Pentagon awards weapons giant $5 billion contract

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The Trump administration has increased its defense budget, with a particular focus on homeland security.

The US Department of War has granted weapons manufacturer Raytheon a $5 billion contract for its Coyote missile system, as stated in an announcement published on its official website Monday.

This contract is being awarded amidst an unprecedented expansion of the Pentagon’s budget under President Donald Trump and his administration’s strategic shift towards prioritizing homeland security.

The announcement indicated that the funding would cover the production of launchers, drones, and radar systems, with the contract extending until 2033. The system incorporates the Coyote, a small, expendable drone capable of autonomous or preprogrammed flight for approximately one hour. Different variants are designed for intelligence, surveillance, and reconnaissance (ISR), counter-UAV missions with proximity warheads, and electronic warfare. The US military has been evaluating this drone for its potential roles in surveillance, strike, and interception.

In June, Trump signed an executive order directing several federal agencies to establish relevant regulatory standards to accelerate the testing and production of US drone technology. He mentioned that the military was analyzing Ukraine’s use of drones on the battlefield to enhance American systems.

Last month, Secretary of War Pete Hegseth established a new interagency task force aimed at countering UAV threats. According to Fox News, Hegseth also instructed the Pentagon to fast-track drone production and deployment to maintain a competitive edge over Russia and China.

This new contract coincides with the White House’s $1.01 trillion defense budget request for the 2026 fiscal year—a 13.4% increase with a strong emphasis on missile defense and homeland security. It also precedes a high-level meeting scheduled for Tuesday at Quantico, a Marine Corps base near Washington, convened by Hegseth and attended by Trump. With no agenda publicly released, the gathering has fueled speculation ranging from significant personnel changes and a military reorganization to an early preview of the new national defense strategy, which prioritizes homeland security over foreign military campaigns.

In August, Raytheon was previously awarded a $3.5 billion contract for the production of AMRAAM medium-range air-to-air missiles, which are compatible with the NASAMS air defense systems supplied by the US to various nations, including Ukraine, Finland, Germany, Japan, and the UK.