Lockheed Martin Hit As Pentagon Slashes Air Force's F-35 Order In Half Amid Budget Cuts

The Pentagon slashed its Air Force F-35 fighter jet request from 48 to 24 aircraft, delivering a significant blow to Lockheed Martin Corp. LMT amid sweeping defense budget cuts.

What Happened: A Defense Department procurement document sent to Congress this week reduced the Air Force’s F-35A request by half from last year’s forecast. The service now plans to request $3.5 billion for the aircraft plus $531 million for advance procurement of materials, reported Bloomberg.

The cut reflects compliance with Defense Secretary Pete Hegseth’s directive to reduce projected military spending by 8% annually over five years. Hegseth’s February memo ordered senior Pentagon officials to develop budget reduction plans by Feb. 24, exempting nuclear weapons modernization, missile defense, submarines and drone programs while leaving manned aircraft unprotected.

The Navy will request $1.95 billion for 12 carrier-variant F-35s, down from 17 approved this fiscal year, plus $401.5 million for advance procurement. The Marines plan to seek $1.78 billion for 11 planes, reduced by two from current funding levels, with an additional $113.7 million for materials.

Why It Matters: The F-35 program has faced mounting criticism under President Trump. Elon Musk said in December that “some idiots are still building manned fighter jets like the F-35” in an age of drones. Right-wing influencer Laura Loomer called the program “a scandal that’s quietly draining our nation’s resources while compromising our military readiness.”

The F-35 represents a roughly $2 trillion commitment, including $1.5 trillion for decades of support and $485 billion for development and procurement of 2,456 jets. Approximately 967 have been contracted, with 747 delivered. The Air Force originally planned to acquire 1,763 F-35As.

The cuts align with broader Pentagon cost-reduction efforts, including $5.1 billion in terminated consulting contracts with firms like Accenture PLC ACN and Booz Allen Hamilton Holding Corp. BAH. Congressional supporters of Lockheed Martin may attempt to restore funding as the budget moves through legislative review.