Navy to Boost Ship Procurement in FY '27 Budget

Secretary Phelan says next year's budget will focus on auxiliary and support vessels.

Published on Feb. 12, 2026

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Navy Secretary John Phelan hinted that the Navy's fiscal year 2027 budget request will more than double the 17 ships funded in the FY '26 defense appropriations law, with a specific focus on auxiliary and support vessels.

Why it matters

The Navy's shipbuilding plans are a key part of the U.S. military's force structure and readiness. Increasing the number of ships procured, especially auxiliary and support vessels, could enhance the Navy's capabilities and flexibility to respond to a range of global challenges.

The details

Secretary Phelan stated that the FY '27 budget will include more than double the 17 or 19 ships funded in the FY '26 budget. The focus will be on auxiliary and support vessels, rather than major combat ships.

  • The FY '26 defense appropriations law included 17 or 19 ships.
  • The FY '27 Navy budget request will be more than double the FY '26 ship procurement numbers.

The players

John Phelan

The current Secretary of the Navy, responsible for overseeing the U.S. Navy's budget, policies, and operations.

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What they’re saying

“So I can't talk a lot about the '27 budget. What I'll say is if you look at the '26 budget, it's 17 or 19 ships in there. You should expect at least more than double, I would say.”

— John Phelan, Secretary of the Navy (defensedaily.com)

What’s next

The details of the FY '27 Navy budget request will be closely watched by Congress and defense analysts to understand the service's priorities and plans for the future fleet.

The takeaway

The Navy's focus on increasing auxiliary and support ship procurement in the FY '27 budget signals a shift towards enhancing the service's logistics and sustainment capabilities to support a more distributed fleet and operations.