By Second District · Published September 3, 2026 · Updated September 3, 2026
Quick answer
A Navy ship must pass through authorization, appropriation, contracting, and construction before joining the fleet. While Hampton Roads benefits heavily from these investments, systemic challenges like workforce shortages and supply chain constraints have caused significant delays and cost overruns in recent years.
Gate 1: Authorization (The Policy)
The National Defense Authorization Act (NDAA) establishes the policy and authorizes the expenditure of funds for military activities, including ship procurement. It sets the overarching goals and requirements for the Navy's force structure.
However, authorization does not provide the actual money. It serves as the blueprint for what the military intends to build, outlining the types and quantities of vessels needed to meet national security objectives.
Gate 2: Appropriation (The Funding)
Defense Appropriations Acts provide the actual funding required to execute the procurement, industrial base investments, and sustainment authorized by the NDAA. This is the step where Congress writes the check.
The Navy's Shipbuilding and Conversion, Navy (SCN) appropriation account is the primary vehicle for this funding. Without this crucial step, authorized ships remain on paper.
Gate 3: Contracting (The Agreement)
Once funds are appropriated, the Navy awards contracts to shipbuilders for the design and construction of ships. These agreements can be multi-year procurement contracts or block buys to achieve economic order quantities.
For example, a recent $76.6 billion contract modification was awarded to Huntington Ingalls Industries and General Dynamics Electric Boat for Virginia-class and Columbia-class submarines, a significant commitment to the industrial base.
Gate 4: Construction and Delivery (The Reality)
The final gate is the physical building of the ship. Recent reports from the Government Accountability Office indicate that U.S. Navy shipbuilding is consistently over budget and delayed.
Some ships have been delayed by as much as three years. These setbacks are largely attributed to shipyard capacity constraints and workforce shortages across the industrial base.
The Hampton Roads Connection
Hampton Roads is a major hub for naval shipbuilding, home to Newport News Shipbuilding and Norfolk Naval Shipyard. The region boasts the largest private shipbuilding workforce in the country.
While the direct industrial facilities are located in adjacent districts, the economic impact profoundly affects Virginia's Second District. Many of the workers reside in VA-02, and the broader supply chain brings secondary economic benefits to the local communities.
Sources
- Navy Force Structure and Shipbuilding Plans: Background and Issues for Congress — Congressional Research Service (CRS). Details the Navy's SCN appropriation account and force-level goals.
- An Analysis of the Navy's 2025 Shipbuilding Plan — Congressional Budget Office (CBO). Analyzes the costs and industrial base implications of the Navy's shipbuilding plan.
- U.S. Navy Shipbuilding Is Consistently Over Budget and Delayed Despite Billions Invested in Industry — Government Accountability Office (GAO). Details delays and cost overruns in Navy shipbuilding, specifically citing Virginia and Columbia class submarines.
- HII is Awarded Contracts for Construction of Block VI Virginia-class and Build II Columbia-class Submarines — Huntington Ingalls Industries (HII). Details the $76.6B contract modification for submarine construction involving Newport News Shipbuilding.
- Hampton Roads Economic Monthly — Hampton Roads Planning District Commission (HRPDC). Details the economic impact of shipbuilding in Hampton Roads and workforce statistics.