U.S. Defense Bill Includes Ban on Building Naval Vessels Overseas, Impacting Korean Shipbuilding Cooperation

The U.S. House Armed Services Committee has passed the National Defense Authorization Act (NDAA) for fiscal year 2027, which prohibits the use of funds for constructing U.S. Navy combat vessels at overseas shipyards. This development raises concerns about potential disruptions to the shipbuilding cooperation project between South Korea and the United States, known as MASGA (Making American Shipbuilding Great Again).
On June 7, Democratic Congressman Jared Golden of Maine stated on his website that the NDAA provision approved by the House Armed Services Committee early that morning could block the Navy's plans for overseas shipbuilding contracts.
The NDAA is an annual bill that authorizes budget expenditures and policy directions for the Department of Defense, requiring passage by both the House and Senate before being signed into law by the President.
The House Armed Services Committee passed the NDAA for fiscal year 2027 on June 5, with a vote of 44 in favor and 12 against, following several rounds of amendments. Two amendments proposed by Congressman Golden were also approved during this process.
One of these amendments specifically blocks the Navy's overseas shipbuilding plans. It includes language stating that no funds from the fiscal year 2027 Navy budget can be obligated or used for contracts to purchase combat vessels to be constructed at foreign shipyards.
Golden emphasized, "U.S. military spending should support American jobs. The idea of constructing any part of our surface fleet on foreign soil with foreign labor is morally unacceptable. I appreciate my colleagues on the committee recognizing the essence of this plan, which poses a threat to American industry, jobs, and national security."
The bill will now proceed to a vote in the full House. After that, it will undergo reconciliation with the NDAA passed by the Senate, so it remains uncertain whether Golden's amendments will be included in the final bill.
However, if this provision is maintained in the final legislation, it could hinder the U.S. Department of Defense's recent efforts to leverage the capabilities of allied shipyards, including those in South Korea, in acquiring next-generation naval vessels. This could also impact the momentum of the South Korea-U.S. shipbuilding cooperation initiative, MASGA.

* This article has been translated by AI.

Hwang Jin Hyun