Gov / Military Spending, DOD Contracts, National Defense $$$$

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Navy Selects 7 MUSV Designs to Enter Prototype Phase​

Seven designs have been tapped by the Navy to develop medium unmanned surface vessel prototypes as part of the sea service’s foray into robotic systems, USNI News has learned.

Out of about two dozen options submitted for the MUSV marketplace, the unspecified shipbuilders will develop vessels that will be tested against Navy requirements for the robotic craft, service spokesperson Capt. Ron Flanders said in a Friday statement to USNI News.

“The Navy selected seven entrants in the Medium Unmanned Surface Vessel (MUSV) marketplace to advance to the next phase – prototype evaluation,” Flanders said. “Selected industry partners must successfully complete at-sea demonstrations to prove the maturity of their systems… After successful at-sea demonstrations prior to October 2026, the Navy plans to work with industry to have vessels available for Navy leasing or procurement in fiscal year 2027.”

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SASC Bill Authorizes $1.5B for Security Aid for Taiwan, the Philippines​

Senators want to bolster security assistance to Taiwan and the Philippines through a reorganization of existing efforts, the formation of a war reserve stockpile and a strategy for crisis management in the South China Sea.

The Senate Armed Services Committee’s markup for the 2027 National Defense Authorization Act (NDAA) authorized a significant reorganization that will loop Taiwan and the Philippines into a joint defense scheme dubbed the First Island Chain Security Cooperation Initiative. This assistance plan will replace the Taiwan Security Cooperation Initiative and authorizes up to $1.5 billion in assistance to be shared between Taipei and Manila for fiscal year 2027.

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Drone Dominance Program Receives First Order, Gauntlet II Gets Underway​

Drone Dominance Program Gauntlet Phase II qualifiers concluded last week at Camp Grayling, Michigan. This high-stakes test pitted 49 companies and 79 unique unmanned aerial systems against rigorous mission scenarios, including long-range strikes and close-quarters tactical assaults. Each company brought 20 drones to take on the challenge.

The qualifier event was a critical test for a battlefield that is evolving at an unprecedented pace and showcased how the War Department is answering the call with radical innovation.

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Pentagon seeks $80 billion from Congress for Iran war​

WASHINGTON (AP) — The Pentagon has told senators it needs roughly $80 billion, mostly to cover the cost of the U.S. war against Iran, adding to what is already a sizable military spending boost being sought by President Donald Trump.

The White House Office of Management and Budget has yet to make a formal request to Congress. But Defense Secretary Pete Hegseth has been making the rounds on Capitol Hill, including Monday evening. A top deputy defense secretary told senators about the Iran funding request last week, according to two people familiar with the situation but not authorized to discuss it publicly.

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https://www.msn.com/en-us/news/poli...ess-for-iran-war/ar-AA26incw?ocid=socialshare
 

Report to Congress on FY 2027 Defense Funding for Selected Weapon Systems​

The following is the July 7, 2026, Congressional Research Service report, FY2027 Defense Budget: Funding for Selected Weapon Systems.

From the Report

The second Trump Administration’s Department of Defense (DOD) budget request for FY2027 included $1.1 trillion in discretionary funding and $350.0 billion in mandatory funding. (DOD is “using a secondary Department of War designation,” under Executive Order 14347, dated September 5, 2025.) DOD requested $413.1 billion in procurement and $343.7 billion in research, development, test, and evaluation (RDT&E) discretionary and mandatory funding, in part to support weapon systems.

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Navy Awards TOTE $2.2B to Serve as Vessel Construction Manager for Landing Ship Medium​

The Navy on Monday issued TOTE Services a $2.2 billion contract to function as the vessel construction manager for the Marine Corps’ Landing Ship Medium program, according to a Defense Department contract announcement.

The award is worth up to $2.6 billion with options for as many as eight McClung-class LSMs.

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GAO Report on Funding for Southern Border Security​

The following is the July 13, 2026, Government Accountability Office report, Southern Border Security: DOD Used Multiple Strategies to Fund Operations.

From the Report

Each year, millions of people enter the U.S. along its nearly 2,000-mile-long border with Mexico. But the border is also vulnerable to illegal activities, such as drug smuggling and organized crime.

In January 2025, the president directed the Department of Defense to help the Department of Homeland Security gain complete operational control of the border.

We reviewed DOD’s costs to support these operations. As of March 2026, DOD reported $2.64 billion in costs and used a combination of funding strategies to support these operations. The department also set up a process to track costs.

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