The U.S. defense policy bill for 2026 promotes greater US-India cooperation through the Quad to counter China and strengthen allied defense industries.

Signed by President Trump, the National Defence Authorisation Act for Fiscal Year 2026 expands U.S. defence engagement with India through the Quadrilateral Security Dialogue (Quad), confronting strategic challenges from China in the Indo-Pacific. The Act mandates increased bilateral and multilateral military exercises, defence trade, humanitarian aid coordination, and maritime security cooperation. It calls for a security initiative to bolster defence industrial bases among the U.S., India, Japan, Australia, South Korea, the Philippines, and New Zealand, focusing on supply chain security and operational resilience. A joint U.S.-India consultative mechanism will also monitor nuclear liability rules alignment and strategic diplomatic efforts to support India’s peaceful nuclear energy use.