Breaking Defense is reporting that the Defense Department obligated $142 billion from last year's reconciliation bill before the fiscal 2027 deadline, leaving billions of dollars subject to cuts. It said any funding left unspent by the Pentagon faces an 8.3 percent reduction known as sequestration as the new fiscal year begins.

The outlet said the Defense Department will operate under a continuing resolution until lawmakers pass a fiscal 2027 budget. It reported that more than 150 new military programs face delays under the stopgap measure.

Breaking Defense also reported that Defense Secretary Pete Hegseth envisions combining drone procurement and operations under a new Autonomous Warfare Command, though Congress will have a say in the plan.

Separately, the outlet said Finland has welcomed home its first two F-35 fighter jets. Helsinki ordered 64 of the stealth aircraft in 2021 in a deal valued at $9.4 billion to replace its aging F/A-18 Hornets.

Breaking Defense reported that Powerus, a drone-maker backed by the Trump brothers, has gone public. Chief Executive Andrew Fox said completing the transaction positions the company to build at the scale customers are requesting.

The outlet said the Pentagon's Operational Energy Capability Improvement Fund announced a second space-based solar power contract in recent weeks, moving a demonstration project closer to beaming solar power from space.

Breaking Defense also reported that a Moroccan startup unveiled a prototype drone that operates without GPS, and that a dozen vendors tested counter-drone technology at Yuma Proving Ground during Falcon Peak 26.2.