WASHINGTON—U.S. Senators Mitt Romney (R-UT) and Jeanne Shaheen (D-NH) today are introducing the Investing in Our Defense Act of 2024, bipartisan legislation to promote investment in technology vital to U.S. national security by strengthening the authorities of the Department of Defense (DOD) Office of Strategic Capital (OSC). The legislation would allow OSC to make limited equity investments in technology and assets critical to our defense—including critical minerals.
“The United States is lagging far behind China when it comes to investing in the development of innovative technology vital to our defense, in part because the Chinese Communist Party has full control of its economy,” said Senator Romney. “Our legislation will enhance the Department of Defense’s ability to invest in key technologies and would strengthen our national security and help us remain globally competitive with China.”
“The Department of Defense’s Office of Strategic Capital works to bolster our national security and make America more globally competitive, which is why I’m proud to introduce the bipartisan Investing in Our Defense Act with Senator Romney to ensure this office has the tools it needs to invest in technologies critical to our national security,” said Senator Shaheen.
Background:
With authoritarian control, the Chinese Communist Party (CCP) can force companies to develop technologies that serve the CCP’s military agenda. In a free market economy, the private sector on its own might not pursue investments in certain technologies with a need for patient capital. The Department of Defense (DOD)’s Office of Strategic Capital (OSC) was established by the Secretary of Defense in 2022 to attract and scale investment to national security priorities—specifically in 14 “Critical Technology Areas.”
The Investing in Our Defense Act of 2024 would:
- Provide OSC the ability to make limited equity investments—expanding the tools at its disposal—in key technologies and assets vital to U.S. national security, expanding the impact of OSC’s budget in a responsible manner and promoting innovation.
- Expand the Critical Technologies Areas to include critical minerals—a field critical to U.S. national security and DOD supply chains.
- This provision supports a Romney measure secured into law in the FY2024 NDAA that pushed the DOD to achieve critical mineral supply chain independence from China, Russia, and other competitors and adversaries.
- Grant OSC the same hiring and pay authorities as those given to the Development Finance Corporation so the OSC is able to attract personnel with specific skill sets and experience.
Full text of the legislation can be found here.