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Trump budget targets 'valley of death' in Pentagon contracting overhaul

The $1.5 trillion military budget request proposes changing Pentagon procurement so contractors must finance factory expansions and face penalties for missed production targets to bridge the so-called 'valley of death.'

Published May 9, 2026, 9:00 AM EDT | WFMZZ

The Trump administration's $1.5 trillion military budget request would change how the Pentagon buys weapons by requiring contractors to fund their own factory expansions and imposing penalties for missed production targets. The proposal aims to address the 'valley of death' between prototype development and full-rate production by shifting more financial risk onto private firms.