Program's pivotal stage welcomes new F-35 JPO Director
The F-35 program, a cornerstone of U.S. aerial dominance, is currently undergoing a significant transformation. This transition involves the adoption of a new configuration, known as Block 4 or TR-3 upgrade, and ongoing negotiations for production and engine supply contracts between Lockheed Martin, Pratt & Whitney, and the U.S. Defense Department.
New Configuration and Production Status
The F-35 program is moving towards the Block 4 upgrade, which aims to enhance the aircraft’s combat capabilities. However, the integration of TR-3 hardware has caused cost and schedule overruns, leading to a pause in F-35 deliveries for nearly a year (July 2023–July 2024). Lockheed Martin has announced the full combat version of TR-3 is ready, but formal approval and the full timeline for Block 4 remain uncertain.
Budget Concerns
Amidst prioritizing sustainment and modernization funding, the Department of Defense has lowered its F-35 order request for 2026 to 47 aircraft. There is a disagreement among congressional committees regarding procurement numbers, with the House Appropriations Committee considering 69 jets for the 2026 budget, and the Senate Armed Services Committee looking at 57. The House Armed Services Committee has shown caution, directing annual Government Accountability Office reviews due to past cost growth and schedule delays.
Handshake Deal and Contracts
A "handshake deal" has been reached between Lockheed Martin and the F-35 Joint Program Office (JPO) since November 2022 on Lots 18 and 19 production contracts, covering three F-35 variants for U.S. services and international customers. However, a finalized contract spelling out unit costs has not yet been announced, with formal awards expected in summer 2025. A similar handshake deal has not been publicly confirmed yet with Pratt & Whitney, the supplier of the F135 engines for these lots.
Production Outlook
Lockheed Martin expects to deliver between 170 to 190 F-35 jets by the end of 2025, maintaining high production rates despite budget uncertainties. About 97 jets have already been delivered this year.
Leadership and Oversight
Marine Corps Lt. Gen. Gregory L. Masiello took over as JPO director in July 2025, amid this transitional phase. His primary task is to finalize contractual details and manage program risks. Congressional concern remains high over cost growth, schedule delays, and capability reductions, resulting in increased emphasis on modernizing the platform carefully while controlling expenses.
In summary, the F-35 program is at a pivotal juncture, balancing the integration of a significant new upgrade (Block 4/TR-3), negotiating production and engine supply contracts, and managing procurement volume in a constrained budget environment. Lockheed Martin continues robust production while awaiting formal contract awards and full operational approval of the upgraded configurations.
- The Space Force is considering integrating F-35 aircraft into their arsenal for advanced aerial dominance, with discussions ongoing about potential roles for these aircraft in space-based defense.
- A Pentagon report highlights advances in drone technology, particularly in the miniaturization of drones, which could supplement or replace conventional aircraft in certain missions, thereby reducing overall costs.
- In an effort to diversify Defense Department components, there has been a proposal to establish a Space Air Force, combining space-related assets and capabilities traditionally housed in the Air Force with the Space Force.
- As technological advancements continue in the realm of drone warfare, the use of artificial intelligence (AI) for autonomous decision-making in drone operations has raised ethical concerns within defense circles, prompting discussions on regulation and oversight.
