SAN DIEGO — The fiscal 2027 defense budget could double the number of ships the Navy is set to procure under the fiscal 2026 defense budget, Navy Secretary John Phelan said during a keynote address at the WEST Conference in San Diego, California, on Thursday.
While the 2026 budget allotted $27.2 billion dollars for the Navy to build 17 ships, Phelan said President Donald Trump’s proposed fiscal 2027 defense budget of $1.5 trillion could bump that number up to at least 34, with a large contingent of auxiliary and support ships.
“It is an area that we are in grave need of upgrading and I think the president has correctly addressed that in the budget,” Phelan said.
The Navy secretary said that the effort would help rebuild the maritime industrial base by focusing on the construction of ships that are easier to build than combat ships, which require complicated radar systems and nuclear propulsion systems.
The 2026 budget allocated money for vessels that include two Virginia-class fast-attack submarines, one Columbia-class ballistic missile submarine, three medium landing ships and one T-AGOS ocean surveillance ship, according to the House Appropriations Committee.
The news came as Phelan answered audience questions after delivering opening remarks that criticized the Biden administration for underfunding the shipbuilding industry and praised the arrival of the Golden Fleet.
“Between FY20 and FY24, the prior administration consistently underfunded Navy shipbuilding, requesting a cumulative $127 billion while Congress recognized the shortfall and enacted nearly $142 billion — a $15 billion gap that would have represented ships not built and capabilities not delivered,” Phelan said.
The Golden Fleet, which Trump announced in December 2025, will include two so-called Trump-class battleships. The president has claimed the vessels will be the biggest and fastest battleships in the world, 100 times more powerful than any ship ever built.
The Golden Fleet is about moving faster, building smarter and delivering capabilities now, Phelan said, adding that the initiative also aims to harness unmanned and artificial intelligence systems.
Riley Ceder is a reporter at Military Times, where he covers breaking news, criminal justice, investigations, and cyber. He previously worked as an investigative practicum student at The Washington Post, where he contributed to the Abused by the Badge investigation.
