MEMORANDUM FOR THE SECRETARY OF WAR

THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET

THE ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS

SUBJECT:       Rebuilding the United States Navy and America’s Shipbuilding Industrial Base

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby direct:

Section 1.  Purpose.  The United States Navy has experienced a series of shipbuilding setbacks stemming from overly complex designs and iterative design change procedures, which have resulted in cost growth, delays, and cancellations.  The lack of capacity and competition among shipbuilders has resulted in large backlogs of orders across six major Navy shipbuilding programs and a commercial shipbuilding sector that is not globally competitive.  An atrophied shipbuilding industrial base, coupled with diminished adjacent supplier bases, has expanded delays and increased costs.  The Department of War shall restore both capacity and competition to the maritime industrial base as it expands our naval force structure.  It will use proven, reliable, and affordable technologies and ship designs, as well as award contracts that enable purchases from foreign suppliers in the near term while simultaneously incentivizing investment in America’s shipbuilding industrial base, consistent with other major equipment purchases such as icebreakers.  My Administration has already taken steps to revitalize and rebuild the domestic maritime industry and workforce to promote national security and economic prosperity in Executive Order 14269 of April 9, 2025 (Restoring America’s Maritime Dominance).  To build upon the actions ordered in that Executive Order, this memorandum sets forth additional actions to further strengthen the United States Navy and America’s Shipbuilding Industrial Base.

Sec. 2.  Restoring Steam and Hydraulic Systems to Carriers.  Within 60 days of the date of this memorandum, the Secretary of War, in consultation with the Secretary of the Navy, shall provide to the President, through the Director of the Office of Management and Budget (OMB) and the Assistant to the President for National Security Affairs (APNSA), a plan on the required measures to replace the Electromagnetic Aircraft Launch System and Advanced Weapons Elevators with steam and hydraulic systems for the construction of CVN-81, including timelines and resourcing requirements.

Sec. 3.  Expanding Investment and Competition in the United States Maritime Industrial Base.  (a)  Pursuant to 10 U.S.C. 8679(b), I have determined that it is in the national security interest of the United States to increase domestic shipbuilding capacity using the Memorandum of Understanding of October 9, 2025, between the United States and Finland with regard to medium icebreaker construction as a model.  This “Finland Model” shall be used for up to three ship classes described in subsections (b)(i) and (b)(ii) of this section, provided that the foreign supplier:

(i)    simultaneously builds a new shipyard in the United States or assumes ownership or a majority equity position in an existing shipyard in the United States, and builds all ships after the first two such ships in United States shipyards;

(ii)   hires and trains an American citizen workforce for the United States shipyards;

(iii)  licenses the proprietary shipbuilding techniques and technologies used at the parent foreign shipyard to the United States shipyards; and

(iv)   sources a United States supply chain for construction and maintenance of all ships at the United States shipyards.

(b)  Within 90 days of the date of this memorandum, the Secretary of War shall:

(i)   in consultation with the Secretary of the Navy, submit a plan to the President, through the Director of OMB and the APNSA, that includes timelines and resourcing requirements, for a new competitive acquisition approach for surface combatants with sufficient inherent capabilities to perform anti‑submarine warfare, surface warfare, and convoy escort duties, allowing for proposals based on the international procurement model described in subsection (a) of this section; and

(ii)  in collaboration with the Secretary of Commerce and the Secretary of Transportation, and in consultation with the Administrator of the Maritime Administration and the Secretary of the Navy, submit to the President a plan to direct the use of financial resources pledged in various trade deals led by the Secretary of Commerce and the United States Trade Representative on behalf of the President on investments in the United States maritime industrial base.  This plan should address meeting the requirements for Consolidated Cargo Replenishment at Sea (CONSOL) Tankers and –- separately — Roll-On, Roll-Off Vessels, outlining a new competitive acquisition approach allowing for CONSOL Tankers and Roll-On, Roll-Off Vessel proposals based on the Finland Model described in subsection (a) of this section.

(c)  The Navy shall not impose iterative design changes upon the original mature parent designs within the above programs implemented pursuant to the plans developed under subsections (a) through (b) of this section.  No changes from parent designs shall be made without the approval of the Secretary of War, in consultation with the Secretary of the Navy, the Director of OMB, and the APNSA.  

(d)  I hereby delegate to the Secretary of War the authority under 10 U.S.C. 8679(a) to make the national security determination that a particular construction contract meets the conditions set forth in section 3(a) of this memorandum and therefore qualifies for a waiver, and the authority under 10 U.S.C. 8679(b)(2) to notify the Congress of each national security determination made under section 3(a) of this memorandum for purposes of waiving the general prohibition on Armed Forces shipbuilding in foreign shipyards.  Consistent with 10 U.S.C. 8679(b)(2), no contract may be made pursuant to this waiver until 30 days after the determination is received by the Congress.

Sec. 4.  Fifth Public Navy Shipyard.  Within 120 days of the date of this memorandum, the Secretary of War, in consultation with the Secretary of the Navy, shall submit to the President, through the Director of OMB and the APNSA, a plan to increase nuclear-powered submarine and aircraft carrier readiness that will include the use of private sector capabilities and the establishment of a fifth public Navy Yard.  The plan for the fifth yard shall address:  sufficient drydock capacity to service the planned growth of the fast attack submarine fleet over the next two decades; locations proximate to the United States Pacific Fleet, including in the continental United States, Alaska, Hawaii, and the United States territories; site options that include up to three new drydocks designed and built to hold the ranges of every current and projected class of submarine; innovative financing mechanisms such as public-private partnerships; and timelines and resourcing requirements.

Sec. 5.  Component Repair Center.  Within 90 days of the date of this memorandum, the Secretary of War, in consultation with the Secretary of the Navy, shall submit to the President, through the Director of OMB and the APNSA, a plan to establish a Component Repair Center to receive new and refurbish old components and parts as required by the submarine repair industrial base.  The plan shall identify geographically centralized locations proximate to major road, rail, and river transportation networks, and include such resourcing requirements as necessary to maintain at least one “ship set” of spare equipment for the Los Angeles, Virginia, Seawolf, Ohio, and Columbia classes.

Sec. 6.  Reforming Naval Sea Systems Command (NAVSEA).  Within 120 days of the date of this memorandum, the Secretary of War, in consultation with the Secretary of the Navy, shall submit to the President, through the Director of OMB and the APNSA, a review of NAVSEA, including recommendations for implementing personnel, organizational, and structural reforms. The objective of these reforms should be to:  introduce results‑based accountability for NAVSEA leadership, determined by speed of delivery of vessels and systems; reduce bureaucracy and red tape; eliminate competing priorities among different NAVSEA components, which often result in delayed, cost-prohibitive, or overly complex vessels and systems; and prevent NAVSEA from imposing redesigns or iterative design changes upon original mature parent designs.

Sec. 7.  General Provisions.  (a)  Nothing in this memorandum shall be construed to impair or otherwise affect:

(i)  the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

                             DONALD J. TRUMP