BERN, — March 27, 2026 : The United States has redirected Swiss payments originally allocated for the F-35A Lightning II program to sustain financing for the MIM-104 Patriot air defense system, effectively bypassing a payment freeze imposed by Switzerland in 2025. The move, executed through the structure of the US Foreign Military Sales (FMS) program, has created financial gaps in Switzerland’s fighter jet procurement and triggered political concern in Bern over the reliability of bilateral defense arrangements.
Payment Freeze and FMS Mechanism
Switzerland suspended advance payments last autumn for five Patriot air defense batteries after the United States informed Bern of delivery delays estimated at four to five years. The delays were attributed to Washington’s reprioritization of Patriot system deliveries to Ukraine and broader global supply chain constraints.
Despite the freeze, US authorities continued to draw funds for the Patriot program by utilizing the FMS system. Under this framework, all payments made by partner countries—including Switzerland—are placed into a pooled account managed by the US Department of Defense. Funds deposited for multiple programs, including both the F-35 fighter aircraft and the Patriot system, are not strictly segregated.
This structure allows US authorities to reallocate funds between programs if one experiences a shortfall. As a result, when Switzerland halted Patriot payments, the United States accessed funds previously deposited for the F-35 program to cover ongoing Patriot-related costs without requiring new transfers from Bern.
Financial Impact on Swiss Procurement
Urs Loher, head of armaments at Switzerland’s federal procurement agency armasuisse, confirmed the reallocation to Swiss public broadcaster SRF. While he did not disclose the exact figure, citing US pressure, he described the amount as a “low three-digit million” sum in Swiss francs, indicating well over CHF 100 million (approximately $126 million).
The diversion of funds has created immediate budgetary gaps in Switzerland’s F-35 acquisition program. To maintain the procurement schedule, the Swiss Federal Department of Defence, Civil Protection and Sport (DDPS) advanced several tens of millions of francs ahead of schedule at the end of 2025 to compensate for the shortfall.
Political and Institutional Response
Swiss officials have expressed dissatisfaction with the development. Loher described the situation as “very unsatisfactory,” noting that while the payment freeze signaled political intent and prompted greater transparency regarding delays, it did not prevent financial outflows tied to the Patriot program.
Political reaction has emerged across party lines. Werner Salzmann, a senator from the Swiss People’s Party, stated that the ease with which the freeze was bypassed was frustrating and had negatively affected trust in US commitments. Members of the Radical-Liberal Party indicated that Swiss authorities may have underestimated the flexibility granted to the United States under the FMS pooled-account structure. The Social Democratic Party has reiterated calls for a reassessment or cancellation of the Patriot acquisition.
Broader Procurement Context and Adjustments
The financial dispute occurs alongside wider challenges in Switzerland’s defense procurement plans under the Air2030 program. Rising costs linked to inflation and raw material prices have already led the Swiss government to scale back its planned purchase of F-35 aircraft from 36 to approximately 30 units in order to remain within the voter-approved budget ceiling of CHF 6 billion.
Separately, the delay in Patriot deliveries has prompted the Swiss Defence Ministry to review alternative long-range ground-based air defense systems. European-produced options, including the SAMP/T system developed by France and Italy, are being evaluated to address capability gaps and reduce reliance on a single supplier.
Ongoing Program Status
Both the F-35 and Patriot acquisitions remain part of Switzerland’s Air2030 modernization initiative. The revised F-35 procurement is continuing within the adjusted quantity, while the Patriot delivery timeline remains subject to the previously announced multi-year delay.
Swiss authorities acknowledged awareness of the FMS pooled funding mechanism, though public communication regarding its implications had been limited prior to the recent disclosures. Further details regarding delivery schedules or additional financial adjustments have not been released.
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