WASHINGTON — The Pentagon released a modernized selected acquisition report (MSAR) covering the year 2025, revealing that the estimated acquisition cost for all planned F-35 aircraft has risen to $536.3 billion. A JPO spokesperson confirmed the rising acquisition cost for the F-35, noting that the previous estimated acquisition cost listed in the 2024 MSAR was $485.2 billion.

The $51.1 billion increase stems from specific program adjustments, with $19 billion attributed to higher development costs for the aircraft and its engine. An additional $32 billion of the acquisition cost increase is attributed to greater procurement costs, including spare parts and an advanced radar. Delays in the advanced radar delivery have resulted in the Pentagon accepting aircraft without the nose-mounted sensor.

Despite the rise in acquisition spending, the estimated total lifecycle cost for the F-35 program is approximately $1.93 trillion, down from the previous estimated total lifecycle cost listed in the 2024 MSAR of $2.06 trillion. A JPO spokesperson confirmed that the F-35 program's lifecycle costs have fallen below $2 trillion. The F-35 lifecycle cost previously surpassed $2 trillion in a 2024 Government Accountability Office review.

The report authors stated that "The $2T price tag commonly reported in the media doesn’t come close to telling the whole story." The F-35 lifecycle cost estimate accounts for inflation to estimate costs in the year of purchase and covers a period of six decades. This estimate includes fuel, staffing, sustainment, and future upgrades.

Lockheed Martin builds the F-35, which includes the conventional takeoff and landing A model, the short takeoff and vertical landing B version, and the carrier-capable C variant. Pratt & Whitney, a subsidiary of RTX, supplies the F-35 engine. The F-35 is operated by the U.S. Air Force, Marine Corps, and Navy, while nineteen international customers operate the F-35 in addition to the United States. A Lockheed Martin spokesperson said in a statement, "The latest MSAR report shows the combat-proven F-35 program moving into full-rate production, resuming high-volume development deliveries and growing globally." The company added, "It also shows that the hard work has shifted from proving the basic aircraft to executing major modernization, improving fleet readiness and controlling long-term sustainment and integration costs." According to aerospaceglobalnews.com, the F-35 Joint Program Office (JPO) and Lockheed Martin finalised a $24 billion agreement covering production Lots 18 and 19 and up to 296 aircraft.

The report noted that the Block 4 modernization program is over budget and behind schedule. The Technology Refresh 3 computing backbone for Block 4 has not been certified for combat, meaning F-35 jets delivered over the past two years are relegated to training duties due to the lack of Technology Refresh 3 certification. The Pentagon is implementing enhancements to the F-35 engine and a new power and thermal management system for the F-35 to address cooling challenges.

The 2025 MSAR projects that F-35A operations will continue until 2083, a revision from the 2023 MSAR projection that F-35A operations would continue until 2088. The report authors stated, "The growing global demand speaks for itself," and concluded that "The F-35’s value proposition is unmatched."