The Department of War (DoW), by service and as a whole, is adding to its AI investment. This means there will be some cuts to previous spending areas, such as defense business systems and cloud.

The DoW’s IT budget includes $14.3 billion for cyberspace activities, an increase of $967 million from FY2025, and $51.8 billion for non-cyber IT, an $837 million increase from last year.

Departmental procurement may change with new priorities from Congress and the White House.

Budget for the Army

The Army has requested a total IT budget of $16.7 billion for FY2026, a decrease of $431 million, or 2.5 percent, from FY2025. 

The largest IT spending increases for the Army includes:

• AI spending is projected to be $507 million, a 38.3 percent increase from FY2025
• Force protections spending is projected to be $443 million, an 820.4 percent increase from FY2025
• DoW enterprise services spending is projected to be $135 million, a 435.5 percent increase from FY2025 

The largest FY2026 IT spending reductions for the Army includes:

• Non-core network infrastructure spending is projected to be $613 million, a decrease of 11.7 percent from FY2025
• Force training spending is projected to be $550 million, a 32.1 percent decrease from FY2025
• Defense business systems spending is projected to be $323 million, a 15.5 percent decrease from FY2025

Budget for the Navy

The Navy’s IT budget increased 2.7 percent from FY2026, to $13.3 billion. AI and infrastructure are expected to see the largest increases in spending.

The largest IT spending increases for the Navy includes:

• Non-core network infrastructure spending is projected to be $493 million, a 25.7 percent increase from FY2025
• AI spending is projected to be $308 million, a 22.7 percent increase from FY2025
• Cyberspace activities are projected to be $251 million, a 14 percent increase from FY2025

The Navy’s largest IT spending cuts for FY2026 are projected to include:

• IT management is expected to be $583 million, a 56.4 percent decrease from FY2025
• Human resources management is expected to be $223 million, a 31.4 percent decrease from FY2025
• Defense business systems are expected to reach $219 million, an 8 percent decrease from FY2025

Budget for the Air Force

The Air Force has requested $11.8 billion for IT spending during FY2026. This is an expected decrease of $477 million, or 3.9 percent, from FY2025. There is expected to be a substantial increase in AI and force application spending, along with cuts to cloud investment.

The largest expected IT increases for the Air Force includes:

• AI spending is projected to be $415 million, a 21.7 percent increase from FY2025
• Cyberspace activities are projected to be $405 million, a 14.7 percent increase from FY2025
• Force application is projected to be $230 million, a 143.8 percent increase from FY2025

The largest IT spending decreases for Air Force are expected to include:

• Cloud spending is projected to be $276 million, a 31.1 percent decrease from FY2025
• Core network infrastructure spending is projected to be $169 million, a 10 percent decrease from FY2025
• Defense business systems spending is projected to be $157 million, a 9.6 percent decrease from FY2025

One Big Beautiful Bill IT priorities

The One Big Beautiful Bill Act (OBBBA) funds nearly $143 billion to the DoW across 10 use areas; about $45.6 billion of those funds are dedicated to IT-related spending. Technologies emphasized in the OBBBA include low-cost weapons derived from unmanned systems, AI-enabled analytics, and cyber and electronic warfare.

AI. The OBBBA funds about $2.5 billion for AI. The largest area of funding is $1 billion to improve munition depth and supply chain resiliency with next-generation automated munitions production factories.

Autonomy and unmanned systems. The bill calls for $9.8 billion to be spent on this technology and systems. The most funding is $5.1 billion to enhance shipbuilding through expansion of the unmanned vessels fleet.

Command and control. More than $13.5 billion is allocated to command and control. Approximately $7.2 billion will go to air and missile defense for development, procurement and integration of military space-based sensors.

Cybersecurity and electronic warfare. About $3.7 billion is projected to be spent on cybersecurity and electronic warfare. More than $1.6 billion is set aside to improve munition-depth supply chain resiliency using cryptographic modernization.

Infrastructure and modernization. Funding for infrastructure and modernization is projected to be $8.9 billion.

Network and communications. Funding for these projects is expected to be nearly $1.3 billion. Some $500 million is set aside for low-cost weapons development by creating and integrating advanced 5G/6G technologies.

Commercial solutions and program elimination

The DoW prefers commercial solutions and establishing new procedures for non-commercial acquisitions. This includes acquisition through Other Transaction Authorities (OTAs) and Commercial Solutions Openings (CSOs) across the DoW.

DoW is also eyeing the elimination of over-cost and behind-schedule programs. Executive Order 14265 initiated a review of major defense acquisition programs. Any program 15 percent behind schedule or over budget may be canceled. DOGE will review future DoW IT contracts exceeding $1 million.

Authority-to-operate (ATO) is being sped up with The Software Fast-Track (SWFT) initiative. SWFT aims to reform the traditional ATO process and to begin continuous authorities-to-operate (cATO). Companies will need their Software Bill of Materials (SBOMs) to be assessed for factors, including cybersecurity posture and the company’s financial health. Certified documentation will be uploaded to Enterprise Mission Assurance Software Service (eMASS), which automates risk management framework processes, manages cybersecurity compliance and generates system authorization packages.

Consumption-based solutions are also a trend. Section 809 calls for a pilot program for consumption-based solutions to address DoW needs. Under this program, anything-as-a-service capability must be metered and billed based on actual usage of fixed price units.  

New policies are set to reform DoW program and budget structures to a capability-centric model. These changes would place programs under Major Capability Activity Areas (MCAAs). Programs within an MCAA would be granted modified transfer authority of as much as 40 percent of the total MCAA appropriation without Congressional approval.

Takeaways for RFIs

What does the DoW budget mean for companies responding to FY2026 RFIs and RFQs? 

Emphasize efficiency, department-wide usefulness and past commercial successes. Agencies and DOGE reviews will look at how solutions increase efficiency and help accomplish the mission.

Highlight how your solution can cut government waste, cut costs and speed timelines. The DoW is prioritizing solutions that can be used across the entire department.

Detail past commercial successes. The DoW is emphasizing dual-use technologies and wants to cut non-commercial solutions from its portfolio. Explain how your solutions have helped organizations with similar missions.

To understand more details about the Department of War FY2026 budget and discover actual program opportunities, contact immixGroup. You can access the entire Department of War market intelligence report here.

This blog is adapted from commentary originally published in Washington Technology. For the complete original commentary, click here.

Joshua Iseler is a market intelligence manager for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Visit immixGroup.com for more information.