Pentagon’s $1.5B reprogramming would shift money to AI center, MV-75 tiltrotor

WASHINGTON — The Pentagon has requested permission from Congress to reroute about $1.5 billion in funds from fiscal 2026 and 2025 to fund a “high-priority” AI initiative, keep a new Army helicopter program aloft and shift funds related to programs affected by Iran operations.

The reprogramming document sent to Congress in July, which was reviewed by Breaking Defense, seeks to realign $1.2 billion in FY26 funds and $212 million in FY25 funds. Inside Defense was first to report on the request, which must be approved by the congressional defense committees.

The most expensive line item is a request to shift $600 million in FY26 funds to “immediately” build and equip a top secret, high-performance AI compute center. The funds would be used to procure advanced computing infrastructure, hardware and integration services, and would allow the Pentagon to scale AI and machine learning across the Joint Worldwide Intelligence Communications System (JWICS), the document states. 

“Designated as a Secretary of War high-priority initiative, this is an emergent, must-pay requirement necessary to maintain technological overmatch and decision superiority,” the reprogramming document states, using the administration’s preferred term for the defense secretary. 

The department further warned that “denying or delaying this funding will create critical bottlenecks in support of combat operations, intelligence processing, and cybersecurity modernization, while severely degrading the Department’s ability to execute the mandated modernization strategy.”

One of the Army’s biggest modernization efforts — the MV-75 Cheyenne tiltrotor — would be the second biggest recipient of funding if the reprogramming request is approved by Congress, with the money seen as critical for staving off a stop-work order that would halt progress on the program. 

The Army is asking that about $230 million in FY26 funds and $120 million in FY25 funds be reprogrammed into MV-75 research, development test and evaluation (RDT&E), bringing the total RDT&E request to $1.45 billion in FY26 and $1.37 billion in FY25.

Without the funding, prime contractor Textron could be forced to issue a stop-work order as early as mid-July 2026 “resulting in the delay of the MV-75 prototypes, initial production, and fielding,” the reprogramming document states. “Furthermore, a funding shortfall risks the layoff of 5,000 employees across 1,500 companies within the industrial base.” 

The reprogrammed funds would support Textron as it builds and tests eight MV-75 prototype aircraft “in preparation for production in FY 2028,” the reprogramming document reads. Further, such funds will also be used to complete the Critical Design Review this fiscal year and “address cost increases from the prime vendor and critical suppliers.”

Textron did not immediately respond to a request for comment today, and declined to comment on the matter to Breaking Defense when asked about the status of the program last month after Bloomberg reported on the potential work-stop order. The Army also did not respond to a request for comment. 

Reprogramming Adds Money For Drones, Counter-UAS

Congress has yet to act on the Trump administration’s supplemental funding request for FY26, which would allow the department to recoup $67 billion in costs associated with the war with Iran, including for ongoing operations and munitions expenditures. While the reprogramming doesn’t make big ticket requests aimed at tackling those problems, the conflict drove a small number of changes to funding, with money shifted both toward and away from key accounts. 

The department wants to add $18 million for Army drones, using the funding to buy six additional long-endurance drones, along with multi-mission payloads, attrition air vehicles, support equipment and spare parts, “to include support to Operation Epic Fury,” the document states. 

At the same time, the Pentagon intends to pull funding from accounts associated with training partners in the Middle East to fight the Islamic State group, stripping $130 million in FY26 funds from the Counter-Islamic State of Iraq and the Levant Train and Equip Fund — a decrease of $80 million in support to Iraq and $50 million for Syria. It would also remove $36 million in FY25 funds from the same account.

“U.S. force protection posture during Operation EPIC FURY has diminished DoW’s ability to work with our partner forces in the region,” the department said in a justification of the transfer. “Additionally, the phased integration of our Syrian partner force with the new government is impacting Counter-ISIS train and equip activities.”

Outside the scope of Operation Epic Fury, the reprogramming would add $36 million to accelerate the Common Tactical Command and Control system and support testing of counter unmanned aerial system (C-UAS) technology. 

The improved command and control capability “directly supports critical initiatives, including establishing an integrated defense for the National Capital Region, standing up a USCENTCOM integration factory, and deploying capabilities to Joint Task Force Southern Border and the Joint C-UAS University,” the document stated.

The reprogramming would shift $40 million into the Pentagon’s acquisition and sustainment enterprise for “Cyber Integration and Logistics Systems Modernization,” with the aim of boosting supply chain cybersecurity and enabling greater acquisition oversight. 

It would also add $40 million for a classified effort associated with US Special Operation Command.