The story so far
edited Oct 24 · 2 paragraphs changedWhat is happening
The Department of Defense and Lockheed Martin reached a 10-year framework agreement on October 22, 2026, to procure 1,560 F-35 Lightning II aircraft 1. The deal specifies that the United States will purchase at least 850 of these fighters, with the remainder allocated to international customers 1. The agreement covers initial spare parts, a decade of modification kits, and sustainment services while maintaining a production rate of 156 aircraft per year 1. Under Secretary of War Michael P. Duffey stated the deal aligns financial incentives with performance to produce at speed and scale 1. Lockheed Martin will self-fund at least $7 billion in program initiatives under the terms 1. The Congressional Budget Office estimated on September 28, 2026, that the Department of Defense plans to purchase 425 F-35s between fiscal 2027 and 2031 at a cost of $61.4 billion 6.
updated Oct 24 · 2 earlier versions
Updated to reflect the total aircraft count of 1,560 and include the quote from the Under Secretary of War regarding performance incentives [1].
The Department of Defense and Lockheed Martin reached a 10-year framework agreement on October 22, 2026, to procure at least 850 F-35 Lightning II fighters 1. The deal includes initial spare parts, a decade of modification kits, and sustainment services while maintaining a production rate of 156 aircraft per year 1. Lockheed Martin will self-fund at least $7 billion in program initiatives under the terms 1. The Congressional Budget Office estimated on September 28, 2026, that the Department of Defense plans to purchase 425 F-35s between fiscal 2027 and 2031 at a cost of $61.4 billion 6.
Adds the CBO cost estimate for the 2027-2031 procurement period [6].
The Department of Defense and Lockheed Martin reached a 10-year framework agreement on October 22, 2026, to procure at least 850 F-35 Lightning II fighters 1. The deal includes initial spare parts, a decade of modification kits, and sustainment services while maintaining a production rate of 156 aircraft per year 1. Lockheed Martin will self-fund at least $7 billion in program initiatives under the terms 1.
Execution of a formal contract depends on Congress authorizing a multiyear buy and providing funding in the coming months 1. The House Appropriations Committee released a $1 trillion defense spending bill for fiscal 2027 on June 10, 2026, which fully funds F-35 procurement at $6.9 billion 2.
Execution of a formal contract depends on Congress authorizing a multiyear buy and providing funding in the coming months 1. The House Appropriations Committee released a $1 trillion defense spending bill for fiscal 2027 on June 10, 2026, which fully funds F-35 procurement at $6.9 billion 2. The Senate Armed Services Committee included language in its version of the fiscal 2027 National Defense Authorization Act to permit multi-year procurement of the F-35 8. Federal law requires specific authorization in both an authorization act and an appropriations act for any multi-year procurement contract exceeding $500 million 67.
What to watch
Congress passing a defense appropriations bill authorizing the F-35 purchase would settle the legislative requirements for the deal. The appropriations bill being signed into law by the President would then allow the Department of Defense to sign the long-term supply contract with Lockheed Martin. The first F-35 delivery under the new agreement would follow these actions. Approval of the U.S. fighter force structure report would settle the long-term requirement for a 60% stealth fleet by 2035 1.
updated Oct 24 · 1 earlier version
Added the pending fighter force structure report as a factor for settling long-term fleet requirements [1].
Congress passing a defense appropriations bill authorizing the F-35 purchase would settle the legislative requirements for the deal. The appropriations bill being signed into law by the President would then allow the Department of Defense to sign the long-term supply contract with Lockheed Martin. The first F-35 delivery under the new agreement would follow these actions.
Read the full brief · how we got here
How we got here
The House Armed Services Committee included provisions to authorize multiyear procurement for the F-35 in its May 26, 2026, draft of the fiscal 2027 National Defense Authorization Act 34. This framework follows the April 25, 2026, finalization of a $12.5 billion contract modification for Lots 18 and 19, which covered 296 aircraft with deliveries scheduled through August 2028 5. Lockheed Martin reported delivering a record 191 F-35s in 2025 6.
References · 8
- 1militarytimes.com — Pentagon, Lockheed agree to 10-year deal for 850 F-35 jets
- 2breakingdefense.com — House appropriators release $1 trillion defense bill for FY27
- 3hype.aero — HASC marks up FY2027 NDAA: multiyear F-35 and F-15EX buys; more Black ...
- 4airandspaceforces.com — Draft NDAA Would Authorize Multiyear Buys for F-35, F-15EX
- 5govconfeed.com — Lockheed Martin's F-35 Lots 18-19 — $12.5B contract finalizes 296 ...
- 6news.lockheedmartin.com — Lockheed Martin Corporation | Lockheed Martin
- 7eurasiantimes.com — The $7 Billion Bet Inside Lockheed’s F-35 Framework: Why Pentagon Wants to Lock Production for a Decade
- 8congress.gov — Text - S.4638 - 118th Congress (2023-2024): National Defense Authorization Act for Fiscal Year 2025 | Congress.gov | Library of Congress
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5newest firstPentagon and Lockheed Martin finalize 10-year framework for 850 F-35s
The Department of Defense and Lockheed Martin reached a framework agreement to procure at least 850 F-35 fighters over a decade, pending final Congressional authorization. The deal aims to stabilize the defense industrial base by maintaining a production rate of 156 aircraft per year for U.S. and international partners.
- The agreement covers 1,560 total aircraft, initial spares, and 10 years of modification kits and sustainment services 1.
- Under Secretary of War Michael P. Duffey stated the deal aligns financial incentives with performance to produce at speed and scale 1.
- Execution of the formal contract remains contingent on Congress passing the fiscal 2027 National Defense Authorization Act and accompanying appropriations 1.
Full analysiswritten from the full pages behind this update
What happened
The Department of Defense and Lockheed Martin reached a framework agreement on October 22, 2026, to procure 1,560 F-35 Lightning II aircraft over a 10-year period 1. The deal specifies that the United States will purchase at least 850 of these stealth fighters, with the remainder allocated to international customers 1. The agreement establishes a steady production rate of 156 aircraft per year 1. Beyond the airframes, the framework covers initial spare parts, a decade of modification kits, and a comprehensive sustainment package for the global fleet 1. Under Secretary of War Michael P. Duffey stated the agreement aligns financial incentives with performance to ensure warfighters receive lethal capabilities at speed and scale 1. To support this expanded capacity, Lockheed Martin committed to investing $7 billion of its own capital into program initiatives 1. This framework follows the inclusion of multi-year procurement language in the fiscal 2027 National Defense Authorization bill released in May 1.
Why it matters
The agreement aims to stabilize the American defense industrial base by providing a long-term procurement signal to contractors 1. Lt. Gen. David Tabor, deputy chief of staff for plans and programs, stated that multi-year packages provide the financial stability necessary for defense companies to invest in production facilities 1. Lockheed Martin Chairman, President, and CEO Jim Taiclet noted that the certainty provided by this transformative approach allows the company to improve efficiency and build a more resilient supply chain 1. The deal supports a broader U.S. Air Force strategy to reach a 1,509 combat-coded fighter fleet by 2035, of which 60% would be stealth aircraft 1. If the force structure report is approved, F-35As would account for 40% of that fleet 1. The Pentagon believes these multi-billion dollar, long-term commitments encourage the upfront private investment required to meet global demand for the platform 1.
What's next
Execution of the formal contract depends on Congress granting multi-year authority and passing the associated appropriations in the coming months 1. If Congress provides this authority, the F-35 Joint Program Office and Lockheed Martin will finalize the contract terms 1. The legislative body is currently considering similar multi-year procurement authorities for other platforms, including a plan for the Pentagon to buy at least 268 Boeing F-15EX fighters over the next decade 1. Approval of the U.S. fighter force structure report, currently pending before Congress, would settle the long-term requirement for a 60% stealth fleet by 2035 1. This fleet would include the F-35 alongside F-22 Raptors and F-47s 1. The Navy and Marine Corps are also scheduled to integrate additional F-35B and F-35C variants under the finalized force structure 1.
Lockheed Martin self-funds F-35 Lot 20 production as costs exceed authorized funding
Lockheed Martin reported on October 22, 2026, that costs for F-35 Lot 20 have exceeded currently authorized government funding, requiring the company to pay out of pocket to maintain production. This self-funding occurs under an early-funding contract while the company awaits a formal multi-year agreement and full congressional appropriations.
- Lockheed Martin warned in its third-quarter earnings release that results and cash flow will be negatively impacted if additional funding is not authorized 1.
- The company is continuing work on Lot 20 despite the funding gap to maintain the production rate of 156 aircraft per year 1.
- CEO Jim Taiclet confirmed the October 22 framework agreement for 850 jets provides a 10-year path, but a formal contract for Lot 20 remains unsigned pending legislative action 1.
Senate committee includes F-35 multi-year authority in 2027 defense bill as CBO estimates $61.4 billion cost
The Senate Armed Services Committee has included language in its version of the fiscal 2027 National Defense Authorization Act to permit multi-year procurement of the F-35 18. This legislative step is required to finalize the 10-year framework agreement reached on October 22, 2026 69.
- The Congressional Budget Office estimated on September 28, 2026, that the Department of Defense plans to purchase 425 F-35s between fiscal 2027 and 2031 at a cost of $61.4 billion 6.
- Federal law requires specific authorization in both an authorization act and an appropriations act for any multi-year procurement contract exceeding $500 million 67.
- The Department of Defense and Lockheed Martin will begin finalizing contract terms, pricing, and schedules only after Congress grants the necessary authority and appropriations 9.
Full analysiswritten from the full pages behind this update
What happened
The Department of Defense and Lockheed Martin finalized a 10-year framework agreement on October 22, 2026, for the production and sustainment of the F-35 Lightning II 15. The agreement guarantees the United States will receive at least 850 aircraft over the next decade while maintaining a total production rate of 156 fighters per year to accommodate international customers 16. Under the terms, Lockheed Martin will self-fund at least $7 billion in program initiatives to support the F-35 enterprise 58. The framework covers the procurement of initial spare parts, a decade of modification kits, and global fleet sustainment services 67.
This agreement follows the Senate Armed Services Committee's inclusion of language in the fiscal 2027 National Defense Authorization Act (NDAA) to permit multi-year procurement of the F-35 1. The Congressional Budget Office estimated on September 28, 2026, that the Department of Defense intends to purchase 425 F-35s between fiscal 2027 and 2031 at a cost of $61.4 billion 6. The framework is intended to shift the program away from annual contracting cycles, which the Department of Defense states have previously constrained the industrial base 67.
Why it matters
The transition to a multi-year procurement model is expected to save taxpayers between $9 billion and $10 billion by enabling bulk procurement of raw materials and critical parts 6. Lockheed Martin CEO Jim Taiclet stated that the long-term certainty allows the company to make upfront investments to expand capacity and improve supply chain resilience 17. The agreement aligns financial incentives with performance, according to Under Secretary of War Michael P. Duffey, who noted the deal is a milestone for the Pentagon’s Acquisition Transformation Strategy 68.
For the defense industrial base, the 10-year horizon provides stability for a program that supports 317,000 U.S. jobs and generates approximately $79 billion in annual economic activity 67. The International Association of Machinists and Aerospace Workers (IAM) indicated that the contract length provides specialized workers with firmer job security and encourages suppliers to invest in production facilities 6. However, the program continues to face scrutiny; a June 2026 Government Accountability Office report questioned the success of readiness strategies due to industry capacity constraints 5. Additionally, the Department of Defense opened an investigation in September 2026 regarding a shipment of F-35 parts that was diverted to Hong Kong 5.
What's next
Execution of the formal contract depends on Congress granting specific multi-year authority and associated appropriations in the coming months 16. Federal law requires this dual authorization for any multi-year procurement contract exceeding $500 million 6. Once the fiscal 2027 NDAA and the corresponding appropriations bill are signed into law, the F-35 Joint Program Office and Lockheed Martin will finalize specific contract terms, pricing, and delivery schedules 18.
The U.S. Air Force is also awaiting congressional approval of a fighter force structure report that envisions a 1,509 combat-coded fighter fleet by 2035, of which 40% would be F-35As 1. A separate potential $24.3 billion sale of 48 F-35s to Saudi Arabia, announced in September 2026, remains under congressional review 8. The current production lot 18, which includes 145 aircraft under an $11.8 billion contract modification, is scheduled for completion in June 2027 3.
When we started following: Pentagon and Lockheed Martin agree to 10-year framework for 850 F-35 fighters pending congressional approval
The Department of Defense and Lockheed Martin announced a 10-year framework agreement on October 22, 2026, to produce at least 850 F-35 Lightning II fighters 267. The arrangement covers production Lots 21 through 30 and includes spare parts, modification kits, and sustainment for both U.S. forces and international customers 16.
Execution of a formal contract depends on Congress granting multiyear procurement authority and funding in the coming months 12. Under the framework, Lockheed Martin has committed to self-funding at least $7 billion in initiatives to support the program, aiming to expand capacity and improve supply chain resilience 26. The plan maintains a combined annual production rate of 156 aircraft for all customers 16.
This framework follows a $177 million contract awarded on April 23, 2026, for three specialized F-35s intended to mitigate flight science and test bottlenecks 3. On June 28, 2026, the U.S. also awarded a $74.2 million contract to integrate sovereign weapons into the British and Italian F-35 fleets 11. The F-35 Joint Program Office and Lockheed Martin will finalize specific terms, pricing, and schedules once legislative authorization is secured 12.
When we started following: Pentagon and Lockheed Martin agree to 10-year framework for 850 F-35 jets pending congressional approval
The Defense Department and Lockheed Martin reached a 10-year framework agreement on October 22, 2026, to procure at least 850 F-35 Lightning II fighters 1. The deal includes initial spare parts, a decade of modification kits, and sustainment services, while maintaining a production rate of 156 aircraft per year 1. Under the terms, Lockheed Martin will self-fund at least $7 billion in program initiatives 1.
Execution of a formal contract depends on Congress authorizing a multiyear buy and providing funding in the coming months 1. Legislative progress toward this authority includes:
- Policy Authorization: The House Armed Services Committee’s May 26, 2026, draft of the fiscal 2027 National Defense Authorization Act (NDAA) included provisions to authorize multiyear procurement for the F-35 34.
- Appropriations: The House Appropriations Committee released a $1 trillion defense spending bill for fiscal 2027 on June 10, 2026, which fully funds F-35 procurement at $6.9 billion 2.
This framework follows the April 25, 2026, finalization of a $12.5 billion contract modification for Lots 18 and 19, covering 296 aircraft with deliveries scheduled through August 2028 5. Lockheed Martin reported delivering a record 191 F-35s in 2025 6.