Disclosed Defence Money for Quantum Computing Roughly Doubled to Tripled in 2026 on Two Announced DARPA Deals

Introduction

In the first half of 2026 the United States Department of Defense’s disclosed spending on quantum‑computing projects surged dramatically. Compared with the 2023‑2025 average, the total announced value more than doubled and, in some calculations, nearly tripled. The spike is not the result of a broad budget increase; it stems almost exclusively from two high‑profile DARPA agreements – one with PsiQuantum and another with the Australian firm Diraq. At the same time, the amount of money formally obligated on the federal contract register continued to decline.

Where the numbers come from

The analysis separates two streams of funding:

• Obligated money – amounts recorded in USAspending and the Federal Register, representing contracts or grants that have been formally funded.
• Announced money – values disclosed by companies in press releases or filings that have not yet appeared on the official register.

From 2023 to 2025, defence quantum‑computing spending hovered in the tens of millions of dollars per year (about $80 M in 2023, $38 M in 2024, $67 M in 2025). In 2026, disclosed totals rose to either $157 M or $188 M, depending on whether PsiQuantum’s $125 M deal includes its earlier $32 M award. The bulk of this increase – roughly $120 M‑$150 M – is attributable to the two DARPA contracts. By contrast, obligated spending fell from $35 M in 2025 to $12 M so far in 2026.

The two DARPA deals that drive the surge

| Company | Announced value | Program stage | Notes | |---|---|---|---| | PsiQuantum | $125 M (potentially plus $32 M from 2025) | Final stage of the Quantum Benchmarking Initiative | Aims to demonstrate a quantum computer that outperforms classical alternatives by 2033. | | Diraq | $51 M (first tranche) | Same DARPA programme | Australian silicon‑qubit startup; the agreement caps at $300 M for full verification and validation work. |

Both contracts sit in DARPA’s final stage, where each firm can receive up to $300 M – a ceiling, not a guaranteed payment. The other four firms in the final stage (IBM, IonQ, Atom Computing, Microsoft) have only disclosed potential caps, not firm commitments.

Why the rise may be more about disclosure than new money

Several factors temper the headline‑grabbing figures:

1. Caps vs. cash – The $300 M limits for each final‑stage firm represent maximum possible awards. Only PsiQuantum and Diraq have named concrete amounts.
2. Earlier, unpriced agreements – DARPA’s prior deals with Microsoft and PsiQuantum lacked published values, meaning earlier spending may have been under‑reported.
3. Obligated spending decline – The official contract register shows a drop in obligated funds, suggesting that the apparent boom is largely a matter of newly disclosed intent rather than actual outlays.

Practical takeaways

• Policy makers should treat the 2026 jump as a signal of heightened interest rather than a permanent budget expansion. Future appropriations will determine whether the announced caps become real expenditures.
• Industry observers can view the PsiQuantum and Diraq agreements as benchmarks for what the defence community is willing to fund in the near term – large, milestone‑driven payments tied to demonstrable progress.
• Researchers and universities may see a shift in funding sources: while early‑year dollars largely went to academic labs, 2026 marks a transition toward corporate‑led projects, especially in photonic and silicon‑qubit technologies.

Closing thoughts

The 2026 surge in disclosed defence quantum‑computing funding underscores how a few high‑visibility contracts can reshape headline numbers. Yet the underlying budget reality remains modest, with obligated spending still low and many programme caps unfilled. Stakeholders should watch how DARPA translates these announced figures into actual payments and whether the momentum leads to sustained investment beyond the headline‑making deals.