U.S. President Donald Trump is set to announce the Pentagon's decision regarding a significant next-generation fighter jet contract, valued at over $20 billion, on Friday.

This announcement is part of the Next Generation Air Dominance (NGAD) program, which aims to replace the F-22 Raptor with a new crewed aircraft designed to operate alongside drones. The design details of this aircraft remain confidential but are expected to feature advanced stealth capabilities, sensors, and engines.

Lockheed Martin and Boeing are competing for this lucrative winner-take-all contract, which could lead to hundreds of billions of dollars in orders over its multi-decade lifespan.

A victory for Boeing would be particularly crucial as the company has faced challenges in both its commercial and defence sectors; a loss could further exacerbate its difficulties. Conversely, Lockheed Martin, already a major player with its F-35 jet, would solidify its position in high-end military aircraft if it wins.

The announcement is scheduled for 11 a.m. (1500 GMT) in the Oval Office, where Trump will be joined by Secretary of Defence Pete Hegseth. This decision comes amid Trump's ongoing efforts to cut government costs, despite concerns about budget constraints affecting military programs. The NGAD initiative has progressed under Trump's administration after a period of uncertainty regarding its future, previously threatened by budget pressures and potential delays.

Elon Musk has expressed scepticism about the effectiveness of crewed high-end fighters compared to cheaper drone alternatives. Last year, discussions arose concerning possible reductions in the NGAD program due to financial constraints and cost overruns in other Air Force projects.

However, the upcoming announcement suggests that a finalized design from last year will be selected for the NGAD program.

Agencies