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Cost Estimating NewsBrief: January 23, 2026
Congress pushes back on parts of DoD’s acquisition reform agenda
(Federal News Network) Congressional appropriators are backing the Pentagon’s push to speed up weapons buying, but warn that speed “must be factored alongside cost, performance, lethality and scalability.” The House released the final 2026 minibus funding package early Tuesday, which includes money for the Departments of Defense, Homeland Security, Labor, Education, Housing and Urban Development, Transportation and Health and Human Services. If passed, the bill would increase defense spending to more than $839 billion — roughly $8.4 billion above the White House’s fiscal 2026 request. House leaders plan to vote on the package later this week. Read More
House hearings highlight AI divides
(Route Fifty) Two House hearings illustrated the delicate dance federal lawmakers are doing over artificial intelligence and the role of state and local governments in regulating and supporting the technology. Administration officials came under fire for their efforts to preempt state and local regulation of AI. Those attempts accelerated late last year when President Donald Trump signed an executive order targeting states with “cumbersome” AI regulations and threatening their grant funding. That order, which could be subject to legal challenges, drew criticism from some Democratic lawmakers who called it executive overreach. Read More
Army to update its software directive, pursue new funding category for software
(Executive Gov) The Army is updating its software directive and scrapping its existing policy on software funding that has routinely hindered software projects across the service. Michael Obadal, the service’s undersecretary, said the new software directive will be released “in the coming weeks.” The service plans to revise the document annually to keep pace with the rapidly changing environment. Meanwhile, canceling its existing policy governing how the service pays for software will allow the Army to “apply the appropriate type of money to the applicable use case.” Read More
PepsiCo uses digital twins to trial plant changes
(Supply Chain Dive) PepsiCo is testing AI and digital twin technologies to assess their effectiveness in simulating, validating and optimizing plant and warehouse facilities before making any physical changes. The branded consumer packaged goods company has started an early-stage pilot of the technology with AI chipmaker Nvidia and global industrial technology company Siemens, according to a Jan. 6 press release. The companies aim to remake PepsiCo’s plant and supply chain operations through a multi-year collaboration. Read More
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