Nine for the Navy: Proposals to Accelerate a Delayed Naval Buildup

hina has been preparing to be militarily ready for a possible war in the Pacific by 2027. It is therefore essential that the U.S. Navy seriously increase both its capacity and its firepower at sea. This report outlines nine proposals that should be considered in determining funding for naval readiness under the National Defense Authorization Act (NDAA) for fiscal year (FY) 2026. Although these proposals admittedly do not address all of the Navy’s current needs, if adopted and supported with the necessary resources, they would seriously enhance America’s ability to deter China in the near term.

What follows is best viewed as a down payment on a multiple-year naval rebuilding program that has been too long deferred and is now urgently needed to enable America to deter war this decade and win the New Cold War. With this in mind, the following proposals would require the commitment of $153 billion for a Naval Act procurement plan of 45 warships and $9.7 billion in additional spending over the President’s proposed FY 2026 budget. These investments would lay the foundation for a rapid expansion of the naval shipbuilding, munitions production, and forward operations that are vital to victory.

Nine Proposals to Set the Course for Naval Revival

Proposal No. 1: Naval Act 2026. A modern naval act, as it did in 1938, can enhance the nation’s naval shipbuilding capacity for a potential war with China. Ideally as a stand-alone bill, it would draw attention to a national security priority while not competing directly with other military service budget needs.1

 It also would further protect shipbuilding from fluctuating and tardy budgets that have caused needed capacity investments to be delayed.

Ordering warships in multiples, known as block buys, provides efficiencies that result in savings. Recent experience indicates savings of up to 15 percent. The Congressional Budget Office notes that the cost of warships increased by upwards of 10 percent as building proceeded and delays ensued.2

However, to enable the Navy and shipbuilders to make the best engineering decisions and capital investments, a new contracting mechanism—Shipyard Accountability and Workforce Support (SAWS)—is needed.3

 This is not a novel approach for commercial, large, and capital-intensive projects, but it is not currently how Congress and the Navy run naval shipbuilding. Using the most recent long-range shipbuilding plan from March 2024, an update of which is long overdue, this effort would include 45 warships already in series production with a stable design at a pre-savings cost of $153 billion.4