The Insider

This Friday INSIDER Daily Digest starts off with news about an upcoming Army experiment, the Army is making progress in giving ground commanders better control of the electromagnetic spectrum, the Navy may be looking at overseas shipbuilders, and we have a copy of U.S. European Command’s unfunded priorities list.

An Army experiment in Texas will look at how to defeat unmanned aircraft:

FY-26 Army experiment in Austin will test cUAS solutions in urban environment

The Army's Combat Capabilities Development Command C5ISR Center, in partnership with several other governmental organizations, will hold a weeklong exercise in Austin, TX early in fiscal year 2026, which will involve testing out industry counter-drone technologies in a dense urban environment.

The Army is making changes to one of its Brigade Combat Teams:

Manpack variant to take lead on TLS BCT, program office says

The Army is rearranging its Terrestrial Layer System Brigade Combat Team (TLS BCT) effort after finishing rapid prototyping by funneling the requirements and lessons learned into its man-packable version of the system, marking a slight shift in the Army's effort at providing commanders better access, awareness and control of the electromagnetic spectrum from the ground.

The Navy may include foreign shipyards in its shipbuilding program:

International allies must be part of shipbuilding capacity solution, CNO nominee says

Chief of Naval Operations nominee Adm. Daryl Caudle today told lawmakers he will consider tapping foreign shipyards to bolster the U.S. Navy's fleet via maintenance contracts and potentially new construction work, saying international allies must be part of the solution to domestic shipbuilding challenges.

Here’s a look at what U.S. European Command could not fit in its base budget:

EUCOM's unfunded list surges by more than $1B, highlighting needs of European allies

U.S. European Command has sent Congress a $1.6 billion unfunded priorities list, a major increase from the $141 million UPL it submitted last year, reflecting a significant surge in unmet requirements, including those intended to bolster U.S. allies, according to a previously unreported document obtained by Inside Defense.

Document: EUCOM's FY-26 unfunded priorities list

The Pentagon has once again scheduled an industry event for the Golden Dome effort:

Golden Dome Summit back on; Aug. 7 event part of push to engage nontraditional

The Pentagon is reviving a key industry summit for its Golden Dome for America missile defense initiative, renewing its push to attract nontraditional companies into the national security orbit as it races to draft an operational architecture by late September for a next-generation shield to defend the U.S. homeland.

This Thursday INSIDER Daily Digest has news on the negative effects of continuing resolutions on the Army, the Joint Strike Fighter program, artificial intelligence and more.

The continuing resolution "environment" in Congress that has lasted for more than two decades has hurt the Army in areas like being able to increase production rates for certain programs:

Army readying itself for continuing resolution atmosphere in FY-26, says budget czar

The likelihood of a continuing resolution in fiscal year 2026 will mean the Army could use some similar flexible spending authorities that were baked into the FY-25 yearlong CR, the service's budget director emphasized today.

As Lockheed Martin incrementally meets F-35 Joint Strike Fighter TR-3 stability and system integration criteria, the withheld amount owed by the Pentagon lessens:

Final withheld F-35 payment to Lockheed to be released in 2026

By next year, Lockheed Martin could be fully reimbursed for F-35 Joint Strike Fighter aircraft after the Pentagon moved to withhold a portion of the payments until the company could deliver complete Technology Refresh-3 capable jets.

The Senate Armed Services Committee’s version of the fiscal year 2026 defense policy bill would require the Defense Department to establish teams dedicated to testing and experimenting with artificial intelligence capabilities, among other efforts to advance the military’s use of the technology:

Senate authorizers tell DOD to plan better to leverage AI for military use

Lawmakers want the Pentagon to develop guidance for its wide array of data and AI initiatives, per a Senate panel report released Sunday.

Of the 153 projects identified as unneeded in the fiscal year 2026 budget request, 144 would come from Air Force sites -- and cost about $101.4 million to destroy -- while nine are designated as Space Force infrastructure and would charge $6.1 million to knock down:

Air Force pegs 153 projects for demolition in FY-26 as excess capacity woes mount

The Air Force is asking to get rid of 153 facilities and other infrastructure next year in an effort to shift spending toward modernization and the development of priority systems, a service spokesperson told Inside Defense.

The House Armed Services Committee held a hearing this week on acquisition reform:

Reform-minded lawmakers eye Duffey's growing to-do list as DOD's new acquisition boss

Michael Duffey, the Pentagon's new acquisition chief, was reminded by lawmakers on the House Armed Services Committee today of the many matters that require his attention, including a major defense program review, controversial "right to repair" policies, the perennial task of reforming the military's bureaucratic procurement system as well as the need to be more transparent with Congress.

Award of M1E3 Abrams subcontract to Spanish company draws congressional ire

The Army's decision to award a subcontract for the main propulsion system of the M1E3, the next-generation Abrams tank, has drawn the anger of members of Congress.

The Air Force is still trying to nail down the total number of Grey Wolf helicopters it plans to procure:

Senators want Air Force to recommit to more MH-139 helos

Senate authorizers are trying to reverse the Air Force's decision last year to significantly reduce its planned buy of MH-139 Grey Wolf helicopters, citing a rapid need to fully replace Vietnam War-era UH-1 Hueys.

Last but by no means least, General Dynamics held its quarterly earnings call this week:

Marine business growing rapidly at GD, though shipbuilding challenges continue

General Dynamics reported strong growth in its maritime business segment during its second quarter earnings call today, though the company faces enduring supply chain challenges and shipbuilding schedule and cost performance continues to suffer across the Navy’s portfolio.

The Senate confirmed former Space Force Lt. Col. Matthew Lohmeier as Air Force under secretary today in a 52-46 vote along party lines.

Lohmeier will join Secretary Troy Meink in leading the Air Force Department, which includes the Space Force.

Lohmeier -- one of several of President Trump’s controversial Defense Department picks -- had most recently served as commander of the 11th Space Warning Squadron. He was relieved of those duties in 2021 for self-publishing a book and subsequently speaking on a podcast alleging that Marxism was spreading through the Pentagon.

In the time since, he has been outspoken on social media about what he sees as negative impacts of diversity, equity and inclusion initiatives at DOD.

Lohmeier, during his confirmation hearing, committed to leaving politics out of his decisions as under secretary, even as Democrats grilled him for his openly expressed right-wing views.

Lohmeier graduated from the Air Force Academy in 2006 and began his active-duty career as a T-38 Talon instructor pilot and an F-15C Eagle fighter pilot before shifting his focus to space-based missile warning at the stand-up of the Space Force.

This Wednesday INSIDER Daily Digest has news on the Pentagon's Golden Dome missile defense system, plus the latest on the Cybersecurity Maturity Model Certification program and more.

We start off with coverage of the Pentagon's Golden Dome missile defense system:

MDA seeks next-generation domestic missile launcher for 'Golden Dome' underlayer

The Missile Defense Agency is seeking industry concepts for mobile launcher systems capable of supporting a new underlayer of missile defense as part of the Pentagon's Golden Dome for America initiative, ideas that could be fielded within two years.

Guetlein outlines first Golden Dome priorities

As head of the "Golden Dome for America" initiative, Space Force Gen. Michael Guetlein said today he will spend his first 60 days focused on building partnerships across the Defense Department and other federal agencies, developing a comprehensive command and control structure and assessing the industrial base for capabilities and capacity.

Guetlein given direct line to deputy secretary as Golden Dome effort kicks off

The Pentagon has granted Gen. Mike Guetlein an unusually direct reporting chain in his new role overseeing the Golden Dome for America missile defense initiative, underscoring the program's elevated status and urgency.

. . . Followed by the latest on the Pentagon's Cybersecurity Maturity Model Certification program from our colleagues at Inside Cybersecurity:

Second CMMC rulemaking setting timeline for program launch enters interagency review process

The official kickoff for the Pentagon's Cybersecurity Maturity Model Certification program is getting closer to fruition with a final rule to establish a timeline for contracts now entering the interagency review process at the Office of Management and Budget.

. . . Plus more coverage of the Senate Armed Services Committee's fiscal year 2026 defense policy bill:

Senate authorizers still want the Army to buy six RCVs next year

Lawmakers on the Senate Armed Services Committee are tasking the Army with buying six more Robotic Combat Vehicles in fiscal year 2026 despite the service cancelling the competition two months ago in a move that committee members hope will salvage autonomous progress made by the program.

Senators want to know why Navy hasn't implemented GAO shipbuilding recommendations

Lawmakers want to know why the Navy has not implemented the majority of shipbuilding improvement recommendations provided by government auditors over the past decade, with the Senate Armed Services Committee's draft defense policy bill directing the Navy secretary to deliver a report on the subject by May 2026.

Lockheed Martin's CEO discussed his company's quarterly earnings this week:

Lockheed takes $950M loss on classified program in second quarter

Lockheed Martin logged a $1.8 billion loss in the second quarter of 2025, $950 million of which came from a "critical" classified aeronautics program, company CEO Jim Taiclet told investors this week.

Looks like Boeing will be getting an order for more KC-46 airborne refueling tankers:

Air Force to buy 75 more KC-46s, nixes 'bridge' tanker competition

The Air Force has decided to purchase another 75 KC-46 Pegasus tankers after its current contract expires, putting an end to whispers the service would instead hold a competition to fill aerial refueling gaps.

New Jersey lawmakers are scrambling to defend Picatinny Arsenal from possible budget cuts:

New Jersey lawmakers cry foul over Army PEO restructuring plan

The Army is weighing a plan to consolidate its acquisition offices that is ruffling the feathers of New Jersey lawmakers who say the proposal will harm rather than help the service's munitions procurement and will cripple Picatinny Arsenal, NJ, which oversees that work.

Document: New Jersey lawmakers' letter on proposed Army cuts to Picatinny Arsenal

This Tuesday INSIDER Daily Digest has news on the Army's unfunded priorities list, plus Northrop Grumman's quarterly earnings call this morning and coverage of the Senate's draft defense policy bill.

We start off with new details from the Army's unfunded priorities list:

Army's detailed unfunded list highlights Patriot, counter-done tech, precision strike needs

The Army's fiscal year 2026 unfunded priorities list, a previously unreported document obtained by Inside Defense, details 37 individual unmet needs the service would like Congress to consider funding, highlighting the Patriot missile system, the Coyote counter-drone system, the Precision Strike Missile and a host of others.

Document: Army's FY-26 unfunded priorities list

Defense contractors' earnings season is in full swing. We turn our attention to Northrop Grumman's call from earlier this morning:

Northrop resumes Sentinel launch facility work, rebaselining ongoing

Northrop Grumman got the OK to resume requirements and design work on the launch facilities that will support the Sentinel nuclear missile system, CEO Kathy Warden said today, even though rebaselining on the program continues within the Defense Department.

Sticking to the Sentinel program, Senate authorizers have something to say about it:

Senate authorizers seek update on Minuteman III amid Sentinel delays

The Senate Armed Services Committee in the report accompanying its fiscal year 2026 authorization bill would order a briefing on how Air Force Global Strike Command plans to maintain its Cold War-era fleet of intercontinental ballistic missiles as the Sentinel modernization program continues to face delays.

. . . Plus some Army- and Navy-related coverage of the report accompanying the Senate Armed Services Committee's fiscal year 2026 defense authorization bill:

Senate authorizers ask for ABCT, SBCT modernization plans as TiC turns to heavy vehicles

Lawmakers want to hear the Army's plan to get modernized combat vehicles into its heavy Brigade Combat Teams, citing the service's recent focus on lighter formations and "years of lagging investment" as causes for concern, according to the Senate Armed Services Committee's version of the fiscal year 2026 defense policy bill.

Senate authorizers urge Army to pursue new multiyear for Black Hawk

The Senate Armed Services Committee is encouraging -- but not mandating -- the Army to pursue an eleventh multiyear procurement contract for the UH-60 Black Hawk helicopter beyond fiscal year 2026.

Senate authorizers want Navy to continue F/A-XX development despite concerns from White House

Senate authorizers are signaling support for the Navy's sixth-generation tactical aircraft program, despite concerns from the White House Office of Management and Budget and a lack of funding prioritization from the Pentagon.

Lawmakers want a more open and competitive solicitation process for new MUSV

Senate authorizers are signaling concern with the Navy's plan to combine medium and large unmanned surface vessel efforts into one program -- the Modular Attack Surface Craft.

This Monday INSIDER Daily Digest has news on the chief of the Pentagon's Golden Dome missile defense program, the Army learning lessons from the war in Ukraine, the U.S. shipbuilding industrial base and more.

We start off with news about the recently confirmed head of the Pentagon's Golden Dome missile defense program:

Senate confirms Guetlein to lead $175 billion 'Golden Dome' missile shield without hearing

The Senate last week confirmed Gen. Michael Guetlein to lead one of the most ambitious and expensive defense technology projects in U.S. history: the $175 billion "Golden Dome for America" initiative, aimed at delivering a next-generation missile defense shield within three years.

Brig. Gen. Curtis King, commander of the 10th Army Air and Missile Defense Command, delivered a stark assessment of how the war in Ukraine is reshaping U.S. Army air defense priorities in Europe during July 16 remarks at the LandEuro conference in Wiesbaden, Germany:

Army brass, eyeing Ukraine, warn of urgent need to counter high-tempo aerial barrages

The Army is drawing urgent lessons from the war in Ukraine that are reshaping its approach to air and missile defense, with a key leader emphasizing the need to counter massed attacks, treat sustainment as a strategic imperative and harness data as the defining currency of future combat.

Fincantieri Marine Group CEO George Moutafis recently spoke at a panel hosted by the shipbuilding company:

New Fincantieri Marine Group CEO ready to work with Trump administration to build up domestic shipbuilding capacity

As urgency surrounding U.S. shipbuilding increases, a new chief executive officer enters the fray, with hopes to work with national leaders to reach a timely solution as China continues to build up its navy -- igniting worries of a potential Taiwanese invasion by 2027.

Hanwha Philly Shipyard will look to increase its annual output from a rate of one to one-and-a-half vessels today, to six-to-10 vessels per year within the next decade, according to CEO David Kim:

Hanwha Philly Shipyard aims to deliver Navy auxiliary vessels within a decade

PHILADELPHIA, PA -- After finalizing its $100 million acquisition of Philly Shipyard in December, South Korean conglomerate Hanwha aims to begin building and delivering non-combatant auxiliary vessels to the U.S. Navy within the next decade as part of a 10-year plan to expand military and commercial business at the historic yard.

The Defense Innovation Unit has been working to overhaul its program to pre-approve dual-use drones and components for military use -- called the "Blue List" -- when President Trump hit the organization with a 90-day deadline in June to make sure the list included "all drones and critical drone components" compliant with regulatory statutes laid out in the Fiscal Year 2020 National Defense Authorization Act:

DIU updates drone pre-screening initiative, names initial third-party evaluators

The Pentagon's innovation arm shared updates last Wednesday on its efforts to accelerate and scale compliance evaluations for U.S.-made uncrewed aerial systems and components, in line with top-level directives released in the past month to establish domestic drone dominance.

Last but by no means least, some cyber defense news from our colleagues at Inside Cybersecurity:

DOD establishes formal structure to move forward adoption of zero-trust strategy

The Pentagon is setting up a formal structure to guide the next stage of implementing zero trust across the Defense Department, including the creation of a Chief Zero Trust Officer and a DOD ZT Executive Committee.

Document: DOD's zero-trust strategy implementation memo

Senate bill features strategy on protecting defense critical infrastructure from cyberattacks, artificial intelligence provisions

The Senate Armed Services Committee has released the full text of its version of the fiscal year 2026 defense authorization bill, including provisions to require the Pentagon to produce a strategy on protecting defense critical infrastructure and the creation of a public-private partnership to address cyber threats from artificial intelligence.

The Army has awarded Anduril a $99.6 million contract to lead a prototyping effort that will yield a Next Generation Command and Control architecture for the 4th Infantry Division within a year, moving the service a step closer toward scaling its network to the division-level.

NGC2 is the Army’s sweeping network modernization program designed as a four-layered technology stack to include “transport, infrastructure, data and applications,” allowing the Army to consolidate its information to help commanders make quicker decisions, according to a press release published today.

The announcement revealed that Anduril, working with a team of industry partners, will have 11 months to deliver the division-level NGC2 prototype under an other transaction agreement (OTA), which was awarded by the Command, Control, Communications and Network Program Executive Office.

“This award further demonstrates that the Army can move faster, smarter, and in step with innovation,” Jesse Tolleson, acting assistant secretary of the Army for acquisition, logistics and technology, said in a statement. “Leveraging nontraditional acquisition pathways and inviting industry into an iterative development process breaks down barriers and delivers capability at the speed of relevance.”

Anduril will work with fellow technology companies Govini, Instant Connect Enterprise, Microsoft, Palantir Technologies, Research Innovations and Striveworks on the prototype, according to a company release.

The Army successfully tested NGC2 at the battalion level in March during Project Convergence Capstone 5 at Ft. Irwin, CA, and quickly pivoted to seek out companies that can scale up to a division for next year’s experiment, Project Convergence Capstone 6, Inside Defense previously reported.

Team Anduril was already involved in the PCC5 experiment this year, so the OTA will “maintain momentum” for the Army while the service builds up a competition with other companies that want to join the running for NGC2 efforts, according to today’s announcement.

More OTAs are expected later in fiscal year 2025 through a commercial solutions opening (CSO) for units like the 25th Infantry Division and III Corps Headquarters, the release says; the service published a CSO in May which announced it would soon choose up to three companies for OTA awards to deliver prototypes of NGC2.

“NGC2 is not just a capability. It’s a blueprint for how we’ll deliver future Army systems,” Gen. James Rainey, head of Army Futures Command, said in a statement. “This award reflects a fundamentally different relationship with industry, built on shared purpose, speed, and trust.”

The 4th Infantry Division will demonstrate the scaled-up NGC2 prototype at PCC6 next summer “as its primary C2 system,” which will include incorporating it into “multiple brigades, headquarters and enablers,” according to today’s release.