Multi-Billion Dollar Plan Aims to Bolster Littoral Warfare and Air Power Amidst Indo-Pacific Tensions
Japan’s Ministry of Defense (MoD) has submitted its budget request for the 2026 fiscal year, outlining plans to develop a multi-layered drone network for littoral warfare and a submarine-launched missile capability. The proposed budget reflects a continued trend of increased defense spending as tensions in the Indo-Pacific region escalate.
Record Budget Request
The budget request totals $59.9 billion (8.8 trillion yen), marking another year-on-year increase. A key highlight is the announcement of Japan’s Synchronized, Hybrid, Integrated and Enhanced Littoral Defense (SHIELD), a comprehensive system leveraging unmanned systems across various domains.
SHIELD: A Multi-Domain Unmanned System
The SHIELD program will incorporate ship- and ground-launched Unmanned Aerial Vehicles (UAVs) for short-, medium-, and long-range reconnaissance and strike missions, as well as unmanned surface and underwater vehicles. The budget request allocates 128.7 billion yen for the program, with ship-launched systems intended for use on Japan Maritime Self-Defense Force (JMSDF) vessels, including the 1,900-ton offshore patrol vessels currently under construction.
Procurement of US Systems
The budget request also includes funding for the acquisition of additional US-made systems, notably Lockheed Martin F-35 Lightning II fifth-generation fighter jets and Boeing KC-46 Pegasus tanker aircraft. The plan calls for the purchase of nine additional F-35A Conventional Take Off and Landing aircraft and three F-35B Short Take Off Vertical Landing (STOVL) jets for 138.7 billion and 665 million yen, respectively.
Expanding Air Power
Japan aims to eventually possess 105 F-35As and 42 F-35Bs. The Japan Air Self-Defense Force (JASDF) has already begun transitioning its 303 Squadron to the F-35A, making it the third squadron to do so. The budget request also indicates the establishment of a 202 Squadron to operate the F-35Bs, with the first aircraft having arrived in Japan in early August. These STOVL aircraft will operate from Japan’s two Izumo-class helicopter-destroyers, which are currently undergoing modifications to accommodate the jets.
Tanker Fleet Expansion
The MoD has requested 912 million yen to acquire two more Boeing KC-46A Pegasus tanker aircraft, bringing Japan’s total fleet to eight. The US State Department has previously approved the potential sale of up to 13 KC-46As to Japan.
Next Steps
The MoD’s budget request will now be submitted to Japan’s Ministry of Finance for approval. The final budget will be announced with Japan’s overall government budget early next year.
