The Insider

President Trump said in the Oval Office today that the upcoming U.S. defense budget will be near $1 trillion, with Defense Secretary Pete Hegseth posting on social media that the massive Pentagon topline is "coming soon."

Trump, in an Oval Office meeting with Israeli Prime Minister Benjamin Netanyahu, said the White House has approved a defense budget “in the [vicinity]" of $1 trillion.

“Nobody has seen anything like it,” he said. “We're going to be approving a budget and I'm proud to say the biggest one we've ever done for the military.”

Hegseth later posted on X, thanking Trump.

“COMING SOON: the first TRILLION dollar @DeptofDefense budget,” he wrote. “President@realDonaldTrump is rebuilding our military -- and FAST. (PS: we intend to spend every taxpayer dollar wisely -- on lethality and readiness).”

Neither the Pentagon nor the White House responded to additional requests for comment and it remains unclear when the Trump administration will submit its fiscal year 2026 budget. Some analysts predict the budget could be released in late May, while others say a “skinny” budget might be announced with only topline information and little to no detail.

Trump, it should be noted, felt differently in February when he said he wanted to meet Chinese President Xi Jinping and Russian President Vladmir Putin to reduce their nuclear arsenals and cut military spending "in half."

The promise of a $1 trillion defense budget also comes as DOD is crafting its own 8% budget “re-look” for FY-26 and beyond, which would cut about $50 billion annually from existing spending and re-allocate toward new priorities.

The Pentagon is also in the midst of cutting between 5% and 8% of its total civilian workforce.

Trump’s promise of $1 trillion also follows the passage of a yearlong continuing resolution that amounts to a cut in defense spending because the topline does not keep pace with inflation, reducing Pentagon buying power.

Air and Space Forces civilian employees can apply for the Defense Department’s Deferred Resignation Program or Voluntary Early Retirement Authority until April 14 as part of the Air Force Department’s workforce reduction efforts.

“To reduce the size of our civilian workforce by 5-8% in the coming months and strategically restructure, the DAF will execute a broad outreach campaign to maximize employee awareness and opportunity to participate in these voluntary programs,” acting Assistant Air Force Secretary Gwendolyn DeFilippi wrote in a memo Friday.

Several categories are not eligible for DRP or VERA, she wrote:

• Flight instructors.
• Highly Qualified Experts.
• Childcare and youth program employees.
• Non-Appropriated Fund employees.
• Foreign Local National employees
• Dual-Status Military Technicians.
• Re-Employed Annuitants.

Employees who accept DRP or VERA could be placed on paid administrative leave no earlier than May 1 before officially resigning or retiring Sept. 30.

Some employees had already accepted such programs, officials told reporters last month, before this window opened.

Some officials have warned that losing civilians could damage or slow the work done by the services.

“DAF supports a large portion of the workforce participating in these programs while ensuring the Air Force and Space Force maintain operational readiness and the ability to perform mission essential functions,” DeFelippi wrote, with emphasis. “Employees are not approved for DRP immediately upon application.”

Once the application period ends, the department will evaluate how the resignations or retirements may affect various teams and may implement additional exemptions for the programs, DeFelippi wrote. Should further exemptions, the department will prioritize VERA applicants.

To apply for VERA and retire with full benefits, employees must be at least 50 years old with at least 20 years of federal service of any age with at least 25 years of service.

Officials can ask for deadline extensions for employees who are not able to complete the applications in time and were on approved absence during the application window. Those extensions need to be requested before April 21.

This Monday INSIDER Daily Digest has news on the Navy's future warship spending plans, the possibility of U.S. Northern and Southern commands merging into a single combatant command and more.

We start off with coverage of the Navy League's Sea-Air-Space symposium taking place this week:

Facing budget pressure, Navy may look to retire or reduce spending on cruisers and other aging platforms

NATIONAL HARBOR, MD -- As the Navy faces spending pressure from the full-year continuing resolution and a Pentagon-wide budget review, it may look to retire or scale back spending on aging platforms like cruisers as it prioritizes personnel, munitions and capacity for shipbuilding and unmanned systems, the sea service's top officer said today.

(Read our full Sea-Air-Space coverage.)

Could U.S. Northern and Southern commands be merged into a single combatant command? Some lawmakers aren't on board just yet:

Trump official sidesteps COCOM consolidation questions amid congressional pushback

A Trump administration official declined to provide clear answers last week on whether the U.S. military plans to consolidate its combatant command structure, amid intensifying concerns from lawmakers and warnings from senior commanders about the potential risks such changes could pose to national security.

Document: NORTHCOM, SOUTHCOM FY-26 posture statements

New NSSL Phase 3 Lane 2 indefinite-delivery requirements contracts have been awarded to SpaceX, United Launch Alliance and Blue Origin, according to a Space Force announcement:

Three providers awarded $13.7B for space launches

The Space Force has awarded National Security Space Launch missions to three vendors, totaling more than $13.7 billion over the five-year contracting window.

On April 4, the Missile Defense Agency, in partnership with the Space Force, announced a three-day event from April 30 to May 2 in Huntsville, AL, to brief industry on the scope of the Space-Based Interceptor (SBI) program and gather technical ideas for what could become a centerpiece of the Trump administration's new missile shield:

Pentagon summons industry to help build space-based interceptors for Golden Dome

The Defense Department is taking a critical next step in its drive to build a space-based missile shield over the United States, inviting a broad array of companies -- including non-traditional defense firms -- to contribute concepts for a potential network of orbital interceptors capable of striking enemy missiles during launch.

Document: MDA notice on SBI industry event

Gen. Christopher Cavoli, the head of U.S. European Command, testified at a recent Senate Armed Services Committee hearing:

EUCOM warns of Russian land buildup as Army eyes cuts in wake of Hegseth budget drill

The Army is reportedly weighing the most significant troop reduction in years, even as military commanders in Europe warn that Russia is reconstituting its land forces at a speed and scale which could challenge NATO deterrence before the alliance fully rebuilds its own.

Document: EUCOM, AFRICOM FY-26 posture statements

NATIONAL HARBOR, MD -- United States shipbuilder HII have signed a memorandum of understanding with South Korean shipbuilder HD Hyundai Heavy Industries to "explore opportunities to collaborate on accelerating ship production" for both defense and commercial work, the companies announced today.

Signed by executives from the two companies this morning during the Navy League's Sea-Air-Space conference, the MOU is the latest indication of increased collaboration between the U.S. and South Korean shipbuilding industries.

It connects HII -- a U.S. shipbuilding giant involved in the production of most of the Navy’s surface and undersea fleet including its nuclear-powered aircraft carriers and both the Columbia- and Virginia-class submarine programs -- with one of the largest shipbuilders in the world in HD Hyundai Heavy Industries (HHI).

The initial focus of the partnership will be an exchange of technologies and lessons learned, with the potential for “component outsourcing” to follow, HII Executive Vice President and President of Ingalls Shipbuilding Brian Blanchette told reporters following the signing. HII will soon host a delegation from HHI at its U.S. facilities, Blanchette said.

“Today’s agreement reflects our commitment to explore all opportunities to expand U.S. shipbuilding capacity in support of national security,” Blanchette said. “By working with our shipbuilding allies and sharing best practices, we believe this MOU offers real potential to help accelerate delivery of quality ships.”

The partnership is intended to “leverage the combined expertise and resources of both companies to advance technological innovation, maximize production efficiency, and strengthen the global defense industry,” according to an HII press release.

“This partnership marks a new milestone for both of our companies and provides us with the unique opportunity to expand our expertise in shipbuilding,” said Won-ho Joo, chief executive of HHI’s naval and special ship business unit. “We look forward to working with HII to explore new possibilities and deliver even greater value to our customers.”

As the U.S. shipbuilding industry looks for ways to boost ship and submarine output, the Navy has encouraged South Korean and other international shipbuilders to invest in U.S. industry, with former Navy Secretary Carlos Del Toro saying a “cash infusion” from foreign companies could improve production capacity.

Last summer, South Korean defense conglomerate Hanwha purchased Philadelphia-based Philly Shipyard where it plans to take on ship and submarine module fabrication work.

Fiscal year 2026 posture is in full swing on Capitol Hill and senior leaders are scheduled to speak at numerous congressional hearings. The Navy League is also hosting its annual Sea Air Space Conference.

Monday

The Navy League hosts its annual Sea Air Space Conference in National Harbor, MD.

Tuesday

The Senate Armed Services strategic forces committee holds a closed hearing on the Sentinel program.

The Senate Armed Services Committee holds a hearing to consider several defense nominees.

The Senate Armed Services seapower subcommittee holds a hearing on nuclear shipbuilding.

The Senate Armed Services emerging threats and capabilities subcommittee holds a hearing on U.S. Special Operations Command.

The House Armed Services Committee holds a hearing on U.S. military posture and security challenges in Europe.

The House Armed Services cyber, information technologies and innovation subcommittee holds a hearing with the National Security Commission for Emerging Biotechnology.

Wednesday

The Senate Armed Services Committee holds a hearing on DOD personnel policies.

The Senate Armed Services cybersecurity subcommittee is scheduled to hold a hearing on U.S. Cyber Command.

The House Armed Services strategic forces subcommittee holds a hearing on the strategic posture of the United States.

The House Armed Services intelligence and special operations subcommittee holds a hearing on U.S. Special Operations Command.

The House Armed Services Committee holds a hearing on the Indo-Pacific region.

Thursday

The Senate Armed Services Committee holds a hearing on U.S. Indo-Pacific Command and U.S. Forces Korea.

This Friday INSIDER Daily Digest has news on Russia's military manpower buildup, plus Army Materiel Command's use of AI in its supply chain and more.

Gen. Christopher Cavoli, the head of U.S. European Command, testified this week at a Senate Armed Services Committee hearing:

EUCOM warns of Russian land buildup as Army eyes cuts in wake of Hegseth budget drill

The Army is reportedly weighing the most significant troop reduction in years, even as military commanders in Europe warn that Russia is reconstituting its land forces at a speed and scale which could challenge NATO deterrence before the alliance fully rebuilds its own.

Document: EUCOM, AFRICOM FY-26 posture statements

Inside Defense recently chatted with a senior Army Materiel Command official in Alabama on the sidelines of a big AUSA convention:

Army Materiel Command wants to use AI to identify critical supply chain gaps

HUNTSVILLE, AL -- When Richard Martin, the director of supply chain management at Army Materiel Command, wants to find out more information about a long-lead item, he can see how many vendors are on contract and which ones have delivered on time. But Martin and his AMC team want to know more.

(Read our full AUSA coverage.)

Chief of Space Operations Gen. Chance Saltzman spoke to the U.S.-China Economic and Security Review Commission this week:

Space Force needs S&T funding to compete with China’s space efforts

The Space Force will need to secure more funding for early-stage developments that have the potential to fail if the U.S. hopes to remain competitive with China in future space capabilities, according to the service's top officer.

Senate Armed Services Committee Chairman Roger Wicker (R-MS), in a Washington Post op-ed, wrote this week that the "opening salvo" of the reconciliation package, combined with his acquisition reform proposal and an "additional real growth" in the defense topline for fiscal year 2026, would be akin to a good "opening act":

Wicker sees GOP budget resolution as 'opening act' for major defense surge

Senate Republicans have proposed a budget reconciliation package that would pump $150 billion into the U.S. defense topline in the coming years, with one senior GOP chairman laying out an ambitious vision for new spending and reform that he says would mirror the Reagan and Eisenhower eras.

The first GENUS regional repair element will be housed within the Support Center Pacific at Kadena Air Base, Japan and operated by the Oklahoma City Air Logistics Complex:

First Air Force GENUS nodes to stand up in Japan in three to five years

The Air Force Sustainment Center is finalizing plans with Japan to establish the first Regional Repair Facility via the Global Enterprise Network for Universal Sustainment in the next three to five years, Inside Defense has learned, but a pilot program could arrive in as soon as one year.

The Army will brief industry in late April on the service's projected program goals and potential contracting plans for the next two fiscal years to give companies an idea of how to compete, according to an announcement posted today.

Contractors, small businesses and academia will gather at Aberdeen Proving Ground, MD on April 22 and April 23, for what the Army calls the “Advance Planning Briefing to Industry,” where program executive offices and Army commands will lay out their outlook for the next couple years.

“The APG APBI will identify and showcase potential contracting opportunities that are closely tied to the organization’s roadmap, enabling industry stakeholders to prepare and respond to emerging needs,” the announcement reads.

Day one will include briefings from Communications-Electronics Command, Combat Capabilities Development Command, Army Test and Evaluation Command and the joint program executive office for chemical, biological, radiological and nuclear defense.

Day two will follow with presentations from the intelligence, electronic warfare and sensors PEO and the command, control, communications and network PEO, according to the release.

Aside from the main briefings at Myer Auditorium, the Army is also offering additional in-person and one-on-one sessions for certain programs at the Mallette Training Facility at APG during the two-day event.