Pentagon Budget 2026: Budget reconciliation bill signed into law, adding USD150 billion in defence spending
Funding for DoD priorities under the FY 2025 budget reconciliation law. (Janes)
US President Donald Trump signed a budget reconciliation bill into law on 4 July that includes nearly USD150 billion in additional spending for defence and security. The funding was appropriated for fiscal year (FY) 2025, and is to remain available until 30 September 2029, according to the law.
The largest portion, USD29.2 billion, is earmarked for shipbuilding, including workforce programmes, advanced manufacturing, supplier development, and procurement of manned and unmanned vessels, the lawindicated.
Another USD24.4 billion is allocated for enhancing integrated air and missile defence capabilities. This is divided into two components, next-generation missile defence technologies and layered homeland defence, thelaw said.
USD18.5 billion of this figure is for next-generation missile defence technologies, including USD250 million for the development and testing of directed energy capabilities, USD2 billion for air-moving target indicator satellites, USD5.6 billion for the development of space-based and boost-phase intercept capabilities, USD7.2 billion for the ādevelopment, procurement, and integration of military space-based sensorsā, and USD2.6 billion for the ādevelopment, procurement, and integration of military missile defence capabilitiesā, according tothe law.
The remaining USD5.9 billion for layered homeland defence includes USD2.2 billion to accelerate hypersonic defence systems, USD800 million to accelerate the ādevelopment and deployment of next-generation intercontinental ballistic missile [ICBM] defence systemsā, and USD2 billion for āimproved ground-based missile defence radarsā, the law said.
Industrial base and readiness
Around USD16.6 billion is tabbed for munitions and supply chain resiliency, including funding for weapons development, increased production, and strengthening supply chains for key components, the law said.
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