US Nuclear Missile Program Costs Climb to Around $160 Billion

(Patria) - The Air Force's program to replace aging nuclear missiles has seen its costs rise to about $160 billion from $95.8 billion, Reuters reported, citing three sources.

The project, now called the Sentinel Intercontinental Ballistic Missile program, is designed and managed by Northrop Grumman and aims to replace the aging Minuteman III missiles.

Its latest price tag has risen by about $65 billion from a 2020 cost estimate, according to a US official, an industry executive and an aide on a job familiar with the matter. This could force the Pentagon to reduce the project's scope or timeline, said another industry executive.

Bloomberg reported earlier on Friday that the new price was about $141 billion, with the Pentagon estimating construction and schedule changes. Northrop Grumman declined to comment. The Pentagon did not comment on the figure but said it expects to provide a new cost estimate around Tuesday.

The new cost estimate for Sentinel surpasses the increase to "at least" $131 billion that the Air Force announced in January. This triggered the Nunn-McCurdy Act, a 1982 law that requires the Pentagon to formally justify to Congress the importance of a program whose unit procurement costs have risen more than 25% above baseline.

Defense Secretary Lloyd Austin is expected to submit that notification next week. Although Air Force leaders argue that Sentinel is crucial for maintaining America's nuclear deterrence, the Pentagon has asked industry for cost estimates for a life-extension program for the existing Minuteman III missile inventory, according to documents seen by Reuters.

The increased cost estimates are putting pressure on other Air Force priorities such as the Next Generation Air Dominance fighter jet program, according to two sources. Other potentially affected programs include the development of hypersonic weapons, the B-21 bomber, and various space initiatives.