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Defense is attracting more private capital, but barriers are limiting investment in critical bottleneck areas, according to a new study by the Aerospace Industries Association and Bain & Company. The findings point to constraints beyond funding that could impede industrial-base expansion and capacity growth.
Defense Budgets & Spending
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Defense is attracting more private capital, but barriers are limiting investment in critical bottleneck areas, according to a new study by the Aerospace Industries Association and Bain & Company. The findings point to constraints beyond funding that could impede industrial-base expansion and capacity growth.
British government leaders are converging on a strategy that places defense at the center of efforts to revive the UK’s weak economic growth. Defense Secretary John Healey is emphasizing the sector’s role in reindustrialization, linking national security priorities with broader industrial policy.
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Analysis from the first UK Space Power Conference describes a more assertive British space posture, including plans for a new offensive space squadron and a costed strategy. It also identifies a funding gap extending to 2035, with implications for European defense planning and capability development.
The U.S. Air Force plans to use $250 million authorized in the fiscal 2026 National Defense Authorization Act to acquire a VIP-configured Boeing 737-8, expanding its C-40 fleet of 737-700-based aircraft. The funding covers the period from Oct. 1, 2025, through Sept. 30, 2026.
The Pentagon is planning a phased buildout of the Golden Dome missile-defense architecture through 2035, signaling a long-term implementation effort rather than a single procurement event. The timeline points to sustained requirements for funding, technology development, industrial capacity and integration across the defense enterprise.
The U.S. Air Force is confronting a $14 billion shortfall in sustainment funding as supply-chain constraints and maintenance challenges pressure force readiness. Closing the gap will require additional resources to support ongoing operations and address persistent logistics and sustainment requirements.
The U.S. Air Force has priced the B-52 Commercial Engine Replacement Program at $20.2 billion as it advances engine and radar upgrades intended to keep the strategic bomber operational into the 2050s. The service is also working to recover schedule on the two largest elements of the modernization effort.
Anduril executives said the company cannot start work on a production contract for the Air Force’s Collaborative Combat Aircraft without funding in the fiscal 2027 budget. The company expects production assets to be moving through its facilities in 2027, but says internal investment alone is insufficient.
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