The $1.7 Trillion Scrutiny: DOGE F-35 Budget Cuts 2026 Underway

The world's most advanced stealth fighter has just become the ultimate target for fiscal discipline. The Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, has officially launched a comprehensive audit of the F-35 Lightning II program, signaling a seismic shift in U.S. defense spending.

DOGE F-35 Budget Cuts 2026: A Threat to Defense Giants?

According to reports from Reuters, the DOGE panel has identified the $1.7 trillion lifetime cost of the F-35 as 'unsustainable.' As of January 8, 2026, shares of Lockheed Martin fell by 4.2% in after-hours trading, reflecting market anxiety over potential contract renegotiations or cancellations.

The audit isn't just looking at the sticker price per jet. Instead, it's laser-focused on the skyrocketing sustainment and upgrade costs. DOGE argues that with the rise of autonomous Collaborative Combat Aircraft (CCA), the Pentagon can no longer justify the 'legacy inefficiencies' embedded in current defense procurement contracts.

The Tension Between Supremacy and Solvency

Military advocates are sounding the alarm, claiming that any reduction in the F-35 fleet could compromise air superiority against near-peer adversaries. Major partners like Raytheon and Northrop Grumman are also on high alert, as the ripple effects could destabilize the entire global defense supply chain.