US Air Force Faces Budget Crunch, Halts Next-Gen Tanker Plans

US Air Force Secretary Frank Kendall didn’t mince words at the Airlift/Tanker Association Symposium earlier this month.

His message? The Air Force is strapped for cash, and that could spell trouble for the development of its much-hyped Next-Generation Aerial Refueling System (NGAS).

NGAS was supposed to be the tanker of the future, designed to operate in contested environments like the Indo-Pacific, where China’s advancing counter-air systems pose a serious threat.

Think stealthy, resilient, and high-tech—a tanker that could survive in hostile airspace and keep fighters fueled for the long haul.

But as Kendall laid it out, that vision might remain just that—a vision. Here’s what went down last November 1.

The Budget Squeeze

Let’s face it: the Air Force’s wishlist is ambitious.

Alongside NGAS, there’s the Next Generation Air Dominance (NGAD) sixth-gen fighter and its robotic wingmen, known as Collaborative Combat Aircraft (CCA).

Toss in the B-21 Raider stealth bomber and the LGM-35A Sentinel intercontinental ballistic missile (ICBM) replacement, and you’ve got a modernization tsunami straining an already tight budget.

Kendall didn’t sugarcoat the situation. “Right now, given our commitments, our resources, and strategic priorities, it’s hard for me to see how we can afford any combination of those new designs,” he said, quoted from Defense News. Translation? Something’s got to give, and it might be NGAS.

“What I worry about the most is the adequacy of our resources,” Kendall added.

Tanker of Tomorrow or Upgraded Today?

Since starting from scratch on NGAS is a long shot, the Air Force might pivot to a more practical approach—upgrading its existing fleet of aerial tankers.

Kendall floated the idea of bolting on self-protection gear and enhanced connectivity to today’s tankers, which could boost their survivability in contested zones without breaking the bank.

“The need for improved connectivity and some degree of enhanced self-protection measure appears to be attractive from both an affordability and cost-effectiveness perspective,” Kendall said. It’s not the futuristic stealth tanker we dreamed of, but it’s a solution that could be implemented in “relatively short time frames at relatively low cost.”

Reviewing Air Superiority Strategy

The challenges go beyond NGAS. Kendall emphasized that NGAD and CCAs are deeply intertwined with NGAS from both operational and cost perspectives.

The Air Force is currently reviewing its air superiority strategy to figure out how to make these systems work together without draining the coffers.

The big question: how do you fund game-changing technologies when you’re also modernizing the nuclear triad, bolstering Space Force, and shoring up air base defenses?

Kendall made it clear that those priorities—especially nuclear modernization—take precedence. “All of these are absolutely essential for the success of the Air Force and Space Force and the joint force, and all of them require substantial increased investments,” he said.

Noticeably absent from his list of “must-haves“? NGAS and NGAD.

So… What’s Next?

The Air Force is expected to wrap up its NGAS and NGAD reviews by the end of the year, which will help shape its 2026 budget request.

But Kendall has already warned that the 2026 budget will be even tighter than 2025, meaning hard choices are ahead.

For now, the future of NGAS hangs in the balance.

Will the Air Force find a way to fund its tanker of tomorrow, or will it have to settle for enhancing the fleet it already has? Either way, Kendall’s comments are a stark reminder that even the world’s most powerful military has limits—and deciding where to invest its dollars is only getting tougher.

In the high-stakes world of defense spending, every dollar counts. And as Kendall pointed out, there’s just not enough of them to go around.