How will the impending December 11 funding cliff reshape the military's modernization efforts and global operational readiness?

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The Dec. 11 deadline is likely to slow modernization more than day-to-day combat operations in the near term, but the longer the impasse lasts, the more readiness will erode through deferred maintenance, disrupted training, and procurement delays. Under the current continuing resolution, the Pentagon is generally stuck at FY2026 funding levels and cannot easily launch “new start” programs or raise production rates without special exceptions. That hits modernization hardest: programs tied to drones, hypersonics, missile defense, next-generation aircraft, shipbuilding, and Army aviation are vulnerable to delay. Reporting on FY2027 budget documents indicates more than 150 Pentagon new-start items could be affected. High-profile efforts such as Golden Dome, the Defense Autonomous Warfare Group, Collaborative Combat Aircraft, the Army’s MV-75, and some Navy shipbuilding plans face schedule pressure if Congress extends stopgap funding. Operational readiness is more insulated at first because military operations can continue under temporary funding, and the Pentagon can sometimes reprogram money. But service leaders have warned that this flexibility is limited. Frozen funding levels squeeze flying hours, depot maintenance, spare parts, munitions replenishment, military construction, and base sustainment. The Air Force has already said war-related costs are being absorbed inside existing accounts, which can crowd out readiness spending. A shutdown would be more disruptive. Essential…

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