Defense Secretary Pete Hegseth’s memorandum of understanding with Qatar enabled the U.S. to receive a $400 million Boeing 747‑8 as a “bona fide gift”, but taxpayers may now face over $1 billion in retrofit expenses and redirected Pentagon funding, ABC News reported Monday.
In early July, Hegseth signed an agreement formally accepting Qatar’s “unconditional donation” of the jet, legally framed as a “bona fide gift” to the Department of Defense. The MoU explicitly states the transfer was made “in good faith… in the spirit of cooperation,” and disclaims any implication of bribery or undue influence.
However, despite the aircraft being cost‑free on paper, the Air Force has been ordered to prepare plans to convert it for presidential use. Although Air Force Secretary Troy Meink testified that retrofitting costs would be under $400 million, lawmakers and aviation analysts estimate the total — including classified security upgrades — could exceed $1 billion.
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During a Senate hearing last month, Sen. Tammy Duckworth (D-Ill) warned the move could “force taxpayers to waste over $1 billion in taxpayer dollars to overhaul this particular aircraft” while two fully capable Air Force One jets remain operational.
Sen. Chris Murphy (D-N.Y.) echoed those concerns, saying: “Why would we ask the American taxpayer to spend upwards of $1 billion on a plane … then transfer directly to the president?”
Critics also highlight the financial opacity surrounding the deal. During a Senate Appropriations hearing, Sen. Jack Reed (D-R.I.) pressed Hegseth on cost disclosures, only to be told that contract details were “not for public consumption.”
On Sunday, the New York Times reported that Air Force officials appear to have disguised the cost of revamping the Qatar‑donated jet by embedding it within the over‑budget Sentinel nuclear missile modernization program.
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A recently revealed $934 million reallocation from the Pentagon’s beleaguered Sentinel ICBM modernization program has alarmed lawmakers, even as officials insist the missile project remains fully funded.