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Fiscal Receipts

THAAD

MDAProcurementPartial ReconciliationMD07
What it is
THAAD — a procurement program run by MDA.
What changed
No FY25→26 comparison — trajectory data incomplete for this line.
Who gets it
No award linkage at high confidence.

Budget Figures

FY24 Actuals
$216.8M
FY25 Total
FY26 Request
$840.1M
FY25→26 Change
Budget Trajectory
FY24: $216.8MFY26: $840.1MFY24FY26
FY24
$216.8M
FY26
$840.1M

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 →

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 326 programs — the top-50 programs by FY2026 request, ranked by dollar value. why →

What it is

  • THAAD stands for Terminal High Altitude Area Defense, a missile-defense system managed by the Missile Defense Agency (MDA) whose procurement is funded through the Procurement, Defense-Wide account.
  • THAAD is an element of the Terminal Defense Segment (TDS) of the Missile Defense System, designed to engage ballistic targets in the late mid-course and terminal phases of their trajectory.
  • The THAAD system is comprised of five major components: Interceptors, Launchers, the Army Navy/Transportable Radar Surveillance and Control (AN/TPY-2) radar, the THAAD Fire Control and Communication Tactical Station Group, and Peculiar Support Equipment including a Missile Round Pallet Transportable.
  • The AN/TPY-2 radar is a surveillance and targeting sensor that provides data to the THAAD system to execute intercept missions.
  • The fiscal year (FY) 2026 request for THAAD Procurement includes $523.1 million of discretionary funding and $317.0 million of mandatory (reconciliation) funding, for a total of $840.1 million.
  • The total FY 2026 procurement quantity of 37 consists of 25 THAAD Interceptors funded with discretionary funds and 12 THAAD Interceptors funded with mandatory (reconciliation) funds.
  • The 37 THAAD Interceptors are to be combined with Lots 16 (FY 2024) and 17 (FY 2025) in a single contract award, with an estimated unit cost of $12.4 million.

Why it matters

  • Total THAAD procurement funding is scheduled to rise sharply, from $216.8 million in FY 2024 actuals to $840.1 million in the FY 2026 total request — roughly a fourfold increase.
  • The FY 2026 total request of $840,125 thousand (about $840.1 million) is the headline figure for this program year.
  • Between the FY 2025 enacted level of $247.0 million and the FY 2026 request, the discretionary portion increase funds additional THAAD Interceptors, growing the quantity from 12 in FY 2025 to 25 in FY 2026.
  • The FY 2026 discretionary increase also provides critical Interceptor Obsolescence mitigation, THAAD Battery Ground Component Obsolescence modifications, and the Stockpile Reliability Program.
  • MDA states it has successfully used a 'synergy' lot buy approach — awarding a contract with an option for the following fiscal year's funding — to achieve material-cost savings across multiple years, yielding a higher interceptor quantity at a lower average unit price than separate lot buys.
  • Interceptor unit costs are driven by the small production quantity, an acquisition strategy meant to minimize supplier production gaps, and the absence of Foreign Military Sales interceptor procurements that could otherwise reduce unit cost.

Key players

  • The program is managed by the Missile Defense Agency (MDA).

Budget Line Items(workbook-cited)

Exhibit P-1

AccountOrgTypeAmount
Procurement, Defense-WideMDAFY24 Actuals$216.8M
Procurement, Defense-WideMDAFY25 Enacted$247.0M
Procurement, Defense-WideMDAFY26 Disc. Request$523.1M
Procurement, Defense-WideMDAFY26 Reconciliation$317.0M
Procurement, Defense-WideMDAFY26 Total$840.1M

Budget Details(R-2/P-40 facts)

ProjectAll Prior YearsFY24 ActualsFY25 TotalFY26 BaseFY26 Request
Program Element$7.91B$216.8M$247.0M$523.1M$523.1M

Program Narratives

DescriptionTHAAD

The fiscal year (FY) 2026 request for Terminal High Altitude Area Defense (THAAD) Procurement includes $523.1 million of discretionary and $317.0 million of mandatory (reconciliation) for a total of $840.1 million. The total procurement quantity of 37 consists of: - 25 THAAD Interceptors funded with the discretionary funds. - 12 THAAD Interceptors funded with the mandatory (reconciliation) funds. The 37 THAAD Interceptors will be synergized with Lots 16 (FY 2024) and 17 (FY 2025) in a single contract award with an estimated unit cost of $12.4 million. Further information for this reconciliation request is provided in Section 20003 (Missile Defense) of the Reconciliation Exhibit. THAAD is an element of the Terminal Defense Segment (TDS) of the Missile Defense System. THAAD enhances the TDS by deepening, complementing, and extending the Missile Defense System battlespace and capability to engage ballistic targets in the late mid-course and terminal phases of their trajectory. THAAD Army Navy / Transportable Radar Surveillance and Control (AN/TPY-2) radar is a surveillance and targeting sensor providing data to the THAAD system to execute intercept missions. The THAAD system, in conjunction with the fielded Phased Array Tracking Radar to Intercept on Target system, provides the TDS for the Missile Defense Agency objective of enhancing the Missile Defense System capability. The THAAD system is comprised of five (5) major components: Interceptors, Launchers, AN/TPY-2 Radar, THAAD Fire Control and Communication Tactical Station Group, and Peculiar Support Equipment including Missile Round Pallet Transportable.

JustificationTHAAD

The FY 2026 request for THAAD Procurement includes $523.1 million of discretionary and $317.0 million of mandatory (reconciliation) for a total of $840.1 million. The total procurement quantity of 37 consists of: - 25 THAAD Interceptors funded with the discretionary funds. - 12 THAAD Interceptors funded with the mandatory (reconciliation) funds. The 37 THAAD Interceptors will be synergized with Lots 16 (FY 2024) and 17 (FY 2025) in a single contract award with an estimated unit cost of $12.4 million. Further information for this reconciliation request is provided in Section 20003 (Missile Defense) of the Reconciliation Exhibit. Increase in discretionary from FY 2025 to FY 2026 provides additional THAAD Interceptors from quantity twelve (12) in FY 2025 to twenty-five (25) in FY 2026. Increase also provides critical Interceptor Obsolescence mitigation, THAAD Battery Ground Component Obsolescence modifications, and the Stockpile Reliability Program. MDA has successfully used a "synergy" lot buy approach to THAAD Interceptor procurement. This approach entailed awarding a contract that included an option for the following FY funding. By utilizing this approach, MDA achieved savings in material costs in multiple FYs. This resulted in a higher Interceptor quantity buy at a lower average unit price than if the lot buys were not combined. Interceptor unit costs are heavily dependent on the total quantity being procured in a specific buy and inflation rates. The THAAD Interceptor unit cost is driven by a combination of factors including the production of a small quantity of units; the current acquisition strategy to minimize supplier production gaps; and the absence of Foreign Military Sales Interceptor procurements to synergize and reduce unit cost. "Procurement Quantity" and "Flyaway Unit Cost" above represent interceptors only, but the "Net Procurement" cost above includes the costs of all hardware. Prior FYs funding included procurement of ground components, which affected the "Gross Weapon System Unit Cost".

No follow-the-dollar view — this program's awards haven't been crosswalked at high confidence (flows cover 17 of 326 programs). why →

Primary Sources