The House of Representatives passed its version of the Fiscal Year 2024 National Defense Authorization Act (NDAA) (H.R. 2670) on July 14, by a vote of 219-210. Separately, the Senate passed its version (S. 2226) on July 27 by a much more bipartisan vote of 86-11. Conferees from both chambers must meet to iron out differences between the two bills.

The NDAA typically passes with a strong bipartisan vote each year. Even H.R. 2670 passed out of the House Armed Services Committee (HASC) in June by a vote of 58-1. The House adopted a number of amendments on the House floor related to abortion, transgender health care and diversity and inclusion that eroded support from House Democrats.

H.R. 2670 authorizes $886 billion for defense programs and maintains the 5.2 percent pay raise, as passed out of HASC. The contentious debate and votes on the full House floor likely offer a glimpse of what is to come when House and Senate conferees meet when Congress returns to Washington, D.C., after Labor Day.

The Senate bill passed by a strong bipartisan vote. FMA helped lead the charge in that chamber against an amendment offered that would have eliminated the TSP’s ability to offer an International Fund, severely restricting Thrift Savings Plan (TSP) investment options for its members and crippling their choices.

In a letter to all Senators, FMA National President Craig Carter wrote, “While FMA appreciates the assumed intent of prohibiting TSP investment in a “country or security of concern,” there is already a structure in place that considers investments in foreign countries. The Office of Foreign Asset Control (OFAC) at the United States Treasury is in place and established to protect our country’s national security interests.”

“Further, if the goal is to send a message to China, the amendment falls flat,” Carter continued. “If the investment in funds that include China is a bad idea, all U.S. 401(K) and IRA plans should be prohibited from participating. Instead, the amendment singles out a small population of Americans – the TSP accounts for less than one percent of all investment assets in the U.S. All other major 401(K) type plans invest in international markets – including China – including the Florida Retirement System and many other state pension plans. Federal employees have limited options with their investments and want to be able to invest the same way their neighbors can.”

The Employee Thrift Advisory Council, which President Carter sits on, followed with a similar letter. While the amendment garnered 55 “yea” votes, it needed 60 to pass, so it was not adopted to S. 2226.

We will keep you posted on developments as the House and Senate work toward a compromise on the NDAA this fall.