The House Armed Services Committee (HASC) has officially moved to advance the Fiscal Year 2027 National Defense Authorization Act (NDAA), incorporating a series of robust reporting requirements and policy directives designed to fortify the domestic textile supply chain and ensure stricter adherence to the Berry Amendment. This legislative milestone, reached on June 5, 2026, represents a significant victory for the National Council of Textile Organizations (NCTO) and the broader U.S. manufacturing sector. The provisions included in the House version of the annual defense bill aim to close long-standing loopholes, increase transparency in Department of Defense (DOD) procurement, and ensure that the American military remains equipped with products manufactured by American workers using domestic materials.
The Berry Amendment, a cornerstone of U.S. defense procurement policy since its inception in 1941, mandates that the Department of Defense prioritize the purchase of textiles, clothing, and footwear that are 100 percent grown, reprocessed, or produced in the United States. While the law has been a pillar of support for the domestic industrial base for decades, industry advocates and lawmakers have increasingly raised concerns regarding the use of waivers, the exploitation of small-purchase thresholds, and the entry of non-compliant goods into the military supply chain. The FY 2027 NDAA seeks to address these vulnerabilities through a comprehensive set of oversight mechanisms.
Strengthening the Berry Amendment through Enhanced Oversight
Central to the HASC’s legislative package is a series of reporting requirements that demand greater accountability from various divisions within the Department of Defense. One of the most critical components of the bill is the directive for the DOD to conduct a thorough assessment of waiver usage under the Berry Amendment. Historically, waivers have been granted when domestic production is deemed insufficient or when costs are considered prohibitively high. However, the domestic textile industry has often argued that these waivers are sometimes issued without exhaustive market research, undermining the intent of the law. By requiring a formal assessment, Congress intends to ensure that waivers are the exception rather than the rule.
Furthermore, the legislation calls for an evaluation of supplier verification and auditing practices. In an increasingly complex global economy, the risk of fraudulent labeling—where foreign-made goods are misrepresented as domestic—has become a growing concern for national security. The HASC is directing the DOD to outline specific actions to align its contracting strategies with the long-term health of the domestic defense textile industrial base. This includes a focus on ensuring that prime contractors are held accountable for the origin of materials used by their subcontractors.
The Small Purchase Threshold and Economic Resilience
A pivotal technical change proposed in the FY 2027 NDAA involves the "small purchase" exception. Currently, the Berry Amendment allows for the procurement of foreign textiles if the contract value falls below $150,000. Industry experts have noted that this threshold allows for "death by a thousand cuts," where numerous small contracts are awarded to foreign entities, cumulatively depriving the U.S. textile industry of millions of dollars in revenue.
The committee’s directive asks the DOD to examine the feasibility of narrowing this exception from $150,000 down to $20,000. This shift, specifically targeted at textiles and apparel, would significantly broaden the scope of the Berry Amendment, bringing a larger volume of military spending back to domestic soil. By lowering this threshold, the federal government signals its commitment to supporting small-to-medium-sized American manufacturers who often form the backbone of the military’s specialty textile needs.
In addition to the purchase threshold, the bill mandates an examination of flame-resistant (FR) textile production capacity. FR textiles are critical for the safety of service members in combat environments, and the resilience of this specific niche is vital for national security. The report will assess whether the current domestic capacity is sufficient to meet surge requirements during times of conflict and what steps are necessary to protect this specialized manufacturing capability from foreign competition.
Industry Leadership and Bipartisan Congressional Support
The advancement of these provisions has been met with strong approval from the National Council of Textile Organizations (NCTO), the primary trade association representing the entire spectrum of U.S. textiles, from fiber to finished sewn products. NCTO President and CEO Kim Glas highlighted the importance of the House Armed Services Committee’s actions in a statement following the vote.
“We applaud the HASC for passing the FY 2027 NDAA and including provisions that, if enacted, will lead to increased government purchases of more Made in America textiles and bolster domestic manufacturing to meet the mission-critical needs of our Armed Forces,” Glas stated. She specifically praised the leadership of Congressman Don Davis (D-NC) and Congressman Pat Harrigan (R-NC), who serve as co-chairs of the House Berry Amendment Caucus. Their bipartisan collaboration has been instrumental in keeping the health of the textile industry at the forefront of the defense debate.
According to Glas, the U.S. textile industry contributes approximately $1.8 billion in advanced materials and components to the military annually. These range from high-tech synthetic fibers used in ballistic vests to the traditional wool and cotton blends used in service uniforms. “These reporting requirements send an important signal that Congress recognizes the strategic value of maintaining a strong domestic textile supply chain and is committed to protecting it,” Glas added.
Chronology of the FY 2027 NDAA Legislative Process
The path to the June 5th committee passage began earlier in the year with a series of subcommittee hearings focused on industrial base readiness. Throughout March and April 2026, witnesses from the manufacturing sector testified before the HASC Subcommittee on Readiness, emphasizing the fragility of domestic supply chains following years of global trade volatility.
In May 2026, the House Berry Amendment Caucus held a series of briefings to educate fellow lawmakers on the nuances of textile procurement. These briefings highlighted the "non-Berry compliant" Army service uniforms that had allegedly entered the system, sparking a debate over the rigor of current DOD inspections. This specific issue was subsequently included in the NDAA reporting requirements, with the committee demanding a full examination of how non-compliant uniforms could have been procured.
Following the HASC’s approval, the bill will now move to the House floor for a full vote. Simultaneously, the Senate Armed Services Committee (SASC) is expected to deliberate on its version of the NDAA. The reconciliation process between the House and Senate versions—known as the conference committee—will take place in late 2026, with the goal of sending a final, unified bill to the President’s desk before the end of the calendar year.
Supporting Data: The Economic Impact of the U.S. Textile Industry
The push for a stronger Berry Amendment is grounded in the economic reality of the American textile sector. Despite decades of offshoring in the consumer apparel market, the U.S. textile industry remains a powerhouse in the industrial, medical, and defense sectors.
According to data from the NCTO and the Department of Commerce:
- The U.S. textile and apparel industry’s supply chain employed over 500,000 workers as of 2025.
- The industry’s shipments were valued at nearly $65 billion annually.
- The U.S. is the world’s third-largest exporter of textile products.
- The military market accounts for a stable and vital portion of the domestic industry’s revenue, particularly for companies specializing in high-performance and protective fabrics.
The $1.8 billion in military contracts supports thousands of high-skill jobs in states like North Carolina, South Carolina, Georgia, and Pennsylvania. These jobs are often located in rural communities where the textile mill is a primary employer. By ensuring that these contracts remain domestic, the NDAA provides a measure of economic stability that allows companies to invest in new technologies, such as 3D weaving, smart fabrics with embedded sensors, and sustainable recycling processes for military gear.
National Security and Strategic Autonomy
Beyond economics, the strengthening of the Berry Amendment is increasingly viewed through the lens of "strategic autonomy." The COVID-19 pandemic and subsequent geopolitical tensions have exposed the dangers of relying on adversarial nations for critical supplies. In the context of national defense, the ability to produce uniforms, parachutes, tents, and personal protective equipment (PPE) within U.S. borders is considered a "no-fail" mission.
The examination of non-Berry compliant Army service uniforms is particularly poignant in this regard. If the U.S. military cannot guarantee the origin of its own uniforms, it raises questions about the integrity of more complex systems. The FY 2027 NDAA seeks to restore that integrity by forcing the DOD to look inward at its own procurement flaws.
The focus on flame-resistant textile capacity also addresses a specific vulnerability. FR materials require specialized chemical treatments and specific fiber blends. If the domestic capacity for these materials were to erode, the U.S. would be forced to rely on foreign suppliers for the very gear that protects soldiers from thermal threats and improvised explosive devices (IEDs).
Future Implications and the Path Forward
As the FY 2027 NDAA moves through the legislative pipeline, the textile industry will be watching closely to ensure that the House’s reporting requirements are not diluted in the final version of the bill. The inclusion of these provisions is a testament to the persistent advocacy of the NCTO and the recognition by Congress that "Made in America" is not just a slogan, but a requirement for national resilience.
The potential reduction of the small purchase threshold to $20,000 could serve as a model for other federal agencies beyond the Department of Defense. If successful, this policy could influence the broader "Buy American" initiatives championed by various administrations, leading to a more comprehensive "whole-of-government" approach to domestic procurement.
In the coming months, the NCTO plans to work with both House and Senate lawmakers to ensure the final legislation retains these critical measures. The goal remains clear: to foster a robust, innovative, and secure domestic textile industrial base that can meet the needs of the American warfighter today and in the future. The passage of the FY 2027 NDAA by the House Armed Services Committee marks a definitive step toward achieving that objective, reinforcing the principle that the defense of the nation begins with the strength of its domestic manufacturers.
