Army eyes cancellation of new logistics boat, halting TOW missile buys

Army Secretary Daniel Driscoll said the transformation push is expected to free up $48 billion over the next five years.

May 21, 2025 - 00:15
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Army eyes cancellation of new logistics boat, halting TOW missile buys
MSV1

The Army’s Maneuver Support Vessel – Light, MSV(L) (Vigor LLC photo)

WASHINGTON — The Army is considering cancelling its new logistics ship and ending procurement of the Tube-launched, Optically Tracked, Wire-guided (TOW) missile, Breaking Defense has learned. 

Both possible decisions were listed in an execute order (EXORD) from Army headquarters, dated May 7 and obtained by Breaking Defense. The potential changes are part of a major service overhaul, which Secretary Daniel Driscoll this week said will “unlock” savings to “recycle” into other priorities.

Driscoll, speaking Monday to a small group of local reporters in Huntsville, Ala., said the Army Transformation Initiative (ATI) unveiled earlier this month is expected to provide $48 billion in savings over the next five years. Dollars found from cuts to force structure and programs like the M10 Booker light tank, the Joint Light Tactical Vehicle and the Robotic Combat Vehicle are slated to fund other priorities like counter-unmanned aerial systems and electronic warfare.

However, potential cuts to the Maneuver Support Vessel-Light (MSV-L) and TOW have not been previously reported.

The MSV-L was planned to replace the aging Landing Craft Mechanized-8 (LCM-8). Since 2017, the Army and Oregon firm Vigor Works have been working under a 10-year contract with plans to build 13 MSV-Ls for operations in the Indo-Pacific. While there had been cost overruns and design problems with the first prototype that sidelined testing, the boat program had been moving forward. 

However, according to the EXORD, program officials are now being asked to draw up options to halt MSV-L procurement, including an implementation plan with an associated timeline. 

Also new on the chopping block are all TOW missile buys. According to fiscal 2025 budget request documents, the service had planned to spend roughly $500 million between FY26 and FY28 on 2,082 TOW 2 missiles.

“TOW missiles continue to be used as the weapon of choice in precision combat engagements … [and] are also the primary heavy anti-armor/ assault missile for the U.S. Marine Corps (USMC) and more than 43 allied nations,” the service wrote in its FY25 justification documents. “Warfighters also employ TOW missiles against buildings and field fortifications, taking advantage of the missile’s precision assault capabilities.”

The document also sheds new light on planned cuts to two BAE System production lines. Specifically, it notes that in FY26 the service is interested in lopping off $498 million from the Armored Multi-Purpose Vehicle (AMPV) production line and $233 million from the Paladin Integrated Management (PIM) howitzer program.

Related to ground vehicles, by the end of September the Army is interested in ceasing all electrification research, along with all procurement of anti-idle capabilities.

The Army’s Synthetic Training Environment is also aligned for a possible $62 million cut in FY26, while $50 million may be stripped away from its geospatial center, according to the EXORD.