Revitalizing Shipbuilding and the Maritime Industrial Base

Coast Guard and Maritime PolicyHouse Armed Services Subcommittee on Seapower and Projection Forces · April 22, 2026 · 119th Congress
The House Armed Services Subcommittee on Seapower and Projection Forces, joined by the Coast Guard and Maritime Transportation Subcommittee, held this joint hearing to examine the state of the Navy's and Coast Guard's shipbuilding programs and the broader US maritime industrial base. Begins at ▶ 0:08:08
Transcript
Highlights

Title

Navy, Coast Guard, and Maritime Industrial Base Revitalization Efforts

Purpose

The House Armed Services Subcommittee on Seapower and Projection Forces, joined by the Coast Guard and Maritime Transportation Subcommittee, held this joint hearing to examine the state of the Navy's and Coast Guard's shipbuilding programs and the broader US maritime industrial base. Witnesses from the Navy, Maritime Administration, Coast Guard, GAO, and CBO testified on the administration's Golden Fleet Initiative, the Maritime Action Plan, and the proposed SHIPS for America Act, addressing shipyard capacity, labor shortages, cost overruns, and reliance on cargo preference to sustain the US-flag fleet. Begins at▶ 0:08:08

Who spoke

• Chairman Kelly▶ 0:08:08: Opened the hearing, emphasized the importance of shipbuilding to get "holes in the water"▶ 0:08:08, and later questioned Carmel on the Maritime Action Plan and Potter on repair capacity/dry dock availability▶ 0:24:42▶ 0:27:15.

• Ranking Member Joe Courtney▶ 0:08:29: Noted the large industry turnout as evidence of the issue's rising priority▶ 0:08:29; later pressed Potter on the Virginia-class multi-year procurement contract delay▶ 0:29:16 and discussed Groton labor gains and Columbia-class acceleration▶ 2:50:02▶ 2:51:29, and pushed for design maturity before cutting steel on the battleship program▶ 2:52:52.

• Chairman Eel (Coast Guard and Maritime Transportation Subcommittee)▶ 0:09:03: Submitted opening statement; later pressed Admiral Campbell on overdue statutory acquisition reports, including a capital investment plan and a biennial major acquisitions report last produced 12 years ago▶ 0:34:20▶ 0:35:25.

• Ranking Member Carbajal▶ 0:09:20: Submitted opening statement; later questioned Carmel on a bill to raise cargo preference to 100% for DOT cargo▶ 0:39:06 and Campbell on OPC/PSC procurement delays▶ 0:41:43, and later asked Oakley and Labs about the SHIPS Act's effect on commercial demand▶ 2:56:02.

• Jason Potter, Performing Assistant Secretary of the Navy▶ 0:09:59: Outlined the Golden Fleet Initiative's three tenets and a $65.8 billion shipbuilding request for 18 battle force and 16 non-battle force ships▶ 0:12:17; later discussed distributed shipbuilding expansion on the Gulf Coast▶ 0:46:12 and Navy audit/inventory accuracy efforts targeting 95%+▶ 2:13:28.

• Stephen Carmel, MARAD Administrator▶ 0:15:03: Argued maritime power is "built from cargo inward," not ships outward, and that policy failures have produced fragmented, competing incentives▶ 0:15:54; later described US disadvantages vs. China's 5,000-vessel fleet versus the US's under 100▶ 1:55:46, and discussed dual US/IMO regulatory burden and reflagging costs▶ 1:57:58.

• Rear Admiral Mike Campbell, Coast Guard▶ 0:20:13: Described the Coast Guard's largest shipbuilding effort in its history▶ 0:21:11; later reported 26 of 85 polar security cutter modules built▶ 0:42:37, confirmed no knowledge of Chinese propulsion components▶ 0:53:26, and described the Eastern Shipbuilding OPC standstill and ongoing contract negotiations▶ 2:34:13.

• Chairman Wittman▶ 0:44:20: Asked Potter about leveraging underutilized shipyard/repair capacity via distributed shipbuilding▶ 0:44:41 and Carmel about agricultural-style federal risk-sharing models for maritime▶ 0:47:36.

• Rep. Norcross▶ 0:50:14: Highlighted Philadelphia Navy Yard's hiring-hall workforce model▶ 0:50:36 and Buy American supply chain concerns, including a question on possible Chinese-sourced propulsion systems for the Arctic Security Cutter▶ 0:53:12.

• Rep. McDow▶ 1:54:23: Asked Carmel to compare US and Chinese shipbuilding output and drew out Carmel's point that Chinese state-driven capacity struggles with "creative destruction"▶ 1:54:56▶ 1:56:04.

• Rep. Gar (California)▶ 2:00:43: Advocated for the SHIPS Act, entering its text and section-by-section summary into the record▶ 2:02:30, and highlighted the act's "energizing" cargo provisions▶ 2:04:01.

• Rep. Webster▶ 2:05:25: Asked about factors behind the Polar Security Cutter program's turnaround▶ 2:05:52 and the Finland Arctic Security Cutter partnership's benefit to domestic shipbuilding▶ 2:07:53.

• Rep. Elfreth (Maryland)▶ 2:10:39: Cited a DoD IG finding that Navy spare parts inventory accuracy was 83-95%, below the 98% minimum▶ 2:11:23; asked Campbell about Coast Guard Yard Baltimore dry dock investment timelines▶ 2:15:03.

• Rep. Moylan (Guam)▶ 2:16:02: Asked about Fast Response Cutter availability for Guam, noting 62 of 77 delivered▶ 2:16:28; pressed Carmel on aging port crane infrastructure in Guam▶ 2:17:33.

• Rep. Gillan (New York)▶ 2:19:56: Advocated for Merchant Marine Academy modernization funding included in the SHIPS Act▶ 2:21:27; asked Campbell about AI integration in Coast Guard shipbuilding▶ 2:23:39.

• Rep. Bergman (Michigan) [2:16:19 correction: 2:25:14 wait]: (see below)

• Rep. Bergman▶ 2:25:19: Discussed Jones Act importance to Great Lakes shipping▶ 2:25:49 and asked whether Venezuelan crude moved under US control counts as "government impelled" cargo▶ 2:27:03; also asked Potter about commercial-style software update systems for warships▶ 2:27:58.

• Rep. Patronis (Florida)▶ 2:30:14: Expressed frustration over stalled, partially-built Offshore Patrol Cutters at the Eastern Shipbuilding yard in Florida▶ 2:30:30 and pressed Campbell on rebuilding trust with the contractor▶ 2:33:10.

• Dr. Eric Labs, CBO▶ 2:38:47: Reported destroyers now take 11 years to build (up from 5) and attack submarines 10 years (up from 6)▶ 2:40:10; cited a loss of 234 ship-service-years between 2019-2040 and a fleet averaging 20 ships smaller than planned from 2026-2030▶ 2:41:12; noted Electric Boat's new labor contract raising pay 40-45% over five years, cutting voluntary attrition below 10%▶ 2:42:07.

• Shelby Oakley, GAO▶ 2:44:09: Said GAO has made 137 recommendations over 10 years, with 52 on Navy shipbuilding open as of last year▶ 2:44:46; warned Navy and Coast Guard continue starting construction before designs are mature, citing the Frigate and OPC programs▶ 2:46:03; said the Navy hasn't defined the scope, cost, or timeline needed for a "healthy" submarine industrial base▶ 2:47:48.

• Rep. Alfreth (later, second panel)▶ 3:01:01: Followed up on the spare-parts predictability problem and asked Oakley and Labs what other countries do better▶ 3:01:17▶ 3:03:42.

Key moments

• Potter said the Navy's budget requests $65.8 billion for 18 battle force and 16 non-battle force ships under the Golden Fleet Initiative▶ 0:12:17.

• Courtney noted the Virginia-class multi-year procurement authorized since FY24 NDAA is still unresolved three years later, now bundled with Columbia-class Build Two into a 15-submarine negotiation "in the final stages"▶ 0:29:45▶ 0:31:22.

• Chairman Eel revealed the Coast Guard's last five-year capital investment plan was three years late and incomplete, and its biennial major-acquisitions report was last produced 12 years ago▶ 0:34:34▶ 0:35:25.

• Norcross asked directly whether Arctic Security Cutter propulsion components are coming from China; Campbell said he "knows nothing" about that▶ 0:53:12▶ 0:53:26.

• Carmel testified the Chinese commercial fleet exceeds 5,000 vessels versus fewer than 100 US-flag vessels, with the US building about 0.1% of ships ordered globally▶ 1:55:46.

• Patronis described Eastern Shipbuilding's four OPC hulls at 90%, 50%, 30%, and 15% complete after four presidential administrations and six DHS secretaries, calling the contractor relationship a "standstill" now in negotiation▶ 2:30:57▶ 2:34:13.

• Dr. Labs said destroyer construction time has risen to 11 years and attack submarines to 10 years, with attack sub production averaging just 1.1 boats/year over the past two years▶ 2:40:10▶ 2:40:42.

• Oakley disclosed GAO is issuing a new recommendation that the Navy define the scope and cost needed for a healthy submarine industrial base, since it currently lacks that picture▶ 2:47:48.

• Rep. Elfreth cited a DoD Inspector General finding that Navy spare-parts inventory accuracy is 83-95%, below the required 98% minimum, risking prolonged dry-dock delays▶ 2:11:23; Potter committed to reaching 95%+ within a year▶ 2:13:17▶ 2:13:28.

• Gar entered the full text of the SHIPS for America Act and a section-by-section summary into the record, describing its "energizing" cargo provision requiring a share of US petroleum exports move on American-built, American-crewed ships▶ 2:02:41▶ 2:04:01.

Metadata

CommitteeHouse Armed Services Subcommittee on Seapower and Projection Forces
Chamber / CongressHouse · 119th Congress
DateApril 22, 2026
TypeHearing
Witnesses
Mr. Jason Potter — Performing the Duties of Assistant Secretary of the Navy for Research, Defense, and Acquisition, Department of the Navy
Rear Admiral Lower Half Mike Campbell — Director of Systems Integration and Chief Acquisitions Officer, U.S. Coast Guard
Ms. Shelby Oakley — Director of Contracting and National Security Acquisitions, Government Accountability Office
Dr. Eric Labs — Senior Analyst for Naval Forces and Weapons, Congressional Budget Office
The Honorable Stephen Carmel — Administrator, U.S. Maritime Administration
Videoyoutube
Transcript333 caption blocks · 19,817 words · 3:07:11 runtime
EventCongress.gov 119209