U.S. congressional defense committees have approved shifting move than $400 million into missile defense programs to clear the way for more ground-based interceptors, sensors and upgrades to the navy's anti-missile vessels in the face of threats led by North Korea.
Boeing Co., Raytheon Co. and Orbital ATK Inc. are likely to be the top beneficiaries. Defense Secretary Jim Mattis disclosed the approval Tuesday during a Senate hearing on Afghanistan. He said he had requested approval to shift, or "reprogram," unspent funds for fiscal 2017 totaling $440 million from accounts such as army wartime operations and maintenance. A formal six-page request listed $416 million of the total.
The shift of funds reflects a growing determination at the Pentagon and in Congress to bolster missile defenses as North Korea vows to perfect nuclear missiles that can hit the U.S. mainland as well as allies in Asia. It may be the opening round in moves to seek more than the $9.9 billion requested by the Pentagon for the fiscal 2018 year that began on Oct. 1.