Budget Hearing - The United States Navy and Marine Corps

Defense Posture and Global ThreatsHouse Appropriations Subcommittee on Defense · 2026-05-12 · 119th Congress
The House Appropriations Subcommittee on Defense met to review the Department of the Navy's fiscal year 2027 budget request, totaling $377.5 billion, with testimony from Acting Secretary of the Navy Hung Cao, Chief of Naval Operations Admiral Daryl Caudle, and Commandant of the Marine Corps General Eric Smith. Begins at 0:04:20
Transcript
Highlights

Title

Navy and Marine Corps FY2027 budget posture hearing

Purpose

The House Appropriations Subcommittee on Defense met to review the Department of the Navy's fiscal year 2027 budget request, totaling $377.5 billion, with testimony from Acting Secretary of the Navy Hung Cao, Chief of Naval Operations Admiral Daryl Caudle, and Commandant of the Marine Corps General Eric Smith. Much of the hearing focused on the split between discretionary and mandatory (reconciliation) funding for shipbuilding, submarines, munitions and aircraft, the cost of sustained Middle East operations, and the need for a war-cost supplemental. Begins at0:04:20

Who spoke

Chairman Ken Calvert (R-CA)0:04:20: Opened by noting China now outbuilds the US Navy in warships and shipbuilding capacity by an estimated 200-to-10:05:39; pressed the witnesses throughout on why so many priority programs (F-35, Tomahawk, submarines) are funded through mandatory reconciliation rather than discretionary appropriations0:29:28; closed by pressing Caudle on when the Navy runs out of operating money2:03:42.

Ranking Member Betty McCollum (D-MN)0:10:44: Said the department's roughly $200 billion base-budget increase plus mandatory reconciliation funding amounts to a nearly 44% two-year rise, pushing total defense spending toward $1.6 trillion with a coming supplemental0:11:36; cited fuel costs rising from $154 to $195 a barrel0:12:31; repeatedly challenged Secretary Cao on the $16 billion first-ship, roughly $43 billion three-ship cost of the planned "guided missile battleship" before its design is finalized0:13:43,0:35:14,0:38:44.

The Honorable Hung Cao, Acting Secretary of the Navy0:15:07: Highlighted 34 new ships and 123 new aircraft in the $377.5 billion request0:16:45; said Navy and Marine leadership need both discretionary and mandatory funding passed, calling the split "really hard to differentiate"0:31:11; described studying Korean and Japanese shipyards (not buying foreign ships) to speed US production1:08:49.

Admiral Daryl Caudle, Chief of Naval Operations0:19:45: Outlined the "Golden Fleet" hedge strategy and Navy Fighting Instructions0:22:08; explained the new nuclear-powered "battleship" would use the Ford-class A1B reactor design with roughly 200 VLS cells0:36:27,0:37:48; told the committee the Navy will need to start altering training and certification events in July without additional funding2:03:42.

General Eric Smith, Commandant of the Marine Corps0:24:33: Said restoring a 3.0 Amphibious Ready Group/MEU presence is the Corps's "North Star"0:25:27; confirmed the Marine Corps has no items on its unfunded priorities list if both discretionary and mandatory funding are enacted0:53:08; said Marine drone/counter-drone technology exists but production rates, not capability, are the constraint2:01:20.

Rep. Steve Womack (R-AR)0:48:40: Asked Caudle about controlling shipbuilding "requirement creep" and praised Smith's zero-unfunded-priorities statement0:52:46.

Rep. Henry Cuellar (D-TX)0:53:40: Asked how the Navy is countering growing Chinese military and economic presence in Latin America, including a Chinese warship docking in Rio de Janeiro0:54:07, and pressed for expanded training exchanges with Mexican forces0:57:41.

Rep. John Carter (R-TX)0:59:16: Asked about CANO generator technology for the unmanned fleet0:59:16 and Navy efforts to protect data centers and bases from drone attack1:00:52.

Rep. Pete Aguilar (D-CA)1:04:10: Asked Cao to detail how the $29 billion war-cost figure cited by Under Secretary Hegseth's team breaks down within Navy/Marine Corps accounts1:05:06; pressed on extended ship deployments adding roughly 6% in added maintenance per 30 days at sea1:07:54.

Rep. Mario Diaz-Balart (R-FL)1:10:15: Praised SOUTHCOM commander Gen. Frank Donovan and Operation Southern Spear's reduction in maritime drug trafficking1:11:41; asked whether the surge posture will become permanent and how it will be resourced1:12:08.

Rep. Ed Case (D-HI)1:15:43: Questioned why Navy procurement is only 16% mandatory versus roughly 36% department-wide, and why the Marine Corps has almost no procurement in reconciliation at all; Caudle and Smith both said they don't set or fully understand OMB's allocation between the two funding buckets1:17:04,1:19:26.

Rep. Jake Ellzey (R-TX)1:21:11: Praised the witnesses' family ties to the Marine Corps and Navy service; asked how the Navy is changing acquisition practices to field capability faster, including possibly eliminating Naval Facilities Engineering Command1:24:57.

Rep. Laurel Lee (R-FL)1:27:07: Asked for an assessment of how long it will take to clear Iranian mines from the Strait of Hormuz after Operation Epic Fury concludes1:27:33, and about the budget's lack of funding for safer lithium-battery research1:29:25.

Rep. Chuck Fleischmann (R-TN)1:31:57: Asked how the Navy will incorporate nuclear propulsion into large surface combatants given nuclear shipyard constraints1:33:12, and about tactical nuclear options in the Indo-Pacific1:35:54.

Rep. [Morelli]1:37:35: Followed up on the mandatory-versus-discretionary funding question, asking whether OMB consulted the service chiefs on which programs went into which bucket1:38:05, and pressed for clarity on the total planned size of the Golden Fleet battleship class1:40:19.

Rep. Robert Aderholt (R-AL)1:43:44: Asked how the Navy is partnering with new industrial-base entrants like the Hadrian manufacturing facility in Muscle Shoals, Alabama1:44:11, and for a status update on the AUKUS submarine partnership1:46:56.

Rep. Marcy Kaptur (D-OH)1:50:07: Cited the Constitution's appropriations clause and objected to the lack of transparency on war spending, asking what wealthy Gulf allies who haven't committed troops are contributing1:51:30; also asked about modular shipbuilding potential in the Great Lakes region1:52:54.

Rep. Dave Joyce (R-OH)1:56:37: Asked about accelerating new production technologies such as press-connect fittings to speed shipbuilding and maintenance1:57:35.

Key moments

McCollum said the Navy's request includes $16 billion for the first new "guided missile battleship" and about $43 billion for three ships over five years, while the concept design is still unfinished and length, fuel type, and munitions load are unknown0:13:43,0:35:14; Caudle later confirmed the ship will be nuclear-powered using Ford-class reactor technology0:36:27,0:37:48.

Cao and McCollum sparred directly over the $1 billion in FY27 procurement for the battleship's long-lead items despite no finalized design — McCollum told Cao "show me the design, show me the product, show me what you're buying with my tax dollars"0:39:41.

Calvert noted Columbia- and Virginia-class submarine programs are delayed 18 to 42 months despite heavy investment, and that carriers, destroyers and amphibious ships all face growing delivery delays0:07:19.

Rep. Case pressed Caudle and Smith on why Navy procurement is only about 16% mandatory versus roughly 36% department-wide, and why Marine Corps procurement has almost none in reconciliation; both service chiefs said they were not part of OMB's decision on which programs go into which funding bucket1:17:04,1:19:26,1:20:16.

Smith told Womack the Marine Corps' unfunded priority list has "no items to report" if both discretionary and mandatory funding are enacted, calling it an "extraordinary" statement0:52:46,0:53:08.

Caudle said extending a ship's deployment by 30 days adds roughly 6% to its maintenance burden, meaning a five-month extension adds about 30% more maintenance — directly applicable to the USS Ford's extended deployment1:07:54,1:08:09.

Kaptur invoked the Constitution's appropriations clause, calling the administration "completely negligent" in reporting war expenditures, and pressed for wealthy Gulf states like Saudi Arabia, Kuwait, Qatar, the UAE and Oman to help fund Middle East operations rather than US taxpayers1:51:05,1:51:57.

Aguilar asked Cao to detail the Navy/Marine Corps share of a $29 billion war-cost figure cited earlier that day by Under Secretary Hegseth's team; Cao said the total covers ship, aircraft and munitions expenditures and offered a classified briefing on munitions levels1:05:06,1:05:59.

Calvert closed by asking Caudle directly when the Navy will run out of money; Caudle said he will have to start altering training, operations and certification events by July absent a supplemental, prompting Calvert to call for immediate passage of a war supplemental2:03:42,2:04:10.

Cao said the Navy's requested funding split ($338.7 billion discretionary, $38.8 billion mandatory) reflects deferred maintenance and dry-docking backlogs from the Iraq and Afghanistan wars, when dry-dock cycles stretched from six to ten years0:31:11,0:31:40.

Metadata

CommitteeHouse Appropriations Subcommittee on Defense
Chamber / CongressHouse · 119th Congress
Date2026-05-12
TypeHearing
Witnesses
The Honorable Hung Cao — Acting Secretary of the Navy
Admiral Daryl Caudle — Chief of Naval Operations
General Eric Smith — Commandant of the Marine Corps
Videoyoutube
Transcript273 caption blocks · 20,896 words · 2:05:16 runtime
EventCongress.gov 119266