- The Army has proposed a $253 billion FY2027 budget centered on modernization and readiness
- Budget includes $7.3 billion for munitions expansion and $3.8 billion for the industrial base
- The 2026 Army Summit on June 18 will examine AI, tactical edge and air defense priorities
Army Maj. Gen. Rebecca McElwain, the service’s budget director, said the Army’s proposed $253 billion budget for fiscal year 2027 is built around three lines of effort: modernizing the force through continuous transformation, delivering combat-ready forces and strengthening the profession.
As the Army advances its modernization, readiness and transformation priorities through its proposed fiscal 2027 budget, government and industry leaders will gather at the 2026 Army Summit on June 18 to discuss many of the same issues shaping the service’s future. The event will feature panel discussions on artificial intelligence, reconfigurable air defense and cost-effective fires, tactical edge capabilities and other key Army initiatives. Sign up now!
McElwain said the modernization effort focuses on accelerating how the Army fights, equips and trains while getting new technologies into the hands of warfighters. The combat-ready forces line of effort includes investments in next-generation weapons systems, while the profession-focused initiative supports housing, family programs and other quality-of-life improvements.
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How Does the Army Plan to Build & Sustain Combat-Ready Forces?
To support the Department of War’s priority to rebuild the military, the Army’s budget proposal includes $7.3 billion for munitions expansion, $3.8 billion for its organic industrial base and $1.3 billion for end-strength growth.
“So, as we deliver combat-ready forces, we’re trying to make sure the budget ensures that units are properly equipped and trained,” McElwain said during a recent Association of the U.S. Army Coffee Series event.
What Investments Support NGC2 & Deterrence Priorities?
The Army’s FY 2027 budget proposal includes a 12.9 percent increase in research, development, test and transformation funding, including support for the service’s Next-Generation Command and Control, or NGC2, initiative.
According to McElwain, NGC2 will integrate technology layers spanning data, infrastructure, transport and applications to provide commanders with visibility across multiple platforms and operational domains.
The proposal also includes funding aligned with DOW’s deterrence priorities. The Army plans to allocate $1.1 billion for southern border defense efforts and $1.9 billion for counter-unmanned aircraft systems capabilities. The service’s budget request also includes increased funding for electromagnetic warfare and signals intelligence capabilities.
