The delays stemmed from late delivery of the TR-3 upgrade — a critical software and hardware improvement designed to enable advanced training and combat capabilities. The Defense Department withheld up to $5 million per aircraft pending demonstration of full TR-3 functionality. Although some funds were released in January, the bulk remain suspended.

The resolution of the delivery backlog marks a public relations win for Lockheed Martin, yet the Pentagon confirmed that additional payments will only be disbursed incrementally as further criteria are met. Lockheed declined to comment ahead of its quarterly earnings report.

“This program is still holding back money until the complete TR-3 is delivered to each aircraft,” said Jon Ludwigson from the Government Accountability Office. He added that delays have disrupted the upgrade timeline and complicated readiness plans.

Broader Troubles In Military Oversight

Despite progress on deliveries, broader problems persist in the F-35 program. For the sixth consecutive year, inventory management issues related to spare parts were cited as a “material weakness” in Pentagon audits. These failures continue to hinder efforts to bring U.S. defense finances into compliance.

The Pentagon has already trimmed its fiscal 2026 purchase request for the jets from 75 to 47 units, citing rising costs and delayed readiness. Even as the TR-3-equipped jets are cleared for delivery, Lockheed and the military face continued pressure to meet both technical benchmarks and fiscal oversight standards.