Congress wants the Pentagon to use over $4 billion of its budget reconciliation package to upgrade the maritime industrial base, according to programmatic guidance tables that recommend supplier development, workforce support and technology modernization investments including the implementation of artificial intelligence and advanced manufacturing techniques.
This spending guidance, which was sent to the Pentagon last week by the leaders of the House and Senate Armed Services committees, lacks the force of law but communicates Congress’ intended use for the roughly $150 billion in defense spending provided to the Defense Department by the one-time reconciliation package.
In addition to marking billions of dollars for specific shipbuilding programs -- including $4.6 billion for a second Virginia-class submarine and $5.4 billion for two Arleigh Burke-class destroyers in fiscal year 2026 -- the guidance outlines multiple lines of investment for the maritime industrial base itself.
The largest item on this list is $750 million in supplier development aid, while another $450 million is directed towards unspecified workforce development programs. Workforce and supply chain problems are frequently cited by Navy and industry leaders, who are confronting delays and cost overruns on almost all active Navy shipbuilding programs.
Skilled trade workers are in high demand at public and private shipyards, with Navy estimates indicating the maritime industrial base needs to hire 25,000 workers each year over the next decade to meet construction and maintenance demand. Meanwhile, supply chain issues are limiting the production pace within these yards, with General Dynamics Electric Boat slowing its submarine production to match the pace of component deliveries.
In the spending guidance, $500 million is marked for “additional dry-dock capability” with an additional $500 million intended to facilitate the adoption of advanced manufacturing techniques for ship component and module work.
Another $450 million in the funding package is intended to support the application of autonomy and artificial intelligence for shipbuilding purposes including the adoption of new software techniques for ship production.
The guidance lists $400 million for the expansion of a “collaborative campus for naval shipbuilding,” adding that this initiative supports “new creative approaches” to meet President Trump’ shipbuilding executive orders.
Lawmakers also single out funding for next-generation shipbuilding techniques specifically to produce underwater drones, with $492 million to develop “modern manufacturing facilities for unmanned underwater vehicles, new end-to-end manufacturing line for a singular vessel, and specialized production lines for critical modules or components,” the document states.
Beyond industrial base investments, Congress’ spending guidance looks to provide a substantial funding boost to developing unmanned vessel programs, recommending $1.3 billion to expand UUV production, $1.5 billion to expand small USV production and $2.1 billion to expand “purpose-built medium unmanned surface vessel production.”
This week, the Navy moved ahead with plans to develop a Modular Attack Surface Craft (MASC) -- a new medium-sized USV capability born from the consolidation and reworking of its previous large and medium USV programs.
Further industrial base funding lines in the guidance include $250 million for further implementation of advanced manufacturing processes; $110 million to establish a new rolled steel production facility for critical submarine components; $85 million for a new steel plate production facility; and $50 million for a new large machining capacity project.