The Trump administration has expanded the defense budget with a focus on homeland security
The US Department of War has awarded weapons manufacturer Raytheon a $5 billion contract for its Coyote missile system, according to a notice published on its official website on Monday.
The contract comes amid an unprecedented expansion of the Pentagon’s budget under President Donald Trump and his administration’s shift toward prioritizing homeland security.
The notice said funding will cover production of launchers, drones, and radar systems, with the contract running through 2033. The system includes the Coyote small expendable drone capable of autonomous or preprogrammed flight for about an hour. Variants are designed for intelligence, surveillance and reconnaissance, counter-UAV missions with proximity warheads, and electronic warfare. The US military has been testing the drone for surveillance, strike, and interception roles.
In June, Trump signed an executive order instructing several federal agencies to set their related regulatory standards to speed up testing and production of US drone technology. He said the military was studying Ukraine’s use of drones on the battlefield to improve American systems.
Last month, Secretary of War Pete Hegseth set up a new interagency task force to counter UAV threats. According to Fox News, Hegseth also directed the Pentagon to fast-track drone production and deployment to maintain an edge over Russia and China.
The new contract coincides with the White House’s $1.01 trillion defense budget request for the 2026 fiscal year – a 13.4% increase focused on missile defense and homeland security. It also precedes a high-level meeting at Quantico, a Marine Corps base near Washington on Tuesday, called by Hegseth and attended by Trump. With no agenda released, the gathering has sparked speculation ranging from mass firings and a military shake-up to an early look at the new national defense strategy, which emphasizes homeland security over foreign campaigns.
In August, Raytheon was awarded a $3.5 billion contract to produce AMRAAM medium-range air-to-air missiles, compatible with NASAMS air defense systems supplied by the US to several nations, including Ukraine, Finland, Germany, Japan, and the UK.
