Navy’s 2027 Shipbuilding Budget Could Exceed 2026 Plans

Secretary of the Navy John Phelan announced that the upcoming Fiscal Year 2027 shipbuilding budget could potentially exceed the number of ships planned for Fiscal Year 2026, which included a total of 19 hulls at a cost of $47.3 billion. This ambitious shift was revealed during Phelan’s address to the crew aboard the USS George Washington (CVN-73) on April 28, 2025, and further discussed at the WEST 2026 conference.

The Fiscal Year 2026 budget was bolstered by additional funding from the Reconciliation Act, allowing for an expanded range of vessels. Looking ahead, Phelan indicated that the Navy aims to procure a significantly larger number of ships in 2027. He stated, “You should expect at least more than double [the number of ships]… There is a pretty big contingent of auxiliary and support ships.”

This push for increased shipbuilding is framed within the context of a broader strategy to revitalize the United States maritime industrial base. Phelan highlighted the need to modernize auxiliary and support vessels, which typically require less complex construction than combat ships equipped with advanced radar or nuclear propulsion systems. He believes these enhancements are crucial for addressing existing deficiencies within the fleet.

Phelan also referred to the Navy’s recent introduction of two new warship classes, part of the administration’s Golden Fleet initiative. He articulated the goal of this strategy: “The logic behind the Golden Fleet is about solving the decline in the maritime industrial base by changing the variables of the equation that have been broken for decades.” The initiative seeks to ensure that investments in naval capabilities reflect costs that are sustainable.

The new ship classes include the FF(X), a patrol frigate based on the Coast Guard’s National Security Cutter, and the Trump-class battleship, designed as a large surface combatant. These will complement planned unmanned systems, contributing to an overall effort to refresh and modernize U.S. naval forces.

Phelan emphasized a disciplined approach to rebuilding the fleet, which incorporates a balance of high-end platforms, including next-generation battleships and continued production of destroyers, carriers, and submarines. The strategy also involves integrating lower-end vessels and unmanned systems to enhance operational flexibility and sustainability.

Within the context of the Reconciliation Act, the Navy has allocated $4.9 billion for the development of unmanned systems. Currently, the service is evaluating multiple candidates for medium unmanned surface vessels (MUSV), with potential offerings from companies such as Blue Water Autonomy, HII, Saronic, and Anduril. The Navy has not yet finalized its selection for the MUSV programs.

Phelan noted the establishment of the Portfolio Acquisition Executive Robotic Autonomous System (PAE RAS), which will oversee the integration of these unmanned technologies. He pointed out that the inclusion of RAS in the Navy’s plans opens up opportunities for new investors and innovators, potentially transforming traditional naval shipbuilding.

Despite the focus on unmanned and auxiliary vessels, Phelan underscored the continued necessity for traditional manned warships. He countered assertions that new carriers and battleships might be rendered obsolete, stating, “Something that moves like a ship is much harder to hit than a stationary target like a base or missile silo.” He reaffirmed the critical role of carriers in maintaining naval and American military power.

As the Navy moves toward its 2027 budget proposal, Phelan’s remarks signal a significant commitment to enhancing the fleet’s capabilities and addressing long-standing challenges within the maritime industrial sector. The anticipated focus on auxiliary ships and unmanned systems reflects a strategic pivot that could reshape naval operations in the coming years.