ALERT Act

1) WHAT HAPPENED: HR7613, the ALERT Act, was introduced February 20, 2026, by Rep. Sam Graves (R-MO). It requires DoD and DOT to mandate ADS-B Out as default for DoD helicopters, upgrades airborne collision avoidance systems (ACAS Xa), and improves ATC procedures. The bill was ordered to be reported by a 62-0 vote on March 26, 2026, indicating unanimous bipartisan committee support. It currently sits on the Union Calendar—one step before a floor vote in the House. 2) THE MONEY TRAIL: This is an authorization bill with no explicit funding amount; it sets policy mandates but does NOT appropriate dollars. Actual spending will require separate appropriations, likely through the annual NDAA and DOT/FAA funding bills. The economic impact is structural—compliance costs for DoD (a mandatory retrofit of thousands of military helicopters) will drive procurement spending regardless of a specific authorization line item. The bill's text is highly detailed, specifying ACAS upgrades, controller training, and ATC tool modernization. 3) STRUCTURAL WINNERS: RTX is the purest play—Collins Aerospace is the dominant supplier of ADS-B transceivers (TDL-900 series) and ACAS computers. BA faces upgrade costs on its own platforms but captures long-term production advantages. TXT benefits via Bell's rotorcraft dominance. LMT is omitted because its primary programs (F-35, missile defense) are not core to this bill's helicopter-focused mandate. 4) MARKET DATA CONTEXT: Over the past 30 days, RTX has declined 7.4% from broader defense sector weakness but remains a strong candidate for mean reversion given this catalyst. BA has gained 21.1% in 30 days, partially pricing in this legislative momentum. TXT is flat (+0.77%). Current prices: RTX $175.68, BA $230.72, TXT $88.14. The bill's unanimous committee vote provides a positive signal for future floor action, though no date is set. 5) TIMELINE: Next step is House floor consideration, then Senate companion. Given the 62-0 committee vote and 87 cosponsors, passage probability is high (estimated 70-80% in 2026). Implementation would occur over 2-5 years post-enactment.