Last week, President Trump's executive order marked the start of a new push to rejuvenate the domestic maritime industry, but achieving the order's ambitions will require Congress to play a significant role, lawmakers and analysts told Inside Defense this week.
The “Restoring America’s Maritime Dominance” order directs the creation of a wide-ranging “maritime action plan” -- including various studies, incentive programs and legislative proposals -- over the next seven months, focused on the mostly dormant commercial maritime industry, as well as military shipbuilding.
“I would describe it as pretty benign, but not really that impactful,” House Armed Services seapower and projection forces subcommittee Ranking Member Joe Courtney (D-CT) told Inside Defense, noting that the order initiates plans and studies, but does not distribute funds or direct substantial immediate action.
Legislative and financial support for the order’s broad goals could be included in fiscal year 2026 authorization and appropriations legislation, or come in the form of the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act -- a bipartisan piece of maritime-focused legislation that aims to counteract China’s increasingly expansive military and commercial shipping presence with a range of provisions to overhaul the U.S. maritime sector.
According to Hudson Institute defense analyst Bryan Clark, the executive order functions as a “shot across the bow” meant to highlight the administration’s priorities and pair with the SHIPS Act, which is expected to be reintroduced in Congress next month. The legislation was initially introduced in December but did not receive a vote.
“On the commercial side, the executive order is really built around the idea that Congress is going to initiate some reforms that will increase financial incentives for industry to put more ships under U.S. flag, and also to build more ships in the United States,” Clark said.
“If you don't get the financial or at least some action on the legislative side, then the work that they're doing in that maritime action plan on the commercial side of the industry won't make a huge change,” he continued.
Though the bulk of the order focuses on commercial industry, it enlists the Elon Musk-led “Department of Government Efficiency” to review Pentagon and Department of Homeland Security vessel procurement. It also directs the defense secretary and other department heads to run their own review of government shipbuilding programs.
These two reviews, Clark said, are in part intended to “align responsibility and accountability” in Navy shipbuilding programs, which are struggling with cost growth, schedule delays and design maturity issues. The findings of these reviews, he said, are likely to inform future resource allocation and could lead to struggling programs being cut altogether.
“I think the executive order suggests that shipbuilding programs that are not making progress, that aren't delivering, are going to probably get de-emphasized in the next budget,” Clark said.
Earlier this month, Rep. Rob Wittman (R-VA) questioned the long-term viability of the Constellation-class frigate, which faces delays and still does not have a complete design, despite construction of the lead vessel beginning in 2022. The future of aircraft carriers has also been questioned, with House Appropriations defense subcommittee Chairman Ken Calvert (R-CA) asking in January if the vessels will be survivable in modern warfare, particularly against China’s rapidly evolving technological capabilities.
Clark said the reviews may also serve as the starting point to give program managers more centralized decision-making authority, while holding them accountable for the performance of their programs.
“Right now, you've got program managers who are, in theory, accountable for their ships, but they're not responsible for all the factors that go into the ships’ cost and schedule and performance,” he said.
In a recent change in the acquisition model for sealift ships, a private vessel construction manager, rather than a program manager from Naval Sea Systems Command, oversees design and construction. According to Courtney, this change is something the House Armed Services Committee will consider as part of holistic acquisition reform for Navy programs.
Lawmakers, he said, already have legislative staff working the issue for the forthcoming FY-26 defense authorization bill.
“It's being done by people who have a really strong background in shipbuilding and Navy acquisition, who are not satisfied with the status quo, and how DOGE can somehow come in and kind of override that work is something that I'm very skeptical of,” Courtney said.
Courtney cited recent analysis from The New York Times, which found DOGE’s estimated federal cost-cutting savings to be vastly overstated. According to the publication, Elon Musk’s anticipated goal of $150 billion in savings by the end of this fiscal year may be inaccurate, due to billion-dollar counting errors.
“In my opinion, their batting average and their track record is nothing to get too excited about,” Courtney said this week.
Courtney’s concerns were an exception to what was otherwise a warm response to the executive order in Congress, where it received bipartisan praise.
Sen. Tim Kaine (D-VA) -- ranking member of the Senate Armed Services seapower subcommittee -- said in a statement to Inside Defense he is “glad the administration is developing proposals to address our shipbuilding challenges,” and hopes the newly established White House shipbuilding office will aid in the effort.
In the House, Wittman said Congress stands ready to support the order, saying it will “restore U.S. maritime dominance, create new jobs, incentivize private investment in shipyards, and strengthen the United States at home and abroad.”
Industry backs ‘pivotal step’
The order also drew glowing reviews from industry, with shipbuilder HII, along with the Amphibious Warship Industrial Base Coalition, American Maritime Partnership and Shipbuilders Council of America praising the action.
According to SCA, which represents U.S. shipbuilders and affiliated companies, the order’s maritime action plan framework could be especially impactful. According to SCA President Mathew Paxton, this action plan amounts to a national maritime strategy -- something the group has long advocated for.
“We think something like a national maritime strategy, or this maritime action plan as it's called in the executive order, is really critical to understanding what's out there, what we need to invest in in order to build the fleet of the future, whether that's the commercial fleet, the Coast Guard fleet, the Navy fleet, whatever it looks like,” Paxton told Inside Defense.
In addition to aiding the formulation of a workforce development strategy, Paxton said the plan will help inform “investments across the industrial base in order to maximize the [return on investment] and make sure that we're set up for the next century of American naval power.”
Meanwhile, Amphibious Warship Industrial Base Coalition Chairman Paul Roden called the order a “pivotal step in revitalizing our shipbuilding industrial base, ensuring that amphibious warships remain a cornerstone of naval power,” in a statement shared with Inside Defense.
How the SHIPS Act relates to the executive order
Sens. Mark Kelly (D-AZ) and Todd Young (R-IN) and Reps. John Garamendi (D-CA) and Trent Kelly (R-MS) -- sponsors of the SHIPS Act -- expressed support for Trump’s executive order in a joint statement, saying they are encouraged that aspects of the order mirror provisions included in their proposed bill.
“This executive order recognizes the urgent need for a comprehensive approach to reinvigorate the U.S. shipbuilding and maritime industries, sharing the same goals as our SHIPS for America Act,” the lawmakers said.
A key provision of the SHIPS Act includes the establishment of a “maritime security adviser,” who would coordinate national maritime affairs and policy, update the National Maritime Strategy and lead a Maritime Security Board made up of representatives from every federal agency tied to the maritime industry.
The executive order does not designate an adviser nor create a Maritime Security Board. Yet, in March Trump announced the creation of a shipbuilding office within the White House's National Security Council led by Senior Director Ian Bennitt, with retired Navy captain Jerry Hendrix serving as senior counselor. It remains unclear what specific responsibilities fall under this office’s authority.
“To boost our defense industrial base, we are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding,” Trump said in last month’s joint address to Congress. “And for that purpose, I am announcing tonight that we will create a new office of shipbuilding in the White House and offer special tax incentives to bring this industry home to America where it belongs.”
The SHIPS Act would also form a Maritime Security Trust Fund, allowing federal money to flow toward maritime priorities without requiring annual appropriations negotiations.
This fund would be financed via penalties and fees collected on vessels in international commerce and proceeds from tonnage taxes and tariffs on foreign nations. A new duty on goods imported on Chinese-owned or flagged vessels would also be imposed under the bill.
The executive order follows this, tasking the U.S. Trade Representative with investigating “China’s unfair targeting of maritime, logistics, and shipbuilding sectors.” Chinese-made cranes and cargo handling equipment could also face tariffs, while fees could be imposed on foreign cargo. The Department of Homeland Security would be responsible for enforcing collection of harbor maintenance fees and imported goods charges.
The bill includes workforce recruitment and retention initiatives, including a mariner-designated public service loan forgiveness program, educational assistance eligibility, and eligibility for mariners to attend the Naval Postgraduate School.
In Trump’s order, mariner training and education are also highlighted. Within 90 days of the order, the defense secretary -- alongside other federal agency secretaries -- is expected to deliver a report to the president that recommends actions addressing workforce challenges throughout the maritime sector by implementing educational institutions and workforce transitions.
These recommendations will be included in the maritime action plan central to the executive order.
Growing interest from private investors
Since taking office, the Trump administration has encouraged private investors to contribute capital and experience to the maritime industry, and the new executive order directs the creation of additional incentive structures to do so.
The plan looks to establish “maritime prosperity zones” modeled on the existing “qualified opportunity zones,” which offer tax breaks to investors who put money into census tracts designated as economically distressed by the Treasury Department.
It also directs the creation of draft legislation establishing a broad financial incentive package to harness private investment for ship and component production and for infrastructure upgrades at production and maintenance yards.
According to Bill Farmer, who leads the aerospace, defense and government services team at investment banking firm Brown Gibbons Lang & Company, interest in the maritime industry among private equity groups is growing.
“We are fielding a number of questions and inquiries from fairly large private equity shops that are looking to potentially invest in the space now,” he told Inside Defense. “So, I think they've seen the writing on the wall that this is going to be an area of growth, an area of emphasis, and so I anticipate that our maritime, Navy-focused business will increase dramatically.”
So far, the most visible example of private capital entering shipbuilding is in Mobile, AL, where private-equity group CapZone Impact Investments LLC has, with substantial buy-in from the Navy, purchased 355-acres of shipyard property last September. The fund is now managing this land with the goal to expand industrial base capacity.
Rather than simply acting as passive investors, these groups will, like CapZone, take on management roles in the industry, Farmer continued, saying shipbuilding could benefit from outside expertise.
Some of this expertise lies in automation and emerging technologies, which could expedite production in an industry currently pinched by labor shortages. The Navy estimates that the total maritime industrial base will need to hire 25,000 skilled workers each year for the next decade to meet its demand for ship production and maintenance.
“I think there's a potential to increase production and capacity without necessarily a one-for-one increase in labor, just from an automation standpoint,” Farmer said. “I think to really ramp up the development and production, you're going to have to do something besides just throw labor at it.”
Paxton, president of SCA, said there is great potential for private capital to boost shipbuilding output, including through the implementation of emerging technology that could accelerate production. However, Paxton said the industry will continue to rely on substantial human labor, particularly in skilled trades.
In Congress, Courtney also highlighted the potential for manufacturing technology advances to accelerate production and improve the shipbuilding business case. However, he struck a measured tone on the feasibility of private investors transforming the industry.
“If people are putting in big amounts of cash to do that, hopefully they're smart enough to make sure they’ve got the right people to turn an industry -- which has had a return on investment that is not really that eye-catching -- into something more successful,” he said.