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Contracts

Anduril warns budget delay will stall Fury production start next year

The short version

Anduril says it cannot begin building FQ-44 Fury drones under its June 2026 production contract until Congress passes a fiscal 2027 defense budget, expected in December at the earliest.

What happened

In June 2026, the Air Force awarded production contracts to Anduril and General Atomics to build the first batch of Collaborative Combat Aircraft (CCA), the autonomous jets designed to fly alongside crewed fighters. Anduril has already invested its own money in its Arsenal-1 factory near Columbus, Ohio, and begun buying long-lead components. However, the company cannot start actual production work without FY27 appropriations from Congress. A continuing resolution passed in September will fund the government at 2026 levels through December 11, and restricts the Defense Department from starting new programs. Erin Simpson, Anduril's vice president for strategy execution, told reporters at an aerospace conference that the company has "invested and gone as far as we can" but needs congressional funding to avoid a "cold start" in 2027. Simpson noted that if Congress delays a full budget beyond December, a funding exemption in another stopgap could allow work to begin.

Background

The Collaborative Combat Aircraft program aims to buy relatively affordable autonomous fighter-sized jets to operate alongside manned fighters such as the F-35. Anduril's FQ-44 Fury and General Atomics' FQ-42 were selected for Increment 1 production in 2026. Anduril is currently building prototype aircraft (YFQ-44) at Arsenal-1 and has completed live fire tests with air-to-air missiles, bombs, and other weapons. The Air Force expects 500 CCA drones to be in service by 2032, though neither the service nor the companies have disclosed how many aircraft are covered by the June production contracts.

What to watch next

Congress is expected to pass a fiscal 2027 defense budget by December 11, 2026, or potentially pass another continuing resolution. Anduril will await appropriations before starting production work. In the meantime, the company continues prototype testing at Creech Air Force Base in Nevada and is integrating additional weapons including guided bombs, cruise missiles, and rocket pods. Quarterback integration tests with F-35 fighters are expected within weeks or months.

Sources

Written by Anduril News with AI assistance from the original report and other coverage, in plain English. It can contain mistakes; check the original for anything important. How we write these.

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