WASHINGTON, D.C. — In a burst of late-year activity that spans minerals, missiles, paychecks, and public safety, the Department of War has quietly rolled out a sweeping set of actions aimed at tightening U.S. military readiness while pumping money into domestic industry and frontline forces.
At the industrial core of the push is a string of Defense Production Act investments designed to choke off supply-chain weak points that Pentagon planners increasingly view as strategic liabilities. One of the most consequential moves directs $18.5 million into a Montana facility run by Lattice Materials, boosting U.S. capacity to produce germanium and silicon crystals — niche materials that sit at the heart of infrared optics used for surveillance, targeting, and reconnaissance.
“Mitigating supply chain vulnerabilities and expanding domestic production for critical minerals is one of DOW’s highest priorities,” said Mike Cadenazzi, assistant secretary of war for industrial base policy. He said the investment is aimed at ensuring U.S. forces are not left waiting on optics needed for key weapons platforms.
War Department officials describe optics as a hidden bottleneck across multiple services. Jeffrey Frankston, acting deputy assistant secretary of war for industrial base resilience, said easing pressure on germanium supplies would have an “outsized impact on readiness,” noting that optics often dictate how quickly major platforms can be fielded.
That industrial expansion is only part of the picture. The department also disclosed two additional DPA Title III investments totaling $32.7 million to expand solid rocket motor production in Washington state and Arizona. The goal is to relieve pressure on a narrow supplier base strained by rising demand for propellant-driven weapons.
“The surge in demand for propellant-based weaponry, coupled with a narrow supplier base, has created a bottleneck,” said Under Secretary of War for Acquisition and Sustainment Michael Duffey. He said the investments are intended to accelerate munitions manufacturing while hardening the supply chain against disruption.
Meanwhile, the War Department’s innovation pipeline crossed a symbolic threshold. The Accelerate the Procurement and Fielding of Innovative Technologies program has now awarded more than $1 billion to small businesses and non-traditional defense contractors, with the first round of fiscal year 2026 selections averaging more than $30 million per project.
“Crossing the billion-dollar threshold underscores APFIT’s commitment to America’s small business innovators,” said Emil Michael, under secretary of war for research and engineering, calling the program a fast track for moving advanced technologies from development into operational use.
Beyond weapons and manufacturing, the department also moved on personnel and public safety. New Continental United States cost-of-living allowance rates will take effect January 1, 2026, sending $99 million to roughly 127,000 service members stationed in the country’s most expensive areas. Seattle posted the largest jump, while Humboldt County, California, saw its allowance eliminated.
In a separate security move, the secretary of war authorized the activation of up to 350 Louisiana National Guard members under Title 32 status through late February. The troops will support federal law enforcement efforts to counter violent crime in New Orleans and other urban areas, operating under the governor’s command.
Taken together, the announcements paint a picture of an unusually broad War Department offensive — one that reaches from Montana crystal furnaces to rocket motor factories, from small-business innovators to National Guard deployments on city streets. The common thread is urgency: locking down supply chains, accelerating production, and shoring up readiness before vulnerabilities turn into crises.
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