On November 7, 2025, the U.S. Department of Defense announced a comprehensive overhaul of its procurement strategy named the “Acquisition Transformation Strategy” (ATS). The ATS envisions a wartime-oriented process that aims to prioritize rapid fielding to get equipment into the hands of warfighters, industrial-base expansion, and tighter coupling of requirements, resourcing, and acquisition execution. The accompanying directives signal a consequential restructuring of U.S. defense acquisition, requirements, and security cooperation processes as the Department aims to disestablish legacy joint requirements governance in favor of an integrated, budget-aligned model that is focused on speed, accountability, and mission outcomes. The new “Warfighting Acquisition System” will replace the existing “Joint Capabilities Integration and Development System,” creating both new opportunities and risks for federal contractors as they navigate shifting compliance expectations and material risk exposures in all aspects of the defense acquisitions process, including budget overruns, timely performance, and exportability of next-generation platforms. 

The Internal Revenue Service recently published limits for 2026 in Revenue Procedures 2025-19 and 2025-32. Below we have outlined health and welfare limits for 2026 and the changes in those limits from 2025.