FY26 Budget Proposal Exceeds Pentagon Request

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A bipartisan compromise released Tuesday aims to fund the federal FY26 budget at $1.2 trillion, ahead of the Jan. 30 shutdown deadline, reports Politico. The bill would boost defense funding to more than $839 billion. ICE would remain funded at $10 billion with a reduced budget for enforcement and removal efforts. DHS would be mandated to use $20 million to provide training and outfit immigration enforcement agents with body cameras, and $20 million for independent oversight of DHS detention facilities.

The $839 billion proposed defense budget includes $972 million for the Navy’s next-generation F/A-XX fighter and $3 billion for the Air Force’s F-47, reports Defense News. The Pentagon request was just $74 million for the Navy’s F/A-XX and nearly $2.6 billion for the F-47.

Defense-technology startups had their best funding year ever in 2025, with investors keen to finance autonomous systems and artificial intelligence for the battlefield, reports Defense News. Venture capital deals in defense technology jumped to a record $49.1 billion from $27.2 billion in 2024.

National Guard troops will remain in DC, until the end of 2026, reports The Associated Press. A memo from Army SEC Dan Driscoll said “the conditions of the mission” warranted extended support of President Donald Trump’s “ongoing efforts to restore law and order.”

The Pentagon ordered about 1,500 active-duty soldiers readied for possible deployment to Minnesota where federal authorities are conducting a massive immigration enforcement operation, reports Military.com. Minnesota National Guardsmen will wear bright reflective vests so they won’t be confused with law enforcement agencies that wear military-style camouflage, reports Task & Purpose.

Trump ruled out military force to acquire Greenland in his remarks to the World Economic Forum in Davos, Switzerland, on Wednesday, reports Politico.

Only one in four Americans support a takeover of Greenland, according to a CNN poll released last week, and are skeptical about US incursions abroad, reports Politico.

The latest Marist Poll published Friday found a majority of respondents opposed US military action overseas:  56% opposed and 43% supported US military action in Venezuela; 69% opposed, 29% supported action in Greenland; in Iran, 57% opposed, 42% supported; Cuba, 61%-37%; and Mexico, 60%-38%.  The findings were partisan. The majority of Democratic and independent voters discouraged a US military presence in those nations while most Republicans favored it, reports Military.com.

The VA Inspector General issued an urgent advisory regarding two AI chat tools currently in use by VA health care providers, citing “potential patient safety risks,” reports Task & Purpose. The findings showed potential problems with analysis of medical information and updating patient records.

Chief of Naval Operations ADM Daryl Caudle says US defense spending needs to be at least 4% of the nation’s gross domestic product to enable the Navy to meet current readiness demands and to expand its fleet of warships to contend with future threats, reports Breaking Defense.

China called the Navy’s concept for a Trump-class battleship a larger and “easier target” for its growing array of anti-ship drones and missiles, including the so-called “carrier killer” DF-21D ballistic missile.

Sens. Josh Hawley (R-MO) and Todd Young (R-IN) flipped under the pressure from President Trump and voted with fellow Republicans to dismiss a war powers resolution intended to limit the president’s ability to conduct further attacks on Venezuela, reports Defense News.

Marine Corps LT GEN Francis Donovan, tapped to command US Southern Command, told lawmakers he’s ready to oversee an expanded US presence in Latin America, but  doesn’t know how long that enhanced focus will last, reports Military Times.

US military forces boarded and took control of a seventh oil tanker connected with Venezuela on Tuesday as part of the Trump administration’s broader efforts to take control of the South American country’s oil, reports Military Times.

Urns with the remains of the 32 Cuban officers killed during the US attack on Venezuela displayed at Havana’s airport drew tens of thousands of mourners, reports Defense News.

The European Commission has proposed a $104.4 billion loan package for Ukraine requiring Kyiv to prioritize European weapon and military equipment manufacturers. The package allocates roughly €60 billion for military assistance and €30 billion for “general budget support” spanning 2026 – 2027, reports Defense News.

French carmaker Renault will start manufacturing long-range strike drones, partnering with local defense contractor Turgis Gaillard, under a contract with the country’s Directorate General for Armament, reports Defense News.

Global markets are facing volatility after Trump vowed to slap tariffs on eight European nations until the US is allowed to buy Greenland, injecting fresh trade uncertainty as stocks slid and the dollar broadly weakened, reports Reuters.

Several NATO countries are sending troops to Greenland amid the Trump’s annexation rhetoric, reports Defense News. Germany led the way with Sweden, Norway, and France also having ordered soldiers to the Arctic island. The German military reconnaissance team of 15 arrived in Greenland on Friday and completed its exploration after a 44-hour deployment, reports Stars and Stripes. A spokesman for the German team said that “important insights were gained that will now enable us to coordinate possible joint measures with our partners and within the NATO framework to strengthen security in the North Atlantic and the Arctic.”

The USS Abraham Lincoln aircraft carrier strike group is moving from the South China Sea toward the Middle East as tensions between the US and Iran continue to rise, reports The Hill.

The US completed its withdrawal from al-Asad air base in Iraq’s Anbar Province, the Iraq Defense Ministry said Saturday, ending more than two decades of American military presence in the western part of the country, reports Military Times.

US forces on Friday killed Bilal Hasan al-Jasim in a strike in Syria. US officials called him “an experienced terrorist leader” in Syria with ties to the ISIS insurgent who carried out a Dec. 13 ambush there that killed two Iowa National Guardsmen and one US civilian, reports Military Times.

The EU, Russia, Belarus, and Thailand were asked this week to join Trump’s new Board of Peace to supervise the Gaza peace plan, reports Military.com. Russian President Vladimir Putin is “studying the details,” according to the Kremlin. Members include former British prime minister Tony Blair, Canada’s leader Mark Carney, and US StateSec Marco Rubio, reports CNN.

Boeing warned plane owners in 2011 about a broken part that contributed to the November 2025 UPS cargo plane crash that killed 15 people, reports CBS. At that time, the  plane’s manufacturer, McDonnell Douglas, didn’t believe it threatened safety, the National Transportation Safety Board announced last week. The crash occurred in Louisville, KY, when the left engine flew off the wing as the plane rolled down the runway.

Boeing outsold Airbus in 2025 for the first time since 2018, buoyed by its most popular 737 MAX family of planes, reports Travel Radar. The 737 MAX accounted for 447 deliveries out of its total 600 deliveries.

Lockheed Martin says it delivered 191 F-35 stealth fighters in 2025, a record for the program facilitated by a backlog of jets held in storage, reports Breaking Defense.

NASA moved its giant new moon rocket to the launch pad Saturday in preparation for astronauts’ first lunar fly-around in more than half a century, reports Military.com. The out-and-back trip could blast off as early as February.

Contracts awarded in Maryland, Virginia, and Washington, D.C., Jan. 20 and Jan. 21, 2026:

Systems Planning and Analysis Inc., Alexandria, Virginia, has been awarded a $12,677,125 labor hour contract (HQ003426FE044). The full value of the contract is $112,084,896. The contract will be executed out of the research, development, test and evaluation funds up to the maximum value of $112,084,896. Funds in the amount of $1,000,000 are being obligated at the time of the award. The purpose of this contract is to provide services in support of the Office of the Under Secretary of War (Research and Engineering) mission in the areas of administrative support, travel support, communications and public affairs and stakeholder engagement support, and workflow management support. Washington Headquarters Services, Arlington, Virginia, is the contracting activity.

Critical Communications, Controls and Instruments LLC,* Exeter, New Hampshire (N6833526D0005); Calzoni S.R.L, Caldereara di Reno, Italy (N6833526D0006); and Valkyrie Enterprisers LLC, Virginia Beach, Virginia (N6833526D0007), are each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award contract. The estimated aggregate ceiling for all contracts is $70,000,000, with the companies having an opportunity to compete for individual orders. These contracts procure Horizon Reference Systems (HRS) for various Navy vessels for the aircraft launch and recovery equipment program office. The HRS scope includes design, installation, and support requirements to equip future Freedom and Independence class littoral combat ships, Arleigh Burke class guided missile destroyers, and possible future ship classes not yet defined with a HRS. Additionally, retrofit legacy HRS may be installed on Arleigh Burke class guided missile destroyers and Ticonderoga class guided-missile cruiser ship classes under this effort. Work will be performed in Exeter New Hampshire; Caldereara di Reno, Italy; and Virginia Beach, Virginia. The percentage of work performed at each location is not known until award of individual orders and is expected to be completed in January 2031. No funds will be obligated at the time of award; funds will be obligated on individual orders as they are issued. These contracts were competitively procured as an unrestricted full and open competition; three proposals were received. The Naval Air Systems Command, Lakehurst, New Jersey, is the contracting activity.

Range Generation Next LLC, Sterling, Virginia, was awarded a $21,226,080.25 modification (P00033) to contract W9113M-23-C-0062 for Reagan Test Site engineering and technical services. The modification brings the total cumulative face value of the contract to $546,696,690. Work will be performed in Huntsville, Alabama, with an estimated completion date of Oct. 1, 2028. Fiscal 2026 research, development, test, and evaluation, Army funds in the amount of $21,226,080 were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Space and Missile Defense Command, Huntsville, is the contracting activity.