Defense News Digest: August 2025

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IDGA Editor
09/02/2025

Welcome to IDGA’s weekly news roundup. For over two decades, the Institute for Defense and Government Advancement has organized conferences designed to further the national security objectives of the current administration and to facilitate the acquisition priorities of the DoD, DHS, and other federal agencies. Now, through this weekly series, we look to educate the community on the latest research, program updates and news in the defense and government sector.

This month we will examine five stories, some of which you might have missed, including a shakeup at the Defense Innovation Unit, a new air and missile defense strategy, and more.

Army explores unmanned Infantry Support Vehicles

The U.S. Army has awarded $15.5 million in prototype contracts to Forterra, Overland AI, and Scout AI to integrate commercial autonomy solutions into Infantry Support Vehicles (ISVs). The initiative, part of the service’s Unmanned Systems (UxS) autonomy effort, aims to assess whether autonomous ISVs can deliver operational value to soldiers in the field.

Demonstrations are slated for May 2026, with soldiers from the 3rd Brigade, 10th Mountain Division conducting six months of testing, including a Combat Training Center rotation. Leaders say the results will help shape the Army’s long-term path for autonomous ground systems, a capability it has pursued for decades with limited progress.

Industry partners expressed optimism, describing the program as a “springboard” for Army ground autonomy and emphasizing cost-effective, soldier-friendly solutions. The Army sees the effort as a critical step toward accelerating the adoption of next-generation autonomous mobility.

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DIU Director steps down as Pentagon reaffirms unit’s independence

Doug Beck, director of the Defense Innovation Unit (DIU), resigned this August, prompting the Pentagon to name Undersecretary of Defense for Research and Engineering Emil Michael as acting head. Michael emphasized the move is temporary, stressing that DIU will remain an independent organization reporting directly to the Secretary of Defense, as codified by Congress in 2024.

Michael said his priority is finding a full-time replacement, while also advancing broader technology initiatives under his portfolio. He recently absorbed the Chief Digital and AI Office into Research and Engineering, a move intended to accelerate department-wide AI adoption. Speaking at an event, Michael highlighted leveraging private-sector AI investments, estimated at $300 billion annually, for defense applications ranging from combat support to homeland defense.

As acting DIU leader, Michael is also refining the Pentagon’s list of critical technology priorities, opting to focus on fewer areas with targeted “sprints” to speed adoption. The shake-up marks another transition in DIU’s evolving role as the Defense Department’s bridge to the tech sector.

Army prepares to unveil new air and missile defense strategy

The U.S. Army is set to release its long-term air and missile defense strategy in October 2025, marking the first update since 2018. Lt. Gen. Sean Gainey, head of Army Space and Missile Defense Command, previewed the plan at the Space and Missile Defense Symposium, noting it will address lessons from conflicts in Ukraine and the Middle East while preparing for the 2040 battlefield.

The strategy outlines a 30% growth in Army missile defense capacity over the next eight years and emphasizes integrating lethal and nonlethal capabilities, offensive and defensive fires, human-machine teaming, and AI-driven decision-making. A major focus is the “smart missile defeat” concept, aimed at neutralizing threats before launch rather than relying solely on interceptor-on-interceptor engagements.

Key technologies include the Integrated Battle Command System (IBCS), designed to link any sensor to any shooter, and AI-enabled tools to reduce operator overload. The strategy also ties into the development of the Golden Dome homeland defense shield, with Space and Missile Defense Command expected to take on a larger role in U.S. homeland missile defense operations.

General Atomics’ collaborative combat aircraft makes first flight

The Air Force’s Collaborative Combat Aircraft (CCA) program reached a major milestone as General Atomics’ YFQ-42A conducted its first flight from Gray Butte Airport, California. Based on the company’s XQ-67A Off-Board Sensing Station drone, the aircraft will now undergo testing at Edwards AFB and operational assessments at Nellis AFB before fielding. A dedicated CCA Air Readiness Unit at Beale AFB will later deploy the drones worldwide.

Anduril, the other company under contract, said its competing YFQ-44 Fury will begin flight testing “soon.” Both prototypes are slated for evaluation ahead of a fiscal 2026 production decision. Early CCAs will focus on air-to-air missions, augmenting fighters with additional munitions, while future increments are expected to prioritize lower-cost options to enable affordable mass.

The Air Force has boosted CCA funding to nearly $800 million for FY26, underscoring the program’s role in rapidly delivering combat capability and reshaping future airpower.

Army prepares 2026 competition for counter-drone laser weapons

The U.S. Army plans to launch a fiscal 2026 competition for its Enduring High Energy Laser (E-HEL) program, aimed at fielding scalable, reliable directed-energy systems to counter drones and other aerial threats. Building on more than five years of experimentation by the Rapid Capabilities and Critical Technologies Office (RCCTO), the initiative seeks to transition from prototypes to fieldable, mass-producible systems.

The Army has deployed 11 of its 17 laser prototypes, including four 50-kilowatt Directed Energy M-SHORAD systems to CENTCOM, and continues to test lasers ranging from 10 to 300 kilowatts. Operational trials have shown promise in cost-per-shot and magazine depth but revealed challenges with reliability, sustainment, and manufacturability at scale.

The E-HEL program will emphasize modular, line-replaceable components that soldiers can service in the field, decoupled from specific vehicle platforms for flexibility across Strykers, JLTVs, or robotic systems. The Army will also require open, common user interfaces and designs that can be scaled for production.

Industry leaders anticipate a surge in demand for directed-energy systems, with the Army signaling it is ready to move from “onesies and twosies” prototypes to widespread deployment in the coming decade.