WASHINGTON, D.C. — President Donald Trump ordered the Pentagon on Aug. 13 to develop a new Navy procurement model that can temporarily shift construction of certain U.S. military ships to foreign yards in exchange for investment in American shipbuilding capacity, part of a broader overhaul aimed at cutting delays, expanding repair infrastructure and increasing competition.
The presidential memorandum allows the Department of War to pursue the approach for as many as three ship classes, using a U.S.-Finland agreement for medium icebreakers as the model. Foreign suppliers could build the first two vessels abroad before shifting subsequent production to U.S. shipyards.
Participation would require the foreign shipbuilder to construct a new U.S. yard or acquire ownership or a majority equity position in an existing one. The company would also have to hire and train American workers, license its shipbuilding technology and techniques to U.S. operations, and establish a domestic supply chain for construction and maintenance.
The policy represents a potentially significant change in naval procurement as the administration seeks foreign industrial capacity to bridge near-term production gaps while expanding the domestic shipbuilding base.
Federal law generally restricts construction of Armed Forces vessels in foreign shipyards. Trump delegated authority to the Secretary of War to make national-security determinations qualifying projects under the memorandum for statutory waivers, with Congress receiving notice at least 30 days before a contract can be executed.
Within 90 days, the department must develop a competitive acquisition plan for a new class of surface combatants capable of anti-submarine warfare, surface warfare and convoy escort missions. International shipbuilders meeting the U.S. investment requirements could submit proposals.
The administration also directed officials to develop a plan for using financial commitments from U.S. trade agreements to invest in the domestic maritime industrial base, including procurement of Consolidated Cargo Replenishment at Sea tankers and roll-on, roll-off vessels.
For programs using the new model, the Navy would be restricted from imposing iterative changes to mature parent ship designs. Any departures would require approval from the Secretary of War in consultation with the Navy secretary, Office of Management and Budget and White House national security officials.
The memorandum attributes Navy shipbuilding delays and cost increases in part to complex designs, repeated design changes and insufficient competition among shipbuilders. It cites backlogs across six major Navy shipbuilding programs and weakness in the commercial shipbuilding sector.
Trump also directed the Pentagon to examine reversing two major technology changes aboard the future USS Doris Miller, or CVN-81.
Within 60 days, officials must submit a plan detailing the timeline and resources required to replace the Electromagnetic Aircraft Launch System and Advanced Weapons Elevators planned for the carrier with steam and hydraulic systems.
The order doesn’t itself execute the conversion. It requires the department to determine the measures necessary to make the change during construction of CVN-81.
The administration is separately moving to expand maintenance capacity for the Navy’s nuclear-powered fleet.
Within 120 days, the Secretary of War must submit a plan for establishing a fifth public Navy shipyard, which the White House described as the first new public naval yard in more than 80 years.
The plan must examine locations near the Pacific Fleet, including sites in the continental U.S., Alaska, Hawaii and U.S. territories. Officials must consider as many as three new dry docks capable of accommodating current and projected submarine classes.
The administration also directed officials to consider public-private partnerships and other financing mechanisms for the project.
A separate Component Repair Center would stock, repair and refurbish equipment for the submarine fleet. The Pentagon has 90 days to identify potential locations near major highway, rail and river transportation networks.
The facility would be designed to maintain at least one “ship set” of spare equipment for the Los Angeles, Virginia, Seawolf, Ohio and Columbia submarine classes.
Trump also ordered a review of Naval Sea Systems Command, or NAVSEA, within 120 days, with recommendations for personnel, organizational and structural changes.
The review is supposed to establish greater accountability for delivery speed, reduce bureaucracy and prevent the organization from imposing redesigns or repeated changes to mature ship designs.
The directives build on an April 2025 executive order focused on expanding U.S. maritime capacity and a February 2026 Maritime Action Plan covering commercial and defense shipbuilding, repair facilities, component suppliers, ports and workforce development.
The administration’s procurement overhaul would not affect every outstanding engineered shipbuilding program. Rather, the memorandum establishes planning deadlines and waiver authority for selected programs while leaving implementation subject to federal law and congressional appropriations.
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