Japan Boosts Defense Spending to Historic High with Focus on Maritime and Missile Capabilities

Japan has officially submitted its largest-ever defense budget request for the fiscal year 2026, totaling ¥8.8 trillion, or approximately $60.2 billion. This unprecedented move reflects the country’s growing concern over regional security threats, particularly from China, North Korea, and Russia. The proposed budget signals a significant shift in Japan’s defense posture, emphasizing deterrence, modernization, and strategic readiness.

Photo: JMSDF/Japan MoD

The increase in defense spending is part of Japan’s broader effort to enhance its military capabilities in response to escalating tensions in the Indo-Pacific region. China’s assertive maritime activities, North Korea’s missile tests, and Russia’s unpredictable behavior have all contributed to Japan’s reassessment of its national security strategy. By allocating more resources to defense, Japan aims to bolster its ability to respond to emerging threats and maintain regional stability.

One of the most ambitious components of the budget is the development of a layered coastal defense system known as “SHIELD.” This system will integrate unmanned aerial vehicles (UAVs), unmanned surface vessels (USVs), and unmanned underwater vehicles (UUVs) to create a comprehensive surveillance and strike network. The use of advanced drones such as the V-BAT and compact USVs will enable Japan to monitor and defend its maritime borders more effectively.

The SHIELD initiative represents a technological leap in Japan’s defense strategy, combining automation, artificial intelligence, and real-time data sharing. These unmanned systems will be deployed to detect and neutralize potential threats before they reach Japanese shores. By investing in autonomous platforms, Japan is positioning itself at the forefront of modern warfare and reducing reliance on traditional manned operations.

In addition to unmanned systems, Japan plans to expand its naval fleet with the construction of new warships. A next-generation multirole frigate, referred to as the “New FFM,” will be built as an upgraded version of the Mogami-class vessels. This frigate will feature enhanced combat systems, improved stealth capabilities, and greater operational flexibility to address diverse maritime challenges.

The budget also includes funding for two new Aegis-equipped vessels, known as ASEVs, which will replace the previously canceled Aegis Ashore missile defense program. These ships will serve as mobile missile defense platforms, capable of intercepting ballistic threats from North Korea and other adversaries. Their mobility offers strategic advantages, allowing Japan to reposition its missile defense assets as needed.

Japan’s submarine fleet will also see expansion with the planned construction of the tenth Taigei-class submarine. This advanced diesel-electric submarine will incorporate cutting-edge sonar systems and improved underwater endurance. Alongside it, Japan will build a seventh Awaji-class mine countermeasure vessel to enhance its ability to detect and neutralize naval mines.

The modernization of Japan’s helicopter carriers, Izumo and Kaga, is another key element of the defense budget. Both vessels will be retrofitted to accommodate F-35B short takeoff and vertical landing (STOVL) fighter jets, transforming them into de facto aircraft carriers. This upgrade will significantly enhance Japan’s power projection capabilities and provide greater flexibility in responding to regional contingencies.

By enabling the operation of F-35Bs from its carriers, Japan is aligning its naval aviation capabilities with those of its allies, particularly the United States. The integration of these stealth fighters will allow Japan to conduct air operations from sea, extending its reach and improving its ability to defend remote islands. This move also reflects Japan’s commitment to interoperability and joint operations with partner nations.

Missile development and deployment form another major focus of the proposed budget. Japan plans to mass-produce an extended-range version of the Type 12 surface-to-ship missile, which will be capable of striking targets at greater distances. This enhancement is aimed at deterring potential aggressors and providing Japan with a credible long-range strike option.

In addition to the Type 12 missile, Japan is developing submarine-launched cruise missiles to increase its underwater strike capabilities. These missiles will allow Japanese submarines to engage targets from concealed positions, adding a layer of unpredictability to its defense strategy. The deployment of such weapons marks a significant evolution in Japan’s offensive capabilities.

Japan also intends to equip its Aegis destroyers with Tomahawk cruise missiles, further expanding its long-range precision strike arsenal. These missiles, sourced from the United States, will enable Japan to target enemy installations and command centers with high accuracy. The inclusion of Tomahawks underscores Japan’s shift toward proactive defense measures.

A notable aspect of Japan’s missile defense strategy is its collaboration with the United States on the development of the Glide Phase Interceptor (GPI). This advanced system is designed to intercept hypersonic missiles during their glide phase, a capability that few countries currently possess. The joint development of GPI reflects the deepening security ties between Japan and the United States.

The GPI project is part of a broader effort to counter the growing threat of hypersonic weapons, which are difficult to detect and intercept due to their speed and maneuverability. By investing in this technology, Japan aims to stay ahead of emerging threats and protect its territory from sophisticated missile attacks. The partnership with the United States also ensures access to cutting-edge research and development.

Overall, Japan’s defense budget request for 2026 represents a comprehensive and forward-looking strategy to enhance its national security. The emphasis on unmanned systems, naval expansion, missile development, and international collaboration reflects a multifaceted approach to defense. Japan is not only responding to current threats but also preparing for future challenges in an increasingly complex security environment.

This budget marks a turning point in Japan’s defense policy, signaling a departure from its traditionally restrained military posture. The scale and scope of the proposed investments indicate a willingness to take on a more active role in regional security. Japan’s actions are likely to influence the strategic calculations of other countries in the Indo-Pacific.

As Japan continues to modernize its Self-Defense Forces, it must also navigate domestic and international concerns about its evolving military role. Balancing constitutional constraints with the need for robust defense capabilities remains a delicate task. Nonetheless, the 2026 budget proposal demonstrates Japan’s resolve to safeguard its sovereignty and contribute to regional peace.

In the face of growing geopolitical uncertainty, Japan’s defense strategy is becoming more assertive and technologically advanced. The integration of new platforms, weapons systems, and strategic partnerships reflects a clear vision for the future. Japan is positioning itself as a capable and reliable security actor in the Indo-Pacific region.

The success of this ambitious defense plan will depend on effective implementation, sustained funding, and continued public support. Japan’s leaders must communicate the rationale behind these investments and ensure transparency in their execution. If managed well, the 2026 defense budget could redefine Japan’s role in global security for years to come.