RDT&E Program Element · President's Budget PB2027

H-1 Upgrades

PE 0604245M·U.S. Navy·Approp. 1319 — RDT&E·BA5 — System Development & Demonstration
FY2027 Request
$66.4M
Navy · RDT&E
HitchAI read

U.S. Navy requests $66.4M in FY2027 — the program's peak. In the FY2027 defense authorization, the House funded it in full; the Senate funded it in full; House appropriators funded it in full. NAWCAD leads the industry work.

FY2027 Request
$66.4M
▲ 6.8% vs FY2026
FY2026 Enacted
$62.2M
▲ 42% vs FY2025
FY2025 Actual
$43.7M
Prior year

For fiscal year 2027, the U.S. Navy is requesting $66.4M for H-1 Upgrades under RDT&E program element 0604245M, up 6.8% over FY2026.

Funding trajectory

Funding profile, FY2025–FY2031

Prior years are actuals, the budget year is the request, and the outyears are the FYDP plan. Estimate types are colored and never summed into one figure.

2550043.7FY25ACTUAL62.2FY26ENACTED66.4FY27REQUEST65.9FY2855.8FY2947.2FY3045.1FY31
Actual Enacted Request Outyear (FYDP)
Fiscal YearEstimate TypeAmount ($M)
FY2025Actual43.7
FY2026Enacted62.2
FY2027Request66.4
FY2028Outyear65.9
FY2029Outyear55.8
FY2030Outyear47.2
FY2031Outyear45.1
Where it sits

Acquisition lifecycle

This program is funded in RDT&E Budget Activity 5 — System Development & Demonstration.

Complete
Research
BA 1–2
Complete
Advanced Technology
BA 3
Complete
Prototyping
BA 4
Current
Development & Fielding
BA 5–7
Inside the program element

1 project rolls up into PE 0604245M

Projects are the summable leaves — the PE total is their sum, never added to it. Program elements and projects carry the full five-year plan; activities stop at the budget year. This PE moves 7% overall, which can hide much larger swings below.

Project 3359

H-1 Improvements

$66.4MFY2027 request ▲ 7%
FY2025 actual$43.7M
FY2026 enacted$62.2M
FY2027 request$66.4M
Product DevelopmentSupportTest and EvaluationManagement Services

The H-1 Improvements program is designed to advance the entire H-1 fleet, which includes the AH-1Z Viper and UH-1Y Venom helicopters. This initiative aligns with the Marine Corps' H-1 modernization strategy, emphasizing the integration of enhanced capabilities to increase the fleet's lethality, digital interoperability, and survivability. Each upgrade is accompanied by dedicated Software Configuration Set (SCS) development, robust cybersecurity protocols, and thorough testing to address hazard reports and maintain platform integrity. Air Vehicle and Engine Improvements are a central focus of the modernization initiative, aiming to maintain the structural integrity and reliability of the H-1 fleet well into the 2050s. Research, Development, Test, and Evaluation (RDT&E) funds are being allocated to analyze structural data, establish Damage Limits and Tolerances, and ultimately reduce life cycle costs and maintenance demands. The Air Vehicle scope also includes enhancements to rotors, flight controls, drive systems, and the development and testing of key airframe components such as the tail boom and fuselage. These efforts are designed to minimize wear, boost reliability, and address any design or safety shortcomings. Development of auxiliary fuel cells increases operational range and endurance. The program also encompasses Rotorcraft Station Control Unit (RSCU) software upgrades, thorough testing, and strengthened cybersecurity measures for the RSCU. Avionics modernization is a key driver in elevating the Marine Corps H-1 fleet's capabilities, with particular emphasis on Digital Interoperability (DI), integrated avionics, and improved situational awareness to enhance pilot and aircrew safety. The DI Integration initiative comprises a suite of systems designed to enable the H-1 platform to function as both a kill web enabler and effector. This effort incorporates technologies such as Link-16, the Advanced Net-Enabled Weapons (ANEW) datalink, and the Advanced Data Transfer System (ADTS). Upgrades include Degraded Visual Environment (DVE) systems, state-of-the-art cockpit displays, and a Health and Usage Monitoring System (HUMS) to increase operational safety and reliability. Communications modernization efforts focus on enhanced COMSEC and Embedded Global Positioning System (EGI) capabilities, along with the integration of a new Radar Altimeter (RADALT).

Accomplishments / planned programs (R-2A) — prior, current and budget year only
Weapons and Sensors Testing and Integration▼ 56%
FY2025 actual$10.4M
FY2026 enacted$13.7M
FY2027 request$6.0M

FY2027 planned work Weapons and Sensors will continue development, integration, and testing of next-generation munitions, sensors, and a multi-layered suite of Aircraft Survivability Equipment (ASE). Continue the integration of PASM, a long-range precision munition. The integration and testing of the DAIRCM system will continue. Initiate development and testing of advanced Electronic Warfare (EW) capabilities. The program will utilize dedicated test asset components for weapons and sensors. These assets are essential for comprehensive software validation and cybersecurity testing, ensuring that all new capabilities are secure, reliable, and fully integrated.

FY2026 to FY2027 change FY2026 to FY2027 decrease due to reduced OTO helmet-mounted efforts as it transitions to fielding.

FY2026 plans — current year Continue Precision Attack Strike Munition (PASM) integration efforts. Complete Target Sight System (TSS) obsolescence redesign efforts. Continue the Optimized TopOwl (OTO) obsolescence redesign efforts. Continue Aircraft Survivability Equipment (ASE) development and test and evaluation. Continue integration, testing and evaluation of Distributed Aperture Infrared Countermeasures (DAIRCM). Weapons and Sensors improvements include test asset components to support software and cybersecurity testing efforts.

Air Vehicle and Engines Improvements▼ 47%
FY2025 actual$7.3M
FY2026 enacted$6.6M
FY2027 request$3.5M

FY2027 planned work Air vehicle and engines will continue the redesign and testing of critical structural components. Continue to correct existing deficiencies, with a specific focus on Fuel Systems and Flight Safety Systems. The program will also support the integration of advanced software and ensure platform security. The program is developing and procuring essential test asset components.

FY2026 to FY2027 change FY2026 to FY2027 decrease due to reduction in design and test efforts in support of structural improvement.

FY2026 plans — current year Continue redesign and test of structural components to minimize excessive and premature wear, increase reliability and fatigue life. Improve existing design deficiencies including Fuel Systems and flight safety systems. Air vehicle and engine improvements include test asset components to support software and cybersecurity testing efforts.

FY2025 actual$26.1M
FY2026 enacted$41.9M
FY2027 request$56.9M

Avionics will continue with software integration, system integration laboratories, development testing and Model Based Systems Engineering (MBSE) activities associated with SCS. Continue design, development and testing for Digital Interoperability (DI) improvements, to include Adaptive Network Wideband Waveform 2 (ANW-2), Link-16 Mission…

Read the FY2027 plan →
Congressional action

Congressional marks

Committee marks on the FY2027 request. Adds and cuts are reconciled in conference before they become law.

RequestPresident's Budget
$66.4M
House NDAA (HASC)HASC
$66.4M full · +$0
Senate NDAA (SASC)SASC
$66.4M full · +$0
House Approps (HAC-D)HAC_D
$66.4M full · +$0
unresolved as of 2026-07-27. These are FY2027 authorization marks (NDAA); appropriations and the conference agreement may differ.
Who's building it

Where the FY2027 request goes

Performers named in the R-3 exhibit, resolved into industry, government-lab, and unspecified shares. Budget-justification contract funding, not obligations.

NAWCAD
$26.8M · 40%
Systems Engineering
Northrup Grumman
$20.5M · 31%
Software Development · FP
Where FY2027 funding flowsShare$M
Industry primes91%60.6
Government labs & warfare centers0.1%0.1
Other / unspecified8.6%5.7
FY2027 request100%66.4
See NAWCAD's full federal contract ledger members
Program detail

Mission & acquisition strategy

The H-1 Improvements program is designed to advance the entire H-1 fleet, which includes the AH-1Z Viper and UH-1Y Venom helicopters. This initiative aligns with the Marine Corps' H-1 modernization strategy, emphasizing the integration of enhanced capabilities to increase the fleet's lethality, digital interoperability, and survivability. Each upgrade is accompanied by dedicated Software Configuration Set (SCS) development, robust cybersecurity protocols, and thorough testing to address hazard reports and maintain platform integrity.

Follow-on H-1 Improvements will be developed using cost plus fixed fee type contracts.

Project 3359 — H-1 Improvements
  • Product Development
  • Support
  • Test and Evaluation
  • Management Services
Ask Hitch

Ask this program element

Answers are generated from the figures on this page — the FY2027 justification exhibits and the marks tracked above — and nothing else is consulted. Confirm any figure against the cited exhibit before you use it externally.

H
Questions this page can answer
How does the FY2027 request compare with FY2026, and what does the five-year plan show?What did the FY2027 NDAA committees do to this request?How is the FY2027 request split between industry and government performers?In plain terms, what is this program element for and how is it being acquired?

This page carries the budget justification and the NDAA marks — nothing else. For what NAWCAD has actually been obligated, the ledger is at hitchintel.com/vendors; for live solicitations, hitchintel.com/opportunities. Both are member surfaces.

Provenance

Cite this page

Sources
FY2027 Department of the Navy RDT&E Budget Justification · Exhibits R-2 / R-3 · PE 0604245M (President's Budget PB2027) — and FY2027 NDAA committee marks, as tracked 2026-07-27.
Suggested citation
HitchAI, "H-1 Upgrades (PE 0604245M)," federal budget intelligence, PB2027 vintage. hitchintel.com/programs/0604245M
Machine access
Markdown twin /programs/0604245M.md · MCP mcp.hitchintel.combudget_get_program_element, budget_get_cong_marks