Part I: Quantum Computing Initiatives Totaling $350 Million
The Department of War has announced new initiatives and programmatic updates amounting to approximately $350 million to advance U.S. leadership in quantum computing for national security applications. The announcement, made on Oct. 8, 2026, builds on President Donald J. Trump’s directive to prioritize American leadership in quantum information science, established under Executive Order 14413.
According to the Department, the Office of the Under Secretary of War for Research and Engineering (R&E) will intensify efforts to identify mission‑relevant applications of quantum computing as capable systems emerge. The Department expects quantum‑enabled advances in chemistry, materials science, and physics to support next‑generation weapons, platforms, and other critical capabilities.
“Dominance in quantum information science is a critical priority for both President Trump and the Department of War. Maintaining American leadership in this field is essential to preserving our technological edge, and R&E is uniquely positioned to drive the innovation needed across academia and industry,” said Emil Michael, Under Secretary of War for Research and Engineering.
The initiatives will complement national programs led by the Department of Energy, the National Science Foundation, and NASA. DARPA, working with DOE’s Office of Science, the National Nuclear Security Administration, and the Laboratory for Physical Sciences, will host application workshops before January 2027 to identify high‑value use cases and accelerate industrially relevant quantum advantage.
DARPA also announced that four prospective quantum‑computing providers have advanced to Stage C of its Quantum Benchmarking Initiative, representing roughly $200 million in new funding. Stage C will focus on validating whether utility‑scale quantum‑computer concepts can be built and operated as designed.
A strong quantum industrial base, the Department noted, is essential to maintaining U.S. leadership. As part of this broader effort, the Department’s Office of Strategic Capital (OSC) announced a separate $150 million conditional loan commitment to PsiQuantum to support domestic manufacturing and prototyping—details of which form the second part of this combined report.
Part II: $150 Million Conditional Loan Commitment With PsiQuantum
In a parallel announcement on Oct. 8, 2026, the Department of War’s Office of Strategic Capital confirmed a $150 million conditional loan commitment to PsiQuantum Corp. The financing is intended to bolster the company’s advanced manufacturing and prototyping capabilities in the United States and supports its photonic approach to developing a fault‑tolerant quantum computer.
The proposed loan builds on OSC’s collaboration with DARPA’s Quantum Benchmarking Initiative and follows recent funding agreements with DARPA and CHIPS. The Department framed the investment as part of President Trump’s mandate to accelerate development and commercialization of quantum computing, which it described as a foundational technology for future economic and military advantage.
“OSC’s proposed transaction with PsiQuantum directly aligns with President Donald J. Trump’s mandate to accelerate development and commercialization of quantum computing. Quantum computing will provide transformational capabilities, and the Department of War’s investment into PsiQuantum serves the mission of securing U.S. leadership in quantum computing in full alignment with Department of War objectives set forth by Secretary of War Pete Hegseth,” said David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg.
“Funding the development of fault‑tolerant quantum computing is a national security imperative,” added Peter B. Zuckerman, Senior Managing Director at OSC. “We must scale this critical technology to secure our technological edge and deny adversaries a decisive strategic advantage.”
Under Secretary Emil Michael also praised the collaboration, stating: “I applaud OSC for this strategic collaboration with DARPA and CHIPS, which demonstrates how the Department of War is moving at breakneck speed to meet President Trump’s directive that the United States must lead in quantum. Quantum computing will shape the future of warfare and fundamentally change how the Joint Force solves its most complex operational challenges.”
The conditional loan commitment requires PsiQuantum to meet customary financial, legal, technical, due‑diligence, and other requirements before financial close.
