{"id":6208,"date":"2026-02-26T10:40:37","date_gmt":"2026-02-26T10:40:37","guid":{"rendered":"https:\/\/sawahsolutions.com\/range\/defense-business-brief-obbb-funding-counterdrone-manufacturing-and-a-cca-update\/"},"modified":"2026-02-26T10:40:38","modified_gmt":"2026-02-26T10:40:38","slug":"defense-business-brief-obbb-funding-counterdrone-manufacturing-and-a-cca-update","status":"publish","type":"post","link":"https:\/\/sawahsolutions.com\/range\/defense-business-brief-obbb-funding-counterdrone-manufacturing-and-a-cca-update\/","title":{"rendered":"Defense Business Brief: OBBB funding; Counterdrone manufacturing; and a CCA update"},"content":{"rendered":"
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Midterm elections are around the corner and more than $150 billion in reconciliation funds are burning a hole in the Pentagon\u2019s pocket.\u00a0<\/p>\n

The department wants to allocate as much of the money in the One Big Beautiful Bill as possible by Sept. 30, even though the funds are authorized to be used through Sept. 30, 2029. The plan is detailed in an 85-document submitted to Congress and obtained by Defense One.<\/em><\/p>\n

Why the rush? \u201cThe administration is pushing organizations to allocate the money to specific programs and obligate it through signed contracts as quickly as possible\u201d in part because \u201cgetting the money obligated protects it politically. Otherwise, a future Democratic Congress could try to rescind the money by arguing that DOD can’t spend it,\u201d said Mark Cancian, senior adviser with the Center for Strategic and International Studies.\u00a0<\/p>\n

The document says the Pentagon \u201cis working to accelerate execution into FY 2026 if that can be done without sacrificing effectiveness\u201d and \u201chas developed an allocation plan\u201d for $1 billion in Defense Production Act appropriations, \u201cwhich brings the total mandatory allocation plan total to $153.3 billion across 261 individual subsections which are described herein.\u201d\u00a0<\/p>\n

The funding plan includes $5 billion for critical minerals supply chain investments\u2014$3 billion in 2026 and $2 billion in 2027 to the industrial base fund. There\u2019s also $688 million allocated for the development and production of long-range cruise missiles across the services, with funds expected to award as early as Q2. About $198 million of that will be for 73 Maritime Strike Tomahawk kits: \u201cFunds will award Q4 of FY 2026,\u201d the document states.\u00a0<\/p>\n

The plan, if fulfilled, could mean more contracts in the near-term with focus on production-heavy sectors.\u00a0<\/p>\n

“We’re still reviewing the plan in full, but at first glance we’re encouraged by the emphasis on key priorities like industrial base modernization, shipbuilding, and munitions,” said Margaret Boatner, the Aerospace Industries Association\u2019s vice president of national security policy.\u00a0<\/p>\n

But there\u2019s still the underlying problem of erratic government funding.\u00a0<\/p>\n

\u201cOne thing that the president and industry representatives often complain about is the unpredictability of demand for defense purchases,\u201d said Greg Williams, who leads the Center for Defense Information at the Project On Government Oversight. \u201cThey say that makes things more expensive, and it provides a disincentive to invest in production capacity. In this case, we are exacerbating that problem by not having a predictable schedule for these expenditures.\u201d<\/p>\n

Analysts agree that large influxes in defense funding could prove tricky, especially in areas where production capacity has lagged, such as munitions and shipbuilding. Plus, the Pentagon has failed to pass financial audits and has struggled with a laggard acquisitions system that it is in the midst of an overhaul.<\/p>\n

\u201cIncreasing their annual budget by $150 billion further strained that system that obviously wasn’t working well. And if the president succeeds in getting an additional $500 billion this year, that will only accelerate that strain,\u201d Williams said.<\/p>\n

Welcome<\/strong><\/p>\n

You\u2019ve reached the Defense Business Brief, where we dig into what the Pentagon buys, who they\u2019re buying from, and why. Send along your tips, feedback, and rooftop recommendations to lwilliams@defenseone.com<\/strong>. Check out the Defense Business Brief archive here<\/strong>, and tell your friends and foes to subscribe<\/strong>!<\/p>\n

Making room for the cUAS boom. <\/strong>Austin, Texas-based Allen Control Systems, which builds robotic turrets to shoot down drones, plans to triple its manufacturing capacity for its keystone Bullfrog system, Defense One<\/em> has learned. The company\u2019s systems were recently tested by the Army and the expansion to 57,000 square feet is expected to help increase production and testing and accelerate deliveries. The company also plans to triple its workforce, hiring in engineering and technical roles to speed up systems development, testing, and delivery.<\/p>\n

Background: <\/em><\/strong>There\u2019s a high demand for counterdrone tech in both the military and homeland defense sectors, such as for the 2026 FIFA World Cup. And expanding manufacturing of the tech in the U.S. dovetails <\/em><\/strong>with the Trump administration\u2019s domestic manufacturing push, asking defense companies to invest more in infrastructure to make weapons faster.\u00a0<\/p>\n