Washington, August 14, 2026 (Yes Punjab News)
US President Donald Trump has opened the door for foreign companies to build selected vessels for the US Navy, as his administration seeks to revive the country’s shipbuilding industry, expand naval capacity and tackle significant construction backlogs.
Under a presidential memorandum signed on Thursday, overseas suppliers will be allowed to build the first two vessels in selected ship classes. The participating companies will, however, be required to invest in US shipyards, transfer technology and train American workers.
All subsequent vessels under the programme must be constructed in the United States. Foreign participants will also have to establish a new American shipyard or acquire a controlling interest in an existing facility, while developing a US-based supply chain for shipbuilding and maintenance.
The policy draws on the “Finland Model”, which was adopted in October 2025 for medium icebreakers. The model can be applied to up to three classes of Navy and support vessels, including surface combatants, tankers and roll-on/roll-off ships.
The memorandum said foreign construction would help address immediate capacity constraints while the US rebuilds its domestic industrial base.
“The Department of War shall restore both capacity and competition to the maritime industrial base as it expands our naval force structure,” Trump said.
The administration attributed delays, cancellations and cost overruns in major Navy programmes to complex ship designs and frequent design changes. It said six major Navy shipbuilding programmes were facing substantial backlogs, while the US commercial shipbuilding industry had lost global competitiveness.
The memorandum directs the Secretary of War to submit an acquisition plan within 90 days for new surface combatants capable of anti-submarine warfare, surface warfare and convoy escort missions.
The Navy will also be restricted from repeatedly modifying mature foreign designs selected under the programme. Any changes will require approval from the Secretary of War after consultation with senior Navy, White House and budget officials.
Trump has separately authorised the Secretary of War to approve national security waivers allowing military vessels to be built at foreign shipyards. Congress must be notified of such decisions, and contracts cannot be signed until 30 days after lawmakers receive the determination.
The order also calls for a plan within 60 days to replace electromagnetic aircraft-launch systems and advanced weapons elevators planned for the future aircraft carrier CVN-81 with traditional steam and hydraulic systems.
In another major measure, the administration has ordered preparations for a fifth public Navy shipyard — the first such facility in more than 80 years. Officials have 120 days to identify potential locations near the Pacific Fleet, including Alaska, Hawaii, US territories and the continental United States.
The proposed shipyard could have up to three dry docks capable of servicing all current and projected submarine classes. Private-sector expertise and public-private financing models may also be considered.
The administration has also ordered the creation of a component repair centre to store, repair and refurbish parts for the Los Angeles, Virginia, Seawolf, Ohio and Columbia submarine classes.
A separate review will examine reforms to the Naval Sea Systems Command, focusing on faster deliveries, reducing bureaucracy and strengthening accountability.
FOLLOW NOW
