National Security Innovation Capital

The National Security Innovation Capital (NSIC) program, as outlined in Program Element PE 0603021D8Z, is managed by the Office of the Secretary of Defense and is a key component of the Department of Defense's (DoD) strategy to build a sustainable and resilient joint force defense ecosystem. The primary goal of NSIC is to accelerate the development of dual-use hardware technologies that are critical to both national security and economic competitiveness. This program directly supports Title 10 USC, Section 4811, which mandates the Secretary of Defense to develop a national security strategy for the National Technology and Industrial Base (NTIB) that prioritizes the assessment of risks and challenges to the defense supply chain.

NSIC's objectives are focused on enabling dual-use hardware startups to achieve significant milestones in their product development by addressing gaps in private investment from trusted sources. The program's support allows these companies to reduce technical risk and signals DoD interest, which in turn attracts additional private investment that might otherwise remain inactive. This approach is intended to foster more rapid and robust development of hardware technologies within the United States. It also expands the defense industrial base and reduces the risk of technology transfer to adversaries.

The program specifically targets key technology areas such as autonomy, communications, power, sensors, and space. By concentrating on these domains, NSIC aims to ensure that the U.S. maintains technological superiority in sectors that are essential for both defense and commercial applications. The dual-use nature of these technologies means that advancements not only benefit military capabilities but also strengthen the broader U.S. industrial and innovation base.

For Fiscal Year 2025, NSIC received a substantial increase in funding compared to the previous year, with a planned allocation for Fiscal Year 2026. The significant budget increase reflects congressional adds and a strategic emphasis on accelerating technology development in response to evolving national security needs. The funding adjustment for FY 2026 also accounts for inflation, ensuring that program resources remain adequate to meet its objectives.

Within the NSIC line item, all funding is dedicated to a single project code, which encompasses the full scope of the National Security Innovation Capital initiative. There are no additional sub-projects or separate acquisition strategies detailed for this program element. The focus remains on research, development, test, and evaluation (RDT&E) activities that advance hardware technologies from concept to prototype and beyond.

The NSIC program does not include procurement activities or the acquisition of RDT&E articles. Instead, its resources are directed toward supporting early-stage technology development and reducing barriers to entry for innovative hardware startups. This approach is designed to strengthen the U.S. defense industrial base by cultivating a pipeline of new technologies and companies capable of addressing current and future national security challenges.