Secretary of the Navy John C. Phelan appeared before the House Appropriations Subcommittee on Defense to outline the Department of the Navy's (DoN) priorities for FY26.

"I will lead this Department with three focus areas that will guide our Navy and Marine Corps: strengthen shipbuilding and the maritime industrial base, foster an adaptive, accountable and innovative warfighter culture and improve the health, welfare and training of our people," remarked Secretary Phelan in his opening statement.

He acknowledged the shipbuilding challenges that the U.S. Navy is facing, including preventable delays, cost overruns and workforce shortages, and emphasized the need to close the shipbuilding gap through innovation, continuing investments and collaboration with industry. Noting his visits to shipyards along the U.S. East Coast and several industry leaders in Japan and Korea, Secretary Phelan also stressed the need for acquisition reform and workforce optimization to increase readiness.

Secretary Phelan underscored the naval significance of the U.S. projection of power and highlighted the need to invest in both manned and unmanned systems to ensure the Department of the Navy is prepared to maintain an advantage against emerging threats.

He reiterated his commitment to the well-being of Sailors and Marines, referencing the unsatisfactory conditions of barracks that he witnessed during base visits both domestically and internationally; and highlighted the need to invest in mental health resources and family support programs.

Secretary Phelan called for predictable funding, citing readiness concerns from continuing resolutions and voiced support for reconciliation efforts to secure additional resources for the Navy and Marine Corps.