SANDY HOOK, Conn. - The FY26 defense appropriations bill signed into law earlier this month included a significant injection of new resources from Congress to support a mix of core capabilities and advanced technology development efforts. While lawmakers were largely supportive of the Pentagon’s spending plans, they pushed back on several proposals and sought additional clarification on how billions of dollars in previously appropriated reconciliation funding will be spent.

Topline Spending Exceeds Pentagon’s Request

Congress provided $858.9 billion in base discretionary spending for the Pentagon in FY26, which is around $10.6 billion more than requested. Those figures include the regular defense appropriations bill, as well as military construction funded through a separate piece of legislation. Lawmakers frequently add funding to develop and procure military hardware that wasn’t requested by the Pentagon, and the FY26 budget is no different. Congress added a total of $18.3 billion for acquisition programs above the request, split between $14.4 billion for procurement and $3.9 billion for research, development, test, and evaluation (RDT&E).

The spending bills only address the Pentagon’s base budget, but the military also has access to around $151 billion in reconciliation funds in FY26 as well. Topline details of the final appropriations bill are available through Forecast International’s U.S. Defense Budget Spotlight, a free tool that tracks acquisition spending through the entire defense budget process.

Shipbuilding, Aircraft, and Missiles Drive Procurement Gains

The defense appropriations bill provided each service with a windfall in their procurement accounts, but the additional funding wasn’t distributed evenly. The Navy and Air Force were the big winners, gaining an additional $7 billion and $3.7 billion for procurement, respectively. The Army also gained $1.7 billion, while Defense-Wide programs were increased by $2 billion, largely reflecting additional resources for the Missile Defense Agency. Three key areas stand out when looking where Congress added procurement dollars in the FY26 spending bill: shipbuilding, aircraft, and missiles.

Read the full post on Forecast International's Defense and Security Monitor using the link below.

Source: Forecast International
Associated URL: https://dsm.forecastinternational.com/2026/02/27/analyzing-the-final-fy26-defense-appropriations-bill/
Author: s. McDougall, Defense Analyst 

WASHINGTON - The U.S. Defense Department has delivered an unclassified spending plan to Congress detailing its intent to accelerate the expenditure of $152 billion in reconciliation funding entirely within fiscal year 2026. This accelerated timeline marks a departure from earlier plans to spread the funds over five years, with the Pentagon aiming to fast-track investment in the defense industrial. An additional $1 billion authorized through the Defense Production Act will target critical supply chain vulnerabilities, including advanced manufacturing and solid rocket motors.

The blueprint heavily prioritizes major military equipment milestones and contract awards across multiple domains. A $25 billion allocation for munitions and supply chains will fund production increases for Long Range Anti-Ship Missiles and Joint Air-to-Surface Standoff Missiles, while ramping up Tomahawk cruise missile production to 800 per year. In air superiority, $750 million will support a critical milestone decision for the Navy’s F/A-XX fighter, and $3.1 billion for the F-15EX program will secure contract awards for future production lots in FY26. Nuclear modernization efforts include a $2.5 billion investment to reduce risk in the Sentinel intercontinental ballistic missile program and an anticipated March contract award for six additional MH-139 helicopters.

Aligning with an April 2025 executive order focused on maritime dominance, $29 billion is earmarked to modernize the naval industrial base and fund major fleet acquisitions. The plan includes fiscal 2026 investments for a second Virginia-class submarine, two guided-missile destroyers, multiple amphibious warships, and billions to expand unmanned surface and underwater vessel production. Additionally, the Pentagon intends to allocate $24.4 billion for various missile defense programs, which will contribute to the administration's broader Golden Dome plans. The funding includes $7.2 billion for space-based sensors and resources for ground-based radars and technologies to defend against ballistic and hypersonic missiles.

Source: Breaking Defense
Associated URL: https://breakingdefense.com/2026/02/reconciliation-revealed-how-the-pentagon-plans-to-spend-all-152-billion-in-fy26

FORT WORTH, Tx. - Lockheed Martin recently flight tested an artificial intelligence (AI)-assisted Combat Identification (Combat ID) capability integrated into the F-35’s information fusion system.

The company notes that the demonstration, known as Project Overwatch, marks the first time a tactical AI model has been used in flight to generate an independent Combat ID on the pilot’s display.

During the Project Overwatch test flight, which was conducted at Nellis Air Force, Nevada, an AI/machine learning model resolved ID ambiguities among emitters. Engineers then used an automated tool to label new emitters, retrain the AI model to learn the new emitter class within minutes, and reload the updated model for the next flight, within the same mission planning cycle.

Source: Lockheed Martin
Associated URL: https://www.f35.com/f35/news-and-features/Lockheed_Martin_Applying_AI_to_Enhance_F35_Combat_Identification_System.html