Picatinny Arsenal Faces Uncertain Future Under Army Restructuring Plan

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A proposed Pentagon realignment could eliminate 1,000 jobs and shift $1.5 billion from New Jersey’s leading armament facility, sparking concerns over national defense readiness and economic stability.

The U.S. Army’s proposed transformation of its acquisition enterprise is drawing sharp concern from New Jersey officials, who warn that the plan could destabilize one of the military’s most vital weapons development hubs—Picatinny Arsenal in Morris County.

Governor Phil Murphy and the majority of New Jersey’s Congressional delegation are pressing the Department of Defense for clarity on the Army Transformation Initiative, a sweeping reform that would consolidate the Army’s twelve Program Executive Offices (PEOs) into seven new Capability Executive Offices (CEOs). According to state leaders, the reorganization could dismantle the integrated structure that has allowed Picatinny to oversee the full lifecycle of munitions—from research and development to procurement and sustainment—placing both jobs and national defense capabilities at risk.

Under the current proposal, approximately $500 million in annual research and development funding and nearly $1 billion in program funding could be reallocated from Picatinny Arsenal to other locations across the country. This would potentially eliminate up to 1,000 skilled positions and strip Picatinny of key responsibilities currently managed through the Joint Program Executive Office for Armaments and Ammunition (JPEO A&A).

“Removing this critical mission from Picatinny would not only dismantle a uniquely capable and proven center of excellence – it would result in poorer weapons being delivered to our soldiers, compromising their safety and weakening our battlefield effectiveness for generations to come,” Governor Murphy stated in a letter to U.S. Secretary of Defense Pete Hegseth and U.S. Secretary of the Army Daniel Driscoll.

Picatinny Arsenal, with a workforce of over 6,000 military, civilian, and contractor personnel, has served as the Army’s central armament facility for more than 140 years. It houses highly specialized engineers and scientists, as well as the Army’s Armaments Graduate School, and plays a leading role in the delivery of modern, combat-ready weapons to the Army and other military branches.

The proposed restructuring would transform the JPEO A&A into a Capability Executive Office for Ammunition. According to state officials, this would break up Picatinny’s unified model by redistributing responsibilities across multiple CEOs, complicating integration, and potentially slowing development timelines. Critics argue that the change would reintroduce the fragmentation that plagued Army acquisition systems before Picatinny’s vertically integrated structure was adopted.

Governor Murphy, along with Representative Mikie Sherrill and other members of New Jersey’s congressional delegation, is requesting a full briefing on the restructuring proposal by August 1, 2025. Among the questions posed to the Department of Defense are:

  • What analysis was conducted to justify dismantling JPEO A&A?

  • What goals is the Army pursuing through this reorganization?

  • What are the projected costs and job losses?

  • Was there consultation with Congress or local communities?

The concerns extend beyond military readiness. Picatinny is a major economic engine for Morris County and the state at large. Its potential downsizing or mission loss could reverberate throughout the region, affecting local businesses and communities that rely on the Arsenal as a primary employer.

Senate Republican Leader Anthony Bucco echoed the bipartisan apprehension, stating, “Picatinny serves as a major economic engine for our region and the state, providing high-quality careers for thousands of New Jerseyans. The Army’s proposed restructuring… not only threatens the loss of approximately 1,000 jobs but also risks the innovation and expertise that have made Picatinny a national asset.”

At stake, state leaders argue, is not just New Jersey’s economic well-being but the operational integrity of the Department of Defense’s conventional munitions enterprise. The Arsenal’s cradle-to-grave acquisition model is seen as essential in bridging what defense experts call the “valley of death”—the critical gap between early-stage research and production deployment. Dismantling this model, officials warn, could result in delays and inefficiencies that undermine military preparedness.

Governor Murphy emphasized the national implications of the issue, stating, “The future of Picatinny Arsenal is not just a New Jersey issue, it is a matter of national defense.”

The Army has not yet issued a formal response to the concerns raised by state officials or scheduled the requested briefing. Until more details are provided, uncertainty looms over Picatinny Arsenal’s role in the future of U.S. military modernization and the security of thousands of New Jersey jobs.



Aerial view of Picatinny Arsenal in 1937
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