The available figures do not establish that the VC-25B program is currently $2 billion over budget. Boeing reported increases in its expected loss on the development contract in 2024 and 2025, while government reports describe technical rework and schedule delays. Those facts explain why the program has been difficult and costly for Boeing, but they are not a current total for the government program. The latest schedule information cited here is also more favorable than the delay projection GAO reported in 2025.
What the $2 billion figure does—and does not—mean
“Air Force One” is commonly used for the presidential aircraft, but the formal program replacing the current planes is the VC-25B Presidential Aircraft Recapitalization. It converts two commercial Boeing 747-8s into specialized presidential aircraft. Boeing’s 2025 Form 10-K describes its firm fixed-price Engineering and Manufacturing Development (EMD) contract for the two aircraft as worth about $4 billion.
That contract value, Boeing’s expected contract loss, and the Air Force’s total program cost are different measures. Boeing’s filing reports annual changes in the company’s estimate of what it expects to lose on the contract; it does not state that the government’s program cost has risen by the same amounts or establish a current cumulative overrun of $2 billion.
| Figure or measure | What it refers to | What it does not establish |
|---|---|---|
| About $4 billion | Boeing’s stated value for its firm fixed-price EMD contract for the two modified aircraft, in its 2025 Form 10-K. | The Air Force’s total program cost or the amount it is over budget. |
| $379 million | The increase in Boeing’s expected contract loss during 2024. Boeing attributed it primarily to engineering design changes involving wiring and structural requirements. | A $379 million increase in the government’s total program cost. |
| $60 million | The increase in Boeing’s expected contract loss during 2025, which Boeing attributed to higher supplier costs. | A complete or cumulative accounting of the program’s cost growth. |
| “$2 billion over budget” | A headline figure that needs a defined measure and an as-of date to be evaluated. | The primary figures described above do not verify it as the current cumulative overrun. |
A firm fixed-price contract generally puts the contractor at risk when its costs exceed the agreed price. Boeing’s loss estimate can therefore increase as its forecast costs change without that increase being the same as a new government appropriation or the Air Force’s overall program overrun. The sources cited here do not provide a current, comparable Air Force total-program figure that would settle the $2 billion claim.
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Why converting the 747-8 has proved difficult
The VC-25B is not a routine cabin refit. The two aircraft need specialized presidential communications, military avionics, electrical and structural changes, secure executive interiors, a medical facility, self-defense systems and other capabilities. Integrating those systems into the aircraft requires design, installation, repair and testing—not simply adding equipment to an otherwise finished commercial plane.
Design changes and installation rework
Boeing identified engineering design changes involving wiring and structural requirements as the primary reason for its larger expected-loss estimate in 2024. In its June 2025 assessment, the Government Accountability Office (GAO) also described remaining wiring design and installation work, along with cabin-decompression and environmental-control design problems.
GAO reported that Boeing shifted effort from implementing new modifications toward clearing a rework backlog and completing existing designs. When installed work must be revisited or a design is not ready to implement, labor and time are diverted from moving the aircraft through modification and testing. GAO connected these issues with slower progress but did not assign a separate dollar amount to each cause.
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Workforce and supplier pressures
GAO said program officials cited workforce challenges as one reason progress slowed; its assessment did not quantify a staffing shortfall. Separately, Boeing attributed its 2025 increase in expected contract loss to higher supplier costs, without identifying particular suppliers, parts or a dollar breakdown for them.
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Crack repairs and other aircraft work
GAO reported that stress-corrosion cracks found on the commercial 747-8 fleet affected locations on the VC-25B aircraft and required repair and continued inspection. It also said unplanned maintenance tasks could affect material availability and had to be completed before the first flight. The 2025 assessment does not establish that the cracks made the aircraft unsafe.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How the schedule changed
The schedule figures refer to different dates and baselines, so they should not be treated as interchangeable forecasts.
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| Source and date | Schedule statement | How to read it |
|---|---|---|
| GAO, June 2025 | A Boeing schedule provided in February 2024 projected delivery in December 2029, 2.5 years later than the schedule then in effect. | A historical projection reported by GAO, not the latest outlook. |
| U.S. Air Force, May 2026 | The Air Force said Boeing’s VC-25Bs were then expected in 2028, a year earlier than the updated schedule it referenced. | A later Air Force estimate; the announcement does not give a definitive contractual delivery date for each aircraft. |
In its 2025 assessment, GAO cited unfinished design and aircraft modification as schedule risks and said a full schedule and risk assessment were still being developed at that time. The Air Force’s later 2028 estimate is therefore a newer outlook, not proof that every remaining technical or schedule risk has been resolved.
What the Bridge aircraft changes
The Air Force has also modified a separate 747-8i as a VC-25B Bridge aircraft. In May 2026, it said modification and flight testing were complete and that the aircraft was being prepared for delivery. In June 2026, the Air Force Life Cycle Management Center reported that it had arrived at the Presidential Airlift Group for commissioning flights.
The Bridge aircraft is intended to provide interim presidential airlift while Boeing completes the two long-term VC-25Bs. It is a separate aircraft and does not replace the two-aircraft Boeing EMD contract or resolve the question of the program’s total cost.
What can be concluded about the overrun
The strongest supported explanation is that a demanding aircraft conversion, design changes, rework, workforce challenges, supplier costs and additional aircraft work have contributed to slower progress and higher expected costs for Boeing. The exact cumulative VC-25B loss and a comparable Air Force total-program overrun as of October 8, 2026 are not established by the figures cited here. In particular, Boeing’s annual expected-loss increases cannot be added together and relabeled as the government’s total overrun.
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