House Appropriations Committee redirects $1.55 billion to sustain Air Force E-7 Wedgetail prototype program

The House Appropriations Committee approved a fiscal 2027 amendment that moves more than $1.55 billion into the Air Force’s research, development, test and evaluation budget to keep the E-7 Wedgetail airborne battle-management jet alive. The money, which the Air Force had omitted from its original request after a prior cancellation effort, will fund two prototype aircraft and continue engineering, manufacturing and development activities.

The Office of Management and Budget sourced the funds by reallocating roughly $651 million from the Navy’s E-2D Hawkeye procurement account and $899 million from another Air Force procurement line, directing the combined amount to the Air Force’s Special Update Program, a classified procurement line.

“The conflict in Iran has reinforced the need for the Air Force to maintain a credible airborne battle management capability, currently being met with the Air Force’s E-3 Airborne Warning and Control System and the Navy’s E-2D Hawkeye programs,” the committee wrote.

The committee, however, rejected the offset against the Hawkeye program and restored the $651 million to the E-2D budget, noting the platform’s operational necessity and its complementary role to the E-7.

The Air Force already holds contracts for seven E-7 aircraft—two rapid prototypes and five additional units added in March—but all are developmental jets intended to validate the U.S. design before any production decision. Lawmakers have directed the Air Force secretary to brief the defense appropriations subcommittees on the full acquisition strategy, including required quantities, future funding, and development timelines.

Prior to the Iran conflict, the Air Force had considered terminating the E-7 program due to rising per-aircraft costs and concerns about survivability in contested airspace, favoring additional E-2Ds and space-based sensors. The recent regional tension highlighted a short-term battle-management gap that satellites cannot yet fill, prompting the Pentagon to reverse its earlier stance.