Where is the New $150 Billion in U.S. Defense Spending Going?
By David Rader, Senior Advisor at the Office of the Secretary of Defense, and Advisor to The CET Sandbox.
As most Israeli founders have likely seen, President Trump recently signed The One Big Beautiful Bill into law, marking a historic step forward in bolstering America’s defense posture and investing in modern capabilities, advanced manufacturing capacity, and research and development.
What this means for defense?
With $150 billion in additional defense funding, this legislation represents one of the most significant reinvestments in the U.S. military in a generation — fueling modernization across the defense industrial base, expanding shipbuilding capacity, accelerating advanced weapons programs, and strengthening warfighter readiness. As threats from peer competitors intensify, this infusion of resources will enhance the DoD’s deterrent posture, accelerate the fielding of critical technologies, and ensure that the United States remains prepared to defend its interests and allies in a rapidly evolving security environment. It is anticipated that upwards of $113 billion could be spent in Fiscal Year 2026 based on the DoD budget request, although the full funds are available to obligate through September 2029.
Where is the funding going?
The $150 billion in additional defense funding is allocated across the following mission areas.
The summary below highlights for Israeli founders the most relevant funding increases:
$16 billion to Expedite Innovation to the Warfighter. Expands DoD initiatives to scale production of game-changing new technology and expedite delivery of low-cost, attritable weapons systems and artificial intelligence needed to ensure success on future battlefield, to include:
$1.4 billion for small unmanned aerial system industrial base
$800 million for Joint Fires Network, associated battle management capabilities, and expanded of advanced command and control tools
$600 million for accelerating Strategic Capabilities Office programs
$650 million for Mission Capabilities Office joint prototyping and experimentation
$500 million for accelerating 5G/6G technologies
$750 million for innovative military logistics and energy capability development and deployment
$125 million for development of small, portable modular nuclear reactor
$1 billion for accelerating the procurement and fielding of innovative technologies (APFIT)
$50 million for additional Defense Innovation Unit OnRamp Hubs
$100 million for shared classified facilities
$2 billion for Defense Innovation Unit scaling of commercial technologies
$500 million for to prevent delays in delivery for attritable autonomous military capabilities
$250 million for Test Resource Management Center digital environment
$145 million for development of AI to enable one-way attack unmanned aerial and naval systems
$1 billion for expansion of qualification activities and technical data management to enhance competition in the defense industrial base
$400 million for defense manufacturing technology program
$250 million for low-cost counter-air capabilities
$250 million for advancement of artificial intelligence ecosystem
$100 billion lending authority for the Office of Strategic Capital
$16 billion to Enhance Military Readiness. Expands stocks of spares. Improves infrastructure at military depots and shipyards. Enhances the capability of Special Forces.
$1.64 million for Special Operations Command equipment, readiness, and operations
$310 million for next generation vertical life, assault, and intra-theater aeromedical evacuation aircraft
$4.2 billion for spare parts and repairs
$7.75 billion for depot modernization, facility sustainment, and capacity enhancements
$92.5 million for the completion of Robotic Combat Vehicle prototyping
$10 million for Air Force Concepts, Development, and Management Office
$320 million for Joint Special Operations Command
$400 million for Marine Corps Readiness and Capabilities
$480 million for procurement of Army wheeled and tracked combat vehicles
$241 million for Marine Corps amphibious vehicles
$12 billion for Pacific Deterrence. Expands military exercises and improves readiness of Indo-Pacific forces. Acquires capability and builds infrastructure needed to defend forces and conduct military operations in the Western Pacific, to include:
$19 million for development of small craft capabilities
$500 million for economic competition effects
$90 million for development of non-kinetic capabilities
$100 million for Air Force regionally based cluster pre-position base kits
$115 million for exploration and development of existing Arctic infrastructure
$143 million for anti-submarine sonar arrays
$30 million for ISR capabilities in INDOPACOM
$300 million for mesh network communications for SOCPAC
$850 million for replenishment of military articles
$200 million for acceleration of Guam Defense System program
$3.65 billion for development, procurement, and integration of military satellites and protection of military satellites
$125 million for development, procurement, and integration of military space communications
$350 million for development, procurement, and integration of military space command and control systems
$400 million for Fiscal Responsibility and a Clean Audit. Requires audits of funds provided to DoD by this Act. Invests in the IT infrastructure, business systems, and new AI/automation capabilities needed to ensure the DoD fully passes an audit, to include:
$200 million for deployment of automation and artificial intelligence to accelerate DoD audits
$150 million for business systems replacement for DoD audit
$9 billion for Servicemember Quality of Life. Funds increases in allowances and special pays, as well as improvements to housing, healthcare, childcare, and education. This includes $2 billion for the Defense Health Program.
$29 billion for Shipbuilding and the Maritime Industrial Base. Expands the size and enhances the capability of our naval fleet. Invests in autonomous surface and subsurface technology. Builds capacity and improves infrastructure in the maritime industrial base, to include:
$2.1 billion for development, procurement, and integration of purpose-built medium unmanned surface vessels
$1.3 billion for expansion of unmanned underwater vehicle production
$174 million for the development of a Test Resource Management Center robotic autonomous systems proving ground
$500 million for the adoption of advanced manufacturing techniques in the shipbuilding industrial base
$450 million for application of autonomy and artificial intelligence to naval shipbuilding
$25 billion for Golden Dome for America. Supports President Trump’s vision for layered missile defense shield for America. Develops space-based assets to support the system and rapidly accelerates missile defense against threats to the homeland and deployed troops, to include:
$7.2 billion for the development, procurement, and integration of military space based sensors
$5.6 billion for development of space-based and boost phase intercept capabilities
$2.55 billion for the development, procurement, and integration of military missile defense capabilities
$400 million or expansion of Multi-Service Advanced Capability Hypersonic Test Bed program
$250 million for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering
$2.2 billion for acceleration of hypersonic defense systems
$1.975 billion for improved ground-based missile defense radars
$25 billion for Munitions. Accelerates purchases of most important munitions. America’s arsenal of munitions. Expands capacity in the industrial base to support higher levels of munitions production and the increased production of missile defense interceptors and counter drone capabilities, to include:
$1 billion for expansion of one-way attack unmanned aerial systems industrial base
$200 million for development, procurement, and integration of mass-producible autonomous underwater munitions
$500 million for development, procurement, and integration of maritime mines
$1 billion for the creation of next-generation automated munitions production factories
$2 billion for additional activities to improve the United States stockpile of critical minerals
$500 million for development, production, and integration of counter-unmanned aerial systems programs
$350 million for development, production, and integration of non-kinetic counter unmanned aerial systems programs
$250 million for development, production, and integration of land-based counter unmanned aerial systems programs
$200 million for development, production, and integration of ship-based counter unmanned aerial systems programs
$400 million for acceleration of hypersonic strike programs
$500 million for expansion of defense advanced manufacturing techniques
$9 billion for Air Superiority. Reverses declines in fighter force posture. Accelerates delivery of next generation aircraft and autonomous systems.
$678 million for Collaborative Combat Aircraft program
$270 million for development, procurement, and integration of Marine Corps unmanned combat aircraft
$100 million for production of advanced aerial sensors
$15 billion for Nuclear Deterrence. Accelerates modernization of the triad. Improves the readiness of our current nuclear deterrent. Invests in infrastructure needed to restore America’s ability to manufacture nuclear weapons.
$1 billion for Border Security. Funds DoD personnel and logistics support to help carry out President Trump’s border, immigration, and counterdrug enforcement agenda.
$10M for DOD IG to conduct specific oversight on appropriations in this title.
