A high-stakes dispute over defense funding is casting uncertainty over the U.S. Navy’s next-generation fighter jet, with sources revealing internal friction between the Navy, Congress, and the Trump administration.

At the center of the standoff lies the F/A-XX initiative—a cornerstone program aimed at replacing the Navy’s aging fleet of Boeing F/A-18 Super Hornets with a stealthy, carrier-launched fighter built for operations in the 2030s. Insiders familiar with the matter say the Navy had planned to announce the contract winner as early as March, a deal potentially worth hundreds of billions over the aircraft’s lifecycle.

But that schedule is now under threat. Some Pentagon officials are reportedly advocating for a delay of up to three years, citing concerns over engineering readiness and industrial production capability.

Meanwhile, the U.S. Air Force has already awarded Boeing a contract to produce the F-47—its sixth-generation stealth fighter intended to succeed the F-22—with plans to acquire more than 185 units. In contrast, the Navy’s F/A-XX program remains in limbo, with Boeing and Northrop Grumman still vying for the contract. Lockheed Martin, according to a March report by Reuters, has been eliminated from the running.

A delay of this magnitude, according to sources, could effectively dismantle the current framework of the program, invalidating contract terms and prices and forcing a restart of the competitive process.

Neither the Navy nor the Pentagon would provide direct comment, citing the sensitive and preliminary nature of ongoing discussions.

The funding battle comes amid growing debate over the long-term role of naval air power in countering threats like China, which is already testing its own sixth-generation jets, the J-50 and J-36—aircraft the Navy's forward-deployed forces could face in future conflicts.

“If we fail to invest in a next-gen naval fighter, we may render our aircraft carriers irrelevant within decades,” one U.S. official warned. They emphasized that rapid decision-making, seamless integration with autonomous platforms, and enhanced strike capability are critical in the evolving Indo-Pacific security landscape.

The broader struggle also reflects shifts in Pentagon procurement philosophy under President Trump, whose administration has emphasized modernization and questioned legacy systems. Trump adviser Elon Musk, for instance, has dismissed crewed fighters as outdated in an era leaning toward drone warfare. Still, military experts caution that autonomous aircraft could be vulnerable to electronic warfare, making human pilots indispensable.

Currently, the Navy operates approximately 128 F/A-18 Super Hornets—aircraft that entered service in the mid-1990s.

Now, the Defense Department’s cost assessment office, led by Defense Secretary Pete Hegseth, is reportedly seeking to reallocate $454 million already earmarked by Congress for the F/A-XX program in the 2025 budget. In addition, sources say the Pentagon is preparing to urge lawmakers to withhold an additional $500 million originally requested to expedite the jet’s development

These twin funding hits—and the looming three-year delay—have not previously been disclosed. They’ve triggered sharp opposition from both Navy leadership and influential members of Congress. According to one industry executive, lawmakers are issuing blunt warnings to defense officials: “Don’t you dare do this.”

Still, a congressional aide noted that the Pentagon may yet reverse course and honor the funding priorities laid out by Congress.