Lockheed wins $35 billion THAAD interceptor contract

June 26, 2026

1–2 minutes

Summary

Lockheed Martin received a $35 billion-plus Pentagon contract to raise THAAD interceptor production to 400 a year.

Why this matters

The contract reflects a broader Pentagon effort to rebuild missile inventories and expand U.S. weapons production capacity. It also shows how multiyear contracts are being used to speed delivery of air-defense systems.

Lockheed Martin won a contract worth more than $35 billion to increase production of Terminal High Altitude Area Defense (THAAD) interceptors.

The seven-year contract, awarded by the U.S. Missile Defense Agency, will increase production from 96 to 400 interceptors a year, according to Lockheed Martin and Pentagon releases issued Wednesday.

The award came as U.S. lawmakers pushed for higher munitions procurement. The U.S. munitions stockpile has declined after the war in Iran and other conflicts, increasing pressure on defense contractors to produce more weapons as policymakers assess supplies of air-defense and precision-guided weapons.

A May report from the Center for Strategic and International Studies found that, while the U.S. had enough munitions for the Iran war, restoring stockpiles to pre-war levels would take at least three years, creating what the report called a “window of vulnerability” in a potential Western Pacific conflict.

“This new approach propels our efforts to strengthen the defense industrial base, expand production and deliver capabilities to the American warfighter at unprecedented speed and scale,” Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said in the company release.

The contract advanced a framework agreement reached in January between the Defense Department and Lockheed Martin.

To support higher production, Lockheed Martin broke ground in March on a new Munitions Production Center in Troy, Alabama, and in January on a new Munitions Acceleration Center in Camden, Arkansas. The projects are part of a $9 million investment through 2030 in weapons facilities across the country.

Work on the contract will be completed in Dallas; Sunnyvale, California; Troy; and Camden. Lockheed Martin will provide THAAD missile rounds under fixed-price contract line-item numbers from March 2026 through June 2032, the Pentagon said.

At the time of the award, more than $842 million in fiscal 2026 procurement funds was being obligated, according to the Pentagon.

This year, Lockheed Martin also reached agreements with the department to increase production of PAC-3 Missile Segment Enhancement interceptors and Precision Strike Missiles.

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Military & National Security

Pentagon drops commissary privatization plan

The department said “privatization would create an unacceptable risk to the readiness and well-being of service members and their families.”

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Defense officials will not turn commissary operations over to the private sector, the Pentagon’s top personnel official said Wednesday, after the department found no viable path to maintain required customer savings.

“We learned and found that there was nobody interested in taking a 24% haircut right out of the gate,” Anthony Tata, under secretary of defense for personnel and readiness, said at a meeting on Capitol Hill hosted by the American Logistics Association, a nonprofit trade group for military suppliers.

In September, the Pentagon issued a request for information seeking interest in operating 178 commissaries in the United States. The request followed an April 7, 2025, memorandum directing that functions not inherently governmental be prioritized for privatization, specifically including retail sales.

Tata said commissary prices drive shopper demand. “Families go there because they know they’re going to save 24%-plus,” he said. He added that officials were also working to improve the stores’ ease of use through technology and other tools.

In an April 3 letter to lawmakers, defense officials said they had decided not to pursue privatization of the military resale system, including commissaries, exchanges, and other retail outlets.

The letter, signed by Sean O’Keefe, deputy under secretary of defense for personnel and readiness, said the Pentagon’s analysis found that “the potential cost savings of privatization are unlikely to be realized without severely degrading the benefits these programs provide.” It also said a private operator would face challenges running stores profitably in remote, overseas, and low-volume locations, including naval vessels and forward-deployed sites, without government subsidies that would erase any taxpayer savings.

The Defense Commissary Agency operates 235 stores worldwide with about $1.5 billion in annual taxpayer funding. Shipboard and forward-deployed retail operations are run by military exchanges.

Eileen Huck of the National Military Family Association said the outcome was not surprising and cited commissaries’ role in savings and access to items such as Kosher, Halal, and special dietary foods in remote areas.

As the Pentagon shifts to improving efficiency, supply chain changes at the commissary agency have drawn concern from Tom Gordy of the Armed Forces Marketing Council, who said the plan could affect pricing and has not been fully analyzed.
\top\

DOT proposes easing brake-pedal rule for self-driving cars

The National Highway Traffic Safety Administration said removing requirements for parts such as brake pedals could allow companies to deploy autonomous vehicles more quickly.

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The Department of Transportation proposed changes to federal vehicle rules that would let companies omit brake pedals in vehicles “designed to be driven exclusively by automated driving systems.”

If adopted, the change would remove a regulatory hurdle for companies including Tesla and Zoox, which are developing vehicles intended to operate without a steering wheel or pedals. The public will have 30 days to comment before the department decides whether to approve the proposal.

The move follows other proposed changes to vehicle rules. Late last year, the National Highway Traffic Safety Administration proposed removing some Federal Motor Vehicle Safety Standards requirements for windshield wiping and defogging systems, and tire placards.

During President Joe Biden’s administration, the National Highway Traffic Safety Administration proposed and later finalized a rule allowing autonomous vehicles to operate without steering wheels.

Under current rules, companies developing autonomous vehicles without parts required by the Federal Motor Vehicle Safety Standards must seek exemptions from the federal government. Even when granted, those exemptions limit how many vehicles can operate on public roads.

“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” National Highway Traffic Safety Administration Administrator Jonathan Morrison said in a statement. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”

Tesla has spent the past several years developing a two-seat vehicle called the Cybercab, designed to operate without a steering wheel or pedals. The company has not applied for an exemption from standards requiring those controls. CEO Elon Musk has said Tesla would deploy the vehicles nationwide once it received regulatory approval.

Tesla has also operated a small robotaxi service in Austin, Texas, over the past year. It began with safety drivers in the front seats, then removed them, leaving the vehicles to operate unsupervised. Tesla told the National Highway Traffic Safety Administration it used teleoperators to monitor the vehicles and, in rare cases, move them remotely at low speeds after crashes or to avoid obstacles.

Zoox, owned by Amazon, received an exemption last year to demonstrate its purpose-built robotaxi. It later applied for another exemption to operate the vehicle commercially and is awaiting a decision. Companies such as Waymo, which use modified versions of standard vehicles such as the Jaguar I-Pace, have been able to deploy robotaxis without such limits because those vehicles retain manual controls.
Military & National Security

7 injured in fire aboard USS Indianapolis in Florida

The service members were released shortly after arriving at local hospitals and were cleared to return to the Indianapolis the same day.

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Seven crew members aboard the Freedom-variant littoral combat ship USS Indianapolis sustained minor injuries after a fire broke out Wednesday, the Navy said.

The fire was reported at 11:30 a.m. Eastern Standard Time while the ship was moored at Naval Station Mayport in Florida. Mayport Fire and Emergency Services responded and extinguished the fire.

“The cause of the incident is being reviewed,” a Navy spokesperson said.

Earlier this month, a fire broke out aboard the John Lewis-class fleet oiler USNS Harriet Tubman while it was under construction at the General Dynamics NASSCO shipyard in San Diego, California. That fire was extinguished with limited damage, and no injuries were reported.

In May, the U.S. Government Accountability Office reported that the Navy needed to do a better job of mitigating fire risks for ships during maintenance periods.

Between May 2008 and July 2020, there were 15 major fire incidents aboard Navy ships, 13 of them on ships undergoing maintenance.
US Politics

Commerce blocks Polestar from new U.S. EV sales

The decision followed the Trump administration’s approval, granted a few months earlier, allowing Volvo to sell vehicles in the U.S.

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Swedish electric vehicle manufacturer Polestar, which is owned by China’s Geely, said Thursday that it will no longer be able to sell new cars in the U.S. after the Department of Commerce declined to authorize the company’s request.

The decision was made under the administration’s “Connected Vehicle Rule,” which restricts sales of cars with Chinese software or hardware in the U.S. Polestar had sought a special authorization to continue selling its vehicles in the country.

Polestar said it will continue selling its existing U.S. inventory of Polestar 3 and Polestar 4 vehicles. It also said it will “continue to support customers, including providing access to its service network.”

In a press release, the company said 94% of its retail sales volume in the first quarter of 2026 came from markets outside the U.S. Polestar also said it is now “increasing its strategic focus on Europe.”
Parris Island lead

SC House blocks THC hemp limits, sales stay legal

Legislators generally agree to keep products away from children, but are divided over what adults should be allowed to buy.

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South Carolinians, including minors, can continue buying hemp products infused with THC after the General Assembly failed to agree on regulations for gummies and drinks sold in grocery stores, gas stations, restaurants, and vape shops.

The Senate passed a bill 27-11, but the House voted 69-28 on Thursday to reject a compromise measure that would have limited sales to adults 21 and older and set rules on which products could be sold and by whom.

The vote split Republicans. The 69 votes against the bill included 28 Democrats and 41 Republicans. No Democrats voted for the restrictions.

Lawmakers have debated hemp-derived THC products for the past two sessions after the 2018 federal farm bill effectively legalized them.

The House last year nearly unanimously passed a bill banning sales to anyone under 21. But some lawmakers said that did not go far enough.

House and Senate negotiators later removed penalties for driving under the influence of the products in an effort to reach a compromise. The final proposal would have limited legal products to beverages and gummies with no more than 10 milligrams of THC per serving and restricted most sales to liquor stores. Other retailers could have applied for a license to sell 12-ounce beverages with up to 5 milligrams of THC if the products were kept behind the counter. Restaurants would have been barred from selling them.

Senate Majority Leader Shane Massey, R-Edgefield, said he would have preferred a total ban, though he said that was not feasible in the Senate.

Opponents included lawmakers who said the bill would hurt small retailers by shifting sales to liquor stores. Rep. Greg Ford, R-Summerville, said the measure could force store closures because of location restrictions similar to those for beer and wine retailers. Rep. Gil Gatch, R-Summerville, said about 1,800 small businesses employing 3,500 people could have been affected.

Other opponents said they favored a total ban instead of regulation. Rep. John McCravy, R-Greenwood, said, “Once we pass this, it will be a flood. We’re going to be the dumping ground for these drinks.”

Supporters argued the bill would at least restrict youth access. House Judiciary Chairman Weston Newton, R-Bluffton, cited a letter from South Carolina Law Enforcement Division Chief Mark Keel that said, “Currently without regulation and dedicated resources, statewide enforcement of intoxicating THC products is virtually impossible. Posing a significant public safety risk, especially to our young people.”

With the bill defeated, no hemp-THC legislation appeared likely to pass this year. South Carolina now awaits whether federal rules reducing allowable THC content in hemp products will take effect in November.
North Carolina

N.C. deer rules change as CWD cases spread

The agency also changed statewide rules for disposing of deer carcasses.

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North Carolina deer hunters will face several changes this fall as wildlife officials expand efforts to limit the spread of Chronic Wasting Disease.

The N.C. Wildlife Resources Commission announced new regulations for the 2026-27 deer season that add hunting opportunities in areas where the disease has been confirmed.

A new special early season for antlered deer will be held Aug. 22-23 in CWD management areas, including Sampson and Cumberland counties. Hunters in the northwestern CWD management area will also have earlier blackpowder and gun seasons.

Hunters must also properly dispose of non-edible deer parts by taking them to a lined landfill, burying them at least 3 feet underground and away from water, or leaving them within the county where the deer was harvested.

Beginning July 1, landowners and hunters in CWD management and surveillance areas can apply for additional deer harvest tags through the state’s CWD Management Assistance Program.

Wildlife officials said the changes are intended to slow the spread of the disease while preserving hunting opportunities.

Since Chronic Wasting Disease was first detected in North Carolina in 2022, nearly 100,000 deer have been tested, and the disease has been confirmed in seven counties.

According to the Centers for Disease Control and Prevention, no cases of CWD infection in people have been reported. The CDC recommends that hunters do not eat meat from a deer that tests positive for the disease.
lejeune lead

Eastern Carolina expands license plate reader use

Data is checked against law enforcement lists for stolen vehicles, missing people, and felony warrants. The systems are not used for routine traffic enforcement.

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Automatic license plate reader cameras are expanding across North Carolina, including in Eastern Carolina, as local agencies spend public funds and grants on technology used in criminal investigations.

A News 12 review of public records, contracts, agency policies, and state documents found the cameras are used to photograph vehicles on public roads, capturing license plates and details such as make, model, and color.

Supporters said the cameras help recover stolen vehicles, locate missing people, and identify suspects. Privacy advocates said the growing network raises concerns about how vehicle data is collected, stored, and shared.

Flock Safety spokesperson Holly Beilin said the cameras photograph only the exterior of vehicles in public view and cannot see inside. She said, “There is no assumption of privacy in the exterior of a vehicle that’s in plain view.” According to Flock Safety, images are stored for 30 days by default unless preserved for an investigation, user searches are logged and audited, and the company does not sell customer data.

North Carolina law allows automatic license plate reader use for defined law enforcement purposes, including criminal investigations, missing-person cases, stolen-vehicle recovery, and felony warrant arrests. Agencies must adopt written policies on retention, sharing, training, security, and oversight. Captured data generally cannot be kept longer than 90 days, unless preserved for an active investigation.

Records reviewed by News 12 showed one Eastern Carolina sheriff’s office operated 30 cameras, including 28 fixed cameras and two mobile units, and spent more than $200,000 over two years. The Lenoir County Sheriff’s Office began using Flock cameras in September 2025 and operated 16 cameras, funded initially with federally seized funds and with annual costs of $48,000.

Plymouth approved a Flock contract in 2025 costing $61,250 a year through a public safety grant. Atlantic Beach approved a five-year, $11,125 contract in August 2025 for two Verkada cameras. Craven County officials said three Flock cameras remain in use at ABC stores in Vanceboro, Bridgeton, and Havelock, with no plans to expand.

The State Bureau of Investigation said 32 agencies requested 230 highway camera locations under a pilot program, and Director Chip Hawley recommended funding continue through 2028.
North Carolina

3 charged in Sara Graham case, including stepmother

Sara Graham was 18 when she was last seen alive in February 2015.

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More than 11 years after 18-year-old Sara Nicole Graham disappeared, the Robeson County Sheriff’s Office said Thursday that her stepmother and two other family members were arrested in connection with her death.

Connie Graham, of Fairmont, was charged with first-degree murder, altering, stealing or destroying criminal evidence, and two counts of felony conspiracy.

Bobby Matthew McLellan, of Lumberton, was charged with accessory after the fact, felony conspiracy, and altering, stealing or destroying criminal evidence.

Luke Locklear, of Lumberton, was charged with felony conspiracy and altering, stealing or destroying criminal evidence.

Sara Graham was 18 when she was last seen alive in February 2015. Investigators said they were not releasing additional details because the investigation and court proceedings were ongoing.

Sheriff Burnis Wilkins said the case had remained active despite the time that had passed.

“While some may have believed this case had gone cold, the reality is a case like this never leaves the minds of the investigators assigned to it,” Wilkins said. “We will not stop until we find her.”

Connie Graham was denied bond at her first court appearance Thursday. McLellan and Locklear were each being held on $1 million secured bonds.

Authorities said the investigation remained active. The Federal Bureau of Investigation was still offering a $5,000 reward for information leading to the location of Sara Graham’s body.
Hawaii, US

Supreme Court Voids Hawaii Gun-Carry Consent Law

Trump’s administration supported the appeal at the Supreme Court.

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The Supreme Court struck down a Hawaii law Thursday that required people to get permission before carrying guns into privately owned businesses and other properties open to the public.

In a 6-3 decision, the court said people may carry guns onto private property such as shopping malls, gas stations, stores, and hotels unless owners specifically prohibit firearms.

The ruling was a victory for President Donald Trump’s administration, which argued the 2023 law violated the Second Amendment. Hawaii said the measure was intended to let property owners decide whether to allow firearms on their property.

State lawmakers passed the law after a 2022 Supreme Court ruling that said the Second Amendment protects a broad right to carry guns in public. About four other states enacted similar laws, though similar default restrictions on guns in private businesses open to the public have also been blocked elsewhere.

The case was brought by the Hawaii Firearms Coalition and three Maui residents. A trial judge blocked the law, but an appeals court later allowed it to take effect.

Other Hawaii gun restrictions, including limits in parks, beaches, and restaurants that serve alcohol, were not part of this case, though they are being challenged in lower courts.

The Second Amendment Foundation praised the ruling. “This law was nothing more than a thinly veiled attempt to disarm peaceable citizens, and we’re grateful the Supreme Court saw through the ruse,” said Alan Gottlieb, its founder and executive vice president.

Everytown Law called the decision disappointing, but said property owners still can ban firearms by posting signs. “The Supreme Court may have changed the default rule, but it cannot take away a private property owner’s authority over their own land,” said Janet Carter, managing director of Second Amendment Litigation.

The decision followed another Second Amendment ruling this term in which the court said marijuana users cannot be completely barred from owning firearms. Since its 2022 ruling, the court has also struck down a ban on bump stocks, while upholding a federal gun law aimed at protecting domestic violence victims and regulations on ghost guns.
Hawaii

Hawaii hemp seller challenges state rules in court

The 2018 Farm Bill legalized hemp nationwide but also did not limit state regulation on hemp production.

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A Hawaii hemp retailer is suing to block state enforcement of hemp regulations that begin in earnest in July.

Lance Alyas, who owns four hemp dispensaries in Hawaii, argued that the state’s hemp laws violated federal constitutional and statutory law, including the Supremacy Clause, the Dormant Commerce Clause, and the Due Process Clause. He told Reason he was the target of “selective regulation” by officials who favor the medical marijuana industry.

Under Hawaii’s Act 269, passed in July 2025 and effective in January 2026, retailers and distributors of manufactured hemp products, including online and out-of-state sellers, must register with the state. The law also directed the Health Department and its Office of Medical Cannabis Control and Regulation to enforce existing hemp business rules, including registration and product compliance.

State officials gave businesses until July 1 to comply. After that, violations could bring fines of up to $10,000 for “each separate offense.” The Health Department, the attorney general, and law enforcement may also seize and destroy prohibited products.

Federal appeals courts in the 4th and 8th circuits have concluded the Farm Bill did not preempt state restrictions on hemp sales. The 9th U.S. Circuit Court of Appeals, which covers Hawaii, ruled in 2022 that hemp-derived delta-8 THC fit the federal definition of hemp if it contained less than 0.3% delta-9 THC, but that case addressed hemp’s legal definition, not specific state product restrictions.

Hawaii tightened its hemp rules after the Farm Bill. In 2021, the Health Department barred sales of many oral hemp products, including gummies, as well as cannabinoid-infused foods and beverages, vapes, hemp flower, and cigarettes. In 2022, the state banned delta-8 and delta-10 THC as ingredients. In 2024, it broadened its definition of total THC to include delta-8 THC.

Alyas had previously dismissed a lawsuit without prejudice in December. Judge Jill Otake wrote that Alyas and his legal team had already “taken numerous bites at this apple” and wasted the court’s and defense counsel’s time. The attorney general’s office said it “prevailed in the prior case” and moved to dismiss Alyas’ new request for a preliminary injunction. The court will consider both motions July 2.