The Pentagon is asking for about $53.6 billion for drone procurement in its FY2027 budget, a multiple-thousand percent jump from the roughly $225.9 million the Defense Autonomous Warfare Group got in fiscal 2026. The request sits inside a $1.5 trillion defense plan. Most funds would pay for production, operator training and counter-drone systems. The Navy has already awarded development deals for carrier-capable Collaborative Combat Aircraft to Anduril, Lockheed Martin, General Atomics, Boeing and Northrop Grumman, shifting big pools of spending to unmanned systems.

The Pentagon opened a fast lane for drone programs this budget cycle. Officials want a big jump in both research and buying. The FY2027 request folds most of that effort into the Defense Autonomous Warfare Group, or DAWG.

The size of the ask

The department put $1.5 trillion on the table for defense next year. That total includes $1.15 trillion in the base budget and $350 billion in a reconciliation package. Within that framework, Pentagon officials are seeking about $54.6 billion specifically for drone and autonomy efforts, with roughly $53.6 billion allocated to procurement and related needs.

Jules Hurst, performing the duties of the Pentagon comptroller, described DAWG as a "pathfinder" testing autonomy and integration with industry. He told reporters the group is working live with companies to test systems and orchestration tools and to provide feedback. The scale of the request represents a one-year surge, Hurst said, aimed at rapidly building capability rather than locking in a single baseline design.

The DAWG budget would be a huge increase over last year. The group received about $225.9 million in fiscal 2026. Pentagon briefers say the FY2027 request represents a multiple-thousand percent jump from that level.

What the money would buy

Officials laid out several priorities for the DAWG funds. They include buying low-cost, attritable drones, expanding counter-drone defenses at military sites, scaling logistics to sustain deployments, and training operators.

Some funding would support one-way attack drones and aircraft developed under the Air Force\'s Collaborative Combat Aircraft program, which pairs unmanned systems with manned fighters.

The Navy has its own parallel push. Service slides and contractor statements show the Navy picked several prime teams to design carrier-capable Collaborative Combat Aircraft. Anduril, Lockheed Martin, General Atomics, Boeing and Northrop Grumman are on that list. The Navy called the CCA concept a "force multiplier" and framed the work as a way to reduce risks to personnel.

Mastheads

Industry response and contract details

Major contractors are already talking about how they see the work. Northrop Grumman said it's partnering with the Navy to develop conceptual designs and an autonomy ecosystem it calls Beacon. The company highlighted investments in reducing production time, processes and costs.

Anduril confirmed the Navy selected the firm to develop carrier-ready CCA designs and said it will focus on delivering aircraft that meet the Navy\'s needs at scale. General Atomics pointed to prior carrier-related work, including systems used on Ford-class carriers, and said adapting its designs for shipboard operations is a natural extension.

Contract awards for design work don't equal mass procurement. Pentagon briefers stressed that DAWG is meant to spin up a series of incremental capabilities. Lt. Gen. Steven Whitney, director for Force Structure, Resources and Assessment, said the approach is to buy iterative improvements rather than one large, permanent lot of hardware. He framed the effort as rapid innovation tied to testing and adaptation.

Why much of the money is in reconciliation

Officials placed most DAWG funds in the flexible reconciliation pot rather than the base budget. They said that gives the department more time to obligate funds and supports one-time surges where officials want a big push. Hurst called the FY2027 request a "generational investment."

That choice also adds political risk. Pentagon briefers acknowledged that putting the bulk of the ask in reconciliation is a gamble. Midterm elections later this year could alter the outlook for future reconciliation bills. The department noted that if Congress doesn't pass reconciliation language as planned, the specific timing and availability of those funds would change.

The scale of the request and recent Navy design contracts change where defense dollars will flow. Large prime contractors will compete for development and systems-integration roles. New industrial work will include sensors, autonomy software, manufacturing lines for attritable airframes, and logistics chains to support dispersed operations.

Smaller firms and startups that provide autonomy software, sensors or swarming technologies may see more teaming opportunities. Pentagon officials said DAWG is engaging companies across the market to test orchestration tools and autonomy stacks. That process could steer follow-on procurement to firms whose systems perform well in live tests.

Placing money in a reconciliation account means timing for orders and obligations is less certain than base-budget buys. Procurement officers told reporters they want the flexibility to obligate funds when systems prove mature. That could stretch the timeline for major production lots but keep options open for rapid follow-on buys of improved designs.

Shifting hundreds of billions into drone and autonomy work affects other priorities. Pentagon documents show the DAWG request rivals budgets for whole services. Analysts note that concentrating funds on unmanned systems means fewer dollars for some legacy platforms unless the overall budget grows to accommodate both.

Officials say DAWG isn't a standing procurement bureau. They described it as an innovation engine that sources new ideas, tests them, and hands mature concepts back to services for scale. That model changes how program managers will plan procurement and sustainment over the next few years.

Related Articles

Passage of reconciliation after midterm elections will determine timing of most DAWG funds, Lt. Gen. Steven Whitney said.

This article was created with AI assistance.