The $858 billion legislation includes a record $816.7 billion for the Department of Defence. Reuters
The $858 billion legislation includes a record $816.7 billion for the Department of Defence. Reuters
The $858 billion legislation includes a record $816.7 billion for the Department of Defence. Reuters
The $858 billion legislation includes a record $816.7 billion for the Department of Defence. Reuters

Biden approves record $858 billion US defence spending bill


Ellie Sennett
  • English
  • Arabic

President Joe Biden signed the National Defence Authorisation Act into law on Friday, officially approving a record funding bill for the Pentagon and US defence programmes.

The $858 billion legislation includes $816.7 billion for the Department of Defence, with most of the rest destined for national security programmes within the Department of Energy.

The amount far exceeds defence spending by another nation, and was $45 billion more than Mr Biden had asked for.

According to the National Priorities Project non-governmental organisation, America pays more for defence than the next nine countries combined.

Washington's 2021 budget accounted for almost 40 per cent of the world's total military spending, according to the Institute for Policy Studies.

“The Act provides vital benefits and enhances access to justice for military personnel and their families, and includes critical authorities to support our country's national defence, foreign affairs, and homeland security,” Mr Biden said.

The defence act, which runs to almost 4,500 pages, includes efforts to bolster Washington's support for Ukraine and the Nato alliance, re-emphasises a focus on China and mandates the Captagon Act aimed at combatting the Middle East's drug trade.

“Republicans in the House and Senate worked very hard with Democratic colleagues to make the bill a very bipartisan bill with very little poison pill provisions in it,” Republican Congressman French Hill, who spearheaded including the Captagon Act in the budget, told The National.

The budget's most contentious point was a provision repealing the military's Covid-19 vaccination mandate, pushed by congressional Republicans.

House Republican leader Kevin McCarthy praised the provision as “a victory for our military and for common sense.”

White House National Security Council spokesman John Kirby said the White House still backs a mandate, even though Mr Biden ultimately signed the bill rescinding it.

Mary Kaszynski, director of government relations for the Democrat-aligned veteran political action group VoteVets, said the repeal weakens military readiness.

“If you have one person who is vulnerable to disease, especially something that's extremely fatal and extremely contagious, that impacts the military readiness of the entire unit. They could be taken out by one case of Covid,” said Ms Kaszynski.

As of December of last year, 98 per cent of the force, including 96 per cent of active duty soldiers, were fully vaccinated, according to the Pentagon.

About 8,000 American service members were “severed” under the mandate over their refusal to comply, something Republicans touted as extreme and unfair.

The Army says 98 per cent of its active duty force had received at least one dose of the mandatory coronavirus vaccine. AP
The Army says 98 per cent of its active duty force had received at least one dose of the mandatory coronavirus vaccine. AP

Congress broadly increased the budget authorisation level by $45 billion over Mr Biden's budget request in part “to address the effects of inflation and accelerate implementation of the National Defence Strategy.”

That includes a significant pay raise for military personnel and civilian employees, with a 4.6 per cent salary boost, and additional funding to address inflation.

“American service members work night and day … They have families, they struggle with inflation just like everyone else, just like civilians. They deserve that pay raise every year,” Ms Kaszynski added.

The bill authorises a total of $12.6 billion to account for inflation impacts alone on purchases; $3.8 billion for inflation impacts on military construction projects; and $2.5 billion for inflation impacts on fuel purchases.

But those hikes did not come without criticism. Mr Biden himself highlighted other areas of concern after he signed the document.

Among them, a section that continues to bar the use of funds to transfer Guantanamo Bay detainees to the custody of certain foreign countries, and another that would continue to prohibit the use of such funds to transfer certain detainees to the United States.

“It is the long-standing position of the executive branch that these provisions unduly impair the ability of the executive branch to determine when and where to prosecute Guantanamo Bay detainees and where to send them upon release,” Mr Biden said.

Progressive Democratic Representative Barbara Lee critiqued the scope of the funding, and petitioned Washington stop “wasteful spending” on a department that “has never passed a single audit.”

The expansive budget also emphasised modernisation and further sharpened Washington's focus on China.

It increased US investments in the Pacific Deterrence Initiative, and authorised the Taiwan Enhanced Resilience Act of 2022, which is designed to increase security co-operation with Taiwan.

The budget also mandates co-ordination between Washington's intelligence community, State Department, and the Pentagon to produce a report for Congress on “the use of online social media platforms by entities designated as foreign terrorist organisations” for recruitment, fund-raising, and the dissemination of radicalising information.

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

The biog

Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball

THE SPECS

Engine: 3.5-litre supercharged V6

Power: 416hp at 7,000rpm

Torque: 410Nm at 3,500rpm

Transmission: 6-speed manual

Fuel consumption: 10.2 l/100km

Price: Dh375,000 

On sale: now 

Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

If you go...

Flying
There is no simple way to get to Punta Arenas from the UAE, with flights from Dubai and Abu Dhabi requiring at least two connections to reach this part of Patagonia. Flights start from about Dh6,250.

Touring
Chile Nativo offers the amended Los Dientes trek with expert guides and porters who are met in Puerto Williams on Isla Navarino. The trip starts and ends in Punta Arenas and lasts for six days in total. Prices start from Dh8,795.

Brief scores:

Toss: Australia, chose to bat

Australia: 272-9 (50 ov)

Khawaja 100, Handscomb 52; Bhuvneshwar 3-48

India: 237 (50 ov)

Rohit 56, Bhuvneshwar 46; Zampa 3-46

Player of the Match: Usman Khawaja (Australia)

Player of the Series: Usman Khawaja (Australia)

Women%E2%80%99s%20Asia%20Cup
%3Cp%3ESylhet%2C%20Bangladesh%3Cbr%3E%3Cbr%3E%3Cstrong%3EUAE%20results%3C%2Fstrong%3E%3Cbr%3ELost%20to%20Sri%20Lanka%20by%2011%20runs%3Cbr%3E%3Cbr%3E%3Cstrong%3EUAE%20fixtures%3C%2Fstrong%3E%3Cbr%3ETue%20Oct%204%2C%20v%20India%3Cbr%3EWed%20Oct%205%2C%20v%20Malaysia%3Cbr%3EFri%20Oct%207%2C%20v%20Thailand%3Cbr%3ESun%20Oct%209%2C%20v%20Pakistan%3Cbr%3ETue%20Oct%2011%2C%20v%20Bangladesh%3C%2Fp%3E%0A
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Roger Federer's 2018 record

Australian Open Champion

Rotterdam Champion

Indian Wells Runner-up

Miami Second round

Stuttgart Champion

Halle Runner-up

Wimbledon Quarter-finals

Cincinnati Runner-up

US Open Fourth round

Shanghai Semi-finals

Basel Champion

Paris Masters Semi-finals

 

 

UAE currency: the story behind the money in your pockets
The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
UAE currency: the story behind the money in your pockets

Overall head-to-head

Federer 6-1 Cilic

Head-to-head at Wimbledon

Federer 1-0 Cilic

Grand Slams titles

Federer 18-1 Cilic

Best Wimbledon performance

Federer: Winner (2003, 2004, 2005, 2006, 2007, 2009, 2012)
Cilic: Final (2017*)

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

RACECARD

6pm Emaar Dubai Sprint – Conditions (TB) $60,000 (Turf) 1,200m

6.35pm Graduate Stakes – Conditions (TB) $100,000 (Dirt) 1,600m

7.10pm Al Khail Trophy – Listed (TB) $100,000 (T) 2,810m

7.45pm UAE 1000 Guineas – Listed (TB) $150,000 (D) 1,600m

8.20pm Zabeel Turf – Listed (TB) $100,000 (T) 2,000m

8.55pm Downtown Dubai Cup – Rated Conditions (TB) $80,000 (D) 1,400m

9.30pm Zabeel Mile – Group 2 (TB) $180,000 (T) 1,600m

10.05pm Dubai Sprint – Listed (TB) $100,000 (T) 1,200m 

UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3Ethree%20three%20212.7kWh%20motors%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%201%2C000bhp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E15%2C600Nm%3Cbr%3E%3Cstrong%3ERange%3A%3C%2Fstrong%3E%20530km%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Dh500%2C000%2B%20est%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Eearly%202023%3C%2Fp%3E%0A
The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

HIV on the rise in the region

A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.

New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.

Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.

Access to HIV testing, treatment and care in the region is well below the global average.  

Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.

TO%20CATCH%20A%20KILLER
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EDamian%20Szifron%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shailene%20Woodley%2C%20Ben%20Mendelsohn%2C%20Ralph%20Ineson%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
About Krews

Founder: Ahmed Al Qubaisi

Based: Abu Dhabi

Founded: January 2019

Number of employees: 10

Sector: Technology/Social media 

Funding to date: Estimated $300,000 from Hub71 in-kind support

 

The specs

Engine: 3.8-litre twin-turbo flat-six

Power: 650hp at 6,750rpm

Torque: 800Nm from 2,500-4,000rpm

Transmission: 8-speed dual-clutch auto

Fuel consumption: 11.12L/100km

Price: From Dh796,600

On sale: now

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

How to help

Send “thenational” to the following numbers or call the hotline on: 0502955999
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6025 – Dh20
6027 – Dh 100
6026 – Dh 200

Updated: June 20, 2023, 12:20 PM