The US Department of War is requesting a multifold increase in funding for Terminal High Altitude Area Defense (THAAD) and Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) missiles to address interceptor attrition and stockpile concerns amid the ongoing Operation Epic Fury against Iran, a surge highlighted by a shift of THAAD procurement to the Army and a combined $25.4 billion request for advanced interceptor missiles, according to a Sputnik correspondent’s analysis of the Pentagon’s recently released FY2027 budget reports.
The funding surge follows reports of a critical attrition gap created by the high volume of interceptors expended during the opening weeks of Operation Epic Fury. US defence officials have warned that the rapid depletion of high-end stockpiles has created strategic vulnerabilities, particularly as the United States struggles to match the mass-production capabilities of Iranian drone and missile assets.
In an apparent attempt to address this shortage, the Department of War is proposing a combined $25.4 billion for THAAD and PAC-3 MSE systems in fiscal year 2027. The most dramatic shift is seen in the THAAD programme, which has been moved from the Missile Defence Agency to the Army and seen its funding surge by 1,289%, rising from $823.125 million in FY2026 to $11.435 billion in FY2027.
The PAC-3 MSE programme is seeing a similar scale of expansion across two branches of service. The Army is requesting $12.229 billion for the interceptor, a 642.9% increase over the $1.646 billion allocated in FY2026. Simultaneously, the Navy is requesting $1.731 billion to begin purchasing PAC-3 MSE missiles for its warships, a major strategic expansion that brings the Army’s premier land-based interceptor to the US fleet for the first time.
