Trump’s Shipbuilding Order Hands DOGE Power Over Navy Spending

Subscribe to our free newsletter today to keep up-to-date with the latest transportation and logistics news.

President Donald Trump signed a sweeping executive order in April that aims to revitalize the United States shipbuilding industry. This move is framed as both a national defense initiative and an economic recovery effort. The directive installs the newly created Department of Government Efficiency (DOGE), led by Elon Musk, as the primary authority to audit and reform federal maritime projects. It comes in response to long-standing issues within the Navy and Coast Guard, including cost overruns and persistent delays.

DOGE and Elon Musk take center stage in government reform

DOGE, formed to identify and correct inefficiencies in government systems, has now been assigned a high-stakes portfolio. Under Musk’s leadership, the department is tasked with evaluating shipbuilding operations across federal agencies. Its role is not limited to audit functions. The executive order gives DOGE authority to recommend changes and introduce new practices across departments, including the Departments of Defense, Commerce, and Transportation.

The Constellation-class frigate delays and other program failures

The Constellation-class frigate program is one of the most visible failures in the current naval procurement landscape. Once hailed as a next-generation solution for the Navy’s surface fleet, the program is now more than five years behind schedule and significantly over budget.

Problems cited include design flaws, misaligned expectations, and strained supplier networks. The Navy’s struggles with this program have been widely criticized by lawmakers and watchdog groups. The DOGE audit will prioritize this project, assessing whether structural changes in procurement or management could have prevented the setbacks.

Pressure mounts as the Navy and Coast Guard face a tight review window

The executive order directs the Navy and Coast Guard to complete internal reviews of their shipbuilding programs within 45 days. These reports will identify procedural obstacles, supply issues, and contracting delays. The findings are expected to feed directly into DOGE’s broader analysis and policy recommendations.

The timeline for the reviews is aggressive. Analysts suggest this urgency reflects political pressure to show action ahead of upcoming budget cycles. It also signals a shift in the administration’s strategy, favoring fast assessments and iterative adjustments over longer-term study.

The Maritime Action Plan and strategic pivot to outpace China

As part of the executive directive, the federal government must deliver a comprehensive Maritime Action Plan by November 2025. This plan will define how the United States can restore commercial shipbuilding capacity, improve industrial competitiveness, and reduce dependence on overseas manufacturers.

According to data from the United Nations Conference on Trade and Development, China produced over 40 percent of the world’s commercial vessels in 2023. By contrast, the United States contributed less than 1 percent. Closing this gap will require coordinated investments in shipyards, education programs, and logistics networks.

Officials indicate that the Maritime Action Plan will be drafted with input from both military and civilian agencies. It may include tax incentives for domestic shipbuilders, investments in port infrastructure, and strategic procurement shifts to favor U.S.-built vessels.

Despite renewed federal focus, the workforce gap remains one of the most pressing barriers to progress. Labor shortages in skilled trades like welding and electrical work continue to stall production timelines across military and commercial yards. Industry leaders say that any reform strategy must include long-term investments in training programs and apprenticeship pipelines.

Congressional lawmakers have already voiced concern. Representative Joe Courtney of Connecticut questioned whether DOGE’s tools are adequate to solve the core labor issue. Without a skilled workforce, he warned, even well-funded initiatives will struggle to meet production goals.

Experts suggest that unless workforce development becomes a formal part of the Maritime Action Plan, the administration’s ambitions may be difficult to fulfill. The shipbuilding sector will require not just regulatory reform but also human capital investment to regain competitiveness.

Sources:

• Bloomberg