US drone spending is now higher than the total defense budgets of countries like Israel, South Korea, or Ukraine, and rivals the budget of the entire US Marine Corps. The Pentagon’s total budget request for the upcoming fiscal year 2027 stands at an unimaginable $1.5 trillion. According to Reuters, if approved by Congress, this will be the largest year-over-year increase in defense spending since World War II. However, the biggest talking point is what the Americans intend to spend this money on – it marks the largest investment in drone warfare and anti-drone systems in US history.
The centerpiece of the plan is the $53.6 billion earmarked for boosting drone production, training operators, expanding the logistics network, and protecting US bases against hostile unmanned aerial vehicles. These funds will be funneled into the DAWG (Defense Autonomous Warfare Group), a unit established in late 2025. This represents a massive financial leap, considering that in the fiscal year 2026 budget, this unit received “only” $226 million.
As explained during yesterday’s (April 21) press briefing by Jules Hurst, a senior official serving as acting Undersecretary of Defense, the new group’s role is critical to modernizing the military:
“I think of the DAWG as a pathfinder—they’re out there finding the best technology for us and working on integration. They’re with these companies, live right now, testing different systems and orchestration tools for autonomy, and they’re giving them live feedback.”
An additional $20.6 billion must be added to this figure for programs like Collaborative Combat Aircraft (developing drones that fly alongside human-piloted fighter jets) and Boeing MQ-25 aerial refueling drones for the Navy. Although total spending is approaching $75 billion, the Pentagon does not currently plan to create a separate military branch for drones (akin to the Space Force). Hurst also cut off speculation regarding the funding targets: “That $70 billion is all going into existing systems and technologies. The industrial base support is entirely separate.”
This drastic pivot is the result of close observation of the modern battlefield. During the global war on terror, the US relied on heavy, high-altitude drones like the Predator or Reaper. However, the Russian-Ukrainian war has proven the destructive power of cheap machines, such as the Iranian Shahed drones. These machines, which cost a mere $20,000 to produce, can effectively overwhelm anti-aircraft defenses, inspiring the US to reverse-engineer its own version. In the background of this arms buildup, the race with China for dominance in the Pacific is constantly unfolding, where autonomous AI-controlled drone swarms are expected to be key.
Time is of the essence here. Lt. Gen. Steven Whitney, Director of Force Structure, Resources, and Assessment for the Joint Chiefs of Staff, bluntly summarized the reason for such sudden and massive investments:
“The evolution we’ve seen in the battlefield is this evolution of technologies in the timeframe of weeks, not the typical years we see with our defense production. So it’s really critical we work with industry to get that capability fielded.”
Now, the historic project to modernize the American military awaits Congress’s decision.