign component waivers, dual-use capital construction funds, and migrates certain contractual provisions into loan documents. Stakeholders may submit comments through October 27, 2026.

Sources: www.federalregister.gov

FCC Seeks Comment on Proposed Prohibition of Certain UAS Imports and Marketing

On August 24, 2026, the Federal Communications Commission announced a request for comment on a proposal to prohibit the continued importation and marketing of previously authorized foreign-produced uncrewed aircraft systems (UAS) and critical components identified in section 1709 of the FY2025 NDAA. Devices by U.S.-based manufacturer Anzu, made in Malaysia or licensed by entities specified in the NDAA, are named as subject to the proposed ban. The proposal follows an executive branch determination that such products pose an unacceptable risk to U.S. national security through vulnerabilities in surveillance, data exfiltration, or supply chain management. The public has until September 23, 2026, to submit input. Existing UAS in service are not affected by the import/marketing prohibition.

Sources: www.federalregister.gov

State Department Amends ITAR for Civil Aircraft and Aircraft Survivability Equipment

The State Department published an interim final rule on August 28, 2026, amending sections of the International Traffic in Arms Regulations (ITAR) to remove certain civil aircraft, modified to incorporate survivability equipment (ASE), from the U.S. Munitions List (USML). Survivability-enhanced aircraft with directed infrared countermeasures or missile warning systems are no longer subject to ITAR control when specific anti-tamper and eligibility criteria are met. The rule clarifies which activities require licensing and which do not, such as the temporary import or reexport of aircraft containing secured ASE under defined circumstances. The measure is scheduled to take effect October 13, 2026, and includes a comment period through September 28, 2026.

Sources: www.federalregister.gov

What We're Reading This Week

• US Army awards up to $2.2 billion to five companies to build microreactors on bases: Army to deploy microreactors on bases in a new procurement worth up to $2.2 billion.
• Baltic Sea nations plan drone defence task force, Germany says: Germany states Baltic Sea nations are forming a drone defense task force.
• US defence firm Covenant plans missile production in Germany, sources say: U.S. defense contractor Covenant reportedly plans to establish missile manufacturing in Germany.
• India signs deal with US to buy Javelin anti-tank missile systems: India finalizes agreement with the U.S. for purchase of Javelin anti-tank missiles.
• Philippines seeking to expand military drone capabilities, says defence chief: The Philippines is taking steps to enhance its military drone fleet.
• EU approves further €6.1 billion for Ukraine's defence: The EU extends €6.1 billion in additional defense support for Ukraine.
• Taiwan Lines Up $7 Billion Boost for Drone Builders to Counter China: Taiwan prepares to fund domestic drone manufacturers with $7 billion to mitigate Chinese threats.
• UK, Ukraine sign AI defence partnership linked to battlefield technology: The UK and Ukraine agree on AI defense collaboration for battlefield applications.
• Pipelines and ports: Iran war spurs Gulf infrastructure investment: Regional conflict involving Iran drives new infrastructure spending in Gulf states.

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