US ramps up trillion-dollar defense push—microreactors, F-15EX surge, and a pause on anti-radar missiles

The Pentagon has submitted what it describes as the largest defense budget request in U.S. history, seeking roughly $1.5 trillion and coming in at nearly $500 billion more than the 2026 level. The request is framed around accelerated procurement of major air platforms, with headline funding for programs such as the F-35 and the F-15EX, alongside other priority projects. In parallel, the U.S. Air Force has selected three microreactor companies to install nuclear microreactors to power military bases, signaling a shift toward fission-based electricity resilience as demand for power and autonomy rises. Separately, the U.S. Navy’s FY2027 budget documentation places the AGM-88G AARGM-ER anti-radiation missile program on a “strategic pause,” cutting funding levels sharply. Geopolitically, the cluster points to a U.S. strategy that is simultaneously expanding strike and air dominance capacity while hardening the energy backbone of forward and high-readiness installations. The procurement acceleration benefits prime contractors and the defense industrial base tied to fifth-generation and fourth-plus aircraft, while the microreactor selection creates a new demand signal for nuclear energy technology providers and their supply chains. The “strategic pause” on an anti-radar missile program suggests either a reprioritization toward other counter-air/SEAD approaches, a reassessment of threat assumptions, or a budget reallocation within the Navy’s broader air-defense suppression portfolio. In relative terms, the beneficiaries are aircraft and nuclear microreactor ecosystems, while the immediate losers are specific missile-program vendors and any supply chain segments dependent on AARGM-ER production cadence. Market and economic implications are likely to show up in defense procurement-linked equities and in nuclear-related industrial inputs. The F-15EX buy reportedly doubling to a planned 267 jets in the FY2027 budget implies sustained demand for airframe manufacturing, avionics, and sustainment services, which can support sentiment across defense primes and subcontractors. The microreactor initiative can influence demand expectations for specialized nuclear components, advanced manufacturing, and grid integration services, with knock-on effects for energy infrastructure contractors. On the commodities side, the articles do not cite direct commodity price moves, but the shift toward on-site nuclear power can reduce reliance on fuel logistics for certain base operations, potentially affecting assumptions around military fuel procurement and shipping insurance premia. The missile “pause” is a negative signal for that specific weapons segment, which can translate into near-term order uncertainty for anti-radiation missile suppliers. What to watch next is whether the FY2027 budget request translates into appropriations without major congressional cuts, and whether the microreactor selections progress to deployment timelines and contracting milestones. For the Air Force, key indicators include the number of bases targeted, the expected power output and permitting pathway, and whether the program expands beyond the initial three vendors. For the Navy, the trigger point is how quickly the AARGM-ER “strategic pause” is replaced by alternative SEAD/anti-radiation initiatives, including any rebaseline of requirements or new procurement lines in later budget amendments. For markets, monitor defense contract award announcements, procurement rate changes for F-15EX and F-35, and any congressional hearings that question nuclear microreactor cost, safety, or schedule risk. Escalation risk is moderate: if threat environments deteriorate, the pause could be reversed, but the more likely near-term outcome is continued reprioritization within a fixed topline budget.

Geopolitical Implications

• 01

  Energy resilience becomes a strategic capability: microreactors can reduce vulnerability to fuel logistics and infrastructure disruptions during crises.

• 02

  Air power modernization remains central, with F-15EX scaling suggesting continued emphasis on high-end air dominance and rapid fielding.

• 03

  Naval SEAD posture may shift away from AARGM-ER, potentially reflecting evolving threat radars, countermeasures, or budget reallocation priorities.

• 04

  The defense industrial base is likely to see rebalancing across aircraft, nuclear energy, and missile ecosystems, affecting bargaining power and supply-chain investment decisions.

Key Signals

• —Congressional appropriations outcomes for FY2027 defense budget lines tied to F-15EX/F-35 and microreactors.
• —Base selection, permitting progress, and contracting milestones for the three microreactor vendors.
• —Any FY2027 supplemental or reprogramming that restores, replaces, or further reduces AARGM-ER funding.
• —Procurement rate announcements and long-lead component orders for F-15EX and associated sustainment.