One of most persistent myths in Air combat from 2010s onwards is this remake of original manned fighter into CCA somehow making it better.
It doesn't work like this. You're getting, at best, a gimped manned fighter, for a price of one.
It just wasn't built for it.
Not really, since an F-16 is not really the kind of fighter you want to be flying in WESTPAC against China in the first place. At least as a CCA, it's a more expendable asset than a manned F-16.
Concurrently, you would need an NGAD Penetrating Counter Air platform to be designed and procured. This couldn't been in small numbers, as China already has a large number of J-20s and has recently unveiled the J-36. So something around 50 aircraft per year at a minimum and around 400 airframes if not more.
Even if this was feasible on a manufacturing level, it's getting increasingly more dangerous on a fiscal level. The country is running a budget deficit of $1+ trillion dollars every year. This is nearly ~3.7% of GDP today, dangerously close to the GDP growth rate. Possible future tax cuts, increased tariffs, inevitably increasing social spending, and your proposed military expenditure expansion... this will likely outpace GDP growth.
Increasing Debt-to-GDP ratios is all fine and good, and we don't really have a clear idea on how far we can push this lever, but it is risky. The solvency of United States is ultimately dependent on USD's primacy as a reserve currency and our dominance of the global economy and financial system. It is increasingly dangerous to strain this status quo.
The Pentagon likely has an enormous wish-list for things it needs to compete and possibly defeat China in its own turf. I don't think we are capable of fulfilling that wish list even if we spent the money, and I am becoming increasingly convinced that it's also fiscally irresponsible to do so.
I'm not a debt hawk, debt was not an issue in 2008, but it has become a bigger issue as the years have gone by, and it is most definitely an issue now in 2024. There are no easy answers to our strategic situation, but in times of uncertainty, I believe it's best to bide your time and focus on the fundamentals. IMO, it is unfortunately a time to look inward, even if that means abandoning many of our security commitments.