In its FY2026 plan to oppose China's strategic posture, the Pentagon puts hypersonic missile defence, long-range deterrence, and airpower recalibration at the top of its list of priorities.
The United States State Department has asked for a historic $961.6 billion defence budget for fiscal year 2026. This is the greatest military funding request in American history. The package shows a change in strategy towards strengthening homeland security, combating China's developments in defence, reviving the defence-industrial base, and enhancing the welfare of troops.
Four priority areas dominate the plan: accelerated hypersonic weapons development, expansion of space-based early warning, recalibration of tactical airpower, and modernisation of strategic deterrent forces.
The Pentagon is investing $3.9 billion in hypersonic weapons across all services, positioning them as key enablers of deterrence and future strike capability. The Army's Long-Range Hypersonic Weapon (LRHW) is still being used in full-scale operations, while the Navy is working on adding hypersonic glide vehicles to Virginia-class submarines. On the other hand, the Air Force has ended the AGM-183 ARRW program because it kept failing tests and going over budget. Officials hinted to a shift towards systems that are more survivable and flexible, maybe inside the NGAD ecosystem or new joint missile programs.
Space is becoming central to the U.S. early warning architecture. The FY26 proposal confirms the cancellation of the E-7 Wedgetail airborne early warning programme due to survivability concerns, with resources redirected to orbital surveillance systems. These efforts align with the $25 billion Golden Dome for America initiative, a next-generation missile defence network combining space-based sensors, high-altitude interceptors, and integrated command infrastructure. Golden Dome is designed to counter complex threats such as hypersonic glide vehicles and long-range cruise missiles.
Pentagon lowers the number of F-35A jets it acquires from 74 to 47 due to maintenance and logistics costs to keep them available for operations. On the other hand, the saviour of US Air Force against F-35s, the cost of the F-15EX Eagle II is going up to $3.1 billion. This can be translated as return to legacy fourth-generation multirole fighters. Pentagon wants to stabilise its power with the fifth and fourth generation fighters by establishing a balance between mission flexibility, cost, and operation readiness.
Meanwhile, the Navy’s airpower ambitions face a deliberate slowdown. While the Air Force’s sixth-generation NGAD platform receives $3.5 billion for development, the Navy’s F/A-XX receives just $74 million—mostly for design refinement. Pentagon officials have opted to concentrate industry resources on NGAD, citing industrial base limitations and the need for a focused path to sixth-gen capability. Carrier air wings will continue to rely on the F-35C and F/A-18E/F Super Hornets through the decade.
Beyond air and space, the FY26 proposal allocates $60 billion for nuclear triad modernisation, including Sentinel ICBM development, B-21 Raider bomber production, and Columbia-class SSBN construction. The Navy also receives $47.4 billion for 19 new ships, including Columbia and Virginia-class submarines, Arleigh Burke destroyers, amphibious platforms, and auxiliary vessels. While three ships are funded through the base budget, the rest depend on reconciliation funding.
The Army, meanwhile, is undergoing sweeping transformation. FY26 terminates legacy programmes such as the M10 Booker light tank, Grey Eagle UAV, Joint Light Tactical Vehicle (JLTV) procurement, and the Improved Turbine Engine Program (ITEP). These divestments free up roughly $6 billion redirected toward loitering munitions, long-range fires, networked communications, and command structure optimisation. Five brigade combat teams will receive new strike and sensor capabilities, supporting a shift to multi-domain operations.
This budget cycle underscores a significant doctrinal shift: from quantity-focused legacy procurement to survivable, multi-domain force design—underpinned by hypersonic mobility, orbital awareness, and sustainable airpower.
This section has been prepared as an executive summary. You may continue reading below or access the full version as a downloadable PDF provided further down the page.
The Budget Draft in Detail: key points
“Golden Dome for America” Air Defence System – $25 Billion: An initial $25 billion investment is planned for Golden Dome, a new nationwide, next-generation layered air and missile defence initiative. This program aims to create an integrated defence network with space-based sensors and interceptors to counter advanced threats such as cruise missiles, hypersonic glide vehicles, and even orbital bombardment systems. The program’s primary goal is to intercept enemy ballistic missiles, hypersonic gliders, and advanced cruise missiles (including those with orbital trajectories) both inside and outside the atmosphere. The US President Trump instructed Golden Dome to commence on January 27, 2025. It is expected to be fully operational in five to ten years.
$60 billion to bring the Nuclear Triad up to date: To upgrade the three elements of the strategic nuclear deterrent—land-based missiles, submarine-launched missiles, and bomber aircraft—about $60 billion is set aside. This allocation will finance various programmes, such developing the new LGM-35A Sentinel intercontinental ballistic missile (ICBM) system, building Columbia-class ballistic missile submarines, and producing B-21 Raider stealth bombers that can carry nuclear weapons.
The Air Force is spending $3.1 billion to buy the F-15EX Eagle II, which is the newest variant of the F-15 fighter. The money in this budget will pay for up to 24 of these multi-role F-15EX planes. They are meant to replace outdated F-15C/D variants.
Next Generation Air Dominance (F-47 NGAD) Program – $3.5 Billion: The Air Force’s future sixth-generation fighter program, Next Generation Air Dominance (NGAD), is slated to receive about $3.5 billion in R&D funding. Referred to under the prototype codename “F-47,” NGAD is an ambitious project; however, the administration determined that the aerospace industry cannot support two new fighter programs simultaneously. Thus, they have decided to go “full throttle” on NGAD. In this strategy, the Navy’s own next-generation fighter initiative, F/A-XX, is being put on the back burner (only $74 million in design funding is allocated to F/A-XX in 2026), with primary emphasis on successfully developing the NGAD platform. This decision also means retiring F/A‑18 Super Hornet and leaving F-35C alone.
19 New Warships – $47.4 Billion: The FY2026 budget draft includes funding for 19 new warships, with a total of $47.4 billion allocated. There has been a substantial rise in Navy construction lately. the US Navy does not mention Chinese threat but their investment in navy cannot be ignored. (US depends on the quality of its ships believing that they are superior to Chinese ones. The quality of work performed at outdated shipyards will be also mentioned at upcoming pages.) For example, the Navy built five ships in FY2025 and eight ships in FY2024. The new ships that are planned for 2026 include one Columbia-class ballistic missile submarine (SSBN), two Virginia-class attack submarines (SSN), two Arleigh Burke-class guided missile destroyers (DDG), one LPD amphibious transport dock ship, one LHA amphibious assault ship, two ocean surveillance ships, and nine medium size landing ships.
The Navy intends to finance only 3 of these ships through the regular base budget, with the remaining 16 funded via a reconciliation law package in Congress.
Nuclear Shipyard Efficiency and Infrastructure – ~$2.5 Billion: About $2.5 billion is earmarked to upgrade the Navy’s nuclear submarine shipyards and maintenance infrastructure. The U.S.’s four major public naval shipyards — Norfolk, Pearl Harbor, Portsmouth, and Puget Sound — have an average age of 107 years and they need to be modernized first. The budget includes roughly $989 million allocated for the Shipyard Infrastructure Optimization Plan (SIOP) and $2.2 billion for modernizing Marine Corps facilities. (Note: The Defence Department’s budget summary mistakenly listed this item as $2.5 million; it is understood to be $2.5 billion.)
Conventional Munitions Production – $6.5 Billion: In light of the war in Ukraine and potential tensions with China, increasing conventional munitions stockpiles has become a top priority. The 2026 budget provides $6.5 billion to ramp up production of assorted conventional munitions. This investment will fund rapid replenishment of artillery shells, smart bombs, guided missiles, and other ordnance, while also supporting the defence industry’s manufacturing capacity.
Hypersonic Weapon Systems: The U.S. is investing $3.9 billion on hypersonic weapons projects to stay up with Russia and China in hypersonic missile technology. This allocation helps pay for the research, development, and testing of hypersonic missiles that can be deployed from land systems, sea, and air platforms. The Army's Long-Range Hypersonic Weapon (LRHW) program is one example, as are analogous programs in the Navy and Air Force.
These systems, which travel at speeds of Mach 5 and above, are being accelerated into the arsenal to strengthen deterrence.
Cybersecurity and Networks – $15.1 Billion: The budget draft allocates $15.1 billion to protecting U.S. interests in cyberspace and ensuring the integrity of military networks across all services. This involves making the Defence Department's own networks and communications systems more secure against cyber attacks, as well as improving both cyber defence and offensive cyber capabilities. Investments will go towards cyber technologies that use AI, making military networks more resilient, and protecting important infrastructure.
Supply Chain and Industrial Capacity Improvements – $3.8 Billion (Total): A total of $3.8 billion is targeted at fixing defence supply chain vulnerabilities and expanding national industrial capacity. Of this amount, $1.3 billion is allocated to directly improving defence-sector supply chain infrastructure, and $2.5 billion is for capacity expansions at missile and munitions production facilities. The goal is to reduce dependence on foreign sources for critical systems, break production bottlenecks, and establish a defence industrial base that can be sustained in a prolonged conflict. Additionally, through the Pentagon’s Office of Strategic Capital, a $1.2 billion loan program will be funded to encourage private investment in defence-related strategic projects. This program plans to offer low-cost loans and guarantees to draw private-sector interest toward technologies deemed important for national security.
In addition to the above items, the budget draft includes a 3.8% pay raise for military personnel and dedicates $5 billion for new housing for single enlisted service members (barracks and dormitory improvements). It also features record-high funding – roughly $160 billion in total – for military readiness (training, exercises, maintenance, and operational preparedness), aiming to elevate force readiness to an all-time peak.
Budget Breakdown and Overall Size
The 2026 military budget is made up of two parts: the normal base budget and extra "reconciliation" money. The White House asked for around $893 billion for the base military budget in FY2026. Congress is also thinking about adding $113 billion through a one-time reconciliation package, which would bring the total to $961.6 billion. This method gives defence spending a big one-time boost, but it's not apparent how these high levels of financing would be kept up in the years to come.
By appropriation category, the budget distribution is as follows:
• Military Personnel: $184 billion ($183 billion base + $689 million via reconciliation).
• Purchasing: $205 billion ($153 billion from the base and $52 billion from reconciliation).
• Research, Development, Test, and Evaluation (RDT&E): $1.2 billion (all from the base budget). (Note: This number probably only shows the part of the budget that is not part of the reconciliation funds or a certain subcategory. The overall R&D budget is really over $140 billion; for example, the previous administration's FY2026 plan called for $142.7 billion for RDT&E.)
• Operations and Maintenance (O&M): $107 billion ($97 billion base plus $9 billion through reconciliation).
• Military Construction (MilCon): $19.8 billion ($18.9 billion base plus $842 million through reconciliation).
The Army needs $197.4 billion, the Navy (including the Marine Corps) needs $292.2 billion, the Air Force and Space Force (combined) need $301.1 billion, and the Department of Defence (DoD) needs $170.9 billion for all of its programs. The Pentagon verified these numbers in formal budget briefings.
The FY2026 budget also gives an extra $5 billion to help keep the southern border safe. This money will pay for the costs of sending troops to the U.S.-Mexico border and helping in the detention of migrants. To make the most out of its resources, Defence Secretary Pete Hegseth told the Department in February 2025 to save and move $30 billion inside its own budget.
As a result, money trimmed from lower-priority or inefficient areas has been redirected to high-priority programs. Pentagon officials say this cost-efficiency initiative improved operational effectiveness and brought added discipline to the FY2026 budget.
In the sections below, the budget’s major spending areas are broken down into four categories – Air Defence Systems, Naval Systems, Air Platforms (Aircraft), and Army Modernization – highlighting the highest-cost projects in each, along with any program cancellations of note.
Air Defence Systems – Highest-Cost Projects
• “Golden Dome” National Missile Defence System ($25 billion): This broad new missile defence program is designed to protect the U.S. homeland with an integrated, multi-layered shield. Golden Dome will unite land-, sea-, air-, and space-based sensors and interceptors into a single network for real-time threat tracking and interception. Its primary objective is to shoot down hostile ballistic missiles, hypersonic glide vehicles, and advanced cruise missiles (even those that might follow orbital trajectories) both within and outside the Earth’s atmosphere. In the FY2026 budget draft, an initial $25 billion is allocated to Golden Dome, funding R&D and initial deployment of components such as space-based early-warning satellites, interceptor satellites, and next-generation command-and-control infrastructure. Golden Dome was initiated by President Trump’s order on January 27, 2025, and it is expected to take 5–10 years to reach full operational capability.
• Counter-Unmanned Aerial System (Counter-UAS) Defence Technologies ($3.1 billion): With the rising threat of small drones and drone swarms, the Pentagon plans to invest about $3.1 billion in FY2026 to develop and field technologies for countering unmanned aerial systems. This budget will be used to improve current air defence systems by adding new sensors and interceptors that can find and destroy enemy drones. It will also be used to create new anti-drone technologies, such as directed-energy weapons and electronic warfare tools. For instance, the USS Gerald R. Ford, the newest aircraft carrier in the U.S. Navy, got more anti-drone capabilities when it went into service in 2025. Reports say that American warships in the Middle East have been fighting hostile drones every day.
The investment in Counter-UAS aims to quickly field “drone hunter” solutions so that expensive missiles won’t have to be expended to down cheap enemy drones.
• Space-Based Early Warning and Command Systems: The U.S. is shifting toward space-based sensors for early warning and command & control in air defence, rather than relying solely on traditional radar aircraft. Reflecting this shift, the Air Force’s next-generation AWACS aircraft program, the E-7 Wedgetail, was cancelled in the 2026 budget. Officials cited concerns about the survivability of a large radar plane in contested airspace and its high costs. Instead, the mission of detecting and tracking aerial threats will be handled by satellites and ground-based systems. Funds originally marked for the Wedgetail are being redirected to space-based early warning satellites (to detect missile launches from space) and advanced battle management software. This includes upgrades to the existing Overhead Persistent Infrared (OPIR) satellite constellation and developing new generations of sensor satellites. Consequently, the use of space for air defence is being greatly enhanced, and investments in this realm have grown substantially.
Naval Systems – Highest-Cost Projects
• The Columbia-Class Ballistic Missile Submarine (SSBN) will cost around $110 billion in total, with several billion dollars coming from FY2026 budget. The Columbia-class SSBN, which will carry nuclear missiles that may be launched from submarines, is the Navy's top priority for shipbuilding. The draft budget for 2026 keeps financing for the first Columbia-class submarine that is already being built. It also proposes to spend around $3.1 billion on the second boat over the years 2026 to 2028.
Given the enormous expense of this program, Congress is scrutinizing the Pentagon’s plan to stagger some of the funding into later years. Pentagon officials note that combined spending on Columbia-class and Virginia-class submarines in 2026 is about 14% higher than previously projected, signalling a commitment to accelerate these projects. The Columbia-class will replace the aging Ohio-class SSBNs; each new sub will carry up to 16 nuclear ballistic missiles, and each is estimated to cost on the order of $8–10 billion.
• Arleigh Burke-Class Guided Missile Destroyers: (FY2026 funding: ~$4 billion total; unit cost ~$2 billion each). The workhorse Arleigh Burke-class destroyers remain central to the Navy’s fleet. The 2026 budget provides for two new Flight III Arleigh Burke destroyers – one funded in the base budget and a second added via reconciliation funds. These ships will have the newest Aegis combat system, powerful air and missile defence systems, and long-range weaponry for attacking. Some politicians have called the Navy's use of one-time reconciliation cash to buy ships that would ordinarily be in the base budget a "budgetary gimmick." Still, the intention to acquire 19 ships in FY2026 depends a lot on these destroyers. The new DDGs will help stop the fast growth of China's navy and take the place of older ships that are about to be retired.
• Virginia-Class Attack Submarines (SSN): (FY2026 plan: 2 submarines; unit cost: around $3 billion each). The Virginia-class nuclear-powered attack submarines are very important for both traditional underwater warfare and long-range strikes with high accuracy. The budget for 2026 pays for two Virginia-class submarines, one through the base budget and one through the reconciliation funds. This is more than the customary one each year and is a direct reaction to China's naval growth.
Virginia-class submarines carry about 30 torpedoes and missiles, operate with low observability, and future Block V versions will include the capability to launch the new nuclear cruise missile (SLCM-N). The budget also directs investments to improve shipyard infrastructure (as noted above) to expedite submarine construction and reduce maintenance backlogs.
The Navy’s FY2026 budget also devotes significant funds to amphibious ships. An America-class LHA amphibious assault ship and an LPD amphibious transport dock are slated for procurement, funded via the reconciliation package. While these platforms are high cost, they fall just outside the top three Navy projects highlighted above. No major Navy ship programs are being cancelled in 2026; however, separate debates continue over early retirements of some ships and the future of the Littoral Combat Ship (LCS) fleet.
Air Platforms (Aircraft) – Highest-Cost Projects
• F-35 Lightning II Joint Strike aircraft: The F-35 is still the most important tactical aircraft in the US military, but the 2026 budget suggests a big drop in new F-35 acquisitions since their logistic support is costly. The Department proposes to acquire 47 F-35s in FY2026: 24 F-35A versions for the Air Force and 23 F-35B/C variants for the Marine Corps and Navy. This is a big decline from the 74 planes that were planned the year before. There is an additional billion dollars set out for F-35 upgrades, replacement parts, and maintenance. The aim is to raise mission-capable rates and cut per-flight-hour costs using this money. It will be used to upgrade software, adapt the new engine (if adopted), and increase component stocks. Pentagon officials say that this method will make the F-35 more sustainable over the long run without hurting its ability to fight in the short term.
• F-47 "Next Generation Air Dominance" (NGAD) Fighter: The NGAD program is the Air Force's sixth-generation combat aircraft endeavour and one of the biggest research and development costs in the 2026 budget, asking for around $3.5 billion.
This funding will continue development of NGAD prototypes (sometimes informally labelled the “F-47”). Citing limited industrial capacity, Air Force leaders have opted to concentrate on NGAD as the sole new fighter project for now, rather than running two major programs at once. Consequently, the Navy’s own next-gen fighter, the F/A-XX, is being kept in a holding pattern (only $74 million for early design work in FY2026). The NGAD fighter is expected to feature stealth, very long range, and the ability to network with unmanned “loyal wingman” drones, ensuring U.S. air superiority against advanced adversaries in the 2030s.
• F-15EX Eagle II Tactical Fighter: The 2026 budget continues the Air Force’s procurement of the F-15EX Eagle II, a thoroughly modernized version of the fourth-generation F-15. Up to two squadrons of F-15EX planes will cost $3.1 billion. The F-15EX costs less to operate than the F-35. These planes will take the place of older F-15C/D fighters (and some older F-15Es) in formations like the Air National Guard.
(Extra: B-21 Raider Stealth Bomber: The B-21 Raider nuclear-capable stealth bomber program is one of the biggest winners in the FY2026 budget, even though it isn't listed in the unclassified budget highlights. A big part of the $60 billion set up for modernising the nuclear triad goes to the B-21 program as it gets ready for manufacturing and deployment. The B-21 will replace the B-2 and B-1 bomber fleets. It is still fully funded and is a major priority for the Pentagon.
Cancelled Air Platform Project Example: As noted above, the Air Force’s plan to acquire the E-7 Wedgetail airborne early warning aircraft (to replace the aging E-3 Sentry AWACS fleet) was cancelled in the FY2026 budget. Officials determined that the Wedgetail would not survive in highly contested airspace and that its funds would be better spent on space-based early warning systems.
Army (Ground Forces) – Highest-Cost Projects and Transformation
• Long-Range Firepower and Loitering Munitions: (~$8.9 billion in new investments) – The Army is making a significant push to enhance its long-range precision strike capabilities and smart munitions arsenal. Approximately $8.9 billion in the 2026 request is devoted to fielding long-range fire systems and loitering munitions across multiple units (the funding is said to equip the equivalent of five brigade combat teams). This includes procurement of new loitering drones (e.g. the Phoenix Ghost and similar “kamikaze” munitions) that can loiter over the battlefield and destroy high-value targets like air defence units or armoured vehicles. It also talks about the Precision Strike Missile (PrSM), which is the Army's next-generation surface-to-surface missile and is already in full-rate manufacturing. It also talks about the first deployment of the Army's Long-Range Hypersonic Weapon (LRHW) batteries. With these expenditures, the Army will be able to attack enemies from much farther away—hundreds or possibly thousands of kilometres. This is a very important ability for large areas like the Indo-Pacific or Eastern Europe.
• Network and IT Infrastructure Modernization: The Army is also heavily investing in modernizing its digital networks and battlefield IT infrastructure. The 2026 budget boosts funding for tactical communications and computing by hundreds of millions of dollars. For instance, the “tactical network communications” line item alone increases by $488 million over FY2025, reaching $866 million. This will strengthen the Army's tactical communication systems all around, from the smart goggles for troops called the Integrated Visual Augmentation System (IVAS) to new, tougher tactical radios and satellite communication terminals, all of which will be made more secure. As part of the Army's network modernisation project, these improvements are meant to make sure that units at all levels can share data and talk to each other safely and in real time, especially in areas where there is a lot of fighting. This concentration fits with the idea of Joint All-Domain Operations, in which the Army must work well with other services in land, air, sea, cyber, and space.
• Ground Vehicle and Platform Modernization (Army Transformation Initiative): The Army’s FY2026 plan includes a sweeping Transformation Initiative to overhaul its combat vehicle fleet and other platforms. In doing so, the Army is taking the bold step of cancelling or curtailing several legacy programs to free up funding for new systems. For instance, the Army is cancelling the M10 Booker light tank (also known as Mobile Protected Firepower) before it is used; the Robotic Combat Vehicle (RCV) program is being put on hold; the Improved Turbine Engine Program (ITEP), which was supposed to give Black Hawk and Apache helicopters new engines, is being cancelled; the Army is reducing the number of MQ-1C Grey Eagle armed drones it buys; and it is stopping buying more Joint Light Tactical Vehicles (JLTVs).
The Army can reinvest in its most important modernisation projects thanks to these cuts and sales, which are expected to save some $5–6 billion. Some of the most important programs that are getting more attention and money are the Optionally Manned Fighting Vehicle (OMFV), which will replace the Bradley fighting vehicle in the future and can be operated without a crew; new aircraft under the Future Vertical Lift (FVL) umbrella, such as the Bell V-280 Valour tiltrotor transport and a future attack reconnaissance helicopter; and high-energy laser weapons and other directed-energy systems for air defence.
The Transformation Initiative also involves improvements to how the organisation functions, such combining multiple commands and headquarters to make things easier. In summary, the Army is spending money on technologies that will change how battles are conducted in the future. This will make the Army smaller but more lethal.
Author: Özgür Ekşi
