Morning Briefing - February 25, 2026
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February 24, 2026

Pentagon details plan to raise ‘26 reconciliation spending to over $150B

By Staff Reports

The Pentagon will now look to spend over $150 billion in reconciliation funds this fiscal year, submitting a plan to Congress outlining efforts to advance the Golden Dome missile defense project and other nuclear activities.

The plan represents a large increase from the $113 billion in reconciliation funds the Donald Trump administration had originally projected to spend in fiscal 2026, and means the Pentagon will now allocate essentially all of the defense funds Congress had approved by Congress to be apportioned over several years. 

“While the mandatory funds are available for obligation until September 30, 2029, and in some cases the detailed allocation plans provided below reference contact awards dates in future years, the [Pentagon] is working to accelerate execution into FY 2026 if that can be done without sacrificing effectiveness,” the department writes, according a copy of the blueprint obtained by Exchange Monitor affiliate Defense Daily.

The $150.5 billion outlined in the new blueprint for fiscal 2026, after having spent $1.8 billion in fiscal 2025, includes $29.2 billion for shipbuilding, $24.4 billion for integrated air and missile defense, $24.8 billion for munitions and defense supply chain resiliency, $16.2 billion for readiness, $15.4 billion to scale low-cost weapons into production, $12.3 billion for Indo-Pacific Command capabilities, $10.8 billion for nuclear forces, $8.6 billion for air superiority and $1 billion for border security. 

In fiscal 2026, the Pentagon plans to outlay reconciliation funds to procure 14 ships, including $4.6 billion for an additional Virginia-class submarine.

The plansaid shipbuilding funds will also include nearly $1 billion to “target the significant expansion of industrial base capabilities in areas such as artificial intelligence and advanced manufacturing” and support the White House’s earlier executive order to “to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.”

The plan also includes $2.5 billion for risk reduction for the Sentinel intercontinental ballistic program, $4.5 billion to accelerate the B-21 long-range bomber aircraft program, $2 billion to accelerate the nuclear sea-launched cruise missile program and $3.5 billion related to an Indo-Pacific Command effort for “development, procurement and integration of United States military satellites and the protection of United States military satellites.”

Exchange Monitor affiliate Defense Daily first published a version of this story.

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