Pentagon 'All In' On Air Force's F-47, Puts Navy's F/A-XX On Ice
Earlier today, senior U.S. officials briefed TWZ and other outlets on the Fiscal Year 2026 budget proposal, the release of which has occurred with little fanfare after being significantly delayed, a significant departure from previous years.
'F-47, the first crewed sixth-generation fighter, is moving forward with $3.5 billion in funding following President Trump's March 2025 decision to proceed with Boeing's development,' a senior U.S. military official said. 'The Navy's FA-XX program will maintain minimal development funding to preserve the ability to leverage F-47 work while preventing over-subscription of qualified defense industrial base engineers.'
Secretary of Defense Pete Hegseth first publicly disclosed the $3.5 billion figure at a Congressional hearing earlier this month.
'We are maintaining a request of $74 million for the F/A-XX program in this budget to complete the design of that aircraft. We did make a strategic decision to go all in on F-47,' a senior U.S. defense official added. This is 'due to our belief that the industrial base can only handle going fast on one program at this time, and the presidential priority to go all in on F-47, and get that program right.'
Funding the completion of the design work on the Navy's program will allow for 'maintaining the option for F/A-XX in the future,' the senior U.S. defense official continued.
Earlier this month, Boeing Defense and Space CEO Steve Parker very publicly pushed back on the idea that the U.S. industrial base was not capable of working on the F-47 and F/A-XX at the same time. Northrop Grumman has also been in the running for F/A-XX, something the company pressed ahead with after dropping out of the Air Force's NGAD combat jet competition in 2023. Lockheed Martin was reportedly eliminated from the Navy's next-generation fighter competition in March.
Regardless, the F/A-XX program has been very clearly in limbo for months now. In March, reports indicated that a contract announcement for the Navy's next-generation fighter would follow quickly from the F-47 news, but that never materialized. A report earlier this month from Bloomberg News, based on budget documents the outlet had seen, had said that the Pentagon was instead moving to redirect $500 million in funding from F/A-XX to F-47, and called attention to the industrial base concerns.
'At this time, I would say pretty much everything is under consideration to get the TACAIR [tactical aviation] capability that our warfighters need as quickly as possible,' the senior U.S. defense official added in response to a question about whether a navalized variant of the F-47 might now be on the table. 'That's really what we're looking at the most, is the schedule of all these programs.'
Though the F-47 and the F/A-XX have long been expected, in very broad terms, to share some mission sets, including acting as an aerial 'quarterback' for drones, fundamental requirements for a land-based fighter differ significantly from those of a carrier-based design. The F-35 offers a prime example of this reality in that, despite their outward appearance, there is only approximately 20 percent parts commonality between the land and carrier-based variants, as well as the short takeoff and vertical landing-capable version. Aviation Week reported last year that the Navy was forging ahead with F/A-XX as a distinctly independent effort from the Air Force's Next Generation Air Dominance (NGAD) combat jet program, which resulted in the F-47.
As noted, the Pentagon's latest budget proposal for the 2026 Fiscal Year also includes cuts to planned purchases of F-35s.
'F-35 procurement is reduced from 74 to 47 aircraft,' according to the senior U.S. military official, who did not offer a breakdown by variant. Previous reports have said that it is F-35As for the Air Force that are getting slashed.
Doing this will allow for 'maintaining minimum production rates, with increased funding for Block 4 modernization and significant investment in spares of about a billion dollars to address sustainment and readiness challenges.'
The Block 4 upgrade package promises major improvements for all variants of the F-35, including a new radar, improved electronic warfare capabilities, and an expanded arsenal, but has suffered significant delays and cost growth. Joint Strike Fighters also need an additional set of hardware and software updates, called Technology Refresh 3 (TR-3), to even be able to accept the planned Block 4 upgrades, work on which also encountered significant difficulties. The U.S. military went so far as to stop accepting deliveries of new F-35s for roughly a year due to issues with TR-3. Starting in May, executives from Lockheed Martin have been publicly saying that their position is that the development of TR-3 is now complete, though the U.S. military had yet to formally sign off on that as of earlier this month.
Spare parts shortages, coupled with other maintenance and supply chain problems, have been longstanding issues for the F-35 program. These problems, collectively, have been a major contributor to low readiness rates for all U.S. F-35 fleets for years now, something TWZ has explored in great detail in this past feature.
The Fiscal Year 2026 budget request does include $3 billion in funding for more F-15EX Eagle II fighters for the Air Force, which would increase the planned fleet size of those aircraft from 98 to 129. That service is also asking for $870 million to continue moving ahead on its Collaborative Combat Aircraft (CCA) drone program, which would support continued work on the initial General Atomics YFQ-42A and Anduril YFQ-44A designs, as well as the ongoing refinement of concepts of operations.
When it comes to any annual budget request from the Pentagon, it is also important to note that Congress still has to approve the proposal and fund it. Legislators regularly make changes to defense spending plans, including when it comes to major weapon system programs. F/A-XX funding has notably been under threat from Congress in the past.
Many lawmakers have been raising concerns about dwindling U.S. combat jet inventories across the services, in general, for years now. Sen. Tom Cotton, an Arkansas Republican, asked Chief of Staff of the Air Force Gen. David Allvin at a hearing in May about whether he would be interested in receiving additional upgraded F-16s to bolster his force. The Air Force's top officer told Cotton he would get back to him about whether that was an 'advisable situation.'
Lockheed Martin has also started pitching a concept for a 'Ferrari' or 'NASCAR upgrade' to the F-35's core 'chassis,' together with a huge and as-yet unproven claim that it could offer 80 percent of the capability of a sixth-generation design at 50 percent of the cost. TWZ has noted in the past that any work toward that end could help provide a hedge against delays with the F-47 and/or F/A-XX.
The Pentagon does continues to insist that it has not completely abandoned the idea of next-generation carrier-based combat jets for the Navy, despite its stated focus on the F-47 at present.
'The department is dedicated to sixth-generation capability. So that's where we're going,' the senior U.S. military official said during the briefing today. 'How that's that's achieved right now, the F-47 is on path to be the leading agent of that, but sixth-gen is where we want to go.'
For the moment at least, the F-47, and by extension Boeing, has emerged as the big next-generation tactical aviation winner in the Pentagon's latest proposed budget for the upcoming fiscal year.
Contact the author: joe@twz.com
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Bloomberg
20 minutes ago
- Bloomberg
US Trade Partners Race for Deals as Trump Readies Tariff Notices
Major US trading partners scrambled over the weekend to finalize trade deals or lobby for extra time as President Donald Trump said he's notifying about a dozen countries on Monday of the new tariff level on their shipments to the US. 'I signed some letters and they'll go out on Monday – probably 12,' Trump told reporters over the Fourth of July weekend, adding that the missives involve 'different amounts of money, different amounts of tariffs and somewhat different statements.'

Miami Herald
28 minutes ago
- Miami Herald
Watch out for the threats that could derail the big rally
After a rally for the ages, the week ahead presents investors with some risks, maybe some big risks if people aren't careful. There are a few earnings reports to watch out for. Delta Air Lines (DAL) , due Thursday, started warning about bookings in March. Still, the second-quarter earnings season doesn't really kick in for real for another week. Don't miss the move: Subscribe to TheStreet's free daily newsletter Which leaves investors, whether professional managing billions or small investors trying to build a retirement stake, left to their own devices. So here's how the next week sets up. The big rally since roughly April 7 has made more money for stocks overall in two months than they did in all of 2024. The S&P 500 finished the week at 6,275. The close was a record, and the index hit a 52-week high of 6,285. The Nasdaq Composite also closed at a record 20,601, and it set a 52-week high of 20,624. The Nasdaq-100's close was a record 22,867 and reached as high as 22,896 on Friday. Related: Fund manager panel raises eyebrows with market forecasts The Dow Jones Industrial Average closed Friday at 44,829, its best finish in 2025. It's just 0.5% below its 52-week high of 45,074, reached in December. The small-cap Russell 2000 average ended Friday at 2,249, up 1%, but has struggled to keep pace with its brethren. Here's how the numbers work: S&P 500, up 29.9% since its 52-week low on April Nasdaq Composite: up 39.4% since April Nasdaq-100: up 38,2% from April Dow: up 22.4% from April Russell 2000: up 29.8% from April 9 low. But there is a catch: The weak first quarter performance and then the market reaction to President Trump's Liberation Plan on tariffs nearly offset the gains since April. Here's where the indexes stand for the year: S&P 500 is up just 6.8%. The Nasdaq: up 6.7%.The Nasdaq-100: up 8.8%.The Dow: up 5.4%. The Russell 2000: up 0.9%. Related: Goldman Sachs revamps Fed interest rate cut forecast for 2025 The big rally has many people on Wall Street very excited. Not just because it's so big but because it's what they all dreamed about after Donald Trump won the White House last November. Stocks would soar, they argued, because: Taxes would be cut. The big beautiful bill has been passed and signed. Regulation would be loosened. The administration, for better or worse, is doing just spirits, Wall Street's favorite catch phrase, would be set free. Here are the risks the markets face. President Trump wanted all trade negotiations with some 90 countries to be done signed by July 9. If a deal isn't done, the administration will send out letters as early as Monday saying in effect, "Here's what your tariff will be starting Aug. 1." From, maybe, 25% or so on European motor vehicles to 70%. The question is if the Administration will impose the tariffs as suddenly and crazily, as Trump threatened in April. More Economic Analysis: 'Wrong Way' Economic Bears Drive the S&P 500 to Another All-Time HighFederal Reserve prepares strong message on long-term interest ratesWeekly Wins: A Win for WYNN Resorts from Helene MeislerAnalyst makes bold call on stocks, bonds, andThursday's jobs report looked bullish on the surface, and a number of Wall Street firms started to boost their S&P 500 price targets. When 2025 opened, 7,000 on the index was the upper end again. Many analysts chopped forecasts back in April. But looking deeply into the jobs report suggests that private-sector employment was largely flat from May to June. The gains the Labor Department reported were concentrated mostly in government and non-profit sectors. Meanwhile, tech companies are laying off thousands. Microsoft (MSFT) announced 9,000 job cuts just this past week. And the future? We'll let Ford (F) CEO Jim Farley's recent prediction do the talking: "Artificial intelligence is going to replace literally half of all white-collar workers in the U.S." he told biographer Walter Isaacson at the Aspen Ideas Festival last month. Is anyone ready for that? Related: Analyst resets Datadog stock price target after surprise addition to S&P 500 President Trump's promise his policies will generate much more oil drilling in the United States assumes oil prices will remain. A warning: OPEC+, the group that follows production policies of when the Organization of Petroleum Exporting Countries, agreed Saturday to raise production by 548,000 barrels per day in August. The move further accelerated output increases at the group's first meeting since oil prices jumped - and then retreated - following Israeli and U.S. attacks on Iran in June. West Texas intermediate, the benchmark U.S. crude, finished Thursday at $67 a barrel. It's down 7.3% this year. Baker Hughes oil-rig data shows 539 rigs operating in the United States as of July 3, down 8% from a year ago. Relative strength indexes for all the indexes we've discussed ended Friday above 70, a signal prices are getting frothy. The indexes themselves may not be badly overbought: You need an RSI of 80 more to make the case. Even then, the animal spirits might not give up the game. But, when Thursday ended, 87 S&P 500 stocks had RSIs above 70. (U.S. markets were closed Friday for July 4.) Of these, 15 showed RSI levels above 80. Tops is Jabil Inc. (JBL) at 89. Others include financial giants Goldman Sachs (GS) , Citigroup (C) , State Street (STT) . JP Morgan Chase (JPM) , Morgan Stanley (MS) . Bank of America's (BAC) RSI is at 79. Again, high RSI levels don't mean stocks are ready to tumble. But a mistake - in the economy, in politics, in the markets - will make it easy for the risk-averse to commence some selling. We wlll probably see some this summer. Futures trading late Friday showed indexes falling. Sunday's late trading will offer a clearer picture. Related: Legendary fund manager issues stock market prediction as S&P 500 tests all-time highs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
39 minutes ago
- Yahoo
Is Israel on the brink of a golden age?
Benjamin Netanyahu was in favour. So, too, was Ehud Barak, his defence minister at the time in 2011. But Israel's top generals and intelligence chiefs were aghast. An attack on Iran's nuclear facilities, they feared, could result in tens of thousands of Israeli civilian deaths. Months after retiring as Mossad chief that year, Meir Dagan – one of Israel's most revered spymasters – even went as far as to call the idea 'the stupidest I've ever heard'. Yet 14 years later, despite widespread opposition at home and abroad, Mr Netanyahu's boldest gamble appears to have paid off. In just 12 days, he humbled Iran at a cost much lower than even Israel's most optimistic military planners would have dared hope. When he walks into the White House on Monday, the Israeli prime minister's meeting with Donald Trump will therefore have the feel of a Roman triumph. Both men will portray their battlefield success as vindication over the wishy-washiness of their critics. But they are also thinking beyond victory laps. Mr Trump hopes to burnish his peacemaking credentials by brokering another ceasefire in Gaza. His guest will aim higher still, arguing that he has helped birth a new regional order – one that could mark the dawn of a golden era for Israel. Since the horrors of Oct 7 2023, Israel has made a Herculean effort to sever the limbs of the Iranian Hydra – Hamas and Hezbollah – before going for the head itself as it launched its first direct war with a foreign state since 1973. Mr Netanyahu now believes a legacy-defining peace dividend is within reach: new alliances with Arab states, containment of Iran and the isolation – perhaps even the marginalisation – of the Palestinians. Several Arab states are seriously considering the Abraham Accords, says Gen Yossi Kuperwasser, former director-general of Israel's Ministry of Strategic Affairs, referring to the 2020 deal that normalised relations with Bahrain, the United Arab Emirates, Morocco and Sudan. 'There is a golden opportunity,' he said. 'Iran is weakened. The Iranian threat feared by many countries in the Middle East is much decreased. We are even talking about countries like Syria and Lebanon hopefully joining the Abraham Accords. Who would ever have dreamed that?' But while Mr Netanyahu may have won the war, there is scepticism over whether he is the man to win the peace. Much depends on whether he can reverse Carl von Clausewitz's famous dictum and pursue diplomacy 'as the continuation of war by other means', says Col Eran Lerman, a former deputy national security adviser. That Mr Netanyahu is even in a position to consider reshaping the Middle East would once have seemed miraculous. In 2010 and again in 2012, as he edged towards war with Iran, senior military and intelligence officials were so anxious they took to privately briefing The Telegraph and other Western media on the risks. Iran's Lebanese proxy Hezbollah had amassed such a vast missile arsenal they estimated retaliatory strikes could kill up to 50,000 people. Entire neighbourhoods of Tel Aviv would be reduced to rubble. The political cost – a possible rupture with Barack Obama, then US president – was also deemed too great. In hindsight, Israel may have overestimated the potency of Iran's proxies. By 2024, Israeli missile defences and battlefield intelligence had dramatically improved, allowing the Israel Defense Forces (IDF) to defeat Hezbollah in eight weeks last year and Iran itself in under a fortnight. But this was not simply a 12-day campaign of air strikes and covert hits. It was the culmination of 46 years of hostility, dating back to 1979, when Israel made peace with Egypt, formerly its greatest foe, and lost Iran – once its closest regional ally – to revolution. From the outset, the Islamic Republic waged an undeclared war on Israel, pledging its destruction and founding Hezbollah to fight Israeli forces in southern Lebanon. But for years Israeli strategists focused more on Palestinian militants than the Iranian threat – so much so that during the Iran-Iraq war in the 1980s, Israel secretly sold arms to Tehran through the Iran-Contra Affair. After the first Lebanon war, Israel redoubled its efforts to penetrate Hezbollah. But in 2006, when Israeli troops re-entered southern Lebanon, the results were sobering. The 34-day war ended in stalemate. Gen Assaf Orion, the IDF's former head of strategic planning, calls it 'not the brightest campaign we've run'. Few understood that better than Gen Mickey Edelstein, then commander of the Nahal Brigade, who recalls how unprepared his troops were. Accustomed to small operations against Palestinian groups, they struggled with full-scale warfare. Tactical goals were vague. Air support was inconsistent. Orders were sometimes contradictory. 'My brigade was shifted between three different divisions over the war,' he recalled. 'We would go into Lebanon, be pulled back into Israel and sent out again with a different division. A lot of mistakes were made.' After the war, senior commanders privately acknowledged failures in planning, command and intelligence – and lessons were learnt. Soldiers were retrained for major warfare. When Gen Edelstein returned to battle in Gaza in 2014, the forces he led were significantly more capable. Intelligence also underwent wholesale reform, said Col Lerman. 'Intelligence in 2006 was clearly insufficient for the conduct of successful operations. After the war, there was serious self-questioning about how well intelligence was collected and how well it was distributed to forces on the ground.' Amos Yadlin, then head of military intelligence, led sweeping changes that continue to shape Israeli warfare. From 2006 on, Israel grasped the full extent of the Iran-Hezbollah nexus. Of the 121 Israeli soldiers killed in 2006, many died from Iranian-made weapons – some fired by Iranian troops embedded with Hezbollah, according to Israeli officials. In the following years, Iran poured resources into Hezbollah, providing cash, training and ever more sophisticated rockets, missiles and drones. The goal was clear: build a deterrent so fearsome it would stop Israel from ever striking Iran's nuclear programme. But that scale became a vulnerability. 'From a nimble guerrilla organisation, it became an established army, requiring greater management,' said Gen Orion. 'And with that came the exposures and weaknesses of larger organisations.' Israeli intelligence infiltrated Hezbollah deeply. It even sold the group the explosive-laden pagers and walkie-talkies that maimed thousands of Hezbollah operatives over two days last September. Most of Hezbollah's senior leadership, including its overall commander Hassan Nasrallah, was also assassinated thanks to what Col Lerman describes as a 'deeply penetrating, co-ordinated effort stretching back decades'. It wasn't just personnel. Israeli planners had mapped Hezbollah and Iranian missile sites with such precision that they destroyed most launch capabilities before the first volleys were fired. As a result, Israel was able to strike Iran, kill much of its leadership and damage its nuclear programme – and face far more muted retaliation than once feared. Although 28 Israelis were killed and 15,000 lost their homes, neither Hezbollah nor Hamas launched a single rocket in Iran's defence. 'Really the most dramatic aspect of all this is that the organisation exclusively built for one purpose – to punish Israel horrendously if it dared attack Iran – did not fire a single shot during 12 days of war,' said Col Lerman. Israel has therefore emerged as the dominant military force in the region, with Mr Netanyahu's allies believing they can dictate a new dispensation for the region. Yet how the Israeli prime minister uses that dominance is now a central question. Since a ceasefire deal with Hezbollah in November, Israel has killed some 300 members of its fighters in targeted strikes – reportedly with the tacit consent of pasts of the Lebanese government, which may now be looking to disarm the group entirely. Covert action in Iran is also expected to continue. Military action beyond Israel's borders aside, however, what kind of future Mr Netanyahu envisions is up for debate. There are three possible paths, says Eran Etzion, a former deputy head of Israel's National Security Council and a critic of Mr Netanyahu. One is to 'live by the sword', fighting a 'forever war', a view, he said, preferred by elements on the Right of Mr Netanyahu's coalition, who argue Israel will never be accepted in the region. Another is 'conflict management' – continuing low-intensity fighting with Hamas, expanding West Bank settlements and perhaps trying to remove Palestinians from Gaza even while seeking friendship with Arab states. 'It's a vision of perpetual war with the Palestinians while striking normalisation agreements with other Arab countries,' says Mr Etzion, who believes this is the strategy Mr Netanyahu is most likely to adopt. The third option – long-term peace-building – is, in Mr Etzion's view, off the table under the present government. Critics warn that Mr Netanyahu's vision of victory risks being both fragile and short-lived if it depends solely on violence. The idea that Israel can indefinitely deter aggression without addressing Palestinian aspirations may prove illusory. Saudi Arabia, the biggest prize of all, insists that any Abraham Accords-style agreement requires progress towards a two-state solution. Crown Prince Mohammed bin Salman is thought to be eager for a deal, but without movement on a Palestinian state, his hands may be tied by public opinion, inflamed by the devastation inflicted on Gaza. Lebanon and Syria may also see advantage in rapprochement with Israel. But public sentiment remains volatile in both countries, too. Ahmed al-Sharaa, Syria's new president, appears conducive to the idea of better ties, particularly as he seeks to rebuild relations with the West. But many members of his group, Hayat Tahrir al-Sham (HTS), are deeply hostile to Israel. A splinter faction recently claimed responsibility for a suicide bombing in a Damascus church that killed 25 people last month. Mr Sharaa may fear pushing his hardliners too far. Israel, for all its strengths, may overreach. It is 'still numerically and materially inferior to the sum of all its potential enemies', said Gen Orion. 'Which is why it must retain its qualitative military edge and creative diplomacy.' Meanwhile, unless a robust diplomatic agreement emerges, Iran is likely to attempt to rebuild the triad of threats that once made it so formidable: its nuclear programme, ballistic missile arsenal and regional proxy network. 'The regional landscape is shifting dramatically,' said Shai Agmon, a fellow at New College, Oxford and academic director of Molad, a liberal Israeli think tank. 'Israel can reshape it to serve its own security interests and create a thriving regional order – or it can squander it. 'Israel is the strongest force around for now. But in the absence of a stable diplomatic resolution, Iran and its proxies will regroup and try to escalate the situation again. 'And unless the government is willing to consider a path towards regional peace – which necessarily entails some form of two-state solution, an idea it has so far refused even to entertain – it is hard to see how lasting stability will be achieved.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.