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Indo-Pacific equities in the FY26 HACD bill

Indo-Pacific equities in the FY26 HACD bill

Noah Smith profile image
by Noah Smith

EXPERIENCE, NOT OPINION

$833B
INDO-PACIFIC
DETERRENCE

FY2025 House Appropriations Committee Defense Report - Comprehensive Analysis

$50B+
Direct Indo-Pacific Investment
$11B
INDOPACOM Unfunded Priorities
42%
Of All Unfunded Requirements

The House Appropriations Committee Defense FY2025 report (H.Rept. 118-557) authorizes $833.053 billion in total defense appropriations, with Indo-Pacific deterrence as the strategic priority. INDOPACOM submitted an unprecedented $11 billion unfunded priorities list - the largest among all combatant commands - representing 42% of all unfunded requirements. Major investments focus on submarine construction, advanced aviation, missile systems, and regional force posture enhancements to counter China's growing military capabilities.

MAJOR SHIPBUILDING PROGRAMS

$36.9B Total Naval Shipbuilding Appropriations

Columbia-Class Ballistic Missile Submarines (SSBN-826)

NAVY'S TOP ACQUISITION PRIORITY

$24.5B

The Navy's top acquisition priority receives substantial funding despite schedule delays. Critical to maintaining continuous sea-based strategic deterrent.

PROGRAM DETAILS

First boat total cost $15.179B
Second boat procurement $9.283B
FY2025 funding $9.557B
Schedule delay 12-16 months
First boat delivery 2027 (expected)
Production goal 1 per year (FY26-FY35)

Virginia-Class Attack Submarines (SSN-774)

CRITICAL CAPACITY CONSTRAINTS

$4.13B

Critical capacity constraints plague the program with production falling below required rates, impacting AUKUS commitments.

PRODUCTION CHALLENGES

Current production 1.2/year
Required rate 2/year
FY2025 request 1 submarine only
Cost growth $1.95B supplemental
Unit cost increase ~$1B per boat
Industrial base support $180M

Submarine Industrial Base Investment

CRITICAL INFRASTRUCTURE

$4.004B

Congress recognizes critical industrial capacity gaps requiring immediate investment to achieve strategic production goals.

INVESTMENT BREAKDOWN

Total SIB funding $4.004B
Shipbuilding account $2.134B
Previous supplementals $3.013B
Since 2018 total $9.7B
Target production "1+2" annually

Surface Fleet Programs

Program Quantity Status
Arleigh Burke Flight III DDG 2 ships Funded
Constellation-class Frigates Reduced Below Request
San Antonio-class LPD 1 ship Funded
Ship Retirement Prohibitions Multiple USS Lake Erie, Select LCS

AVIATION PROGRAMS

Next-generation air superiority investments

F-35 Lightning II Joint Strike Fighter

LARGEST FIGHTER PROCUREMENT

$9.184B

Largest fighter procurement in the budget with significant increases across all variants to maintain air superiority.

AIRCRAFT PROCUREMENT

Total aircraft 76 units
Air Force F-35A 44 aircraft (2 above request)
Navy F-35C carrier variant 19 aircraft (6 above request)
Marine F-35B STOVL 13 aircraft
Funding increase $964.55M above request

F/A-XX NGAD

6TH GENERATION FIGHTER

$3.3B

R&D funding increase for sixth-generation fighter development to counter peer adversaries in contested Pacific airspace.

F-15EX

ADVANCED EAGLE

$1.808B

18 aircraft procurement for enhanced air superiority capabilities.

B-21 Raider

STRATEGIC BOMBER

$1.957B

Next-generation stealth bomber for long-range strike capability.

KC-46A Pegasus

AERIAL REFUELING

$2.696B

15 tanker aircraft for extended Pacific operational reach.

C-130J Super Hercules

TACTICAL AIRLIFT

$1.05B

8 additional aircraft for Air National Guard.

E-7 Wedgetail

EARLY WARNING

$500M

R&D for E-3 AWACS replacement.

PACIFIC DETERRENCE INITIATIVE

Comprehensive regional deterrence investments

FY2025 PDI Investment

COUNTER-CHINA PRIORITY

$9.86B

Congressional enhancement of $1.9 billion above President's request specifically for counter-China initiatives.

  • Infrastructure resilience improvements
  • Allied capacity building programs
  • Enhanced regional force posture
  • 180-day comprehensive effectiveness assessment required

INDOPACOM Unfunded Priorities List

LARGEST AMONG ALL COMBATANT COMMANDS

$11B

Unprecedented unfunded requirements representing 42% of all combatant command needs.

$3.3B
Military Construction
$2.7B
Weapons Procurement
$2.0B
Research & Development
$1.2B
Operations & Maintenance
$1.6B
Classified Programs

REGIONAL FORCE POSTURE

Strategic infrastructure and presence investments

Guam Military Buildup

STRATEGIC HUB

$781M
  • Infrastructure: $600M above budget request
  • Guam Defense System: $181M
  • Marine relocation from Okinawa (DPRI)
  • Completion targeted for 2025

Japan Infrastructure

ALLIANCE CORNERSTONE

$71.8M

YOKOTA AIR BASE PROJECTS

PAIP 8B West (19 units) $26.242M
PAIP 9 Phase 2 (32 units) $39M
Design activities $6.557M

Korea/Camp Humphreys

LARGEST ARMY GARRISON IN ASIA

$10.7-13B

Multi-year transformation creating largest U.S. Army garrison in Asia, serving as USFK headquarters south of Han River.

Taiwan Security Cooperation

URGENT DEFENSE SUPPORT

$200M
  • Increase of $92M above FY2024
  • 45-day deadline for defense articles description
  • Accelerated delivery timelines
  • Enhanced training programs

WEAPONS SYSTEMS & MUNITIONS

Long-range precision strike capabilities

Missile Programs

INTEGRATED AIR & MISSILE DEFENSE

$2.71B

KEY SYSTEMS

SM-3 Block IB interceptors 24 units
SM-6 Block IB $767M
Stinger missiles 182 units
Maritime Strike Tomahawk $573.5M acceleration
Precision Strike Missile $391M development

Long-Range Strike Capabilities

JASSM/LRASM PRODUCTION

$5.2B
  • JASSM production: 224 missiles FY2025, ramping to 360/year
  • JASSM-D variant: 1,200-mile range with 2,000-pound warhead
  • Production capacity: 1,000 missiles annually by Lockheed Martin
  • Total contract value: $5.2B multi-year procurement

Hypersonic Weapons Development

ADVANCED STRIKE SYSTEMS

$3.2B

PROGRAM STATUS

Total cross-service investment $3.2B
Long Range Hypersonic Weapon $691.919M
HALO program status Cancelled
HAWC program DARPA managed

DEFENSE PRODUCTION ACT

Critical materials and industrial base expansion

Critical Materials Investment - $117M+

Investment Area Company/Program Amount Purpose
Semiconductors 5N+ Corporation $14.4M Germanium substrates
Lithium Lithium Nevada Corp $11.8M Critical battery materials
Workforce Montana Tech $6.56M Technical training
Strategic Minerals Canadian suppliers $14.8M Rare earth elements
Munitions Multiple $29.8B FY2025 production

Additional focus areas: Printed circuit boards (Presidential determination), Microelectronics domestic expansion, Supply chain independence from China

ISR & INNOVATION

Advanced capabilities for contested environments

INDOPACOM ISR Requirements

CRITICAL CAPABILITY GAP

URGENT
  • 30-day assessment required
  • Commercial vs. government ISR
  • PRC activity stressing capacity

Space Domain Awareness

MULTI-DOMAIN OPERATIONS

$981.9M
  • Space Forces Indo-Pacific
  • Army MIGS: $5.9M
  • Classified sensors: $701M
  • PMTEC: $194M training

Innovation Programs

RAPID TECHNOLOGY FIELDING

$1.57B
Defense Innovation Unit $1.3B+
Combatant commander $220M
Technology transfer $248.8M
Classified R&D $1.6B

OPERATIONAL READINESS

Pacific Fleet operations and sustainment

Key Operational Investments

Asia Pacific Regional Initiative

$8.132M

Theater security cooperation and engagement activities

Enterprise IT Network

$10M

INDOPACOM mobile virtual network operations

Strategic Mobility

$567.4M

Critical air and sealift capabilities for Pacific distances

Army Prepositioned Stocks

$405.7M

Forward-positioned equipment and supplies

Joint Task Force Micronesia

$25M

Enhanced presence in strategic Pacific island chains

CONGRESSIONAL MANDATES

Required reports and timeline

30
DAYS

INDOPACOM ISR requirements briefing on capability shortfalls and commercial integration options

45
DAYS

Taiwan urgent defense articles description and delivery timeline report

60
DAYS

Indo-Pacific ammunition manufacturing facility feasibility study update

90
DAYS

Air Force Reserve Indo-Pacific logistics assessment for strategic mobility

180
DAYS

PDI effectiveness and budgeting criteria comprehensive report to Congress

Program Restrictions

  • Pacific Fleet structure: No modification of command relationships
  • Submarine production: Minimum one Columbia-class annually
  • Ship retirements: Specific vessels prohibited from early decommissioning
$50+ BILLION
Direct Indo-Pacific Investment

Conservative estimate of direct Indo-Pacific focused funding within the $833.053 billion defense appropriation, representing the highest priority for deterring China and maintaining regional stability. This includes both funded programs and the unprecedented $11 billion unfunded priorities list.

INVESTMENT BREAKDOWN

Submarine programs ~$13-15 billion
F-35 procurement (Pacific-applicable) $9.184 billion
NGAD development $3.3 billion increase
Hypersonic weapons $3.2 billion
PDI activities $9.86 billion
INDOPACOM unfunded $11 billion requested
Taiwan security $200 million
Innovation programs $1.3+ billion
Noah Smith profile image
by Noah Smith

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