Over the past several years, efforts have been under way to design and develop an operationaUy flexible research facility for investigating the use of cross-field MHO accelerators as a potential thrust augmentation device for tbermal propulsion systems, The baseline configuration for this high-power experimental facility utilizes a 1,5-MW, multi-gas arc-heater as a thermal driver for a 2-MW, MHO accelerator, which resides in a large-bore 2-tesla electromagnet. A preliminary design study using NaK seeded nitrogen as tbe working fluid Jed to an eIternaUy dlagonalized segmented MHI> cbannel configuration based on an expendable beat-sink desigu concept. Tbe current status report includes a review of engineering/design work and performance optimization analyses and summarizes component bardware fabrication and development efforts, preliminary testing results, and recent progress toward full-up assembly and testing