Printed from https://fiscalreceipts.com/program/0603342D8Z/ — data as of July 2, 2026. Every figure is citation-backed; see the page online for per-number provenance.
Defense Innovation Unit (DIU)
Budget Figures
- FY24
- $218.6M
- FY25
- $199.7M
- FY26
- $661.2M
FY2026 award data is a partial year — USASpending awards are reported on a rolling basis and the fiscal year does not close until September 30. why partial FY2026 data? →
Program dossier
Every sentence below carries its citation — warehouse figures open the citation panel, news claims link the cached source.
Research dossiers exist for 50 of 462 programs — the 50 largest fully J-book-detailed programs by FY2026 request. why no dossier here? →
What it is
- The Defense Innovation Unit (DIU) is an organization within the Office of the Secretary of Defense (OSD) whose mission is to increase the Department of Defense's access to commercial technologies and talent, with the goal of fielding technology at a pace that effectively deters adversaries.
- DIU acts as a bridge between U.S. military missions and companies developing cutting-edge, commercially derived technology, with offices in Silicon Valley, Boston, Austin, Chicago, and the Pentagon.
- DIU continuously experiments with ways to identify, contract, prototype, and transition commercial solutions to meet critical operational capability gaps, with the end goal of accelerating DoD adoption of cutting-edge technology and growing the national security innovation base.
- DIU focuses on seven technology areas where commercial industry is the lead: Artificial Intelligence (AI)/Machine Learning (ML), Autonomy, Cyber, Energy, Human Systems, Space, and Emerging Technology (including quantum, hypersonics, and advanced materials).
- DIU notes that progress in 11 of the 14 critical technology areas identified by the Undersecretary of Defense for Research and Engineering is primarily led by the commercial sector.
- The program's budget falls under the Research, Development, Test and Evaluation, Defense-Wide account.
Why it matters
- DIU's portfolio spans multiple domains, including a Defense Advanced Battery Supply Chain program that aims to reduce U.S. military dependency on China and other foreign sources for batteries, since China dominates the market for active electrode materials and most high-volume lithium-ion cell manufacturing.
- The Tactical Vehicle Hybridization project seeks to reduce fuel use by roughly 40% and reduce resupply convoys, with an estimated combat return on investment of less than one month.
- The HyTEC (Hydrogen at the Tactical Edge of Contested-Logistics) program aims to enable onsite fuel production, reducing the demand for complex fuel logistics supply chains, particularly in contested environments.
- The Synthetic Fuels for Contested Environments project aims to create a rapidly deployable synthetic fuel production system to produce just-in-time fuel at the edge, mitigating the impact of fuel logistics disruption.
- The Defense Innovation OnRamp Hubs projects are intended to expand the national security innovation base by bringing in companies and talent that would not normally interact with the DoD.
- DIU's mission is framed as central to countering the pacing challenge of China and implementing the National Defense Strategy by leveraging commercial technology with speed and scale.
Key players
- For the Tactical Vehicle Hybridization effort, the FMTV (Family of Medium Tactical Vehicles) kit was developed by Shyft Group subsidiary Blue Arc EV, and the LVSR (Logistics Vehicle System Replacement) kit was developed by Blackburn Energy.
- The Defense Advanced Battery Supply Chain program lists partners including OASD (A&S) IBAS, DEVCOM GVSC, NAVSEA05 Battery Safety, AVMC, NAWCAD, AFMC, DON-OE/OPNAV N94, PEO Ships, and PMS 500.
- The Synthetic Fuels for Contested Environments effort lists partners including AFRL & TCO, DOE, OECIF, U.S. Army OCE, the U.S. Army Corps of Engineers, NORTHCOM, SOUTHCOM, CENTCOM, TRANSCOM, PEO CS&CSS, and PEO SOFSA.
Budget Line Items(workbook-cited)
Exhibit R-1
| Account | Org | Type | Amount |
|---|---|---|---|
| Research, Development, Test and Evaluation, Defense-Wide | OSD | FY24 Actuals | $218.6M |
| Research, Development, Test and Evaluation, Defense-Wide | OSD | FY25 Enacted | $199.7M |
| Research, Development, Test and Evaluation, Defense-Wide | OSD | FY25 Total | $199.7M |
| Research, Development, Test and Evaluation, Defense-Wide | OSD | FY26 Reconciliation | $661.2M |
| Research, Development, Test and Evaluation, Defense-Wide | OSD | FY26 Total | $661.2M |
Budget Details(R-2/P-40 facts)
| Project | All Prior Years | FY24 Actuals | FY25 Total | FY26 Base | FY26 Request |
|---|---|---|---|---|---|
| 490: Hypersonic unmanned wingman | $0 | $8.74M | $0 | $0 | $0 |
| 488: Reusable hypersonic technology | $0 | $8.71M | $0 | $0 | $0 |
| 487: Nuclear advanced propulsion and power | $0 | $2.18M | $0 | $0 | $0 |
| 486: Industrial_foreign_influence | $0 | $6.97M | $0 | $0 | $0 |
| 483: Innovation with academia | $0 | $13.1M | $0 | $0 | $0 |
| 482: Defense Innovation Onramp Hubs Expansion | $0 | $8.71M | $0 | $0 | $0 |
| 481: Defense Innovation OnRamp Hubs | $0 | $56.6M | $0 | $0 | $0 |
| 480: Hydrogen at the Tactical Edge of Contested-Logistics (HyTEC) | $0 | $4.35M | $0 | $0 | $0 |
| 479: Synthetic Fuels for Contested Environments | $0 | $4.35M | $0 | $0 | $0 |
| 478: Tactical Vehicle Hybridization | $0 | $8.71M | $0 | $0 | $0 |
| 475: Defense Advanced Battery Supply Chain | $0 | $41.8M | $0 | $0 | $0 |
| 474: DIU | $0 | $28.5M | $199.7M | $2.55M | $2.55M |
| Program Element | $167.9M | $218.6M | $199.7M | $2.55M | $2.55M |
| 434: DIU | $167.9M | $25.9M | $0 | $0 | $0 |
Program Narratives
Mission— DIU
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Tactical Vehicle Hybridization
Objective: TVH is a non-propulsive system that utilizes standard 6TE batteries to store 'excess' energy from the vehicle's diesel engine to power vital combat systems. It directly enables greater operational reach by extending the time and distance tactical vehicles can operate; saving lives and money by reducing fuel use (~40%) and reducing resupply convoys. In combat scenarios the Return On Investment is estimated to be less than 1 month. Approach: FMTV (Family of Medium Tactical Vehicles) vehicle platform Developed by Shyft Group subsidiary Blue Arc EV, this kit uses an upgraded alternator to harvest energy from the rotating engine, to power native vehicle functions as usual, while also directing energy to 3x 6T li-ion batteries for use when the engine is off. LVSR (Logistics Vehicle System Replacement) vehicle platform Developed by Blackburn Energy, this kit adds a belt to the driveline to harvest the kinetic energy of the spinning shaft, thereby taking advantage of the efficiency gain behind the transmission. Energy is then directed towards up to 6x 6T li-ion batteries.
Mission— Defense Advanced Battery Supply Chain
Problem: DoD is vulnerable to an adversarial battery supply chain, as China dominates the market for active electrode materials and most high-volume Li-ion cell manufacturing today. Solution: Leverage commercial energy storage technology to maximize DoD energy resilience. Standardize battery form-factors with regard to use-case and platform performance reqs to lower qualification, procurement and sustainment costs. Onshore and scale domestic/Allied battery cell production in the 10s-100s of MWh/yr, aligning baseline performance profiles of unmanned systems with commercial market Partners: OASD (A&S) IBAS,DEVCOM GVSC,NAVSEA05 Battery Safety,DEVCON - GVSC, AVMC,NAWCAD,AFMC,OSC,DON-OE/OPNAV N94,PEO Ships,PMS 500
Mission— DIU
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's interim 2026 National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Defense Innovation Unit (DIU)
On April 4, 2023, the Secretary of Defense elevated DIU as a direct report, placing the Defense Innovation Unit (DIU) under the Secretary’s authority, direction and control and provided guidance on DIU’s reporting and management structure. This change significantly increased the scope and scale of DIU’s responsibilities and authorities as reflected in the DIU 3.0 strategy. In the National Defense Authorization Act of Fiscal Year 2026, Congress elevated DIU as a Principal Staff Assistant (PSA) to the Secretary of Defense, codifying DIU as the DoD's innovation organization and advisor to the SECDEF and DEPSECDEF, and supports the Department's initiatives to build enduring advantages across the defense ecosystem - the Department of Defense, the defense industrial base, and the array of private sector enterprises and academia that create and sharpen the Joint Force’s technological edge, with a focus on innovation and rapid adjustment to new strategic demands. The DIU mission is to strengthen U.S. national security by accelerating the adoption of commercial technology throughout the military and growing the national security innovation base. DIU partners with organizations across the DoD and the interagency to rapidly prototype, field, and scale commercially derived solutions to meet the most critical operational capability gaps identified by the Department with the focus, speed, and scale required to help deter major conflict and win if forced to fight. With offices in Silicon Valley, Boston, Austin, Chicago, and the Pentagon, DIU is able to attract the best and brightest talent and cutting-edge solutions. For the Department of Defense (DoD) to effectively implement the NDS and counter the pacing challenge of China while simultaneously addressing the other strategic threats facing the nation, it must leverage commercial technology with the focus, speed, and scale necessary to deter major conflict and win if forced to fight. The Secretary of Defense’s decision to realign DIU as a direct report and empower it to provide leadership, namely through serving as the Advisor to the Secretary on commercial technology innovation and chairing the Deputy’s Innovation Working Group is a reflection of this imperative. Spurred by trillions of dollars of private investment, innovation in many critical areas of technology central to military power is proceeding at a much faster rate in the private sector than in the traditional defense sector. Progress in 11 of the 14 critical technology areas identified by the Undersecretary of Defense for Research and Engineering (R&E) is primarily led by the commercial sector, with the most cutting-edge technology more likely to occur in its research and development pathways, tested and refined through its relentless market-driven requirements. DIU strengthens the Department’s ability to rapidly prototype, acquire and field commercial technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Working across the country, and in collaboration with our allies and partners, DIU is developing new ways of doing business, growing our national security innovation base to include more "non-traditional" companies that had previously not collaborated with the military, working with traditional vendors in novel ways to increase efficiency and efficacy, and challenging innovators to share their knowledge and expertise in support of our nation's defense. Through a competitive prototype process, DIU identifies and provides access to technology companies and products on behalf of DoD partners. Additionally, DIU executes projects to leverage commercial sector technology analogous to military applications thereby increasing dual-use technology agility for the DoD. DIU funds facilitate the award of projects that can augment commercial technologies, existing government-owned capabilities, or concepts for defense application. DIU focuses on seven technology areas where commercial industry is the lead: • Artificial Intelligence (AI)/ Machine Learning (ML) – Applying AI/ML learning to accelerate critical decision making and operational impact. • Autonomy – Adopting and countering autonomous systems with a focus on human-machine interaction and scalable teaming. • Cyber – Making enterprise combat information open, accessible, and secure for defense personnel across the globe. • Energy – Leveraging proven advancement in energy and materials technology to enhance capabilities and strengthen resilience across installation and distributed operations. • Human Systems – Optimizing the human system and its enabling platforms through enhanced equipment, innovative training, and novel health applications. • Space – Developing on-demand access to space, persistent satellite capabilities, and broadband space data transfer. • Emerging Technology - Focused on developing and delivering innovative quantum applications, hypersonics capabilities, and advanced material solutions.
Mission— Hypersonic unmanned wingman
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Reusable hypersonic technology
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Nuclear advanced propulsion and power
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Industrial_foreign_influence
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Innovation with academia
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Defense Innovation Onramp Hubs Expansion
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Defense Innovation OnRamp Hubs
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Hydrogen at the Tactical Edge of Contested-Logistics (HyTEC)
DIU increases the Department's access to commercial technologies and talent, with the ultimate goal of fielding technology at a pace that effectively deters our adversaries and helps ensure victory if we are forced to fight. Consistent with the Administration's 2026 interim National Defense Strategy and the National Defense Science and Technology Strategy, this new era of competition requires technological superiority to ensure the United States’ ability to project power, maintain international norms and rule of law, provide credible deterrence, and prevail in conflict.
Mission— Synthetic Fuels for Contested Environments
Problem: Defense fuel / operational energy logistics are reliant on the global energy supply chain, which is easily disruptible. Current transport means are costly, inefficient, slow, and vulnerable to attack. Solution: Obtain ASTM and TRIPOL certified synthetic diesel and jet fuels and mass produce them in both installation and mobile systems Partners: AFRL & TCO , DOE, OECIF, US Army OCE (SMR Integration), USA Corps of Engineers, NORTHCOM / SOUTHCOM / CENTCOM / TRANSCOM, PEO CS&CSS, PEO SOFSA
Accomplishments & Planned Programs (13)
Tactical_Veh_Hybridization
Liquid fuels create battlefield logistics challenges and do not inherently support future operational requirements. However, fully electric tactical vehicles present their own battlefield logistics challenges, making quick conversion to pure-electric impractical. Further hybridizing vehicles is a critical step in the transition to an all-electric tactical fleet. By integrating commercial technologies on hybrid power systems, battery integration, and auxiliary power units, the DoD can speed up transition to electric by years. This funding will expand on the Tactical Vehicle Hybridization project launched by DIU in FY 2022 on behalf of the Army and the Marines. This funding will enable the commercial vendors to expand capabilities to the powertrain, allowing full hybrid options and expand the capabilities to the remaining variants of Tactical Vehicles.
Defense Advanced Battery Supply Chain
DoD's low-demand signal and complex specifications for batteries make it difficult to engage with high-volume automotive battery suppliers. This typically results in the use of bespoke, inferior, and expensive batteries for military applications. The Defense Advanced Battery Supply Chain program currently encompasses both the Jumpstart for Advanced Battery Standardization (JABS) project and Family of Advanced Standard Battery (FAStBat) projects. The JABS project is advancing and assessing battery modules using novel commercial technology in various DoD platforms to achieve standardization of commercial EV batteries. This will allow for a more resilient supply as well as state-of-the-art battery systems for DoD platforms. The FAStBat project will prototype, test, and transition standardized battery families with completed Performance Specifications (MIL-PRFs) into their respective active Programs of Record. Both projects emphasize domestic onshoring while scaling battery production in the United States and reducing dependency on China and other foreign sources. These prototypes will assess and strengthen the manufacturing and supply chain resiliency of advanced batteries from domestic producers; accelerate efforts to partner with domestic battery producers targeting the commercial market for standardization and certification; align defense and Defense Industrial Base to commercial advanced battery development and production; address supply chain challenges for the use of commercial batteries. This funding supports the onshoring of domestic manufacturing, production, and standardization of advanced batteries at the raw material, battery cell, and module levels.
Defense Innovation Unit (DIU)
The U.S. DoD relies on innovation to maintain our nation's ability to deter, and if need be, prevail in conflict. With Silicon Valley, Boston, Austin, Chicago, and the Pentagon, DIU serves as a bridge between those in the U.S. Military executing national security and defense missions with companies developing cutting-edge commercially derived technology. DIU continuously experiments with methods to identify, contract, prototype, and transition novel commercial solutions from leading companies to meet the most critical operational capability gaps identified by the Department with the focus, speed, and scale required to help deter major conflict and win if forced to fight. The end goal is to accelerate DoD adoption of cutting-edge technology and grow the national security innovation base to support U.S. military-technical superiority.
Defense Innovation Unit (DIU)
The U.S. DoD relies on innovation to maintain our nation's ability to deter, and if need be, prevail in conflict. With Silicon Valley, Boston, Austin, Chicago, and the Pentagon, DIU serves as a bridge between those in the U.S. Military executing national security and defense missions with companies developing cutting-edge commercially derived technology. DIU continuously experiments with methods to identify, contract, prototype, and transition novel commercial solutions from leading companies to meet the most critical operational capability gaps identified by the Department with the focus, speed, and scale required to help deter major conflict and win if forced to fight. The end goal is to accelerate DoD adoption of cutting-edge technology and grow the national security innovation base to support U.S. military-technical superiority.
Hypersonic unmanned wingman
DIU efforts will support low cost, dual RAM jet experimental cruise vehicle. Includes flight certification, captive carry, release flight testing, and propulsion/outer mold lining test and evaluation.
Reusable hypersonic technology
DIU will build on hypersonic engine development and modification allowing turbine to Ramjet operation and results in a recurring, low-cost hypersonic platform. Delivery of the first dual-use reusable air platform that can transition from traditional turbine propulsion to dual mode ramjet hypersonics.
Nuclear advanced propulsion and power
DIU plans will prototype in Cobalt-60 based Radioisotope Power system for high power spacecrafts.
Industrial_foreign_influence
DIU is the lead execution arm for this effort, which could lead to multiple transition partners across the inter-agency, the Services, Combatant Commands, OSD, and intelligence community. DIU plans to increase and renew licenses, logins, subscriptions for commercial intelligence platforms and tools via existing contracts.
Innovation with academia
Innovation with academia will substantially support regional innovation efforts at academia, and allow for new entrants into the National Security Innovation Base (NSIB)
Onramp_Hubs_Expansion
Defense Innovation Onramp Hubs Expansion will provide funding for additional OnRamp Hubs opened in critical areas across the country. This will help expand the NSIB by bringing in companies and talent that would not have normally interacted with the DoD.
Onramp_Hubs
Defense Innovation OnRamp Hubs scales up the ability for industry, academia, and venture to collaborate with DoD in areas that have typically not been reached out to by the DoD.
Hydrogen at the Tactical Edge of Contested-Logistics (HyTEC)
Fuel supply chains are vulnerable to disruption and an energy dense alternative fuel is necessary to sustain operational capabilities and improve energy resilience. The DoD anticipates operating in austere, remote locations where efficient storage and use of energy will play a vital role in military operations. The Joint Force requires the capability to preposition, create, and distribute Operational Energy to the last tactical mile above and beyond the current inventory of legacy energy delivery platforms. Additionally, DoD lacks a systems-integrated solution that can provide energy generation and storage untethered from the larger logistics supply chain. The HyTEC program represents a solution to those DoD problems. Hydrogen technologies are commercially available in every stage of the hydrogen supply chain at high TRL, which would allow for onsite fuel production thereby reducing the demand for complex fuel logistics supply chains, particularly in contested environments.
Syn_Fuels_Contested_Env
The DoD lacks an ability to generate liquid fuel on-site. Defense fuel logistics are reliant on the global energy supply chain, which is easily disrupted. Current transport means are costly, inefficient, slow, and vulnerable to attack. Simultaneously, our fuel source is dependent on carbon-intense commercially procured fuel market. By creating a highly-agile, rapidly-deployable synthetic fuel production system (leave-behind or onboard) that could be dispersed throughout any area of responsibility (AOR) to produce just-in-time fuel at the edge, the DoD can mitigate the impact of fuel logistics disruption.
No follow-the-dollar view — this program's awards haven't been crosswalked at high confidence (flows cover 17 of 462 programs). why coverage is partial? →