Stock Markets June 11, 2026 10:42 AM

Pentagon Seeks $13.7 Billion to Reverse Drop in F-35 Readiness

New funding request targets spare parts and contractor dependence as fleet mission-capable rates fall sharply

By Marcus Reed
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The Pentagon's F-35 program office has asked for an additional $13.7 billion through 2031 to address falling readiness across the Air Force, Navy and Marine Corps F-35 fleets. A Government Accountability Office report released Thursday says shortages of spare parts, continued reliance on contractors such as Lockheed Martin, and persistent capacity constraints for key components are central challenges. The GAO also found that incentives paid to contractors since 2020 have not produced the intended improvements, and that the services face a structural funding gap exceeding $1 billion annually by the mid-2030s.

Pentagon Seeks $13.7 Billion to Reverse Drop in F-35 Readiness
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Key Points

  • Pentagon requests $13.7 billion through 2031 to improve F-35 readiness, with more than half allocated to spare parts.
  • Mission-capable rates have fallen significantly: fleet mission-capable from 67% (FY2021) to 44% (FY2025); full mission-capable from 38% to 25% over the same period.
  • The program faces affordability pressures and expects an annual funding gap exceeding $1 billion by the mid-2030s, affecting defense sustainment budgets and aerospace contractors.

Overview

The Pentagon has submitted a new request for $13.7 billion in additional funding through 2031 aimed at reversing a steady decline in F-35 readiness rates across the Air Force, Navy and Marine Corps. The Government Accountability Office released a report on Thursday detailing the department's case for the extra funds and identifying risks to the program office's planned response.

Why the money is needed

The program office's funding proposal is intended to confront multiple shortfalls that have driven readiness lower, chief among them a lack of spare parts and heavy reliance on outside contractors, including Lockheed Martin. According to the report, more than half of the $13.7 billion request is earmarked for spare parts to increase the share of aircraft deemed capable of completing assigned missions.

Measured declines in readiness

The GAO report documents a notable drop in mission-capable metrics. The mission-capable rate across the F-35 fleet fell from 67 percent in fiscal year 2021 to 44 percent in fiscal year 2025. Over the same period the full mission-capable rate declined from 38 percent to 25 percent.

Incentives and affordability pressures

The Pentagon has paid its contractor hundreds of millions of dollars in incentives since 2020 with the goal of improving F-35 readiness. The GAO concluded that those incentives have not been effective. The report also warns that the U.S. military services will confront an annual shortfall of more than $1 billion between projected sustainment costs for their F-35s and their affordability goals by the mid-2030s.

Program risks and supplier constraints

The GAO identified multiple risks that could prevent the program office from meeting objectives under its new strategy, called the Global Support Solution Reset. The office plans to rely on the private sector to supply more than $7 billion in additional parts and other material, but capacity constraints remain for key components, the report found. Those supplier limitations pose a direct risk to the timeline and effectiveness of the reset strategy.

Implications

The funding request and accompanying GAO findings outline an effort to shore up logistics and sustainment for the F-35 fleet. The request focuses heavily on parts and material to lift mission-capable rates, while highlighting structural affordability and supplier capacity challenges that will need to be addressed for the plan to succeed.

Risks

  • Heavy reliance on contractors, including Lockheed Martin, creates vulnerability if private-sector delivery falls short - impacting defense contracting and aerospace supply chains.
  • Capacity constraints for key spare parts threaten the Global Support Solution Reset's ability to raise readiness - affecting logistics and maintenance operations.
  • Incentive payments since 2020 have not yielded the intended readiness improvements, raising uncertainty about the effectiveness of current contractor performance mechanisms.

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