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$152 Billion Defense Budget Aims to Boost Military Capabilities

2/25/2026

Center

Defense Department Funding

The Defense Department plans to allocate $152 billion from last year's reconciliation bill to fiscal 2026.
The plan designates $1 billion for the Defense Production Act to strengthen the defense industrial base.
It designates $25 billion for munitions, $500 million for space launch infrastructure, and $29 billion for Navy shipbuilding.
The plan earmarks nuclear modernization and unmanned vessel production, and funding aims to bolster military capabilities, though details remain classified.

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Iran Tests Missile

Iran tested the Sayyad 3-G naval air defense missile during drills in the Strait of Hormuz.
The Sayyad 3-G has a 150-kilometer range and can intercept aircraft and drones.
The test coincided with increased U.S. presence, including the USS Abraham Lincoln aircraft carrier.
Iranian Foreign Minister Abbas Araghchi said diplomacy is essential and dismissed military buildup's impact.
Negotiations between Iranian and U.S. officials are set to resume in Geneva.

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Defense Department Funding

The Defense Department plans to allocate $152 billion from last year's reconciliation bill to fiscal 2026.
The plan designates $1 billion for the Defense Production Act to strengthen the defense industrial base.
It designates $25 billion for munitions, $500 million for space launch infrastructure, and $29 billion for Navy shipbuilding.
The plan earmarks nuclear modernization and unmanned vessel production, and funding aims to bolster military capabilities, though details remain classified.

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