Secretary John Phelan Addresses Lawmakers on FY2026 Budget Strategy
Today, Navy Secretary John Phelan sought to reassure legislators about the department’s shipbuilding plans, emphasizing that the Navy’s current and future demands are well within its capacity. His remarks come amidst ongoing debates over the fiscal year 2026 budget proposal, which reportedly does not include any Arleigh Burke-class destroyers (DDGs) within the base budget.
Oversupply of Ships Meets Workforce Capacity
Phelan asserted that the Navy is already equipped with more ships than the shipyards can handle over the next decade, including destroyers, tankers, oilers, and submarines. “I have more ships than our shipyards can handle for the next 10 years, whether it’s a destroyer, whether it’s a tanker, whether it’s an oiler, whether it’s a submarine. So, I am not worried about the demand signal we have,” he told House lawmakers during testimony alongside acting Chief of Naval Operations Adm. Jim Kilby and Marine Corps Commandant Gen. Eric Smith.
He emphasized the importance of workforce development and private sector collaboration, stating, “It’s getting those workers and getting them trained… I think it’s [incentivizing] the private sector to help us as well. So, this is a whole-of-government approach.”
Questions over Shipbuilding Funding and Consistency
The comments from Phelan responded to Representative Jared Golden (D-Maine), whose district includes workers at General Dynamics Bath Iron Works, a primary contractor for Navy destroyers. Golden noted that recent reconciliation bills in Congress propose funding for two DDGs, intended to supplement a steady baseline of two ships annually—highlighting ongoing discussions about the future of ship procurement.
While the full FY26 budget request from the White House has yet to be released, lawmakers have intermittently shared information based on Pentagon testimony. Phelan refrained from commenting directly on the shipbuilding budget specifics but confirmed it “will fare quite well.”
Industry and Political Concerns Over Production Stability
Golden expressed concerns about maintaining consistency in the Navy’s shipbuilding efforts. “The Navy must provide consistency if it expects industry to meet the Pentagon’s desired production cadence,” he said. Golden pointed out that shipyards are being asked to sustain a rate of 1.5 ships per year, yet the Navy’s demands do not always align with those expectations, risking workforce fluctuations and instability.
Similarly, Senator Roger Wicker (R-Miss.), in a Senate hearing with Phelan, echoed these concerns but stopped short of a direct response. Instead, he accused the White House of attempting to “game the budget” by not including certain ships in the base request, relying instead on future reconciliation funding to fill gaps.
The Ongoing Debate Over Fleet Size and Budget Strategy
As discussions about the Navy’s future focus on balancing shipbuilding capacity, budget allocations, and industry stability, Phelan’s remarks aim to reassure lawmakers that current plans are sustainable. Meanwhile, concerns about budget transparency and commitment to steady production rates continue to challenge policymakers and industry stakeholders alike.
