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A $1.5 Trillion Defense Budget: Implications for the Air Force and Space Force

In early 2026, President Donald Trump publicly called for a dramatic increase in U.S. defense spending, proposing that the Pentagon’s budget reach $1.5 trillion in fiscal year 2027—up sharply from the roughly $901 billion appropriated for 2026. If enacted by Congress, this expansion would represent one of the largest defense spending increases in American history, with far-reaching implications for U.S. military capabilities and the broader defense industrial base.


At the core of the push for a $1.5 trillion defense budget is a desire to move beyond marginal annual increases toward a sustained and predictable defense investment trajectory. Retired Lt. Gen. David A. Deptula and other defense analysts have emphasized that a higher defense topline is not about maintaining the status quo. Rather, it creates room for meaningful, multi-year modernization of both the Air Force and the U.S. Space Force. At this scale, objectives once considered aspirational—such as reversing decades of underinvestment and expanding air and space power capacity—become achievable strategic priorities.


For companies operating in the space, RF, and defense technology sectors—such as Banc3—the implications of such a budget proposal are significant. A major increase in defense spending signals a shift in federal priorities toward advanced air and space capabilities, driving demand for next-generation sensors, analytic platforms, space situational awareness systems, and integrated mission software. These priorities closely align with Banc3’s core focus areas, where scalable software and RF/space solutions enable modern defense operations.


Under a $1.5 trillion defense budget, analysts estimate that the Department of the Air Force and Space Force could see substantial annual funding increases. This would create additional room for accelerated procurement, expanded satellite constellations, and enhanced data and analytics infrastructure. For companies delivering software platforms that support space situational awareness, RF spectrum operations, and command-and-control functions, this environment translates into larger program budgets, expanded contract opportunities, and more stable multi-year engagements with Department of Defense customers.

BANC3 SHIELD Program
BANC3 Awarded Defense Contract Supporting $151B Golden Dome SHIELD Program

FOR IMMEDIATE RELEASE

Princeton, NJ — January 13, 2026 — BANC3, Inc., a defense product company specializing in space spectrum surveillance, signal intelligence (SIGINT), and software-defined radio (SDR) systems, today announced its selection by the Missile Defense Agency (MDA) under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle issued pursuant to Solicitation HQ085925RE001. The award supports the Strategic Homeland Integrated Ecosystem for Layered Defense (SHIELD) program.


The SHIELD program represents a long-term, multi-award framework with a total program ceiling of up to $151 billion, focused on advancing next-generation missile defense architectures and space-domain protection capabilities.

Under this award, BANC3 will deliver advanced RF and spectrum technologies to support next-generation missile defense and space-domain missions. The effort leverages BANC3's proven expertise in wideband spectrum surveillance, high probability-of-intercept RF systems, and software-defined architectures to enhance detection, situational awareness, and resilience across contested operational environments.


The SHIELD program emphasizes the integration of sensing, communications, and command-and-control technologies to address evolving threats across air, space, and missile defense domains. BANC3's contribution centers on space-relevant spectrum awareness and RF processing technologies that enable real-time monitoring of complex electromagnetic environments while supporting secure and adaptable operations.

"This award reflects the Department of Defense's confidence in BANC3's ability to deliver mission-relevant spectrum and RF capabilities for some of the nation's most critical defense priorities," said Babu Cherukuri, CEO of BANC3. "SHIELD aligns directly with our core strengths in space spectrum surveillance and software-defined RF systems, and we are proud to support efforts that strengthen missile defense and space-domain protection."

This contract builds on BANC3's established track record of delivering wideband RF spectrum monitoring and SIGINT systems in support of national security missions, including space and launch-related operations. BANC3's modular, software-defined approach enables rapid evolution of capabilities as mission requirements and threat environments continue to change.

Why RF and Space Technologies Matter for National Security

Modern national security is shaped by forces most people never see. It's not just about ships, aircraft, or satellites in isolation. It’s about control of spectrum, secure communications, and resilient space systems that quietly enable every mission behind the scenes.


At BANC3, much of our work lives in these invisible domains. Radio frequency systems and space technologies form the backbone of how today’s defense operations communicate, sense, and respond. When these systems work, missions succeed. When they don’t, everything downstream is at risk.

Radio frequency spectrum has become one of the most contested environments in modern defense. Communications, radar, navigation, and sensing all depend on reliable access to RF. Adversaries understand this, which is why jamming, spoofing, and electromagnetic interference have become central elements of modern conflict. Maintaining awareness and control in the RF domain is no longer optional—it is foundational.

BANC3 supports defense and government customers by designing and integrating RF systems that perform in real operational conditions. The focus is not on theory or experimentation, but on deployable systems that help operators maintain situational awareness and connectivity in complex, contested environments. This work requires deep engineering discipline, practical systems thinking, and an understanding of how technology is actually used in the field.

Space has followed a similar trajectory. What was once a relatively permissive domain is now an operational one. Satellites underpin navigation, communications, intelligence, and missile warning, and disruptions in space can have immediate consequences across air, land, and sea. Ensuring resilience in space systems has become a national priority.


BANC3’s space-related work focuses on strengthening the connection between space assets and broader defense operations. That means supporting systems that improve awareness of the space environment, enhance the reliability of space-based communications, and integrate space capabilities more tightly with terrestrial and RF systems. The goal is continuity—making sure critical capabilities remain available even under pressure.


What defines today’s security challenges is not just advanced technology, but integration. RF systems, space platforms, software, and mission operations are deeply interconnected. Solutions that succeed are the ones designed with this reality in mind. BANC3 approaches its work as a systems integrator first, ensuring that technologies function together as part of a larger operational picture. Behind all of this are people. Engineers, operators, analysts, and decision-makers depend on systems that simply work when they are needed. BANC3’s role is to support them by delivering technology that is reliable, secure, and designed for real-world use, not demonstrations.


As national security challenges continue to evolve, the importance of RF and space technologies will only increase. The ability to operate across domains, adapt to new threats, and integrate emerging capabilities will define success. BANC3 is proud to contribute to that mission through disciplined engineering, long-term partnerships, and a focus on impact where it matters most.

About BANC3

Headquartered in Princeton, New Jersey, with operations in Los Angeles, California, BANC3, Inc. is a defense product company specializing in space spectrum surveillance, signal intelligence (SIGINT), software-defined radio (SDR) systems, and AI-driven operational products. BANC3 supports mission-critical operations across the U.S. Department of Defense, including the Missile Defense Agency (MDA), U.S. Army, Navy, Air Force, Space Force, and the National Reconnaissance Office (NRO).

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