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The US Congress has passed a significant piece of legislation known as the One Big Beautiful Bill Act, which allocates $29 billion to revitalize the nation’s shipbuilding and maritime industrial base. This package, endorsed by Donald Trump, was approved just before the White House's July 4 deadline.
This legislative initiative aims to bolster America's shipbuilding capabilities, primarily to support the US Navy and enhance national security. It includes new projects, substantial investments, and policy reforms intended to breathe new life into the maritime industry, which has faced a steady decline over the years.
The bill designates a total of $29 billion for shipbuilding and the maritime industrial sector, with most of this funding directed towards the Navy. The service has been grappling with delayed shipbuilding projects and issues such as repair holdups, supply chain disruptions, and workforce shortages.
Specifically, $5 billion from the bill is earmarked for naval shipbuilding projects. Key spending areas encompass $250 million to expedite training programs for the defense manufacturing workforce, $750 million aimed at developing suppliers within the naval shipbuilding supply chain, and $250 million to introduce advanced manufacturing processes into the naval supply sector.
Additionally, the bill allocates $500 million to support additive manufacturing—a strategy not commonly used by private sector shipbuilders—$400 million for the creation of a collaborative campus dedicated to naval shipbuilding, and another $500 million to integrate artificial intelligence (AI) into naval shipbuilding operations.
While the bill primarily addresses the needs of the Navy, several provisions may also benefit the struggling commercial shipbuilding sector. For instance, it includes $500 million for advanced manufacturing across the shipbuilding industrial base, another $500 million for the development of sophisticated shipbuilding techniques, and $500 million aimed at training workers for the broader maritime industry.
However, some experts believe the bill’s direct impact on commercial shipbuilding might be limited, as the industry has significantly dwindled over time. Notably, the legislation does not provide funding for the next Constellation-class frigate hull, which was excluded from the Navy’s budget request for 2026. Instead, Congress chose to finance other programs, such as $1.8 billion for the US Marine Corps’ Landing Ship Medium, a long-awaited vessel, and $2.1 billion for the development and acquisition of the Medium Unmanned Surface Vessel (MUSV), a newer naval technology.
These programs have been viewed as contentious in the past but have gained considerable support under this legislative package. Furthermore, the bill establishes a new Office of Maritime and Industrial Capacity within the National Security Council at the White House, following previous executive orders that aimed to create a Maritime Action Plan to help rejuvenate America’s maritime industry.
Despite the substantial funding, the US shipbuilding sector continues to face significant challenges, including a severe shortage of skilled labor, an aging workforce nearing retirement, and the high costs associated with shipbuilding in the US compared to foreign shipyards. Critics have pointed out that while the bill offers robust support for Navy requirements, it may fall short of reviving large-scale commercial shipbuilding, which has declined over the past several decades.
