U.S. Navy Cancels Critical HALO Hypersonic Missile Citing Budget Constraints

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Blow to Long-Range Strike Capabilities as Navy Reprioritizes Weapons Programs

By Staff Writer | Defense 

Washington, D.C. — In a surprising move that reverberated across the defense sector, the U.S. Navy has officially cancelled the development of its Hypersonic Air-Launched Offensive (HALO) missile, citing prohibitive costs and shifting budget priorities. The HALO program was a central component of the Navy’s high-priority Offensive Anti-Surface Warfare Increment 2 (OASuW Inc 2) program.

Rear Adm. Stephen Tedford, who heads the Program Executive Office for Unmanned Aviation and Strike Weapons, confirmed the decision in a statement to Naval News.

“The Navy cancelled the solicitation for the Hypersonic Air-Launched Offensive Anti-Surface Warfare (HALO) Engineering and Manufacturing Development (EMD) effort in fall 2024 due to budgetary constraints that prevent fielding new capability within the planned delivery schedule,”
— Rear Adm. Stephen Tedford

End of a ‘Critical’ Capability

The cancellation marks a major strategic shift, effectively removing a next-generation capability from the Navy’s arsenal. HALO was expected to provide standoff, high-speed strike capabilities against enemy warships and high-value surface assets, extending the Navy’s reach and deterrence in contested maritime domains.

Designed to operate from carrier-based aircraft, HALO was being developed as a complement to the Lockheed Martin Long Range Anti-Ship Missile (LRASM), which currently serves as the Navy’s primary anti-surface weapon under OASuW Increment 1.

The HALO system was regarded as a “critical” future asset meant to address evolving threats, and it was originally scheduled to reach Early Operational Capability (EOC) by FY29 and Initial Operational Capability (IOC) by FY31.

Focus Shifts to LRASM

Instead of HALO, the Navy will now focus on upgrading the AGM-158C LRASM, which is already operational on the F/A-18 Super Hornet and Air Force B-1B Lancer platforms.

“The Navy is committed to its investment in Long Range Fires to meet National Defense objectives,” Tedford said. “Priority emphasis [is] on fielding continued capability improvements to the AGM-158C Long Range Anti-Ship Missile (LRASM).”

While LRASM lacks the extreme speed and range of the envisioned HALO, it benefits from mature technology and lower costs, and the Navy plans to enhance its hardware and software to close the gap.

Cost and Industry Pressures Behind Decision

According to officials, the cancellation came after internal reviews revealed that HALO’s development was increasingly expensive and difficult to deliver on schedule.

“The decision was made after the Navy conducted a careful analysis, looking at cost trends and program performance across the munitions industrial base,” Tedford said, emphasizing the balance between affordability and capability.

Industry Reaction and Uncertainty

HALO’s prime contractor, believed to be Northrop Grumman, had earlier indicated at the Sea-Air-Space 2025 conference that the program was “on hold.” The final decision now confirms widespread industry speculation that HALO had become a budget casualty.

The cancellation leaves questions about the future of U.S. hypersonic air-launched strike capabilities at a time when rival nations like China and Russia are pressing forward with their own hypersonic weapon systems.

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What’s Next?

As budget pressures mount and the U.S. defense establishment pivots toward affordability and near-term readiness, the Navy’s decision underscores the growing challenge of balancing innovation with fiscal discipline. While the LRASM will see further investment, the long-term vision for a hypersonic anti-ship missile may now hinge on future funding cycles—or the emergence of a new program altogether.