President Donald Trump has ordered a wide-ranging overhaul of US Navy shipbuilding that could permit qualifying foreign shipbuilders to construct initial vessels overseas before transferring production to the United States.

The National Security Presidential Memorandum, titled “Rebuilding the United States Navy and America’s Shipbuilding Industrial Base,” targets cost overruns, delivery delays, limited capacity and repeated design changes affecting naval construction. It also calls for a fifth public Navy shipyard, expanded maintenance infrastructure and changes to systems planned for a future Ford-class aircraft carrier.

Under the administration’s proposed “Finland Model,” foreign yards could build up to two vessels abroad before moving subsequent construction to US facilities. The approach follows an October 2025 US-Finland agreement for US Coast Guard icebreakers. Bollinger Shipyards and Rauma Marine Constructions are to build the first two Arctic Security Cutters in Finland before production shifts to Louisiana. Davie is pursuing a similar arrangement involving Helsinki Shipyard and a planned Texas facility.

The model could be applied to as many as three naval vessel classes: a surface combatant intended for anti-submarine warfare, surface warfare and convoy escort duties; CONSOL tankers for underway replenishment; and roll-on/roll-off military sealift ships. Designs have not been selected and would be chosen through new competitive acquisition processes.

Participating foreign shipbuilders would be required to establish a new US shipyard or acquire a majority interest in an existing facility. They would also have to recruit and train American workers, transfer proprietary construction methods and create a US supply chain.

The memorandum authorizes waivers to the general prohibition on constructing US Armed Forces vessels in foreign shipyards for qualifying projects. Congress must be notified of each national security determination, with contracts barred from award until 30 days after notification.

The Shipbuilders Council of America opposed the overseas construction provision, arguing that it would divert vessel demand, employment and industrial capacity from domestic yards. The organization urged the administration to direct federal funding toward qualified US shipbuilders.

The directive also seeks to limit design changes after construction begins. Mature foreign parent designs selected under the new programs would be protected from iterative Navy alterations unless changes receive approval from senior Pentagon, Navy, White House and Office of Management and Budget officials. A review and reorganization of Naval Sea Systems Command is also required, with the stated aim of improving delivery accountability and reducing bureaucracy and unnecessary redesigns.

Separately, the administration has called for a fifth public naval shipyard. Within 120 days, officials are to prepare a plan for expanding submarine and aircraft carrier maintenance capacity through private-sector resources and the new yard. Potential sites near the Pacific Fleet may include the continental United States, Alaska, Hawaii and US territories. The plan could cover up to three dry docks for present and future submarine classes.

A centralized Component Repair Center is also planned to store and refurbish submarine equipment, including at least one ship set of spares for the Los Angeles, Virginia, Seawolf, Ohio and Columbia classes.

For the future USS Doris Miller (CVN-81), the Pentagon has 60 days to develop a plan for replacing the Electromagnetic Aircraft Launch System and Advanced Weapons Elevators with steam and hydraulic systems. The required plan must address schedules and funding, although the change could involve substantial redesign work on the carrier already under construction.