The White House is pressing Congress to permit two warships and two non-combatant support ships for the U.S. Navy to be constructed at overseas shipyards, according to a report by Yonhap News Agency. The White House U.S. Navy foreign shipyard proposal does not identify where the vessels would be built.
The position was set out in an Office of Management and Budget policy statement responding to the U.S. House of Representatives’ draft National Defense Authorization Act for fiscal year 2027. Yonhap reported on 5 August that the document cited backlogs affecting ship construction in the United States.
The House-approved draft retained language prohibiting the use of foreign shipyards to build vessels for the U.S. Navy. The restrictions date to the Byrnes-Tollefson Amendment in the 1965 Navy appropriations legislation and the Byrnes Amendment adopted three years later.
The earlier measure prevented appropriated funds from being used for warship components produced at foreign yards. The later amendment extended the restriction to naval vessels constructed outside the United States. Congress has maintained that the rules support national security and the domestic shipbuilding industry.
OMB reportedly argued that the prohibition conflicts with the administration’s plan to expand the Navy and attract direct foreign investment into U.S. shipbuilding capacity. South Korea has committed $150 billion to the U.S. industry under the Make American Shipbuilding Great Again initiative.
The policy statement cited the “Finland Model” as a possible procurement structure. Under that approach, the U.S. Coast Guard ordered 11 Arctic icebreakers, with initial vessels to be constructed in Finland and later ships planned for U.S. yards.
The U.S. phase includes the Bollinger shipyard in Louisiana and a new Texas facility being developed by Davie at the former Gulf Cooper yard. OMB said access to foreign shipyard technology, expertise and production strengths could help expand the U.S. shipbuilding industrial base and meet national security objectives.
The administration’s position follows earlier discussions involving South Korean shipbuilders. Yonhap reported in June that President Donald Trump asked South Korean President Lee Jae Myung whether the country could quickly build 10 U.S. warships during a meeting on the sidelines of the G7 summit in France.
Yonhap also reported last month that the U.S. Navy had requested information from leading South Korean shipbuilders about their ability to build destroyers and oilers quickly. The request covered pricing information, delivery terms and other market information.
South Korean shipbuilders have identified the administration’s fleet expansion plans as an opportunity to strengthen their U.S. relationships. They have already made investments and established partnerships in the United States.
