Bipartisan, bicameral legislation offered on Wednesday by U.S. Sen. Marsha Blackburn (R-TN) would accelerate the production and acquisition of advanced capabilities for national security by creating incentives for private capital to invest in U.S. small businesses.
“This bipartisan legislation will improve the acquisition of cutting-edge technology for national defense and security,” Sen. Blackburn said. “It encourages private capital to invest in small businesses that have traditionally been unable to be a part of producing equipment for our country’s Armed Forces.”
Sen. Blackburn and U.S. Sen. Jacky Rosen (D-NV) introduced the Investing in American Defense Technologies Act, while U.S. Reps. Chrissy Houlahan (D-PA) and Pat Fallon (R-TX) introduced the House version of the bill.
According to a bill summary provided by the lawmakers, the measure would establish a federal public-private partnership to scale, support, and invest in American defense-centric small businesses that are producing advanced capabilities, including hypersonics, space, and autonomous systems.
If enacted, the bill also would help fuel cutting-edge defense technology production and make the United States more competitive with adversaries like China, the summary says.
“When it comes to maintaining the United States’ edge in advanced defense capabilities, we cannot afford to fall behind China,” said Sen. Rosen. “I’m introducing this bipartisan bill to bolster our competitiveness by establishing a public-private partnership to enable American defense-focused small businesses to succeed and scale their advanced technology innovations.”
The summary adds that there is currently a lack of available private capital supporting defense-focused small businesses, with the number of small businesses in the defense industrial base having shrunk by over 40 percent in the past decade.