President Trump signed a National Security Presidential Memorandum on Thursday intended to resolve long-term issues in Navy shipbuilding and restore capacity to the maritime industrial base.
The directive orders the Secretary of War to establish a fifth naval shipyard, representing the first such expansion in over 80 years. This new facility is designed to increase the nation’s capacity for repairing submarines and aircraft carriers. Additionally, the Secretary of War will establish a Component Repair Center tasked with the maintenance and refurbishment of critical components for all major submarine programs.
To mitigate cost growth and delays caused by complex designs, the memorandum directs the replacement of advanced electromagnetic aircraft launch systems and advanced weapons elevators with traditional steam and hydraulic systems during the construction of the CVN-81. The administration also plans to undertake a full review and reorganization of the Naval Sea Systems Command to address systemic challenges in shipbuilding.
The administration will also implement a new investment strategy for the American shipbuilding industrial base, utilizing a model previously applied to the Coast Guard’s medium icebreaker program. Under this arrangement, foreign shipbuilders may be temporarily allowed to build up to two ships in their home shipyards to address urgent gaps, provided they make significant investments in U.S. shipyards and train an American workforce.
The move seeks to address a lack of competition and capacity that has led to significant backlogs across six major Navy shipbuilding programs. The administration noted that an atrophied industrial base and a shrinking supplier base have exacerbated delays and increased costs.
These actions follow the establishment of the Office of Maritime and Industrial Capacity at the National Security Council and the release of a Maritime Action Plan in February 2026. The plan focuses on expanding commercial and defense shipbuilding, improving supply chains, and enhancing port infrastructure. This effort is supported by a $9 billion allocation for Arctic security cutters and a directive to increase naval strength to levels not seen since the Reagan administration.
