US Coast Guard plans a $1.1 billion investment in shipbuilding in FY2025

The US Coast Guard (USCG) has declared its intention to invest US$1.1 billion in the procurement and construction of new vessels, as well as in improving and sustaining its in-service capabilities. The fund will form part of the service’s $13.8 billion budget proposal to cover its activities in FY2025.

The resources requested for shipbuilding will cover acquisitions and upgrades of National Security Cutters (NSC), Offshore Patrol Cutters (OPC), Fast-Response Cutters (FRC) and Waterways Commerce Cutters (WCC).

“We must continue to invest today to ensure the Coast Guard fleet of tomorrow is ready,” claimed Adm Linda L. Fagan, commandant of the USCG.

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Speaking at the 2024 State of the Coast Guard Address on 20 March, Fagan highlighted that the service’s readiness depended on its ability “to support people with capable ships, aircraft systems and infrastructure they need to complete their mission”.

“The challenges are many, and the threats confronting the US continue to change and that change is occurring at an accelerating pace,” she pointed out.

In terms of OPC, the USCG has allocated $530 million for the construction of the seventh platform and long-lead time materials for the eighth vessel. These capabilities will replace the Reliance-class Medium Endurance Cutters (WMEC) which were commissioned between 1964–69 and are now being phased out.

The Coast Guard’s FY2025 congressional justification stated that OPCs were “more capable than the WMEC” and would provide more “advanced electronics, communications and operational capabilities”.

Another $148 million has been proposed for vessel sustainment and modernisation of the service’s current inventory. This effort will intend to extend the service life of 107 vessels by 20 years.

It covered upgrades of motor-life boats, Medium Endurance Cutters, the Healy medium icebreaker, Sea-going Buoy Tenders and National Security Cutters.

The branch also requested a $7 million investment to support post-delivery activities for the 11th NSC and $135 million for management and production activities of new WCCs.

Coast Guard Cutter Legare MEC 912 weighing anchor near New York City’s Statue of Liberty. (Photo: US Coast Guard)

The Waterways Commerce Cutters will be intended to improve the USCG’s inland tenders fleet by providing more endurance, speed and deck-load capacity. The branch’s in-service capabilities have been in operation for more than 55 years and have been approaching obsolescence.

Additionally, the Coast Guard earmarked $216 million for the production of two Fast Response Cutters to be deployed in the Indo-Pacific. Aligned with the 2022 National Defence Strategy, the USCG has planned to increase its presence in this theatre and asked for $263 million to expand its operations in the area.

According to its FY2025 congressional justification, “this investment will enable the service to transition from episodic to persistent presence in the region”.

The Arctic is another priority area for the branch due to economic and geo-political opportunities. For the next fiscal year, the service allocated $37 million to support and prepare the crew of a commercially available domestic polar icebreaker (CAPI) that should be acquired in 2024.

That fund will enable shore-side personnel to develop operational, maintenance and logistics doctrine, create qualification standards and transition the pre-commissioning detachment into an operational staff.

“The purchase and modification of a commercially available domestic polar icebreaker represent an effective strategy to increase near-term presence in the Arctic until the Polar Security Cutter (PSC) fleet is operational and add regional capacity in the long-term,” the service noted in its congressional justification.

A MH-60T during a training exercise in MacDill Air Force Base, Florida. (Photo: US Coast Guard)

Another $206 million was earmarked to recapitalise and maintain fixed and rotary-wing aircraft. It included $168 million for the sustainment and growth of the MH-60T helicopter fleet; $15 million for programme management for the HC-130J acquisition; and $1 million for the installation of S-UAS systems for the NSC fleet.

“I’m committed to working with the administration and Congress to ensure we have a consistent and reliable funding necessary to maintain the readiness of all elements of the operational fleet,” Fagan declared.

The fund for the MH-60T programme will support the Coast Guard’s transition of the MH-65 and MH-60 rotary-wing fleets to a single-airframe type.

Shephard Defence Insight noted that the MH-60T was designed for various missions including environmental protection, law enforcement and SAR. It has been equipped with a digital glass cockpit, surface search radar, EO/IR sensor system, sensor and hoist cameras, and an integrated traffic collision avoidance system.

The HC-130J, in turn, will replace the legacy HC-130H which has passed its designed service life. Compared to its predecessor, the HC-130J has been considered a more capable platform by the branch, featuring more sophisticated sensors, providing better fuel efficiency and offering increased range.

As the USCG congressional justification stated, “the transition from the HC-130H to HC-130J improves fixed-wing aviation capabilities and effectiveness across all Coast Guard missions”.

Related Programmes in Defence Insight

Polar Security Cutter (Polar Icebreaker) Program (PSC 2)

Related Equipment in Defence Insight

Reliance Class Cutters

MH-60T Jayhawk

Heritage Class