Big ticket defense programs face scrutiny under Trump administration

President-elect Donald Trump watched four F-35s fly over the Army-Navy Game at M&T Bank Stadium in Baltimore, Maryland. Forty-eight hours later, he fired off a tweet that would cost the company that built the F-35 nearly $4 billion.

Trump’s tweet called into question the F-35 program saying the “cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.”

The Monday morning tweet sent Lockheed Martin’s stock tumbling before a late day rally recovered some of the value lost.

The company headquartered in Maryland is the latest target to suffer from one of Trump’s morning tweets. The previous week, Trump took aim at the Air Force One program headed by Boeing. Similarly, Boeing’s stock suffered the following day and left Boeing executives scrambling to issue statements saying they will respond to changes requested from the Trump administration.

Trump’s tweets signal the president-elect has his eye on military spending as a potential target where he can save money, said Michael Hoffman, executive editor for Tandem National Security Innovations. He’s certainly not the first to suggest the F-35 program has gone over budget. Countless congressional hearings have been held to criticize the Pentagon’s most expensive weapons program in history for a misuse of tax payer’s money.

However, Trump’s 140-character attack is the most high profile condemnation the the program has received in recent years.

More importantly, Trump’s recent critiques make some in the defense industrial world question whether a Trump administration will result in the financial windfall many expected when he was elected.

Defense analysts have said the greater Washington region stands to receive a substantial boost from increased defense spending. With a Republican president saying he wants to build more ships and planes, many expect significant increases to the military budget with a Republican Congress.

However, Trump has used his social media bullhorn to criticize the Pentagon and defense industrial complex for over spending on current weapons programs. Trump has shined a light on defense acquisition programs that don’t typically get much national attention.

Defense companies and Republican members of Congress have supported acquisition reform. The Obama administration made it a priority but their efforts have resulted in modest gains.

Trump has announced he will appoint retired Marine Gen. James “Mad Dog” Mattis as his secretary of defense. Mattis is known for his lack of patience for bureaucracy and it will be interesting to see how he tackles spending on big ticket weapons programs.

If Trump wants to build as many ships and planes as he promised on the campaign trail, he will need the help of Boeing and Lockheed Martin. If the president-elect matches his words with contracts, those two defense titans will be happy to oblige.

Check out all our coverage of the incoming Trump administration here.

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