The United States Air Force is acquiring a VIP-configured B737-8 using USD250 million budgeted under the fiscal 2026 National Defense Authorization Act (NDAA), covering the period between October 1, 2025, and September 30, 2026, to expand the service's C-40 fleet based on the B737-700(BBJ). The aircraft will become the first military variant of the type and will be acquired directly through Boeing. While no delivery timeline has been set, Air Mobility Command posted a solicitation in July for training services to support the induction and operation of a B737-8 as an urgent requirement. The contract is expected to take effect on November 1.

The air force operates a total of thirteen C-40s: four C-40Bs and nine C-40Cs. Plans to replace them with MAX aircraft had previously been blocked. In 2025, the service explored acquiring B737-9s, which were expected to be designated as the C-40D, to expand the current fleet of four B757-200(C-32A)s. The contract award was scheduled for September 2025, with delivery expected in August 2028, using USD329 million allocated under the fiscal 2025 NDAA.