Defense Contract Inflation Adjustment Act of 2023

This bill extends the deadline for adjusting defense contracts due to inflation from December 31, 2023, to December 31, 2024. It also clarifies that specific funds designated for inflation adjustments may be used for this purpose. The change directly affects defense contractors and the Department of Defense, allowing them to continue modifying contract payments to account for rising costs through 2024. The bill makes no new policy changes but extends an existing temporary authority.