The Air Force says it is moving forward with plans to have Sikorsky build a new combat rescue helicopter but the program could still face major hurdles.
The Air Force says it will take $430 million from other priorities to support the contract with the Stratford, Conn.-based division of United Technologies Corp.
It said in a statement Tuesday that the contract for the helicopter designed to carry out personnel recovery missions is expected to be signed by June.
Air Force Secretary Deborah Lee James said the contract can be awarded because funding was provided by Congress but the program "could still face significant challenges to keeping this effort on track." She cited concerns about Pentagon budget cuts.