Department of the Navy Fiscal Year 2027 Budget Request

Defense Posture and Global ThreatsHouse Armed Services · 2026-05-14 · 119th Congress
The House Armed Services Committee met to examine the Department of the Navy's fiscal year 2027 budget request of $377.5 billion, part of a $1.5 trillion overall defense budget, with witnesses Acting Navy Secretary Hung Cao, Chief of Naval Operations Admiral Daryl Caudle, and Marine Corps Commandant General Eric Smith. Begins at 0:16:27
Transcript
Highlights

Title

Navy and Marine Corps FY2027 budget: ship building, readiness, and the battleship debate

Purpose

The House Armed Services Committee met to examine the Department of the Navy's fiscal year 2027 budget request of $377.5 billion, part of a $1.5 trillion overall defense budget, with witnesses Acting Navy Secretary Hung Cao, Chief of Naval Operations Admiral Daryl Caudle, and Marine Corps Commandant General Eric Smith. Discussion centered on rebuilding the shipbuilding industrial base, amphibious fleet readiness, the proposed nuclear-powered "Trump class" battleship, recruiting and retention, and costs associated with the ongoing Operation Epic Fury in the Middle East. Begins at0:16:27

Who spoke

Chairman Mike Rogers (R-AL)0:16:27: Opened by citing China building 47% of world ships to the US's one-tenth of 1%0:17:50, and stressed the need for an 80% surge-ready amphibious fleet, noting nearly half the amphibious fleet is in unsatisfactory condition0:20:06.

Ranking Member Adam Smith (D-WA)0:20:57: Praised Marine Corps modernization and shipbuilding workforce gains at Bath and Newport News0:22:24, but sharply criticized the $22 billion battleship as unaffordable and not aligned with autonomous-systems priorities0:24:36.

The Honorable Hung Cao, Acting Secretary of the Navy0:26:01: Described the 377.5B budget adding 34 new ships and 123 aircraft0:27:49, cited only 188 US-flagged merchant ships versus 11,000 Chinese ships0:41:58, and defended pursuing foreign shipyard partnerships to speed production1:06:28.

Admiral Daryl Caudle, Chief of Naval Operations0:31:28: Warned that without supplemental funding he'll have to alter force generation by July and hold 12,000-15,000 new recruits in place0:43:27; said only 62-day submarine availability studies point to a needed fifth shipyard0:56:22; defended the nuclear battleship's speed and survivability2:58:20.

General Eric Smith, Commandant, US Marine Corps0:36:40: Said the Marine Corps' amphibious readiness is closer to 50% rather than the required 80%, calling a 3.0 Amphibious Ready Group presence unsustainable at current lift levels0:38:020:57:24.

Rep. Mike Turner (R-OH)0:50:50: Raised concerns about changes to Navy sexual harassment investigation policy0:51:16 and neglected infrastructure at the Naval Medical Research Unit Dayton0:51:48.

Rep. Robert Garcia (D-CA)0:54:29: Asked about West Coast shipyard capacity, prompting Caudle to admit the Navy lacks sufficient facilities there0:55:53, and pressed on amphibious ship numbers with General Smith0:57:24.

Rep. Rob Wittman (R-VA)0:58:48: Questioned Secretary Cao on onshore small modular nuclear reactors at Navy bases0:59:15 and on risks of using foreign ship designs after the FREMM/Constellation-class experience1:02:29.

Rep. Donald Norcross (D-NJ)1:03:54: Confronted Secretary Cao over the shipbuilding plan's foreign-shipyard provisions, saying they contradict Buy American and MINDS Act requirements1:05:091:07:08.

Rep. Charles Fleischmann/"Dr. DesJarlais" (R-TN)1:09:00: Asked about distributed shipbuilding and foreign-ally assistance, and about the Ohio-class submarine life extension (PYRO) plan, with Caudle confirming 4-5 Ohio boats will be extended1:12:20.

Rep. Joe Courtney (D-CT)1:14:03: Confirmed AUKUS Pillar One is "on track" and discussed submarine industrial base investment, including a 13% rise in New England submarine tonnage in 20251:14:29.

Rep. Trent Kelly (R-MS)1:19:17: Praised the Navy's new 30-year shipbuilding plan and asked about incentivizing faster amphib production1:20:35 and E-2D Hawkeye procurement1:22:28.

Rep. Seth Moulton (D-MA)2:24:10: Challenged the $17 billion battleship cost against cheap Ukrainian sea drones (~$250,000 each) that destroyed Russia's Black Sea fleet2:25:33, and pressed Cao on Harvard remarks and CVN82 naming policy2:27:162:28:44.

Rep. Ronny Jackson (R-TX)2:09:59: Highlighted the historic 46% increase in shipbuilding funding and asked about amphibious readiness investment and the CMV-22 Osprey NEL improvement program2:33:32.

Rep. Robert Garcia... (already listed) — n/a

Rep. Salud Carbajal (D-CA)2:34:46: Praised the Marine Corps as the only service to pass a clean audit three years running2:34:51, then yielded time to Rep. Tran.

Rep. Derek Tran (D-CA)2:36:30: Spoke of shared Vietnamese-American heritage with Secretary Cao and asked him to advocate for Vietnamese political prisoners2:37:24.

Rep. Morgan Luttrell (R-TX)2:39:43: Questioned foreign steel sourcing for submarines, raising the "Hurt the Metals" domestic supplier issue2:40:47, and discussed military suicide prevention with Cao2:41:52.

Rep. William Keating (D-MA)2:44:35: Advocated for university partnerships in naval R&D and raised concerns about small-company disruption in unmanned ship prototype competitions2:48:34.

Rep. Wesley Hunt (R-TX)2:49:44: Praised Cao's immigrant story and asked about recruiting and pilot retention2:50:52.

Rep. Jill Tokuda (D-HI) [1:59:44... corrected]: n/a

Rep. James Moylan (R-GU)1:59:44: Discussed Guam housing, power grid, submariners, and Marine Corps buildup at Camp Blaz2:00:10.

Rep. Jared Golden (D-ME)2:04:46: Sharply criticized the plan to build hull sections in foreign yards, warning of Bath Iron Works layoffs, and said "there's no way I will support that proposal"2:05:362:09:17.

Rep. Ronny Jackson (R-TX) / "Dr. McCormick"2:09:59: (see above)

Rep. Rob Bresnahan / "Mr. Bresnahan"2:14:57: Questioned the extended USS Ford deployment and force levels needed against Iran2:15:06.

Rep. Derrick Van Orden (R-WI)2:20:14: Confirmed NEX/PX stores are not closing, praised Cao's meritocracy comments, and pressed for commitment on veteran suicide prevention collaboration2:23:22.

Rep. Maggie Goodlander (D-NH)2:25:25: Secured commitments on Right to Repair legislation2:26:29, shipyard hiring-freeze protections2:27:56, and a still-overdue submarine supplier briefing2:29:58.

**Rep. Rob Wittman-adjacent Rep. from VA / "Mr."2:30:36**: Recognized USS Gerald R. Ford's return and asked about the nuclear battleship design and amphibious needs2:31:47.

Rep. Sara Jacobs (D-CA)2:35:34: Questioned whether O&M funding covers Epic Fury munitions replenishment2:35:59 and raised strain on military families in San Diego amid deployments2:37:38.

Rep. Rudy Yakym / "Mr. Mesmer" (R-IN)2:40:26: Pressed on metrics for the 50% distributed-shipbuilding goal and Zumwalt-class hypersonic weapon timeline2:43:48.

Rep. Sarah Elfreth (D-MD)2:45:37: Raised Coast Guard Yard Baltimore's potential role, amphibious shipbuilding investment gaps at Ingalls, Naval Academy flooding, and Pax River's anechoic chamber2:46:042:48:43.

Rep. Nancy Mace (R-SC)2:50:45: Asked about Parris Island barracks, MCAS Beaufort hangars, and Beaufort Naval Hospital's shift from inpatient to ambulatory care2:53:59.

Rep. Suhas Subramanyam / "Mr." (D-VA)2:55:41: Endorsed MEU 3.0 and Quantico's role, then challenged the battleship's cost-exchange ratio against $20 million Chinese DF-26 missiles2:57:52.

Rep. Don Bacon (R-NE)3:00:51: Had Caudle detail the USS Ford's record 10-11 month deployment and food supply status3:01:06, and asked about the TACAMO/E-6B to E-130J transition3:03:24.

Rep. Bob Onder / "Mr. Bald" (R-MO)3:05:57: Pressed on relocating Missouri Guard/Reserve units from Lambert Airport3:06:27 and FA-XX sixth-generation fighter coordination with the Air Force3:08:35.

Rep. Clay Higgins (R-LA)3:09:55: Requested meetings on small shipyards and raised F-5 to F/A-18 simulator delays at Joint Reserve Base New Orleans3:11:48.

Rep. Eric Sorensen (D-IL)3:15:10: As a former meteorologist, asked about Navy weather-enterprise recruiting and NOAA data-sharing importance for military readiness3:16:29.

Rep. Don Davis (D-NC)3:20:16: Raised Camp Lejeune water contamination lawsuit settlements3:21:21 and Newport News shipbuilding supply-chain bottlenecks3:22:44.

Rep. Jen Kiggans / "Dr. Conaway" (R-VA)3:24:38: Questioned whether Iran is still firing at US assets post-ceasefire3:25:36 and DOL workforce-training cuts' effect on shipbuilding3:27:17.

Rep. Rob Wittman, Vice Chair, closing3:29:00: Closed the hearing pressing on amphibious ship funding accountability, the LSM (medium landing ship) program timeline, and use of the term "hull game" to describe delays3:33:163:35:11.

Key moments

Secretary Cao stated the US has only 188 flagged merchant ships and 105 military sealift ships compared to 11,000 Chinese ships, and that a full shipbuilding push could support 540,000 US jobs0:41:580:42:29.

Ranking Member Smith repeatedly attacked the proposed $22 billion (later cited at $17 billion) nuclear battleship as unaffordable and strategically misguided compared to cheaper autonomous systems0:24:360:46:37.

Rep. Norcross confronted Secretary Cao with page 17 of the shipbuilding plan referencing work performed "outside of the United States," accusing the administration of contradicting Buy American and MINDS Act mandates1:06:481:07:08.

Rep. Golden delivered an extended rebuke of the plan to build ship hulls in foreign yards, warning it would trigger Bath Iron Works layoffs and declaring "there's no way I will support that proposal"2:05:362:08:00.

Rep. Moulton calculated that the $17 billion battleship equals 68,000 Ukrainian-style $250,000 sea drones, the type Ukraine used to destroy much of Russia's Black Sea fleet2:25:462:25:33.

Admiral Caudle disclosed that without supplemental funding he will have to alter force generation by July and is already holding 12,000-15,000 new recruits due to funding shortfalls0:43:070:43:57.

General Smith and Admiral Caudle both confirmed the amphibious fleet is at roughly 50% readiness against an 80% requirement, with 31 ships legally required but roughly 36-45 needed to sustain a 3.0 ARG-MEU presence0:57:472:11:54.

A tense exchange saw Rep. Moulton press Secretary Cao on his Harvard fellowship and whether it made him "too woke," and on CVN-82 potentially being named for President Clinton, which Cao declined to directly answer2:27:592:28:44.

Secretary Cao revealed a 300 Navy diving/EOD community reference tied to suicide, citing his own PTSD and traumatic brain injury from recovering bodies in combat, and a fleet-wide message he released that morning2:42:082:42:29.

Rep. Goodlander secured on-record commitments from Secretary Cao and Admiral Caudle on Right to Repair legislation, shipyard hiring-freeze protections, and noted the Navy missed a January 31, 2026 deadline for a submarine supplier briefing2:26:292:27:562:29:58.

Metadata

CommitteeHouse Armed Services
Chamber / CongressHouse · 119th Congress
Date2026-05-14
TypeHearing
Witnesses
The Honorable Hung Cao — Acting Secretary of the Navy, Department of the Navy
Admiral Daryl Caudle — Chief of Naval Operations, United States Navy
General Eric Smith — Commandant, United States Marine Corps
Videoyoutube
Transcript661 caption blocks · 36,141 words · 3:35:51 runtime
EventCongress.gov 119273