Defense Secretary Robert Gates on Thursday told airmen in Southwest Asia that the Pentagon will be no slouch when it comes to negotiating a contract with Boeing for a new aerial refueling aircraft, according to press reports. “We will certainly be sharpening our pencil,” Gates told members of the 380th Air Expeditionary Wing during a townhall meeting at an air base in the war theater. Northrop withdrew from the Air Force’s KC-X tanker competition on Monday, leaving Boeing as the sole company left to bid. The company intends to offer its NewGen Tanker model. Gates said he was disappointed that Northrop left. “I wish that we had had a competition,” he said. But there’s no reason why Northrop’s move should add further delays to the KC-X program, he said. (AFPS report by Jim Garamone) (See also AFP’s report)
Pentagon Releases Cost of Living, BAH Rates for 2026
Dec. 30, 2025
The Pentagon will pay cost of living allowances to 127,000 service members in the continental U.S. in 2026, an increase of 66,000 members in 2025. Airmen and Guardians across the U.S. will also receive an average increase of 4.2 percent for their Basic Housing Allowance, compared to the 5.4 percent…

