S.1071 - National Defense Authorization Act for Fiscal Year 2026: What does it mean for Serbia and the region?

Senate Bill 1071 in the 119th United States Congress is the National Defense Authorization Act for Fiscal Year 2026 (NDAA 2026), a comprehensive defense policy and funding bill that sets national defense priorities, authorizes appropriations for the Department of Defense, and includes related security provisions across multiple federal agencies, including State and intelligence components. It was introduced in the Senate, passed by the House of Representatives as of December 10, 2025, and signed by President Trump on December 18.

Key takeaways:

• The bill reinforces a heightened and sustained US focus on the Western Balkans, including a stronger, institutionalized effort to counter malign Russian and Chinese influence in the region.

• The bill does not obstruct the future launch of a strategic dialogue with Serbia, as it contains no legally binding language requiring or initiating such a process.

• It identifies reducing Russian energy influence in the Western Balkans as a strategic interest of the United States.

• The bill does not apply pressure on Serbia as a government and does not legally compel recognition of Kosovo.

• Concerns regarding Serbia’s 2023 elections are framed as a non-binding “Sense of Congress”, not a legal determination.

• The sanctions regime is mandatory but individualized, targeting specific individuals and organizations, not states.

• Sanctions apply to conduct involving corruption, regional destabilization, human rights abuses, or obstruction of key regional agreements.

• The measures consist of asset freezes and visa bans, not sanctions against Western Balkan governments or countries.

Key Congress Findings Regarding Serbia & Legal (Non)Compulsions

1. The bill asserts that reducing the Western Balkans’ dependence on Russian natural gas and fossil fuels is in the national interest of the United States.

2. The bill expresses the non-binding view of Congress that the EU-facilitated February 27, 2023, normalization agreement between Kosovo and Serbia is a positive step, urges both sides to make swift progress on its implementation, and states that further US engagement, including deeper bilateral ties, should follow such progress, with the ultimate goal of a comprehensive agreement based on mutual recognition.

3. The bill states that the December 17, 202,3, parliamentary and local elections in Serbia raised serious concerns about the state of democracy, citing OSCE/ODIHR findings of unjust electoral conditions and widespread procedural irregularities, while also warning that official accusations against largely peaceful protesters, opposition parties, and civil society risk undermining democratic freedoms and public safety.

Even though these findings are in the law’s content, because these statements are framed as “Sense of Congress” provisions, they do not create legally binding obligations under US law and instead reflect the political views and policy preferences of Congress. As such, they function as declaratory guidance and political signaling, rather than enforceable requirements or mandates for the executive branch

Obligations and Sanctions

These sanctions are legally binding under US law, as the bill explicitly states that the President shall impose them within a defined timeframe. They are targeted at “foreign persons,” meaning individual actors and entities such as political figures, officials acting in their personal capacity, companies, organizations, or networks connected to the Western Balkans.

The sanctions are not directed at states or governments as legal subjects, since the text deliberately avoids references such as “the Government of” or naming any country as a sanctioned entity. Sanctions are triggered if a covered person threatens peace, security, stability, or territorial integrity in the Western Balkans. They also apply to individuals or entities that undermine democratic processes, engage in corruption, commit serious human rights abuses, or obstruct the implementation of key regional agreements such as Dayton, Ohrid, Prespa, or UN Security Council Resolution 1244. Once triggered, the measures include asset freezes under US jurisdiction and comprehensive visa bans, enforced through the US Treasury (OFAC) and the State Department.

In short, this is a mandatory, individualized sanctions regime focused on specific conduct and personal responsibility, not a punitive framework against Western Balkan governments as states.

The bill mandates biennial reports on Russian and Chinese malign influence in the Western Balkans (by the US Department of State, in coordination with the Department of Defense, the Office of the Director of National Intelligence), detailing actors, methods, impacts, and countermeasures. By institutionalizing regular reporting, it strengthens sustained US attention and interagency engagement with the region.