U.S. Shipbuilding Faces Budget Shortfalls, Urgent Action Needed

Urgent Call for Action: Reviving America's Shipbuilding Industry

In a fervent declaration, President Trump emphasized the necessity of reviving America's shipbuilding prowess with an ambitious vision, stating, "We used to make so many ships. We don’t make them anymore very much, but we’re going to make them very fast, very soon.” However, this revival faces a significant hurdle: current budget allocations fall short of what is needed to initiate the proposed maritime resurgence. Without substantial modifications, or the inception of a separate naval act earmarked for mass procurement of warships, the envisioned demand signal to the shipbuilding industry remains absent.

The expansion of shipbuilding capabilities hinges on orders. Drawing inspiration from industrialist Bill Knudsen, who was instrumental in America's naval buildup during World War II, the process is straightforward: "Put in the orders, finance shipyard expansion, and stand back."

Recent frustrations have been voiced by lawmakers, most notably Senator Roger Wicker (R., Miss.), who lamented the drastic reduction in the shipbuilding budget from $37 billion to $20.8 billion. He remarked, “I am disturbed by the shipbuilding account, which plummeted... This shortfall reflects efforts to game the budget in anticipation of congressional reconciliation funds, which were intended as supplemental, not a substitute.”

As geopolitical tensions rise, especially concerning potential conflicts in Asia with China, the urgency for bolstering naval capabilities grows. China's shipbuilding capacity now dwarfs that of the U.S., with 400 warships compared to America's 292. This stark contrast underscores the pressing need for a larger fleet as part of national defense strategies.

Despite President Trump's emphasis on revitalizing shipbuilding as a national priority, the current Fiscal Year 2026 budget lacks the necessary warship orders to drive investment in shipyard infrastructure and workforce. Critical funding exists within other sectors, yet the warship orders fall short, requiring potential intervention via the National Defense Authorization Act or a distinct naval act to meet the demand.

The original commitment to a 355-ship Navy, mandated by Congress in NDAA FY18 sec. 1025, is far from realization with the current count at 292. To achieve this goal, enhancements are needed, including the establishment of a new public shipyard for the nuclear fleet, currently at 47 submarines instead of the required 66.

The transition towards a revived shipbuilding industry will not occur overnight. Building on existing projects takes years, as does introducing new suppliers into the defense industrial base. In light of the growing threat from China, three critical steps have been proposed:

1. Operate the fleet creatively to disrupt potential Chinese military plans, particularly as allies strengthen their own defenses.
2. Enhance shipbuilding and repair capabilities, including the construction of innovative unmanned vessels. A comprehensive order of new warships, supported by budget allocations, is vital.
3. Increase ship orders beyond current plans to stimulate infrastructure growth, emphasizing acquisitions like Virginia-class submarines and Arleigh Burke–class destroyers.

The current budget considerations, if lacking substantial ship orders, fail to convey the urgency President Trump advocates for reinvigorating America's naval strength.

Inadequate funding, especially for the construction of a second Virginia-class submarine in FY 2026, undermines strategic initiatives such as AUKUS and broader defense efforts, highlighting the need for increased orders of submarines, destroyers, and other naval vessels.

A decisive shift in Congressional action can drive the necessary investments and orders to rebuild America's naval capacity, ensuring it is equipped to face contemporary global challenges.