Billions Unleashed: OBBBA’s Sector Shake-Up

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, marks a major moment for American industries.

While tariff action is still playing out, what’s going largely unremarked is that, in many cases, the tough trade talk is having an intended effects: companies as diverse as Nvidia, Chobani, and John Deere are investing capital into re-shoring or expanding existing domestic facilities.

Likewise, the OBBBA is continuing that domestic-focused momentum by funding a range of infrastructure projects, allowing for 100% expensed factory/manufacturing facility development, implementing small biz support initiatives, and increasing rural agriculture support planning.

At the same time, with provisions ranging from tax deductions for auto loan interest to hefty investments in NASA and defense, OBBBA channels billions into sectors primed for growth.

As these policies take effect, industries like automotive, aerospace, and defense are set to thrive, creating a unique set of small-caps prepped for takeoff.

The OBBBA’s auto loan interest deduction allows buyers to write off up to $10,000 annually for loans on new, U.S.-assembled cars from 2025 to 2028. This move aims to make American-made vehicles more affordable, spurring demand at a time when high vehicle prices and interest rates present a challenge to prospective buyers.

Supporters, like Rep. Bill Huizenga, argue it supports American workers and fulfills a campaign promise.

However, critics, including Cox Automotive’s Jonathan Smoke, suggest the tax savings ~$400 on average) may not significantly boost sales.

Still, the automotive sector, particularly suppliers to U.S. manufacturers like GM and Ford, stands to benefit as production ramps up.

American Axle & Manufacturing is a leading supplier of driveline and drivetrain systems, integral to vehicles assembled in the U.S. With strong partnerships with major automakers (including GM and Ford), AXL is well-positioned to capitalize on increased demand driven by the OBBBA’s tax break.

Its diverse portfolio, including axles and electric drive systems, adds resilience, though the auto industry’s cyclical nature and supply chain risks present their own short-term challenges.

Standard Motor Products manufactures and distributes replacement auto parts, poised to benefit from rising car sales and maintenance needs spurred by the deduction. Its broad market reach makes it a solid player in the aftermarket space.

Trumps’ bill allocates $10 billion to NASA, funding projects like the Mars Telecommunications Orbiter, Lunar Gateway, and Artemis missions.

This investment signals a strong commitment to advancing space exploration, boosting the aerospace sector.

Companies involved in lunar landers, satellite communications, and rocket systems are likely to see increased contracts, though (as with most space stocks of all sizes) reliance on government funding introduces risks, as delays or budget shifts could impact project timelines and revenue streams.

Intuitive Machines is a trailblazer in lunar exploration, with contracts under NASA’s Commercial Lunar Payload Services program for Artemis missions. The OBBBA’s funding could accelerate its lunar lander projects, driving revenue growth.

Its first-mover advantage is a key strength, but the high-risk nature of space missions and dependence on NASA contracts warrant caution.

Redwire provides critical space infrastructure, from satellite components to in-space manufacturing. Its alignment with NASA’s expanded budget positions it for growth in the evolving space economy.

The OBBBA directs $17.7 billion to the Secretary of Defense for naval shipbuilding, covering advanced manufacturing, unmanned vessels, and workforce development.

This funding aims to strengthen the U.S. Navy’s capabilities, creating opportunities for defense contractors specializing in robotics and autonomous systems.

Nauticus Robotics leads in autonomous subsea robotics, aligning directly with the OBBBA’s focus on unmanned underwater vehicles. In Q2 2025, it completed projects for six customers in the wind and energy sectors and plans to generate revenue from its Aquanaut vehicle in Q3, capable of operating at depths up to 2,200 meters.

Its recent combination with SeaTrepid enhances its ability to deliver both traditional ROV work and autonomous solutions, positioning it for growth in naval applications, though reliance on government contracts and operational risks remain.

Kraken Robotics recently raised $115 million in a 2025 public offering to expand its global presence and enhance contract capabilities in the U.S. and Europe, including support for Anduril’s autonomous sub projects, sending shares to all-time highs on the bullish tailwinds. Its advanced sonar, optical sensors, and robotic systems for military applications align with the OBBBA’s defense priorities, although its Canada-centered operations could present a risk if tariff talks break down.