Economic Defense Unit

(a) In general Chapter 4 of title 10, United States Code, is amended by adding at the end the following new section: 149a. Economic Defense Unit (a) Establishment There is established in the Department of Defense an Economic Defense Unit (in this section referred to as the Unit). (b) Director (1) In general The head of the Unit shall be the Director (in this section referred to as the Director). (2) Appointment The Director shall be appointed by the Secretary of Defense from among— (A) employees in Senior Executive Service positions (as defined in section 3132 of title 5); or (B) individuals from outside the civil service who have successfully held equivalent positions with relevant experience in strategic planning, economic planning and analysis, or similar activities in the private sector, another component of the Department of Defense, or another Federal agency. (3) Authority of Director The Director— (A) shall serve as a principal staff assistant to advise the Secretary on matters within the responsibilities of the Unit; (B) shall report directly to the Deputy Secretary of Defense without intervening authority; and (C) may communicate views on matters within the responsibilities of the Unit directly to the Deputy Secretary without obtaining the approval or concurrence of any other official within the Department of Defense. (4) Limitation on holding multiple offices The Director may not hold any other office or title. (c) Responsibilities (1) In general The Unit shall be responsible for the following: (A) Coordinating among, and harmonizing economic competition activities by, components of the Department of Defense, including by serving as a co-chair of the National Defense Economic Competition Research Council. (B) Developing and maintaining requirements for economic competition activities to reinforce military advantage, including requirements described in subsection (d). (C) Developing and maintaining a campaign plan for economic competition activities to reinforce military advantage. (D) Conducting or sponsoring analyses and other net assessment activities to scope economic competition activities, gaps, needs, or requirements related to activities of the United States, allies of the United States, or adversaries. (E) Directing the execution of economic competition activities. (F) Developing programming and budget submissions for economic competition activities. (G) Advising the Secretary and the Deputy Secretary with respect to economic competition activities, including with respect to coordinating integration of economic competition requirements or programs into joint and interagency planning activities. (H) Acting as the principal interlocutor for interagency activities related to economic competition activities. (I) Leading outreach of the Department of Defense to relevant private actors engaged in economic competition activities, including by liaising with private actors under section 1047 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117–263; 10 U.S.C. 113 note). (J) Sponsoring or conducting regular tabletop exercises related to economic competition activities in order— (i) to assess the economic impacts of decisions of the Department of Defense during crises and conflicts; (ii) to evaluate the economic tools available to the United States Government to augment the capabilities of the Department of Defense in competition, crises, and conflicts; or (iii) to evaluate planning scenarios or concept development, including to test proposed doctrine, tactics, or other nonmaterial approaches for economic competition activities that might be used by the Department of Defense. (K) Selecting economic competition activities projects to be carried out using funds made available to the Unit, allocating funds to organizations to carry out such projects, and monitoring the execution of such projects. (L) Serving as the co-chair of the National Security Capital Forum. (M) Regularly updating the National Security Council and relevant Federal agencies with respect to the economic competition activities of the Department of Defense. (2) No responsibility for negotiating equity investments The Unit— (A) shall not be responsible for negotiating or executing any agreements related to— (i) taking an equity interest in an entity; or (ii) using debt instruments, warrants, options, and other rights to acquire an equity interest in an entity; and (B) shall work with and through existing entities within the Department established to negotiate and execute such agreements. (d) Economic competition requirements (1) In general The requirements for economic competition activities developed and maintained by the Unit under subsection (c)(1)(B) may include requirements for— (A) access, basing, and overflight; (B) countering mobilization of adversaries; (C) countering modernization of adversaries; (D) countering defense industrial base activities by adversaries; (E) ensuring the access of the United States to critical materials and capabilities; and (F) such other matters as the Director considers appropriate. (2) Consultations In developing requirements for economic competition activities under subsection (c)(1)(B), the Director shall consult— (A) integrated priorities lists from combatant commanders derived from operational plans or theater campaign plans; (B) integrated priorities lists of defense industrial base shortfalls or investment opportunities; and (C) the outcomes of experimentation events, science and technology activities, and examinations of issues of economic competition by concept development organizations. (e) Staffing In consultation with the Secretary and the Deputy Secretary, the Director shall ensure— (1) staffing of the Unit with individuals with relevant expertise and experience, including a diversified mix of individuals with expertise in— (A) financial analysis; (B) national security economics; (C) intelligence analysis; (D) international business or finance; (E) campaign planning; (F) military operations; (G) supply chain planning or risk management; and (H) complex real estate or construction mega-projects; and (2) such individuals are vetted for and abide by conflict-of-interest regulations prescribed under subsection (f) specifically for the Unit to protect the significantly sensitive nature of the economic data and decision-making conducted by staff of the Unit. (f) Conflict-of-interest regulations (1) In general The Director shall submit to the congressional defense committees— (A) not later than July 1, 2027, interim conflict-of-interest regulations required by subsection (e)(2) applicable to the staff of the Unit; and (B) not later than January 31, 2028, final such regulations. (2) Updates The conflict-of-interest regulations prescribed under subparagraph (A) shall be updated not less frequently than once every three years. (g) Reporting requirements (1) Quarterly briefings Not less frequently than quarterly, the Director shall provide to the Secretary and the congressional defense committees a briefing on, for the quarter preceding the briefing— (A) the activities of the Unit; (B) the outcomes of and advances resulting from such activities; and (C) work product of the Unit. (2) Annual reports Not less frequently than annually, the Director shall submit to the congressional defense committees a report on the matters described in subparagraphs (A), (B), and (C) of paragraph (1) for the year preceding submission of the report. (h) Rule of construction Nothing in this section shall be construed to confer upon the Director or the Unit any new authority beyond planning, coordinating, and advising the Department of Defense with respect to economic competition activities. (i) Economic competition activities defined In this section, the term economic competition activities means actions that are taken to reinforce military advantage in and through the economic domain, including such actions taken— (1) to leverage private capital and market actors; (2) to acquire or procure items; (3) to protect or enhance the economic or technological advantage of the United States or allies of the United States; (4) in the information environment or cyber environment or as other sensitive operations; or (5) to leverage interagency authorities.. (b) Personnel management authority Section 4092(a) of title 10, United States Code, is amended by adding at the end the following new paragraph: (12) Economic Defense Unit The Director of the Economic Defense Unit may carry out a program of personnel management authority provided in subsection (b) in order to facilitate recruitment of eminent experts described in section 149a(e) of this title.. (c) National Defense Economic Competition Research Council Section 228(c) of the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 (Public Law 118–159; 10 U.S.C. 4001 note) is amended— (1) by amending paragraph (1) to read as follows: (1) Chair The Director of the Economic Defense Unit shall be the chair of the Council.; and (2) in paragraph (2)— (A) by redesignating subparagraphs (A) through (N) as clauses (i) through (xiv), respectively, and by moving such clauses, as so redesignated, two ems to the right; and (B) by striking The co-chairs and all that follows through the following: and inserting in the following: “The Council shall include the following: (A) The Under Secretary of Defense for Policy. (B) The Under Secretary of Defense for Research and Engineering. (C) The Under Secretary of Defense for Acquisition and Sustainment. (D) Representatives from each of the following:. (d) National Security Capital Forum Section 1092(b) of the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 (Public Law 118–159; 10 U.S.C. 149 note) is amended to read as follows: (b) Co-chairs The Director of the Office of Strategic Capital and the Director of the Economic Defense Unit shall serve as co-chairs of the Forum established under subsection (a)..