THAAD missile defence system. The Terminal High Altitude Area Defence (THAAD) system targets incoming ballistic missiles in their terminal phase. Target is destroyed using kinetic energy. 3d rendering
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On Monday, the Pentagon announced agreements with L3Harris Technologies and Lockheed Martin to expand weapons production capacity for components of two missile interceptors over the next seven years.
Michael Duffey, Under Secretary of War for Acquisition and Sustainment, called the deals “a decisive win for the Warfighter, underscoring our commitment to sending clear demand signals to the entire supply chain.” The agreements are the latest in a slew of Pentagon deals to increase production of air defense systems, which the United States has quickly expended in its war on Iran.
The Pentagon’s framework agreements may promise to increase weapons production, but they are not yet set in stone. Lawmakers have the ultimate authority to enable such an effort, which is largely motivated by the depletion of stockpiles in an unpopular, illegal war on Iran.
Congress’ role
According to a poll released Tuesday, a majority of Americans across every age group oppose both Iran War spending and the White House’s trillion-dollar-plus military budget. Last week, the House of Representatives passed a resolution introduced by Rep. Pramila Jayapal (D-Wash.) directing the president to end the war on Iran.
Regardless, the administration continues to push for war funding, including to replenish stockpiles. However, the Pentagon’s framework agreements with L3Harris and Lockheed Martin are legally non-binding and dependent on congressional funding. Lawmakers provide the Pentagon with budget authority to enter into contracts through the defense spending bill, which Congress has yet to pass.
In June, the House Appropriations Committee passed its version of the defense spending bill, including a provision to authorize seven-year procurement contracts for certain weapon systems. These include both the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) and Terminal High Altitude Area Defense missile (THAAD) interceptor systems, the focus of the Pentagon’s latest framework agreements with the arms industry.
But even if Congress retains this provision, the Pentagon’s framework agreements to boost weapons production likely require lawmakers to approve additional military spending outside of regular appropriations.
Missile procurement
The majority of the president’s weapons procurement budget relies on lawmakers passing a spending bill through the budget reconciliation process. Such is the case for both the PAC-3 MSE and THAAD systems.
The White House requested $11.4 billion in procurement funding for the THAAD in fiscal year 2027, $10.5 billion of which it slated for a potential reconciliation bill. It requested the rest, $907.2 million, through regular appropriations. Meanwhile, $10.9 billion of the president’s $12.2 billion request for PAC-3 MSE interceptor procurement relies on reconciliation.
The House version of the defense spending bill largely aligns with the president’s budget request. The appropriations committee approved $1.3 billion in PAC-3 MSE procurement funding while recommending about $174 million less in procurement funds for the THAAD program than the White House requested through regular appropriations.
Current state of play
While procurement funding for PAC-3 MSE and THAAD interceptors in fiscal year 2027 is uncertain, the Pentagon has encouraged increased production by awarding contracts with fiscal year 2026 procurement funds.
Last week, the department announced an award for more than $35 billion to Lockheed Martin to produce THAAD interceptors. On Wednesday, the U.S. Army awarded the company a $54 billion contract to produce PAC-3 MSE interceptors.
Still, the future of the THAAD and PAC-3 programs lies with lawmakers. Lockheed Martin and L3Harris claim that framework agreements with the Pentagon will enable them to “nearly triple production” of propulsion products supporting the PAC-3 MSE while quadrupling propulsion production for the Terminal High Altitude Area Defense system.
These production increases require massive investment by taxpayers, who help foot the bill for both weapons contracts and industrial base expansion. Meanwhile, the U.S. military continues to deplete stockpiles of PAC-3 MSE and THAAD interceptors for its war on Iran.