What the National Defense Authorization Act means for San Diego

For the last 62 years, Congress has passed the National Defense Authorization Act (NDAA) which authorizes the United States military’s spending for the fiscal year ahead.

Released December 2022, the 2023 NDAA contains important provisions for the defense community nationwide including a 4.6 percent pay raise for military servicemembers and the Department of Defense (DOD) civilian workforce. It also provides greater opportunity for the DOD to increase affordable housing options, particularly in high-cost areas, by increasing the basic allowance for housing. The NDAA includes a cumulative $20 billion cushion to address the effects of inflation on military families, construction, operations, and procurement.

Specific to the San Diego region, this agreement delivers critical dollars for military construction and readiness including:

  • $94.8 million for military construction at Marine Corps Recruit Depot San Diego
  • $151.3 million for military construction at Naval Base San Diego
    • $9 million for military construction of the Floating Dry Dock Mooring Facility at Naval Base San Diego
    • $15.5 million for Pier 6 Replacement at Naval Base San Diego
  • $70 million for water and wastewater infrastructure in San Diego County

In addition, the FY23 NDAA also allocates $32.6 billion for Navy shipbuilding, including the procurement of 11 battle force ships. Local ship repair companies BAE Systems and General Dynamics NASSCO, which collectively employ more than 4,000, stand to benefit greatly, as San Diego is homeport to 24 percent of all Navy vessels.

Throughout the COVID-19 pandemic and challenging economic times, San Diego’s defense industry remained a pillar of our economy—accounting for a quarter of the region’s GRP. The San Diego Military Advisory Council’s (SDMAC) recent Military Economic Impact Report (MEIR) reports that in 2022, the defense sector supported approximately 360,200 jobs (23 percent of total jobs) in San Diego.

The military is woven into the fabric of San Diego’s economy, supporting thriving families and job growth for generations past and future.

learn more in our military Industry Profile