America’s declining shipbuilding capacity poses threat to naval superiority and competitiveness in international shipping. The American Legion endorses legislation to bolster U.S. domestic shipbuilding.
Since the United States consolidated its territory stretching from the Atlantic to the Pacific Ocean at the end of the 19th century, its economic growth has been driven largely by overseas trade and international commerce.
When President Theodore Roosevelt sent the U.S. Navy on its first circumnavigation of the globe on Dec. 16, 1907, it signaled to the world that growing American economic and industrial power was now backed by a formidable blue-water navy. Today, international trade remains a vital part of the U.S. economy. Approximately 80 percent of international trade is transported by sea, and in 2024 the United States imported $364.9 billion worth of goods and services while exporting $266.5 billion, according to a report by the Bureau of Economic Analysis.
Meanwhile, today’s Navy continues to protect global shipping by ensuring freedom of navigation and maintaining security over vital sea lines of communication. However, declining domestic shipbuilding capacity poses a threat to American naval superiority and competitiveness in international shipping.
Today only 80 oceangoing merchant vessels fly the American flag, and most domestic shipyards are narrowly focused on shipbuilding projects originating from the Navy. Funding issues, frequent design changes, and work force shortages have resulted in significant delays to important naval modernization efforts, such as the production of the new Colombia Class nuclear submarine.
In contrast, China is now the world’s largest shipbuilding nation and has surpassed the United States as the largest navy in the world by total number of ships. According to the Center for Strategic and International Studies, China possesses 234 warships compared to the U.S. Navy’s 219, as cited in “Unpacking China’s Naval Buildup,” by the Center for Strategic & International Studies.
The American Legion supports a stronger U.S. domestic shipbuilding capacity, including the SHIPS for America Act of 2025.
Sens. Mark Kelly, D-Ariz., and Todd Young, R-Ind., have introduced Senate bill 1541, and a companion bill, H.R. 3151, was introduced in the House by Rep. Trent Kelly, R-Miss. The legislation calls for a comprehensive strategy to revitalize U.S. domestic shipbuilding capacity. It would require the president to appoint a Maritime Security Advisor to serve in the executive office of the president and would establish a Maritime Security Board to synchronize efforts related to the development and implementation of maritime strategy. Additionally, the legislation would provide financial and regulatory incentives to commercial shipbuilders to improve domestic shipbuilding capacity, create a Maritime Security Trust Fund dedicated to supporting maritime security programs, and establish a goal of having 250 U.S.-flagged commercial vessels.
The American Legion calls for the United States to invest in increasing production capacity at its domestic shipyards to compete with China’s heavily subsidized shipbuilding industry. A strong merchant marine fleet, crewed by U.S. citizens, also serves as a vital strategic reserve in times of crisis. The ability to project military force and respond to contingencies anywhere in the world is a cornerstone of U.S. military power. Historically, the ability to rapidly deploy forces and materiel to conflict zones has been critical, particularly during the lead-up to the first Gulf War, in support of the war on terrorism, and in the early days of the war in Ukraine.
In order to effectively manage strategic competition with China, the United States must have a systematic assessment and mitigation of its critical vulnerabilities. Targeted reinvestment in our domestic shipbuilding infrastructure and the skilled labor required to build modern ships will help offset China's comparative advantage in shipbuilding capacity, while also preserving essential skilled labor and maintaining critical defense related infrastructure within the United States. Reducing our vulnerabilities will also maintain effective deterrence and secure economic access for the United States across the Indo-Pacific region.
The American Legion calls for continuing the bipartisan momentum for The SHIPS for America Act of 2025, which will send a strong message to our adversaries. The 119th Congress should adopt a comprehensive approach to revitalizing domestic shipbuilding capacity, and passing The SHIPS Act into law is a logical first step. This will reinforce America’s long-term strategic commitment to maintaining a strong maritime capability.
- Legislative