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Japan Approves Record FY2026 Defense Budget, Accelerating Drones and Hypersonics as China Protests

The package reflects a rapid pivot to unmanned systems for coastal defense in response to regional threats.

Overview

  • Cabinet-set defense outlays rise 3.8% to ¥9.0353 trillion for FY2026, marking a 12th straight annual increase under the five‑year ¥43 trillion plan.
  • ¥100.1 billion funds the new Shield concept to field several thousand coastal-defense drones by FY2027, with additional money for MQ‑9B SeaGuardian verification flights.
  • Personnel and living-condition upgrades total ¥581.4 billion, a 42% jump that includes barracks modernization, more individual rooms, and new training allowances.
  • Stand‑off capabilities advance with ¥30.1 billion to acquire hypersonic guided missiles, alongside R&D for AI-enabled teaming and next-generation fighter development.
  • The Japan Coast Guard secures a record ¥297.1 billion, including ¥22.3 billion for Senkaku patrols and a plan to grow SeaGuardian UAVs to 10 by 2030, while operations remain paused after a Kitakyushu landing accident; China has formally condemned the budget increase.