SPF Hearing: Update on Navy Programs and Capabilities for Seapower and Projection Forces

House Subcommittee on Seapower and Projection Forces

2025-06-04

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Source: Congress.gov

Summary

This meeting discussed the Department of the Navy's upcoming fiscal year posture, focusing on budget details and current threat environments, with participants emphasizing the need for consistent procurement signals and strengthening the industrial base[ 00:11:15 ] .

Budget and Procurement Stability

Concerns were raised about the delayed submission of the administration's budget, the required five-year defense plan, and the 30-year shipbuilding plan[ 00:14:47 ]

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. The initial budget appendix showed a significant reduction in the Shipbuilding and Conversion, Navy (SCN) account, with uncertainty surrounding a reconciliation bill to backfill the delta. Lawmakers stressed the importance of a reliable demand signal for the industrial base to promote investment and workforce stability[ 00:12:04 ] . The upcoming budget is expected to support the cadence of one Columbia and two Virginia class submarines per year. There are concerns about potential delays in carrier advanced procurement, which could disrupt production centers and increase costs[ 01:07:02 ]

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Industrial Base and Workforce Challenges

Shipbuilding challenges are attributed to inconsistent signals, workforce shortages, and reduced output from shipyards[ 00:12:04 ] . The need to return to production rates of two Virginia-class submarines and at least two destroyers per year, along with getting programs like the frigate back on track, was highlighted[ 00:11:52 ] . Dr. Seidel emphasized the importance of fostering mutual trust, respect, and accountability with industrial partners, focusing on cost, schedule, and quality, and optimizing the entire ecosystem rather than individual programs[ 00:20:46 ]

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. Workforce development, including wage increases, remains a critical focus for the submarine and maritime industrial bases, with continued funding efforts discussed.

Naval Capabilities and Force Design

The Navy and Marine Corps are focused on delivering capabilities and capacity, prioritizing Columbia-class submarine funding and warfighting readiness enhancements. The lead ship of the Constellation-class frigate is three years behind schedule due to design changes and workforce issues, but efforts are underway to stabilize the design and address challenges[ 00:38:40 ]

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. The Marine Corps aims for a continuous 3.0 Amphibious Ready Group/Marine Expeditionary Unit (ARGMU) presence, which requires balancing the repair of existing ships with the procurement of new ones. The 31-ship mandate for amphibious ships is considered inadequate for this goal, necessitating an assessment of inventory requirements and readiness improvements[ 01:15:42 ]

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. The Medium Landing Ship (LSM) is crucial for stand-in forces, and despite past delays, significant progress has been made toward its procurement. Both services are aggressively pursuing unmanned capabilities (USVs/UUVs) to extend reach and lethality, and recapitalizing their C-130 fleets to the J-model to minimize airlift gaps. The Navy also maintains a strong requirement for a 6th generation fighter and emphasizes the importance of maintaining aircraft carriers on consistent 4.5-year centers with advanced procurement. Less capable ships like cruisers are being decommissioned to reallocate funds to modernize more capable destroyers.

Acquisition Reform and New Technologies

The need for greater agility in acquisition processes to keep pace with rapidly evolving technology was discussed. Both the Navy and Marine Corps are actively leveraging new technologies like artificial intelligence (AI) and 3D printing for repair, construction, and combat systems[ 01:10:23 ]

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. Additive manufacturing is being integrated, with plans for 33 additively manufactured parts in upcoming SSGN availabilities, and AI is seen as a transformative force across all domains, from combat systems and navigation to maintenance and war gaming[ 01:10:39 ]

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Forward Deployment and Logistics

Guam's strategic importance as a forward-deployed location in the Indo-Pacific was acknowledged, with discussions around deploying additional support assets[ 00:48:41 ]

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. The Navy assesses that two submarine tenders are sufficient for current mission requirements but continuously evaluates needs. Considerations are being made to forward deploy unmanned systems to enhance ISR and deterrence, in coordination with Indo-PACOM and Pacific Fleet Commanders[ 00:50:33 ]

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. The Marine Corps frequently uses Anderson Air Base in Guam for its KC-130 operations. The Military Sealift Command (MSC) is critical for logistics but faces significant workforce challenges, leading to sidelined ships, and the Navy is committed to collaborating with MSC and MARAD to address these issues[ 00:58:34 ]

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. Logistics is identified as a pacing function for the Marine Corps, with a focus on pre-positioning networks and maritime pre-positioning ships in contested environments[ 00:46:16 ]

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Tone of the Meeting

The tone of the meeting was generally serious and conveyed a sense of urgency, particularly regarding delays in budget submission and shipbuilding production rates[ 00:14:47 ]

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. Witnesses expressed commitment and cautious optimism about future improvements and the importance of collaborative efforts between the Navy, Marine Corps, Congress, and industrial partners[ 00:20:46 ]

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Participants

Transcript

the subcommittee will come to order.  I ask unanimous consent that the chair be authorized to declare a recess at any time without objection so ordered.  Thank you everyone for being here today to discuss the Department of the Navy's posture for the upcoming fiscal year.  I understand that we will be getting more budget details from the Department of the Navy in the weeks to come and this subcommittee looks forward to seeing how the budget decisions for fiscal year 2026 measure up to our current threat environment.   This subcommittee along with the full armed services committee has long been concerned about the net growth for our naval fleet.  We simply cannot divest more ships than we produce in a fiscal year, sacrificing capability and a critical window for deterrence.  For example, we must return to the rate of two Virginia class submarines per year and continue to procure at least two destroyers per year.  Challenges with shipbuilding can at least be partially blamed upon the mixed signals we have sent to the shipbuilding industrial base for years.   The resulting workforce issues and the diminished output from shipyards are just some of the most glaring examples of the harm done.  We must send consistent signals about our procurement for critical programs and I look forward to discussing how we can do that as well as how we can get some struggling programs like the frigate back on track.   We could discuss shipbuilding for the entire hearing, but we cannot elect the many aviation and munitions programs that are needed for peer competition.  I look forward to discussing the plans for critical platforms like the P-8 and the KC-130Js, as well as critical munitions like the SM-6 and heavyweight torpedoes that underpin our deterrent posture.   We must continue to invest in critical platforms and critical capabilities if we expect to further President Trump's peace through strength agenda.  I'm encouraged by the prospects of additional money for shipbuilding, aviation platforms, and critical munitions in the ongoing budget reconciliation process.  However, this is only the beginning of a national effort to strengthen our defense industrial base.
It is only through consistent investment in our military and its systems and platforms that we can deliver on the promise of peace through strength.  I now recognize my good friend, ranking member Joe Courtney, for his opening statement.
Thank you, Chairman Kelly, and thank you to all the witnesses today.  All three of our witnesses are accomplished professionals who bring a wealth of experience and knowledge to their portfolios, and we really appreciate your service.   As our subcommittee meets today on June 4th, we are less than four months away from the start of the next fiscal year, and the administration has still failed to send Congress an actual budget with the necessary details to fund specific accounts and a five-year defense plan, which is required by law.  A 30-year shipbuilding plan, which the law also mandates, should be submitted at the same time as the budget submissions.  None of that has actually been transmitted to the Hill so far.   This budget submission and we did some research at the staff level is actually as of today is the latest in history and by all what we're hearing is it's probably going to be the last week of June that we actually finally get the real budget document.   As if this lateness isn't bad enough, the budget appendix, which was released on Friday, provided only top lines for accounts with no funding line breakdown.  It did include a request for $20.8 billion for shipbuilding and conversion of the Navy, the SCN account, which on its face is a drastic reduction from last year's SCN account when   It was finally enacted at the end of the process, appropriated $36.6 billion.  The math is pretty simple.  The SCN account, as submitted, is $15.7 billion lower.  We're certainly being told that the reconciliation bill, which still has not been enacted, will backfill this delta since it included $33 billion for Navy shipbuilding, although I think it's important to note that in that $33 billion were a number of items that really are not SCN items.   All positive, but they really don't count towards ship hulls So but the real question is how can we assume that the reconciliation bill clearly?  Will backfill because it states clearly that those funds can be obligated over a four-year period through September 30th 2029
So at this point, again, we still don't really have the final list that's going to be in the reconciliation bill process.  Senator Wicker a couple of days ago released his own version of the reconciliation bill, and it looks different than what came out of the House.  So, you know, between that   fluidity and the fact that we still have not gotten an itemization in the budget that should be submitted by now, it's still guesswork for everybody, Congress, industry, and the Navy, in terms of just what is the   you know, base that we're going to be sort of working off of.  And as I said, you know, time's wasting.  We've got a very short period of time before the start of the next fiscal year in the joint testimony that was submitted today.  The witnesses correctly stated that the Navy must continue to provide a reliable demand signal to the industrial base to broaden interest, strengthen commitment   and encourage investment at all levels.  And that's something which our subcommittee believes wholeheartedly, which is that procurement stability is one of the keys to really boosting investment and workforce facility technology that we need to really get shipbuilding up to the proper level.   This panel has a long history of using its authorizing power to create procurement stability with multi-year contracts, robust funding, and timely decision-making, which, again, Chairman Kelly's leadership has definitely fostered those goals.  But we are facing a big challenge this year to achieve those goals.   And I know we'll work together, everybody on the committee, to work towards a sensible mark.  Our witnesses today may not be able to fill in all the blanks that we're faced with, but I look forward to their insights and their perspective on what the Navy and Marine Corps require.  Thank you, Mr. Chairman.  I yield back.
Thank you.   Mr. Courtney, we have three witnesses today.  We have Dr. Seidel, who we're going to give the mic to first.

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