US Missile Defense Agency’s budget could be cut by $2.6 billion over the next three years
The SM-3 Block IB interceptor effort will be terminated after FY2024. (Photo: US MDA)
Spending projections based on the Pentagon’s FY2025 budget proposal have shown that the Missile Defense Agency (MDA) could face a US$2.6 billion expenditure reduction from the next fiscal year through to FY2028. The cut could create capabilities gaps in US missile defence architecture over the coming years and place both US territory and its forces deployed worldwide in a risky position.
To cover MDA activities in FY2025, the Pentagon requested $10.4 billion, which was more than $400 million less the Agency’s FY2024 spending ($10.8 billion). The US Department of Defense (DoD) also projected that the agency’s expenditure would be $10.2 billion in FY2026, $10.5 billion
Our news & analysis is now part of Defence Insight®
A Basic-level or higher Defence Insight subscription is now required to view this content.
More from Land Warfare
-
Eurosatory 2026: Rheinmetall launches new Caracal 6x6 variant
The new Caracal 6x6 is heavier and designed to deliver greater versatility, building on the 4x4 platform that is already established and on order in Europe.
-
Eurosatory 2026: Boxing clever as companies offer containerised anti-drone solutions
Eurosatory, as expected, is heavy with counter-uncrewed aerial systems and the first day of the show saw several systems unveiled, including two containerised projects to meet specific operational scenarios.
-
Eurosatory 2026: European rearmament fuels renewed demand for main battle tanks
Main battle tanks are regaining prominence across Europe, driving billions of dollars in procurement, industrial investment and multinational development programmes.
-
Eurosatory 2026: Multi-domain operations drive demand for resilient battlefield networks
Eurosatory 2026 highlights growing investment in resilient communications, navigation, cyber defence and data integration as armed forces seek to operate effectively across multiple domains.
-
Eurosatory 2026: European cooperation drives TRACKX programme towards production
Finland and Sweden have advanced the Common Arctic Mobility programme, highlighting how multinational funding and industrial cooperation are becoming increasingly important to European defence capability development.
-
Eurosatory 2026: Allison aims to future-proof Europe’s AFVs with transmission tech
Allison has brought two of its latest automatic transmissions for military vehicles to Eurosatory 2026, the 4040MX for tracked armoured fighting vehicles (AFVs) and the 4000 series for wheeled AFVs.