Department of the Navy Fiscal Year 2026 Budget Request

Defense Posture and Global ThreatsHouse Armed Services · June 11, 2025 · 119th Congress
The House Armed Services Committee convened this hearing on the Department of the Navy's Fiscal Year 2026 budget request, examining shipbuilding delays and cost overruns, fleet readiness, acquisition reform, and the Navy and Marine Corps' industrial base and personnel challenges. Begins at ▶ 0:37:39
Transcript
Highlights

Title

Navy and Marine Corps FY2026 budget: shipbuilding delays and readiness

Purpose

The House Armed Services Committee convened this hearing on the Department of the Navy's Fiscal Year 2026 budget request, examining shipbuilding delays and cost overruns, fleet readiness, acquisition reform, and the Navy and Marine Corps' industrial base and personnel challenges. Secretary of the Navy John Phelan, Acting Chief of Naval Operations Admiral James Kilby, and Marine Corps Commandant General Eric Smith testified, with members also questioning the deployment of Marines to Los Angeles. Begins at▶ 0:37:39

Who spoke

• Chairman Mike Rogers (R-AL)▶ 0:37:39: Opened by noting the FY26 budget documents lack sufficient detail▶ 0:38:07, cited the $34 billion reconciliation investment in shipbuilding▶ 0:38:32, and highlighted the SPEED Act acquisition reform bill with Ranking Member Smith▶ 0:39:53; later pressed Phelan on timelines for a shipbuilding fix-it plan▶ 1:01:27.

• Ranking Member Adam Smith (D-WA)▶ 0:41:54: Said the budget is unusually late and creates uncertainty▶ 0:41:54, cited every shipbuilding program as over budget and behind schedule▶ 0:42:54, and asked all three witnesses how they would streamline the acquisition regulations process▶ 1:02:20.

• Secretary John Phelan, Secretary of the Navy▶ 0:45:47: Said readiness is his "north star"▶ 0:46:18, testified that even the best-performing shipbuilding program is 6 months late and 57% over budget▶ 0:57:27, compared a South Korean destroyer built at a third of the cost in three years▶ 1:00:56, and committed to a fix-it plan within 30-60 days▶ 1:01:50; later said 400 Naval Academy books removed was an inaccurate media figure and the real number is about 21▶ 2:35:39.

• Admiral James Kilby, Acting Chief of Naval Operations▶ 0:50:58: Cited the Navy's goal of 80% combat-surge readiness by January 2027, not yet achieved▶ 0:53:10, reported 22,950 gaps at sea▶ 0:53:38, and said submarine attack-boat requirement of 66 is not being met▶ 1:18:22; said if defending Taiwan he'd rather have $13 billion in unmanned systems than a carrier▶ 1:36:27.

• General Eric Smith, Commandant, Marine Corps▶ 0:55:00: Listed priorities as restoring 3.0 Amphibious Ready Group presence, force design, and quality of life via Barracks 2030▶ 0:55:28; testified all 700 Marines deployed to Los Angeles received four days of training before deployment▶ 2:15:56 and confirmed Marines are not conducting law enforcement and have not fired warning shots▶ 2:46:25.

• Rep. Joe Wilson (R-SC)▶ 1:07:41: Asked about deterring a Chinese attack on Taiwan▶ 1:09:02 and Marine Corps drone lessons from Ukraine▶ 1:11:37.

• Rep. Joe Courtney (D-CT)▶ 1:12:34: Thanked Phelan for releasing submarine worker wage funds that raised wages 30% over five years▶ 1:13:03 and discussed AUKUS submarine production, noting 72% combat-surge readiness for submarines versus an 80% goal▶ 1:16:25.

• Rep. Rob Wittman (R-VA)▶ 1:17:52: Pressed on Virginia-class submarine numbers, confirmed the 66-attack-submarine requirement is unmet▶ 1:18:47, and noted his estimate of needing 46 amphibious ships versus a planned 31▶ 1:23:01.

• Rep. Mike Garcia (R-CA)▶ 1:22:40: Discussed the SHIPS Act and using the Jones Act fleet for logistics support, and USS America's 191 open inspection items ahead of its maintenance availability▶ 1:27:46.

• Rep. Ronny Jackson (R-TX)▶ 1:28:12: Asked about the future Bethesda-class expeditionary medical ship (USNS Bethesda)▶ 1:28:41 and commercial unmanned underwater vehicle adoption▶ 1:29:36.

• Rep. Seth Moulton (D-MA)▶ 1:33:14: Challenged General Smith on The Basic School's hike standard being reduced from 25 to 15 miles versus the fleet's 20-mile/70-pound standard▶ 1:34:09, questioned ice baths at TBS versus none in the fleet▶ 1:35:30, and pressed Smith that only about 2% of the Marine Corps budget goes to unmanned systems▶ 1:36:52.

• Rep. Trent Kelly (R-MS)▶ 1:38:16: Asked whether drones can replace a carrier's sovereign-airfield capability (no)▶ 1:38:47 and pressed all three witnesses for a consistent shipbuilding demand signal to industry▶ 1:40:36.

• Rep. Bill Keating (D-MA)▶ 1:44:36: Asked about Arctic competition with Russia and China, noting the U.S. is "miserably behind" in Arctic assets▶ 1:46:54, and praised a University of Massachusetts Navy research partnership model▶ 1:47:44.

• Rep. Mark DeSaulnier (R-TN) [Dr. Desjarlais]▶ 1:49:34: Asked about pilot shortfalls, sailor manning gaps of 22,950 at sea trending toward 18,000 by year-end▶ 1:52:09, and conventional prompt strike progress▶ 1:53:07.

• Rep. Chrissy Houlahan (D-PA)▶ 1:54:28: Discussed the definition of modern "lethality" beyond physical standards▶ 1:54:56 and asked Phelan to commit that Marine Corps LA-relocation funds won't divert from barracks, unlike a reported $1 billion Army diversion▶ 1:58:15.

• Rep. Don Bacon (R-NE)▶ 1:59:09: Asked Kilby and Smith the top capability gap versus China — Kilby cited munitions and shipbuilding▶ 1:59:37; asked about Naval Air Station Key West housing and SLCM-N deployment status, targeted for 2034▶ 2:03:36.

• Rep. Jared Golden (D-ME)▶ 2:04:34: Pressed Kilby on DDG Flight III production, noting the plan may "goose egg" the program in FY26 despite a 1.5-ship/year workforce need▶ 2:05:04.

• Rep. Pat Fallon (R-TX)▶ 2:09:16: Asked about the causes of the recent recruiting turnaround▶ 2:09:46 and Marine Corps troop levels on Okinawa amid the China threat▶ 2:13:18.

• Rep. Salud Carbajal (D-CA)▶ 2:43:59: Asked General Smith about his role in selecting which Marines were mobilized to Los Angeles▶ 2:44:29 and what could be done with an additional $134 million for the Marine Corps▶ 2:46:56.

• Rep. Jen Kiggins (R-VA)▶ 2:47:27: Advocated for East Coast "master jet base" investment and F-35 squadrons, noting the Navy currently has zero F-35 squadrons on the East Coast▶ 2:50:04, and raised a reported $500 million diversion from Navy next-gen fighter funds to the Air Force F-47▶ 2:51:17.

• Rep. Sarah Elfreth (D-MD)▶ 2:52:55: Asked about a second altitude/pressure training chamber at Patuxent River▶ 2:53:24 and manning shortfalls limiting shipboard maintenance, citing 64% of executive officers reporting difficulty▶ 2:55:06.

• Rep. James Moylan (D-Guam)▶ 2:58:23: Thanked Phelan for condemning substandard Guam barracks and ordering Camp Blaz opened▶ 2:59:16; asked about family housing conditions on Guam▶ 3:01:38.

• Rep. Pat Ryan (D-NY)▶ 3:03:24: Raised concerns about politicization of the military, referencing a Fort Bragg event, and asked what guidance is given to troops about political events▶ 3:04:59.

• Rep. Clay Higgins (R-LA)▶ 3:08:45: Raised NAVSEA contracting issues▶ 3:10:05 and asked about using commercial platform support vessels for Indo-Pacific resupply▶ 3:11:11.

• Rep. Eric Sorensen (D-IL)▶ 3:14:01: Asked about upgrading Navy Reserve C-130T aircraft to KC-130J▶ 3:14:51 and pressed Phelan on Pentagon plans to rename installations, including Harvey Milk's name removal▶ 3:16:10.

• Rep. Rich McCormick (R-GA)▶ 3:18:34: Asked why the Navy doesn't remod older LHA-class ships for near-term power projection▶ 3:19:34 and praised the Marine Corps' clean audit record tied to individual accountability▶ 3:22:52.

• Rep. George Whitesides (D-CA)▶ 3:23:49: Asked about the sixth-generation fighter program amid reports of cancellation in favor of the F-47▶ 3:24:19 and about workforce training partnerships like Danville's additive manufacturing center▶ 3:27:03.

• Rep. Rob Wittman successor / Rep. Maguire (R-VA)▶ 3:28:53: Discussed additive manufacturing's role in shipbuilding, citing a Hilo hangar door part made in 19 days versus a 40-week traditional timeline▶ 3:29:22, and Red Sea lessons on munitions use▶ 3:31:53.

• Rep. Bell (D-MO)▶ 3:34:17: Highlighted St. Louis-built aircraft (F/A-18, EA-18G Growler, MQ-25) and pressed for adding a fourth MQ-25 in FY26▶ 3:35:32, and asked about sixth-generation fighter delay risks▶ 3:37:07.

• Rep. Mrvan (D-IN)▶ 3:38:53: Invited witnesses to visit Naval Support Activity Crane and asked about expanding shipbuilding into America's interior▶ 3:39:43, and about conventional prompt strike underwater test launch schedule delays▶ 3:42:25.

• Rep. Jill Tokuda (D-HI)▶ 3:43:33: Pressed Phelan for a commitment that civilian workforce cuts won't affect Red Hill fuel facility remediation▶ 3:44:02 and asked about allied shipyard repair partnerships▶ 3:46:37.

• Rep. Tom Tiffany (R-WI)▶ 3:48:53: Urged fortifying forward Pacific islands like Guam against hypersonic threats▶ 3:49:24 and asked whether special operations component commanders have a seat at Navy/Marine Corps platform decisions▶ 3:51:39.

• Rep. Ben Cline / Rep. Bergman-designated member (D-VA)▶ 3:52:59: Asked about Marine Corps offensive/defensive drone counter-swarm capability gaps observed at Quantico▶ 3:53:29 and Navy doctrine for unmanned systems at Dahlgren▶ 3:57:04.

• Rep. Sara Jacobs (D-CA)▶ 2:14:36: Pressed General Smith on Marine training timelines for the Los Angeles deployment, standing rules for use of force, and posse comitatus concerns▶ 2:16:25.

• Rep. Kelly Morrison / Rep. Michelle Fischbach or Rep. Nikki Budzinski (Miss Goodlander) (D-NH)▶ 2:24:49: Asked about Portsmouth Naval Shipyard hiring status, federal worker retirement benefits, and Los Angeles Marine deployment use-of-force rules▶ 2:28:03.

• Rep. Nancy Mace (Miss Mason) (R-SC)▶ 2:29:56: Asked about Parris Island and MCAS Beaufort infrastructure needs, including hangar space for unmanned systems▶ 2:32:06.

• Rep. Gil Cisneros (D-CA)▶ 2:34:26: Asked about removed Naval Academy books and the next-generation fighter program status▶ 2:36:07.

• Rep. Wesley Hunt (Mr. Latrell) (R-TX)▶ 2:39:01: Questioned the Navy's electronic procurement system development and IT redundancy▶ 2:39:27, and raised veteran transition and suicide rate concerns▶ 2:43:10.

Key moments

• Phelan testified that the Navy's best-performing shipbuilding program is 6 months late and 57% over budget — and that's the best one▶ 0:57:27▶ 0:57:55.

• Phelan compared a South Korean-built destroyer, 10% bigger than a US DDG, built in three years at a third of the cost▶ 1:00:56.

• Wittman got Kilby to confirm the Navy still needs 66 attack submarines and is not close to that number▶ 1:18:22▶ 1:18:47.

• Wittman revealed the Navy's own materials now describe 3.0 Amphibious Ready Group presence as "not a requirement," contradicting Congress's stated expectation▶ 1:22:09; Phelan estimated the actual need is 46 amphibious ships versus the 31-ship plan▶ 1:23:01.

• Sharp exchange between Rep. Moulton and General Smith: Smith confirmed no TBS graduate has failed the reduced 15-mile hike▶ 1:34:39, and Smith acknowledged only about 2% of the Marine Corps budget goes to unmanned systems despite drones causing over 70% of casualties in Ukraine▶ 1:36:52▶ 1:37:03.

• Kilby said that given a choice between one aircraft carrier and $13 billion in unmanned systems to defend Taiwan, he'd put the drones on Taiwan▶ 1:36:27.

• Rep. Golden pressed Kilby on reports the FY26 request may "goose egg" the DDG Flight III program despite a congressionally-backed 1.5-ship/year production rate needed to sustain a shipbuilding workforce that takes seven years to train▶ 2:04:34▶ 2:07:25.

• Rep. Jimenez cited a 250-to-1 Chinese advantage in large-ship construction and pressed Phelan on whether the Navy has a dedicated team for asymmetric, unconventional ways to counter Chinese ships▶ 2:19:26▶ 2:22:34.

• Rep. Jacobs and General Smith clarified the 700 Marines deployed to Los Angeles received four days of training in crowd control, de-escalation, and less-than-lethal tactics before deployment, contradicting earlier statements of "two hours"▶ 2:16:25▶ 2:16:56.

• Phelan described Guam barracks conditions he found "apoplectic" — black mold and no air conditioning — and ordered Camp Blaz opened within five to seven days▶ 2:59:16▶ 2:59:44.

Metadata

CommitteeHouse Armed Services
Chamber / CongressHouse · 119th Congress
DateJune 11, 2025
TypeHearing
Witnesses
The Honorable John Phelan — Secretary of the Navy, Department of the Navy
Admiral James Kilby — Acting Chief of Naval Operations, United States Navy
General Eric Smith — Commandant, United States Marine Corps, United States Marine Corps
Videoyoutube
Transcript454 caption blocks · 35,714 words · 3:58:37 runtime
EventCongress.gov 118397