The Insider

The INSIDER daily digest -- June 18, 2025
By John Liang
June 18, 2025 at 2:21 PM

This Wednesday INSIDER Daily Digest has news on autonomous systems being able to function without GPS in combat, plus the Air Force's E-7A Wedgetail airborne warning and control aircraft and more.

A top executive at SheildAI spoke at a recent Center for Strategic and International Studies discussion:

ShieldAI: GPS is one of the greatest hurdles facing autonomous mass

Autonomously piloted drones will need to be able to survive without several capabilities often taken for granted in war, such as GPS and communications, according to Ryan Tseng, co-founder and president of ShieldAI.

News on the Air Force's E-7A Wedgetail airborne warning and control aircraft:

House appropriators call for commitment to E-7A despite DOD's intended shift to space-based ISR

The Air Force is requesting just a third of what it spent last year on research and development for the E-7A Wedgetail and may cancel future purchases while the House Appropriations Committee in its fiscal year 2026 budget would order the service to commit to the platform moving forward.

A recent other transaction agreement (OTA) with OpenAI is the first of several partnerships between the Pentagon's Chief Data and Artificial Intelligence Office and cutting-edge AI companies to come:

CDAO awards OpenAI $200M for AI-enabled workflow prototype

The Defense Department's Chief Data and Artificial Intelligence Office announced yesterday that it will award OpenAI $200 million to develop AI-enabled systems designed to perform complex tasks while maintaining human oversight and control.

More coverage of the Government Accountability Office's annual weapon systems assessment report:

PrSM to hit production pivot point this month

The Army will undergo a production decision review this month for the first increment of its Precision Strike Missile (PrSM) program, according to the Government Accountability Office's Weapon System Annual Assessment report, released last week.

GAO: Cost of fielding first Dark Eagle battery increased by $150 million in a year

The cost of fielding the Army's first Long Range Hypersonic Weapon battery, also known as Dark Eagle, rose by $150 million in the last year, according to the Government Accountability Office's annual weapon systems assessment.

Document: GAO's 2025 weapon systems annual assessment

Velez-Green nominated for key policy post
By Tony Bertuca
June 18, 2025 at 1:11 PM

Pentagon adviser Alexander Velez-Green has been nominated to serve as deputy under secretary of defense for policy.

Velez-Green is currently a senior adviser to Under Secretary of Defense for Policy Elbridge Colby.

He previously served as a national security adviser to Sen. Josh Hawley (R-MO) and held positions at the Heritage Foundation and RAND Corp.

Meanwhile, the Trump administration has announced it intends to release a new National Defense Strategy in August.

Colby, during his nomination hearing, discussed his view that the United States should consider lesser roles in Europe and the Middle East in order to properly pivot to the Indo-Pacific region to compete with China.

Israel’s recent bombing campaign against Iran, however, is likely to impact the Trump administration’s plans for a global military posture, especially as the president reportedly weighs U.S. strikes against Tehran’s nuclear capabilities.

Hanwha poised to grow ownership stake in Austal USA following regulatory approval
By Nick Wilson
June 18, 2025 at 12:27 PM

The Hanwha Group is a step closer to increasing its stake in Austal USA from 9.9% to 19.9% after the Committee on Foreign Investment in the United States approved the South Korean company to expand its ownership share to up to 100%, the company announced last week.

Receiving the blessing of the U.S. regulatory body -- which found “no unresolved national security concerns” for the transaction -- clears an important hurdle for Hanwha, though the move still must be approved by Australia’s Foreign Investment Review Board before it is finalized.

Hanwha has expanded its presence in U.S. markets in recent months with Navy leadership under the Biden and now Trump administrations encouraging foreign investment in the overburdened domestic shipbuilding industry, especially from South Korean and Japanese companies.

In December, Hanwha completed its $100 million acquisition of Philly Shipyard, with plans to take on module fabrication work for Navy warships and submarines. Hanwha gained its current 9.9% stake in Austal USA in March after an unsuccessful attempt to fully acquire the company last year.

“The CFIUS outcome is evidence of the strong support we have within the U.S. government, based on our track record of collaboration with U.S. and allied partners, our expertise and technology, and our performance in delivering on time and at scale,” Hanwha Global Defense CEO Michael Coulter said in a statement included in the release.

“It is also consistent with the significant interest we are receiving from the U.S. government for further transfer of our technology and practices from Korea to help uplift shipbuilding in the United States,” Coulter’s statement continues.

Austal, meanwhile, is undergoing a portfolio pivot at its Mobile, AL yard as it finishes production work on legacy aluminum vessels like the Littoral Combat Ship and begins building several steel ship classes as well as submarine modules.

According to Hanwha’s announcement, the South Korean shipbuilder’s increased equity in Austal will provide “access to capital, international relationships, and operational and technical expertise that can accelerate the development of Austal’s business.”

Adm. Daryl Caudle nominated for CNO post
By Nick Wilson
June 18, 2025 at 10:32 AM

Adm. Daryl Caudle has been nominated to serve as the next chief of naval operations, according to a congressional notice indicating the nomination was received in the Senate on Tuesday.

Caudle is a career submariner who currently leads U.S. Fleet Forces Command and has in the past served as the head of Naval Submarine Forces and Naval Submarine Force Atlantic. He is expected to testify before the Senate Armed Services Committee as part of the confirmation process.

Caudle has been rumored to be a top contender for the CNO job, which has stood vacant for almost four months since Adm. Lisa Franchetti was abruptly fired without explanation in February.

Vice Chief of Naval Operations Adm. Jim Kilby has been performing the duties of CNO since Franchetti’s removal and has sought to continue implementing the policies outlined in her Navigation Plan.

Mahoney tapped for vice chairman of JCS
By Tony Bertuca
June 18, 2025 at 10:19 AM

Marine Corps Gen. Christopher Mahoney has been nominated to serve as vice chairman of the Joint Chiefs of Staff.

Mahoney currently serves as assistant commandant of the Marine Corps.

If confirmed, Mahoney would succeed Adm. Christopher Grady.

DOD approves new Unified Command Plan, transfers Greenland to NORTHCOM
By Tony Bertuca
June 17, 2025 at 3:42 PM

The Defense Department has completed its congressionally mandated Unified Command Plan review, announcing its decision to transfer oversight of Greenland from U.S. European Command's area of responsibility to U.S. Northern Command.

The announcement follows months of speculation and reports that the Trump administration had ordered DOD to consider consolidating some COCOMs.

When asked if additional -- but unannounced -- changes had been made to the UCP, a defense official said all further information is classified.

Still, the announcement doesn't mention any of the reported ideas that drew strong congressional pushback, like combining U.S. Northern Command and U.S. Southern Command, or merging U.S. European Command with U.S. Africa Command.

Reports of the possible consolidation so concerned House Armed Services Committee Chairman Mike Rogers (R-AL) and Senate Armed Services Committee Chairman Roger Wicker (R-MS) that they issued a joint statement in March warning DOD about moving ahead without the consent of Congress.

“We will not accept significant changes to our warfighting structure made without congressional oversight,” they wrote.

Meanwhile, the decision to move Greenland from EUCOM to NORTHCOM is aligned with the Trump administration’s goal of gaining control of the autonomously governed Danish territory.

Moving Greenland to NORTHCOM also means any Pentagon oversight associated with it will be considered in the same lane as U.S. homeland defense.

“This change will strengthen the Joint Force's ability to defend the U.S. homeland, contributing to a more robust defense of the western hemisphere and deepening relationships with Arctic allies and partners,” said Sean Parnell, the Pentagon’s chief spokesman.

At present, Greenland is home to Pituffik Space Base, formerly Thule Air Base. Greenland also recently approved additional U.S. military installations.

Thule Air Base, the midpoint between New York City and Moscow, was built by the Defense Department in secret between 1951 and 1953 and was planned to be a forward operating base for Air Force bombers and, eventually, fighter aircraft. In 1961, the Air Force added a new mission, establishing a Ballistic Missile Early Warning System radar site. While the sensor mission remains, the bombers and interceptors were pulled from the Greenland post in 1965.

Trump has previously said the United States must have control of Greenland “very badly,” and said he would not “rule out” annexing it with military force.

Trump’s statements have drawn bipartisan concern in Congress. Last week, Defense Secretary Pete Hegseth was asked if DOD had drawn up any plans to invade.

“Our job at the Defense Department is to have plans for any contingency,” he told the House Armed Services Committee.

Rep. Mike Turner (R-OH) gave Hegseth a chance to clarify.

“You are not confirming in your testimony today that at the Pentagon there are plans that for invading or taking by force Greenland, correct?” he said. “I sure as hell hope that is not your testimony.”

Hegseth did not deny it.

“All my testimony is, is that the Pentagon has plans for any number of contingencies,” he said. “We look forward to working with Greenland to ensure that it is secured from any potential threats.”

The INSIDER daily digest -- June 17, 2025
By John Liang
June 17, 2025 at 1:01 PM

This Tuesday INSIDER Daily Digest has news on the Army's first Long Range Hypersonic Weapon battery plus Guam missile defense and more.

We start off with more coverage from the Government Accountability Office's annual weapon systems assessment:

GAO: Cost of fielding first Dark Eagle battery increased by $150 million in a year

The cost of fielding the Army's first Long Range Hypersonic Weapon battery, also known as Dark Eagle, rose by $150 million in the last year, according to the Government Accountability Office's annual weapon systems assessment.

Document: GAO's 2025 weapon systems annual assessment

News on a proposed component of the in-development Guam missile defense system:

Pentagon solicits prototypes for Joint Battle Manager to unify Guam missile defense

The Pentagon is seeking prototypes for a new command-and-control system that would serve as the digital core of Guam's air and missile defense -- a Joint Integrated Battle Manager (JIBM) that can fuse data from multiple military systems into a single, coordinated engagement picture to counter advanced Chinese threats.

The Pentagon is reviewing its various innovation offices:

House appropriators reveal defense innovation review

House appropriators last week acknowledged an ongoing review of the Defense Department's numerous innovation offices -- the latest in a series of reorganization initiatives at the Pentagon in recent months.

Document: House appropriators' FY-26 defense spending bill report

The latest on the F-35 Joint Strike Fighter program:

Lockheed executive touts 'completed' TR-3 upgrade for F-35

Lockheed Martin believes it has finished all of the work necessary to make the F-35 Joint Strike Fighter's Technology Refresh-3 software upgrade combat capable, company executives said this week at the Paris Air Show, but formal approval will have to come from the U.S. government.

The Marine Corps' CH-53K King Stallion heavy-lift helicopter could see fewer aircraft procured in the coming fiscal year:

Pentagon's budget would trim CH-53K buy, Marine Corps reviewing procurement totals

The Pentagon's fiscal year 2026 budget would clip procurement quantities of the CH-53K King Stallion by six aircraft compared to prior budget estimates, while the Marine Corps is conducting a review of the program's total acquisition plan due to financial constraints.

Document: DOD's FY-26 R-1, P-1 and O-1 budget justification books

Honeywell awarded contract for FLRAA auxiliary power unit
By Dan Schere
June 16, 2025 at 1:43 PM

Bell Textron, the prime contractor for the Army's Future Long Range Assault Aircraft program, has selected Honeywell to supply the auxiliary power unit for the aircraft, Honeywell announced this morning ahead of the Paris Air Show.

The 36-150 APU Honeywell will provide a secondary source of electrical and hydraulic power for the FLRAA aircraft, which will eventually succeed the Black Hawk. This APU that will be used on FLRAA is a variant of Honeywell’s 36-150 APU series that has been used on various commercial and military applications, including both the Black Hawk and Apache helicopters, the company noted in the press release.

Additionally, FLRAA will use the Honeywell Attune system, which the company describes as a “lightweight, low-maintenance and energy-efficient thermal management system that uses advanced technology” to cool the cabins and “electric components.”

Honeywell Attune is described by the company as being up to 35% lighter and 20% more efficient than “conventional systems with comparable cooling capacity.”

FLRAA, which the Army has officially named the MV-75, is expected to enter service sometime around 2030.

The INSIDER daily digest -- June 16, 2025
By John Liang
June 16, 2025 at 1:31 PM

This Monday INSIDER Daily Digest has continuing coverage of the Government Accountability Office's annual weapons systems assessment plus the Golden Dome missile defense system as well as questions around the proposed downsizing of DOD's independent weapons testing office.

We start off with more coverage of the Government Accountability Office's annual weapons systems assessment:

GAO: Air Force's secretive hypersonic attack cruise missile delayed

Difficulty in validating hardware for the Air Force's Hypersonic Attack Cruise Missile is putting the program behind schedule and could narrow the number of flight tests the service can perform before deeming the weapon operational, according to the Government Accountability Office's annual weapon systems report.

Navy pauses HALO hypersonic missile development after costly bids

Development of an anti-ship hypersonic missile has been paused due to cost concerns, though the Navy plans to continue with a revised acquisition strategy in fiscal year 2026, according to the Government Accountability Office's annual weapon systems report.

XM30 delay caused by non-MOSA-compliant software, GAO says

The Army’s delay in pivoting the XM30 to a major capability acquisition pathway was caused by software and hardware from competing vendors that didn't jibe with modular open systems requirements, a Government Accountability Office report has found.

Document: GAO's 2025 weapon systems annual assessment

Defense Secretary Pete Hegseth's proposed cuts to the Pentagon's office of operational test and evaluation has drawn scrutiny from congressional appropriators:

House appropriators question cuts to independent weapons testers

The House Appropriations Committee wants Defense Secretary Pete Hegseth to explain why he ordered cuts to the Pentagon's independent weapons testing office as "it is widely understood that there is increasing need for independent operational test and evaluation," especially in the cyber and electromagnetic realms.

The Pentagon's application for a trademark for its proposed Golden Dome missile defense system doesn't look like it will be accepted:

Golden Dome hits legal turbulence as trademark filing falters

The Pentagon's marquee missile defense initiative, rebranded just months ago as the "Golden Dome" after a trademark conflict scuttled its original name, is now facing another branding setback -- this time from the U.S. Patent and Trademark Office.

The week ahead
By Tony Bertuca
June 16, 2025 at 5:00 AM

Senior defense officials, including Defense Secretary Pete Hegseth, are scheduled to appear on Capitol Hill this week.

Tuesday

The Atlantic Council hosts a discussion about the use of drones in Ukraine's fight against Russia.

Wednesday

The Senate Armed Services Committee holds a hearing with Defense Secretary Pete Hegseth.

The Senate Appropriations defense subcommittee holds a hearing to discuss the Army budget.

Thursday

Juneteenth, federal holiday.

Inside Defense obtains key DOD budget documents
By Tony Bertuca
June 13, 2025 at 3:00 PM

Inside Defense has obtained Defense Department documents sent to Congress this week detailing key procurement and research and development information.

Coverage of the documents and their contents has been continuous through the week, impacting all of the Army, Navy, Marines, Air Force and Space Force.

The documents are now available to subscribers here.

Though the White House budget is late to Congress, the DOD documents quietly arrived on Capitol Hill earlier this week in advance of key hearings with Defense Secretary Pete Hegseth, including the House and Senate Appropriations committees.

The INSIDER daily digest -- June 13, 2025
By John Liang
June 13, 2025 at 2:39 PM

This Friday INSIDER Daily Digest has news on the House Appropriations Committee's fiscal year 2026 defense spending bill, which was marked up this week, and more.

We start off with coverage of the House Appropriations Committee's fiscal year 2026 defense spending bill:

House appropriators press Air Force on status of new requirements command

As the Air Force’s new Integrated Capabilities Command sits in a provisional status, lawmakers on the House Appropriations defense subcommittee are asking the service to provide updates regarding its formal establishment and ongoing modernization work while showing support for the effort.

House appropriators comply with M10 Booker cancellation plan

House appropriators have budgeted zero dollars for M10 Booker procurement next year as the Army calls for an end to its contract with vendor General Dynamics Land Systems, according to the report accompanying the committee's fiscal year 2026 draft spending bill.

House appropriators demand Golden Dome details, separate budget accounting

House appropriators are demanding the Pentagon produce a separate budget volume and regular classified updates for the Golden Dome missile defense initiative, pressing for transparency on a program the Trump administration launched with lofty promises but few details.

Document: House appropriators' FY-26 defense spending bill report

The Navy's Constellation-class frigate program is navigating choppy development waters:

Hegseth indicates frigate program is on the chopping block

Defense Secretary Pete Hegseth acknowledged this week that the Pentagon is reviewing the Constellation-class frigate program when asked by a lawmaker if it was being terminated, noting it was one of several "difficult decisions" slated to be made impacting the department's portfolio of large acquisition programs.

More news from the Government Accountability Office's annual weapon systems assessment:

Production on FLRAA could be delayed up to 18 months, GAO finds

The start of production on the Future Long Range Assault Aircraft could be delayed up to 18 months, and initial operational capability could be delayed 11 months, according to the Government Accountability Office’s Weapon Systems Annual Assessment.

Document: GAO's 2025 weapon systems annual assessment

The Navy-Marine Expeditionary Ship Interdiction System was used in the Luzon Strait to simulate maritime strikes during Exercise Balikatan 25, Archipelagic Coastal Defense Continuum 25 and Exercise KAMANDAG, which also demonstrated the ground-based Marine Air Defense Integrated System:

Marine Corps uses MADIS and NMESIS in first Indo-Pacific deployment

Aided by the first overseas deployment of two new weapon systems, the 3rd Marine Littoral Regiment recently completed a deployment that included three bilateral exercises focused on the Indo-Pacific.

The Pentagon wants to plus up funding for the U.S. nuclear weapons triad:

Nuclear triad would see budget boosts in FY-26 request

The Defense Department is hoping the pending congressional reconciliation package will inject $2.1 billion extra to significantly ramp up procurement efforts for the B-21 Raider nuclear bomber, according to budget request documents obtained by Inside Defense.

The Air Force, along with the Defense Logistics Agency’s energy office, chose Eielson Air Force Base, AK as the best location for the pilot advanced nuclear energy technology program:

Air Force inches closer to building its first micro-reactor at Eielson AFB

Oklo, Inc. has been selected to develop and operate the Air Force's first-ever micro-reactor, pending certification from the Nuclear Regulatory Commission, the service announced this week.

The House Armed Services air and land forces subcommittee held a hearing this week on Army munition industrial base modernization:

House lawmakers reprimand DOD over energetics shortcomings

Lawmakers in the House this week scolded Pentagon officials for ignoring a two-year-old congressional directive to stand up an office focused on upgrading and modernizing its energetic materials to keep pace with China.

Document: House hearing on Army munition industrial base modernization

Army Reserve recruiting tech leaders to be senior advisers
By Dan Schere
June 13, 2025 at 10:08 AM

The Army Reserve has started recruiting leaders in the tech industry to be part-time senior advisers, with the goal of bringing private-sector knowledge into the force to "bridge the commercial-military tech gap."

The service announced today it is establishing Detachment 201, also known as the Army’s Executive Innovation Corps. The Army is billing it as “a new initiative designed to fuse cutting-edge expertise with military innovation.”

The Army will swear in the first four leaders in Det. 201 today, who are:

  • Shyam Sankar, Chief Technology Officer for Palantir
  • Andrew Bosworth, Chief Technology Officer of Meta
  • Kevin Weil, Chief Product Officer of OpenAI
  • Bob McGrew, advisor at Thinking Machines Lab and former Chief Research Officer for OpenAI

The establishment of the new Executive Innovation Corps follows the rollout of the Army Transformation Initiative -- a major restructuring of the service that will involve cancellation of several legacy programs of record, while putting an emphasis on iterative development for technologies such as drones and command and control.

Army Secretary Dan Driscoll and Chief of Staff Gen. Randy George announced the ATI on May 1, following a directive from Defense Secretary Pete Hegseth.

Driscoll in recent weeks has spoken during public appearances and interviews about how the Army can take a page out of the Silicon Valley playbook in terms of furthering innovation and improving how the service does business.

During a May 21 event hosted by Axios, the secretary mentioned a trip he and George made to Applied Intuition’s California headquarters in which the company made an Infantry Squad Vehicle autonomous within 10 days.

“That’s the place where Silicon Valley and a lot of these venture-backed businesses have figured out what minimum viable product means and what it means to get it in the hands of your customer and learn from them,” Driscoll said at the event.

House Appropriations Committee passes defense spending bill
By Tony Bertuca
June 12, 2025 at 5:51 PM

The House Appropriations Committee voted 36-27 to advance its version of the fiscal year 2026 defense spending bill, despite lacking an official request from the White House.

The committee’s bill supports a flat fiscal year 2026 topline of $831.5 billion, which is aligned with a total national defense budget of $961 billion and relies on a separate budget reconciliation to reach about $1 trillion.

The committee posted its successful and failed amendments in real time on X.

Check Inside Defense for coverage of the bill and the committee’s accompanying report.

The INSIDER daily digest -- June 11, 2025
By John Liang
June 11, 2025 at 2:42 PM

This Wednesday INSIDER Daily Digest has news on the Pentagon submitting its fiscal year 2026 budget request and more.

The Pentagon's fiscal year 2026 budget request has been delivered to Congress with very little fanfare compared to past years. Here are some of the details, based on documents obtained by Inside Defense:

DOD executes stealth FY-26 budget rollout, advances two budget scenarios

In an unprecedented stealth rollout, the Trump administration has submitted its fiscal year 2026 defense budget request to Congress without public release or fanfare -- laying out two starkly different investment paths for new weapons depending on the fate of a partisan budget reconciliation package.

DOD's procurement strategy bets big on reconciliation; shipbuilding most at risk

New budget documents quietly sent to Capitol Hill today show Pentagon procurement -- especially for Navy shipbuilding -- is slated to take a heavy hit in fiscal year 2026 if the Republican majority in Congress cannot pass its controversial "Big, Beautiful Bill."

DOD relying on reconciliation package to boost Space Force RDT&E

The Defense Department is relying on the pending reconciliation funding package to increase fiscal year 2026 Space Force research and development above FY-25 levels, including $6.44 billion for a new line in a "Long Range Kill Chains" program.

Pentagon halves its request for Air Force F-35s, eyeing more F-15EX

The Air Force is only requesting two dozen F-35 Joint Strike Fighters next year -- about 20 fewer than what was enacted in fiscal year 2025, according to FY-26 procurement documents obtained by Inside Defense.

Army requesting $1.7B in procurement funds under 'agile portfolio' category for FY-26

The Army plans to request a total of about $1.7 billion in "agile" procurement funds for fiscal year 2026, according to budget documents the Trump administration has submitted to Congress that were obtained by Inside Defense.

Navy's $63 billion procurement request leans heavily on reconciliation, differs widely from appropriators

The Pentagon is requesting $62.9 billion for Navy and Marine Corps procurement in fiscal year 2026, betting big that Congress can pass a partisan reconciliation package containing an additional $32.3 billion in procurement dollars that will be needed to avoid significant cuts to priority shipbuilding programs.

DOD proposal would cut Space Force procurement 7%, even with reconciliation

The Defense Department is seeking less procurement funding for the Space Force in fiscal year 2026 compared to the enacted FY-25 budget, even when accounting for money in the yet-to-be-passed reconciliation funding package, according to budget documents obtained by Inside Defense.

The quiet nature of the defense budget request hasn't satisfied House appropriators, though:

'I want your plan!': Hegseth faces appropriators' questions on missing DOD budget request

House appropriators today -- some of them skeptical, others hostile -- questioned Defense Secretary Pete Hegseth for the first time since he took the helm at the Pentagon about many of his recent moves to transform the department, including the fiscal year 2026 budget, which has not yet been formally submitted to Congress.

This weekend's upcoming Army parade in Washington has lawmakers questioning whether it will be worth the cost in a tight budget environment:

Democrats put Army leadership in hot seat over parade cost, border operations

Democrats in Congress last week questioned Army Secretary Dan Driscoll and Chief of Staff Gen. Randy George over what they view as exorbitant costs to finance a military parade in Washington and maintain operations on the southern border. Some members believe the money could be better spent on barracks improvements and other quality-of-life issues.

The Senate Armed Services Committee's top Republican isn't quite happy with the Navy's shipbuilding budget request:

Navy reliance on reconciliation for shipbuilding violates congressional intent, Wicker warns

The Pentagon's fiscal year 2026 shipbuilding budget request omits procurement dollars for Virginia-class submarines and other undersea and surface platforms, leaving the near-term fate of critical Navy programs up to the pending budget reconciliation package and running afoul of congressional intent, according to the Senate Armed Services Committee chairman.

Defense Secretary Pete Hegseth discussed the Air Force's F-47 fighter on Capitol Hill this week:

Pentagon to give F-47 a $3.5 billion injection in FY-26

The Air Force's new sixth-generation stealth fighter could receive $3.5 billion in fiscal year 2026, according to Defense Secretary Pete Hegseth.