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(suspenseful music)

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- [Narrator] "Defense
News," is proudly sponsored

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by Navy Federal Credit Union.

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If you're a member of our
nation's Armed Forces,

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the Department of Defense,
or if your family is,

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we'd be proud to serve you too.

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On this episode of "Defense News Weekly,"

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we take an in-depth look
at the hypersonics race.

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As global powers press forward

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with a transformative military technology,

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we talk to an expert
on where the US stands

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in comparison to its rivals,

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what programs are working for the US

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both for offensive weapons

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and defensive counter hypersonics.

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We learn about how the
Pentagon is keeping pace

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with the most advanced
weaponry in a generation,

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plus an update from the
defense contracting world.

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Join us for the latest
in news and analysis

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from the Pentagon to the platoon

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here on "Defense News Weekly."

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(suspenseful music)

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Welcome back to "Defense News Weekly."

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Hypersonic weapons offer
a fearsome prospect,

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traveling at five times
the speed of sound or more.

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They can carry independent warheads

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that travel on unpredictable paths,

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making them incredibly
hard to defend against.

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Since their development,
a race has been on

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between China, the US, and
Russia to field the missiles

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and the systems capable of defeating them.

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To get a sense of where things stand now,

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"Defense News," Hope Seck
sat down with Deborah James,

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a former secretary of
the Air Force and member

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of the Atlantic Council's
Hypersonic Capabilities Task Force

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to talk about it.

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Have a look.

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(air whooshing)

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- Secretary James, thank you
so much for being here today.

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- Thanks for having me, Hope.

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- So in October, the
Hypersonics Task Force

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that you co-chair rolled
out its final report

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and made a little bit
of buzz in Washington.

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And there were recommendations

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specifically about surging efforts

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to field the first hypersonic systems

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and about establishing a munition czar

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to oversee some of the work going forward.

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And it's been about two months since then,

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so I wanted to ask what
traction are you seeing

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on some of those recommendations?

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- Well, so far, so good Hope,

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but of course it's still early days.

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So, what we have done since
we rolled out the report

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and made what I think are
those critical recommendations,

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we've briefed senior officials
in the Pentagon about this.

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And particularly, the notion of czar,

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I think fits quite well with
this administration's approach.

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They've done a czar for Golden Dome.

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They've done a czar for drones.

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And most recently, they've named

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Lieutenant General Dale
White of the Air Force

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to be what they call a DRPM,

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a direct reporting program
manager, which is czar-like,

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over some very important
Air Force program.

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So, we've briefed the our view

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of the importance of hypersonics
and suggested a czar,

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as well as our other
recommendations to the Pentagon.

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We've also extensively briefed
key members of Congress.

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Among them, the co-chairs
of the Hypersonics caucus

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in the House, Congressman
Messmer and Norcross,

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very, very interested in the report.

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They both sit on the House
Armed Services Committee,

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of course.

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So we're anxious to see
the results of the NDAA,

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the National Defense Authorization Act,

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and also anxious to see
what happens on funding.

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We do know that of course our
call was for increased funding

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for these first generation of
weapons to get them fielded

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at some level.

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We think we need to do it at scale,

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having many of these
weapons in our inventory.

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And it is promising what we have seen,

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but we think Congress can do more.

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So, we're waiting to
see what happens there.

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- Well, I'm glad you brought up the NDAA.

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That's definitely the new news in town.

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We have at least the full
agreed upon text of the bill.

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And first of all, there is
some much heralded investment

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in hypersonics weapons program,

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so let's start with that.

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What are you seeing in the bill?

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Is the investment enough
and what will it enable

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over the next year?

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- Well, I believe, if I'm not mistaken,

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and I have not yet read the full bill,

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but I believe there's about 3.9,

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let's call it $4 billion

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for research and development
of hypersonic weapons.

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Now that's good, but of course
one of our calls to action

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in our report is that we need to move

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beyond the research and development phase

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and get into production.

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So, it's not clear to me
within that budgetary framework

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how much of that could actually
launch some of the weapons

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of today, which are ready for production.

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At least as I understand it,
they're close to being ready.

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I'm talking about the HACM

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and the Arrow in the Air Force.

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I'm talking about the Conventional
Prompt Strike of the Navy

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and the Dark Eagle of the Army.

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I'm not clear on how much of that would be

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to actually produce and
field some of those weapons.

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I think the funding is a good start.

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I think Congress can do better

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and I hope that if not this year,

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certainly in the following
years, they will do so.

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- What else do we need

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to get some of these programs underway

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and crucially, as you said,

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to get them fielded in our arsenals,

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even if they're not like
the perfect weapon system

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that we want down the road?

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- Well, I think we certainly need,

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in addition to the enabling legislation

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and a sense of urgency on
the part of the Pentagon

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to get this done, just as
there's a sense of urgency

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for Golden Dome and for
drones as an example.

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In addition to that,

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we need a very close
partnership with industry

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'cause after all, industry is
who will produce these weapons

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and will be able to advance
the state of the art for us.

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So, what does industry need to produce?

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They need stable funding.

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They need to know how much
they will be able to deal with

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and over what period of time.

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They need a signed contract.

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Industry needs to embrace new techniques.

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Some parts of industry are
doing that, others are slower,

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but new techniques

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like advanced manufacturing
additive process.

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They need to embrace things
like open systems architectures.

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So that as weapons are produced,

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they're not locked in
to certain technology

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and certain software.

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They can be upgraded more
easily through the years.

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Government needs to also do some things.

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They need to be willing,

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as increasingly government has been,

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to adopt commercial practices

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and invite in some
commercial younger companies,

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where there's a lot of
venture capital behind them.

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And that can be a source of
helping to advance the ball,

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not just solely relying
on taxpayer dollars.

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I think we need to say to industry,

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"Look, this is what we want.

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We want certain capability
and we want it fast.

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Here's the timeframe we want it

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and these are the
behaviors we need from you.

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What incentives do you need
to come from the government

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to make that happen?"

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So, that's some of what
needs to happen next.

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(air whooshing)

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- [Narrator] When we come back,

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more from a top expert
at the Atlantic Council

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on the US' hypersonic weapons efforts.

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Stay tuned.

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(suspenseful music)

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(air whooshing)

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Welcome back to "Defense News Weekly."

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Hypersonic weapons

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are one of the most
disruptive developments

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in military technology.

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For more on their impact
in the defense sphere,

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we return to our talk with Deborah James,

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former Air Force Secretary

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and an expert at the Atlantic Council.

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(air whooshing)

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- As you mentioned,

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there are a number of programs out there,

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Dark Eagle, Arrow, Conventional
Prompt Strike, HACM.

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Do you see some or one of the services

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as further down the road to
the kind of conversations

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that you're mentioning
and the kind of openness

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to collaborate with industry

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or some further along the
road than others right now?

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- Well, of course, I'm most
familiar with the Air Force

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and I do think that,
you know, the Air Force

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is trying to collaborate
more with industry.

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There's always the fine
line that you walk.

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You have to be fair to all parties.

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So it's not always an easy line to walk,

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but I do believe both Arrow and HACM

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have advanced the ball sufficiently,

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where they ought to be
ready for production,

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if not now, very, very soon.

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And so, this would be a perfect example

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of where the Air Force should be having

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those conversations with industry.

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- I really appreciate about
this capabilities task force

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that it's co-chaired by two
former service secretaries,

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yourself and former Secretary
of the Army, Ryan McCarthy.

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You have so much benefit of perspective

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in the seat that you're sitting in.

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Can you look back

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and share some lessons learned.

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You know, if the services
had to do it all over again,

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what have you learned about jointness

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when it comes to these programs?

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What have we learned about execution

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and the order of steps?

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If there were do-overs to be had,

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what would you recommend?

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- Well, first of all,
jointness is something

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that I think ever since Goldwater-Nichols

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back in the 1980s is something
that we have collectively,

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no matter what administration
we've worked on,

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we've collectively tried
to do better and better.

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And I think the level of
jointness in today's military

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is at an all time high.

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And certainly Secretary of
McCarthy and I came at it

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from that angle.

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It requires listening.

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It requires sometimes compromising

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on some of what you wanna come out with,

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some of the capabilities.

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So, I do think jointness
is at an all time high.

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The other lesson that
we've collectively learned

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over the years, and this
was certainly repeated

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in our recommendations

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and in the spirit of the
work that we did together,

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and that is that we need to get

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increasingly less burdensome on industry.

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We need to remove as much
of the red tape as possible.

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We need to look to those
commercial practices.

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We need to simplify, because
all of this will help

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both on the innovation front
and on the speed front.

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And I do think this administration,

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like every previous administration,

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is doubling down to try to get that done

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and to speed things up in the
acquisition process generally.

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Now, they are really making large efforts

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and I applaud them for it.

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And certainly, we made it
a point in our commission

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to go as quickly as we could
to develop this report,

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get it out there so
that it could be timely

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for both Congress and the Pentagon,

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as well as to come up with
actionable recommendations.

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So that it hopefully won't sit
on the shelf and gather dust,

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but rather it'll make a difference

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to our country and to our defense.

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- You talked about
simplification, always important.

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Are there moments you look
back on in the programs

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as they developed where you
could say with the benefit

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of the knowledge and
perspective you have now,

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we should have done this differently

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or taken a more efficient path perhaps?

258
00:11:13,800 --> 00:11:16,020
- Well, speaking of
acquisition in general,

259
00:11:16,020 --> 00:11:19,710
I certainly would've wished
we would've gotten the OTA,

260
00:11:19,710 --> 00:11:22,770
the other transaction authority religion

261
00:11:22,770 --> 00:11:27,360
earlier than we collectively
did in the Pentagon.

262
00:11:27,360 --> 00:11:30,060
That authority has been around for decades

263
00:11:30,060 --> 00:11:31,920
and it was used a little bit.

264
00:11:31,920 --> 00:11:34,740
It's being used a lot more these days.

265
00:11:34,740 --> 00:11:36,870
So, that is certainly one lesson learned.

266
00:11:36,870 --> 00:11:38,550
The same with commercial practices.

267
00:11:38,550 --> 00:11:41,700
There have been the ability
to use commercial practices

268
00:11:41,700 --> 00:11:45,030
and by in a more commercial
way for years and years,

269
00:11:45,030 --> 00:11:48,330
but collectively we have
been slow to adopt it.

270
00:11:48,330 --> 00:11:50,160
Now, there's always
reasons for this, Hope.

271
00:11:50,160 --> 00:11:52,050
So if you go back in time

272
00:11:52,050 --> 00:11:54,570
and how did we get to where we are,

273
00:11:54,570 --> 00:11:56,970
there were concerns about competition.

274
00:11:56,970 --> 00:11:58,830
There were concerns about quality.

275
00:11:58,830 --> 00:12:01,680
There were concerns about
scandals that were real.

276
00:12:01,680 --> 00:12:03,240
And money was wasted

277
00:12:03,240 --> 00:12:05,610
and there was waste,
fraud, and abuse and so on.

278
00:12:05,610 --> 00:12:09,870
So, this is how the regulations
and laws and so forth

279
00:12:09,870 --> 00:12:11,580
were built up over time.

280
00:12:11,580 --> 00:12:13,410
All started with good intention,

281
00:12:13,410 --> 00:12:15,990
all started for a particular reason,

282
00:12:15,990 --> 00:12:18,330
but the totality of the weight

283
00:12:18,330 --> 00:12:20,670
that those sorts of things
brought upon the system

284
00:12:20,670 --> 00:12:21,960
just got to be too much.

285
00:12:21,960 --> 00:12:24,570
And so for years now, we've
been trying to strip it away.

286
00:12:24,570 --> 00:12:27,720
I wish we had done it more quickly.

287
00:12:27,720 --> 00:12:30,630
- Something else that stood
out to me about the report

288
00:12:30,630 --> 00:12:32,580
and its rollout was the conversation

289
00:12:32,580 --> 00:12:35,100
about how hypersonic weapons

290
00:12:35,100 --> 00:12:37,530
are the new strategic deterrent.

291
00:12:37,530 --> 00:12:39,510
There's sort of this perspective

292
00:12:39,510 --> 00:12:43,770
that we're not actually going
to use our nuclear weapons.

293
00:12:43,770 --> 00:12:46,980
It makes it less of a credible deterrent

294
00:12:46,980 --> 00:12:51,980
just because of the weight
and sort of catastrophe

295
00:12:52,170 --> 00:12:54,180
that that using them would be.

296
00:12:54,180 --> 00:12:57,207
Can you, again, this is sort of looking

297
00:12:57,207 --> 00:12:59,370
10, 15 years down the road

298
00:12:59,370 --> 00:13:03,090
as nations begin to
acquire hypersonic weapons

299
00:13:03,090 --> 00:13:05,100
and build them up in their stockpiles,

300
00:13:05,100 --> 00:13:08,580
how do you envision they
will change warfare?

301
00:13:08,580 --> 00:13:11,241
What does it look as nations
begin to acquire them

302
00:13:11,241 --> 00:13:13,620
and even to employ them?

303
00:13:13,620 --> 00:13:16,410
- Well, the definition
of deterrence really,

304
00:13:16,410 --> 00:13:19,473
if you peel that back to its core,

305
00:13:21,270 --> 00:13:24,030
an adversary, a potential adversary

306
00:13:24,030 --> 00:13:28,350
has to believe that
you have the capability

307
00:13:28,350 --> 00:13:32,700
and the political will to
actually use certain weapons

308
00:13:32,700 --> 00:13:33,600
against them.

309
00:13:33,600 --> 00:13:35,190
And if they believe it,

310
00:13:35,190 --> 00:13:38,340
they hopefully won't start
a fight to begin with.

311
00:13:38,340 --> 00:13:41,463
So, that's the essence of deterrence.

312
00:13:42,480 --> 00:13:46,800
So right now, we don't
have a deterrent value

313
00:13:46,800 --> 00:13:49,860
in our hypersonics capability,
because our hypersonics

314
00:13:49,860 --> 00:13:52,920
have all been in the research
and development phase.

315
00:13:52,920 --> 00:13:54,540
They have not yet moved to production.

316
00:13:54,540 --> 00:13:58,110
So, we don't have any of
these weapons fielded.

317
00:13:58,110 --> 00:14:01,860
We're hurt from a deterrent
standpoint at this point

318
00:14:01,860 --> 00:14:02,940
because of that.

319
00:14:02,940 --> 00:14:04,410
I think we're also hurt

320
00:14:04,410 --> 00:14:06,480
from a war fighting capability

321
00:14:06,480 --> 00:14:09,060
the fact that we lack these weapons now.

322
00:14:09,060 --> 00:14:11,520
At present, our potential adversaries

323
00:14:11,520 --> 00:14:15,390
can put our bases overseas, our allies,

324
00:14:15,390 --> 00:14:19,350
potentially even the homeland
in some cases at risk

325
00:14:19,350 --> 00:14:21,480
because of course these weapons are fast.

326
00:14:21,480 --> 00:14:22,740
They're lethal.

327
00:14:22,740 --> 00:14:25,350
They're very survivable,
hard to shoot them down.

328
00:14:25,350 --> 00:14:29,760
And if launched against us,
it would only give us minutes,

329
00:14:29,760 --> 00:14:32,490
vice perhaps hours, to react.

330
00:14:32,490 --> 00:14:34,380
Meaning would we do a counterstrike?

331
00:14:34,380 --> 00:14:36,330
Well, you got minutes to figure it out.

332
00:14:36,330 --> 00:14:38,880
Could we possibly move out of the way?

333
00:14:38,880 --> 00:14:40,950
Well, you've only got minutes
to get it done, you see.

334
00:14:40,950 --> 00:14:44,160
So, it really does put
us at a disadvantage.

335
00:14:44,160 --> 00:14:47,250
To field them at scale in our country,

336
00:14:47,250 --> 00:14:50,280
first of all would help us,
God forbid we get into a fight

337
00:14:50,280 --> 00:14:54,030
because those weapons would
be able to be very useful

338
00:14:54,030 --> 00:14:58,140
in what's called the anti-access
aerial denial environment.

339
00:14:58,140 --> 00:15:01,770
These very complex abilities
and sensors and so on

340
00:15:01,770 --> 00:15:03,630
that could shoot down aircraft.

341
00:15:03,630 --> 00:15:06,720
China, Russia, other potential
adversaries have those.

342
00:15:06,720 --> 00:15:08,910
These weapons could break through.

343
00:15:08,910 --> 00:15:10,500
So, it would be very helpful

344
00:15:10,500 --> 00:15:13,620
in such a a warfare environment.

345
00:15:13,620 --> 00:15:15,540
So for both a deterrent value

346
00:15:15,540 --> 00:15:19,080
and God forbid we get into
war, we need these weapons.

347
00:15:19,080 --> 00:15:21,630
We also need defense
against these weapons.

348
00:15:21,630 --> 00:15:23,940
So, this plays into Golden Dome.

349
00:15:23,940 --> 00:15:25,860
This plays into our ability

350
00:15:25,860 --> 00:15:28,350
to be able to through cyber effects,

351
00:15:28,350 --> 00:15:29,940
through electronic warfare,

352
00:15:29,940 --> 00:15:34,800
defeat somebody else's
hypersonic attacks against us.

353
00:15:34,800 --> 00:15:38,520
Now, how will this change
warfare in the future?

354
00:15:38,520 --> 00:15:41,370
I think warfare will be forever evolving.

355
00:15:41,370 --> 00:15:43,830
It will never stand still.

356
00:15:43,830 --> 00:15:46,830
So, it's very hard to say
20 or 30 years from now,

357
00:15:46,830 --> 00:15:47,730
what will this do.

358
00:15:47,730 --> 00:15:50,250
I worry more about the near future.

359
00:15:50,250 --> 00:15:52,950
I worry more about the next five years.

360
00:15:52,950 --> 00:15:56,610
What can we myself, someone like myself

361
00:15:56,610 --> 00:15:59,310
who's been in the government
who has certain knowledge,

362
00:15:59,310 --> 00:16:01,530
but I'm now on the outside,
what can I do to try

363
00:16:01,530 --> 00:16:03,900
to still advance the ball in critical ways

364
00:16:03,900 --> 00:16:06,060
that will help our
country, and our allies,

365
00:16:06,060 --> 00:16:09,780
and our mutual defense in the
next five years, let's say.

366
00:16:09,780 --> 00:16:11,850
I'm gonna have to leave
it to the next generation

367
00:16:11,850 --> 00:16:13,200
to worry about the next 30.

368
00:16:13,200 --> 00:16:14,130
(air whooshing)

369
00:16:14,130 --> 00:16:16,470
- [Narrator] When we come
back, it's time to start making

370
00:16:16,470 --> 00:16:19,230
those financial New Year's resolutions.

371
00:16:19,230 --> 00:16:20,910
Hear from our finance expert

372
00:16:20,910 --> 00:16:23,877
on planning to make the most of 2026.

373
00:16:23,877 --> 00:16:26,877
(suspenseful music)

374
00:16:30,478 --> 00:16:31,920
(air whooshing)

375
00:16:31,920 --> 00:16:33,090
Welcome back.

376
00:16:33,090 --> 00:16:34,860
On this episode of Money Minutes,

377
00:16:34,860 --> 00:16:37,410
Jeanette Mack from Navy
Federal Credit Union

378
00:16:37,410 --> 00:16:39,750
returns with tips on how to kickstart

379
00:16:39,750 --> 00:16:42,166
your financial goals
in the coming new year.

380
00:16:42,166 --> 00:16:42,999
(air whooshing)

381
00:16:42,999 --> 00:16:45,750
- Solid financial footing
starts with smart moves.

382
00:16:45,750 --> 00:16:48,360
Let's make next year your year to thrive.

383
00:16:48,360 --> 00:16:50,070
Planning for some big life changes,

384
00:16:50,070 --> 00:16:52,860
a new job, a new home,
or a growing family?

385
00:16:52,860 --> 00:16:55,560
Update your goals and plans
to match what's coming.

386
00:16:55,560 --> 00:16:56,970
Now, review your savings.

387
00:16:56,970 --> 00:16:59,010
Can you cover three to
six months of expenses

388
00:16:59,010 --> 00:17:00,750
if life throws you a curve ball?

389
00:17:00,750 --> 00:17:03,930
If not, make building an
emergency fund your top priority.

390
00:17:03,930 --> 00:17:05,430
Treat it like a bill you pay yourself

391
00:17:05,430 --> 00:17:07,230
consistently every month.

392
00:17:07,230 --> 00:17:09,360
Set up an auto deposit
to your checking account

393
00:17:09,360 --> 00:17:11,040
and you won't have to think about it again

394
00:17:11,040 --> 00:17:12,240
until you need it.

395
00:17:12,240 --> 00:17:13,650
Next, tackle your debt.

396
00:17:13,650 --> 00:17:16,710
Look for ways to lower interest
rates or refinance loans.

397
00:17:16,710 --> 00:17:19,170
Freeing up cash now
means more room to save

398
00:17:19,170 --> 00:17:20,310
and invest later.

399
00:17:20,310 --> 00:17:21,900
And don't forget your future self.

400
00:17:21,900 --> 00:17:24,300
Maximize your 401k, TSP,

401
00:17:24,300 --> 00:17:26,610
or other retirement plan contributions.

402
00:17:26,610 --> 00:17:29,250
And maybe open an IRA for tax benefits.

403
00:17:29,250 --> 00:17:30,630
Also, make sure your insurance

404
00:17:30,630 --> 00:17:32,040
covers those who depend on you

405
00:17:32,040 --> 00:17:34,260
and check that your investments
still fit your goals

406
00:17:34,260 --> 00:17:35,640
and risk tolerance.

407
00:17:35,640 --> 00:17:37,830
Finally, update your estate plan and will.

408
00:17:37,830 --> 00:17:40,080
Life changes fast, so
keep your plans current.

409
00:17:40,080 --> 00:17:42,030
And before making any big money moves,

410
00:17:42,030 --> 00:17:44,190
talk to a trusted financial advisor.

411
00:17:44,190 --> 00:17:46,920
This new year, leave
bad money habits behind

412
00:17:46,920 --> 00:17:49,140
and embrace smarter, more powerful moves.

413
00:17:49,140 --> 00:17:50,579
Now that's thriving.

414
00:17:50,579 --> 00:17:51,412
(air whooshing)

415
00:17:51,412 --> 00:17:52,380
- [Narrator] To get more coverage

416
00:17:52,380 --> 00:17:54,420
of military and defense topics,

417
00:17:54,420 --> 00:17:57,510
direct your secret space-based
surveillance systems

418
00:17:57,510 --> 00:18:01,410
at militarytimes.com and defensenews.com

419
00:18:01,410 --> 00:18:03,060
for more headlines,

420
00:18:03,060 --> 00:18:06,120
And to be the most up-to-date
airmen on the flight line,

421
00:18:06,120 --> 00:18:09,510
sign up for our Early Bird
Brief compiled each morning,

422
00:18:09,510 --> 00:18:11,940
bringing you the most recent headlines.

423
00:18:11,940 --> 00:18:13,290
And if social media

424
00:18:13,290 --> 00:18:15,600
is where you collect
open source intelligence,

425
00:18:15,600 --> 00:18:19,860
follow us on YouTube,
Facebook, Instagram, and Z.

426
00:18:19,860 --> 00:18:23,280
And for you Gen Z troops, we're on TikTok,

427
00:18:23,280 --> 00:18:25,290
so go follow us there as well.

428
00:18:25,290 --> 00:18:27,420
When we come back, a look at the world

429
00:18:27,420 --> 00:18:29,880
of military budgeting and contracting

430
00:18:29,880 --> 00:18:32,790
and our latest edition of Defense Dollar.

431
00:18:32,790 --> 00:18:34,326
Don't go away.

432
00:18:34,326 --> 00:18:37,326
(suspenseful music)

433
00:18:40,615 --> 00:18:41,790
(air whooshing)

434
00:18:41,790 --> 00:18:42,870
Welcome back.

435
00:18:42,870 --> 00:18:45,360
On this week's edition of Defense Dollars,

436
00:18:45,360 --> 00:18:49,260
it's that most wonderful
time of year, budget season.

437
00:18:49,260 --> 00:18:52,200
The latest version of
Congress's Defense Funding Plan

438
00:18:52,200 --> 00:18:53,040
is out.

439
00:18:53,040 --> 00:18:56,160
So, we turn to our friends
at "Cheddar," for an update.

440
00:18:56,160 --> 00:18:57,060
Have a look

441
00:18:57,060 --> 00:18:57,893
(air whooshing)

442
00:18:57,893 --> 00:19:00,120
- Welcome to Defense
Dollars, a weekly update

443
00:19:00,120 --> 00:19:02,760
on the defense and aerospace
markets around the world

444
00:19:02,760 --> 00:19:05,220
and what is making the numbers move.

445
00:19:05,220 --> 00:19:06,300
Let's dive in.

446
00:19:06,300 --> 00:19:07,830
Starting with some news here at home,

447
00:19:07,830 --> 00:19:09,900
Washington is making defense headlines.

448
00:19:09,900 --> 00:19:13,470
Congress's compromised National
Defense Authorization Act

449
00:19:13,470 --> 00:19:16,110
is calling for an increase
in military spending,

450
00:19:16,110 --> 00:19:18,000
adding about $8 billion

451
00:19:18,000 --> 00:19:21,360
above the Pentagon's fiscal 2026 request.

452
00:19:21,360 --> 00:19:22,470
That brings the grand total

453
00:19:22,470 --> 00:19:27,090
for the 2026 budget to $900.6 billion.

454
00:19:27,090 --> 00:19:30,435
The bill includes 162
billion for procurement,

455
00:19:30,435 --> 00:19:33,600
146 billion for R&D,

456
00:19:33,600 --> 00:19:37,050
291 billion for operations
and maintenance,

457
00:19:37,050 --> 00:19:41,100
and 234 billion for
personnel and healthcare.

458
00:19:41,100 --> 00:19:44,190
It funds several of President
Donald Trump's key priorities,

459
00:19:44,190 --> 00:19:47,280
including the Golden Dome
Missile Defense Program,

460
00:19:47,280 --> 00:19:51,660
the Air Force's F-47 and
Navy's F/A-XX fighters,

461
00:19:51,660 --> 00:19:56,040
the B-21 Raider, drone wingmen,
submarines, and warships,

462
00:19:56,040 --> 00:19:58,320
but it does not formally
rename the Pentagon

463
00:19:58,320 --> 00:20:02,610
as the War Department, which
would require new legislation.

464
00:20:02,610 --> 00:20:07,320
The NDAA also authorizes more
than $38 billion for aircraft,

465
00:20:07,320 --> 00:20:09,390
26 billion for shipbuilding,

466
00:20:09,390 --> 00:20:12,420
and over 25 billion
for critical munitions.

467
00:20:12,420 --> 00:20:15,510
It also approves 47 F-35s

468
00:20:15,510 --> 00:20:18,720
and directs the military
to build a 90-day stockpile

469
00:20:18,720 --> 00:20:22,830
of spare F-35 parts by the year 2028.

470
00:20:22,830 --> 00:20:25,590
The bill saves the Air
Force's E-7 Wedgetail

471
00:20:25,590 --> 00:20:27,840
from cancellation, requires the service

472
00:20:27,840 --> 00:20:32,070
to keep 103 A-10 Warthogs through 2026,

473
00:20:32,070 --> 00:20:34,354
and provides nearly $2.6 billion

474
00:20:34,354 --> 00:20:38,131
for the F-47 Next Gen fighter.

475
00:20:38,131 --> 00:20:39,090
(air whooshing)

476
00:20:39,090 --> 00:20:40,380
And from across the pond,

477
00:20:40,380 --> 00:20:42,870
General Dynamics is looking
for some sure footing

478
00:20:42,870 --> 00:20:45,840
after one of its UK division's
premier defense products

479
00:20:45,840 --> 00:20:48,180
came under scrutiny as of late.

480
00:20:48,180 --> 00:20:49,830
The United Kingdom's Ministry of Defense

481
00:20:49,830 --> 00:20:51,360
announced earlier this month

482
00:20:51,360 --> 00:20:52,920
it was launching an investigation

483
00:20:52,920 --> 00:20:55,170
into what caused a number of crew members

484
00:20:55,170 --> 00:20:59,400
in its Ajax line of armored
fighting vehicles to get ill

485
00:20:59,400 --> 00:21:02,790
when operating the systems
during a recent exercise.

486
00:21:02,790 --> 00:21:07,170
The Ajax line is made by
General Dynamics Land Systems UK

487
00:21:07,170 --> 00:21:09,300
and features a family of armored systems

488
00:21:09,300 --> 00:21:11,910
in a total of six variants.

489
00:21:11,910 --> 00:21:14,520
Armored fighting vehicles
are smaller than tanks

490
00:21:14,520 --> 00:21:16,980
and the Ajax line is
intended to do everything

491
00:21:16,980 --> 00:21:19,380
from reconnaissance to logistics support

492
00:21:19,380 --> 00:21:20,880
to intelligence gathering,

493
00:21:20,880 --> 00:21:23,703
all while defending itself
with high tech weapons.

494
00:21:24,540 --> 00:21:27,150
The British MOD said the
troops presented problems

495
00:21:27,150 --> 00:21:29,970
related to noise and
vibrations from their time

496
00:21:29,970 --> 00:21:32,520
in some of the vehicles
and put an immediate hold

497
00:21:32,520 --> 00:21:33,720
on using them.

498
00:21:33,720 --> 00:21:35,520
This is not the first time the Ajax line

499
00:21:35,520 --> 00:21:38,490
has dealt with vibration
and similar issues,

500
00:21:38,490 --> 00:21:40,740
complicating the future
for a set of systems

501
00:21:40,740 --> 00:21:43,740
intended to be a centerpiece
for the British Army.

502
00:21:43,740 --> 00:21:46,710
The UK Minister of Defense
said canceling the Ajax line

503
00:21:46,710 --> 00:21:48,390
was not out of the question

504
00:21:48,390 --> 00:21:50,910
and all options were on the
table for moving forward

505
00:21:50,910 --> 00:21:53,760
once the investigation was concluded.

506
00:21:53,760 --> 00:21:56,850
General Dynamics was trending
slightly lower in trading

507
00:21:56,850 --> 00:21:58,680
earlier this week following the news,

508
00:21:58,680 --> 00:22:02,130
but is up more than 25%
from the start of the year.

509
00:22:02,130 --> 00:22:06,150
GD reached a peak of about $353 a share

510
00:22:06,150 --> 00:22:09,812
and is now trading about $20
short of that high watermark.

511
00:22:09,812 --> 00:22:12,000
(faintly speaking)

512
00:22:12,000 --> 00:22:13,740
And one more today before you go.

513
00:22:13,740 --> 00:22:16,050
Do you like mysterious military tech

514
00:22:16,050 --> 00:22:18,720
that can think for itself
and prowls the skies

515
00:22:18,720 --> 00:22:20,070
looking for enemies?

516
00:22:20,070 --> 00:22:21,720
Northrop Grumman last week unveiled

517
00:22:21,720 --> 00:22:25,680
a new autonomous wingman
program called Project Talent.

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00:22:25,680 --> 00:22:27,870
For those unfamiliar, autonomous wingmen

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00:22:27,870 --> 00:22:30,690
are AI-powered aerial drones meant to fly

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00:22:30,690 --> 00:22:34,530
with manned military aircraft
to act as scouts, decoys,

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and added unmanned firepower.

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Also called collaborative combat aircraft,

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00:22:39,930 --> 00:22:41,580
the sleek high speed drones

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00:22:41,580 --> 00:22:44,400
are a fixture of the Air
Force's plan for the future

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00:22:44,400 --> 00:22:47,100
and the focus of a
competition among arms makers

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00:22:47,100 --> 00:22:48,870
to become the supplier.

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00:22:48,870 --> 00:22:50,820
Northrop had a previous entry

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00:22:50,820 --> 00:22:52,620
in the autonomous wingman competition

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00:22:52,620 --> 00:22:54,750
that was not pursued by the military,

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00:22:54,750 --> 00:22:57,900
but says Talent is cheaper
and faster to build

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and worth another look.

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00:22:59,970 --> 00:23:03,300
Northrop Grumman stock has
been in the green in 2025,

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00:23:03,300 --> 00:23:06,360
up more than 17% since January.

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00:23:06,360 --> 00:23:09,030
And that wraps up your
Defense Dollars for this week.

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00:23:09,030 --> 00:23:11,148
Join us as always on cheddar.com

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00:23:11,148 --> 00:23:14,831
and defensenews.com for
more stories like these.

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00:23:14,831 --> 00:23:15,664
(air whooshing)

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00:23:15,664 --> 00:23:17,030
- [Narrator] Well, that's
all the time we have

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00:23:17,030 --> 00:23:18,330
in this episode.

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00:23:18,330 --> 00:23:21,206
Thanks for joining us and
we'll see you next week.

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00:23:21,206 --> 00:23:24,206
(suspenseful music)