Why It Matters

Booz Allen Hamilton Inc. is expanding its defense lobbying operation at a critical moment. The company’s engagement of Etherton and Associates Inc. adds specialized defense acquisition expertise as Congress debates unprecedented Pentagon modernization efforts.

The registration targets the FY26 National Defense Authorization Act and Department of Defense Appropriations—foundational legislation setting $901 billion in defense spending. Key bills like the SPEED Act could accelerate contract awards benefiting major contractors, while the Protecting AI and Cloud Competition in Defense Act directly impacts Booz Allen’s AI operations by mandating competitive procurement.

This isn’t Booz Allen’s first lobbying effort—the company has spent $13.68 million since 2014 combining in-house teams with external firms. However, hiring Moshe M. Schwartz—who has represented RTX, Lockheed Martin, and Boeing—represents a strategic upgrade focused on defense procurement cycles.

By the Numbers

Booz Allen has maintained sophisticated lobbying operations since 2014, spending $13.68 million through a hybrid model combining internal expertise with specialized external firms.

Internal operations spent $8.25 million across 31 filings from 2018-2025, focusing on cybersecurity, AI policy, and IT modernization. External firms included DLA Piper LLP ($1.44M), Innovative Federal Strategies LLC ($1.34M), and Monument Advocacy ($920K).

The new Etherton and Associates engagement adds defense acquisition focus through Moshe M. Schwartz, who has earned $5.5 million since 2020 representing major defense contractors including RTX Corp. ($460K) and Northrop Grumman Corp. ($670K).

The Agenda

Booz Allen hired Etherton and Associates to lobby specifically on the FY26 National Defense Authorization Act and FY26 Appropriations Act, focusing on government and defense issues. This represents a narrower focus compared to the company’s historical broader lobbying on cybersecurity, AI, and health IT modernization. Schwartz’s appointment signals specialized emphasis on the defense acquisition process.

Broader Context

The March 2025 registration comes as Congress authorizes approximately $901 billion in FY2026 defense spending while implementing sweeping acquisition reforms prioritizing "speed of relevance"—directly relevant to Booz Allen’s systems integration work.

AI has emerged as a strategic priority, with the Pentagon requesting $13.4 billion for AI and autonomy. However, barriers including decentralized data and complex acquisition processes exceeding one year create both opportunity and complexity for Booz Allen’s AI consulting business.

Cybersecurity requirements are tightening substantially. The Cybersecurity Maturity Model Certification rule became effective November 2025, making compliance mandatory for DoD contractors, creating consulting opportunities but also compliance obligations.

Congressional oversight of contractor costs has intensified, while over $130 billion in venture capital flowing to defense tech startups increases competition for traditional contractors.

Between The Lines

Congress is actively reshaping defense policy affecting Booz Allen’s business. Multiple hearings highlight priorities including "Reforming Defense Acquisition to Deliver Capability at the Speed of Relevance" and "Security to Model: Securing Artificial Intelligence to Strengthen Cybersecurity."

Key legislation includes the SPEED Act modernizing defense acquisition and the Federal Contractor Cybersecurity Vulnerability Reduction Act requiring vulnerability disclosure policies.

Congressional members signal heightened scrutiny. Rep. Chris Deluzio (D-PA) reintroduced the Best Price for Our Military Act targeting contractor pricing, while Rep. Alexandria Ocasio-Cortez (D-NY) proposed amendments to cancel certain DoD AI contracts.

Competitive Landscape

Several major firms are lobbying on the same FY2026 legislation. Microsoft Corp. focuses on the FY26 NDAA, DoD Appropriations, and cybersecurity bills. Shield AI Inc. maintains substantial in-house lobbying on NDAA, appropriations, and AI issues. MediaTek USA Inc. lobbies on semiconductor supply chain issues within the NDAA.

The Bottom Line

Booz Allen’s hiring of Etherton and Associates brings specialized defense acquisition expertise during significant Pentagon procurement reform and expanded AI funding. While defense industry lobbying is routine, the timing reflects heightened congressional scrutiny of contractor performance alongside sustained modernization investment. The move positions Booz Allen to influence debates over defense spending allocation and evolving cybersecurity compliance standards.

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