H.R. 3147House118th Congress (2023-2025)In Committee

To establish a defense industrial base advanced capabilities pilot program.

Introduced May 9, 2023

AI-Generated Summary

Updated January 20, 2026 at 7:16 AM UTC

The bill creates a defense‑industrial‑base advanced capabilities pilot program run by the Under Secretary of Defense for Acquisition and Sustainment. It sets up public‑private partnerships that bring private‑equity investors to fund and guarantee loans for domestic small or nontraditional defense businesses, aiming to speed up production of advanced technologies and boost supply‑chain resilience. The program rolls out in two phases with reporting to Congress and ends after five years unless made permanent.

Key Provisions

  • Establishes a pilot program where the Under Secretary forms public‑private partnerships with for‑profit entities to invest in domestic small or nontraditional defense firms
  • Sets partnership eligibility criteria: independent, free from foreign control, private‑equity experience in defense/commercial sectors, and cleared for classified information
  • Allows partner entities to invest equity in qualifying businesses based on technical merit and DoD priorities
  • Provides up to an 80% loan guarantee from the Department of Defense for these investments, limited to the pilot program
  • Implements the program in two phases: Phase 1 starts within 180 days with one partnership and requires a 27‑month performance report; Phase 2 may expand to up to three partnerships and requires a five‑year outcome report
  • Specifies that the authority to enter agreements expires five years after enactment

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Armed Services.

May 9, 2023

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HouseIntro Referral

Introduced in House

May 9, 2023

HouseIntro Referral

Referred to the House Committee on Armed Services.

May 9, 2023

Floor Debate

24 members

What members said about H.R. 3147 on the floor

13 Republicans11 Democrats
Betty McCollum
Rep. Betty McCollumD-MN-4 · Sep 27, 2023

Mr. Chair, I yield myself such time as I may consume. I rise today in opposition to H.R. 4365, the Department of Defense Appropriations Act, 2024. As chair of the subcommittee last Congress, I…

Ken Calvert
Rep. Ken CalvertR-CA-41 · Sep 27, 2023

Madam Speaker, I ask unanimous consent that all Members have 5 legislative days in which to revise and extend their remarks and to include extraneous material on H.R. 4365, and that I may include…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Sep 27, 2023

Mr. Chair, I rise in strong opposition to H.R. 4365--the Department of Defense Appropriations Act, 2024. This offensive attempt at an appropriations bill is being used by Republicans to sneak…

Andrew S. Clyde
Rep. Andrew S. ClydeR-GA-9 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, my amendment to the FY24 Defense appropriations bill would simply prohibit the Department of Defense from using funds to administer, implement,…

Gerald E. Connolly
Rep. Gerald E. ConnollyD-VA-11 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, I rise today to offer an amendment regarding the Department of Defense workforce, which is particularly important as we face a shutdown.…

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Matt Gaetz
Rep. Matt GaetzR-FL-1 · Sep 27, 2023

Mr. Chairman, the American people need to observe what is happening on this floor. My colleague from Arizona is simply saying that in the $886 billion we are sending across the river to the Pentagon,…

Lauren Boebert
Rep. Lauren BoebertR-CO-3 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, I rise today to offer my amendment that utilizes the Holman rule to reduce the salary of Shawn Skelly, Assistant Secretary of Defense for…

Ed Case
Rep. Ed CaseD-HI-1 · Sep 27, 2023

Mr. Chair, I rise in opposition to this measure, and I must say to my friend and the chair of the subcommittee and to my majority colleagues that it is deeply frustrating and deeply regretful to have…

Sara Jacobs
Rep. Sara JacobsD-CA-51 · Sep 27, 2023

Mr. Chair, I rise today in a unique position to oppose this bill, especially section 8146. I am proud to represent San Diego, the largest military community in the country. I am also proud to serve…

Dan Crenshaw
Rep. Dan CrenshawR-TX-2 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, I yield myself such time as I may consume. Mr. Crenshaw, I rise today to offer amendment No. 137, which takes the simple yet important step of…

Andy Biggs
Rep. Andy BiggsR-AZ-5 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, I rise to speak in support of my amendment that cuts $300 million in funding for the Ukraine Security Assistance Initiative. I encourage all of…

H. Morgan Griffith
Rep. H. Morgan GriffithR-VA-9 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chairman, Section 8131 of this bill states: None of the funds made available by this Act may be used to fund any work to be performed by EcoHealth…

Chrissy Houlahan
Rep. Chrissy HoulahanD-PA-6 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chairman, defense-centric, small businesses, and the industrial base face unique challenges in creating new advanced production lines, scaling,…

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Harriet M. Hageman
Rep. Harriet M. HagemanR-WY · Sep 27, 2023

Madam Chair, I have an amendment at the desk. Madam Chair, I rise today in favor of my amendment No. 165 to H.R. 4365. My amendment prohibits the use of funds to pay regular remote and telework for…

Rosa L. DeLauro
Rep. Rosa L. DeLauroD-CT-3 · Sep 27, 2023

Mr. Chair, I rise today in opposition to this Defense Appropriations Bill. This bill is historically an opportunity to come together on a bipartisan basis to make investments that further American…

Stacey E. Plaskett
Rep. Stacey E. PlaskettD-VI · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, this amendment would strike Section 8149 from the bill, removing language banning the Department of Defense from classifying or facilitating the…

Morgan Luttrell
Rep. Morgan LuttrellR-TX-8 · Sep 27, 2023

Mr. Chair, I have an amendment at the desk. Mr. Chair, I rise today to offer an amendment to H.R. 4365, which would provide $15 million in funding for a plant-based or psychedelic clinical trial…

Pat Fallon
Rep. Pat FallonR-TX-4 · Sep 27, 2023

Madam Chair, I have an amendment at the desk. Madam Chair, I rise today to offer an amendment to reduce the salary of Ms. Kelisa Wing to $1. Until recently, Ms. Wing was with the Department of…

Marjorie Taylor Greene
Rep. Marjorie Taylor GreeneR-GA-14 · Sep 27, 2023

Madam Chair, I have an amendment at the desk. Madam Chair, today I will introduce an amendment that uses the Holman rule to slash the Secretary of Defense Lloyd Austin's salary to no more than $1,…

James P. McGovern
Rep. James P. McGovernD-MA-2 · Sep 27, 2023

Mr. Chair, this amendment provides $11 million within Army Research, Development, Testing and Evaluation, Line 44, for the Autonomous Vehicle Mobility project to modernize combat vehicles for…

Marcy Kaptur
Rep. Marcy KapturD-OH-9 · Sep 27, 2023

Mr. Speaker, our country has no greater responsibility than to protect and defend this Nation and its Constitution from all enemies, foreign and domestic, and I thank Ranking Member McCollum for…

Mike Garcia
Rep. Mike GarciaR-CA-27 · Sep 27, 2023

Mr. Chair, I thank Chairman Calvert for this historic bill, and I rise today in support of this very conservative DOD appropriations package. I remind the American people that the purpose of the…

Debbie Wasserman Schultz
Rep. Debbie Wasserman SchultzD-FL-25 · Sep 27, 2023

Mr. Chair, I rise to oppose this bill because it is incomprehensible to me that the majority would actually spend as much time--really, any time--on culture war riders and focusing on their extremist…

Elijah Crane
Rep. Elijah CraneR-AZ-2 · Sep 27, 2023

Mr. Chair, I rise in support of my colleague's amendment. As my colleague pointed out, we can't afford it. The gentlewoman just said that all the money that we are sending over there is for training…

Bill Text

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Introduced in HouseIssued May 9, 2023

I

118th CONGRESS

1st Session

H. R. 3147

IN THE HOUSE OF REPRESENTATIVES

May 9, 2023

Ms. Houlahan (for herself, Mr. Fallon, and Mr. Wittman) introduced the following bill; which was referred to the Committee on Armed Services

A BILL

To establish a defense industrial base advanced capabilities pilot program.

1.

Defense industrial base advanced capabilities pilot program

(a)

Establishment

(1)

In general

The Under Secretary of Defense for Acquisition and Sustainment shall carry out a public-private partnership pilot program to accelerate the scaling, production, and acquisition of advanced capabilities for national security by creating incentives for investment in domestic small businesses or nontraditional businesses to create a robust and resilient defense industrial base.

(2)

Goals

The goals of the public-private partnership pilot program are as follows:

(A)

To bolster the defense industrial base through acquisition and deployment of advanced capabilities necessary to field Department of Defense modernization programs and priorities.

(B)

To strengthen domestic defense supply chain resilience and capacity by investing in innovative defense companies.

(C)

To leverage private equity capital to accelerate domestic defense scaling, production, and manufacturing.

(b)

Public-Private partnerships

(1)

In general

In carrying out subsection (a), the Under Secretary shall enter into public-private partnerships, consistent with the phased implementation provided for in subsection (e), with for-profit persons using the criteria set forth in paragraph (2).

(2)

Criteria

The criteria referred to in paragraph (1) shall include the following:

(A)

The person shall be independent.

(B)

The person shall be free from foreign oversight, control, influence, or beneficial ownership.

(C)

The person shall have commercial private equity fund experience in the defense and commercial sectors.

(D)

The person shall be eligible for access to classified information (as defined in the procedures established pursuant to section 801(a) of the National Security Act of 1947 (50 U.S.C. 3161(a))).

(3)

Operating agreement

The Under Secretary and a person or persons with whom the Under Secretary enters a partnership under paragraph (1) shall enter into an operating agreement that sets forth the roles, responsibilities, authorities, reporting requirements, and governance framework for the partnership and its operations.

(c)

Investment of equity

(1)

In general

Pursuant to public-private partnerships entered into under subsection (b), a person or persons with whom the Under Secretary has entered into a partnership shall invest equity in domestic small businesses or nontraditional businesses consistent with subsection (a), with investments selected based on technical merit, economic value, and the Department’s modernization priorities.

(2)

Authorities

A person or persons described in paragraph (1) shall have sole authority to operate, manage, and invest.

(d)

Loan guarantee

(1)

In general

The Under Secretary shall provide an up to 80 percent loan guarantee, pursuant to the public-private partnerships entered into under subsection (b), with investment of equity that qualifies under subsection (c) and consistent with the goals set forth under subsection (a)(2).

(2)

Pilot program authority

The temporary loan guarantee authority described under paragraph (1) is exclusively for the public-private partnerships authorized under this section and may not be utilized for other programs or purposes.

(3)

Subject to operating agreement

The loan guarantee under paragraph (1) shall be subject to the operating agreement entered into under subsection (b)(3).

(4)

Use of funds

Obligations incurred by the Under Secretary under this paragraph shall be subject to the availability of funds provided in advance specifically for the purpose of such loan guarantees.

(e)

Phased implementation schedule and required reports and briefings

The program established under subsection (a) shall be carried out in two phases as follows:

(1)

Phase 1

(A)

In general

Phase 1 shall consist of an initial pilot program with one public-private partnership, consistent with subsection (b), to assess the feasibility and advisability of expanding the scope of the program. The Under Secretary shall begin implementation of phase 1 not later than 180 days after the date of the enactment of this Act.

(B)

Implementation schedule and framework

Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit an implementation plan to the congressional defense committees on the design of phase 1. The plan shall include—

(i)

an overview of, and the activities undertaken, to execute the public-private partnership;

(ii)

a description of the advanced capabilities and defense industrial base areas under consideration for investment; and

(iii)

implementation milestones and metrics.

(C)

Report and briefing required

Not later than 27 months after the date of the enactment of this Act, the Secretary shall provide to the congressional defense committees a report and briefing on the implementation of this section and the feasibility and advisability of expanding the scope of the pilot program. The report and briefing shall include, at minimum—

(i)

an overview of program performance, and implementation and execution milestones and outcomes;

(ii)

an overview of progress in—

(I)

achieving new products in production aligned with Department of Defense needs;

(II)

scaling businesses aligned to targeted industrial base and capability areas;

(III)

generating defense industrial base job growth;

(IV)

increasing supply chain resilience and capacity; and

(V)

enhancing competition on advanced capability programs; and

(iii)

an accounting of activities undertaken and outline of the opportunities and benefits of expanding the scope of the pilot program.

(2)

Phase 2

(A)

In general

Not later than 30 months after the date of the enactment of this Act, the Secretary may expand the scope of the phase 1 pilot program with the ability to increase to not more than three public-private partnerships, consistent with subsection (b).

(B)

Report and briefing required

Not later than five years after the date of the enactment of this Act, the Secretary shall provide to the congressional defense committees a report and briefing on the outcomes of the pilot program under subsection (a), including the elements described in paragraph (1)(C), and the feasibility and advisability of making the program permanent.

(f)

Termination

The authority to enter into an agreement to carry out the pilot program under subsection (a) shall terminate on the date that is five years after the date of the enactment of this Act.

(g)

Definitions

In this section:

(1)

Congressional defense committees

The term congressional defense committees has the meaning given the term in section 101(a)(16) of title 10, United States Code.

(2)

Domestic business

The term domestic business has the meaning given the term U.S. business in section 800.252 of title 31, Code of Federal Regulations, or successor regulation.

(3)

Domestic small businesses or nontraditional businesses

The term domestic small businesses or nontraditional businesses means—

(A)

a small business that is a domestic business; or

(B)

a nontraditional business that is a domestic business.

(4)

Free from foreign oversight, control, influence, or beneficial ownership

The term free from foreign oversight, control, influence, or beneficial ownership, with respect to a person, means a person who has not raised and managed capital from a person or entity that is not trusted and who is otherwise free from foreign oversight, control, influence, or beneficial ownership.

(5)

Independent

The term independent, with respect to a person, means a person who lacks a conflict of interest accomplished by not having entity or manager affiliation or ownership with an existing fund.

(6)

Nontraditional business

The term nontraditional business has the meaning given the term nontraditional defense contractor in section 3014 of title 10, United States Code.

(7)

Small business

The term small business has the meaning given the term small business concern in section 3 of the Small Business Act (15 U.S.C. 632).