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The FY2027 Shipbuilding Budget Is the Biggest in 60 Years. Here's What It Means for You.

Rachel PhillipsApril 3, 2026

The White House just dropped a number that should have every shipbuilder, ship repairer, and maritime contractor paying attention: $65.8 billion for naval shipbuilding in the proposed fiscal year 2027 budget. That's a 242% increase over the 2026 approved amount. It's the largest shipbuilding request since 1962.

This isn't a minor budget bump. This is a signal that the federal government is about to pour unprecedented money into building, maintaining, and modernizing the Navy's fleet. If your business touches shipbuilding, ship repair, marine engineering, naval IT systems, or any part of that supply chain, now is the time to start positioning yourself -- not after the contracts drop.

What's in the Budget

The proposed budget funds 18 battle force ships and 16 non-battle force vessels -- 34 ships total. Here's what that includes:

  • Columbia-class submarines: $15.2 billion
  • Virginia-class submarines, aircraft carriers, and destroyers: $28.4 billion
  • Next-generation frigates: $1.4 billion
  • Trump-class battleship (advanced procurement): $1 billion
  • Amphibious ships: $8.3 billion
  • Auxiliaries, logistics vessels, and prior-year costs: $13.9 billion

The auxiliary side is just as significant. Strategic sealift vessels, hospital ships, Consolidated Cargo Replenishment at Sea tankers, submarine tenders, and other logistics platforms are all in the request. The administration is calling it the "Golden Fleet," and it covers everything from combat platforms to the support ships that keep them operating.

The Opportunity Is Wider Than You Think

When people hear "shipbuilding budget," they think shipyards. And yes, the major yards will see the bulk of prime contract dollars. But every ship that gets built, repaired, or maintained creates demand across dozens of industries -- metal fabrication, welding, turbine manufacturing, steel supply, electronics, IT systems, cybersecurity, and engineering services.

The budget also calls for increasing the repair capacity of public shipyards and improving production across the fleet to address delivery delays. That means more work not just for builders, but for the companies that support maintenance, modernization, and overhaul.

If you're wondering whether your business fits into this picture, start with your NAICS codes. Here's a breakdown of the codes most likely to see opportunity from this budget.

Primary -- Shipbuilding
NAICS CodeDescription
336611Ship Building and Repairing
336612Boat Building
Core Metalworking and Fabrication
NAICS CodeDescription
332111Iron and Steel Forging
332112Nonferrous Forging
332312Fabricated Structural Metal Manufacturing
332313Plate Work Manufacturing
332322Sheet Metal Work Manufacturing
332323Ornamental and Architectural Metal Work Manufacturing
332710Machine Shops
332811Metal Heat Treating
332812Metal Coating, Engraving, and Allied Services
332999All Other Miscellaneous Fabricated Metal Product Mfg
Ship-Specific Components and Systems
NAICS CodeDescription
332410Power Boiler and Heat Exchanger Manufacturing
332420Metal Tank (Heavy Gauge) Manufacturing
332996Fabricated Pipe and Pipe Fitting Manufacturing
332919Other Metal Valve and Pipe Fitting Manufacturing
333611Turbine and Turbine Generator Set Units Manufacturing
333519Rolling Mill and Other Metalworking Machinery Manufacturing
Welding and Tooling
NAICS CodeDescription
333992Welding and Soldering Equipment Manufacturing
333515Cutting Tool and Machine Tool Accessory Manufacturing
333517Machine Tool Manufacturing
Steel and Metal Supply Chain
NAICS CodeDescription
331110Iron and Steel Mills and Ferroalloy Manufacturing
331210Iron and Steel Pipe and Tube Manufacturing from Purchased Steel
331221Rolled Steel Shape Manufacturing
331315Aluminum Sheet, Plate, and Foil Manufacturing
331511Iron Foundries
331512Steel Investment Foundries
331513Steel Foundries (except Investment)
IT, Cybersecurity, and Engineering Services
NAICS CodeDescription
541330Engineering Services
541512Computer Systems Design Services
541715Research and Development in Physical, Engineering, and Life Sciences
334511Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
334220Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
335314Relay and Industrial Control Manufacturing
Military Vehicles and Hardware
NAICS CodeDescription
336992Military Armored Vehicle, Tank, and Tank Component Mfg
332510Hardware Manufacturing

The Catch: This Is Proposed, Not Passed

I want to be clear -- this is a budget proposal, not an appropriation. Congress still has to approve the funding, and budget proposals always go through changes during the legislative process. But the direction is unmistakable. Senate Armed Services Committee Chairman Roger Wicker and House Armed Services Committee Chairman Mike Rogers issued a joint statement calling the budget "a historic $1.5 trillion defense budget proposal, fulfilling his promise to the American people to deliver peace through strength and restore the United States as a manufacturing power." They added that "this bold commitment provides the resources needed to rebuild American military capability and confront those challenges head-on." The political will for expanded shipbuilding exists on both sides of the aisle, even if the final numbers shift.

Experts are already flagging the real challenge: turning this money into actual ships. Mark Cancian at the Center for Strategic and International Studies pointed out that building auxiliaries where the U.S. has existing capacity should be the near-term priority. Brent Sadler at the Heritage Foundation warned that "the challenge still lies in translating orders into production capacity" and called for strategic industrial planning, higher worker salaries, and better supply chain management.

That capacity gap is your opportunity. The government needs more companies ready to perform this work, not fewer.

What You Should Be Doing Right Now

If you see your NAICS codes in those tables, don't wait for the contracts to hit SAM.gov. The companies that win work from this budget will be the ones that were already positioned when the solicitations dropped. Here's where to start:

  1. Verify your SAM.gov registration. Make sure your NAICS codes are current, your entity information is up to date, and your registration hasn't lapsed. This sounds basic, but I've seen companies miss opportunities over an expired registration.
  2. Review your past performance. If you've done shipbuilding, ship repair, or naval support work before, make sure it's documented and ready to reference in proposals.
  3. Start teaming now. Prime contractors on major ship programs need subcontractors across every category listed above. If you're a small business, identify the primes working on the programs that match your capabilities and start those conversations.
  4. Get your certifications in order. CMMC compliance, quality management certifications, and any specialized welding or manufacturing certifications relevant to naval work -- these take time. Don't start the process after a solicitation is already on the street.
  5. Watch for pre-solicitation notices. Set up alerts on SAM.gov for your NAICS codes so you see opportunities the moment they're posted.

The Bottom Line

A $65.8 billion shipbuilding budget doesn't come around often -- the last time we saw numbers like this was over 60 years ago. Whether you build ships, forge steel, manufacture components, write the software that runs onboard systems, or provide the engineering services that keep the fleet operational, this budget is putting money behind work that your business may be positioned to win.

But opportunity without preparation is just a headline you read and forgot about. If you want help getting your registrations, certifications, and proposal capabilities ready before these contracts drop, reach out to our team or call the FEDCON Help Desk at 1-855-233-3266. We'd rather help you get positioned now than watch you scramble when the solicitations go live.

Ready to take the next step?

Book your free Market Assessment. A senior FEDCON advisor will review your business and show you exactly where the opportunities are.