President Trump Issues Memorandum On Rebuilding The Naval Industrial Base

On August 13, 2026, President Donald Trump released a Presidential Memorandum, “Rebuilding the United States Navy and America's Shipbuilding Industrial Base.” The memorandum directs a series of actions to expand domestic shipbuilding capacity, open the door to allied foreign shipbuilders, and reform the Navy’s maintenance infrastructure. It builds on Executive Order 14269 of April 9, 2025 (“Restoring America's Maritime Dominance”), which launched a government-wide effort to revitalize the US shipbuilding sector.

The “Finland Model” and 10 U.S.C. § 8679

Under 10 U.S.C. § 8679(a), construction of armed forces vessels in foreign shipyards is generally prohibited. Section 8679(b), however, allows the President to authorize exceptions to the ban upon a national security determination, subject to 30 days’ notice to Congress. Section 3 of the memorandum invokes that authority and cites the “Finland Model,” named after a 2025 US-Finland MOU for icebreaker construction. Specifically, Section 3 authorizes foreign shipbuilders to build and sell three specific types of vessels (described in the paragraph below) to the US armed forces, provided the foreign shipbuilder simultaneously builds or acquires a US shipyard, hires and trains an American workforce, licenses its shipbuilding technology in the United States, and sources from the US supply chain. All ships after the first two must be built in the United States. The President delegated to the Secretary of War the authority to make individual § 8679(b) determinations and notify Congress for contracts under this framework.

As for vessel types, the Memorandum directs the acquisition of Consolidated Cargo Replenishment at Sea (“CONSOL”) Tankers and Roll-On, Roll-Off (“Ro-Ro”) vessels via the Finland Model. These vessels play a major role in United States’s power projection capabilities: CONSOL tankers refuel vessels at sea, enabling prolonged deployment away from shore, and Ro-Ro vessels can carry and rapidly deploy wheeled and tracked vehicles, equipment and cargo abroad. In addition, Section 3 also directs the Navy to adopt a new competitive acquisition approach under the Finland Model for surface combatants suited for antisubmarine warfare, surface warfare and convoy escort duties. Finally, to prevent delays and cost overrun, Section 3 also prohibits the Navy from imposing iterative design changes without the Secretary of War’s approval.

Other Directives

The remaining sections address infrastructure and reform. The memorandum directs a plan for a fifth public Navy Yard to boost nuclear submarine and carrier readiness, with locations near the Pacific Fleet under consideration (Sec. 4); a new Component Repair Center for submarine parts and spare equipment (Sec. 5); and a top-to-bottom review of Naval Sea Systems Command aimed at introducing results-based accountability and reducing bureaucratic delays (Sec. 6). The memorandum also directed that new aircraft carriers starting with CVN-81 (USS Doris Miller, the fourth Gerald R. Ford-class aircraft carrier) be outfitted with steam catapults instead of the Electromagnetic Aircraft Launch System (EMALS) (Sec. 2).

Takeaway

The memorandum is another significant White House step to reinvigorate the maritime industrial base and Naval readiness, following EO 14269’s broad policy framework. Government contractors, allied-nation shipbuilders, and defense-industry stakeholders should monitor developments closely, as the resulting acquisition strategies could reshape the competitive landscape for Navy shipbuilding and acquisition programs.