Completion of PY Shipbuilding Programs

The Completion of PY Shipbuilding Programs line item (LI 5300) in the FY 2026 Navy budget is dedicated to funding the completion of prior year shipbuilding programs. The primary goal of this line item is to address cost overruns, contract modifications, and emergent requirements that have arisen after the initial funding and contract award for various Navy ship classes. This ensures that ships already under construction or nearing delivery can be completed to specification, delivered on schedule, and equipped with the latest required systems and modifications. The line item is supported by both discretionary and mandatory (reconciliation) funding, as directed by Section 1417 of the Full-Year Continuing Appropriations and Extensions Act, 2025.

For FY 2026, funding is provided to cover the government's share of shipbuilding contract overruns for SSN Virginia Class submarines authorized in previous years. These funds address increased construction costs that have arisen due to material price escalations, labor issues, and other unforeseen factors. The objective is to ensure the timely delivery and operational readiness of these critical attack submarines, which are central to the Navy's undersea warfare capabilities.

The budget includes resources for CVN programs to support the installation and certification of the Advanced Arresting Gear Water Twister MOD II, address delays, and continue work on the Advanced Weapons Elevator. Additional funding is provided for Refueling and Complex Overhaul to cover cost growth and time-related charges due to delivery delays. These allocations are necessary to maintain the operational availability and technological relevance of the Navy's aircraft carrier fleet.

Surface combatants and amphibious ships receive mandatory funds to address contract overruns and government-furnished equipment cost increases for several DDG-51 vessels, as well as bridge system modifications and interim support for Flight III ships. The LPD 17 Flight II program is allocated funding for contract share line overruns, economic price adjustments, schedule delays, cyber improvements, and installation of new condition monitoring systems. The LHA 8 program receives funding for contract overruns, economic price adjustments, and installation of remote monitoring systems. These funds ensure the continued progress and modernization of the Navy's surface and amphibious warfare capabilities.

Auxiliary and support ships receive funding to cover contract overruns and economic price adjustments for Expeditionary Sea Base, TAGS Class, and Navy Fleet Auxiliary Force programs. Additional resources are provided for contract overruns, technical data package engineering, and emergent work/testing support for various fleet auxiliary vessels. The TAO Fleet Oiler program receives funding for economic price adjustments, non-recurring engineering due to obsolescence, and procurement of MIL-SPEC firefighting foam to replace obsolete commercial products. These investments are essential for sustaining the Navy's logistics, surveillance, and support operations.

Other programs receive funding for economic price adjustments, contract overruns, and change orders. This includes the Littoral Combat Ship program, Expeditionary Fast Transport program, and Ship to Shore Connector program. These funds ensure that smaller, specialized ship classes are completed to specification and delivered to the fleet without delay.