ALFA Notes: Congress In Session

Amidst the extensive activity in the Senate to confirm President Trump’s cabinet and sub-cabinet officials, legislative hearings can be easily missed — this is certainly the case with large, legacy media outlets. Yet, the sequence in which committees start holding hearings on legislative business should be noted. It signals the priorities that each committee and chamber intend pursue throughout the Congress.

So, when the first legislative hearing from the Senate Armed Services Committee was “to receive testimony on defense innovation and acquisition reform” observers understand that challenging the status quo at the Pentagon is matching political will.

The Vice President recently articulated the need for this reform on Fox News recently.

At the hearing, executives from Divergent Industries and Palantir Technologies, and the Former Assistant Secretary of the Navy Research, Development, and Acquisition outlined ideas to modernize our nation’s defense capabilities.

Divergent’s Nathan Diller cited mobilizing dual-use manufacturing for DoD, using America’s software advantage for a hardware advantage, and scaling innovation successes.

Palantir’s Shyam Sankar emphasized the need to end the cost-plus mentality and stress a commercial-first mindset. Of note, the Federal Acquisition Streamlining Act has been law since 1997. The problem is that it simply isn’t enforced.

And the Honorable James F. Geurts stated: “The industrial base which has served us so well since WWII is struggling to adapt at scale to the changing global conditions. The accumulation of decades of statutes, regulations, processes, special interests, and outdated systems have further hobbled the ability of the Department to rapidly field new capability at operationally relevant timelines. The risk averse culture which permeates much of the existing bureaucracy, with unclear and overlapping responsibilities across numerous departments and organizations, clouds accountability and cripples timely and effective decision making at all levels.”

The positions and priorities expressed at this hearing are well established and build off of the Chairman’s recently released FORGE Act. Over the coming weeks and months, as the Trump administration continues to identify and implement efficiencies in our government, the early marker laid by committees like the Senate Armed Services will be pivotal to effectuating the change necessary to keep our military and country at the leading edge of technological innovation.

Quote of the Week:

"America should be a country of producers. We are more than just what we consume. … If the United States does not have a robust manufacturing base and innovation economy, it will have little in the way of hard power to deter conflict and protect Americans." - USTR Nominee Jamieson Greer

Other Notable Committee Action — SCIENCE

A committee that is positioned to draw significant attention this congress is the Space, Science, and Technology Committee. This week, it held it’s first hearing and here are a few highlights to take away from it:

1. Energy Infrastructure for AI — One witness testified: "Large AI data centers will soon need onsite energy generation on the order of gigawatts."

2. Slashing Research Bureaucracy — Principal investigators spend over 40% of their time on administrative compliance. Reducing this burden could effectively increase research output without spending an extra dollar.

3. Rethinking Research Security — Former Air Force Secretary and current UTEP President, Heather Wilson questioned whether the FBI should continue leading counterintelligence for academic research: "Law enforcement is not the same as intelligence analysis... I don't think it's worked, and I think it's time to re-look at that." This fresh perspective could help better protect American innovation while maintaining academic openness.

4. A National IP Bank — To pair with Treasury Secretary’s comments about monetizing the “asset side of the balance sheet”, Wilson also shared an innovative idea in the federal research field: "What if there was a national IP bank for any federally funded research, and we didn't rely on distributed small single person offices at universities to try to get the technology out into the ecosystem?"

5.  State-Federal Research Partnerships — Wilson highlighted Texas's $6 billion investment in cancer research and new Space Commission as examples of how states can amplify federal research dollars. "It doesn't just have to be the federal government that does it," she noted, suggesting deeper state-federal collaboration. And as we see states like Texas and Ohio get more competitive to strengthen their technological footprint, this interstate arms race could accelerate America’s footing.

This hearing demonstrated that maintaining American leadership in science and technology isn't just about spending more money - it's about spending smarter and modernizing our approach. From rethinking how we handle intellectual property to ensuring we have the infrastructure to power next-generation AI, these ideas kicked off the conversations Congress will be having to strengthen America's innovation ecosystem.

Thanks for reading and have a great week!