Defense Tech and Acquisition

Defense Tech and Acquisition

FY27 Budget and Potential Ways Ahead

What Congress has done, what it hasn't, and how to plan for both.

Pete Modigliani's avatar
Matt MacGregor's avatar
Pete Modigliani and Matt MacGregor
Oct 06, 2026
∙ Paid

It's that time of year again, and we find ourselves exploring how DoW will be funded in the next months. Will it be tough times with a lot of uncertainty, or will bipartisan willpower be found and the necessary funding secured to deter our adversaries?

Budget Status

Executive Branch: The President requested $1.5T for national defense in two pieces: $1.15T in discretionary funding and $350B through reconciliation. In June, there was an additional supplemental request for $87.6B to cover costs for Operation Epic Fury (~$17B) and accelerated munitions ($21B).

House: The House Appropriations Committee released H.R. 9495 on June 24, 34-27. It has not reached the full floor for a vote.

Senate: The Senate has released no defense mark, and there is no topline agreement.

  • Senate Majority Leader John Thune has said the Senate will not take up a budget resolution before the midterms but possibly during the lame-duck session.

  • SAC Chair Susan Collins has called reliance on the mandatory request risky.

  • SAC Ranking Member Chris Coons has said the department will get neither the $350B in reconciliation nor the supplemental while the war continues.

Below for paid members are additional details on reconciliation, budget resolution COAs and recommendations for key stakeholders in the defense acquisition process.

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