On April 9, 2025, President Donald Trump signed into law a new policy aimed at revitalizing the American shipbuilding industry, which has significantly lagged in production compared to its rivals in the People’s Republic of China. The executive order emphasizes the need to strengthen the country’s commercial shipbuilding capacity and maritime workforce, reflecting concerns that have also been raised by the defense sector.
During an April 8 hearing before the Senate Armed Services Subcommittee on Seapower, Navy leadership expressed worries about stagnant shipbuilding and its implications for national security during great power conflicts. As of March 2024, the Navy aims to grow its fleet of battle force ships to 381 over the next 30 years, requiring an estimated investment of at least $40 billion annually, as highlighted by the Congressional Budget Office.
Currently, the fleet comprises fewer than 300 battle force ships, with projections indicating that the Navy will decommission more ships than it plans to commission over the next few years. In a policy statement from February 2025, the Navy League urged Congress to boost funding for public shipyards and the Coast Guard as part of the plan to expand the fleet.
To achieve its goals for shipbuilding and vessel maintenance, the Navy estimates that approximately 250,000 skilled or well-compensated workers must be recruited over the next decade. Matthew Sermon, who manages the Navy’s maritime industrial base program, remarked on the importance of this labor force in enhancing supply chain capacity and addressing workforce challenges.
Dr. Brett Seidle, the acting assistant secretary of the Navy for research, development, and acquisition, acknowledged the Navy’s struggle to deliver ships on time and on budget, citing rising costs and delays in multiple programs by one to three years. Concurrently, the Government Accountability Office emphasized the need for significant changes in U.S. shipbuilding to meet the target of 381 ships.
The report detailed how, despite a doubling of the shipbuilding budget over the past 20 years, the Navy failed to increase its fleet size. The frigate program, in particular, is running three years behind schedule. Shelby Oakley, a GAO director, noted that Navy ships are generally more expensive and take longer to build than initially planned while often not meeting quality and performance expectations.
In response to the executive order, Assistant to the President for National Security Affairs Mike Waltz has been tasked with submitting an action plan within 210 days. Defense Secretary Pete Hegseth will explore avenues for investing in both commercial and defense shipbuilding capabilities, as well as supply chains and workforce strength.
Globally, U.S. shipbuilding aspirations are critical for maintaining military superiority, particularly against near-peer threats in regions like the Indo-Pacific and Arctic. Current production issues are also affecting international commitments, such as those made under the AUKUS trilateral agreement between Australia, the United Kingdom, and the U.S.
Amid continual challenges in producing new submarines and surface vessels, there are concerns about the U.S. Navy’s ability to replace any losses in combat scenarios. With the recent commissioning of the Virginia-class attack submarine Iowa and two more expected this year, the urgency to expand shipbuilding capabilities remains at the forefront.
Additionally, the Coast Guard recently added its first polar ice breaker in 25 years, underscoring the rising military activity in the Arctic region—a area increasingly contested by China and Russia, which necessitates a heightened U.S. presence. According to Pentagon reports, the Arctic is becoming a venue for strategic competition, reinforcing the need for the U.S. to prepare adequately to address these evolving challenges.
Military Times journalists contributed to this report, presenting insights from various experts and officials involved in defense, history, and military strategy.
