Office of Strategic Capital (OSC)

Abstract

This program supports the Department's initiatives to Build Sustainable and Long-Term Advantage and Build a Resilient Joint Force. The Office of Strategic Capital (OSC) program will use available financial tools, including grants, contracts, direct loans, loan guarantees, to increase private sector investments in critical technologies needed to solve U.S. national and economic security challenges. Specifically, the OSC program will invest in supply-chain critical technologies to address both access to capital and cost of capital market failures. As a result, OSC investments will increase the pace of commercialization, manufacturing, and infrastructure investments in the critical technology supply base. In addition, OSC will provide an alternative source of capital to our global competitors who seek to influence and leverage private capital to advance their technology objectives counter to U.S. interests. Current peer competitor action requires urgent United States Government response to attract and scale investment in support of national and economic security. Specifically, the program will: • Increase deep technology private capital investment to enhance the commercialization of DoD and United States Government (USG) Science & Technology investments; • Increase commercialization, manufacturing, and infrastructure to scale domestic production and secure the national security supply chain for industries of the future; • Finance industrial transformation to mobilize suppliers to support emerging needs and industries of the future; • Co-invest with partners and allies in international critical technology companies, where practical, to support international interoperability as well as domestic integration and scaled production; and • Accelerate the transition and fielding of capabilities that meet service priorities. The programs will be executed through DoD services and interagency partners.

Document Details

• Document Type: R2 Budgetary Justification
• Publication Date: Oct 01, 2025
• Source ID: 0901579D8Z_4_0400_PB_2025
• Change Summary Explanation: FY 2025 decrease of -$13.192 million is due to: -$11.855 million re-alignment to Operations and Maintenance (O&M) project USRE_2695 for Office of Strategic Capital (OSC) contractor and operational requirements. -Reduction of $1.337 million was applied to meet DoD overall funding reductions, which were spread to mitigate impact. -FY 2025 funding increase of $0.268 million is for Economic Assumptions. The increase of $128.000 million in FY 2026 is for Industrial Base and Innovation in order to sustain the Office of Strategic Capital.
• Service Agency Name: Office of the Secretary Of Defense

Entities

Organizations

• Office of the Secretary of Defense

Tags

Readers

• Defense Technology Research and Development.