Honda has had a long run in Formula One history. It left the sport in 2021 in hopes of reaching company-wide “carbon neutrality” by 2050. But because of the new 2026 regulations, they were happy to come back to the sport. As we all know, the Honda – Aston Martin team has not been doing too well this season in relation to engine issues.

With the team not doing great, they are being considered for the Additional Development and Upgrade Opportunities (ADUO) program.

The FIA’s ADUO Program

The FIA is allowing an $11m adjustment to the cost cap. They are also handing out a one-time $8m to whoever has the worst engine – in the simplest terms. This money comes from the regulations related to the ADUO program, developed to help teams maintain equal competition by allowing extra development time, resources, and testing. The $19m Honda would be receiving would allow for a lot of upgrades to the engine.

This is determined by using the ICE performance Index. Unfortunately, this method ignores the Energy Recovery System (ERS), making the assessment an electrical grey area. The FIA has admitted to not measuring the full power unit, but refuses to make changes to the process due to complexity issues.

The money allowance for the cost cap is as follows: $11 m for manufacturers who are 10% or more adrift of the benchmark engine. This was previously $8m for manufacturers, 8% or more off. Testing hours have also been increased based on the percentage. It was previously 190 extra testing hours for anyone 8% or more off. It has now been capped at 230 extra hours for anyone 10% or more adrift.

There are three assessment periods. The first was supposed to end after Miami, but due to Bahrain and Saudi Arabia being cancelled in April, they had to move the assessment period to end after the Canadian Grand Prix. The next period runs from Monaco (round 6) to after Hungary (round 11). Then the third period runs from the Netherlands (round 12) to after the Mexican Grand Prix (round 18) in November.

The FIA has stated that there could be tweaks in the process throughout the assessments.

Does the money have to be paid back?

The money from the ADUO works like a loan – not a handout- that will have to be repaid. If Honda takes the money, it will have to borrow money from their future selves. This process is done by reducing the cost cap over the next two seasons, it was claimed, then it gets added on after that.

The repayment will work by being spread out over three seasons. Each year must have a payment of 20%-50%. A payment of more than 50% of the total in one season is not allowed.

Honda’s financials

In Honda’s 2025–26 annual report, they reported a $2.6bn deficit – their biggest loss since 1957. But they remain confident in their commitment to Formula One, even though the sport hopes to return to V8 engines powered by sustainable fuel by 2031, which is one of the reasons that Honda left the sport in 2021.

Teams have shown their support for the measures taken to help Honda recover in Formula One.