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: 2026-02-15 to 2026-02-21

📋 In This Week's Newsletter

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

This Week's Congressional Calendar

• House Armed Services Subcommittee Hearing: Modernization of the Organic Industrial Base: Scheduled for February 24, 2026 at 2:00 p.m. EST, the House Armed Services Subcommittee on Tactical Air and Land Forces will hold a hearing on modernization of the organic industrial base. Assistant Secretary Brent Ingraham and Lt. Gen. Chris Mohan from Army Materiel Command are confirmed witnesses.
• House Foreign Affairs Committee Hearing: Advancing National Security through Commercial Diplomacy: Set for February 24, 2026 at 10:00 a.m. EST, the House Foreign Affairs Committee will examine how commercial diplomacy supports U.S. national security. Under Secretary Jacob Helberg from the State Department is scheduled to testify.

Federal Government News

Federal Acquisition Regulation: Proposed Ban on Certain Semiconductor Products and Services

The Federal Acquisition Regulatory Council has proposed a rule amending the FAR to implement sections of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, prohibiting executive agencies from procuring products and services containing covered semiconductors effective December 23, 2027. The prohibition extends to contracts at and below the micro-purchase threshold and covers commercial products and IT services, except where no compliant alternatives are available until December 23, 2028. Offerors are required to conduct reasonable inquiries into their supply chains and provide certifications regarding compliance, with provisions for waivers under specified circumstances. Estimated compliance costs for industry over 10 years exceed $1.8 billion, while government costs are projected at $60.6 million. The rule mandates rapid contractor notification (within 72 hours) upon discovery of prohibited semiconductors and requires supply chain disclosures to non-Federal customers. Public comment on the regulation and associated paperwork burden is open until April 20, 2026.

Sources: www.federalregister.gov

Presidential Waiver of Defense Production Act Requirements for Critical Sectors

The President issued a waiver of statutory requirements under Section 303 of the Defense Production Act, authorizing flexible measures to address supply chain shortfalls threatening national defense capabilities. The waiver covers aircraft (fixed wing, rotorcraft, UAVs), CBRN protection, ground vehicles, nuclear warheads and platforms, radar and EW systems, shipbuilding, soldier systems (including body armor and apparel), space assets, defense electronics, machine tools, industrial controls, and workforce training. This action aims to strengthen U.S. defense infrastructure and ensure resilience in critical industrial bases, with implementation measures published in the Federal Register.

Sources: www.federalregister.gov

Streamlined Vessel Inspection Program: Coast Guard Request for Industry Input

The Department of Homeland Security, Coast Guard, issued a request for information to evaluate and improve the Streamlined (Vessel) Inspection Program, as described in Navigation and Vessel Inspection Circular 02-99. Industry stakeholders, including vessel owners, operators, shipyards, and workforce organizations, are invited to submit comments by March 20, 2026 via regulations.gov. The RFI specifically solicits feedback on operational and regulatory challenges in SIP compliance, integration of management technologies (such as digital recordkeeping and automated reporting), and potential adaptation of quality management systems (e.g., ISM Code, TSMS, ACP). Additionally, input is sought on barriers faced by small operators, electronic documentation practices, and procedures for automated vessel safety tests. Responses will inform Coast Guard policy updates to support domestic maritime competitiveness and national security objectives.

Sources: www.federalregister.gov

Notifications to Congress of Proposed Defense Export Licenses

The Directorate of Defense Trade Controls reported notifications to Congress under the Arms Export Control Act for proposed commercial defense export licenses exceeding $1 million each, covering July–September 2025. Transactions include $100 million in missile systems to Israel, radar systems to Canada and Europe, air-to-air missile parts to the UK, NATO transport aircraft to European partners, and fighter aircraft parts to Australia. Additional items approved include rifles, thermal batteries, anti-tank systems, mine detection, and sonobuoy components. Export decisions account for political, military, economic, human rights, and arms control factors.

Sources: www.federalregister.gov

Agency Information Collection Activities: Import Permits for Firearms, Ammunition, and Defense Articles

The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) has submitted an information collection request for ATF Form 5330.3A, used to apply for permits to import firearms, ammunition, and defense articles. The estimated annual respondent count for this form is 13,777, with an average response time of 30 minutes per submission. Total annual burden is projected at 3,869 hours and $1,241 in mailing costs for non-electronic submissions. The public may comment on the collection until March 23, 2026 by visiting reginfo.gov. The collection supports compliance with relevant federal statutes, including the Gun Control Act.

Sources: www.federalregister.gov

What We're Reading This Week

• New cybersecurity rules for US defense industry create barrier for some small suppliers: Revised cybersecurity standards are increasing compliance challenges for smaller suppliers to the defense sector.
• Canada to Prioritize Domestic Firms in Defense-Spending Plan Amid U.S. Tension: The Canadian government plans to favor domestic defense firms, generating concern about cross-border procurement relations.
• The Phantom Stealth Fighter That Exposes Europe’s Deep Divisions Over Defense: European nations are struggling to agree on a stealth fighter project amid diverging security priorities.
• Europe's main military powers to develop low-cost air-defence systems: France, Germany, and Italy will jointly pursue affordable air-defence systems with an emphasis on counter-drone capabilities.
• Airbus capable of developing a fighter jet alone, CEO says, as FCAS spat deepens: Airbus CEO claims the firm can independently build a fighter jet, as inter-European disagreements impact FCAS consortium.
• The U.S. Military Hardware Pouring Into the Middle East - WSJ: The U.S. is providing advanced military equipment to allies in the Middle East amid ongoing regional tensions.
• Taiwan parliament to tackle defence spending review after Lunar New Year holiday: Taiwan's legislature will review national defense expenditures following the holiday break.
• JPMorgan taps CHIPS, defense officials for $1.5 trillion security initiative push, memo says: JPMorgan is launching a $1.5 trillion initiative focusing on security, working with CHIPS and defense experts.
• Sweden pledges another $1.4 billion in military aid to Ukraine: Sweden has announced new military aid totaling $1.4 billion for Ukraine.

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