Japan Budget Requests Record $55.6B for Unmanned, Long Range Strike Capabilities

Concept art of stand-off missile capabilities, deployed from various platforms as part of Japan’s Ministry of Defense Fiscal Year 2027 Budget Request documents. Japan Ministry of Defense graphic Japan’s Ministry of Defense has requested a record 8.9 trillion yen – or $55.6 billion – for its Fiscal Year 2027 Defense Budget to prioritize artificial intelligence, unmanned capabilities and long-range strike capabilities, according to budgetary documents released Monday.

The Ministry of Defense is seeking to transform Japan’s military capabilities to adapt to what it calls “new ways of warfare” as the archipelago country “faces the most severe and complex security environment since the end of World War II,” reads the documents. In line with this, Japan is requesting the record high amount to expand maritime surveillance capabilities and its defense industrial base

The final amount, which will be decided by the Japanese government at a later date, is expected to be higher than the requested $55.6 billion. Last year the defense ministry requested $55 billion but the Japanese government allocated $56.4 billion.

The MOD divided its FY2027 budget request into three pillars and nine priority items.

The first pillar is adapting to new ways of warfare and includes the following priority items:

artificial intelligence,

unmanned systems,

standoff weapons,

integrated air and missile defense,

space and cyber capabilities.

The second pillar is sustainable response capabilities with Pacific Sea Lane Defense being a main priority item.

The final pillar is defense capabilities foundation with defense production and technology base and human resource base listed as the priority items.

The MOD plans to develop an AI utilization decision support system for the Japan Joint Operations Command. The system will initially use existing overseas technologies. In addition, the MOD plans to develop a next-generation AI platform and introduce a classified cloud system that can securely and rapidly aggregate, share and utilize data, as well as construct a high-speed, high-capacity and multi-layered communication network that can maintain and continue command and control even if disrupted.

Japan Ministry of Defense graphic from its 2026 White Paper. MOD graphic The defense ministry also aims to transform Japan into the world’s leading organization in the use of unmanned assets, minimizing casualties and achieving cost advantage. Unmanned assets can be used to intercept enemy drones inexpensively and also serve as a counterattack capability when used in conjunction with stand-off weapons.

“During maritime invasions, enemy attacks can be ‘absorbed’ and combined with stand-off missiles to deal with them more effectively at an early and long distance. Underwater threats can be made visible and neutralized to gain underwater superiority. In addition, they can replace the functions of manned assets,” the MOD said.

According to the budget documents, the main unmanned projects are the acquisition of unmanned aerial vehicles for information gathering, surveillance and targeting; acquisition of UAVs for attack; research on stand-off missile launch modules for unmanned underwater vehicles; and development of general-purpose small unmanned ground vehicles.

Specific acquisitions program include acquiring surface ship-launched UAVs capable of carrying out attacks, an undisclosed amount of Shield AI V-BAT vertical take-off and landing UAV for the Japan Maritime Self-Defense Force and 17 MQ-9B UAVs for the JMSDF.

The defense ministry plans for a total fleet size of 23 MQ-9Bs to begin deploying with Japan’s maritime force in FY 2027. The UAVs will only be used in the Intelligence, Surveillance and Reconnaissance (ISR) role and will not be armed, according to the ministry.

Artist’s concept of an MQ-9B-SeaGuardian. General Atomics Image The MOD has also requested unpriced funding for the development of a new hypersonic underwater launched missile and funding for an ongoing separate program to acquire a long range submarine-launched missile developed by Mitsubishi Heavy Industry. Research on an underwater vertical launch system, which has been ongoing, continues to be funded.

Additionally, there are funding requests for ongoing long range strike missiles acquisitions such as the Joint Strike Missile (JSM), Joint Air-to-Surface Stand-Off Missile (JASSM) and the Improved Type 12 missile (air, sea and ground launched).

According to the budget request documents, Chinese and Russian activities off Japan’s Pacific side have increased. China has deployed its People’s Liberation Army Navy aircraft carriers and joint bomber flights have been conducted by the two countries. PLAN aircraft carriers operated five times on the Pacific side of Japan in 2025, compared to twice in 2022, according to the defense ministry.

Because of the increase in Chinese and Russian activity, the MOD said it is important to strengthen the Japan Self-Defense Forces Pacific Sea Lane Defense capabilities via continued funding to establish facilities for surveillance on Kita Daito Island, the acquisition of the MQ-9B for ISR in the area, modifications of the Izumo-class destroyer carriers for F-35B operations and a study of cargo handling facilities on Iwo Jima to improve the efficiency of maritime transport in the area.

U.K. F-35B Lightning II fighter launches from Japanese Self Defence Force Flagship, JS Kaga on Aug. 8, 2025. UK Royal Navy Photo The MOD requested funding for a new program – dubbed the Close Range Air Defense System (CRADS) – to counter drone swarm attacks by using a combination of guided missiles, autocannons and lasers that can be deployed in large numbers at low cost. The MOD is also requesting funding for the ongoing integrated air and missile defense programs, such as acquiring Patriot PAC-3 Missile Segment Enhancement systems, strengthening the networking connectivity of existing Patriot systems and the Japan-U.S. joint development of the Glide Phase Interceptor Guided Missile.

In addition, Monday’s documents show a number of programs and acquisitions as open ended item requests with no price listed. The programs may be adjusted or changed during revisions on Japan’s National Security Strategy, National Defense Strategy and Defense Buildup Program. FY2027 also marks the last year of the initial five-year period of the Defense Buildup Program.

Ships, submarines and aircraft acquisitions funding requests were largely unpriced with no specific numbers. Requests were made for the improved Mogami-class frigate and Sakura-class offshore patrol vessels, both of which will be 12-ship classes. Six ships from each class have already been funded in prior defense budgets.

Similar unpriced and unnumbered acquisition requests have been made for the Taigei-class submarine, P-1 Maritime Patrol Aircraft and both the A and B versions of the F-35 fighter aircraft.

The MOD requested 68.9 billion yen – $430 million – along with an additional unpriced amount for two Aegis System Equipped Vessels (ASEV). The first ship is scheduled to enter service at the end of FY2027 and the second in FY2028. Another 144.1 billion yen – $900 million – plus additional unpriced cost was requested for the construction of a supply ship for the JMSDF.