Trump to Announce Major US Air Force Fighter Jet Contract

In a significant move for the United States military, President Donald Trump is set to publicly declare the Pentagon's decision regarding a crucial contract for a next-generation fighter jet, which could exceed $20 billion. This announcement is anticipated to take place on Friday, despite existing concerns regarding budget limitations and evolving defense priorities, according to informed sources.

The Next Generation Air Dominance (NGAD) initiative aims to replace the F-22 Raptor, manufactured by Lockheed Martin, with a new crewed aircraft designed to operate in conjunction with unmanned drones in combat scenarios. While the specific design details of the aircraft remain confidential, it is expected to feature advanced stealth capabilities, cutting-edge sensors, and state-of-the-art engines.

Lockheed Martin and Boeing are the primary competitors for this lucrative engineering and manufacturing development contract, which is valued at over $20 billion. The selected contractor stands to gain hundreds of billions in future orders throughout the contract's extensive duration. For Boeing, securing this contract would represent a positive turnaround following recent challenges faced in both its commercial and defense sectors, while a loss could have severe implications for the company. Conversely, a win for Lockheed Martin, the largest defense contractor globally, would bolster its position in high-end military offerings, including the F-35 fighter jet.

Officials from the Air Force, along with representatives from Boeing and Lockheed Martin, did not respond promptly to inquiries regarding the impending announcement.

Scheduled for 11 a.m. in the Oval Office, the announcement will be made alongside Secretary of Defense Pete Hegseth. This decision comes during a period when Trump has been actively pursuing cost-cutting measures across various government sectors, although the legality and scope of these initiatives have been subjects of debate. Recently, he signed an executive order aimed at restructuring the Department of Education.

The NGAD program has been conceptualized as a comprehensive system focused around a sixth-generation fighter jet, intended to address threats posed by near-peer adversaries, notably China and Russia. Under Trump's administration, which commenced in January, the NGAD program has gained momentum after a phase of uncertainty that raised questions about the future of next-generation fighter aircraft.

Elon Musk, a billionaire and advisor to the president, has expressed doubts regarding the efficacy of crewed high-end fighters, suggesting that less expensive drone technology could serve as a more viable alternative. Last year, the NGAD initiative faced potential delays and reductions in scope due to budgetary pressures and cost overruns from other Air Force projects. However, the upcoming announcement indicates that a design finalized in the previous year is poised to be selected for the NGAD.

Boeing is currently navigating challenges within both its commercial and defense operations. Winning the contract could provide a significant boost to its fighter jet production facilities located in St. Louis, Missouri. Meanwhile, Lockheed Martin has recently been excluded from the competition to develop the Navy's next-generation carrier-based stealth fighter. If it fails to secure the NGAD contract, the company may refocus its efforts on enhancing its F-35 fighter program and increasing international sales of its F-16 jets.