Air and Space Forces are shifting focus from large rockets to smaller reentry capsulesAFRL’s Payload Delivery System is jointly funded by the two servicesSpace Force’s Point-to-Point Delivery program focuses on orbital and suborbital cargo operations

The U.S. Air and Space Forces are jointly funding research into smaller reentry capsules as part of an effort to deliver cargo from space to remote locations, Breaking Defense reported Wednesday.

The funding supports the Air Force Research Laboratory’s Payload Delivery System, which is led by the Space Force and examines the technical challenges involved in moving cargo through space, reentry and delivery to austere locations.

The shift toward smaller reentry capsules adds to ongoing defense research into alternative approaches to space-based logistics. The 2027 Defense R&D Summit, hosted by Potomac Officers Club, will be held Feb. 4 in McLean, Virginia. Sign up now!

How Is the Cargo Delivery Approach Changing?

The current research represents a shift from the Rocket Cargo Vanguard program, an AFRL initiative launched in 2021 that examined the use of large reusable rockets to transport as much as 30 tons of supplies from the U.S. to distant locations.

AFRL has cited several considerations behind the move toward smaller capsules, including the ability to reach different types of delivery sites and unload cargo quickly. A single launch could also carry multiple capsules bound for separate locations.

For fiscal 2027, the Air Force has requested $32.3 million for the Payload Delivery System, while the Space Force is seeking $16.5 million. The services received $30.6 million and $21.2 million, respectively, for the program in fiscal 2026.

What Other Programs Are Supporting the Effort?

The Space Force’s Point-to-Point Delivery program is examining orbital and suborbital cargo missions, with $19.3 million allocated in fiscal 2026 and $9.7 million requested for fiscal 2027.

AFRL also uses its Rocket Experimentation for Global Agile Logistics vehicle for related technology demonstrations. The laboratory awarded Blue Origin $1.3 million and Anduril Industries $1 million under the vehicle in September 2025. A July addition of $11.7 million to Blue Origin’s award brought the company’s total to $13 million.

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