AINavy and Marine Corps FY2027 shipbuilding and readiness posture

Defense Posture and Global ThreatsSenate Armed Services Subcommittee on Emerging Threats and Capabilities · May 19, 2026 · 119th Congress
The Senate Armed Services Subcommittee on Emerging Threats and Capabilities met to examine the Department of the Navy's fiscal year 2027 budget request, following an earlier classified session on the same posture topics. Begins at ▶ 0:30:29
Transcript
Highlights

Title

Navy and Marine Corps FY2027 shipbuilding and readiness posture

Purpose

The Senate Armed Services Subcommittee on Emerging Threats and Capabilities met to examine the Department of the Navy's fiscal year 2027 budget request, following an earlier classified session on the same posture topics. Chair Wicker opened by highlighting the $65 billion shipbuilding request for 18 battle force ships, while raising concerns about the shrinking amphibious fleet, reduced destroyer procurement, unmanned systems funding gaps, and the unfunded nuclear sea-launched cruise missile program. Witnesses Acting Secretary of the Navy Hung Cao, Chief of Naval Operations Admiral Daryl Caudle, and Commandant of the Marine Corps General Eric Smith testified on shipbuilding, readiness, and modernization priorities. Begins at▶ 0:30:29

Who spoke

• Chair Roger Wicker (R-MS)▶ 0:30:29: Outlined the $65 billion shipbuilding request for 18 battle force ships against a legally required 355-ship fleet versus the current 291 ships▶ 0:31:59; flagged the amphibious shortfall of 31 vs. needed ~40 ships▶ 0:32:54, the cut to one destroyer per year despite three retirements annually▶ 0:33:29, zero funding for small unmanned surface vessels▶ 0:34:00, and the unfunded nuclear sea-launched cruise missile program despite statutory direction▶ 0:34:29; later pressed witnesses on plumbing issues aboard USS Gerald R. Ford▶ 1:44:29.

• Asst. Sec. Hung Cao, Acting Secretary of the Navy▶ 0:36:20: Described a $377.5 billion budget adding new ships, aircraft, and unmanned systems and funding readiness to 95%▶ 0:37:44; denied reports of food shortages and "backed up toilets" aboard the Ford as exaggerated "sea stories"▶ 0:38:42▶ 1:41:18; discussed 80 ships on contract with 59 in construction▶ 0:58:56▶ 1:25:55, support for extending H-2B visas to 2035 for Guam construction▶ 1:20:20, and a pledge not to cut shipyard workers▶ 2:07:12.

• Adm. Daryl Caudle, Chief of Naval Operations▶ 0:41:16: Presented the "Golden Fleet" and "HEAD" strategy for fleet modernization▶ 0:43:22; said the Columbia-class submarine program is 18 months off plan with delivery targeted for 2028▶ 1:04:19; on the Ford's plumbing, called reports "highly exaggerated" and attributed clogs mostly to misuse, estimating under 1% of flushes affected▶ 1:42:43▶ 1:45:09; committed to 40 amphibious ships▶ 2:05:59.

• Gen. Eric Smith, Commandant of the Marine Corps▶ 0:46:06: Said the Corps cannot sustain a 3.0 Amphibious Ready Group presence without steady funding, now assessing the need at closer to 40 amphibious ships versus the current 31▶ 0:50:40▶ 0:50:58; described unmanned drone and counter-UAS shortfalls▶ 0:54:37▶ 1:16:47; recounted being shot in 2004 and the need for room-temperature battlefield blood products▶ 1:13:55; discussed the Marine Raiders' roughly 500-billet shortfall▶ 1:15:23 and the new Marine Forces Alaska initiative▶ 2:00:49.

• Sen. Jack Reed (D-RI), Ranking Member▶ 0:55:46: Asked about status of Virginia Block VI and Columbia-class submarine contract negotiations▶ 0:55:46; questioned the $788 million submarine industrial base request and contingency if reconciliation funding lapses▶ 0:58:14; probed fleet readiness accounts▶ 1:00:01.

• Sen. Deb Fischer (R-NE)▶ 1:01:20: Criticized the absence of sea-launched cruise missile funding in the FY27 budget and warned continuing resolutions undermine Columbia-class delivery▶ 1:01:20; got confirmation the Columbia program is 18 months behind schedule▶ 1:04:19; asked about extending Ohio-class submarine hulls, learning the Navy will do at least one PIRA▶ 1:05:31.

• Sen. Angus King (I-ME)▶ 1:06:33: Cited General Caine's statement that Arleigh Burke destroyers are "the backbone" of the fleet and objected to the budget requesting only one destroyer despite multiple retirements▶ 1:07:05; called building Navy ships abroad "the worst idea since the Red Sox traded Babe Ruth" and submitted reports on foreign shipyard backlogs for the record▶ 1:10:29.

• Sen. Ted Budd (R-NC)▶ 1:12:16: Asked about synthetic blood research for combat casualty care▶ 1:12:16, outdated electronic warfare training ranges for F-35s at Cherry Point▶ 1:14:20, Marine Raider staffing shortfalls▶ 1:15:23, and counter-UAS base defense▶ 1:16:28.

• Sen. Mazie Hirono (D-HI)▶ 1:17:32: Criticized $70 million spent on a since-abandoned shipyard production facility design at Pearl Harbor▶ 1:17:32; pressed for H-2B visa extension to 2035 for Guam projects▶ 1:19:53; sought commitments on Joint Base Pearl Harbor airfield repairs, where 62% of parking spots can't support C-17 aircraft▶ 1:21:06, and on Navy lease negotiations in Hawaii▶ 1:22:09.

• Sen. Rick Scott (R-FL)▶ 1:22:43: Questioned progress toward a clean financial audit▶ 1:23:08; pressed on the plan and timeline to reach 40 amphibious ships, told 2032▶ 1:24:07; challenged why ship design takes years rather than six months▶ 1:27:10.

• Sen. Jacky Rosen (D-NV) [1:29:19 as Chair Wicker introduced; questioner begins ~1:31:31]: Raised compensation for Nevada ranchers losing grazing permits under the B-16/B-17 range expansion▶ 1:30:21; secured commitments from Secretary Cao and Admiral Caudle to continue negotiations and address Fallon housing shortfalls of 172 needed military homes▶ 1:32:51▶ 1:33:19.

• Sen. Jim Banks (R-IN)▶ 1:34:00: Discussed strategic importance of basing a Navy admiral at Naval Support Activity Crane, Indiana to accelerate SLCM-N fielding▶ 1:34:29; asked about relocating program offices closer to production sites▶ 1:35:58 and the pace of ShipOS AI software rollout, told execution will reach 63% by July and 98% by September▶ 1:38:10.

• Sen. Tim Kaine (D-VA)▶ 1:39:21: Challenged Secretary Cao's characterization of Ford plumbing problems as "fake news," entering a Navy Times article into the record▶ 1:40:18; pressed Admiral Caudle, who called the reports "highly exaggerated"▶ 1:43:58; also noted no proposed pay raise for the Navy's 250,000 civilian employees▶ 1:44:00.

• Sen. Ashley Moody (R-FL)▶ 1:45:48: Highlighted the Eglin Test and Training Range's role in hypersonic and unmanned weapons testing▶ 1:47:06; asked about preserving the Military Mission Line boundary against oil and gas encroachment under the Gulf of Mexico Energy Security Act▶ 1:49:36.

• Sen. Mark Kelly (D-AZ)▶ 1:51:33: Ran a series of yes/no questions with Secretary Cao establishing that a weakened U.S. shipbuilding industrial base, lack of commercial shipbuilding, and an aging sealift fleet threaten wartime readiness▶ 1:51:57▶ 1:53:37; promoted his Ships for America Act▶ 1:55:20; warned against strategic dependence on foreign shipyards▶ 1:56:12.

• Sen. Dan Sullivan (R-AK)▶ 1:59:58: Praised the new Marine Forces Alaska campaign plan▶ 2:00:26; discussed $115 million in Alaska Navy base rebuilding funds▶ 2:02:38; obtained commitments from all three witnesses supporting a 40-ship amphibious fleet target validated by the Vice Chairman of the Joint Chiefs▶ 2:05:34▶ 2:05:59.

• Sen. Jeanne Shaheen (D-NH)▶ 2:06:29: Pressed on hiring delays and reduction-in-force protections at public shipyards despite prior commitments▶ 2:06:59; raised an unfair labor practice complaint tied to Executive Order 14251▶ 2:08:01; asked about readiness strain from sustained Middle East and Caribbean operations pulling resources from the Indo-Pacific▶ 2:09:48; flagged the withheld $14 billion in Taiwan arms sales without seeking a response▶ 2:12:21.

• Sen. Gary Peters (D-MI)▶ 2:12:45: Asked General Smith about the medium landing ship's importance for Indo-Pacific operations▶ 2:13:26; discussed Michigan shipbuilding capacity for the program▶ 2:14:57 and the University of Michigan's naval architecture program's role in addressing workforce shortages▶ 2:16:31.

Key moments

• Chair Wicker noted the fleet stands at 291 ships against a decades-old statutory requirement of 355, calling prior shipbuilding plans unrealistic "peacetime" assumptions▶ 0:31:59.

• Secretary Cao said his oldest son commissions as a Marine second lieutenant in three days and invoked his family's escape from communism in 1975 as motivation for the budget▶ 0:39:40▶ 0:40:11.

• General Smith told Chair Wicker the Marine Corps cannot sustain a 3.0 Amphibious Ready Group without years of steady funding, and that the real amphibious ship requirement is closer to 40, not the current 31▶ 0:50:40▶ 0:50:58.

• Sen. King objected to a budget requesting only one destroyer per year against roughly three annual retirements, and blasted proposals to build destroyers in Japan or Korea as incompatible with the Berry Amendment's "made in USA" standard▶ 1:07:05▶ 1:10:29.

• Sen. Kaine directly challenged Secretary Cao for calling reported "backed up toilets" and food shortages aboard USS Gerald R. Ford "fake news," entering a Navy Times article into the record; Admiral Caudle ultimately called the reports "highly exaggerated" rather than confirming or denying the underlying problem▶ 1:41:07▶ 1:43:58.

• Admiral Caudle disclosed the Columbia-class submarine program is 18 months behind schedule, targeting 2028 delivery▶ 1:04:19.

• Secretary Cao revealed the U.S. has only 188 commercial-flagged ships and 105 military sealift ships compared to roughly 11,000 Chinese merchant ships▶ 1:26:25▶ 1:26:54.

• Sen. Hirono criticized $70 million spent designing a shipyard production facility at Pearl Harbor that was later found "cost prohibitive," calling the expenditure unjustifiable▶ 1:18:05.

• Sen. Sullivan secured on-record commitments from Cao, Caudle, and Smith supporting a 40-ship amphibious fleet target validated by the Vice Chairman of the Joint Chiefs▶ 2:05:34.

• Secretary Cao confirmed ShipOS software funded a year earlier in the reconciliation bill is only at 19% execution now, but projected 63% by July and 98% by September, blaming delayed appropriations▶ 1:38:10.

• Sen. Shaheen noted the administration is withholding $14 billion in approved Taiwan arms sales despite a January congressional notification, citing concerns about China's continued interest in Taiwan▶ 2:12:21.

Metadata

Official titleHearings to examine the science and technology priorities in review of the Defense Authorization Request for Fiscal Year 2027 and the Future Years Defense Program.
CommitteeSenate Armed Services Subcommittee on Emerging Threats and Capabilities
Chamber / CongressSenate · 119th Congress
DateMay 19, 2026
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript353 caption blocks · 15,318 words · 2:19:25 runtime
EventCongress.gov 338411