Pentagon Unveils $961.6B Defense Budget

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The Defense Department released its fiscal 2026 budget, making official a $961.6 billion request, reports Breaking Defense. The budget reveals new details about some key programs, including putting the US Navy’s next-generation fighter jet on the backburner. As for the breakdown among the services, the request includes $197.4 billion for the Army, $292.2 billion for the Navy, $301.1 billion for the Air Force and Space Force, and $170.9 for defense-wide activities.

The Navy’s fiscal 2026 shipbuilding budget request includes just three battle force ships in the base budget, while relying on Congress’s anticipated reconciliation bill to fund an additional 16 vessels, reports Breaking Defense.

Members of the Senate Appropriations Subcommittee on Defense expressed concerns last week with Navy shipbuilding delays and the Navy’s proposed budget, reports Navy Times. The service remains years behind in projected ship deliveries and cannot provide firm timelines for improvement, military officials told the senators. The Navy’s proposed base budget garnered the most controversy during the hearing — not because of potential over-budgeting, but because committee members were surprised by the lack of funds requested.

The Air Force wants to retire its final 162 A-10 Warthog attack jets in fiscal 2026, as part of a plan to divest 340 total aircraft, reports Air Force Times. Plans also call for the cancellation of the E-7 Wedgetail program over what an official said were “significant delays” and cost increases.

Tech firm Obviant is using artificial intelligence to make Defense Department budgeting and spending easier to track, reports C4ISRNET. The small company is expanding a data-analysis platform it says could give Pentagon weapons-buyers with the information they need to more effectively navigate DoD’s budget.

House Republicans approved plans for a $435.3 billion budget for the Department of Veterans Affairs in fiscal 2026, reports Marine Corps Times. This puts the department in line for a significant funding boost. While this is the first appropriations package approved for next fiscal year by either chamber of Congress, it does not necessarily mean a fast track ahead for the VA budget to become law.

A new report by data analytics firm Govini finds that nearly one in 10 major subcontractors to defense primes are Chinese firms, reports Breaking Defense. The study warns that the Pentagon remains over-reliant on a small number of traditional prime contractors and a supplier base rife with potential bottlenecks, according to 2024 data. Despite a push to disentangle the US economy from China, the military-industrial base still relies heavily on Chinese suppliers.

During his Senate confirmation hearing, Navy VADM Brad Cooper said US military presence is still needed in Syria to prevent an ISIS comeback, reports Air & Space Forces Magazine. The Pentagon has decided to reduce the number of troops in that country from 2,000 to fewer than 1,000. But Cooper believes there is a continued need for at least some presence. He argued that the situation in Syria needs to be weighed before making additional troop cuts.

Rep. Tony Gonzales (R-TX) plans to introduce legislation creating the Iranian Campaign Medal, with eligibility open to any troops who served in direct support of Operation Midnight Hammer, reports Military Times.

Marine Corps MAJ GEN David Bligh has been nominated for appointment as the judge advocate general, or JAG, of the US Navy, reports Navy Times. It has been more than a century since the service’s top legal officer was a Marine. Bligh currently serves as the staff judge advocate to the commandant of the Marine Corps.

The USS Tripoli, the Navy’s newest America-class amphibious assault ship, has arrived at its new homeport in Sasebo, Japan, reports Military Times. The deployment is part of a regularly scheduled rotation of forces aimed at boosting security in the Indo-Pacific region. It will operate as part of the US 7th Fleet.

Aircraft carrier USS Gerald R. Ford left Virginia last week for a regularly scheduled deployment that could put it near Israel after the US inserted itself in Israel’s war to destroy Iran’s nuclear program, reports AP News.

The Navy has officially changed the name of a fleet replenishment oiler previously named after gay rights icon and Navy veteran Harvey Milk, reports Navy Times. It is now the Oscar V. Peterson, named after a Navy veteran and Congressional Medal of Honor recipient who received the award for leading a repair party during an attack on the Cimarron-class fleet oiler Neosho on May 7, 1942.

Fort Lee in Virginia will become the first base to be named after a Buffalo Soldier, reports Army Times. Fort Lee—initially named after the Confederate general Robert E. Lee—was briefly changed to Fort Gregg-Adams in an effort to remove any connection to the Confederacy.

Boeing can’t hire or keep enough qualified mechanics for its long-troubled Air Force One project in Port San Antonio, TX, reports Houston Chronicle.

Boeing has hired former Northrop Grumman executive Steve Sullivan to lead its Air Force One program, reports Reuters on MSN. Sullivan previously worked on key Northrop programs including the B-21 bomber.

SpaceX has been awarded an $81.6 million contract to launch a US military weather-monitoring satellite in 2027, reports spacenews.com. The contract for the mission designated USSF-178 was awarded by the Space Systems Command and represents SpaceX’s third consecutive win under the National Security Space Launch Phase 3 Lane 1 program.

Personal-finance website WalletHub ranks 2025’s Most Patriotic States in America. See where Maryland sits in the rankings.

Maryland Gov. Wes Moore announced a state hiring freeze last week, reports CBS News. This also includes voluntary employee buyouts and the elimination of vacant positions. The governor called the state’s critical financial climate the worst since the Great Depression, citing in part, “a federal administration that continues to harm Maryland’s people and the economy.”

Former Maryland Gov. Larry Hogan called for more listening and less shouting in politics while speaking at a session on “How States Are Navigating an Era of Uncertainty,” hosted by The Pew Charitable Trusts and States Newsroom, reports Maryland Matters. Hogan was sharing the stage with former Montana Gov. Steve Bullock. The two men disagreed on several issues, but those disagreements during the forum were civil. “You can’t get anything done unless you’re willing to listen to the other side,” Hogan said. “When the partisan shouting stops is when you actually start to listen. … People these days seem to be more interested in winning an argument than solving a problem.”

The Washington Post recently listed the region’s Top Workplaces for 2025. The list, surveyed by research company Energage, includes a range of organizations across various industries that excel in workplace culture and employee satisfaction.

Contracts:

Carte’s Contracting Services Inc., Andalusia, Alabama (W91278-25-D-A015); Speegle Construction Inc., Niceville, Florida (W91278-25-D-A016); South Dade Air Conditioning & Refrigeration Inc., Homestead, Florida (W91278-25-D-A017); 2A LLC, Aberdeen, Maryland (W91278-25-D-A018); Southern Contracting LLC, Biloxi, Mississippi (W91278-25-D-A019); Randy Kinder Excavating Inc., Dexter, Missouri (W91278-25-D-A020); Cornerstone Engineering Inc., Jeffersontown, Kentucky (W91278-25-D-A021); and A&M & Southwind Small Business JV, Tulsa, Oklahoma (W91278-25-D-A022), will compete for each order of the $49,000,000 firm-fixed-price contract for construction. Bids were solicited via the internet with eight received. Work locations and funding will be determined with each order, with an estimated completion date of June 26, 2030. US Army Corps of Engineers, Mobile, Alabama, is the contracting activity.

Vision Point Systems Inc., Fairfax, Virginia, was awarded a $14,095,818 firm-fixed-price contract for corrosion prevention and engineering services and support. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of June 27, 2030. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W912CH-25-D-0062).

General Dynamics Mission Systems, Manassas, Virginia, was awarded a $18,831,073 cost-plus-fixed-fee and cost modification to previously awarded contract (N00024-24-C-6230) to exercise options for engineering and technical support including software development, hardware and software integration to Navy submarines. Work will be performed in Manassas, Virginia (65%); Middletown, Rhode Island (25%); and San Diego, California (10%), and is expected to be completed by June 2026. Fiscal 2025 research, development, test and evaluation (Navy) funds in the amount of $3,291,133 (63%); fiscal 2023 shipbuilding and conversion (Navy) funds in the amount of $1,121,032 (15%); fiscal 2024 shipbuilding and conversion (Navy) funds in the amount of $1,121,032 (15%); and fiscal 2025 national sea-based deterrence fund funds in the amount of $510,796 (7%), will be obligated at time of award and will not expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, DC, is the contracting activity.

General Dynamics Information Technology Inc., Falls Church, Virginia, was awarded a $41,683,803 cost-plus-fixed-fee task order issued under the Government Services Administration Alliant 2 Government Wide Acquisition Contract. This contract provides for an agile software development program to produce and integrate enterprise software for battlefield data communications, targeting, and battlespace awareness. Work will be performed at Beavercreek, Ohio, and is expected to be completed by December 2030. This contract was a sole source acquisition. Fiscal 2025 research, development, test and evaluation funds in the amount of $4,000,000 are obligated at time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8629-25-F-B020).

AT2 LLC, Severn, Maryland, was awarded a $13,597,617 contract modification (P00053) to a previously awarded contract (FA4890-18-C-0008) for Air Combat Command, Air Force Global Strike Command, and Air Education and Training Command primary training ranges operations and maintenance support services. This modification brings the total cumulative face value of the contract to $124,104,391. Work will be performed at Dare County Range (Seymour Johnson Air Force Base), Poinsett Range (Shaw AFB), Grand Bay Range (Moody AFB), Avon Park Range (Moody AFB), Snyder Range (Dyess AFB), Belle Fourche Range (Ellsworth AFB), Holloman Ranges (Holloman AFB), and Mountain Home Ranges (Mountain Home AFB), Range Operating Authority are in parenthesis, and is expected to be completed by March 31, 2026. Fiscal 2025 operations and maintenance appropriation funds are being obligated in the amount of $6,819,010 at the time of award. The Air Combat Command Acquisition Management and Integration Center, Langley Air Force Base, Virginia, is the contracting activity.

General Dynamics Electric Boat Corp., Groton, Connecticut is awarded a not-to-exceed $1,851,065,000 undefinitized contract action modification to a previously awarded contract (N00024-24-C-2110) for long lead time material and preliminary construction efforts associated with Virginia-class Block VI submarines. Work will be performed in Sunnyvale, California (37%); Tucson, Arizona (6%); Chesapeake, Virginia (6%); Dallas, Texas (4%); York, Pennsylvania (3%); Ashland, Virginia (3%); South El Monte, California (3%); Westminster, Massachusetts (3%); Manchester, New Hampshire (3%); Huntington, West Virginia (3%); Minneapolis, Minnesota (2%); McKeesport, Pennsylvania (2%); Spring Grove, Illinois (2%); Louisville, Kentucky (1%); Warren, Massachusetts (1%); Camden, New Jersey (1%); El Cajon, California (1%); Yaphank, New York (1%); and other locations less than 1% (18%), and is expected to be completed by September 2035. Fiscal 2025 shipbuilding and conversion (Navy) funds in the amount of $1,679,564,500 (91%) will be obligated at the time of award and will not expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, DC, is the contracting activity.

Applied Cloud & Development Technologies LLC, Washington, DC (N66001-25-D-0042); AtechGov LLC, Bethesda, Maryland (N66001-25-D-0043); Bennett Adelson Professional Services, Cleveland, Ohio (N66001-25-D-0044); ClearPro Partners LLC, Leesburg, Virginia (N66001-25-D-0045); Client First Technologies, Fairfax, Virginia (N66001-25-D-0046); Innovatus Technology Consulting, San Diego, California (N66001-25-D-0047); Practical Solutions Inc, Washington, DC (N66001-25-D-0048); and True Tandem LLC, Herndon, Virginia (N66001-25-D-0049), are awarded a combined $1,494,000,000 indefinite-delivery/indefinite-quantity, multiple award contract with firm fixed pricing for the Department of Defense Enterprise Software Initiative (DOD ESI) Microsoft Enterprise Services II Small Business (MES II – SB). MES II – SB will provide the DOD with comprehensive, continuous enterprise support and engineering solutions for Microsoft products and cloud services, designed to enhance productivity and advance technology throughout the entire information technology lifecycle. This includes enterprise-wide and organization-specific architectural planning, implementation, deployment, and infrastructure optimization services. Work will be performed globally and is expected to be completed by June 2030. No funds will be obligated at the time of award. Funds will be obligated on individual task orders as they are issued. This requirement was competitively procured as a total small business set-aside via a request for proposal (N66001-24-R-0048) published on the beta.SAM.gov website and the Naval Information Warfare Systems Command e-Commerce central website. 15 offers were received. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity.

Leidos Inc., Reston, Virginia, is being awarded a $22,909,025 cost-plus-fixed-fee and cost-only modification to a previously awarded contract (N00024-22-C-5231) to exercise options for installation of the Navy’s AN/SQQ-89 surface ship undersea warfare combat systems. Work will be performed in Chesapeake, Virginia (51%); San Diego, California (37%); Yokosuka, Japan (3%); Bath, Maine (3%); Pascagoula, Mississippi (3%); Mayport, Florida (2%); and Seattle, Washington (1%), and is expected to be completed by May 2026. Fiscal 2025 other procurement (Navy) funding in the amount of $5,566,570 (50%); fiscal 2024 shipbuilding and conversion (Navy) funding in the amount of $1,222,560 (11%); fiscal 2022 shipbuilding and conversion (Navy) funding in the amount of $1,224,625 (11%); fiscal 2021 shipbuilding and conversion (Navy) funding in the amount of $1,098,791 (10%); fiscal 2023 shipbuilding and conversion (Navy) funding in the amount of $1,088,668 (9%); fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $562,700 (5%); fiscal 2023 other procurement (Navy) funding in the amount of $306,000 (3%); and fiscal 2025 operations and maintenance (Navy) funding in the amount of $30,000 (1%), will be obligated at the time of award, of which $1,434,791 will expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, DC, is the contracting activity.

Siemens Government Technologies, Reston, Virginia, was awarded a not-to-exceed $9,788,601 firm-fixed-price modification to previously awarded, third party financed contract (N39430-18-F-9924) for an increase to the energy service performance contract for Navy Europe, Africa, Central (EURAFCENT). This award brings the total cumulative face value of the contract to $235,800,315. Work will be performed at various locations across the EURAFCENT area of responsibility. Work is expected to be completed in August 2040. No funds were obligated at time of award. Private financing will be obtained by the contractor. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity.

USTRANSCOM has modified contracts with 11 companies in an indefinite-delivery/indefinite-quantity, firm-fixed-price, multiple award contract, bringing the total cumulative face value of the program to $646,518,220. This contract is for continued international, commercial, and multimodal transportation service between various points and ports worldwide. Transportation services include time-definite, door to door and port to door pickup and delivery, Electronic Data Interchange, customs processing, and clearance of containerized and breakbulk cargo. The modified contracts are with: Air Transport International Inc., Wilmington, Ohio (HTC71119DW002P00014); American President Lines LLC, Arlington, Virginia (HTC71119DW003P00014); American Roll-On Roll-Off Carrier LLC, Ponte Verda Beach, Florida (HTC71119DW004P00014); Amerijet International Inc., Miami, Florida (HTC71119DW005P00014); Farrell Lines Incorporated, Norfolk, Virginia (HTC71119DW006P00015); Hawaiian Airlines Inc., Honolulu, Hawaii (HTC71119DW007P00014); Liberty Global Logistics LLC, Lake Success, New York (HTC71119DW008P00014); National Air Cargo Group Inc., Orlando, Florida (HTC71119DW009P00014); Northern Air Cargo Inc., Anchorage, Alaska (HTC71119DW010P00014); Schuyler Line Navigation Company LLC, Annapolis, Maryland (HTC71119DW011P00013); and United Airlines Inc., Chicago, Illinois (HTC71119DW012P00013). The period of performance is from July 1, 2025, to June 30, 2027. Working Capital Funds (Transportation) will be obligated for fiscal 2025 to 2027. The US Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.