AINavy and Marine Corps FY2027 budget and shipbuilding posture

Defense Posture and Global ThreatsSenate Armed Services · 2026-05-19 · 119th Congress
The Senate Armed Services Committee held this open hearing, following an earlier closed session, to examine the posture of the Department of the Navy in review of the FY2027 defense budget request and shipbuilding plan. Begins at 0:30:29
Transcript
Highlights

Title

Navy and Marine Corps FY2027 budget and shipbuilding posture

Purpose

The Senate Armed Services Committee held this open hearing, following an earlier closed session, to examine the posture of the Department of the Navy in review of the FY2027 defense budget request and shipbuilding plan. Acting Secretary of the Navy Hung Cao, Chief of Naval Operations Adm. Daryl Caudle, and Commandant of the Marine Corps Gen. Eric Smith testified on shipbuilding capacity, amphibious readiness, submarine programs, unmanned systems, and workforce issues. Members pressed the witnesses on shortfalls in destroyer and amphibious ship production, foreign shipbuilding, and reports of maintenance problems aboard the USS Gerald R. Ford. Begins at0:30:29

Who spoke

Chair Roger Wicker (R-MS)0:30:29: Opened by citing the $65 billion FY27 shipbuilding request for 18 battle-force ships0:30:56, noted the fleet stands at 291 ships against a 355-ship statutory requirement0:31:59, and flagged concerns over a reduction to one destroyer per year, zero funding for small unmanned surface vessels, and missing funding for the nuclear sea-launched cruise missile despite statutory direction0:33:290:34:000:34:29; later pressed Adm. Caudle on whether backed-up toilets aboard the Ford stemmed from misuse1:45:22.

Acting Sec. of the Navy Hung Cao0:36:20: Described current carrier and destroyer deployments defending allies and combating narco-terrorism0:36:46, outlined the $377.5 billion Navy budget adding four new ships and unmanned platforms0:37:44, and disputed reports of "food shortages, backed up toilets and low morale" aboard the Ford as "fake news"0:38:42; later said 80 ships are on contract with 59 in construction1:09:24 and that the department is targeting a 56-month OFRP requiring 40 amphibious ships2:05:42.

Adm. Daryl Caudle, Chief of Naval Operations0:41:16: Outlined the "Golden Fleet" and HEAD strategy for fleet design0:43:22, said the FY27 budget funds readiness accounts to 95%1:00:15, and reported the Columbia-class submarine program is 18 months behind plan with a 2028 delivery goal1:04:19; on the Ford toilet issue said reports were "highly exaggerated" and attributed most clogging to misuse1:44:001:45:09.

Gen. Eric Smith, Commandant of the Marine Corps0:46:06: Said restoring a 3.0 Amphibious Ready Group presence is the Marine Corps's "north star"0:46:38 but confirmed the Navy cannot currently sustain it0:50:40, estimating a need for closer to 40 amphibious ships versus the current 310:50:58; described a personal battlefield-medicine experience being shot in 2004 to underscore the need for room-temperature blood products1:13:55.

Sen. Jack Reed (D-RI), Ranking Member0:55:46: Asked about the status of Virginia Block VI and Columbia-class submarine contract negotiations0:56:17 and pressed on the $788 million submarine industrial base request and contingency plans if reconciliation funding is unavailable0:58:14.

Sen. Deb Fischer (R-NE)1:01:20: Criticized the FY27 budget for omitting SLCM-N funding despite a 2032 statutory deployment deadline1:01:20 and questioned Adm. Caudle on Ohio-class hull life-extension efforts1:05:31.

Sen. Angus King (I-ME)1:06:33: Cited Gen. Caine's statement that the Arleigh Burke destroyer is the "backbone" of the surface fleet and objected that the budget requests only one per year despite coming retirements1:07:05; called building destroyers in Japan or Korea "the worst idea since the Red Sox traded Babe Ruth"1:10:29 and submitted reports on foreign shipyard backlogs for the record1:10:53.

Sen. Ted Budd (R-NC)1:12:16: Asked about synthetic blood research at DARPA1:12:46, outdated electronic warfare ranges for F-35 training at Cherry Point1:14:20, a 500-billet shortfall in Marine Raiders1:15:23, and counter-UAS gaps at bases1:16:28.

Sen. Mazie Hirono (D-HI)1:17:32: Criticized $70 million spent on a since-abandoned Pearl Harbor shipyard production facility design1:17:32, pressed for extending H-2B visas through 2035 for Guam construction1:19:53, and sought commitments on airfield repairs at Joint Base Pearl Harbor and lease negotiations in Kawai involving the native community1:21:271:22:09.

Sen. Rick Scott (R-FL)1:22:43: Questioned Sec. Cao on progress toward clean financial audits1:23:08, on the plan to reach 40 amphibious ships1:24:07, and argued ship design should take six months, not years1:27:10.

Sen. Jacky Rosen (D-NV) [1:28:52 as Chair Wicker introduced her, spoke at 1:31:31]: Raised concerns about grazing-permit compensation for ranchers affected by the Nevada Test and Training Range expansion1:30:21 and infrastructure/housing shortfalls at Naval Air Station Fallon1:32:51.

Sen. Jim Banks (R-IN)1:34:00: Discussed the planned Navy flag officer assignment to Naval Support Activity Crane in Indiana to accelerate SLCM-N1:34:29 and questioned delays in scaling the "Ship OS" AI software platform1:37:47.

Sen. Tim Kaine (D-VA)1:39:21: Challenged Sec. Cao for calling reports of backed-up toilets and food shortages aboard the Ford "fake news," noting GAO had predicted the plumbing issue in 20201:40:181:40:46; submitted a Navy Times article for the record1:41:05 and raised the lack of a proposed pay raise for 250,000 Navy civilians1:44:00.

Sen. Ashley Moody (R-FL) [1:45:56, questions begin 1:48:34]: Highlighted the strategic importance of the Eglin Test and Training Range and the Military Mission Line protecting it from oil and gas encroachment under the 2006 Gulf of Mexico Energy Security Act1:49:181:50:07.

Sen. Mark Kelly (D-AZ)1:51:33: Walked Sec. Cao through a series of yes/no questions establishing that a weakened shipbuilding industrial base underlies Navy delivery problems and that the U.S. needs a viable commercial shipbuilding market1:51:571:52:43; referenced his Ships for America Act and warned against strategic dependence on foreign shipyards1:56:12.

Sen. Dan Sullivan (R-AK)1:59:58: Praised the new Marine Forces Alaska campaign plan2:00:26, advocated for reopening a Navy base in Adak, Alaska2:02:38, and pressed all three witnesses to commit to a 40-ship amphibious fleet consistent with the Vice Chairman's review2:05:09.

Sen. Jeanne Shaheen (D-NH)2:06:29: Pressed Sec. Cao on implementation delays exempting public shipyards from civilian hiring freezes and a pledge of no further shipyard layoffs2:06:59; raised an unfair labor practice complaint tied to Executive Order 142512:08:01 and asked about readiness strain from Middle East and Southern Command operations2:09:48.

Sen. Gary Peters (D-MI)2:12:44: Asked Gen. Smith about the strategic value of the Medium Landing Ship program2:13:26 and pressed on ensuring construction capacity and skilled workforce retention, including the University of Michigan's naval architecture program2:14:572:16:03.

Key moments

Chair Wicker said the fleet sits at 291 ships versus the statutory 355-ship requirement, and the FY27 plan still leaves 31 amphibious ships—nine short of the three-Amphibious-Ready-Group requirement0:31:590:32:54.

Sec. Cao's claim that reports of "food shortages, backed up toilets and low morale" aboard the Ford were "fake news"0:38:42 drew sustained pushback from Sen. Kaine, who cited a 2020 GAO report predicting the plumbing design flaw and press coverage from Navy Times, BBC and NPR1:40:181:40:46; Adm. Caudle ultimately called the reports "highly exaggerated," attributing clogging mainly to sailor misuse rather than design1:44:001:45:09.

Sen. King argued the budget's request for only one destroyer per year cannot keep pace with an average of three retirements annually, calling foreign construction of Navy destroyers "the worst idea since the Red Sox traded Babe Ruth to the Yankees"1:07:351:10:29; Sec. Cao replied the Navy currently has 80 ships on contract, 59 in construction at Bath alone, but needs the industrial base to "catch up"1:09:241:09:54.

Sen. Hirono said the Navy spent $70 million designing a Pearl Harbor shipyard production facility only to determine, after the fact, that the plan was cost-prohibitive—an outcome she called foreseeable from the start1:18:051:18:25.

Gen. Smith confirmed the Marine Corps cannot currently sustain a 3.0 Amphibious Ready Group presence and now estimates roughly 40 amphibious ships are needed versus the current 310:50:400:50:58; Sec. Cao later said he forwarded a recommendation for a 56-month OFRP cycle requiring 40 ships to the Secretary of War2:05:42.

Sen. Kelly walked Sec. Cao through a rapid-fire series of yes/no questions establishing that the U.S. lacks a viable commercial shipbuilding base (only 188 commercial-flagged and 105 military sealift ships, versus roughly 11,000 Chinese merchant ships) and that this is both an economic and wartime-readiness issue1:53:031:53:13.

Sec. Cao said it takes six to eight years to develop a destroyer and that the Navy is investing in AI-driven design tools to cut that to two years1:25:551:37:30; Sen. Scott pressed that ship design should take six months given modern tools1:27:10.

Adm. Caudle said the Columbia-class submarine program is 18 months behind schedule, targeting 2028 delivery, with new robotic welding and AI tools being deployed to close the gap1:04:191:04:49.

Sen. Fischer warned that continuing resolutions leave the Navy "behind the eight ball" on the Columbia and SLCM-N programs even when funding requests are adequate1:03:06; Adm. Caudle agreed "we are on the same page"1:04:02.

Adm. Caudle and Gen. Smith both fully endorsed the Vice Chairman of the Joint Chiefs' validation of a 40-ship amphibious fleet requirement, with Caudle calling it "a solid number... the correct number"2:05:592:06:22.

Sen. Shaheen noted civilian shipyard workers filed an unfair labor practice complaint over Executive Order 14251 stripping collective bargaining rights, which the administration allegedly refused to process despite an existing court injunction2:08:01; Sec. Cao said the Navy would comply with any court order2:09:16.

Metadata

Official titleClosed hearings to examine the posture of the Department of the Navy in review of the Defense Authorization Request for Fiscal Year 2027 and the Future Years Defense Program; to be immediately followed by an open hearing at approximately 11:00 a.m. in SD-G50.
CommitteeSenate Armed Services
Chamber / CongressSenate · 119th Congress
Date2026-05-19
TypeClosed Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript353 caption blocks · 15,318 words · 2:19:25 runtime
EventCongress.gov 338408