Department of the Navy Fiscal Year 2026 Budget Request

2025-06-11

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Summary

The meeting of the House Committee on Armed Services focused on the Department of the Navy's FY26 budget request and broader challenges facing the Navy and Marine Corps.[ 00:42:07-00:42:09 ]

Witnesses and committee members expressed concerns regarding budget delays, shipbuilding inefficiencies, fleet readiness, and the need for significant reforms to maintain the nation's maritime superiority, particularly in the face of rising global threats.[ 00:42:17-00:42:21 ]

Themes

Shipbuilding and Industrial Base

There is a widespread acknowledgment that shipbuilding programs are significantly over budget and behind schedule.[ 00:42:21-00:42:21 ]

Secretary Phelan stated that even the best-performing program is six months late and 57% over budget, calling all programs "a mess." Members emphasized the need to expand shipyard capacity, potentially opening new shipyards, and improve the maritime industrial base, which is deemed a national security imperative. Efforts include encouraging creative teaming agreements between traditional and non-traditional defense companies and making substantial investments to accelerate shipbuilding.[ 00:42:24-00:42:26 ] [ 00:44:03-00:44:05 ] Wage increases for submarine workers and investments in shipyard infrastructure (SIOP) were highlighted as positive steps. Concerns were raised about maintaining a consistent demand signal for ship production to support the workforce and avoid layoffs.

Acquisition Reform

The current defense acquisition system is viewed as too slow, rigid, and bureaucratic, impacting delivery timelines and costs.[ 00:43:21-00:43:26 ]

[ 00:43:43-00:43:43 ] Bipartisan legislation, the SPEED Act, has been introduced to streamline and modernize the process, focusing on equipping warfighters quickly and cost-effectively.[ 00:43:33-00:43:43 ] Witnesses suggested abandoning rigid program-of-record requirements for certain capabilities, particularly unmanned systems, to accelerate fielding.[ 01:04:58-01:05:03 ] The requirements process itself was identified as a major problem, often leading to "gold-plated" requirements and perfectionism that hinder progress.[ 01:03:58 ]

Readiness and Fleet Condition

Readiness is a top priority, with the goal of achieving an 80% surge-ready vision for the entire fleet, including amphibious forces, which are currently in unsatisfactory condition.[ 00:44:39-00:44:48 ]

[ 00:56:33-00:56:41 ] Deferred maintenance on ships and under-investment in infrastructure have created significant backlogs. The Navy is working to reduce maintenance delays and improve manning and training to enhance combat surge readiness.[ 00:56:46 ] Specific concerns were raised about the number of operational amphibious ships needed to maintain a persistent 3.0 ARGMU (Amphibious Ready Group/Marine Expeditionary Unit) presence.

Personnel and Quality of Life

Recruitment and retention are critical issues, with the Navy facing significant manning gaps at sea.[ 00:56:52-00:56:52 ]

[ 01:51:06-01:51:08 ] Despite challenges, the Navy saw increased recruiting last year and is on pace to meet targets for 2025.[ 00:57:04-00:57:04 ] Investments in quality of service, such as pay raises, unaccompanied housing, and childcare, are emphasized to attract and retain talent.[ 00:56:26-00:56:26 ] The state of barracks and other housing facilities, particularly in Guam, was highlighted as deplorable, prompting immediate action and broader reviews.

Technological Advancement (Unmanned Systems/Drones)

The rapid pace of innovation in autonomous systems and drones is a significant focus. There's a push to leverage commercial undersea technology and quickly field unmanned underwater vehicles to meet mission needs.[ 01:30:48-01:31:13 ]

The importance of flexible acquisition methods for unmanned systems was stressed due to quickly evolving technology, as seen in the Ukraine conflict. While drones offer new capabilities and efficiencies, questions remain about their ability to replace manned platforms for certain strategic functions, such as providing a sovereign airfield like an aircraft carrier. The Marine Corps is exploring and training with drone technology, emphasizing the need for authorities to operate and train with them.

Geopolitical Threats and Global Operations

China is identified as the primary competitor, with its naval fleet nearing 400 ships and a goal of projecting power and influence. The Navy and Marine Corps are deepening cooperation with allies in the Indo-Pacific to strengthen deterrence. Operations in the Red Sea against Iranian-backed Houthis have highlighted the strain on the munitions industrial base and the need for new kinetic and non-kinetic weapons. Discussions included strategies for deterring an attack on Taiwan, focusing on areas like long-range fires, counter C5ISRT, terminal defense, contested logistics, and non-traditional sea denial.

Tone of the Meeting

The tone of the meeting was largely serious, concerned, and urgent, but also cooperative and forward-looking.[ 00:42:10-00:42:14 ]

Committee members and witnesses acknowledged significant challenges within the Navy and Marine Corps, particularly regarding shipbuilding, readiness, and adapting to modern warfare.[ 00:56:29-00:56:29 ] There was a strong emphasis on collaboration between Congress and the military leadership to find solutions, with repeated calls for transparency and actionable plans.[ 01:02:25-01:02:31 ] Despite the gravity of the issues, there was an underlying commitment to maintaining U.S. naval superiority and supporting service members and their families.