Navy’s 2027 Shipbuilding Budget Could More Than Double 2026 Total

Secretary of the Navy John Phelan announced that the upcoming Fiscal Year 2027 shipbuilding budget may more than double the number of vessels planned for Fiscal Year 2026. This statement was made during his address to the crew aboard the Nimitz-class aircraft carrier USS George Washington (CVN-73) in San Diego on April 28, 2025.

The current Fiscal Year 2026 budget includes a total of 19 ships, with a spending plan of approximately $47.3 billion. This budget is supported by a combination of traditional budget submissions and additional funding through the Reconciliation Act.

Focus on Auxiliary and Support Ships

Phelan indicated that the 2027 budget would significantly prioritize the acquisition of auxiliary and support ships. He stated, “If you look at the ‘26 budget we did [19] ships in there, you should expect at least more than double — I would hope — in the new budget.” The Secretary emphasized that these auxiliary vessels are crucial for revitalizing the maritime industrial base, as they are less complex to construct than combat ships equipped with advanced technologies like radar systems or nuclear propulsion.

“There is an area that we are in grave need of upgrading,” he added. Phelan expressed optimism regarding the upcoming budget, saying, “I think you’ll be pleased when we get that out.” His remarks follow the Navy’s recent announcement of two new classes of warships as part of the administration’s initiative known as the Golden Fleet.

Strategic Investments for the Future

Phelan explained that the Golden Fleet initiative aims to address the long-standing decline in the maritime industrial base. He remarked, “This generational investment by the American taxpayer in decisive maritime advantage must be delivered at a cost that we can sustain and fast enough to matter.”

The planned new vessels include the FF(X), a patrol frigate modeled after the Coast Guard’s National Security Cutter, and the Trump-class battleship, which will work alongside unmanned systems to enhance the U.S. naval forces.

“How do we rebuild the fleet? It’s through a disciplined high-low mix,” Phelan stated. This strategy involves maintaining high-end platforms such as next-generation battleships while also producing destroyers, carriers, and submarines. The Secretary highlighted the importance of ensuring survivability, firepower, and logistical support through a balanced approach.

The Reconciliation Act has allocated $4.9 billion specifically for unmanned systems. The Navy is currently considering multiple candidates for medium unmanned surface vessels (MUSV) from companies including Blue Water Autonomy, HII, Saronic, and Anduril. However, the final list of candidates has not yet been disclosed.

Phelan mentioned the potential for pursuing more than one class of MUSV, highlighting previous calls for a medium autonomous surface craft (MASC) designed to carry two 40-foot shipping containers and travel at speeds of up to 25 knots over distances of 2,500 nautical miles in moderate sea conditions.

The newly established Portfolio Acquisition Executive Robotic Autonomous System (PAE RAS) will oversee these initiatives. Phelan noted that RAS would create opportunities beyond traditional shipyards, as it is faster, modular, and more affordable, allowing new investors and innovative companies to engage in naval shipbuilding.

Despite the emphasis on unmanned systems and auxiliary vessels, Phelan affirmed the necessity of maintaining high-end manned warships. He addressed concerns regarding the vulnerability of new battleships and carriers, stating, “Keep in mind, something that moves like a ship is much harder to hit than a stationary target like a base or missile silo.” He asserted that carriers remain critical components of naval and American military power.