A House Appropriations Committee report released Wednesday supported shifting more than $1.55 billion to continue development of the Air Force’s E-7 Wedgetail, while restoring $651 million that the White House had proposed taking from the Navy’s E-2D Hawkeye program.
In a June 17 budget amendment to House Speaker Mike Johnson, R-La., the Office of Management and Budget asked Congress to move the money into the Air Force’s research, development, test, and evaluation account after the service omitted the program from its original fiscal 2027 request.
The proposal took about $651 million from the Navy account that buys E-2D aircraft and $899 million from the Air Force’s other procurement account, then redirected the total to Air Force research and development. The House report said the Air Force share would come from the Special Update Program, a classified procurement line.
The justification in the amendments said the money would “deliver two E-7 Wedgetail prototype aircraft and continue Engineering Manufacturing and Development activities for a program of record.”
The Air Force already had seven E-7s under contract, including two rapid prototypes and five more added in a March contract modification. The aircraft are developmental, intended to validate the U.S. design before any production decision, which is why the funding was placed in research and development rather than procurement.
The committee cited the war in Iran in support of the program. “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. “As the E–3 is set to retire, the E–7 Wedgetail will serve as modern replacement for lost battle management capability.”
The panel supported the E-7 funding shift but rejected the proposed Navy offset. “While the committee wholly supports the E–7 program and funding realignment, the Committee also restored the E–2D program to six aircraft for fiscal year 2027,” the report said.
Lawmakers also directed the Air Force secretary to brief the House and Senate defense appropriations subcommittees with the fiscal 2028 budget request on “the full E–7 acquisition strategy, to include required quantity; funding requirements across the future years defense program; and schedules for development and production.”