WASHINGTON, D.C. — The U.S. Air Force has awarded Boeing contract modifications worth $2.4 billion to advance development of the E-7 Wedgetail airborne early warning aircraft, expanding engineering and testing work as the service moves forward with plans to replace its aging fleet of E-3 Sentry AWACS aircraft.
The funding supports continued development of the E-7 platform as the Air Force evaluates the aircraft as its next-generation airborne early warning and control system. The move represents a major step in the program’s engineering and manufacturing development phase and increases the total value of the E-7 contract to more than $5 billion.
New Funding Advances E-7 Wedgetail Development
The U.S. Air Force on March 12 issued contract modifications totaling $2.4 billion to Boeing as part of the E-7 Wedgetail program’s engineering and manufacturing development phase.
The largest portion of the funding, approximately $2.3 billion, will support the procurement of additional developmental E-7 aircraft. The Air Force did not disclose how many aircraft will be acquired under the option.
Aircraft purchased during this stage will help mature the design of the E-7 system, reduce technical risks and enable extensive testing and verification before any decision on full production is made.
The Wedgetail is designed as an advanced airborne early warning and control platform that could replace the Air Force’s aging fleet of E-3 Sentry aircraft, Air and Space Forces reported.
Contract Value and Development Timeline
The Air Force had previously awarded Boeing a contract initially valued at up to $1.2 billion to build two rapid prototype E-7 aircraft. That agreement was later finalized at $2.56 billion.
With the latest contract modifications, the total value of the E-7 program contract now exceeds $5 billion.
In addition, the Air Force issued a second modification worth $99 million to continue development of the aircraft’s multirole electronically scanned array radar. The radar is the defining feature of the E-7 platform and provides wide-area surveillance and target tracking capabilities.
Program work will be conducted at Boeing and partner facilities in Seattle, Oklahoma City, Huntsville, Alabama, and Heath, Ohio. Current contract activities are expected to run through August 2032.
Updated Acquisition Strategy Following Congressional Direction
The Air Force confirmed it has approved an updated acquisition strategy for the E-7 program following direction from Congress in the 2026 Consolidated Appropriations Act.
According to the service, the new strategy allows continued development and enables the program to transition into the engineering and manufacturing development phase.
Aircraft produced during this phase will support design validation, risk reduction and system verification activities required before moving into a potential production phase.
If Congress provides additional funding and the Pentagon ultimately approves full production, the aircraft developed during this stage could help accelerate the transition into operational procurement.
E-7 Wedgetail as Replacement for E-3 AWACS
For several years, Air Force leaders have promoted the E-7 Wedgetail as the most capable replacement for the aging E-3 Sentry airborne warning and control system aircraft.
The E-3 AWACS fleet relies on Cold War-era radar technology housed in a rotating 30-foot radar dome mounted above the aircraft. The radar requires about 10 seconds to complete a full rotation and refresh its surveillance picture.
The E-7 uses a fixed electronically scanned array radar capable of monitoring multiple targets simultaneously while refreshing tracking data far more rapidly. The aircraft also requires a smaller crew than the E-3.
Several allied nations already operate the Wedgetail, including Australia. Australian aircraft have recently supported airspace security operations during the conflict involving Iran.
Pentagon Debate Over the Program’s Future
Despite support from Air Force leadership, the E-7 program continues to face uncertainty within the Pentagon.
In its fiscal year 2026 budget proposal, the Trump administration recommended canceling the E-7 acquisition. The proposal suggested replacing the capability with a combination of Navy E-2D Hawkeye aircraft and space-based targeting satellites.
The proposal triggered strong opposition in Congress. Lawmakers blocked the cancellation of the prototype program and added $1.1 billion in funding to ensure development continues.
Air Force Secretary Troy Meink stated during the Air and Space Forces Association Warfare Symposium that the service will comply with congressional direction to proceed with prototype purchases. However, he did not confirm long-term procurement plans.
A March 10 Air Force solicitation for product support services asked vendors to prepare proposals for fleet sizes ranging from only the two prototype aircraft to a full fleet of 26 E-7s.
