US shipyards, such as Newport News Shipbuilding shown here, have been offering better wages and benefits to boost their workforces. (Janes/Michael Fabey)
US Navy (USN) leadership is pushing hard for significantly greater funding for a larger USN force envisioned by the Trump administration, despite analyst warnings of issues and concerns about the service being able to build and sustain such a naval power.
During his 12 February keynote speech at the West 2026 conference in San Diego, USN Secretary John Phelan noted the fiscal year (FY) 2027 budget request could include funding for 34 ships, or twice the number of ships included in the FY 2026 shipbuilding budget of about USD27.2 billion.
Speaking to reporters on 10 February at a media roundtable during the conference, Admiral Daryl Caudle, chief of naval operations (CNO), said a Congressional Budget Office (CBO) report estimated an average annual shipbuilding budget of about USD38 billion was “in line” with what is needed for an adequate USN force.
“This is a resource issue,” Adm Caudle said, adding historical defence spending trends, as correlated with times of “peace”, indicate that defence funding should be sustained at about 4% of GDP.
The CNO said he needed to make sure leadership understood “what the navy brings to bear” and to “stimulate that through compelling argument”.
However, the navy is asking increased funding at a time when the service has had a spotty record with recent acquisitions. While service officials note they are reforming their processes, analysts still spotlight some continuing issues with naval shipbuilding.
“Ships take longer and cost more,” Ronald O’Rourke, a noted naval analyst who recently retired from the Congressional Research Service (CRS), said on 12 February during a panel discussion at the West 2026 conference.
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