Pentagon Budget 2026: Reconciliation law bolsters missile production, supply chains

The Standard Missile-3 (SM-3) missile defence interceptor has seen heavy use by US Navy warships in the Middle East. (US Navy)

US President Donald Trump signed congressional budget reconciliation legislation into law on 4 July that authorises USD16.6 billion for munitions and strengthening defence supply chains. The funding is heavily weighted towards missiles and associated supply chains as the US seeks to rebuild its stocks and increase production.

Missiles

There is significant funding to bolster production of missiles. This includes USD400 million for navy and air force long-range anti-ship missiles, and USD380 million to expand production capacity for such missiles. Another USD490 million provides for the “development, production, and integration of navy and air force long-range air-to-surface missiles” and USD94 million for alternative long-range air-to-surface missiles.

USD630 million is provided for navy long-range air-defence and anti-ship missiles and USD688 million for long-range multiservice cruise missiles. USD250 million is authorised to expand production capacity for the latter, the law said.

There is USD70 million for “short-range navy and marine corps anti-ship missiles” and USD18 million to create a “domestic source for guidance section[s] for navy short-range air-defence missiles”. Another USD65 million is authorised to integrate army medium-range air and missile defence interceptors with navy ships, according to the budget law.

The law authorises USD350 million for navy long-range air and missile defence interceptors, USD93 million for the replacement of such weapons, and USD103.3 million to expand a “depot-level maintenance facility for navy long-range air and missile defence interceptors”. USD225 million is authorised to expand production capacity for navy air-defence and anti-ship missiles.

USD40 million covers the development of low-cost alternatives to air and missile defence interceptors.