White House notes its proposal to build 2 combat, 2 noncombat vessels in foreign shipyards in memo

The White House in Washington / Reuters-Yonhap

WASHINGTON — The White House has highlighted a "priority" legislative proposal that would authorize the U.S. Navy to contract to build two combat ships and two non-combat auxiliary vessels in foreign shipyards, according to a recent document sent to Congress.

Its Office of Management and Budget (OMB) pointed out the proposal in a policy statement that it sent to the House of Representatives on July 21 to explain its position on the House version of an annual defense policy bill for fiscal year 2027, called the National Defense Authorization Act (NDAA).

In the statement, the OMB made clear its opposition to a section of the House bill that would prohibit the use of defense funds for procuring "battle force" ships to be built in a foreign shipyard.

"The prohibition ... is inconsistent with the administration's priority legislative proposal, which would authorize the Navy to contract to construct two surface combatant vessels and two non-combat auxiliary vessels in foreign shipyards for the purpose of driving significant and direct foreign investment into our domestic shipyards," it said.

Moreover, the OMB said that the prohibition fails to address challenges posed by current shipbuilding "backlogs" in the U.S.

The proposal to leverage foreign shipyards comes as Korea and the United States have been stepping up cooperation to revitalize America's shipbuilding industry amid concerns that U.S. regulatory barriers could hinder the allies' shipbuilding collaboration.

Seoul has pledged to invest $150 billion in shipbuilding cooperation with the U.S. as part of its broader $350 billion investment commitment under last year's trade and investment agreement with Washington.

In the policy statement, the OMB mentioned the "Finland Model" — an approach under which the U.S. would initially acquire vessels more rapidly from allied foreign shipyards before transferring production to the U.S. with foreign investment.

It also said that the bill's restrictions on the purchase of ships from foreign shipyards "limit the flexibility of the U.S. in leveraging foreign shipyards that have specific advancements, strengths and technology that serve a specific Department of War need."

"Access to these areas will expedite the growth of the U.S. shipbuilding industrial base and assist directly in meeting exigent national security objectives," it said.

Last month, U.S. President Donald Trump said his administration might look at Korean and other companies for shipbuilding cooperation as part of efforts to reinforce the U.S. Navy.