Major Federal Defense Projects Advance Across Arizona

Recent federal defense spending legislation is delivering a slate of major military construction projects across Arizona, addressing critical infrastructure, family services, and operational needs at key installations.

The projects and associated funding were recently highlighted by Arizona U.S. Senators Mark Kelly and Ruben Gallego, following passage of the National Defense Authorization Act for fiscal year 2026.

Kelly’s announcement emphasized funding for a new Child Development Center at Luke Air Force Base, water system upgrades at Marine Corps Air Station Yuma, and a new Communications Squadron headquarters along with an aircraft hangar and maintenance facility at Davis-Monthan Air Force Base.

Gallego highlighted his role in advancing the Senate Military Construction and Veterans Affairs Appropriations bill, which operates within the NDAA framework. The MilCon-VA measure includes the Luke and Davis-Monthan projects among its designated “Arizona Priorities,” as well as funding for programs addressing veteran homelessness, health care, and family support.

Luke Air Force Base Child Development Center

Earlier this month, a local news outlet reported that President Donald Trump signed the annual Agriculture and Rural Development funding bill into law, which includes $22 million for construction of a new Child Development Center at Luke.

The existing facility is outdated and undersized for the installation’s growing population. The new center is planned to serve between 250 and 300 children, ranging from infants to preschoolers. Kelly’s office lists total funding for the project at $45 million, reflecting additional planning and design funds secured through prior defense bills.

According to the report, the MilCon-VA package provides nearly $19.8 billion nationwide for military construction and family housing in fiscal year 2026. The National Military Family Association has cited average wait times of six to 12 months for on-base child care, noting the impact on servicemember readiness and retention.

Marine Corps Air Station Yuma

The approved funding measures also include $26.1 million to design a replacement for MCAS Yuma’s aging water treatment plant. According to Kelly’s press release, the existing system has been identified by the Marine Corps as posing potential health risks to servicemembers and their families.

A Sources Sought notice issued by the Department of the Navy outlines plans for a new treatment plant capable of producing up to five million gallons of potable water per day. The project scope includes a new intake structure tied to a Bureau of Reclamation water source, a production well, three water storage tanks totaling 7.5 million gallons, and a low-rise steel-frame structure with concrete masonry and cast-in-place exterior walls. Cybersecurity, control systems, and antiterrorism features are also included.

While the solicitation did not list a project value, it required bidders to demonstrate experience on projects exceeding $100 million. A December 2024 release from Kelly’s office places the total cost at $261.1 million.

Davis-Monthan Air Force Base

Both senators promoted two major projects at Davis-Monthan: a new Communications Squadron headquarters and a hangar and maintenance facility for MC-130J aircraft.

The MC-130J, a special operations variant of the C-130J Super Hercules, supports low-visibility infiltration, exfiltration, resupply, and aerial refueling missions in sensitive or hostile environments. Kelly’s office lists $50 million in funding for the hangar, while Gallego’s announcement cites $125 million.

A solicitation for the hangar describes a design-bid-build project consisting of a two-bay aircraft hangar with concrete foundations, a steel high-bay structure, standing-seam metal roofing, cranes, motorized hangar doors, and integrated fire suppression systems, including water storage tanks. The project value is estimated between $100 million and $250 million.

Separately, a Sources Sought notice issued in December seeks market research and Project Labor Agreement input for the design-build Communications Squadron headquarters facility.

It remains unclear how recent legal and policy challenges affecting Project Labor Agreement expansion under the Biden administration could influence the procurement process for this project.

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