US redirects $1.6bln in Ukraine aid to boost shell production
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A review of the US Army's 2026 budget shows that over $1.6 billion in Ukraine aid has been used to bolster domestic arms manufacturing and 155mm shell production.
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Ukrainian servicemen of the Khartia brigade, preparing the M101 Howitzer on March 12, 2025 (AP)
More than $1.6 billion in Ukraine aid has been redirected by the United States to strengthen domestic arms manufacturing and shell production, according to an analysis by a RIA Novosti correspondent of the US Army’s fiscal year 2026 budget on Wednesday.
Funds originally allocated in 2024 have been redirected to ramp up production of 155mm artillery shells, a NATO-standard caliber vital to Ukrainian forces who are facing an ongoing supply shortage.
According to newly reviewed budget documents, the US Army’s 2026 financial plan outlines how aid earmarked for Ukraine is also being used to strengthen the US's defense industrial base. Notably, more than $623 million is set aside for the construction of a new Trinitrotoluene (TNT) production facility. Once operational, the plant is expected to produce five million pounds of TNT annually, reducing US dependence on foreign suppliers and securing a key component in the manufacturing of 155mm shells.
These developments come as artillery demand in Ukraine continues to surge, reflecting a broader US strategy aimed at maintaining military readiness and ensuring consistent munitions availability for both allied and US forces.
Breakdown of major defense industry investments
The TNT facility is intended to supply explosives essential to 155mm artillery rounds. As US stockpiles are drawn down to support Ukraine, this facility seeks to ensure uninterrupted production and mitigate supply chain risks.
Another $600 million has been allocated to the Holston Army Ammunition Plant to expand production of IMX 104, a safer and more stable explosive that replaces legacy compounds. This upgrade targets a capacity of 13 million pounds annually and directly supports both current and future US munitions systems.
The Scranton Army Ammunition Plant, a key producer of 155mm metal parts, received $80 million for design upgrades, facility improvements, and new equipment. These efforts aim to increase automation and production efficiency. An additional $21 million was allocated to nearby General Dynamics facilities for a new forging press to further accelerate shell output.
Additionally, the Lake City Army Ammunition Plant received $100 million to support the production of the Next Generation Squad Weapon (NGSW) 6.8mm round, a new caliber designed for enhanced performance in future combat scenarios. An additional $72 million was set aside for constructing an Automated Contaminated Waste Plant to maintain safe and efficient operations at the Lake City site.
At the Radford Army Ammunition Plant, $93.8 million has been allocated to modernize its solvent propellant production for key materials like M6 and M31A2, intended to rapidly replenish 155mm artillery stocks.
Lastly, $14 million was directed to the Goex facility at Camp Minden, Louisiana, for modernizing black powder production, ensuring the continued availability of niche energetic materials for the US government.
While presented under the banner of Ukraine aid, the $1.6 billion in redirected funding ultimately enhances US domestic defense production capabilities. The investments reflect Washington’s dual-track approach: supporting Ukrainian forces while simultaneously reinforcing long-term US military readiness.
More aid to Ukraine
Meanwhile, Trump confirmed on Tuesday that he had approved the delivery of additional defensive weapons to Ukraine and is weighing new sanctions against Russia, expressing frustration with Russian President Vladimir Putin over the worsening toll of the war.
Speaking during a Cabinet meeting at the White House, Trump said that while he had once believed in diplomacy with Putin, recent battlefield developments and rising casualties have left him disillusioned.
“I’m not happy with Putin. I can tell you that much right now,” Trump said, pointing to the thousands of Russian and Ukrainian soldiers killed during the war. “We get a lot of bullsh*t thrown at us by Putin. … He’s very nice all the time, but it turns out to be meaningless,” he added.
Reports revealed that Trump had campaigned on a promise to end the war in Ukraine within a day. That promise, however, remains unfulfilled as efforts by his administration to broker a peace agreement have stalled.
Read more: Western arms undermine peace, talks await Kiev's response: Kremlin
