Pentagon rushes tens of billions in last-minute spending before fiscal 2026 deadline

As the FY2026 deadline approaches, the Pentagon dramatically accelerated its outlays, obligating tens of billions of dollars from both the prior year’s reconciliation law and one outlet fiscal year’s omnibus budget. Congressional sources note that roughly 90% of the $156 billion in multiyear mandatory appropriations has been spent, leaving only a small fraction that could face an 8.3% sequester. Simultaneously, the department pushed through the remaining $93 million of a $400 million Ukraine security assistance package within a single week.

The overall defense budget, combining discretionary and mandatory spending, tops $1 trillion, the largest in the department’s history. Officials highlighted the urgency of using the funds before the new fiscal year’s sequestration rules take effect. This spending surge marks an unusually rapid use of both mandatory and discretionary resources compared with typical year-end patterns.