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 faced numerous challenges in shipbuilding due to overly complex designs and frequent design changes, leading to increased costs, delays, and project cancellations. A lack of capacity and competition among shipbuilders has created significant backlogs in six major Navy shipbuilding programs and a non-competitive commercial shipbuilding sector. The weakened shipbuilding industrial base and reduced supplier networks have exacerbated these delays and costs. The Department of War is tasked with restoring both capacity and competition to the maritime industrial base as our naval force structure expands. This will involve using proven, reliable, and affordable technologies and ship designs, as well as awarding contracts that support foreign supplier purchases in the short term while encouraging investment in America’s shipbuilding industrial base, in alignment with other major equipment purchases like icebreakers. My Administration has already initiated efforts to revitalize and rebuild the domestic maritime industry and workforce to foster national security and economic prosperity, as outlined in Executive Order 14269 of April 9, 2025 (Restoring America’s Maritime Dominance). This memorandum builds upon those actions to further enhance the United States Navy and America’s Shipbuilding Industrial Base.
Sec. 2. Restoring Steam and Hydraulic Systems to Carriers
Within 60 days from the date of this memorandum, the Secretary of War, in coordination with the Secretary of the Navy, is directed to present a plan to the President, via the Director of the Office of Management and Budget (OMB) and the Assistant to the President for National Security Affairs (APNSA). This plan will outline the necessary steps to replace the Electromagnetic Aircraft Launch System and Advanced Weapons Elevators with steam and hydraulic systems for constructing CVN-81, including timelines and resource requirements.
Sec. 3. Expanding Investment and Competition in the United States Maritime Industrial Base
(a) In accordance with 10 U.S.C. 8679(b), I have determined that increasing domestic shipbuilding capacity is crucial for national security. The Memorandum of Understanding dated October 9, 2025, between the United States and Finland regarding medium icebreaker construction will serve as a model. This “Finland Model” will apply to up to three ship classes specified in subsections (b)(i) and (b)(ii), provided the foreign supplier:
(i) Builds a new shipyard in the United States or takes ownership or a majority equity stake in an existing U.S. shipyard, and constructs all ships following the first two in U.S. shipyards;
(ii) Hires and trains an American workforce for the U.S. shipyards;
(iii) Licenses proprietary shipbuilding techniques and technologies to U.S. shipyards; and
(iv) Sources a U.S. supply chain for construction and maintenance of all ships in U.S. shipyards.
(b) Within 90 days of the date of this memorandum, the Secretary of War shall:
(i) In collaboration with the Secretary of the Navy, submit a plan to the President, through the Director of OMB and the APNSA, detailing timelines and resource requirements for a new competitive acquisition strategy for surface combatants with the capability to perform anti-submarine warfare, surface warfare, and convoy escort tasks, allowing proposals based on the international procurement model described in subsection (a); and
(ii) In cooperation 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 allocate financial resources pledged in various trade deals led by the Secretary of Commerce and the United States Trade Representative on behalf of the President, towards investments in the U.S. maritime industrial base. This plan should address the requirements for Consolidated Cargo Replenishment at Sea (CONSOL) Tankers and Roll-On, Roll-Off Vessels, outlining a competitive acquisition approach based on the Finland Model described in subsection (a).
(c) The Navy shall not implement iterative design changes on the original mature parent designs within the programs developed under subsections (a) through (b). No changes from parent designs shall occur 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 delegate to the Secretary of War the authority under 10 U.S.C. 8679(a) to determine if a construction contract meets the criteria set forth in section 3(a) of this memorandum, thereby qualifying for a waiver. Additionally, under 10 U.S.C. 8679(b)(2), the Secretary of War is authorized to notify Congress of each national security determination made under section 3(a) for the purpose of waiving the prohibition on Armed Forces shipbuilding in foreign shipyards. Consistent with 10 U.S.C. 8679(b)(2), no contract may proceed under this waiver until 30 days after Congress receives the determination.
Sec. 4. Fifth Public Navy Shipyard
Within 120 days of this memorandum, the Secretary of War, in consultation with the Secretary of the Navy, shall submit a plan to the President, via the Director of OMB and the APNSA, to enhance nuclear-powered submarine and aircraft carrier readiness. This includes utilizing private sector capabilities and establishing a fifth public Navy Yard. The plan should address sufficient drydock capacity to support the fast attack submarine fleet’s growth over the next two decades, consider locations near the United States Pacific Fleet, including the continental United States, Alaska, Hawaii, and U.S. territories, and explore site options for up to three new drydocks designed to accommodate all current and projected submarine classes. Additionally, innovative financing mechanisms such as public-private partnerships, along with timelines and resource requirements, should be included.
Sec. 5. Component Repair Center
Within 90 days from the date of this memorandum, the Secretary of War, in consultation with the Secretary of the Navy, is directed to present a plan to the President, via the Director of OMB and the APNSA, for establishing a Component Repair Center. This center will handle new and refurbished components and parts as required by the submarine repair industrial base. The plan should identify geographically centralized locations near major transportation networks and include resource requirements 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 this memorandum, the Secretary of War, in coordination with the Secretary of the Navy, will provide a review of NAVSEA to the President, via the Director of OMB and the APNSA. This review should include recommendations for personnel, organizational, and structural reforms aimed at introducing results-based accountability for NAVSEA leadership, determined by the speed of delivery of vessels and systems. It should also focus on reducing bureaucracy, eliminating competing priorities among NAVSEA components, and preventing redesigns or iterative design changes on original mature parent designs.
Sec. 7. General Provisions
(a) Nothing in this memorandum should be interpreted 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 will be implemented in accordance 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 by law or in equity by any party against the United States, its departments, agencies, entities, officers, employees, agents, or any other person.
DONALD J. TRUMP
