The Pentagon is planning to increase its procurement of missile-defense interceptors significantly, following recent conflicts that have depleted its stockpiles. The Army's fiscal 2027 budget indicates a substantial rise in the purchase of Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) and Terminal High Altitude Area Defense (THAAD) interceptors. This shift comes as the U.S. military responds to the growing missile capabilities of China and the demands of ongoing operations in the Middle East.
Recent budget documents reveal that the Army's acquisition objective for PAC-3 MSE missiles has increased from 3,376 to 13,773, reflecting a more than fourfold rise in requirements. Retired Rear Adm. Mark Montgomery noted that the shortage of munitions was a result of a long-term failure to procure sufficient quantities. The Pentagon has used nearly all of its ATACMS and Precision Strike Missile inventories in recent months, raising concerns about its readiness for potential conflicts with near-peer adversaries like China.
The procurement history shows a decline in PAC-3 MSE purchases from 328 missiles in fiscal 2022 to 214 in fiscal 2025, while THAAD procurement has been minimal. A new analysis from the Heritage Foundation estimates that the U.S. would need over 7,000 PAC-3 MSE interceptors and nearly 1,400 THAAD interceptors to meet minimum inventory requirements in a conflict with China. However, current production rates indicate that it could take decades to reach these levels, highlighting the urgency of addressing the shortfall in missile defenses.