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Drone warfare funding

The Pentagon's next drone funding jump depends on Congress

For uncrewed and autonomous systems plus counter-UAS, 81% of the $66.5B FY27 request needs new reconciliation legislation. Its discretionary portion roughly matches FY26 enacted funding.

Data as of Sep 28, 2026

The short answer

$12.8B
Drone warfare, FY26 enacted, up from $5.8B in FY25 (+120%).
$66.5B
The FY27 drone-warfare request. 81% of it is mandatory money with no bill. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
−0.3%
Drone warfare in FY27 without that mandatory money, against FY26: flat. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
2x
Guided-missile contract obligations, Oct to Jun FY26 vs FY25: $30.6B vs $15.4B. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

Drone warfare more than doubled in law, to $12.8B

Our comparison maps 2,080 RDT&E and procurement lines to 17 capability markets. Enacted funding for uncrewed and autonomous systems plus counter-UAS went from $5.8B in FY25 to $12.8B in FY26, up 120%. DoW FY2027 P-1 budget exhibit (procurement) · Department of War FY2027 R-1 budget exhibit

Most of that jump came from P.L. 119-21, the July 2025 reconciliation law. It put $8.4B into drone-warfare lines in FY26. That funding is enacted; the solid bars distinguish it from the new request. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

Drone warfare more than doubled in law; the FY27 ask is mostly unfunded mandatory money

Uncrewed and autonomous systems plus counter-UAS. RDT&E and procurement, $B, then-year dollars. Bars on one scale.

Enacted or actualEnacted reconciliation, P.L. 119-21FY27 request, discretionaryFY27 request, mandatory: needs a bill that does not exist yet

  • FY25 actualIncludes supplemental money$5.8B
  • FY26 enacted+120% on FY25; $8.4B from P.L. 119-21$12.8B
  • FY27 request+418% on FY26; 81% mandatory$66.5B
  • FY27 without mandatory−0.3% on FY26: flat$12.8B
The numbers
Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
Regular moneyP.L. 119-21 or mandatoryTotal
FY25 actual5.80.05.8
FY26 enacted4.48.412.8
FY27 request12.853.766.5

Source: Department of War FY2027 R-1 and P-1 budget exhibits, lines mapped to markets by TGOs. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

The whole field of 17 markets grew +39% in FY26, from $213.6B to $297.9B. P.L. 119-21 supplied $100.1B of it, about a third. Three markets more than doubled in law: uncrewed systems (+133%), missile defense (+133%, mostly Golden Dome money) and the drone-warfare composite with counter-UAS (+120%). Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

In law, three markets more than doubled from FY25 to FY26

Change from FY25 actual to FY26 enacted (including P.L. 119-21), %. RDT&E and procurement. Industrial base (+343%) is left off: it is financing, not a market.

  • Uncrewed & autonomousPart of drone warfare+133.0%
  • Missile defenseMostly Golden Dome money+132.6%
  • Drone warfareUncrewed plus counter-UAS+119.8%
  • AI, software & dataFrom a small line-level base+93.8%
  • Space+65.0%
  • Counter-UASPart of drone warfare+57.4%
  • Nuclear modernization+52.1%
  • Hypersonic strike+38.2%
  • Cyber+30.5%
  • Shipbuilding+27.7%
  • Enterprise IT+27.7%
  • Crewed aircraft+24.6%
  • Munitions & missiles+13.5%
  • EW, SIGINT & ISR sensors+11.4%
  • C2 & comms+5.3%
  • Rotorcraft+5.2%
  • Ground vehicles−19.1%
The numbers
Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
MarketFY25 actual $BFY26 enacted $Bof which P.L. 119-21Change
Uncrewed & autonomous4.811.27.4+133.0%
Missile defense10.023.211.3+132.6%
Drone warfare5.812.88.4+119.8%
AI, software & data0.81.50.3+93.8%
Space17.829.412.4+65.0%
Counter-UAS1.01.61.0+57.4%
Nuclear modernization23.635.99.3+52.1%
Hypersonic strike2.73.70.6+38.2%
Cyber2.63.40.9+30.5%
Shipbuilding40.651.923.3+27.7%
Enterprise IT2.22.90.1+27.7%
Crewed aircraft35.243.86.6+24.6%
Munitions & missiles26.329.88.3+13.5%
EW, SIGINT & ISR sensors7.78.60.7+11.4%
C2 & comms11.211.81.0+5.3%
Rotorcraft8.89.31.0+5.2%
Ground vehicles14.111.41.0−19.1%
Industrial base (financing)4.218.514.9+343.1%

Source: Department of War FY2027 R-1 and P-1 budget exhibits, TGOs market mapping. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

FY25 actuals include supplemental money. Missile defense excludes interceptor rounds, which are counted in munitions. AI's +94% starts from a line-level base that misses most AI spending. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

The FY27 request makes drones the biggest mover of any market

The department asks $66.5B for drone warfare in FY27, up $53.7B, or 418%, on FY26. That is the largest dollar increase of any capability market. Munitions and missiles is next, up $45.6B to $75.4B. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

The hatched parts of the bars below are proposed mandatory money. It is requested, but it only exists if Congress passes a new reconciliation bill. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

Every market, FY26 enacted against the FY27 request

Top bar FY26 enacted, bottom bar FY27 request. $B, RDT&E and procurement, ranked by dollar increase. All bars on one scale.

Enacted or actualEnacted reconciliation, P.L. 119-21FY27 request, discretionaryFY27 request, mandatory: needs a bill that does not exist yet

  • Drone warfare+$53.7B requested (+418%); without mandatory −0.3%$12.8B$66.5B
  • Munitions & missiles+$45.6B requested (+153%); without mandatory +1.6%$29.8B$75.4B
  • AI, software & data+$37.3B requested (+2,436%); without mandatory +41%. Not ranked: the base misses most AI spending$1.5B$38.9B
  • Crewed aircraft+$18.1B requested (+41%); without mandatory +13%$43.8B$62.0B
  • Space+$18.1B requested (+62%); without mandatory +6.2%$29.4B$47.5B
  • Shipbuilding+$14.1B requested (+27%); without mandatory +13%$51.9B$66.0B
  • Missile defense+$10.1B requested (+44%); without mandatory −11%$23.2B$33.3B
  • C2 & comms+$5.9B requested (+50%); without mandatory +50%$11.8B$17.7B
  • EW, SIGINT & ISR sensors+$4.2B requested (+49%); without mandatory +49%$8.6B$12.8B
  • Nuclear modernization+$3.4B requested (+9.4%); without mandatory +8.8%$35.9B$39.3B
  • Hypersonic strike+$2.4B requested (+64%); without mandatory +50%$3.7B$6.1B
  • Enterprise IT+$0.9B requested (+32%); without mandatory +12%$2.9B$3.8B
  • Cyber+$0.5B requested (+15%); without mandatory +15%$3.4B$3.9B
  • Ground vehicles+$0.4B requested (+3.2%); without mandatory +3.2%$11.4B$11.8B
  • Rotorcraft+$0.3B requested (+3.7%); without mandatory +3.7%$9.3B$9.6B
  • Financing, not a capability market
  • Industrial base+$77.6B requested (+420%); without mandatory −79%. Financing, not a market$18.5B$96.1B
The numbers
Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
MarketFY26 enactedof which P.L. 119-21FY27 requestof which mandatoryFY27 without mandatory
Drone warfare12.88.466.553.712.8
Munitions & missiles29.88.375.445.130.3
AI, software & data1.50.338.936.72.2
Crewed aircraft43.86.662.012.349.6
Space29.412.447.516.331.2
Shipbuilding51.923.366.07.358.7
Missile defense23.211.333.312.620.7
C2 & comms11.81.017.70.017.6
EW, SIGINT & ISR sensors8.60.712.80.012.8
Nuclear modernization35.99.339.30.239.1
Hypersonic strike3.70.66.10.55.6
Enterprise IT2.90.13.80.63.2
Cyber3.40.93.90.03.9
Ground vehicles11.41.011.80.011.8
Rotorcraft9.31.09.60.09.6
Industrial base18.514.996.192.33.8

Source: Department of War FY2027 R-1 and P-1 budget exhibits, 2,080 lines mapped to 17 markets by TGOs. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

AI shows about +2,400%, from a $1.5B line-level base that misses most AI spending, and 94% of its ask is mandatory. It is not ranked. Industrial base is financing (DPA, IBAS, OSC loans), not a capability market, so it is shown separately.

Without a new reconciliation bill, drones are flat

The FY27 request doubles the field to $590.5B. $277.5B of that, 47%, is proposed mandatory money. Take it out and the field is $313.0B, +5.1% above FY26. CSIS - Tracking FY 2027 Defense Appropriations, Reconciliation, and the Supplemental Request · Department of War FY2027 R-1 budget exhibit

The FY27 request doubles the field; without mandatory money it grows 5%

All 17 capability markets, RDT&E and procurement, $B. Bars on one scale.

Enacted or actualEnacted reconciliation, P.L. 119-21FY27 request, discretionaryFY27 request, mandatory: needs a bill that does not exist yet

  • FY25 actual$213.6B
  • FY26 enacted+39% on FY25$297.9B
  • FY27 request+98% on FY26; $277.5B mandatory$590.5B
  • FY27 without mandatory+5.1% on FY26$313.0B
The numbers
Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
Regular moneyP.L. 119-21 or mandatoryTotal
FY25 actual213.60.0213.6
FY26 enacted197.8100.1297.9
FY27 request313.0277.5590.5

Source: Department of War FY2027 R-1 and P-1 budget exhibits, TGOs market mapping. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

As of Aug 18, 2026, House and Senate budget resolutions carry about $60B of defense mandatory money against $350B requested (CSIS - Tracking FY 2027 Defense Appropriations, Reconciliation, and the Supplemental Request). FY27 began under a continuing resolution to Dec 11, 2026. No reconciliation bill has been enacted.

Drones take the second-largest share of the money at risk. Without mandatory money, drone warfare drops from $66.5B to $12.8B, −0.3% on FY26. $53.6B of the request sits in one line, DAWG 0604539D8Z. CSIS - Tracking FY 2027 Defense Appropriations, Reconciliation, and the Supplemental Request · Department of War FY2027 R-1 budget exhibit

Where the $277.5B of mandatory money sits

FY27 proposed mandatory money by market, $B. This is what disappears if no reconciliation bill passes. Bars on one scale.

  • Industrial base (financing)33% of the mandatory ask$92.3B
  • Drone warfare19% of the mandatory ask$53.7B
  • Munitions & missiles16% of the mandatory ask$45.1B
  • AI, software & data13% of the mandatory ask$36.7B
  • Space6% of the mandatory ask$16.3B
  • Missile defense5% of the mandatory ask$12.6B
  • Crewed aircraft4% of the mandatory ask$12.3B
  • Shipbuilding3% of the mandatory ask$7.3B
  • Four othersNuclear modernization, C2 & comms, Hypersonic strike, Enterprise IT$1.3B
The numbers
Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
MarketFY27 mandatory $BShare of market's FY27 request
Industrial base (financing)92.396%
Drone warfare53.781%
Munitions & missiles45.160%
AI, software & data36.794%
Space16.334%
Missile defense12.638%
Crewed aircraft12.320%
Shipbuilding7.311%
Nuclear modernization0.21%
C2 & comms0.00%
Hypersonic strike0.58%
Enterprise IT0.616%
Total277.547%

Source: Department of War FY2027 R-1 and P-1 budget exhibits, TGOs market mapping. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

House appropriators marked the discretionary drone-warfare lines 3.1% below the request and fund DAWG at $1.0B of discretionary money. No committee has touched the mandatory part (House Appropriations Committee report on FY2027 Defense Appropriations (H.Rept. 119-715)). Munitions also falls to $30.3B without mandatory money, +1.6% on FY26. The difference is in the contracts.

Munitions is the boom already visible in contracts

Contract obligations and segment sales provide a second test of the budget picture. Both support the growth in munitions and missiles. USAspending.gov award search · Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1)

Guided-missile obligations (PSC 14xx) doubled. Nine months of FY26, $30.6B, nearly equal all of FY25 ($32.4B) and beat any full year from FY2019 to FY2024. USAspending.gov award search · Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1)

Guided-missile contract dollars doubled: $30.6B in nine months of FY26

Pentagon contract obligations, guided missiles (PSC 14xx), $B, net of de-obligations. Bars on one scale.

  • Full fiscal year
  • FY2019$20.2B
  • FY2020$24.0B
  • FY2021$16.7B
  • FY2022$17.3B
  • FY2023$23.1B
  • FY2024$23.5B
  • FY2025$32.4B
  • October to June only
  • FY2024$10.0B
  • FY2025$15.4B
  • FY2026$30.6B
The numbers
USAspending.gov award search
Fiscal yearFull year $BOct to Jun $B
FY201920.18
FY202024.00
FY202116.70
FY202217.29
FY202323.13
FY202423.5410.03
FY202532.4115.37
FY2026not yet30.61

Source: USAspending.gov, Department of War contract obligations by product code (PSC). USAspending.gov award search

Unmanned aircraft (PSC 1550) rose to $1.8B from $1.4B over the same nine months. Full-year FY2025, $1.86B, was still below FY2019, $2.25B. USAspending.gov award search · Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1)

Unmanned-aircraft obligations rose over the same nine months

Pentagon contract obligations, unmanned aircraft (PSC 1550), $B, net of de-obligations. Bars on one scale.

  • Full fiscal year
  • FY2019$2.25B
  • FY2020$1.42B
  • FY2021$1.17B
  • FY2022$1.63B
  • FY2023$1.82B
  • FY2024$2.14B
  • FY2025$1.86B
  • October to June only
  • FY2024$1.82B
  • FY2025$1.37B
  • FY2026$1.78B
The numbers
USAspending.gov award search
Fiscal yearFull year $BOct to Jun $B
FY20192.25
FY20201.42
FY20211.17
FY20221.63
FY20231.82
FY20242.141.82
FY20251.861.37
FY2026not yet1.78

Source: USAspending.gov, Department of War contract obligations by product code (PSC). USAspending.gov award search

Product codes are proxies. Most drone, counter-UAS and AI work is bought as R&D, IT or services and does not show here. FY2026 runs only through June, because the Pentagon's contract data lags 90 days. USAspending.gov award search · Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1)

Company results point the same way. Prime missile segments grew 14 to 19% in the latest quarter. Lockheed Martin's Missiles and Fire Control backlog reached $87.9B on Jun 28, 2026, from $46.7B at Dec 31, 2025. Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1) · USAspending.gov award search

Prime missile segments grow 14 to 19%; drone incumbents are mixed

Segment sales, latest quarter, change year on year, %. Bars on one scale.

  • Missiles and munitions
  • Lockheed MartinMissiles and Fire Control, $4.1B in the quarter+19.5%
  • RTXRaytheon, $8.3B in the quarter+18.1%
  • L3HarrisMissile Solutions, $1.1B in the quarter+13.9%
  • Drones
  • AeroVironmentAutonomous Systems, quarter to Aug 1, $346M in the quarter+21.3%
  • KratosUnmanned Systems, $79M in the quarter+8.1%
The numbers
Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1) · RTX Q2 2026 earnings release (8-K Ex. 99) · L3Harris Q2 2026 earnings release (8-K Ex. 99.1) · Sources
CompanySegmentQuarter salesYear on year
Lockheed MartinMissiles and Fire Control$4.1B+19.5%
RTXRaytheon$8.3B+18.1%
L3HarrisMissile Solutions$1.1B+13.9%
AeroVironmentAutonomous Systems, quarter to Aug 1$346M+21.3%
KratosUnmanned Systems$79M+8.1%

Sources: Q2 2026 earnings releases (8-K) from Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1), RTX Q2 2026 earnings release (8-K Ex. 99), L3Harris Q2 2026 earnings release (8-K Ex. 99.1) and Kratos Q2 2026 earnings release (8-K Ex. 99.1); AeroVironment Q1 FY2027 earnings release (8-K Ex. 99.1) Q1 FY2027.

Segments are exposure proxies, and definitions differ. AeroVironment's quarter ended Aug 1. Much Drone Dominance money targets new entrants, many private, so these incumbents understate the drone market. AeroVironment Q1 FY2027 earnings release (8-K Ex. 99.1) · USAspending.gov award search

The budget side of the munitions boom is larger still, but it is mostly request. Air and missile defense interceptor rounds, counted inside munitions, go from $8.4B to $37.8B requested. 83% of the FY27 figure is mandatory. The contracts above are the part that is already real. USAspending.gov award search · Lockheed Martin Q2 2026 earnings release (8-K Ex. 99.1)

Interceptor rounds: $8.4B enacted, $37.8B requested

Air and missile defense interceptors, counted inside munitions. Top bar FY26 enacted, bottom bar FY27 request, $B. Five largest rounds shown; the totals include others. Bars on one scale.

FY26 enactedFY27 request (83% of the total is mandatory)

  • PAC-3 MSE$1.6B$14.0B
  • THAAD$0.8B$11.4B
  • SM-6$1.4B$4.3B
  • SM-3 IIA$0.5B$4.2B
  • SM-3 IB$0.8B$1.2B
The numbers
FY2027 Budget Request Overview Book · Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
RoundFY26 enacted $BFY27 request $B
PAC-3 MSE1.6513.96
THAAD0.8211.44
SM-61.414.33
SM-3 IIA0.514.22
SM-3 IB0.821.25
All interceptor rounds8.437.8

Source: Department of War FY2027 Budget Request Overview, Munitions Acceleration Council table, FY2027 Budget Request Overview Book; FY2027 budget exhibits for the $8.4B and $37.8B, Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement).

Less than a third of the $66.5B is for buying drones

Of the FY27 drone-warfare request, $16.9B is for buying drones. The rest is counter-drone defense, logistics sites, software, people and the base-budget lines. House Appropriations Committee report on FY2027 Defense Appropriations (H.Rept. 119-715) · Department of War FY2027 R-1 budget exhibit

Less than a third of the $66.5B is for buying drones

FY27 drone-warfare request by component, $B. Bars on one scale.

Base (discretionary) requestMandatory, no bill

  • Asset purchasesDrones across air, surface, subsurface and ground; mandatory, in DAWG$16.9B
  • Counter-UXS250+ sites, interceptors, specialty defeat; mandatory, in DAWG$14.4B
  • Contested logisticsLeased sites, container platforms, repositioning; mandatory, in DAWG$13.5B
  • Uncrewed linesCCA $2.8B, DAWG $1.0B, MQ-25, UUV and USV, launched effects, small UAS; base request$9.9B
  • Collaborative autonomySoftware, control layers, integration; mandatory, in DAWG$4.5B
  • Force generationOperators, exercises, sustainment; mandatory, in DAWG$4.3B
  • Counter-UAS linesJIATF-401, Army C-sUAS; base request$2.9B
  • Other uncrewed mandatoryMUSV and others; mandatory$0.08B
The numbers
DoW FY2027 Mandatory Funding Overview (incl. Attachment 1 line-level list) · Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement) · Sources
ComponentMoney$B
Asset purchasesMandatory16.85
Counter-UXSMandatory14.40
Contested logisticsMandatory13.53
Uncrewed linesBase request9.88
Collaborative autonomyMandatory4.50
Force generationMandatory4.32
Counter-UAS linesBase request2.94
Other uncrewed mandatoryMandatory0.08
Total81% mandatory66.5

Sources: Department of War FY2027 Mandatory Funding Overview, Section 7, DoW FY2027 Mandatory Funding Overview (incl. Attachment 1 line-level list); FY2027 R-1 and P-1 exhibits, Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement); House Appropriations report H.Rept. 119-715, House Appropriations Committee report on FY2027 Defense Appropriations (H.Rept. 119-715).

The mandatory money sits in one line, DAWG 0604539D8Z, which goes from $0.2B in FY26 to $54.6B requested. It has no public P-1 or R-2 detail. House appropriators fund DAWG at $1.0B of discretionary money; no committee has touched the mandatory part. DoW FY2027 Mandatory Funding Overview (incl. Attachment 1 line-level list) · House Appropriations Committee report on FY2027 Defense Appropriations (H.Rept. 119-715)

The department's own headline categories overlap: autonomy $54.0B, Drone Dominance $53.6B, counter-UXS $20.6B. We count DAWG as uncrewed even though the department says $14.4B of it is counter-UXS, which is why the market is reported as a composite. Department of War FY2027 R-1 budget exhibit · DoW FY2027 Mandatory Funding Overview (incl. Attachment 1 line-level list)

Every market, with its caveat

The market definitions matter as much as the growth rates. The notes below explain what each category includes and which comparisons need care. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

All 17 markets, three budget years

RDT&E and procurement, $B, then-year dollars. Changes are FY26 enacted to FY27.

Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
MarketFY25 actualFY26 enactedof which P.L. 119-21FY27 requestof which mandatoryFY27 without mandatoryChange, requestChange, without mandatory
Drone warfare5.812.88.466.553.712.8+418%−0.3%
  Uncrewed & autonomous4.811.27.463.653.79.9+466%−12%
  Counter-UAS1.01.61.02.90.02.9+82%+82%
Munitions & missiles26.329.88.375.445.130.3+153%+1.6%
AI, software & data0.81.50.338.936.72.2+2,436%+41%
Crewed aircraft35.243.86.662.012.349.6+41%+13%
Space17.829.412.447.516.331.2+62%+6.2%
Shipbuilding40.651.923.366.07.358.7+27%+13%
Missile defense10.023.211.333.312.620.7+44%−11%
C2 & comms11.211.81.017.70.017.6+50%+50%
EW, SIGINT & ISR sensors7.78.60.712.80.012.8+49%+49%
Nuclear modernization23.635.99.339.30.239.1+9.4%+8.8%
Hypersonic strike2.73.70.66.10.55.6+64%+50%
Enterprise IT2.22.90.13.80.63.2+32%+12%
Cyber2.63.40.93.90.03.9+15%+15%
Ground vehicles14.111.41.011.80.011.8+3.2%+3.2%
Rotorcraft8.89.31.09.60.09.6+3.7%+3.7%
Industrial base (financing)4.218.514.996.192.33.8+420%−79%

Source: Department of War FY2027 R-1 and P-1 budget exhibits, 2,080 lines mapped to 17 markets by TGOs. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)

Drone warfare
Composite of uncrewed and counter-UAS. $53.6B of the FY27 ask sits in one DAWG line with no public detail; the department says $14.4B of DAWG is counter-UXS.
Uncrewed & autonomous
Includes DAWG ($54.6B requested) and CCA. The department says $14.4B of DAWG is counter-UXS but publishes no split.
Counter-UAS
Discretionary lines only (JIATF-401, Army C-sUAS). The department's $14.4B counter-UXS inside DAWG is counted under uncrewed.
Munitions & missiles
Interceptor rounds (PAC-3, THAAD, SM-3, SM-6) count here, not in missile defense. Guided-missile contract obligations doubled year on year.
AI, software & data
The line-level base understates AI spending, most of which sits inside program lines and classified accounts. The growth percentage is not meaningful.
Crewed aircraft
Excludes B-21, which sits in nuclear.
Space
Classified space sits outside this view, so the total is lower than the department's space headline. Golden Dome space money was front-loaded from P.L. 119-21.
Shipbuilding
Excludes Columbia, which sits in nuclear.
Missile defense
Golden Dome money was front-loaded from P.L. 119-21 in FY26, so the market falls on a without-mandatory basis. Interceptor rounds sit in munitions.
Nuclear modernization
Includes Columbia, B-21, Sentinel, LRSO/SLCM-N and NC3.
Industrial base
Financing (DPA, IBAS, OSC loans), not a capability market. Shown, not ranked.

Method and sources

  1. Markets are built from 2,080 unclassified RDT&E and procurement lines in the department's FY2027 budget exhibits, each mapped to one of 17 capability markets. O&M is excluded. Classified lines (13.6% of FY27 investment) are a separate bucket, so space is understated. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
  2. FY25 is actuals, including supplemental money. FY26 is discretionary enacted plus the department's P.L. 119-21 spend plan. FY27 is the President's request, discretionary plus proposed mandatory. Then-year dollars. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
  3. FY27 mandatory money needs a new reconciliation bill. As of Aug 18, 2026, House and Senate budget resolutions carry about $60B of defense mandatory money against $350B requested. FY27 began under a continuing resolution to Dec 11, 2026. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
  4. Drone warfare is uncrewed and autonomous systems plus counter-UAS. DAWG ($54.6B) is counted as uncrewed, although the department says $14.4B of it is counter-UXS. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
  5. Interceptor rounds (PAC-3, THAAD, SM-3, SM-6) count as munitions, not missile defense. Move them and munitions growth falls while missile defense rises. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
  6. AI's growth percentage starts from a $1.5B line-level base that misses most AI spending, so it is not ranked. Industrial base is financing, not a capability market. Department of War FY2027 R-1 budget exhibit · DoW FY2027 P-1 budget exhibit (procurement)
  7. Contract obligations use USAspending product-code groups, which are proxies, and run only through June 2026. Company segments are exposure proxies. House marks are matched line by line; the Senate appropriators have not reported. USAspending.gov award search · Department of War FY2027 R-1 budget exhibit

Sources

Sources

Source documents and datasets