Sullivan Chairs Commerce Hearing on Reviving Commercial, U.S. Navy Shipbuilding

WASHINGTON-U.S. Senator Dan Sullivan (R-Alaska) today chaired a hearing of the Senate Commerce, Science, and Transportation Subcommittee on Coast Guard, Maritime, and Fisheries which examined how to modernize and accelerate U.S. commercial and Navy shipbuilding while strengthening America's broader maritime industrial base. In his opening remarks and questions of witnesses, Sen. Sullivan focused on the current crisis in U.S. shipbuilding and the national security risks of having China, America's chief adversary, accounting for nearly half of all global vessel production. Sen. Sullivan highlighted the Trump administration's commitment to working with Congress to revive American shipbuilding, specifically President Trump's "Restoring America's Maritime Dominance " executive order, signed on April 9, 2025, and the historic tens of billions of dollars of investments being made in the U.S. Navy and Coast Guard in the recent budget reconciliation bill.

Click here to watch the full hearing.

"The state of America's commercial shipbuilding industry is not just an economic concern. It is a national security imperative that we have let slide for way too long. The scale of the challenge we face today is real. It's urgent. I would say it's daunting," saidSen. Sullivan. "The United States builds less than one percent of the world's commercial ships. Meanwhile, our adversary, China, alone accounts for nearly half of global production, backed by state planning, subsidies and, as always, coercive trade practices. This is not just an economic statistic. It is a dire warning. Maritime power is directly tied to our ability to project influence, support our Navy, mobilize sealift, sustain commerce, and ensure resilient supply chains in times of crisis."

The subcommittee heard from several expert witnesses, including Matt Paxton, president of the Shipbuilders Council of America; Jeff Vogel, vice president of legal for TOTE Services; Dr. Salvatore Mercogliano, professor at Campbell University; and Tuuli Snow, talent acquisition & engagement manager at Snow & Company, Inc.

Below is the full transcript of Sen. Sullivan's opening remarks as delivered.

This subcommittee examines how to modernize, accelerate U.S. commercial shipbuilding, which, of course, will have an impact on our Navy's shipbuilding while strengthening America's broader maritime industrial base as a foundation for economic security and national security.

This hearing could not be more timely. The state of America's commercial shipbuilding industry is not just an economic concern. It is a national security imperative that we have let slide for way too long. The scale of the challenge we face today is real. It's urgent. I would say it's daunting. The United States builds less than one percent of the world's commercial ships. Meanwhile, our adversary, China, alone accounts for nearly half of global production, backed by state planning, subsidies and, as always, coercive trade practices. This is not just an economic statistic. It is a dire warning. Maritime power is directly tied to our ability to project influence, support our Navy, mobilize sealift, sustain commerce, and ensure resilient supply chains in times of crisis.

Nowhere is this more evident than in the great state of Alaska. Key economic pillars of my state-the U.S. military, mining, fisheries, oil and gas, tourism-are all dependent on maritime transportation to move goods, resources, ammunition, and people. Alaska's remoteness, dependance on sea trade, and strategic position between the Pacific and Arctic theaters underscore the need to ensure stable, American controlled supply routes connecting the continental United States with its territories and its noncontiguous states-my colleague from Hawaii, I think, would agree with that-and to avoid reliance on foreign vessels for domestic and territorial trade, especially given Alaska's proximity to major foreign powers across the North Pacific.

We've seen what America can do when it chooses to lead. During World War II, as vividly captured in Arthur Herman's Freedom's Forge, we transformed from a nation unprepared for war into the world's industrial powerhouse, outbuilding our adversaries and our allies combined. We can do this. We've done it before. That shipbuilding surge didn't happen because we were forced into it. It happened because we chose to meet the moment with purpose, coordination and urgency.

That's why the Trump administration's executive order on Restoring America's Maritime Dominance is so important. It acknowledges that this is not a problem of isolated shipyards or fragmented markets. It is a national strategic challenge. I look forward to reviewing the forthcoming Maritime Action Plan from the administration, which is due next month. It will lay out the policies, investments and reforms needed to restore U.S. shipbuilding competitiveness and secure our maritime future.

[There are] three things that I think are critical for success in this town: White House leadership, appropriated dollars, and legislative action that is bipartisan. I think that we have the beginnings of all three of these on shipbuilding. Certainly, Congress has begun to act. The budget reconciliation bill, the One Big Beautiful Bill, has made historic investments in the Navy and shipbuilding-over $25 billion in the Coast Guard-over $25 billion-authorizing multiple destroyers, submarine oilers, and nearly $9 billion in new Arctic icebreakers. These investments are not only critical to national defense-they also provide steady demand signals to shipyards, suppliers and workers across the country.

We are also seeing important bipartisan momentum through legislation, such as the SHIPS for America Act. I don't know if Senator Kelly's still here. There he is. Senator Young, I'm sure, will be here. The two lead co-sponsors of that. I am a co-sponsor of [the SHIPS Act], which recognizes the revitalization of U.S. commercial shipbuilding must be a whole of nation effort. This legislation aims to strengthen domestic production capacity, incentivize innovation, and ensure that our industrial base can compete globally while advancing national security goals.

But more money won't alone solve the problem. We need smarter procurement systems-ones that reward performance, improve accountability, and avoid the delays and cost overruns that have plagued far too many federal programs. New approaches to contracting and digital integration are showing promise. We should build on that progress and replicate it across ship types and agencies-commercial and the U.S. Navy.

Finally, this is, most importantly, in my view, about people. Welders, naval architects, mariners, engineers and apprentices. Revitalizing America's shipbuilding means investing in a workforce that can design, build, and sail the ships for tomorrow. It means restoring the American maritime trades as a source of good jobs and national pride throughout communities across our great nation.

In that regard, I do want to mention to my colleagues, I certainly hope that, when we vote for the CR once again at 11:30, we get enough Democrats to just reopen the darn government. Enough is enough. The big federal government union came out and said to support this. This impacts shipbuilding. This impacts FEMA.

I was back home over the weekend. We had a big typhoon. We have tons of people in the federal government right now working without pay. Enough is enough. So reopen the government. We'll negotiate on subsidies. I think many of you know, Senator Schumer has bent the knee to the far left.

Let's reopen the government and get these workers who build our ships in public yards paid as well.

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