Tokyo’s FY2026 Defence Budget Request Prioritises SHIELD Littoral Drone Network, F-35A/B Procurement and KC-46 Tankers
Tokyo’s FY2026 Defence Budget Request Prioritises SHIELD Littoral Drone Network, F-35A/B Procurement and KC-46 Tankers
Published:
September 6, 2025
/
Updated:
September 6, 2025
Defense Budgets / Policy
Peter Johansson
U.S. Air Force photo by Senior Airman Zachary Jakel
Japan’s defense ministry handed the finance ministry its fiscal-2026 request on 29 August, asking for a record ¥8.8 trillion (about $59.9 billion). If lawmakers sign off later this year, spending will climb roughly eight percent over the current budget and push Tokyo closer to its goal of devoting two percent of GDP to defense by 2027.
Defense officials link the increase to rapid military expansion by China, continued North Korean missile tests, and Russia’s stepped-up Pacific activity.
The submission outlines hundreds of individual projects, yet three themes stand out: uncrewed coastal defense, expanded airpower and longer-reach strike weapons.
Personnel and operating costs edge upward as well, but equipment modernisation drives most of the new money. Diet members will debate the package through the autumn before the finance ministry releases a consolidated draft budget in December.
Record 8.8 Trillion Yen Request Marks Steady Climb
Last year’s enacted defense budget came in at ¥8.1 trillion, itself a historic high. The fresh request widens the gap, adding ¥700 billion for hardware, construction and research while holding personnel growth to about three percent – defense officials confirm.
Roughly half the additional funds feed procurement, a quarter supports R&D, and the remainder covers infrastructure upgrades and maintenance.
Major FY-2026 line items:
¥1.4 trillion for stand-off and missile defense, including Aegis-system-equipped vessels and hypersonic interceptors
¥1.2 trillion for aircraft procurement, upgrades, and sustainment
¥876 billion for the SHIELD unmanned coastal network
¥520 billion for naval construction, covering one Taigei-class submarine and one New FFM multirole frigate
According to industry sources, shipbuilders and electronics houses expect another busy year as the ministry pushes suppliers to shorten lead times. Tokyo’s plan foresees total defense outlays of ¥43 trillion over the 2023-2027 window so the latest figure remains inside the multi-year cap.
SHIELD Drone Architecture Anchors Coastal Defense Plan
The headline project is SHIELD – Synchronized, Hybrid, Integrated and Enhanced Littoral Defense. Tokyo wants a mesh of air, surface, and undersea drones around the Nansei chain and other vulnerable straits.
The ministry set aside ¥128.7 billion to buy ship-launched UAVs, small carrier-borne reconnaissance drones, unmanned surface craft, and autonomous underwater vehicles. Early batches will operate from the twelve 1,900-ton offshore patrol vessels already on order for the Maritime Self-Defense Force.
Planners picture continuous ISR feeds flowing into a common maritime operations center, where AI-based tools cue missile batteries or crewed ships. A separate ¥2 billion tranche funds demonstrations in which a single operator controls swarms of mixed unmanned systems. The budget also commits ¥19 billion to continue refitting the helicopter carriers Izumo and Kaga with deck lights, thermal coatings and landing aids so they can host F-35Bs that will patrol alongside the new drones.
The littoral network complements fresh money for ground-based Type-12 surface-to-ship missiles. Tokyo intends to field the 1,000-kilometre upgrade a full year early, placing the first battery at Camp Kengun in Kumamoto by March 2026.
Defense officials say the extended-range weapon tightens coverage of the East China Sea’s critical sea lanes without relying on scarce fighter sorties.
More F-35S and KC-46S Extend Air Power Reach
The request seeks funding for nine additional F-35A conventional take-off fighters and three F-35B short-take-off jets, valued together at about ¥139 billion. Once these aircraft arrive, the Air Self-Defense Force will stand up its third frontline F-35A squadron, while a new 202 Squadron at Misawa will absorb the first F-35Bs.
The STOVL jets will split time between land bases and the modified Izumo-class ships, giving Japan a modest carrier-borne capability for the first time since World War II.
Tokyo ultimately plans for 105 F-35As and 42 F-35Bs. Deliveries so far have proceeded on schedule, though maintainers warn that depot capacity must expand once local heavy checks begin late next year. The budget sets aside ¥18 billion for parts warehouses and software labs near Komaki and Tsuiki air bases.
To keep the fighters fueled on long Pacific legs, the ministry wants two more Boeing KC-46A tankers. The pair would lift the fleet to eight and move the program halfway toward the U.S.-approved ceiling of 13 aircraft. Tanker crews report the Pegasus’s boom issues have eased after software updates, and service leaders judge the platform mature enough for steady acquisition.
Long Range Strike and Undersea Programs Broaden Deterrent
Missile work does not stop at the shoreline. Tokyo proposes ¥16.2 billion for a submarine-launched cruise missile under development with Mitsubishi Heavy Industries. Engineers aim for torpedo-tube compatibility with the Taigei-class fleet and a range comparable to the upgraded Type-12. Sea trials could start in 2027, early design notes indicate.
Surface ships receive attention as well. The request covers preparations for two Aegis-system-equipped vessels that replace the canceled land-based program, funds Tomahawk launch integration on two existing destroyers and orders another New FFM frigate with a 32-cell vertical launcher. Officials argue the mix creates overlapping layers that complicate any opponent’s targeting plan.
Undersea strength grows with the 10th Taigei-class boat. At ¥120 billion, the diesel-electric submarine features lithium-ion batteries for high-speed dashes and a silent-running permanent-magnet motor. Yard managers hint construction will take four years, matching the timeline of earlier hulls.
Our analysis shows that the dual push-long-range strike on and below the surface coupled with survivable uncrewed sensors-reflects a deliberate shift from purely defensive postures toward credible counterstrike capability. The change remains controversial at home. Polls show public backing near 60 percent when it’s described as deterrence rather than offense.
The finance ministry usually trims a few billion dollars from initial defense requests, but the core elements are expected to survive intact: SHIELD, fifth-generation fighters, and stand-off missiles.
After the draft budget appears in December, the Diet will debate specific line items through January and aim for passage before the new fiscal year opens on 1 April 2026.
REFERENCE SOURCES
https://www.mod.go.jp/j/budget/yosan_gaiyo/fy2026/yosan_20250829.pdf
https://x.com/ModJapan_jp/status/1961382444856479903
https://www.japantimes.co.jp/news/2025/08/29/japan/japan-defense-budget-drones/
https://mainichi.jp/english/articles/20250829/p2g/00m/0na/044000c
https://www.asahi.com/ajw/articles/15972610
https://www.nippon.com/en/news/yjj2025082900600/japan-seeks-record-defense-budget-of-8-8-t-yen-for-fy-2026.html
https://apnews.com/article/e9257a74ab740fb5c98c3acfb810fdf3
https://www.bloomberg.com/news/articles/2025-08-29/japan-eyes-drone-fleets-in-record-60b-defense-budget-proposal
https://www.stripes.com/theaters/asia_pacific/2025-08-29/japan-defense-spending-request-18913441.html
https://www.channelnewsasia.com/east-asia/japan-seeks-record-defence-budget-triple-drone-spending-5321916
https://www.navalnews.com/naval-news/2025/08/japan-requests-largest-ever-defense-budget-for-fiscal-year-2026/
https://breakingdefense.com/2025/08/japans-60-billion-defense-budget-request-seeks-funding-for-multilayered-coastal-defense-network-more-f-35s/
https://news.usni.org/2025/08/07/japan-receives-3-f-35b-lighting-ii-fighters-1-faces-delays
https://aviationweek.com/defense/aircraft-propulsion/japan-gets-f-35as-tr-3-upgrades
https://media.defense.gov/2024/Dec/12/2003610556/-1/-1/0/PRESS%20RELEASE%20-%20JAPAN%2024-91%20CN.PDF
https://www.navalnews.com/naval-news/2025/04/japan-starts-production-of-a-new-fleet-of-opv/
https://www.japantimes.co.jp/news/2025/04/15/japan/msdf-new-patrol-vessels/
https://www.mod.go.jp/en/d_act/d_budget/pdf/fy2025_20250411a.pdf
https://thediplomat.com/2025/08/japans-defense-ministry-requests-largest-ever-budget-for-fiscal-year-2026/
https://www.mod.go.jp/j/budget/yosan_gaiyo/fy2026/yosan_20250829_summary.pdf
The post Tokyo’s FY2026 Defence Budget Request Prioritises SHIELD Littoral Drone Network, F-35A/B Procurement and KC-46 Tankers appeared first on defense-aerospace.
Japan’s defense ministry handed the finance ministry its fiscal-2026 request on 29 August, asking for a record ¥8.8 trillion (about $59.9 billion). If lawmakers sign off later this year, spending will climb roughly eight percent over the current budget and push Tokyo closer to its goal of devoting two percent of GDP to defense by 2027.
The post Tokyo’s FY2026 Defence Budget Request Prioritises SHIELD Littoral Drone Network, F-35A/B Procurement and KC-46 Tankers appeared first on defense-aerospace.
