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House · Hearing transcript

Department of the Navy Fiscal Year 2027 Budget Request

Thursday, May 14, 2026

Summary

  • Hung Cao (Acting Secretary of the Navy, Department of the Navy) requested $377.5 billion to buy 34 ships, 123 aircraft and fund fleet readiness.
  • Admiral Daryl Caudle (Chief of Naval Operations, United States Navy) warned operations for Epic Fury will force cuts to exercises and recruit moves by July.
  • Seth Moulton pressed Cao on requesting $17 billion for one battleship versus buying 68,000 $250,000 sea drones like Ukraine uses.
  • Mike Rogers backed the $1.5 trillion defense budget to rebuild shipbuilding while Adam Smith warned debt near $40 trillion demands cheaper autonomous solutions.
  • Caudle said the Navy lacks West Coast repair capacity, is studying a fifth shipyard, and will extend four to five Ohio-class submarines.

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Hearing Details

Witnesses

Members Who Spoke

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Transcript

Rep. Rogers (AL-3)16:27 – 16:28

Hi.

Rep. Smith (WA-9)16:28 – 16:48

Yes, sirs. Great. I love that. That's Josh's. I love his review. It's a great committee.

Rep. Rogers (AL-3)16:47 – 20:56

Alright, the committee will come to order. I wanna welcome our witnesses and thank them for their service to our nation. Uh, today we'll hear from the Department of the Navy regarding FY twenty-seven budget request. As a maritime nation, our national security requires strong and ready naval force with sufficient vessels and capabilities to deter our enemies. That's especially true now as the Navy is instrumental to the mission of combating narco-trafficking in the Western Hemisphere ensuring Iran never obtains a nuclear weapon, and safeguarding freedom of navigation around the globe. And of course we have to remain vigilant to the threat from China, whose maritime strength continues to grow. So it's critical that American priorities growing uh uh America prioritizes growing our fleet uh and doing that requires rebuilding our shipbuilding industry. Years of uncertainty and inconsistent demand from the government and the commercial sector have significantly weakened our maritime industrial base. That atrophy is apparent in both military and commercial ship building and the statistics are grim. China builds forty-seven percent of the world's ships. The US builds one tenth of one percent. This decline in our maritime industrial base is not surprising given how long we have been underfunding our national security. Defense spending has shrunk dramatically, both as a percentage of GDP and as a percentage of federal outlays. That res- that's resulted in a reduction in our shipbuilding capacity, our ability to scale our production, and our fleet readiness. To maintain deterrence and ensure maritime dominance, uh, we need a robust constellation of shipyards with modern infrastructure. It also demands a large, skilled workforce capable of meeting the increased demand for shipbuilding and repairing ships. The President's FY twenty-seven budget request of one point five trillion is crucial in reversing that decline. The Navy's top line of three hundred and seventy-seven bil point five billion provides the resources necessary to restore our shipbuilding capacity and re-establish our maritime deterrence. We began the work of revitalizing the ship y- shipbuilding uh last year via rec- reconciliation that legislation invested thirty-four billion dollars in and maritime industrial base to expand the size and enhance the capability of our naval fleet. We're starting to see the results of that funding and we'll be paying close attention to how the that investment is handled and how efficiently it's being spent. Last year we also made critical reforms to make the Pentagon a better customer for the defense industrial base. We created new accelerated requirements processes, that rapidly seek innovative private sector solutions. We cut red tape and enhance t- contracting flexibility, and we streamlined decision-making by centralizing acquisition programs under single portfolio acquisition executives. I'm pleased to see the progress the Navy is making on implementing these reforms. However, I remain concerned with the overall readiness of our naval fleet. If we are to strengthen our deterrence and protect our maritime interest, We need to prioritize the eighty percent surge-ready vision for the entire fleet, including our amphibious forces. Nearly half of the amphibious fleet is in unsatisfactory condition. As a result, we can no longer support heel-to-toe deployments of our marine expeditionary forces. I'm a strong supporter of a continuous three point O mu uh presence. Our amphibious forces are the bedrock of our rapid response force and essential uh for the projection power that we need. I look forward to hearing from our witnesses on how we can work together to make sure these goals uh reach reality and give our sailors and marines the resources they need to defend our nation. With that I yield to my friend the Ranking Member h- for his opening statement.

Rep. Smith (WA-9)20:57 – 25:42

Uh, thank you, Mister Chairman. I appreciate it. Thanks to our witnesses for being here today. I look forward to a very, very important discussion. I think the Chairman did a very good job of laying out the challenges that we face. Those challenges are not just um with the Navy and the Marine Corps in meeting our ship building but it is a pretty good example of the size and scope of the challenges we face in meeting our national security needs and dealing with the economic challenges that we face as a country certainly the ship building story that the chairman laid out is absolutely true we have fallen way behind the rest of the world and really struggled uh to figure out how to build the ships we need to build for our defense needs. We also have the the modernization challenges. We all know warfare has fundamentally changed. Uh, autonomous systems, AI are gonna be crucial to meeting our war fight fighting needs, as is our ability to build the munitions and equipment that we need at a far greater scale at a far more affordable pace. And and some progress has been made. I particularly wanna thank the Marine Corps. Um, I know Commandant Berger, who came before uh Commandant Smith, really took the lead in recognizing this. and and took a hell of a lot of heat for saying, " No, we have to change." He he made the changes. I think the Marine Corps has adapted to what the modern battlefield looks like. And also, you passed your audit, which makes everybody around you, yeah, three times, everyone around you jealous, but I think it should also make them aspirational, um, to do that as well. I also think on the Navy side, I've been particularly impressed with the workforce development. I've been up to Bath and I was just down at Newport News a few days ago. You know, three, four years ago, it really looked like, you know, we're just not gonna be able to find the workforce. And we still have a long way to go. We do not have enough enough people. But emphasizing training, bringing people into shipbuilding has made a difference. We have a much younger workforce now in the shipbuilding, and that certainly helps move move us forward. And also, as the chairman mentioned, our passage last year of acquisition reform to try to help the Pentagon get to the point where you can innovate faster at scale. is making a difference. We have a long way to go there as well. I will point out, however, I do disagree with the chairman one point, yes, we are way behind on shipbuilding, but it's not because we haven't spent enough money on defense. Where we are behind is on commercial shipbuilding, because we, well, we're behind on both, to be honest, but commercial shipbuilding is the main area because we were no longer competitive in that space. The economy changed. We cannot spend our way out of this problem. And that is my single biggest concern, We are still trying to imagine that we can do everything if we just spend enough money. That, I think, is a very unwise strategy. We have a debt pushing up close to forty trillion dollars. We continue to not be able to support any sort of revenue increases to pay for it. We're gonna have to get smarter. And I've used this quote in this room many, many times, so I apologize for repeating myself. But I think we are at that Winston Churchill point. Gentlemen, we're out of money. Now we have to think. The good news is we have really good options. We have very, very smart people. We have modern technology that can show us how to build the systems we need in a cheaper more affordable way, and put out a platform that enables us to achieve our objectives by taking advantage of having asymmetric advantages, and figuring out what weapon systems we can have that can meet our needs. That's the way we need to be thinking. And we've discussed this, but all of what I've just said The personification of the problem is the decision to go out and try to build a twenty two billion dollar battleship. I doubt seriously whether or not we can build that. I doubt even more seriously whether or not it is what we need at this point, when we need to be focusing on autonomous systems, on how we can do affordable solutions to what we face. If we continue to spend ourselves into oblivion, we will not accomplish the national security objectives that we desperately need. We also have partners and allies, can use. And here I know all of you have discussed, you agree with that. Uh, but let's look at that as a way to grow our ability. Um, South Korea, Japan, Norway, they are capable ship builders who, at least this morning, uh, were still our allies. Um, so we need to build on that, build the partners and allies that we can have to meet our needs. I still see a budget that I've been seeing here for twenty-five years, which is we have all these disastrous problems, let's just imagine that we'll have an infinite amount of uh amount of resources going forward and that's going to be our solution. That's not gonna get us there. Um we need to make cost-effective decisions to get us to the point where we need within a realistic budget framework. Uh with that I look forward to the discussion and I yield back.

Rep. Rogers (AL-3)25:43 – 25:59

Uh thank you, ranking member, now I'll introduce our witnesses, uh the Honorable Hung Cao is the Acting Secretary of the Navy. Admiral Darryl Cottle is the Chief of Naval Operations and General Eric Smith is the Commandant of the Marine Corps. Welcome our witnesses. Secretary Cowell, we'll start with you. You're recognized.

Hung Cao (Witness)26:01 – 26:18

Thank you, Chairman Rogers. Uh, Ranking Member Smith, distinguished ladies and gentlemen of the Health Service Committee, thank you for allowing me to testify to you uh this morning. America's sailors and marines are currently on the front lines of freedom, in operations to protect our republic. Lincoln and Bush.

Rep. Rogers (AL-3)26:18 – 26:21

Uh, I I think you n- your microphone's not on or you need to pull it closer.

Hung Cao (Witness)26:21 – 26:26

All right. Let me try. Can can we reset the time then, sir? No. We're we're good, sir.

Rep. Rogers (AL-3)26:26 – 26:26

Uh

Hung Cao (Witness)26:26 – 31:28

Uh, American sailors and marines are currently on the front lines of freedom, in operations to protect our republic. Lincoln and Bush carrier strike groups and Tripoli amphibious raiding group with the thirty-first marine expeditionary unit, are the Arabian Sea, protecting merchant ships and stopping illicit shipping by a terrorist regime. Destroyers Arleigh Burke, Bolkalee, Oscar Austin and Gonzales are protecting our allies in Mediterranean against cruise missile attacks from Iran. In the Caribbean, Iwo Jima, Argnu, is stopping narco-terrorists from poisoning our Americans with illegal drugs. In the Pacific, Boxer Argnu and Destroyer Striders-seven are enforcing their freedom of navigation in the South China Sea. At home, we're preparing Macon Island Argnu, USS Dwight D. Eisenhower, a forty-nine year old nuclear-powered aircraft carrier for deployment. On our southern border, our sailors and marines stand watch tonight, saying, " Nothing will hurt you, not on my watch." Three weeks and about seventeen hours ago, I was tasked by President Trump to lead the United States Navy and the United States Marine Corps. My three priorities are to take care of sailors, marines, build ships, and protect our homeland. A hundred and twenty years ago, the great white fleet extended America's reach across the globe. We're currently at the forefront of history with a budget that will create the golden fleet which renews that maritime dominance. We have the obligation to give our sailors and marines the very best equipment to do their jobs. In our historic budget of three hundred seventy-seven point five billion dollars, we're adding thirty-four new ships varying from small to large combatants, a hundred and twenty-three new aircrafts, along with five unmanned ships. In five years, we will add a hundred and twenty-two manned and sixty-three unmanned ships. We are funding our readiness of our fleet to ninety-five percent. We are procuring exquisite munitions that will keep our forces outside the weapons engagement zone while investing in research development for the fight of the future. More importantly, we are increasing our service member pays, investing in family and unaccompanied housing, childhood development centers so that our sailors and marines have safe, clean, and comfortable places to live and not have to worry about their families when they're deployed in harm's way. We have greatly exceeded recruiting and retention goals. And that is due solely to the sheer leadership of President Trump and Secretary Hegstaff. Last week, I was on board USS Gerald R. Ford, USS Winston Churchill, and USS Bainbridge as they return from an eleven month combat deployment in two theaters. Do not believe the fake news that claims food shortages, backed up toilets, and low low morale. What I witnessed were motivated and professional young sailors pushing the boundaries of performance for their country. It is imperative that we pass this budget. Ship construction and readiness were bill pairs for Iraq and Afghanistan for twenty years. While our industrial base atrophied, American pair competitors grew stronger and threatened our sovereignty. Their hundred year plan had one goal, total global domination. But only one thing stands in their way, the United States of America. The Navy and Marine Corps are America's nine one one force. capable of being anywhere as a carry strike group or Marine Air Ground Task Force with overwhelming firepower as we saw in absolute resolve and epic fury. A year ago I testified in my confirmation hearing that I would create the most lethal Navy and Marine Corps team the world has ever seen. I will keep that promise, having worn the cloth of our nation for thirty-two years, most of which w- was in combat. I do this also because I will not allow my oldest son, who will be commissioned a week from tomorrow as the second lieutenant of the United States Marine Corps to go to war the way I did without the equipment that we needed. I will not allow this for any of America's sons or daughters. They signed a blank check to this nation up to and to clean their lives. And we owe it to them to do our due diligence to fund this historic budget that will care for them and their families while giving them the tools to answer the call. I've seen firsthand what communism and humanitarian regimes have done to thriving nations. Members of my family were murdered by communists. In nineteen seventy five we had no place to go. We had no flag to stand under or country call our own. But this place called United States gave us hope and a home and a future. I've dedicated my entire adult life to defend this nation under God, so that this would never happen to my children, your children, or our grandchildren. Thank you again for this opportunity to testify before you. Before I end though, uh this is uh Admiral Ben-Ghez, my uh Chief of Legislative Affairs last uh hearing before you. And I wanted to thank him for his service. And uh thank you for your time, Chairman, again, I know your time's very important. If you wanna cut this down to less than five hours, we're I think we're we're ready to support you. Thank you so much.

Rep. Rogers (AL-3)31:28 – 31:39

Thank you. Uh and I'm I'm proud that you have a very strong voice and I apologize that we're having audio problems with your microphone. Uh, we're we're working on that. Uh, Admiral Cottle, you're recognized.

Daryl Caudle (Witness)31:40 – 36:35

Chairman Rogers, Ranking Member Smith, and distinguished members of the committee, good morning and thank you for the opportunity to testify on the posture of the United States Navy. I'm honored to be joined by Acting Secretary of the Navy, Cal, and my good friend, General Eric Smith. We appreciate the committee's steadfast support for our sailors, our Marines, our civilian workforce, and their families as well. for the resources you provide to defend our nation. This past year, our Navy celebrated two hundred and fifty years of American sea power. Today, our founding fathers would scarcely recognize the modern fleet, ballistic missile submarines deterring strategic attack, nuclear-powered aircraft carriers projecting power across the globe, and an all-domain naval force delivering precision lethality at scale. And while the platforms have changed, one truth has not. The Sailor remains our most and greatest competitive advantage and the heartbeat of our fleet. This July, on our nation's two hundred and fiftieth birthday, our sailors will carry that legacy forward wherever our nation requires presence, power and resolve. Since assuming the duties of the Chief of Naval Operations, I have been focused on one central objective, ensuring the Navy never loses, its differentiated value. In February, we released the United States Navy fighting instructions, which is designed to operationalize my priorities of foundry, fleet, and the way we fight, and provide clear guidance on how we will build, generate, and employ Navy combat power for the conflicts we must be prepared to win. These instructions reflect a simple reality. The Navy's value lies in our ability to generate decisive combat power from the sea, with tailorable formations, sustain them forward, and deliver lethal effects across every domain at the time and place of our choosing globally. Operation Epic Fury is providing in real time what the Navy delivers, forward, persistent combat power from the sea, sovereign options, independent of basing, survivable and resilient under pressure, and able to strike decisively. That is our differentiated value on full display. To preserve that advantage, we are executing a hedge strategy to ensure the fleet we'll build today, it's ready for the fight we face now and adaptable and scalable to the one we will face tomorrow. That strategy is realized through the Golden Fleet initiative, a fleet design that blends high and lower-end combatants, integrates robotic and autonomous systems, and enables scalable formations to outpace emerging threats. This approach increases our ability to scale combat mass, distribute risk, and maintain escalation dominance against the operational challenges our combatant commanders face globally. It also requires integrating technologies like artificial intelligence advanced advanced manufacturing directed energy, and containerized systems as operational capabilities that expand our reach, persistence, and lethality across our kill chains and kill hubs. Our FY twenty-seven budget request is strategy driven. It's aligned to the Department of the Navy's priorities and the objectives of the national defense strategy, leveraging the concepts outlined in the United States Navy fighting instructions to ensure our investments directly strengthen the foundry, the fleet, and the way we fight. It reflects disciplined choices to ensure we first always field a credible and highly effective sea-based strategic deterrent. And second, we invest in the right capabilities that preserve our war-fighting advantage. To do that, we focus on four priorities. First, sailors first. Quality of service is not a luxury. It underwrites combat readiness and must always be our first priority. Second, the foundry. The foundry is where combat power is forged and we must not use it as a bill payer. A hollow foundry results in a hollow navy. Third, the fleet. Our fleet is the most decisive and flexible military instrument of national power. Therefore, we must feel the right mix of forces to realize the goal. fleet's full potential through a smart application of the head strategy. And fourth, the fight. Winning will depend on the strength and adaptability of our kill chains and kill webs. From robust counter-targeting, to leveraging new stealth technologies, to an abundance of longer range munitions, to enhanced mission command. We must integrate and synchronize our capabilities seamlessly with our joint force teammates, our partners, and our allies. It is truly the honor of my life to serve as your Chief of Naval With your continued partnership, we will ensure the United States Navy remains the most capable, most ready, and most lethal maritime force in the world. And I look forward to your questions. Thank you.

Rep. Rogers (AL-3)36:36 – 36:38

Thank you, Admiral. Uh, General Smith, you're recognized.

Eric Smith (Witness)36:40 – 41:05

Well, good morning. Chairman Rogers, Ranking Member Smith, ladies and gentlemen. I'm honored to appear before you today alongside Acting Secretary Cow and Admiral Cottle to represent your Marine Corps. I'd like to start by recognizing the significance of this year's President's budget. It is a generational investment that supports the Marine Corps' top four focus areas. One, restoring a three point zero amphibious ready group Marine Expeditionary Unit presence. One our new off the east coast, one off the west coast, and the thirty-first Marine Expeditionary Unit episodically deployed out of Okinawa, Japan. Two, setting the theater. Three, accelerating modernization and lethality and four, building and sustaining a lethal force. Restoring a three point O amphibious ready group marine expeditionary unit presence is the Marine Corps' North Star. It consists of three continuously forward deployed amphibious ready group marine expeditionary unit teams. Again, one source from the east coast, one from the west coast, and one episodically deployed out of Okinawa, Japan. Each embarked on three amphibious warships, one big deck and two small boys. The amphibious ready group, or ARG, with the marine expeditionary unit is the most agile, personal and responsive formation of the joint force, hands down. It is how our nation's leaders sustain forward posture, deter aggression, and respond to crisis or conflict across the entire globe. Today we have three point O amphibious ready group Marine Expeditionary Unit presence. It is a strategic value, and that strategic value is clear. The twenty-second Mew is combating narco-terrorism in the Caribbean, while the thirty-first Marine Expeditionary Unit and the eleventh Marine Expeditionary Unit are providing operational flexibility to maintain security and stability in the Middle East and the Indo-Pacific. But this is not something we can sustain. We need to enhance our amphibious warship readiness and increase the size of our amphibious force. I want to extend my sincere appreciation to the Secretary of War, the Acting Secretary of the Navy, and my shipmate, Darrell Cottle, for their unwavering support towards our shared goal of restoring a three point O amphibious ready group marine expeditionary unit presence. Our second focus area is setting the theater. We're committed to protecting our interests, deterring adversaries, reassuring allies, and creating a more agile and resilient global sustainment network, one that seamlessly integrates with the joint force. To achieve this, we're ensuring an optimized forced posture, while also investing in littoral mobility, pre-positioned equipment and supplies, digital manufacturing, and enhanced installation resilience. We're refining our approach to logistics. prioritizing resilience, speed, and adaptability to generate and sustain our forces. Our third area of focus is accelerating modernization and lethality. Force design underpins everything that we do. We remain committed to modernizing everything from our Marine Expeditionary units to our Marine Expeditionary forces, focusing on precision fires, air defense, unmanned systems, resilient command and control, and electromagnetic warfare. We're gaining momentum, but we have to accelerate to ensure that our Marines are most lethal, survivable, and resilient the day before a conflict starts. And finally, we're building and sustaining a lethal force. The quality of life of Marines and their families directly impacts readiness, retention, and lethality. We are deliberately investing in Marines and their families to improve living conditions, institutionalize Marine Corps total fitness, and ensure support for family resources. Before I close, I want to take a moment to recognize the members of this committee and other committees with jurisdiction over the national defense who will be retiring. On behalf of all Marines, thank you for your service to this nation, we know it, uh it comes at great personal cost. Thank you for your leadership, but most of all for your partnership. Your constant and steadfast support has ensured the readiness of your Marine Corps. We wish you the best in the next chapter of your service, as we say, fair winds and following seas. I'd like to close by stating that your Marines are ready. The Marine Corps is a globally responsive, lethal, combined arms naval expeditionary force that is capable of projecting power from sea to land and from land to sea and to maneuver across multiple domains and contested environments to deter deny and defeat our adversaries. Thank you again for your trust and support, and I look forward to your questions.

Rep. Rogers (AL-3)41:06 – 41:27

Thank you, General. I recognize myself for questions first. Uh, we all know that a continuous strong demand signal is critical to getting our shipbuilding uh industrial base back on a healthy footing. Mr. Secretary, can you tell us how you're ensuring that fleet uh requirements and fleet uh um and the acceleration of production rates is happening in the shipbuilding industry?

Hung Cao (Witness)41:29 – 42:13

Mr. Chairman, we have we have many levers we're pulling. Obviously the PSYUP program allows us to uh invest into our industrial base. Uh we we have for for example for submarine building, a a very talented officer, uh Vice Admiral Rob Goucher who I've known for thirty six years who is leading and basically moving the submarine construction to the left. But again, we we need to explore every single avenue of ship construction in this country. W- it's not just about warships. Right now there's only a hundred and eighty eight flagged US merchant ships and a hundred and five military seal of command ships. Whereas the Chinese have eleven thousand ships. We are a maritime nation, bordering both the Pacific and the the Atlantic,

Rep. Rogers (AL-3)42:12 – 42:12

Uh-huh.

Hung Cao (Witness)42:13 – 42:35

and we depend on that that maritime dominance to to for trade and for the good of our nation as well. And so this, if we pull all the levers, we're looking at five hundred forty thousand jobs in the United States for ship building alone and that's for every single one of your districts. This is why we need to to to fund this bill, sir, so we can get ship building going and get this nation going.

Rep. Rogers (AL-3)42:36 – 42:45

Um, Admiral Cottle, um, what operational impacts will you feel if Congress doesn't pass supplemental funding? And when do you think you'll start feeling those impacts?

Daryl Caudle (Witness)42:47 – 44:10

Sir, um, as you know, the FY twenty-six budget didn't bake in epic fury. And, uh, and we're, you know, the Navy, if you see any news channel and you look at the graphic there, you see a large Navy force in the Middle East. So we're burning bright, and, uh, that's what Navies do. And uh we're built that way, but it does come at costs and it comes at operational costs. Things like fuel costs, operating hours, air, you know, uh uh training air frames, uh and all the sorts of incremental things, munitions, that you actually expend during wartime. And so uh without supplemental funding, I do fear that I'll have to start making decisions in the July time frame on how I do fourth generation. That could make differences between how I do uh exercises, how I do do routine operations in order to make sure that I do not, you know, have the funds necessary to continue the war effort, uh, for Epic Fury. A bigger piece, too, that I would tell you is is in people. You know, I I'm incurring additional costs in the manpower accounts as well. And so, uh, without additional funding, I'm gonna end up having to hold on station a number between twelve and fifteen thousand newest sessions that I'm trying to push through. So my record recruiting is gonna be thwarted without additional funding. to PCS those individuals from boot camp and to pay enlistment and re-enlistment bonuses. So those efforts could be challenged if I don't get additional supplemental funding, sir.

Rep. Rogers (AL-3)44:11 – 44:19

On another point, Admiral, uh what steps have you taken uh fleet-wide to improve your maintenance outcomes and improve your readiness rates?

Daryl Caudle (Witness)44:20 – 45:36

Well, I think the secretary landed most of it. You know, this has been a a full-core press effort to expand our maritime industrial base and certainly the submarine industrial base. I think the acquisition reform is putting with the DERPAM and and other PAE structural changes to put more accountability, accountability at our supervisors of ship buildings to be more intrusive, oversight while construction's going on. The idea of developing, no kidding, getting the US to, no kidding, build ships through a modular distributed type of uh framework, we're doing that to some extent with Virginia class and Arleigh Burke, but we need to expand that. We need better integration of artificial intelligence. We need better integration of robotics to do more welds robotically for higher output and repr uh reproducing higher quality. We got workforce talent management going on across the country, but uh we need more of that as well to make sure we recruit and retain and lower the attrition of our key workforce. And that's not just, you know, kind of wage grade and vocational. This is middle level engineer management's coming out of engineering STEM schools that I desperately need for pro- for doing the planning and oversight of the work. And then, uh, I'd say that's a, uh, I'd say most of the things we got going on, sir.

Rep. Rogers (AL-3)45:36 – 45:38

Great. With that, I yield to the ranking member.

Rep. Smith (WA-9)45:40 – 46:54

Thank you very much. Building off the theme of the opening statement in terms of, you know, how can we get to more cost-effective solutions, I've been very impressed by the fact that when it comes like shooting down drones, we've invented some new systems. We were shooting them down with two, three million dollar missiles, um, L three Harris has come up with the the Vampire system, this thirty thousand dollars a shot, very effective. Another private company came up with Mirops. By the way, I think Vampire is a much better name than Mirops if you're gonna name a system just for those paying attention to those things. Fifteen thousand dollars a shot, and it was all about figuring out, OK, we have our needs, how do we meet them in a very cost-effective way? What is the equivalent in the Navy and Marine Corps in terms of how you're thinking about meeting your needs? in a more cost-effective way, and that's one of the many things that troubles me again about the battleship. We look at new technology, new ways to deal things, all these demands, asymmetric advantages, and we come up with say, you know what, we're gonna go with a massive twenty-two billion dollar solution. That seems to be the exact opposite of taking advantage of modern technology to meet your needs in a more cost-effective way. So how are you all thinking about options equivalent to, instead of two million, we're gonna do thirty thousand and achieve the same objective and using new technology to get there.

Hung Cao (Witness)46:55 – 47:39

I can remember you're absolutely right, sir. I mean, we're when we're launching an SM two missile that costs two and a quarter million dollars per shot, to take down a thousand dollar drone, it it's ridiculous. And that's why electronic warfare is so important. I mean, we need to cover everything from thirty megahertz to eight gigahertz, with no band breaks in between, but also we need static radar to look at it, but also gimbals because a lot of their cross-section, the radar cross-sections of these drones look very similar to our aircrafts as well. So, there's many options out there and you you mentioned like a large ship, well there's as far as I was in the navy even all the way back to two thousand eleven when I worked in N ninety six the surface warfare division, we had a requirement for a large combatant, it's called C G X at the time because our

Rep. Smith (WA-9)47:38 – 47:41

We got a lot of requirements, Mr. Secretary.

Hung Cao (Witness)47:40 – 47:40

Yes sir.

Rep. Smith (WA-9)47:41 – 48:09

One of the things that I would suggest that we're gonna need to do is get out of the requirements-based approach I mean so much that goes on at the Pentagon and I think the chairman agrees, is we all sit around and come up with requirements, OK, and there's gosh, tens of thousands, hundreds of thousands of pages of them. Let's focus on what actually needs to be done and say, well, we got a requirement for it, um, we gotta think through it a little bit more than that. Sorry to interrupt, just had to make that point. Go, go ahead.

Hung Cao (Witness)48:11 – 49:09

Thank you for that. Uh, do I can remember again, there's I I I I pay bills at home and there's, you know, the kids need braces they need everything and that's we have to balance all those things but again with the the battleship the problem is that your your d d g s are so decked out right now the pinkney uss pinkney is the only ship in our fleet that has a slick thirty two victor seven for electronic warfare and and i mean i i told you yesterday i mean it looks like a big chipmunk with a mouthful of nuts right now because it's it's so uh burden and that's why we need a large combatant that has all electronic warfare as well as two hundred v l s cells including conventional prompt strike. Imagine a missile that can go from here to the the uh West Coast in sixteen minutes, uh that the enemy can't stop, and this is what's gonna deter the enemy. Uh meanwhile we need to also invest into our our shipyards, we need to invest into our electronic warfare, and as well as our sailors and marines as well, and this is why it the the job of balancing the budget is so difficult and uh,

Rep. Smith (WA-9)49:10 – 49:10

Sure, well

Hung Cao (Witness)49:10 – 49:12

again I I wanna read I'm sorry, sorry, go ahead.

Rep. Smith (WA-9)49:12 – 49:46

Yeah, one other que- question on that um There are a lot of different companies now making autonomous ships. They're really, it in and yes the autonomous aspect is important, but they're also looking at new ways to do ship building in general. Um, how can we do it more rapidly, uh, more cost effectively. They seem to have made a lot of progress. What are the principal lessons that have been learned from that that regardless of what we're building, whether it's a battleship, an aircraft carrier, or something smaller, that we could do it more quickly and more cost effectively? Do you, and I Both Admiral and the Secretary, if you can either one, yeah.

Hung Cao (Witness)49:45 – 49:48

Well, again, uh I'll turn uh Admiral Cottle in a second,

Rep. Smith (WA-9)49:47 – 49:47

Sure.

Hung Cao (Witness)49:48 – 49:55

but it's just about uh using AI so we can uh streamline our processes as well as adding for manufacturing but uh Admiral Cottle?

Daryl Caudle (Witness)49:56 – 50:34

You know, sir, I would say when we were upside down as the Secretary's talking about on on kills, you know, cost per kill with SM two, SM six, we filled it and and rallied very quickly during Red Sea operations Rough Rider to actually get on board our strike groups Roadrunner, Coyote, and Hellfire instantiations of that to really turn that very quickly. That took collaboration from our Surface Warfare and Mine Development Center, from Surfland, from Dahlgren, and of course NAVWAR to get those TTPs, bake that in, get it certified, and every striker has deployed with that. It's much more effective and that learning happened very quickly.

Rep. Smith (WA-9)50:31 – 50:32

Yeah.

Daryl Caudle (Witness)50:34 – 50:39

Directed energy of course is part of that electronic warfare. Some of the things that, you know, in the in the

Rep. Smith (WA-9)50:39 – 50:41

I'm out of Time. I apologize for that.

Rep. Rogers (AL-3)50:41 – 50:41

Sure.

Rep. Smith (WA-9)50:41 – 50:47

I don't I don't want to take too much time. But those are exactly the types of answers that I think we need more of. I yield back. Thank you, Mr. Chairman.

Rep. Rogers (AL-3)50:48 – 50:49

Thank you. Mr. Turner is recognized.

Rep. Turner (OH-10)50:50 – 51:18

Thank you, Mr. Chairman. Uh, Mr. Secretary, I am the co-chair of of your I am the I am the co-chair of the Congressional Military Sexual Assault Prevention caucus. Several of us have received information of a change in the Navy policy concerning how investigations of reports of sexual harassment are handled. um, I'm going to submit to you, uh, a letter requesting, uh, written answers to concerns about, uh, those changes. I ask unanimous consent to,

Rep. Rogers (AL-3)51:18 – 51:18

Yeah, good.

Rep. Turner (OH-10)51:18 – 51:20

uh, submit this for the record and then,

Rep. Rogers (AL-3)51:19 – 51:20

Bad objection.

Rep. Turner (OH-10)51:20 – 53:21

thank you, and then ask for your, uh, written, uh, responses to those. Um, Mister Secretary, uh, Wright-Patterson Air Force Base is in my district and it is home to the seven eleventh Human Performance Wing. It is also home to the Naval Medical Research Unit Dayton. Uh, it is the site whi- as where those two come together as a joint center of excellence for aerospace medical research that was established in two thousand and five. It's a place where the um, Air Force and the Navy are supposed to come together, uh, conducting aerospace medicine research for the purposes of advancing human performance in aerospace. Unfortunately, the Naval Medical Research Unit in Dayton has been neglected in twenty Twenty-two, a study for the U. S. Army Corps of Engineers identified that this medical unit was in desperate need of just basic maintenance, um, and, uh, it continues to struggle for funding in basic infrastructure improvements. As a result of that, I put a request in the, in last year's NDAA, uh, for the Navy to respond to how is the Navy going to respond to this report from twenty-two that has yet to be, um, answered. That report in the NDAA had a deadline of of this year of March thirty-first, which was missed this year. Uh, so the Navy hasn't even responded to the request to respond to the lack of responding to the Army Corps of Engineers' response which was twenty, twenty-two. Um, we're missing the opportunity for the, uh, Navy and the Air Force to work together in aerospace medicine research which again is supposed to advance human performance in in aerospace. But secretary I'd ask you are you aware of this missed opportunity and um you know, can we remedy this this opportunity so that we can advance obviously this this incredible opportunity to advance human performance in aerospace?

Hung Cao (Witness)53:22 – 54:25

Congressman, uh I apologize, I I was not aware of this, but you know this is the problem when we have a lot of these uh you know units attached to Air Force bases I had the problem in Tinker Air Force Base too where we had a large number of suicides and that, I've I've gone there personally and I've I've uh made a lot of headway in order to to curtail the suicide rates at Tinker Air Force Base, but for for Wright Patterson Air Force Base, human performance is so important. We have to treat every na- uh sailor and marine like a weapon systems. We need to take care of them. That's whether it's through human performance or or medical treatment or even mental health we will do that so uh you have my word that I will uh not only look at into this, respond quickly, but also come come visit you, sir. And in response to your the uh sexual assault um and sexual harassment, we we are we are gonna investigate every single issue with with uh license and and or trained uh investigators, and we will respond to that that request as well. And uh again, I I have five children, three daughters, I will not allow this to happen.

Rep. Turner (OH-10)54:26 – 54:27

I look forward to your response to both. Thank you.

Rep. Rogers (AL-3)54:30 – 54:32

Uh, gentleman from California, Mister Garamendi.

Rep. Garamendi (CA-8)54:34 – 55:38

Uh, thank you, Mister Chairman. Uh, Mister Chairman, uh, you and uh, ranking member Smith, as well as the secretary, uh, spoke to the issue of the commercial, uh, fleet that America does not have. Uh, draw to your attention there is a piece of legislation called the Ships Act that deals directly with that. Uh, I bring that to the attention of the committee and perhaps could be an integral part of our work as we form up the uh NDAA. Um rather important in meeting all of the requirements that we have. So I'll let it go at that. Thank you for bringing the issue up and I'll drive it forward. Um I have uh two questions here uh Admiral Cottle. The west coast of the United States, I believe borders on the Pacific. The Pacific is going to be, has been and will continue to be a major theater with enormous um, challenges. Do we have sufficient facilities on the west coast of the United States to meet the needs of the Navy as it looks to its larger fleet and to the challenges of the Pacific?

Daryl Caudle (Witness)55:41 – 56:37

Uh, Congressman, uh, we do not have sufficient facilities in general, and I would argue that we do not have sufficient on the west coast. As our theater of importance and our priority of how we've split the the Navy, our sixty forty split predicates that to prevent transits through the Panama Canal or other ways we get around to the east coast, the more options I have as the CNO for parishes without those transits to east coast public yards the way I can, you know, have to fair share those yards and keep them level loaded, improves quality of life for people if they can stay on the coast and not such large, uh, PCS moves, and just improves combat and damage control that I can do when I actually need a repair, and in that capacity. So we are tasked in this budget to go look hard at a fifth shipyard. And that n- that study is, you know, we will take a lot of time and understand that very clearly where to lay down that capacity but I would to your answer your question bluntly no, I do not have sufficient capacity.

Rep. Garamendi (CA-8)56:38 – 57:23

I look forward to working with you on uh developing opportunities on the West Coast for the uh need of the Navy for its ship repair and perhaps also for the uh uh development of additional Fleet. Uh, I wanna go to General Smith. Uh, you spoke in your um opening testimony about the uh amphibious ready groups and the MEU's. What do you need to carry out your plan? Do you have sufficient ships, amphibs, large and not so large? Uh, and what is the plan to develop? What is your plan and what is your need to develop the necessary fleet for the Marine Corps.

Eric Smith (Witness)57:25 – 58:00

Well, sir, thanks for that question. So our requirement is a three point zero R mu, again, one off the east coast, one off the west coast, and one episodically deployed out of Okinawa, Japan. We're currently required to have a minimum of thirty-one amphibious warfare ships, but that was predicated on eighty percent readiness, and we're we're well short of eighty percent readiness uh in in the amphib fleet, we're closer to uh to fifty percent, so we're gonna need more ships. Um, I I defer to my shipmate, Darrell Cottle, on on exactly how many ships are gonna be required to maintain that three point O RGME presence. But my requirement is a three point O RGME presence regardless of the number of ships that are available.

Rep. Garamendi (CA-8)58:01 – 58:04

So those would be the large amphibs and the medium?

Eric Smith (Witness)58:04 – 58:08

Yes, sir. L LHAs, LHDs, and then LP LPDs.

Rep. Garamendi (CA-8)58:10 – 58:16

Uh, is are they presently in the planning that the Navy is putting forth?

Eric Smith (Witness)58:18 – 58:21

Again, I will I will defer to uh to the secretary and to the CNO on that,

Rep. Garamendi (CA-8)58:20 – 58:22

Well then, let's move to the secretary.

Eric Smith (Witness)58:21 – 58:21

sir.

Daryl Caudle (Witness)58:22 – 58:28

Sir, yes, well, sir, I was just gonna tell you, we have an LHN, LPD and and LSMs in the budget. Yeah.

Rep. Garamendi (CA-8)58:30 – 58:37

So both of the all three of those ships are in the budget, have sufficient number to meet the needs of the Marine Corps?

Daryl Caudle (Witness)58:35 – 58:38

Yes, Congress. Yes, Congress.

Rep. Garamendi (CA-8)58:39 – 58:45

Very good. Um, with that I will uh yield back. Thank you, Mr. Chairman.

Rep. Rogers (AL-3)58:45 – 58:48

Gentlemen, yield's back, chair and I recognize the gentleman from Virginia, Mr. Whitman.

Rep. Wittman (VA-1)58:48 – 1:00:48

Thank you, Mr. Chairman, I'd like to thank our witnesses for joining us today, Secretary Cowell, Admiral Caudill, General Smith. Thanks so much for the incredible job that you do. Secretary Cowell, I want to start with you. Uh, yesterday at the House subcommittee on appropriations for defense, you talked about nuclear power generation, specifically onshore nuclear power generation. We all know our nuclear navy is is the best ever in the history of humankind and how it utilizes nuclear energy to power our ships, that's seventy years of record with naval reactors, is beyond uh beyond reproach. What I wanna look at is how are we taking that technology and then applying it in different ways. And I got language in last year's National Defense Authorization Act that directed pilot projects on Navy bases to actually do onshore nuclear power generation with small modular reactors and to do that in a way where we can pair that with data centers. Listen, the the future of what we need to make sure we win the race in AI is gonna center around data you wanna have your power generation sources close to where your data centers are the power demand there's a need for the military for for that power generation to have organic capabilities on a base to make sure we're not at peril with the the larger grid if somebody tries to take it out and then making sure we have our own organic capability with the data that we need for that all those things make sense they're also in align with what's happening uh externally with other efforts to generate more power uh to to uh respond to this nation's increased energy needs and making sure that we're doing data center development in a very responsible way and I argue the nation and the navy and the military benefits from that give me your perspective on how you think we can aggressively pursue this to as quickly as we can get these SMRs permitted and under construction on navy bases how we can look for partners in the data data center realm to put those on military bases or on Navy bases and how you would look at executing that.

Hung Cao (Witness)1:00:49 – 1:01:04

Thank you, Congressman. This summer, uh, the Norfolk Naval base is gonna be powered from an aircraft carrier. We're gonna export the energy from the air ex- uh, air craft carrier to the base. But imagine having this this power generation from within the base,

Rep. Wittman (VA-1)1:01:04 – 1:01:04

Mm-hmm.

Hung Cao (Witness)1:01:04 – 1:01:10

that we can even export the energy to the surrounding area and work use that as a working capital fund to now actually fix our bases.

Rep. Wittman (VA-1)1:01:07 – 1:01:07

Yeah.

Hung Cao (Witness)1:01:11 – 1:01:49

And the e- energy that's produced from these, we can power also, uh or you know, use it for a four stage distiller, making water, fresh potable water. I mean on a carrier we're pumping millions of gallons over the side every day of fresh potable water that tests a PH seven, right, that that we can now export in places like California where you have a drought, you can actually export the energy of that water to to uh to put in the um the the surrounding area. Now, the president has named the army, which breaks my heart, as the executive agent for shore base thing. This is, as a matter of honor, we are the nuclear navy.

Rep. Vindman (VA-7)1:01:50 – 1:01:50

Yeah.

Hung Cao (Witness)1:01:50 – 1:01:56

So I w- I do want to turn over to Admiral Cottle who who is more uh in tune of of nuclear power than I can ever be.

Rep. Vindman (VA-7)1:01:56 – 1:01:56

Mm-hmm.

Daryl Caudle (Witness)1:01:57 – 1:01:59

Congressman, you know, one thing we need is a champion.

Hung Cao (Witness)1:01:59 – 1:01:59

Yeah.

Daryl Caudle (Witness)1:01:59 – 1:02:05

OK, you're you're doing that over here, but we've got to have an overall programmatic champion for the SMR program.

Rep. Vindman (VA-7)1:02:04 – 1:02:05

Mm-hmm.

Daryl Caudle (Witness)1:02:05 – 1:02:10

So I think we're dithering a bit there and not really kind of landing on, you know, the pilot and laying out the program of record.

Rep. Wittman (VA-1)1:02:11 – 1:02:11

Yes.

Daryl Caudle (Witness)1:02:11 – 1:02:18

So, uh, you know, while the Army may be, you know, tapped to be the overall lead for it, I see no world in which the Navy's not going to be part of that discussion and bring

Rep. Wittman (VA-1)1:02:18 – 1:02:18

Yeah.

Daryl Caudle (Witness)1:02:18 – 1:02:29

our expertise through our long established naval reactors uh deep understanding of reactor physics and understanding safe operation. But we need to get a pilot established and a target date and get one going.

Rep. Wittman (VA-1)1:02:27 – 1:03:41

Yes. Yep. Yep. And, McCall, thank you, and we we will be laser focused on that again this year in the National Defense Authorization Act. I wanted to to follow on with that on a shipbuilding issue. Um, there's one point eight five billion dollars in this year's president's budget in the request for advanced shipbuilding, industrial base and future ship experimental, essentially looking at the proposal of taking foreign designs and then putting those in place for our shipbuilding. Um, I just have a question about that, I have a hesitation about that, cuz we tried that with FREM. with an Italian design and we took an Italian design and we said, okay, it's eighty-five percent complete and then made adjustments to it and all of a sudden it only became fifteen percent complete on design. And today we have two constellation class ships and that will be it. We will cancel the rest of the program. So I guess my question is is how do you see this going forward and and how are we going to uh reconcile the effort to say let's grow the industrial base, let's grow ship building in the United States, And on the other hand, say that we're going to now look at foreign ship designs in how we're going to build and sustain a U S shipbuilding industrial base for our U S Navy.

Daryl Caudle (Witness)1:03:43 – 1:03:51

Well, you know, uh, there are a lot of lessons we learned from constellation. You, this can be done right. I think the icebreaker program is an example of where, you know, this can be done.

Rep. Rogers (AL-3)1:03:51 – 1:03:54

Gentlemen's time's expired. Chair now recognizes the gentleman from New Jersey, Mister Norcross.

Rep. Norcross (NJ-1)1:03:55 – 1:04:02

Thank you, Chairman, and I'd like to thank the witnesses for being here today. Uh, we're focusing on our ship shipbuilding capacity for good reason.

Rep. Rogers (AL-3)1:04:02 – 1:04:03

Thanks.

Rep. Norcross (NJ-1)1:04:03 – 1:06:27

Um, it's not working. It's getting better. Back when Pearl Harbor happened in nineteen forty-one, our ship building capacity was in shambles. Within two years, President Roosevelt brought those leaders of the great industrial companies in this America, and within two years we're pumping out one ship a week plus. We got behind it. We know we got into this problem by disinvesting in our own industrial base. That's why back in twenty one we put a Buy American Act to step up the percentage of American-made products in our shipbuilding. Back in twenty four, the Minds Act expanded on that to say you're going to from sixty-five to seventy-five and eventually eighty-five percent. Well, A, we put that in, it's law. We have not received one report from the repository we created to say how much of our industrial base starts and is made here in the United States, repeating the problems that's got us into it. Yet, this year's shipbuilding plan states that strategy for growing the industrial base, the expansion of the industrial base through direct foreign investment that the plan's contents, the table contents, an entire section dedicated to foreign investment and support. This is contrary to those last two pieces we put in the NDA and time after time people in your position says, we have to build our industrial base, yet we haven't. Goes on at the same time the acting secretary of the navy, the entire plan was about restoring maritime, industrial, Secretary, you stated it five minutes ago. So here we are, we know the plan that we need to do is to invest in ourselves like we've done once before. Yet, the shipbuilding plans goes the exact opposite direction and says how do we get foreign investment? This is what got us here. Do you need a little boost in the beginning? Potentially. We're not saying that's not the way to do it. But the idea of foreign investment got us into this problem, the offshoring of our industrial base. So, Mister Secretary, how do you square these circles?

Hung Cao (Witness)1:06:29 – 1:06:46

Congressman, thank you for that question. We're not investing in foreign shipbuilding. What we're doing is seeing what their these these models work, whether they work in our fleet, and then they will bring that to the United States. Some of these foreign shipbuilders are cranking out the shores at a rate of one every two years.

Rep. Norcross (NJ-1)1:06:47 – 1:06:47

I

Hung Cao (Witness)1:06:47 – 1:06:49

Whereas it's taken Six to eight years from now.

Rep. Norcross (NJ-1)1:06:48 – 1:07:08

Please just give me a moment. Page seventeen of that plan, potentially from overseas shipyards, along with the fuel tankers, and that acknowledgement, this work may be performed from the outside United States. So if what you're saying is true, you have to change that saying, we're not going to get these made outside the United States.

Hung Cao (Witness)1:07:08 – 1:07:36

But ag- again we're we're also bringing our workers over there to learn their tactics and techniques, sir, because We're just not doing it fast enough over here. We're it's one of those things where, you know, th they they they use a lot of AI to to uh map out their their workload every day so that we're not wasting time on on just paperwork. Forty percent of our our time at the uh at our shipyards are spent doing just paperwork uh on on literally a clipboard and an Excel spreadsheet, instead of doing it.

Rep. Norcross (NJ-1)1:07:36 – 1:08:14

So invest in the United States. So we don't do this. The idea that you've opened up the door here, contrary to what we've been saying, for foreign investment on their side of the water completely different than what we talked about in this committee, what you talked about. I have no problem sending people over to learn it better, no problem. But the idea that somehow it's because we didn't learn how to do it better, no, we didn't make the investment. So please, I wanna hear from Admiral and from you that you're not gonna build these ships overseas. You're gonna build it here in the United States where our industrial base needs to grow.

Hung Cao (Witness)1:08:15 – 1:08:47

We we have to push every lever, Congressman, to to make this work, I mean it's like going uh honestly it's like going to a candy machine, your Snickers bars get stuck, you know you can do two things, you can call that number eight hundred number and no one's gonna respond, you're not getting your money back, you can put more money in but that's not gonna work, you can shake the machine, it's just not gonna get or you can go s- you know next door to the the the other candy machine and get it, that's what we're trying to do, sir, we're trying to make sure that we w- we we are in invigorating the the uh industrial base and energizing them and causing competition.

Rep. Norcross (NJ-1)1:08:45 – 1:08:56

I had nine seconds. Thank you. I appreciate your speaking directly to this, but the fact of the matter is we're not investing here in America to the point that we need. Thank you. I yield back.

Rep. Rogers (AL-3)1:08:57 – 1:09:00

Gentlemen, it's time to expire, here now recognized gentleman from Tennessee, Doctor Dejah Lay.

Rep. DesJarlais (TN-4)1:09:01 – 1:09:48

Thank you, Chairman, and thank our witnesses for being here today. Uh, Mister Whitman started the subject and and Mister Norcross uh continued it. I had a a question. first secretary uh cow in your opening statement you mentioned how the department has been focusing on expanded distributed uh distributed shipbuilding efforts uh can you expand what those efforts will look like in a practical sense and how foreign shipbuilding efforts will impact domestic shipyard production and just as an aside uh yesterday i met with south korean ambassador kang in my office who was uh offering shipbuilding uh uh uh capabilities in South Korea and what other allies of ours around the world can help us fill the gap while we're trying to rebuild American's uh ship building capacity.

Hung Cao (Witness)1:09:50 – 1:10:50

Thank you Congressman. We're trying to, like I said, energize our industrial base here. I think some of our primes have gotten very comfortable uh with the way they're they're doing things, cranking out ships at six to eight years. I mean, we're better than this. We're Americans. We can do a lot better than this. And sometimes it just takes a little competition to to to get us going and this is where we're we're bringing in foreign foreign ship builders to say you know what let's bring our our American workers over there see how they build things and bring it back over in uh and and industrialize our our really our our capacity. On alo- along with that we are looking in a few weeks I'm I'm hoping we'll be able to announce to you guys some of the things we're gonna build in America that's uh you know it's being worked on right now as we speak by by the uh Deputy Secretary of War. And so I I'd love to come in basically twenty-four hours before we announce these things to inform you how we're gonna do that but let me turn over to Admiral Cottle and and so he can talk about the SIA program that his his uh officers are working on.

Daryl Caudle (Witness)1:10:51 – 1:11:47

Well, I've been tackling this for the last six years. I'm the Sub Force Commander to the Fleet Forces Commander to CNO. And uh to some extent the Secretary's got it right. He's been pushing a rope on getting the improvements we need to see. I live in a real threat-based world. And threat-based analysis means I actually have to have, no kidding, ships. And while I love everything to be built in the United States, we do have to expand the aperture. This budget to be executed will have to expand the industrial base, and actually go in a smart way, in an optimized way, lay down that ship demand signal across the different yards that can actually go produce this in an effective way. In my world view, that will actually require some foreign shipyards to actually help me do that. to actually deliver the actual ships I need in a time frame when that's important. And so, uh, I think it's an all hands on deck and execute this budget at the size and scale that's gonna take that approach.

Rep. DesJarlais (TN-4)1:11:47 – 1:12:20

OK. And Adam Recoddle staying with you, let's go underwater. The Navy had a plan to potentially extend the service lives of several Ohio class submarines known as uh PIRA, to ensure sea base deterrence requirements continue to be met during the transition from Ohio to Columbia. My understanding is this plan continues to evolve. And the Navy is now looking at a s- smaller life extensions for greater numbers of Ohio class submarines. Can you update us on the current approach and the importance of ensuring at-sea deterrence requirements continue to be made as we transition from the Ohio to the Columbia?

Daryl Caudle (Witness)1:12:21 – 1:13:11

So there will be no chinks in the armor of deliver delivering a credible, safe and effective sea-based deterrent. It underwrites every single thing we do from continuity of government, to continuity of decision making, to continuity of operations. We will actually filled that in accordance with U. S. strategic command requirements. So to make sure that happens, I am making sure that as Columbia comes online, that I have a what I would call a make before break transition between Columbia, as we sunset the Ohio class which has served so well. To do that, we will extend some Ohio class to give us the breathing room necessary for that transition. And so, well, that's our plan of record for that, the total number of that is still being refined. But you can look at a number between four and five Ohio class to actually make that transition effective and uh we will extend them through the PIRO uh, availabilities of you as you have described.

Rep. DesJarlais (TN-4)1:13:11 – 1:13:38

Okay, thank you, and uh Secretary Cowell, we've only got forty-seven seconds, but we know we've had some setbacks in both the conventional prop uh, prompt strike programs, the army's land-based long-range hypersonic weapons, and due to previous test failures involving army launchers and all up round both CPS and LRHW have undergone a replan. Can you speak to the progress of the replan and how Congress can work to support the advancement of the hypersonic mission in twenty seconds?

Hung Cao (Witness)1:13:39 – 1:13:58

Uh, Congressman, uh I I worked on moving the conference from from ATNL, it was the ATNL to Navy in two thousand sixteen, and we were supposed to deliver it and and and we're we're running running out of time, so we're we we are accelerating as fast as possible, but slick amend is also another deterrent that will really be a game changer, sir.

Rep. Rogers (AL-3)1:13:58 – 1:14:03

Thank you. Yield back. Back. Gentlemen, yield back. Here now recognizes is Mr. Courtney.

Rep. Norcross (NJ-1)1:14:03 – 1:15:06

Thank you, uh, Mr. Chair. Um, Admiral Carlo, uh, a few weeks ago, Indo-Pecam Commander, uh, Admiral Paparo testified that the AUKUS security agreement is essential and that pillar one of the AUKUS optimal pathway quote is on track in every regard. Uh, as you know, Congress has made direct investment in the submarine industrial base ten billion dollars uh since twenty starting in twenty eighteen, uh and we're seeing some um positive uh results in twenty twenty five in New England, there was a thirteen percent increase in submarine tonnage. Uh we had the commissioning of the twenty fifth and twenty sixth uh Virginia class submarine uh just a few weeks ago the acting secretary was there for the Idaho the number twenty sixth and the twenty seventh and the twenty eighth are pressure hole complete and they're in the process of going through sea trials knock on wood delivery and commissioning sometime within the next twelve months uh or so. So my question to you is Do you agree with the findings of the AUKUS review last December that endorsed continuing uh our commitment to that security agreement as well as Amal Paparo's testimony?

Daryl Caudle (Witness)1:15:08 – 1:15:39

Congressman Courtney, uh, I wholeheartedly agree with it. I was part of it. I was uh in bed creating it. Uh, I made a lot of the recommendations in it that were actually adopted and fully support AUKUS pillar one fully support Sam Paparo's uh statement and I look forward to sending up sovereign squadron three later this year. and making sure that submarine rotational force west becomes alive and getting the first Virginia class transfer to Australia next year as we continue to build out where they eventually buy US submarines. So fully support, sir.

Rep. Norcross (NJ-1)1:15:40 – 1:16:20

Thank you. Um, you know, another aspect of this is uh having surge readiness uh in place. I know when Admiral uh Houston took over at naval reactors uh it was hovering around sixty percent uh in terms of submarine availability, it's sort of gone up a little, a little bit down a little, and um but can you talk about again how something that doesn't get talked about a lot, but if you're really talking about making sure that our undersea fleet um is gonna be um in a position to complete the commitments that AUKUS calls for, but also make sure that all our combatant commanders like Admiral Paparo um, you know, have the um access uh to to the undersea fleet at the same time.

Daryl Caudle (Witness)1:16:22 – 1:17:05

Well, I mean, this is really about, you know, posture, you know, where do we put our submarines and and home port them in a way that we can sustain them and operate them. That's why Guam is so important, the submarine squadron fifteen there. That's why, you know, Hawaii and and of course San Diego have become very important. And then what we've done is, and I think in a very thoughtful way, is uh for once in a lifetime shared technology with a close partner in Australia, to give them a no kidding submarine force that will add a an entirely new dimension to the threats we face in the Indo-Pacific. And so that under the submarine squadron and the way we will command and control that working with the Australian Navy who are great partners and have been for decades will give Admiral Porparo access to those submarines as well.

Rep. Norcross (NJ-1)1:17:05 – 1:17:30

Thank you. So, and General Smith along the same lines, I mean, making sure that uh the amphibious ship industrial base both in terms of production and uh repair and maintenance uh I mean that's pretty key to making sure that we have the Mew uh levels that that um you have again testified over the years about. Can you sort of give us sort of your perspective about where that um those efforts that that enterprise stands?

Eric Smith (Witness)1:17:32 – 1:18:20

Sure I can. The the the three what I base it on is a three point O R mu presence. Uh our the the thirty one uh amphibious warfare ships that are required by law are based on eighty percent readiness. Again we're we're well below eighty percent readiness. So my requirement is a three point O RME presence, and I'm agnostic as to how we improve the amphibious readiness. Uh, there's multiple ways you can do it. Uh, you can do optimized maintenance and forced generation, you can do targeted service life extensions, and you can do new ship procurement or a combination of the three. And so I defer to - to my shipmate, Darrell Caudill, on how to meet that requirement. But both services agree that thirty-one ships is simply not enough for a three point O RME presence. Um, achieving this requires increased investment. And again, PB twenty seven is a significant down payment on this.

Rep. Norcross (NJ-1)1:18:20 – 1:19:12

Great, thank you. So, uh, I've only got a little bit of time left. Next week, um, the Seapower subcommittee is gonna be holding its own sort of posture, budget, um, uh, perspective. There will be many questions about the battleship program. Um, you know, we're going from basically a poster board in December to billion dollars, requested this year, seventeen billion the following year. Um, you know, the one lesson certainly in my time here is that Before you start cutting steel, you gotta make sure your design piece is done or pretty darn close to done. Um, we have, you know, whether Zumwalt or LCS. I mean, the the stories s- still haunt, I think, uh, a lot of us here about the fact when that, you know, discipline is not sort of adhered to. But again, I'm running out of time, but I wanna at least flag that for you and your team that, you know, we've got lots of issues and questions. We wanna explore on that. With that, I yield back.

Rep. Rogers (AL-3)1:19:12 – 1:19:16

Gentleman yields back. Here now, recognize the gentleman from Mississippi. General Kelly.

Rep. Kelly (MS-1)1:19:17 – 1:20:44

Thank you, Mister Chairman, uh I wanna start by just saying that uh we need every shipyard in America at full capacity. We need every dry dock repairing some ship that we have somewhere. That is critical. I just visited the Philly shipyard uh this last weekend. We don't they they can be complimentary. We need to make sure all these shipyards at full capacity, that they have a steady demand signal, and that we continue to produce warships, but not only warships, but logistical ships that support both our uh maritime mariners and our navy. And so whatever it does, some of those skills interlay. So I want to begin by thanking President Trump for his leadership in restoring our military, including historic investments in our ship building and strengthening the defense industrial base. The budget builds on that progress and reinforces the national defense remains a top priority. Secretary Cowell, congratulations on your appointment and thank you for releasing a thirty year ship building plan. I have been on this committee for nine years and I have been asking for nine years for a thirty year ship building plan and we finally have one. While I may not agree with the contents of every one of it or exactly how it goes, at least we have a basis to now determine what type of ships to build. Secretary Cowell, um, what can this committee be doing to help incentivize a quicker amphib production rate?

Hung Cao (Witness)1:20:46 – 1:22:00

Thank you Congressman for that uh for again um for your comments and as well as uh you know getting out the shipbuilding plan was hard but the way I see it the Congress of the United States is like the board of trustees and I need to answer your your answer uh your questions and you know it might not be perfect thirty years on cuz we we had no idea what what the world looked like thirty years ago I mean uh we We didn't know anything about autonomous v vehicles. We didn't know about uh that China was a threat. We didn't even know who Osama bin Laden was. So I wanna concentrate definitely on the five, ten, fifteen years, and that includes the the amphibious ships as well. And and like you said, we need to pull every single lever there is in order to get ship building going. And it may very well be something simple like, you know, these young people that we lied to and said, hey, you have to have a degree to to make a living, and they're they're they're not working right now. what can we do to maybe even freeze their their loans right and then when they work at a shipyard they we we pay off every year we pay off a a year of that loan just so they can have the the the honor of a working for living as well as as paying off their bills but there there's lot of things we need to do sir but the main thing is we we need this budget to be passed so that we can you know energize and invigorate ship buildings sir.

Rep. Kelly (MS-1)1:22:00 – 1:22:56

Okay. Admiral Carl I I'm just gonna make a comment cuz I really don't time but the Navy has to get better about not procrastinating on amphib readiness. We need to either build more amphibs and we need to keep those ships ready, uh, and, and I know that we're improving, but we need to improve much faster because we need those, that's the Swiss knife of our Navy, and ground forces, and air power, and so those amphibs are so important for both hard and soft power on the globe, and so whatever it takes, we need to commit to getting three point O RGMS. Uh, with that, I wanna talk just a little bit about the E two Ds and the c- uh, it continues to prove itself as one of the Navy's most important battle management and con- command and control platforms. Uh, tell me, uh, what, what do you think about the block bind, is it the right numbers, and how important are these E two D, E two Ds to the force?

Daryl Caudle (Witness)1:22:58 – 1:23:44

Well, sir, thank you. Let me just say, just real quick, w- there is no daylight between this table on We're all behind three O and we're working. I look forward to talking to you about the improvements. On E two you got it exactly right. That is a special sauce of the air wing. Obviously it's recognized uh not only for its ability to support carrier strike group but we dirt depth them as well and support the joint force. And so it's a need for the uh that joint capability is crucial. Block buy is essential for a lot of reasons. One, it gives a clear demand signal to the investors who build this and actually who are gonna produce it. It allows me to actually factor in through a more structured way how we modernize. It's how we actually keep that the the line open in a more productive manner. So I'm behind the block by methodology and I think it's really important to do it in that factor.

Rep. Kelly (MS-1)1:23:44 – 1:23:58

Thank you. And General Smith, I don't want to leave you out, but the KC one thirty J's, it's really important that we keep the the the procurement strategy that is not delayed and that capacity is so important to the Marine Corps' mission. Is that correct, General Smith?

Eric Smith (Witness)1:23:58 – 1:24:06

Sir, KC one thirty is, is, if I had to pick a platform that I would keep and the best of all others, I'd pick the KC one thirty J. And I'd like

Rep. Kelly (MS-1)1:24:05 – 1:24:09

And don't forget about my P-eights, okay? And with that, Mr. Chairman, I yield back.

Eric Smith (Witness)1:24:10 – 1:24:13

Gentleman yields back. You're not a recognized gentleman from Massachusetts, Mister Moulton.

Rep. Moulton (MA-6)1:24:14 – 1:24:48

Thank you very much, Mr. Chairman. Uh, Mr. Acting Secretary, uh, thank you for your service to our country. You said that the Navy would have five unmanned naval vessels by twenty twenty seven, and sixty-three by twenty thirty one. Now, I agree that unmanned systems are a huge part of the future of naval warfare, but what about the small autonomous sea drones that are actually doing the work in Ukraine? Because Ukraine is producing hundreds of sea drones a month. We're nowhere near that level. Now, I thought Secretary Hegseth was proud of leaning up very far forward on drones and autonomous systems. It doesn't feel like that's your department's priority.

Hung Cao (Witness)1:24:50 – 1:25:04

Actually, Congressman, that's that's far from the truth, sir. We are very invested in in uh drones in fact we have the uh raz um pae that that's who's her whole job is to look at uh drones and

Rep. Moulton (MA-6)1:25:05 – 1:25:21

ok so so ukraine's you say you're very invested in drones ukraine's standard c drones costs about two hundred fifty thousand dollars apiece and using those they've pretty much destroyed russia's entire black sea feat fleet billions of dollars in in damages do you think that that kind of capability might help us in this trade of hormuz today

Hung Cao (Witness)1:25:22 – 1:25:33

Absolutely, sir. And again, uh, when I say the five, we're talking large ones, and and we we are investing a lot of the small ones, and I will turn that over to Admiral Cottle who can tell you more about the requirements for small unmanned uh.

Rep. Moulton (MA-6)1:25:33 – 1:25:46

Well, I'm just wondering, I mean, you're requesting seventeen billion dollars for a single battleship hull that won't be delivered until twenty thirty six. Do you know how many two hundred fifty thousand drones you could buy for that one trump class battleship?

Hung Cao (Witness)1:25:47 – 1:25:50

Yes, sir, but those drones cannot carry the conventional prompt strike or have two hundred

Rep. Moulton (MA-6)1:25:51 – 1:26:09

OK, just to put this in perspective, it's sixty eight thousand drones. I think sixty eight thousand drones, when Ukraine is producing fifty to a hundred, or actually sorry, several hundred a month, might help us today in the Strait of Hormuz. I, I just don't, doesn't not feel like a good investment.

Hung Cao (Witness)1:26:10 – 1:26:15

Again, sir, the, the drones can't get there by themselves. It's like the little turtle that sits on your fence post, you know, someone's got to put it over.

Rep. Moulton (MA-6)1:26:15 – 1:26:21

You know, it's funny, the, the Ukrainians managed to get them there, they barely even have a navy. We have fifty five times the coastline of Ukraine.

Hung Cao (Witness)1:26:19 – 1:26:22

I know, sir. They're not telling.

Rep. Moulton (MA-6)1:26:22 – 1:26:25

So if they can figure it out, Mr. Secretary, I'd like to think American fig- could figure out too.

Hung Cao (Witness)1:26:25 – 1:26:26

Yes, sir.

Rep. Moulton (MA-6)1:26:25 – 1:26:42

Now, Mr. Acting Secretary, you told a powerful and very American story of how your family immigrated from Vietnam a few years after the war. I'm proud that our country supported you and your family. Do you think we should do the same for our Afghan allies who are being hunted down by the Taliban right now as we speak?

Hung Cao (Witness)1:26:45 – 1:26:56

Sir, uh, before I uh I came to this job, uh, actually right after the fall of Afghanistan, I mean, which broke my heart. I mean, the watching mothers hand babies to Marines just reminded me what happened in Vietnam.

Rep. Moulton (MA-6)1:26:56 – 1:26:57

I understand, and I was there too.

Hung Cao (Witness)1:26:57 – 1:26:58

We brought a hundred, hundred, sixty-three kids.

Rep. Moulton (MA-6)1:26:57 – 1:27:06

I I felt the same way, but I'm just asking, do you think we should give the same privileges and opportunities to our Afghan allies that our country gave to you and your family and your friends?

Hung Cao (Witness)1:27:07 – 1:27:13

Sorry, I mean, I Anybody who comes here legally should should be given the, uh, the opportunity to come here and and

Rep. Moulton (MA-6)1:27:13 – 1:27:14

Well, I'll tell you what,

Hung Cao (Witness)1:27:13 – 1:27:14

price it.

Rep. Moulton (MA-6)1:27:14 – 1:27:48

you and I will disagree on a lot of things, you might even say we're political adversaries. But I'm very proud that President Ford, President Carter, President Reagan did not deport you or your family while you were working on becoming citizens. Now, Mr. Arctic Secretary, you have publicly supported Secretary Hicks's proposal to ban active duty military members from attending Harvard. Both your official bio and your bio for the Senate campaign proudly list your Harvard affiliation as a Harvard fellow yourself do you believe the education and credentials that you received compromise your ability to serve or lead effectively.

Hung Cao (Witness)1:27:49 – 1:27:56

So we are looking at the best uh education for our military members? I mean, we that that's why Naval p- I I got to Naval Postgraduate School.

Rep. Moulton (MA-6)1:27:54 – 1:27:59

So did Harvard make you too woke? Did Harvard make you too woke to be the secretary of the Navy?

Hung Cao (Witness)1:28:00 – 1:28:03

No, sir, but uh Naval Postgraduate School allowed me to have

Rep. Moulton (MA-6)1:28:02 – 1:28:15

So you don't think, so you survived Harvard without becoming woke, but you don't trust your officers who get in there, who want to go there, who apply there to be able to go there themselves? and not be indoctrinated?

Hung Cao (Witness)1:28:16 – 1:28:23

Congressman, we we need to invest into where where they would best fit for the Navy. Again, going to Naval Postgraduate School, I actually got a patent.

Rep. Moulton (MA-6)1:28:23 – 1:28:27

So you think it was a big mistake for you for you to go to Harvard, cuz you talk about it a lot in your bio.

Hung Cao (Witness)1:28:28 – 1:28:30

Actually, I had mentioned it once, sir. Uh, I mean, it's just that I'm

Rep. Moulton (MA-6)1:28:30 – 1:28:31

You think it was a mistake?

Hung Cao (Witness)1:28:32 – 1:28:38

Sorry, I I would I would love my I love my education at Naval Postgraduate School, cuz it allowed me to learn about the

Rep. Moulton (MA-6)1:28:37 – 1:28:40

Yeah, but I'm asking you about Harvard. If you can't answer the question

Hung Cao (Witness)1:28:40 – 1:28:43

Sorry, I mean, uh, uh, our our way of finding something, sir.

Rep. Moulton (MA-6)1:28:41 – 1:28:56

Don't take the job, Mr. Secretary, let me ask you another question. You're the final authority for y- naming U. S. Navy ships. Do you think President Clinton, who dodged the draft, never served in the military, and was impeached, should have CVN eighty-two named after him?

Hung Cao (Witness)1:28:57 – 1:29:00

Sir, the the convention for naming uh naming um uh

Rep. Moulton (MA-6)1:29:00 – 1:29:01

Yes or no, Mr. Secretary?

Hung Cao (Witness)1:29:02 – 1:29:03

Sorry, I mean, that's that's the uh the mean.

Rep. Moulton (MA-6)1:29:03 – 1:29:07

Do you think, do you think the the ship should be named after President Clinton?

Hung Cao (Witness)1:29:06 – 1:29:07

It should be named after the president of the United States, sir.

Rep. Moulton (MA-6)1:29:09 – 1:29:11

So you support naming it after President Clinton?

Hung Cao (Witness)1:29:11 – 1:29:15

I I have to review all the uh the naming conventions, sir, I I've not reviewed them.

Rep. Moulton (MA-6)1:29:14 – 1:29:17

Well, I hope that you do. Thank you, Mr. Chairman, I yield back.

Rep. Rogers (AL-3)1:29:16 – 1:29:20

Gentleman's count is fired. You're now recognized. Gentleman from Texas, Doctor Jackson.

Rep. Jackson (TX-13)1:29:20 – 1:31:08

Thank you, Mr. Chairman. Uh, thank you for convening the hearing. Uh, Secretary Cowell, Admiral Cottle, and General Smith, uh, thank you for your service, thank you for being here today. Uh, Secretary Cowell, uh, really glad to see you sitting in that seat. Uh, as the PRC continues to modernize its fleet at a historic pace, the need for a ready and capable American naval force has never been greater. The Department of the Navy, fiscal year twenty twenty seven budget request is a defining moment to reassert the United States as the world's greatest maritime power, to rebuild our industrial base, and deliver a larger, more capable golden fleet to our sailors and marines. Under President Trump's leadership, this budget proposes a historic forty-six percent increase in ship building funding representing the highest level of naval investment since nineteen sixty-two, and a clear transition to a permanent wartime footing, simultaneously accelerates US Marine Corps modernization by four years. We must deliver these generational investments and we must do it without delay. The Marine Corps' ability to sustain a credible three point O amphibious ready group Marine Expeditionary Unit RG Mew presence is foundational to the nation's forward crisis response and deterrence posture, particularly as demand for naval expeditionary force grows across theaters. However, General Smith, you have emphasized that Simply hitting a ship count requirement is a meaning is meaningless if those ships aren't operationally ready to sustain a persistent RG Mew presence. I know we've talked a little bit about this subject already, but while I fully support an in the investing in the procurement of new ships, are we also making sufficient investments in amphibious readiness, maintenance, and industrial based capacity to to sustain the Marine Corps three point O RG Mew requirement in the long term? If not, what should we be doing here as members of Congress to make sure that that happens and that ball does not get dropped? General?

Eric Smith (Witness)1:31:10 – 1:32:03

Well, sir, I'll defer to the CNO on on the specifics of of the amphibious warship maintenance project. But what I can tell you is they do require funding. They require the funding to get after the spare parts. They require the funding to get after the time that it takes to produce the the maintenance in the yards. And so again, I will defer to Admiral Caudill. on on the actual how that happens but those ships have to go into and come out of maintenance on time I was taught by uh my assistant uh mef commander a guy named Chris McPhillips called Simon McFly that most of the maintenance we do is because of the maintenance we do on our aircraft anyway you go in to open up a wing and you pop a couple of rivets and next thing you know what was gonna be a a light on a wing uh you you've you've accelerate or you've extended pardon me you've extended the time that a that an aircraft or a ship is in the yards. It has to go into, stick to the maintenance schedule, and come out of on time.

Daryl Caudle (Witness)1:32:05 – 1:33:09

So we're doing a whole host of things. One, um, you know, we had we had to get better at planning. And so we're we've started what we call our signature availabilities, where instead of like, you know, really starting the planning in earnest, you know, the kind of the hundred and twenty days prior to the avail starting, is starting a full contractual out one year now. That's important. Two port engineers were overseeing that. Critical path has always been retarded a bit on diesel overhaul. We're pulling that out of the avail to actually go actually repair diesels during the uh time it's more opportune for us instead of putting that into the critical path. Long lead time material for these designs, boilers, and some of this stuff is very old and we're actually improving the long lead time material, ordering, uh planning improvements, and probably the most important thing we've done is put a four-star oversight board. The uh Assistant Commandant of the Marine Corps and the Vice Chief of Naval Operations runs a quarterly meeting and puts heat and light on amphib maintenance, and briefs uh the secretary out every quarter on this, so that we ensure we have wise o- eyes wide open understanding of any barriers that need to be knocked down.

Rep. Jackson (TX-13)1:33:09 – 1:33:48

Thank you, Admiral. I appreciate that. And I wanna do as much as we possibly can uh as the political winds change, which they often do up here. I wanna make sure that we're doing everything we can to finish this job that we started, that's critical to the national security of this country. One more question for you uh, Admiral. Uh, the V-twenty-two Osprey produce is produced at Bell Helicopter as you may know in Amarillo, Texas where I live, uh remains indispensable for Marine Corps assault, Navy fleet logistics, and special warfare operations. As part of the one big beautiful bill I was proud to secure a hundred and sixty million dollars for the Navy's CMV-twenty-two nacelle improvement program and I'm encouraged to see the Marine Corps is now planning to fully implement these im- improvements as well, a priority that is clearly reflected in the FY twenty-seven request. Admiral,

Daryl Caudle (Witness)1:34:10 – 1:34:19

Yes, sir. I know we're short on time. You have my full commitment on that. Nothing's more important. It's part of our air wing. We're not going back. The the CMV-twenty-two is extremely important.

Rep. Jackson (TX-13)1:34:16 – 1:34:21

Mm. Thank you, sir. I appreciate that. I yield back.

Rep. Rogers (AL-3)1:34:22 – 1:34:26

Gentleman yields back, sure, and I recognize as a gentleman from California, Mister Carbajal.

Rep. Carbajal (CA-24)1:34:26 – 1:35:11

Thank you, Mister Chairman, and thank you to the witnesses for being here. Uh, General Smith, it's good to see you again. Uh, the Marines are the only service to have passed a clean audit. As a Marine myself, I'm very proud to say that. This is something we need for the entire Department of Defense and every service branch. to accomplish. For decades the DOD has failed to achieve this. Frankly, I think it's shameful and an insult to the American taxpayers. General Smith, what lessons did the Marines learn during your audit process that can be applied to the other services to help them also pass their long, long overdue, decades overdue audits?

Eric Smith (Witness)1:35:12 – 1:36:09

Well, sir, thanks for calling out the Marines for passing three consecutive audits. Um, we're we're we're very proud of that. Um, we're uh, again, we're the only service to do so, and it's not because we have the smallest budget. You know, if we were a Fortune five hundred company, we'd be in the top one hundred of Fortune five hundred companies. Uh, we do it just based on simple accountability, and I always use this analogy, although I date myself. When a Marine checks into a battalion, you you check out a shelter half, uh, five tent pins and three tent poles. And when you check out, you turn in a shelter half, three tent poles and five tent pins or you get your butt down to Saigon Sam's, you buy them uh because th- you're signed for them, you're accountable for them. We hold commanders accountable for every dollar that they spend, for every dollar that has to be spent for the purpose for which it was appropriated. We run a very, very tight ship. Um, we're a very for- we're a very efficient service, and we hold commanders accountable. When you fail to meet your obligations, we relieve you.

Rep. Carbajal (CA-24)1:36:11 – 1:36:29

Thank you. Clearly you could uh teach the other uh branches what the hell they need to be doing. Uh so much for the doge uh trying to find fraud waste and efficiency. Um with that I would like to uh yield the rest of my time to my good friend, Representative Tran.

Rep. Tran (CA-45)1:36:30 – 1:37:53

Representative Carberhall, thank you so much. Gentlemen, thank you for being here. Mister Secretary, congratulations on your appointment. Today is a historic day. For the first time, a Vietnamese American defense official stands before a Vietnamese American member of Congress. This moment belongs to our parents and every soul who traded everything for a chance at liberty. You and I carry the weight of a diaspora that has never forgotten the sting of oppression. We are the living voice for those silenced by the Communist Vietnamese government. We have a moral mandate to hold that regime accountable for its relentless human rights violations. I pray you will stand with me in that fight. We must also ensure the freedom we found here reaches across the Pacific. We must maintain a presence so formidable the Chinese Communist Party understands the Indo-Pacific will never be surrendered to autocracy. This is our moment to lead, not just for our country, but for the legacy and the freedom we were chosen to protect. Mr. Secretary, as you know, I represent the largest Vietnamese community outside of Vietnam. Our community remains deeply concerned about the Communist, uh, Vietnamese government's unlawful yelling of political prisoners. Will you commit to joining me in calling for Vietnam to free political prisoners and prisoners of conscience?

Hung Cao (Witness)1:37:55 – 1:38:25

Congressman, thank you so much for your kind words, sir. Uh, again, uh, I owe this country everything, and I've bled for this country, and I will die for this country, for, for everything that it's given me. Um. And and again, a lot of my family members were imprisoned uh wrongfully, and we need to always stand stand up against oppression, and that's what our our job is, the United States. We we don't, we we didn't ask for this. We didn't ask to be the the the policeman of the world. We didn't ask to defend, but that's that's how it is, sir, and we will always fight injustice in in this country,

Rep. Tran (CA-45)1:38:25 – 1:38:26

And thank you.

Hung Cao (Witness)1:38:26 – 1:38:26

sir.

Rep. Tran (CA-45)1:38:26 – 1:38:34

I appreciate you standing with me on this. And General Smith, uh I'm gonna shift over to you real quick. We've also seen that two thousand five hundred Marines and three warships

Eric Smith (Witness)1:38:50 – 1:39:20

Well frankly, the the the gap is is unfilled. Uh when you move an expeditionary unit, a marine expeditionary unit in RMU, you you simply don't replace it. Um when you move one force from one combatant command theater to another, you don't replace it. But the beauty of the ARC-MU is it is returnable. It can sail under its own power and it can return from the Middle East, back into the Indo-Pacific, and that is the the value of the ARC-MU is it is globally deployable, much like a carrier strike group, it is globally deployable. It can be passed from one combatant commander to another.

Rep. Tran (CA-45)1:39:21 – 1:39:23

I appreciate that. My time is about up, so Chairman, now you thought.

Rep. Rogers (AL-3)1:39:24 – 1:39:27

Mr. Lajoie, you're recognized for five minutes.

Rep. Luttrell (TX-8)1:39:29 – 1:39:58

Thank you, Mr. Chairman. Um Mr. Secretary, congratulations. Welcome to the high seat. Admiral and General, thank you for your service, and everyone in uniform in the audience today, thank you for your service to this this amazing country. Admiral and Mr. Secretary and Admiral, you both spoke on um overseas shipbuilding and using the u- utilizing the yards in foreign countries to build out our boats. Where is the steel coming from that we're gonna utilize on these subs and ships?

Daryl Caudle (Witness)1:40:01 – 1:40:06

Um, I think there are multiple sources that could come from global uh places,

Rep. Luttrell (TX-8)1:40:06 – 1:40:07

Are any of those in the United States?

Daryl Caudle (Witness)1:40:06 – 1:40:12

but I can guarantee you that the majority of it, at least for submarines, is coming from the United States of America.

Rep. Luttrell (TX-8)1:40:14 – 1:40:15

Have you ever heard hearth to metals?

Daryl Caudle (Witness)1:40:17 – 1:40:17

No, sir.

Rep. Luttrell (TX-8)1:40:17 – 1:41:31

Mr. Secretary? OK, you mentioned in your opening statement that everything that goes into uh the Department of War and the build-out of our ships and boats is gonna touch each one of our districts. Well, Hearth and Metals happens to be in my district. And they produce a cheaper, more viable steel than anyone else, period. And they are in the process of kind of on sitting on G, waiting on O. And Mister Secretary, you mentioned that the Deputy Secretary's got some sort of announcement that he's gonna make. And my concern is, and we had a very interesting uh hearing yesterday about, with the five families if you will. And the concern is the Department of War has a tendency to take everyone to a specific spot and they kinda go on pause. Well, Hearth and Metals is that small refined company that is, that is very capable, but if the Department of War does not activate, they're gonna be in a very bad spot. And I'm not gonna hold you to, you're gonna give me this answer tonight, or I'm, excuse me, today or tomorrow, but I do not, my concern is that that company that's worked so hard to produce something that would just benefit the United States will be lost because of the inactivity or inaction of the secretaries and the Department of War. Understood?

Hung Cao (Witness)1:41:33 – 1:41:33

Yes, Congressman.

Rep. Luttrell (TX-8)1:41:33 – 1:42:06

OK. Mr. Secretary, a few m- weeks, maybe months ago, you and I had a conversation in my office and one of your primary concerns was the health and well-being specifically focused around suicide in our service. I'm going to allow you to speak on that in front of this committee, in front of the world that's watching on your pathway or this or the lane that you plan on walking to decrease that problem not only that we have inside of our service, but most certainly in our in our veteran community.

Hung Cao (Witness)1:42:08 – 1:43:04

Congressman, thank you so much for this opportunity. This is so dear near and dear to my heart. I come from a community, the EOD community, which has one of the largest suicide rates in our veterans, and it's it's unacceptable. Uh, we we've done what our country asked us to do. And you know now we're paying the prices of that and I think it's the first thing is for leaders to be vulnerable. This morning I released a a m- a message to the fleet about my my issues that I've surf- suffered from a traumatic brain injury from being, you know, in explosions as well as PTSD from having to recover bodies from the bottom of the ocean and as well as uh recovering piece and parts from from uh from other bodies that that I recovered on the battlefield as well. We need to do everything from uh you know explore every single avenue like we discussed in your office to for for PTSD for TBI uh including hyperbarics oxygen therapy, you're talking about a lot of the the other medicinal uh

Rep. McCormick (GA-7)1:43:05 – 1:43:06

Psychedelics yeah.

Hung Cao (Witness)1:43:06 – 1:43:44

Yes sir uh we we need to explore every single thing for our military members, but also what I've I've asked my uh uh service chiefs to do is look at crisis intervention. We need to train this at every level from the petty officer to the NCO level, all the way up to command leadership. Cuz everybody is a first responder. When you're, you're with your sailors and marines, you know when you're working with them in, in that squad, in that platoon, uh in that, that division, you know, you know when they're not right. And so we need for every single sailor and marine to be that first responder says, come along with me, let's, let's, let's take a walk, let's talk about what you're, what's going on. And these are things we're pushing forward sir and we're we're leaning very heavily into it.

Rep. Luttrell (TX-8)1:43:45 – 1:44:12

Thank you, Mr. Secretary, and uh I I have two more things. One, I I I would hate to see the steel that we use on our on our ships and subs come from another country, if we have the capability inside of the United States and I will and uh General, you're not gonna I'm yeah, okay, two things. This is gonna be very hard as a Navy man talking to a Marine, but the way that I understand it, sir, is you are the very first Texas A and M commandant of the Marine Corps. Is that true?

Eric Smith (Witness)1:44:13 – 1:44:14

I believe that is correct, sir.

Rep. Luttrell (TX-8)1:44:14 – 1:44:29

Okay, so I have to There's my Aggie right there waitin', I was waitin' for him to chime in. As a Navy guy, giving a Marine a compliment. Congratulations, sir. And as a Longhorn, giving an Aggie a compliment. Job well done.

Rep. Rogers (AL-3)1:44:29 – 1:44:31

It's a great way to have your time expire.

Eric Smith (Witness)1:44:29 – 1:44:30

Thank you, sir.

Rep. Luttrell (TX-8)1:44:30 – 1:44:31

Chairman, I yield back.

Eric Smith (Witness)1:44:31 – 1:44:33

My daughter's a Longhorn, so.

Rep. Rogers (AL-3)1:44:32 – 1:44:33

That's great. Mister Keating, you're recognized.

Rep. Keating (MA-9)1:44:35 – 1:45:59

Oh, thank you very much. Uh, I'd like to thank uh, our witnesses for their service and for being here today. Um, at this stage of the hearing, I'm gonna get a little granular. uh on issues that maybe a little provincial but uh yeah the whole idea of the procurement process that goes forward there's couple of things that uh we've worked I think as a committee to try and promote uh one of them uh myself in particular is the encouragement of universities and our uh schools of learning, our great resource in this country uh being part of uh the process of procurement and and dealing with issues and uh I've had a uh program since fiscal year nineteen funded, uh it's zero funded now uh out of the University of Massachusetts, but uh it it it's been a win-win situation. Uh they work with the undersea uh Navy college to uh bring students over. They're learning. They're part of it. Many of them are going on to help our defense industry going forward and undersea technology uh and uh the research helps as well as uh getting uh young people involved that are gonna go into uh uh into uh service of our country in these regards so uh is there still a role

Hung Cao (Witness)1:45:57 – 1:45:57

Mm.

Rep. Keating (MA-9)1:45:59 – 1:46:34

for this uh university component uh as the navy is looking at some of these contracts and agreements cause i think it's important to emphasize and i uh i'm obviously concerned about this one that was zero funded but i'm concerned generally too because the universities come in and uh They're not a bottom line uh company or corporation that has to just first uh look at their shareholders first for profits. Uh they're coming in I think with open eyes and they give a different look to things. So uh is that something that uh I think could continue or should continue going forward in the process?

Hung Cao (Witness)1:46:35 – 1:47:25

Congressman, I I think we need to look at every single aspect, I mean uh MIT, Lincoln Labs, all these other industry uh other uh centers of of uh learning are so important to to look at things a different way. I mean as much as I love the Naval Academy I can't have every single officer come from the Naval Academy and and again we need people in the Merchant Marine as well, so US Merchant Marine Academy produces amazing uh Merchant Mariners, but also Massachusetts and Maine Maritime Academies uh as well for for our uh uh civilian uh Merchant Marines as well. So we need we need the whole country to roll up their sleeves and and lean into this, whether it's uh research and development, technology uh innovation and um you know as well as uh filling our officer ranks and our merchant marine ranks as well, sir, and I'll I'll turn over to Admiral Collier, he's got a lot more experience in this as well.

Daryl Caudle (Witness)1:47:27 – 1:48:07

Sir, I would I'm glad you championed this. I think it's important. Uh, it's this full spectrum for us. We need more R and D from universities, of course. We need more STEM degree seeking students. We need more vocational uh private public partnerships. with vocational schools to generate the talent and the skill sets we need. And then quite frankly, I actually leverage additional and unused space today to actually do school, our, my own Navy schools in partnership with universities to leverage their empty classrooms. So it's just across the spectrum of of academia that we actually need to upgone this. So I completely agree with the secretary on that and fully committed to doing more there.

Rep. Keating (MA-9)1:48:07 – 1:49:42

Great, I'll follow up with that, but Uh, I I thought that was the policy and it was been working so well, uh, on so many fronts that that are needs. Uh, I'm almost out of time. Another thing we're working on in Procurement is just trying to get smaller companies involved instead of the larger yeah uh corporations uh and uh I had one in my district in New Bedford and see if I can summarize this quickly but they you know they were told that unmanned warships uh were needed quickly, they ran through a uh competition called the modular attack surface craft competition. And here's the concern with some of the smaller ones, I'll just raise it and you really don't have to answer it, but I just want you to uh hear it again. When they're doing this and they're trying to get capital in these small companies, they're not like the large corporations in doing that, there's changes that occur in the process. So they're going into this uh uh with one prototype uh and then uh after after already selecting the companies, then they're moving to different prototypes, they're changing course, uh and that causes for smaller companies a great difficulty. So I'll just raise that uh as an issue to as a way to try and ameliorate some of those conflicts because what happens with the smaller companies like that uh they can offer so many so much innovation more quickly uh they turn around and they lose their capital, uh they they can't sustain that so I just offer that as a comment, I thank you again Uh, this committee has had a priority on working uh on the procurement issue, I think with s- uh some real success, uh and I thank you for your service. I yield back.

Rep. Rogers (AL-3)1:49:42 – 1:49:44

Mr. Vallon, you're recognized for flying.

Rep. Fallon (TX-4)1:49:44 – 1:51:03

Thank you, Mr. Chairman. Ameliorate, that is a word I'm gonna look up. Very good. Se- uh, Secretary Cowell, uh in your opening remarks you mentioned what your family lost into the hands of communist authoritarians, and it was stirring and it literally gave me goosebumps. Uh, I recall, it it just gave us perspective, I think. on what we're all doing here. And when I was knocking on doors years ago, I met a fellow in a similar circumstance, lost everything, and he was a brand new voter and he grabbed my shoulder and he said, this is the last life raft of liberty we have, we have nowhere else to go. So thank you for sharing that. Secretary Kelly, you also mentioned you've known Rob Goucher, Admiral Goucher, for thirty six years, the starting center for my high school football team. was a fellow named Rob Goucher, which means by math I know I've known him forty one years. So I got you. Uh, looking over the materials to prepare for this hearing, I still noted that uh the the afloat manning requirement were twenty thousand shy and we had missed recruiting goals in the past and we hit them now. What I'd love to do is ask you and Admiral Caudill um what y- you think w- w- how we can help you and what you all are doing to ensure number one, that we continue to meet our recruiting goals.

Hung Cao (Witness)1:51:05 – 1:51:54

Thank you so much for just all your comments. Uh, Congressman, last year alone we we exceeded recruiting by eighty-six hundred new entrants into the Navy above what we did in previous years. This year we're well above above we're gonna meet above eleven thousand more entrants. But we need to pay these guys and this is why we need to pass this bill, so so so that we make sure that we We're we're giving the retention bonus and and and the enlistment bonus as well, and and keep them in, as well as providing safe, clean, comfortable housing for them, uh at the same time, getting them the right training they need. And so that's why I'm asking this body to please pass this bill, because we need it in order to to pay pay our debt to to these young men and women who raised their hands. And and I'll I wanna add to uh would give over to Admiral Cottle for anything he might wanna

Daryl Caudle (Witness)1:51:54 – 1:51:56

Just just real quick, you know, mission uh

Hung Cao (Witness)1:51:59 – 1:52:00

Mm-hmm.

Daryl Caudle (Witness)1:52:00 – 1:52:12

People love what they do in the Navy. You will see record re retention coming from the forward strike group. It's just the opposite of the lay people think. You know, as the secretary said, they're not coming back head held low, they're prideful.

Hung Cao (Witness)1:52:13 – 1:52:13

Mm-hmm.

Daryl Caudle (Witness)1:52:13 – 1:52:34

And so the our mission is what's recruiting and seeing record retention. But if any ask I would give you, when you grow the force the way we have with ten, eleven, twelve thousand additional recruits, my A school C school pipeline can be impeded by infrastructure requirements. So, you know, I need the infrastructure money to improve the barracks at my at my

Rep. Fallon (TX-4)1:52:34 – 1:52:34

Mm-hmm.

Daryl Caudle (Witness)1:52:34 – 1:52:38

school houses to make sure they got a place to sleep without being forward to a room.

Rep. Fallon (TX-4)1:52:35 – 1:53:02

You know. Well, Admiral, I appreciate your comments about the most valuable resource you have as your sailors in the heartbeat of the Navy and I fully agree with that. Uh, General, it was great to see you again. I very much enjoyed meeting with you and your staff, uh, high performers all around. Uh, can you visit with me a little bit and the committee? on being the one branch that has met the recruiting goals every year, why you think you did that, and what best practices you can share with the other services.

Eric Smith (Witness)1:53:03 – 1:54:04

Well, sir, we we have a systematic recruiting system. We have a professional recruiting force which combines with those all those Marines who are assigned to recruiting duty. Um, we hold them accountable for their mission, just like we hold all Marines accountable for their mission. And we reward them when they successfully complete a recruiting tour and we relieve them when they don't meet their mission. I mean, it's a, it is a simple you're required to go recruit this many people. If you fail that mission, we relieve you and move you on. Uh, if you successfully complete it, you're rewarded and you're sent back to your MOS. Um, we have a professional element of our recruiting force. Uh, there are eighty, we call them Eighty-Four Wonderfuls, Eighty-Four T- uh, Twelves. They're, they are full-time recruiters, so we combine full-time recruiters with those who were sent out through the recruiting school. We have a very professionalized recruiting force. We do systematic recruiting. You make so many phone calls, you get so many contacts, so many contacts leads to so many contracts. We have great relationships with our s- with our high schools. We have full and open access to high schools, uh, and our recruiters are just working hard. They're Marines. They don't know how to fail.

Rep. Fallon (TX-4)1:54:05 – 1:54:15

Hurrah. In the time we have left, uh, Mr. Secretary, uh, the pilot retention, can we talk a little bit about that, what we need to do, or or Admiral wanna just jump in there real quick, because I noticed that we're having a little bit of an issue with that as well.

Hung Cao (Witness)1:54:16 – 1:54:17

Again, sorry, this is going to be

Daryl Caudle (Witness)1:54:17 – 1:54:23

the retention bonuses and and reducing the PCS, but I'll turn over to Admiral Collin real faster.

Rep. Fallon (TX-4)1:54:23 – 1:54:23

Thank you.

Daryl Caudle (Witness)1:54:23 – 1:54:43

So it is a problem. That's a that's a critical point of all of our communities at the department head level where we get them to sign and then we got them for, you know, a career. And so the aviation community, we're going full in on that. Part of that's a bit of of an uh uh an artifact of backlog and the experience. So as we improve the experience for aviators, then I think the retention improvements will come.

Rep. Fallon (TX-4)1:54:44 – 1:54:47

Amen. And my time is expired. Thank you very much. Uh, Mr. Chairman, I'll get back.

Hung Cao (Witness)1:54:47 – 1:54:47

Yeah.

Rep. Rogers (AL-3)1:54:47 – 1:54:50

Ms. Ulian, you're recognized for five minutes.

Rep. Houlahan (PA-6)1:54:51 – 1:55:14

Thank you, Mr. Chair. Secretary Cowell, you made some really interesting statements in twenty twenty four in a debate that you had with Senator Kaine. You said, what we need is alpha males and alpha females who are going to rip out their guts, eat them and ask for seconds. Those are young men and women that are going to win wars. Mr. Secretary, did you say that? And do you stand by that?

Hung Cao (Witness)1:55:16 – 1:55:28

Absolutely ma'am, I I did say that and I I stand by it, I I commanded Naval Diving Salvage Training Center, we had one one standard only. Bec- it doesn't matter if you're man, woman, black or white, because the sea is unforgiving and things like war and hardship is gonna kill you the same.

Rep. Houlahan (PA-6)1:55:28 – 1:55:29

Perfect.

Hung Cao (Witness)1:55:29 – 1:55:31

My job is to make sure they live live

Rep. Houlahan (PA-6)1:55:29 – 1:55:31

I'll s- I agree with you.

Hung Cao (Witness)1:55:31 – 1:55:32

Yes ma'am.

Rep. Houlahan (PA-6)1:55:32 – 1:55:56

And I'll stop you there. Mister Secretary, it is really wonderful to hear that you're supportive of everyone serving in the mil- military, uh brown, white, black women, as you mentioned, especially the alpha ones, and I agree with that as well. I was wondering if you might share that support of those kinds of people, women included, with Secretary Hegseth because it seems as though he has a very different perspective on that.

Hung Cao (Witness)1:55:58 – 1:56:04

Congresswoman, Secretary Hegseth and I are in line that as long as you meet the standards, then then you're you're ready to serve.

Rep. Houlahan (PA-6)1:56:04 – 1:56:16

Perfect. And then I I my next question, Mister S- uh Secretary, is since you are supportive and apparently Mr. Hegseth is as well of women in service or at least of of gender neutral standards, I'm hopeful that you might

Hung Cao (Witness)1:56:40 – 1:56:52

Congressman, Uh, if they meet the the standards uh in accordance with the rules and regulations then if they meet the the standards uh in accordance with the rules and regulations, then Again, I'm not I'm not a member of this this house uh so I I I'm I can't support or or or not support

Rep. Houlahan (PA-6)1:56:52 – 1:58:18

I would love it if you would take a look at that because it is not without precedence that people such as you are supportive of ideas that come out of the Congress, and this Warrior Act is something that given your stance on these issues, I would imagine that you would be supportive of and it sounds as though given your uh relationship with Mister Hegseth and your understanding of his belief that he should also be supportive of it as well sometimes unfortunately we actually things in law that are common sense, and I would love it if you'd take a look at the Warrior Act. Similarly, one of the things that's frustrating to me, and it's come up in this conversation quite a few times, is that it's totally true that we need to be the most lethal uh force in the world in order to be successful. But we have, for whatever reason, begun to undermine the fact that bronze is not enough, that we also need to have brains to be able to be successful in the military. And that technology and stem education and all of those kinds of things are just as important as having somebody who's strong enough to carry a person. And one of the things that I'm really frustrated by in these conversations is we have maligned education, we have maligned research, we have maligned all of the things that make it possible for us to not only have lethality in our bronze but also lethality in our brains. Admiral, I'd love it if you'd talk a little bit more the fact that you uh have hit now s- three times during this hearing on the importance of a STEM education.

Daryl Caudle (Witness)1:58:20 – 1:59:03

Well, Congresswoman, I mean, I hold four degrees myself, including a doctorate, so I am a lifelong learner and firmly believe in everything you're saying that everyone should be a lifelong learner. So uh STEM education is extremely important in this. And I'm always in close collaboration with our Naval Academy and the ROTC units and of course the other programs OCS. and making sure that the right the pie chart of STEM coming into the Navy is proper. I had to tension that a bit. You know, as far as, you know, sex-based differences, you know, one of the things that really has opened that up is women uh in submarines and some of the other initiatives who have a preponderance of the STEM degrees. So, you know, that's an area where I think there's been a real strength in that and it's better.

Rep. Houlahan (PA-6)1:59:03 – 1:59:39

A hundred percent, and I would love to continue to emphasize the importance of that and to make sure that we have career paths clear career paths that make people feel as though they're welcome in this, in these services, all of them. My, my father served in the Navy. My grandfather as well. I served in the Air Force. My, my brother in the Army. Uh, but I also wanna make sure that we stop and knock off the nonsense of maligning places like Harvard or MIT we those things have both come up now we work so hard to be not just the best military in the world but also to have the best schools in the world. And it's really, really important that we do that as well. I appreciate your time gentlemen and I yield back.

Rep. Rogers (AL-3)1:59:42 – 1:59:44

Mr. Moylan, you're recognized.

Rep. Moylan (GU)1:59:44 – 2:01:55

Thank you, Mr. Chairman. Um, Mr. Secretary, congratulations. Um, I'm glad we had the opportunity in your previous position, but I understand you're still holding that as well. There's been the S dog uh for our Indopaycom area, and it's a wonderful experience I've had with you. I appreciate the visits that you have gone to Guam and the conversations that you had, making sure Indopaycom is really protected. I'm very proud and I'm very happy that you're selected for the secretary. Thank you so much. Uh, Admiral, I wanna say thanks for mentioning uh the submariners on Guam. I tell you, I had a few conversations with a few of them, young folks too, and some of them even married on different ships, but it's really interesting how excited they are to be in the submarine, because in Guam, once you pull out the dock, you just go out a little drive and you're down deep as fast as possible. It's quite exciting. They tell me all about it. I wouldn't wanna get on that sub. I'm an army guy. But but I'm glad they're there and I appreciate your support in the Indoor Pro-Acom area as well. Uh General, thank thank you Guam has had a great experience with the Marine Corps since World War Two. Uh we're looking forward to the Marines coming on back as we fill uh continue to do the build-up. Uh Camp Ben Bas our first Marine General from Guam, a fine name after that for that camp. And driving down Marine Drive I'm look Marine Corps Drive, I'm looking forward to seeing the Marines occupy that camp as soon as So I thank the Marines and I'm glad we had this and I thank you all for your interest in the most western soil of the United States of America, that being Guam. Thank you so much for that. Uh, secretary, you know, we had the opportunity. I thank you for coming to my office also with uh Assistant Secretary Rogers. We were discussing the housing issue on Guam. As we had this build-up with small island, it's quite difficult to keep up with the demand on housing. So we roughly have three hundred million that's been requested for housing construction. uh in Guam for twenty twenty seven uh and can you discuss what are are your efforts for the your department on taking to reducing the military demands on the housing market in Guam and can provide us some more updates how the department plans to reduce reliance on existing housing stock while accommodating more focus uh stationed in Guam.

Hung Cao (Witness)2:01:56 – 2:03:06

Congressman, thank you so much for your kind words. I mean what amazing country this is. that fifty one years ago when I landed in Guam as a refugee that I came back as a senior defense official Guam and only in America can something like that happen and I think that God uh is kind of laughing the Lord Arjan there are is is l- k- kinda have a has a uh sense of humor on this. Uh so in terms of um housing in Guam we we are looking at the most economical way to to develop there for our military members as well as uh as giving a a little leeway for for the population there I know that we we talked about making sure that people aren't getting gouged which drives up the cost of of uh the housing but I also understand all the problems that happened with uh typhoon Marwar uh that that happened there so we will continue to work together congressman in order to make sure that we're developing Guam uh in in the right in the the most expeditious manner including what we did recently with the uh uh working with the department of transportation for the the guarantee cranes in uh at the port there as well, sir. We're gonna fight for Guam and going gonna fight fight from Guam. And it's that's why Guam is so important to us, sir.

Rep. Moylan (GU)2:03:06 – 2:03:47

Uh, thank you for that. Uh, also, uh, in addition to the housing we have the power situation. Uh, we're we're so small, right, we're uh we're sh- sharing with the Guam Power Authority, but we're we're also talking about the snow, small modular reactors. Uh, but there still has to be a balance since the there's a lot of workforce outside. uh and not all the small nuclear reactors if that does come and by by the way in in law we also put there's a one year note notification before that does come to the island if it is planned and goes forward just uh to make sure your awareness of that uh but how do you plan to work the Guam Power Authority into your plans as we build up the power grid needs?

Hung Cao (Witness)2:03:48 – 2:04:17

Congressman again uh we need power for for the defense of Guam with all the Guam defense systems out there So we will work hand in hand with the the government of Guam in order to ensure that we we stabilize the the the energy there as well as uh secure it. I mean, as you know, uh the um the Chinese have been trying to hack into Guam for for years and and uh so we need to to to secure the IT infrastructure in Guam as well, while while we're securing the water and the power supplies uh for for the island.

Rep. Moylan (GU)2:04:18 – 2:04:23

Thank you, Mr. Secretary. Uh, General, are the Marines coming to Guam? Give us an update.

Eric Smith (Witness)2:04:24 – 2:04:35

Sir, we are. Um, we we're building off Camp Blas, as you know. Uh, we're gonna occupy that in accordance with the DPRI, the Defense Posture Review Initiative. But we are coming to Guam and we are excited about it.

Rep. Moylan (GU)2:04:37 – 2:04:40

Thank you. Looking forward to coming back to Guam and staying on Guam.

Eric Smith (Witness)2:04:40 – 2:04:41

Yes, sir.

Rep. Moylan (GU)2:04:41 – 2:04:43

Thank you. Mister Chair, you're back.

Rep. Rogers (AL-3)2:04:44 – 2:04:45

Mister Golden, you're recognized.

Rep. Golden (ME-2)2:04:46 – 2:09:36

Thank you, Mister Chair. Uh, good morning, gentlemen. I have to confess I was A little bit dismayed to see that the President's budget requests included procurement for only one destroyer down from the usual, two or three under previous administrations. I heard just yesterday from General Dynamics in a public setting that this week demand signal if approved by Congress would trigger layoffs at Bath Ironworks as soon as next year so imagine my surprise when I next receive the US Navy shipbuilding plan which said the department seeks congressional authority to build ships with foreign labor in foreign yards. And sir, I've read the plan. You aren't just proposing sending American workers to learn from foreign builders, which as an aside, I don't think you would wanna go to a yard of American workers and tell them that you think they need to go overseas to learn their craft. On page thirty seven, it says you wanna build halls in foreign yards, and you specifically say you intend to seek authority in this year's defense bill to build entire ships and halls of others overseas. Stop and think about that. In the same year that American shipbuilders might get laid off, the US Navy wants to employ foreign workers. Good luck selling that as anything but a one-for-one trade-off. I can't believe the Navy would even consider it. And it would be an absolute shame if the Congress approved it. Secretary Hegseth was before this committee just a few weeks ago, and we talked a little bit about shipbuilding, so I've already heard a part of the justification, the backlog of ships. I don't blame the Navy for wanting more surface ships in the fleet, but, sir, there are no shortcuts to building a first class combatant ship. I've stood on foreign ships before and compared to ours, I thought it felt like it was made out of plastic. I kid you not. I think you'd have a hard time going to your sailors and asking them how they feel about going into a fight, essentially in a hunk of junk. I would challenge the administration to claim that American ship builders don't build it best. especially the shipbuilders from my state, where everyone knows the phrase, bath built, best built. There's many levers levers the Navy could pull to speed up ship construction, but you know what you absolutely do without, and that's experienced shipbuilders that know how to build it right. Walk the shipyards and talk to the workers and you will get a sense that the work going on there stands upon the shoulders of generations of shipbuilding knowledge and the skill set to build top-notch ships at pace just happen overnight. The country needs to protect this core national security asset, shipbuilders with the knowledge base and skill sets to build our nav- naval fleet. The Navy sees an opportunity to build faster with foreign labor, I see nothing but risk, and given the justifications offered, I just don't see how the juice is worth the squeeze. The backlog is nothing from my in my opinion, but a present day demand signal that incentivizes shipyard investments in both infrastructure and in the American shipbuilder. In the past few years, I have watched Bath Ironworks carry out a recruitment campaign, they've trained young shipbuilders, and they've successfully increased their rate of production year over year coming out of COVID, and they aren't done making progress on that front. But now this proposal would literally pull the rug out from underneath them. And it's not just BIW. This proposal would send work overseas across multiple platforms. This administration has said over and over that it prioritize American manufacturing. How could those goals possibly square with a request to offshore American fleet production? Every hole that gets sent overseas weakens America's ship builders, making it harder for them to maintain the capacity, knowledge, and technical skill necessary to build and maintain the fleet that your sailors are gonna go to war in. This proposal weakens America's industrial base, it would weaken our American supply chains, And most importantly, it puts at risk the benefits of innovation that happen only on deck plates. And I'm not talking about engineers or AI. I'm talking about the type of innovation you get from a ship builder. To send any portion of our ship building overseas would be a complete failure. There's no way I will support that proposal, and I hope that my colleagues in this Congress join me in opposing it. Even better would be for the Navy to withdraw it, rethink it, and come back with a plan to strengthen American shipyards. There's no way that you had much involvement in the drafting of this. It didn't happen in three weeks, but I'm gonna forget, trying to pull it out of my memory, but General Powell, I think, said in his thirteen rules of leadership, when you come into a new command position, don't just go making changes immediately. And I can't quite remember if it's thirty days or ninety days, but I'll go with thirty. After thirty days, sir, you own it.

Hung Cao (Witness)2:09:39 – 2:09:52

Thank you, Congressman. Uh, again, we have eighty ships on contract and fifty-nine in construction right now. And uh I just need for the Bath Island Works if they can again, I would love to add ten destroyers in every year if we could. Could afford it, we can do it, sir.

Rep. Rogers (AL-3)2:09:51 – 2:09:58

You guys can finish this conversation later. The gentleman's time has respired expired and I know you will. Doctor McCormick, you're recognized.

Rep. McCormick (GA-7)2:09:59 – 2:10:53

Thank you, Mr. Chair. Uh, it's great to have you all here. It's near and dear to my heart as a both a Marine Corps and Navy veteran. Uh welcome and congratulations for passing three consecutive audits and and congratulations to your son for becoming a Marine Corps officer I'm really excited about that I'm I'm a little jealous uh Ronnie Jackson just had his uh commissioning the Marine Corps as well as you know and congratulations for having four degrees I'm a little jealous of that too. Um one of the interesting things that came up you you you expressed in your opening remarks uh the greatness of having three Marine Expeditionary Units. pull at any given time to react to all the things that are going around the world. Um, the assistant commandant came here and actually uh testified that we needed, basically in order to sustain those three, R slash muse, uh basically a forty ship amphibious fleet. Um, do you agree with that?

Eric Smith (Witness)2:10:54 – 2:11:01

I do, sir. It's a combination of making what we have more ready and a combination of that combined with buying new.

Rep. McCormick (GA-7)2:11:02 – 2:11:24

OK. Admiral, uh one of the things I saw in your in your forty amphib forty amphib ships, it doesn't really match your plan. I looked at your plan and and uh the last time I saw the Navy's thirty ship, building plan tops out at thirty-five amphib ships and that is in two thousand fifty-five. Uh am I incorrect in any of that uh reading?

Daryl Caudle (Witness)2:11:24 – 2:12:00

Sir, I can tell you, you know, uh I think until r- recent, meaning within the last year, have we come and become aligned on three O. And so the Navy who ha- was committed to thirty-one. And when we, you know, really, you know, realized, you know, I am all about three O, that I needed some space to go understand the fourth generation process, losing the Bahama Shard hurt, all the things that we're doing to improve the readiness before I can land a full number. But if you just do three O R mu, that's nine ships. If you say a four to make one or a five to make one, that lands somewhere between thirty-six ships. and forty-five ships.

Rep. McCormick (GA-7)2:12:01 – 2:12:01

Yeah.

Daryl Caudle (Witness)2:12:01 – 2:12:05

So in initial rough order magnitude forty ships, that's not, that can't be that far off.

Rep. McCormick (GA-7)2:12:05 – 2:13:13

S- so, so when I, I'm a simple marine, I only can get up to twenty cuz I run out of toes and fingers. So your your degrees outmatch my fingers in many ways. Uh, but uh when I turn to the secretary, I consider a friend and and uh I've spent time with, and I say how do we reconcile those numbers when our best ship contract is six months behind and uh-huh well and about a hundred and fifty percent over budget. Uh, and we do have shipping problems here in America, and I I get the the challenge uh where we've fallen behind. I I went to Japan and Korea recently and looked at their ship building, what are they doing differently? How they modernize, how they've they've gotten better at us than us. I mean they they deliver almost every ship under budget and on time. We never do that. And w- and our shipping industry has basically clapped on itself, no offense to the guys who do it, but we're obviously not doing something right. And so I under I applaud you for thinking outside the box. Whatever the answer is, bringing in their abilities, bringing in their technologies, bringing in their their management skills, whatever it is, we need to change business obviously. I'm trying to ask the secretary, how do we reconcile the difference between forty and thirty-five ships, and how do we get back on time? It's not just the way we contract, it's the way we build. How do we reconcile that?

Hung Cao (Witness)2:13:14 – 2:13:52

You're absolutely right, Congressman. Again, I I s- we put out a thirty year ship building plan, but we have to really be honest and say we we need to contract in five, ten, and then change for fifteen. Uh, this is a a a living document. that we need to continually evolve and change to to s- based on what the industry can produce and this is why we need to to look at every single lever every single opportunity to make things better faster through AI through added manufacturing, things will change a a great deal sir and and five ten years it's gonna be it's we're gonna get the industry going and we will crank out these ships including amphibious ships uh uh and uh and destroyers as as we need them sir.

Rep. McCormick (GA-7)2:13:52 – 2:14:29

I like the positive thought, but I I was just looking at the recent fiscal year twenty seven budget. I notice the LH eight LHA eight and nine are both a year behind now uh and we obviously that's exactly what we're talking about right now is an amphibious fleet and and I know the the positivity is there but I'm looking for uh I don't care if we have to build ships overseas or whatever but I wanna bring that technology back I wanna bring that know how back I wanna bring our work ethic back, I wanna bring all the things back to America that made us the leaders in the world originally. What is the specific plan to get American production back on track. Love our ship workers, but something's broke for sure.

Hung Cao (Witness)2:14:30 – 2:14:52

That would be more shipyards uh congressman and and more getting the the the youth to come in we're we're looking at five hundred forty thousand jobs in order to build all these ships not just our our warships but also commercial ships. And that's that's what we need to invigorate and that's what we need to get in there. That's why I'm so excited and again in a few ye- weeks I will be able to come into your office and tell you hey in twenty-four hours we're gonna we're gonna announce this.

Rep. McCormick (GA-7)2:14:52 – 2:16:04

I look forward to that. Right now China's out producing just about two hundred one and has about fifty times more ports. That's a problem. Thank you and with that I yield. Thank you, Mister Chairman, and uh thank you all for being here today, it's good to see you. Um Admiral, when the secretary was here, uh Secretary Hegseth uh here a couple weeks ago asked him about the extension of the uh the USS ford carrier strike group had been extended uh and i asked him which i didn't think was a satisfactory answer that he gave right what did the navy tell him when they were modifying the gift map to extend you know the ford going the to the med and then down to south america and then obviously at the end here doing operations in the in the persian gulf cross the equator multiple times If there's a polywog left on that ship, uh it's gonna surprise me. Um But what what concerns did you raise during that process when they were modifying the gift map? And and what are the ramifications gonna be for being extended out for over over three hundred days?

Daryl Caudle (Witness)2:16:06 – 2:16:51

So, uh, if you uh, if you Google me and extensions, you'll see extensive uh articles out there on my pushback on extending any ship. It has detrimental impacts on our force readiness, on families, on sailors, quality of their life, things that they miss, and uh the wear and tear with and then just the additional cost. Uh but when we need military options for the sea, we have to utilize what we have. We fight with the navy we have. And so we make those those risk apparent to the chairman. He carries those up echelon to the secretary of war. We clearly articulate the impacts of that. And the hard decisions are made. And when it's made, we move out. And then we conduct those operations and you see our sailors rise to that occasion.

Rep. McCormick (GA-7)2:16:51 – 2:17:10

And, and I, uh, look at me, I, I know our sailors and our marines and all our forces, right, are gonna rise, are gonna do what what needs to be done whenever the situation calls for it. I have no doubt about that. But, you know, when you look at the situation, had two other carriers around there, you had an arg and another arg on the way. Uh, really? Was the, did the Ford need to be there?

Daryl Caudle (Witness)2:17:10 – 2:17:13

Absolutely, sir. one hundred percent. Admiral Cooper,

Rep. McCormick (GA-7)2:17:12 – 2:17:13

And why is that? You know,

Daryl Caudle (Witness)2:17:13 – 2:17:14

Admiral Cooper

Rep. McCormick (GA-7)2:17:13 – 2:17:18

why do we need, why did we need more than one carrier group strike group there to come do it?

Daryl Caudle (Witness)2:17:17 – 2:17:17

And I

Rep. McCormick (GA-7)2:17:18 – 2:17:42

If if the, you know, this wasn't the And and to going back to historical times here, right? This wasn't the Japanese during World War Two, this wasn't the Spanish Armada, you know, in the early like sixteenth century, this was a small naval force uh uh uh with the uh Iranians, right? This wasn't a huge military force that we were facing. Why did we need three strike groups in an arg there to carry out this operation.

Daryl Caudle (Witness)2:17:42 – 2:18:20

So the planners at US Central Command and at Fifth Fleet go through detailed threat analysis to understand that the actual access and threats that uh directionality and the things that we can do as a combat force to make sure we have overlapping fires and protection for our forces requires a certain amount of force bef as force elements roll in and out in a make before break fashion. So that rolling amount of force has to be put in place. We don't evacuate the theater of operations before the next one comes in. That scheme of maneuver is delicate, it's balanced, and it's threat-based. And so that's all put out in front of all of us, we all look at it, and we concur with those schemes of maneuver.

Rep. McCormick (GA-7)2:18:21 – 2:18:33

All right, well thank you for that answer, but we I again, uh I don't think we needed it there and I think it was more extended, you could add another carrier-grade there um than was needed. Um general, good to see you again, hope your health is good.

Eric Smith (Witness)2:18:34 – 2:18:35

Yes sir, I'm back to my fighting weight.

Rep. McCormick (GA-7)2:18:36 – 2:19:16

Good, good. Glad to hear it. Um, you know, I'm a gator sailor, very big on the ARG, um, wanna make sure that we, we get to what you need to be, and I know you're kinda like you said you're working towards this three point O, but I didn't really get that that was really, once we get there, that's where we need to be. What is it gonna take beyond that where you, where you're trying to get to right now, to get to where you believe the Marine Corps and, and the ARG needs because we are constantly, again, the COCOMs, They're asking for the carriers, they're asking for the ARC out there, right? And right now we don't really, I think, have enough to to supply what's needed. So what's gonna be needed that you need to ensure that we can answer the call when needed?

Eric Smith (Witness)2:19:17 – 2:19:42

Well, sir, the the Marines have the capability to provide a constant three point zero RME presence. We again, we have the squadrons, the infantry battalions, the artillery batteries. Um, what we're working on in concert with Admiral Caudill and the Navy is, the ability to make our ships more ready, to make what we have more ready. because it's not just about the deployment, it's about the work-up. Uh, cuz as I often say, the first time you land on a pitching rolling deck, shouldn't be at night on your way to a fight.

Rep. McCormick (GA-7)2:19:42 – 2:19:42

Mm-hmm.

Eric Smith (Witness)2:19:42 – 2:20:10

You gotta have a six month work-up or at least most of a six month work-up, followed by a six month deployment. And then you have to have downtime, cuz those sailors and marines, they signed up to deploy, but they also have families and they wanna come home. And so the ability to to man a three point O RG mu presence is really our North Star. And that comes down to how many amphibs can we have that are made ready. And Admiral Caudill is doing everything he can do, along with Fleet Forces command, to increase the readiness of those amphibs to ev-

Rep. Rogers (AL-3)2:20:10 – 2:20:13

Gentlemen's time's expired here and I recognize a gentleman from Wisconsin,

Daryl Caudle (Witness)2:20:12 – 2:20:13

Thank you all.

Rep. Rogers (AL-3)2:20:13 – 2:20:14

Mister Brian Orden.

Rep. Smith (WA-9)2:20:14 – 2:20:40

Thank you, Mister Chairman. Uh, thanks for coming out today. Mick Pond, great to see you back there. Uh, I just wanna address a couple of things. You know, I'm the longest serving enlisted guy to ever get elected to Congress in the history of the country, which means you can't lie to me. I got it, got all your numbers. Um, okay, on the old Facebookosphere, I wanna clear up some stuff. There's rumors going around with people my age that, uh, the the NEXs and PXs are closing on basis. Is that correct? Just say it out loud, man.

Daryl Caudle (Witness)2:20:40 – 2:20:40

No.

Rep. Smith (WA-9)2:20:41 – 2:20:44

OK, I want everyone on Facebook to hear what the admiral just said, that

Daryl Caudle (Witness)2:20:44 – 2:20:46

Anything, we're improving them.

Rep. Smith (WA-9)2:20:46 – 2:21:20

OK, thank you very much. That's really important. We gotta dispel a lot of this stuff. General congratulations on your, uh, passing your audit, but I'm gonna tell you this. You guys are notorious for not asking for stuff. OK? So, you know, we're here to provide everything that our Marines need. And so you gotta ask, and I know it, I know it pains you guys terribly, I love the Marine Corps. Uh, you just gotta ask, so if you have O and M deficits and Marines are buying equipment and all that sort of stuff that is unacceptable and we'll we'll get your Marines everything they need just ask,

Daryl Caudle (Witness)2:21:19 – 2:21:19

Thank you, sir.

Rep. Smith (WA-9)2:21:20 – 2:21:26

you're welcome. Uh, Mr. Secretary, where are you from again? Where were you born?

Hung Cao (Witness)2:21:26 – 2:21:27

I was born in Vietnam, come from.

Rep. Smith (WA-9)2:21:27 – 2:21:30

You were. And when did you learn to speak English?

Hung Cao (Witness)2:21:30 – 2:21:32

At the age of twelve, Congressman.

Rep. Smith (WA-9)2:21:32 – 2:21:37

At the age of twelve. So you came here from Vietnam and you became an American citizen.

Hung Cao (Witness)2:21:37 – 2:21:37

Yes, sir.

Rep. Smith (WA-9)2:21:37 – 2:21:39

And then you retired as a Navy captain.

Hung Cao (Witness)2:21:40 – 2:21:40

Yes, sir.

Rep. Smith (WA-9)2:21:40 – 2:21:43

Did any of that have to do with the fact that you're Vietnamese by birth?

Hung Cao (Witness)2:21:43 – 2:21:44

No, sir, it did not.

Rep. Smith (WA-9)2:21:44 – 2:21:51

It did not. Did did it have anything to do with the fact that you are, could speak two different languages?

Hung Cao (Witness)2:21:51 – 2:21:52

No, sir, it did not.

Rep. Smith (WA-9)2:21:52 – 2:21:55

It didn't? Why why why did you retire as a captain?

Hung Cao (Witness)2:21:56 – 2:22:02

Sorry, I I I I retired at the time because uh after what happened in Afghanistan I just couldn't I I couldn't do anything.

Rep. Smith (WA-9)2:22:01 – 2:24:03

No no no no, but I'm I will answer your question. You retired as an O six because of merit, because you earned that position. And I I do need to make it real clear to some of my colleagues that that is the United States military is the last meritocracy. And it has to remain. We don't care that you were born in Vietnam. We don't care that you're a naturalized citizen, we don't care if you speak two languages, we don't care if you're a man or a woman, if you're black or you're Mex- we don't care. As long as the military maintains that and my navy um looks at people solely through the lens of meritocracy, then you're gonna do great. Um, I do wanna bring up, I'm gonna echo what my friend uh Morgan Littrell said about uh suicide in the military and in the veterans' community. Uh I'm a chairman of a subcommittee on VA. It's economic opportunity and prevention of veteran suicide is one of my uh taskings and I'll be honest, we are failing at it. Uh, the predominant problem that I've had in the past is with the Department of War, um, in the transition assistance program. So, our, a lot of our veterans commit suicide within that first twenty four months after getting out of the military cuz you lose your uniform, your rank, and the joke with the wives is, um, twice the husband half the paycheck, you know. So what I want from you guys, Admiral and General, is I do wanna commi- I'm gonna ask you for a commitment, and from you, Mister Secretary, that you're gonna work with us at the Veterans Affairs Committee. And with Doug Collins, Doug and Pete signed, you know, an a- an amazing uh MOU. And I really need follow-up on this because you're not making just sailors and you're not making Marines, you're making Americans. And you're making strong American citizens. And we wanna look at someone from the time they joined the military. So, in recruitment to the grave. And I, I just, I want a public commitment from you guys that you're gonna continue to work with us and really increase your efforts, Admiral. Will you do that with us?

Hung Cao (Witness)2:24:03 – 2:24:05

Yes, sir, fully committed to that.

Rep. Smith (WA-9)2:24:05 – 2:24:06

Mister Secretary?

Hung Cao (Witness)2:24:06 – 2:24:08

Sir, as a veteran and a retiree, yes, sir.

Rep. Smith (WA-9)2:24:08 – 2:24:09

Okay, General?

Eric Smith (Witness)2:24:10 – 2:24:11

Sir, one hundred percent.

Rep. Smith (WA-9)2:24:12 – 2:24:54

Okay. Um, I will echo some of my Democrat colleagues. as, as many ships as we can build in the United States, we wanna build them. I understand that we have to go outside of our, our lines of communications right now because, uh, we just have lost the capacity. But, um, I firmly believe that our American, uh, men and women, our tradesmen and women, uh, are the best in the world. So as long as you guys are, you're filling a gap that exists right now, but you're also focusing on making sure that we can build up our defense industrial base particularly in the maritime arena, um, I think that we're gonna do the right thing. So, uh, welcome aboard, again, I guess. General, anything you guys need for your Marines, you ask, sir.

Eric Smith (Witness)2:24:55 – 2:24:56

Will do, sir.

Rep. Smith (WA-9)2:24:56 – 2:24:58

And Admiral, take care of my Navy, will you?

Eric Smith (Witness)2:24:58 – 2:24:59

Will go, sir.

Hung Cao (Witness)2:24:58 – 2:24:59

Uh, Cong- Congressman,

Rep. Smith (WA-9)2:24:59 – 2:25:00

Nikkan, take care of the sailors.

Hung Cao (Witness)2:24:59 – 2:25:22

uh, just, if I may, sir, um, just real fast, uh, I know we keep, everybody loves the Marine Corps, Marsha, Marsha, Marsha, but the Navy, the Navy has also, uh, is very close to finishing the working capital fund. We're months ahead. And by next year we uh so we're gonna finish that and then the general fund will be done next year. So the Department of Navy will be the first department in the Department of War to complete a a clean audit, sir.

Rep. Rogers (AL-3)2:25:22 – 2:25:28

Excellent, thank you. I yield. As is the gentlelady from New Hampshire, Miss Goodlander.

Rep. Goodlander (NH-2)2:25:28 – 2:26:28

Thank you, Mister Chairman, thank you to our witnesses for your service to our country and for being here today. Mister Cowell, thank you for that very clear commitment that the Navy will be the first of the departments to pass a clean audit. You testified that part of your mission is to restore trust in the Navy and public trust depends upon a clean audit. So we look forward to the swift delivery on that most basic, most basic requirement that any organization in the state I I represent would hold themselves to. Um, so I w- I wanna ask you along the lines of restoring trust, a really basic question, as I look at at the department's budget and where we could really crack down on waste, fraud and abuse, um, I think a lot about the right to repair. Do you agree, Mister Kyle, that uh the Navy should be able to repair and ma- maintain its own equipment?

Hung Cao (Witness)2:26:29 – 2:26:44

Congressman, absolutely. We we paid for a lot of this RDT and E. I mean, for my car, for example, I I I I don't have the right to repair it, cuz it well, I mean, I You know, I I don't have the intellectual property, but we paid for this RDTNE, so the way I see it, it's our property as well, and we should have the right to repair this, ma'am.

Rep. Goodlander (NH-2)2:26:45 – 2:26:49

So can I count on your support for our Warrior Right to Repair Act in this year's NDAA?

Hung Cao (Witness)2:26:52 – 2:26:55

Is that to repair equip- uh our our repair our equipment?

Rep. Goodlander (NH-2)2:26:55 – 2:27:01

It's to codify the right of our service members to repair and maintain their own equipment.

Hung Cao (Witness)2:27:00 – 2:27:01

Y- yes, ma'am.

Rep. Goodlander (NH-2)2:27:01 – 2:28:38

Thank you. I appreciate that and we really look forward to working with you on this. Um, your predecessor had a, had a clear commitment to this cause and, uh, really look forward to working with you on this. I wanna turn to you, Admiral. You, you testified Thank you for your testimony on our public naval shipyards. You testified that the most important driver to improving shipyard performance is workforce retention, stability, and development. You also testified that this past year we've seen higher than expected attrition, and lower than planned new hires, which led to, as you put it, gaps in the engineering workforce and in critical trade shops. I wanna, I wanna ask you, uh, for your commitment to work with us in this NDAA, uh, to put in place some of the most basic protections that the men and women of our shipyards need right now. We've seen their jobs that are already so difficult be made so much harder, uh by policies that are emanating from OPM and OMB uh way out of the the chain of command that we need to see right now. So I I wou- I would like to ask for your support for provision that we're working to advance in this year's NDA which would do a simple thing. It would prohibit the use of funds uh federal funds for carrying out a hiring freeze, a reduction in force, or delay without cause in hiring at a public shipyard. We secured that on a bipartisan basis last year, um, and wanna ask for your support and commitment to securing that again this year.

Daryl Caudle (Witness)2:28:39 – 2:28:53

Uh, Congresswoman, anything that protects the over thirty-seven thousand shipyard workers that are for public yards you have my full commitment on. They are a national treasure and I'm fully committed to make sure they don't lose their job and make sure they're properly compensated as well.

Rep. Goodlander (NH-2)2:28:53 – 2:28:59

How, how far below, uh, the planned new hires were we this past fiscal year.

Daryl Caudle (Witness)2:28:59 – 2:29:10

I'd have to get you the exact numbers, but you can think of a number like I would say like a thousand kind of number in that order of magnitude. But I'll but I'll take that for the record and get you the exact figure.

Rep. Goodlander (NH-2)2:29:10 – 2:29:37

I appreciate that and would love to be kept closely updated on this. This shouldn't be so difficult. We have patriotic people all across this country in my home state who are eager to serve, and the red tape and the bureaucratic nonsense is harming our readiness um and really setting us back so unnecessarily. So I appreciate your commitment, Mister Cowkin, we c- count on your commitment to work with us on this, on these provisions.

Hung Cao (Witness)2:29:37 – 2:29:37

Absolutely, ma'am.

Rep. Goodlander (NH-2)2:29:38 – 2:29:55

Thank you. I I wanna turn uh finally um to the submarine industrial base. You know, New Hampshire small businesses are critical suppliers to our submarine industrial base and what I've seen uh again and again is that our second and third tier

Hung Cao (Witness)2:30:21 – 2:30:24

We will uh work on that as soon as we can, ma'am.

Rep. Goodlander (NH-2)2:30:21 – 2:30:28

Mm. Okay. Can we expect before the end of of this month?

Hung Cao (Witness)2:30:29 – 2:30:32

Y- if you mean two weeks, I I I'll have to look at it ma'am, I I we're really just

Rep. Rogers (AL-3)2:30:32 – 2:30:35

General, these times expired, you're now recognized gentleman from Virginia, Mister McGuire.

Hung Cao (Witness)2:30:36 – 2:30:48

Thank you, Mister Chairman. Um, I'd like to thank our witnesses for being here with us today. Um, I want to start by recognizing the sailors and marines of the USS uh Gerald R. Ford strike group after a historic

Rep. Rogers (AL-3)2:30:48 – 2:30:50

You need to pull that microphone a little bit closer. Thank you, sir.

Hung Cao (Witness)2:30:50 – 2:32:41

Thank you. Thank you, Mister Chairman. Um I wanna start by recognizing the sailors and marines of the USS Gerald R. Ford strike group. After a historic record set in deployment they're finally almost home to Virginia. Um this was a historic trip and the it wa- they basically were deployed almost a year because we have atrophied in so many ways. And uh the our the CCP for example has more submarines, they have more ships, more airplanes, more tanks than us and which is why this budget is so important. This budget gives our sailors and Marines the resources they need to do the job the nation asked with them without having to stretch the fleet to a breaking point. And uh Secretary Cowell, both the Navy and the Marine Corps met recruiting goals last year, uh and you are on track to do it again this year. What would you say is the driving factors for the recruiting success, and are your quality of life efforts making an impact on retention? So the main thing is the leadership. They know that we have their backs now, and that's what's so important. Look, our our enlisted ranks are are the backbone of this military. This is you you can talk about the Chinese fleet all you all day long, but they don't have what we have, the secret sauces in our enlisted ranks. Uh it's that's that's the the really the what drives our military. You can be an E nine in the Chinese navy and all you can do is sweep the floor. But here are our E threes. our our plane captains on the USS Gerald R. Ford. This is the difference, sir. OK, uh Admiral Caldell, I know there have been many conversations and questions over the past few days regarding the n- news that the Trump class battleship will be nuclear powered, and as you know Virginia has a long history of nuclear shipbuilding. What specific design plans can you share at this point and can speak to how nuclear power would enable uh this system to be successful?

Daryl Caudle (Witness)2:32:42 – 2:33:41

So we walked away from surface nuclear power decades ago, and that was one of the largest mistakes the Navy ever did, and we're bringing it back. We need nuclear-powered surface ships to sustain combat operations with our nuclear-powered aircraft carriers. Imagine what that would have looked like in the Arabian Gulf, if I'd had a nuclear-powered battleship there to give the air and defense and fire's power that it could sustain while I rotate you know ships that roll that need gasoline around it. So the the imperative for this is crucial to develop that level of payload capacity. We intend to, with all we can do, use pull-through technologies, things from that we've worked on with DDGX. It will have the SPI-six radar. It will have the baseline ten Aegis combat system. It will pull through, of course, the A one B four class reactor plan and all the design that goes with that. The only thing inherently new to it will be the actual hull itself. And so most of the fixtures in it and I would say the directed energy and up gunning that will also be new.

Hung Cao (Witness)2:33:42 – 2:33:48

Awesome. And uh for the Commandant General Smith uh talk to me about how important it is to have more amphibious ships.

Eric Smith (Witness)2:33:49 – 2:34:17

Well, sir, as I've said, the the amphibious ready group marine expeditionary unit is the Swiss Army knife of the joint force. It can do a little bit of everything. Uh it it is a combat formation that is deployable globally. It can move hundreds of miles in a day. it can conduct non-combatant evacuation operations, it can conduct strike, it can conduct uh humanitarian assistance, disaster relief. It is, it is the Swiss army knife of the joint force and it is the most, second most called for item in the DOD inventory by the combatant commanders.

Hung Cao (Witness)2:34:18 – 2:34:19

We love the Marine Corps.

Eric Smith (Witness)2:34:19 – 2:34:19

You're right.

Hung Cao (Witness)2:34:19 – 2:34:43

And by the way, Admiral, really appreciate you and the secretary and what we're doing to take care of our Navy and uh our Navy sailors and our Marines and by the way BWXT as you know is in my district, but we also have ATDM, it accelerat- uh advanced training, defense manufacturing, and we talked about that earlier, and we talked about how we have a need to step up our game and how many ships, how important is are places like ATDM?

Daryl Caudle (Witness)2:34:44 – 2:35:09

I just need to rinse, lather and repeat, sir, I need them all over the country. You know, people ask me what they can do to bolster our defense and maritime industrial base. That's the model. And so I need more of that so that we can expand the recruiting palette that the shipyards you know recruit from. Most shipyard workers come within five to ten, fifteen miles. from the shipyard. We need to have a a country-wide recruiting and development, and that's part of that plan that we need to do.

Hung Cao (Witness)2:35:10 – 2:35:30

Well, I agree with the secretary and I agree with my friend, Derek Van Orden here, is that we wanna build all ships and submarines and things in the United States, but we have atrophied for whatever reason. So partner, we have to have partners go there, learn what they're doing, and grow the American defense industrial base. We really appreciate all of your services. Thank you so much. Patty, you're back.

Rep. Rogers (AL-3)2:35:30 – 2:35:34

Gentleman yields back. Chair and I recognize Jen Lee from California. Miss Jacobs.

Rep. Jacobs (CA-51)2:35:35 – 2:36:06

Thank you, Mister Chairman. Um, uh, Secretary Cowell. Um, the think tank CSIS estimates Operation Epic Fury costs roughly nine hundred million dollars a day, about three point seven billion dollars in the first a hundred hours, with ten to sixteen billion in munitions fired in the first four days. Your FY twenty-seven budget requests, eighty-two point six billion for operations and maintenance from this committee. What portion of that is just buying back what we shot in Epic Fury versus funding the Navy's readiness going forward?

Hung Cao (Witness)2:36:06 – 2:36:21

Congressman, thank you for the question. Uh, w- none of this budget was built before Epic Fury, uh, and, and, uh, th- this is why we will require acquire supplemental in order to pay for all the munitions and and the uh operations and maintenance uh that comes with it.

Rep. Jacobs (CA-51)2:36:22 – 2:37:00

Okay, because, you know, with the fleet already twenty thousand sailors short on sea billets, I'm concerned that this three hundred and forty billion dollars is not actually gonna be what you need in terms of buying the ships, the sailors, the magazine depth to sustain what will likely be a sustained CENTCOM presence for years in the Strait of Hormuz. So, can you commit to deliver to this committee, um, the department's current assessment of commercial shipping transit through the Strait under US escort Iranian acquiescence or or neither? along with the Navy's forced generation plan for sustaining the presence required through FY twenty seven?

Hung Cao (Witness)2:37:02 – 2:37:23

Congressman, we will provide whatever information you need. Again, this is still an ongoing operation. Uh, as of yesterday, they're still they're still launching over a hundred uh one-man uh one-way attack drones and more than three dozen three or four dozen cruise missiles at us. So the operations are still going on. Uh, we, you know, even though there's a ceasefire, they're still firing at us, ma'am.

Rep. Jacobs (CA-51)2:37:24 – 2:37:38

Sure, I mean, but the the president said it was over and now you're saying it's ongoing, so you can understand why we as the committee that's trying to figure out what you're actually going to need needs some more information from you all.

Hung Cao (Witness)2:37:37 – 2:37:52

Congressman. Yes, yes ma'am, uh absolutely, but yes, the our operations, our kinetic operations have finished, we're just protecting other people and that's that's what we're doing with that. The the the Iranians are still shooting at at allied uh shipping and and uh and just being belligerent ma'am.

Rep. Jacobs (CA-51)2:37:53 – 2:38:57

OK, well, well we we would like to know what you all in the Navy are going to need to sustain either this US escort presence or this blockade or, you know, whatever we're doing. So please, um, get that to us. Um, General Smith, as you know, I represent San Diego, the largest military community in the country. There are many reports of strain of the strain on our Marine and Navy families across San Diego. Um, we know Marines are trained for accelerated departure. You guys are first out. this is what you train for, but that doesn't make it any easier on the families, and especially with the lack of information on timelines. And, you know, I talked to one family support counselor who described the current situation in San Diego as panic and worry, uh, at levels they had not seen in recent years. And honestly, the family members I talked to, they don't know what support systems are available to them while their family members are deployed. What specific resources family readiness programs, mental health support, chaplain services, et cetera, are currently funded and active for the families of the eleventh MIEU.

Eric Smith (Witness)2:38:59 – 2:39:21

Ma'am, the the eleventh MIEU has family readiness coordinators who are active duty, uh members who support the families who are back home, and then they have a family support network which is comprised of the spouses who are who are gonna keep a phone tree so to speak to keep themselves informed, and then the command has the responsibility to keep those families informed via those uh, via those coordinators.

Rep. Jacobs (CA-51)2:39:21 – 2:39:56

OK, well, whatever is happening i- is not enough, families are not getting what they need, and I'm I'm glad you brought up the family readiness coordinators. Um, I asked Lieutenant General Bowers this at a military personnel subcommittee last month but there's been recent news that the Marine Corps is phasing out its civilian personel personnel and family readiness program these positions are needed now more than ever um these coordinators work with commanders to provide insight on quality of life for Marines and their families relay information to spouses. Can you provide an update to me on these coordinators? Have you reconsidered this decision to phase out these positions?

Eric Smith (Witness)2:39:56 – 2:39:57

Ma'am, I'll have to come back to you on that.

Rep. Jacobs (CA-51)2:39:57 – 2:40:25

OK, well, I really hope that you do because we cannot make this responsibility a collateral duty for our Marines. We will undermine both missions. Our our families need to get this information. They need to get this so that our Marines can do their jobs. Um, and you know, my my community is paying the front of this right now, and it is really, really hard on our community and on our families. So I hope that you'll do everything you can to make sure they're getting the support that they need. Mister Chairman, I yield back.

Rep. Rogers (AL-3)2:40:26 – 2:40:30

General, I yield back. Chair, and I recognize the gentleman from Indiana, Mister Mesmer.

Rep. Messmer (IN-8)2:40:30 – 2:40:59

Uh, thank you, Mister Chairman, and thank you for our witnesses for being here today. Secretary Cowell, the U. S. Navy's twenty twenty six six ship building plan says dis- distributed ship building is about ten percent today, and the goal is to get to fifty percent. Since I've been in Congress, I've advocated for a distributed model. to leverage this industrial capacity in the Midwest and in the Ohio and Mississippi River valleys. Uh, what is gonna be the actual metric you will use to measure that fifty percent goal? Is it dollars, tonnage, modules, and when should we expect to see some real movement in that?

Hung Cao (Witness)2:41:00 – 2:41:14

Congressman, uh, uh, um, Congressman, I I would love for us to build ships along the Mississippi River River and modules, float it down and put it together down in the uh the Gulf of America. Uh, I will defer to the secretary uh, uh, uh, for the metrics that you need.

Daryl Caudle (Witness)2:41:16 – 2:41:38

And Congressman, you know, I think all those metrics have to be measured. Cost performance indices have to be looked at, but I think the best one is the module count. And it's how we distribute those modules to different uh uh pr- uh manufacturers to be able to put that together. The yards today keep records on that and graphics on that and metrics on that. And to me that's the best uh way that we'll actually measure that modularity approach.

Rep. Messmer (IN-8)2:41:38 – 2:42:01

OK, if we're gonna get to fifty percent of distributed work, uh how are we going to incentivize the primes to give up work share that they has historically have done in-house or inside to keep uh their legacy supplier base uh intact. How are we gonna incentivize it? You gonna mandate it? I mean, how are we gonna get from where we are today to more modules?

Daryl Caudle (Witness)2:42:01 – 2:42:35

Well, you know, that's only come through collaboration and partnerships, contractual strategies that incentivize. Uh, talking about how they, you know, we actually improve refacilitation with additional partners to actually get into the game. I think there's a concern that they can't deliver and they'll become the critical path because their inability to deliver the module so we need to like prototype that and make sure that these additional manufacturers can do that build confidence. And then when when the actual demand signal gets there and then and the prime yards realize they're actually making more money by this approach, I think it'll solve itself.

Rep. Messmer (IN-8)2:42:35 – 2:42:58

OK. Very good. Um. Mr. Secretary, uh your shipbuilding plan uh says the department accepted uh proprietary locked in and undervalued its IP rights in ways that degraded organic maintenance uh is part of that reason is that part of the reason this uh Navy still struggles to sustain the legacy uh uh spy one radar systems

Hung Cao (Witness)2:43:00 – 2:43:32

Congressman, uh again the spy one a lot of the pieces and parts are no longer uh construction but again I you you're right we need to have the right to repair we need to be able to go get in there Our our sailors are so just so talented and they they can fix anything. I've seen this with my own eyes in in combat where if something goes down, they're they're working all day and all night to get these things up and going, and it's just very difficult to get a contractor out there in the middle while you're getting shot out at the in the straight to home moves. So, uh, yes, sir, this is why we need to make sure that we have,

Rep. Messmer (IN-8)2:43:31 – 2:43:35

That's why white white repair is very critical, thank you.

Hung Cao (Witness)2:43:32 – 2:43:34

right, yes, sir.

Rep. Messmer (IN-8)2:43:35 – 2:43:48

Uh, Admiral Cottle is the, uh, USS Zumwalt still on track to conduct the first afloat a conventional prop strike test in twenty twenty seven and what's your realistic time line time line for that weapon system to reach initial operation capability.

Daryl Caudle (Witness)2:43:48 – 2:43:59

Sir, I think it is on track to do that test, and I think it's IOC for that will be uh probably in the in the late part of this decade before I would claim that it's fully ready and operational.

Rep. Messmer (IN-8)2:43:59 – 2:44:16

OK. Uh, reporting indicates the Navy is considering replacing the spy three uh radar with a spy six. Will this shift? create additional schedule or uh cost risk for CPS fielding and delay the Navy's plan uh to bring the full Zumwalt class online with the hypersonic capability.

Daryl Caudle (Witness)2:44:18 – 2:44:25

Not according to our plan. And so, you know, we're working hard to make sure that that stays out of the critical path for the delivery of Zumwalt's capability.

Rep. Messmer (IN-8)2:44:25 – 2:44:37

K. Uh, with only three ships in this class, can the Navy realistically meet the end-of-pay count present requirements for the uh for this weapon system or is the force simply too small to provide persistent operational impact.

Daryl Caudle (Witness)2:44:38 – 2:44:47

So we're looking at crewing models for that to make sure that we're doing that right. You can see that it's a not much a natural fit to what we did with SSGNs, where we had a blue and gold crew for that.

Rep. Messmer (IN-8)2:44:47 – 2:44:47

Mm-hmm.

Daryl Caudle (Witness)2:44:47 – 2:44:58

So I'm looking at different models to actually maximize our operational availability of a three-ship class to actually keep one on station most of the time, and then rotate changes of command in theater.

Rep. Messmer (IN-8)2:44:58 – 2:45:19

OK, thank you. Uh, S- uh, Secretary Cowell, the Navy has clearly uh prioritized uh low-cost at-scale hypersonic systems uh with a one point six billion dollar budget request to procure four four thousand one hundred fifty seven uh MACE missiles. Can you highlight how multi-year procurement acquisitions have made this purchase possible and and how how we we could be applied to other munitions?

Hung Cao (Witness)2:45:18 – 2:45:32

Congressman, multi- you you guys allowing us to do multi-year uh procurement has really opened up the the aperture for industry to actually invest into their their uh their development and as well as give them the stable opportunity.

Rep. Rogers (AL-3)2:45:32 – 2:45:35

Gentleman's time has expired here and I recognize the young lady from Maryland, Miss Elfrith.

Rep. Elfreth (MD-3)2:45:37 – 2:46:07

Thank you, Mr. Thank you, Mr. Secretary. Um, I think you're hearing the bipartisan nature. I don't think I've been in a committee hearing that is this bipartisan, especially on the shipbuilding front. I'd like to remind everybody that I represent Coast Guard here in Baltimore, not not yours, but they help you on occasion, hundred and thirty year uh yard that uh sometimes has three generations of workers who have been uh supporting this work. And as we think about easy ecosystems to tap into to meet this demand, I'd like to have that conversation, Mister Secretary, if you'd be willing to have it in the next few weeks about

Hung Cao (Witness)2:46:08 – 2:46:12

Yes ma'am, I think in a few weeks we will be talking uh independently about some of these things.

Rep. Elfreth (MD-3)2:46:12 – 2:46:44

Perfect. Another bipartisan uh issue you're hearing is this commitment to actually getting to our goal with amphibs. And I know that the the budget right now has six point two billion for submarines, seven point two for nuclear ship builder pro- productivity, six point seven for surface ships combined in terms of the industrial base uh investments, but I'm I'm struggling to find our industrial base investments for amphibs. So where in the budget, uh, Mister Secretary or Admiral, is the Navy specifically investing to protect amphibious shipbuilding capacity at Ingalls from being displaced from competing interests?

Daryl Caudle (Witness)2:46:46 – 2:46:59

Well, I I think that's all part of the broader MIB money, so I don't know that that Ingalls called out that it's not being part of that. I can get you the detail of what percentage Ingalls itself is getting of that, but they're certainly part of that. They're crucial to this, man.

Rep. Elfreth (MD-3)2:46:58 – 2:47:04

OK. I'd appreciate just that, I think that level of detail will help assuage some of the concern on on on both sides

Daryl Caudle (Witness)2:47:02 – 2:47:02

OK.

Rep. Elfreth (MD-3)2:47:04 – 2:49:27

of the aisle. Um, Mister S- Secretary, I wanna congratulate your family in advance on your son being commissioned next week. I wish I could be there. Votes have been called uh on Friday. I represent the United States Naval Academy uh o- on the board as well as a few other members of this committee. Um, and I'm sure I know, thank you for being there. The superintendent told me uh you spent a lot of time there. You understand obviously how incredibly important it is to the nation, but also Uh, it's suffering from a vulnerability that a lot of, by nature of marine and Navy bases, being close to water is, is suffering from a real challenge which is flooding. Um, we are fighting right now, I'm gonna leave to try to get some, some extra funding for the Naval Academy, eighty-six million it needs just to be able to keep classes running on time. Um, what's happening though is, as I'm sure you know, the urgency of flooding, we don't need to argue about the cause that's happening, is displacing some other really infrastructure needs across our our navy and marine bases, including the Naval Academy. This is just the reality of the situation. So we were making, you know, good, decent progress on it so far. I was a little surprised to see that the fiscal year twenty seven budget reduces domestic stormwater compliance funding by approximately one third from where we were in last fiscal year. And again, the seas are gonna keep rising. They're going these projects are gonna push out other important infrastructure priorities because we have to address them now. And I just wanna flag for everybody at this table that I I would love to see a more ambitious uh approach to protecting our bases from from nuisance flooding, sunny day flooding, you're gonna see at the Naval Academy. I I think we need to be a little more aggressive and concerted when it comes to flooding. I do wanna move on with my time um to an opportunity, that was the challenge and opportunity, switching gears entirely, uh Pax River in Maryland um has the largest anechoic chamber in the country, we're very proud of it, I wanna thank you all for your investments in it. over the years. You probably don't know it's so popular it has a years-long backlog for testing. Um, I think this is the moment when we're thinking about our capabilities, especially with our adversaries, you know, catching up, that we should think about a second anechoic chamber just to relieve some of the pressure of that testing. I would love to invite you all to come down to Pax River. I know Congressman Hoyer has been, this has been his life's work, to come down and see that anechoic chamber. Can I have a a s-, you know, time is of the essence, I I understand you're busy. I would love to to show you that and try to figure out a way to to get that second anechoic chamber built for for our warfighters.

Hung Cao (Witness)2:49:29 – 2:49:30

Yes, ma'am, we'll we'll we'll get down there.

Daryl Caudle (Witness)2:49:30 – 2:49:32

You definitely have my commitment to come, uh,

Rep. Elfreth (MD-3)2:49:32 – 2:49:32

Okay.

Daryl Caudle (Witness)2:49:32 – 2:49:36

you know, if I'm if that's in the critical path of holding back things, when we need another one, I'll certainly look at it.

Rep. Elfreth (MD-3)2:49:36 – 2:50:19

Okay, I I really appreciate it. I think there's a way to get this privately and and and publicly funded and and get a the best deal for our warfighters. Um, I have one more question that I'm just gonna off the cuff this because we've been talking about partnering with our allies like Finland and and Korea to meet the moment that we is required of all of us to get this ship building kick-started again in this country if you were sitting on our side of the table though I heard think you heard some skepticism and some intrigue how do we get you to to tie your hands that you're actually gonna bring those jobs back to the States, we're gonna go overseas get that you know training but we need to bring that capability back so we can expand our own industrial base. How would you tie your own hands?

Hung Cao (Witness)2:50:20 – 2:50:40

Ma'am, again, we're we're Americans and we need to build things in America as much as possible, but right now even at uh the ATS, the uh the auxiliary tug salvage, it's been on we we've had a need for this since two thousand sixteen. It's still not built yet. I mean, that's a salvage ship. I mean, it's a tugboat, really. A large tugboat. And that's why we need to to to look at every single aspect.

Rep. Rogers (AL-3)2:50:40 – 2:50:44

Young lady's time's expired here. Now recognize young lady from Ca- uh South Carolina, Miss Mace.

Rep. Mace (SC-1)2:50:45 – 2:51:35

Thank you, Mister Chairman, and thank you to our witnesses for being here today. South Carolina's low country is home to critical marine and naval assets. Joint base Charleston hosts essential naval naval tenant commands, including the Naval Nuclear Power Training Command and training unit Charleston in the Naval Information Warfare Center Atlantic. We've been making Marines at Paris Island since nineteen fifteen, and just up the road at the Marine Corps Air Station Buford, host and trains active duty F thirty-five and F A eighteen Hornet squadrons. When we hear them flying overhead, we say it's a sound of freedom in South Carolina. Our community is incredibly supportive of our servicemen and servicewomen and proud to play such an important role in our national defense, and there is still room to grow. So my first question today is for General Smith. As part of the Barracks twenty thirty initiatives, what improvements can we see to recruit Barracks at Parris Island?

Eric Smith (Witness)2:51:37 – 2:51:45

Ma'am, that is one of my highest priorities, is getting those recruit Barracks up to snuff, cuz frankly, They're not. We still have to maintain open squad base. That's who we are.

Rep. Mace (SC-1)2:51:45 – 2:51:45

Mm-hmm.

Eric Smith (Witness)2:51:45 – 2:51:51

That's how we make Marines. But we have to improve the quality of those barracks because they are getting ancient.

Rep. Mace (SC-1)2:51:51 – 2:51:52

Are we making progress on it?

Eric Smith (Witness)2:51:52 – 2:51:55

We are, ma'am, but we're never making fast enough progress.

Rep. Mace (SC-1)2:51:53 – 2:51:53

Mm-hmm.

Eric Smith (Witness)2:51:55 – 2:51:58

As you know, the workforce in the in the coastal Carolinas is really the challenge.

Rep. Mace (SC-1)2:51:59 – 2:51:59

Mm-hmm.

Eric Smith (Witness)2:51:59 – 2:52:09

It's about making sure that they can be guaranteed steady, predictable work for years to come so they don't go to work for the auto industry or go to work somewhere else cuz once you lose that workforce you don't get away.

Rep. Mace (SC-1)2:52:09 – 2:52:12

And any idea like timeline you think of how long this will take?

Eric Smith (Witness)2:52:12 – 2:52:14

Ma'am, it's gonna be multiple years.

Rep. Mace (SC-1)2:52:13 – 2:52:21

Mm-hmm. Um, and General Smith, can you speak to the importance of funding the completion costs of new aircraft maintenance hangars at MCAS Buford?

Eric Smith (Witness)2:52:21 – 2:52:24

Oh, yes, ma'am. Marine Corps Air Station Buford is is our hub.

Rep. Mace (SC-1)2:52:24 – 2:52:24

Mm-hmm.

Eric Smith (Witness)2:52:24 – 2:52:28

Those those maintenance hangars are absolutely required for our F- thirty-fives.

Rep. Mace (SC-1)2:52:29 – 2:52:30

Do you have enough funding for them?

Eric Smith (Witness)2:52:30 – 2:52:32

We do, ma'am. We can always use more,

Daryl Caudle (Witness)2:52:31 – 2:52:31

Mm.

Eric Smith (Witness)2:52:32 – 2:52:44

but we do have enough funding right now to make those maintenance hangars a reality. But again, it comes down to who can build those maintenance hangars. on what schedule can they build them, cuz those maintenance hangers, you know, otherwise you

Rep. Mace (SC-1)2:52:44 – 2:52:46

Are you struggling with finding the right

Eric Smith (Witness)2:52:46 – 2:52:50

Finding the right uh employees and right contractors to do that work,

Rep. Mace (SC-1)2:52:47 – 2:52:49

contractors? Mm-hmm.

Eric Smith (Witness)2:52:50 – 2:52:52

cuz those F thirty-fives, if they're sitting out in the sun,

Rep. Mace (SC-1)2:52:52 – 2:52:53

Mm.

Eric Smith (Witness)2:52:53 – 2:52:57

they're degrading. They need to be inside of a maintenance hanger to be able to do it.

Rep. Mace (SC-1)2:52:56 – 2:52:57

Or the rain, right.

Eric Smith (Witness)2:52:57 – 2:52:59

Yes ma'am, or in the rain.

Rep. Mace (SC-1)2:52:58 – 2:52:58

Right.

Eric Smith (Witness)2:52:59 – 2:52:59

So

Rep. Mace (SC-1)2:52:59 – 2:53:16

Um, okay, in fiscal year twenty-six Congress allocated the first tranche of funding for the nuclear power training facility simulation expansion. at Joint Base Charleston, so Admiral Kaudel, um can you speak to the status of this and the impact this will have on readiness and personnel and the personnel pipeline?

Daryl Caudle (Witness)2:53:17 – 2:53:20

I can't give you where it is on the timeline, so I can take that for the record,

Rep. Mace (SC-1)2:53:19 – 2:53:19

Mm.

Daryl Caudle (Witness)2:53:20 – 2:53:22

but I can certainly tell you how vital it is.

Rep. Mace (SC-1)2:53:22 – 2:53:22

Mm-hmm.

Daryl Caudle (Witness)2:53:22 – 2:53:37

I mean it's crucial to generating our nuclear propulsion students and uh it's critical path for us building our submarines and our car- aircraft carriers. So it's much appreciated and it's inherent to the nuclear power pipeline training. where that project is, I can get you the data.

Rep. Mace (SC-1)2:53:37 – 2:54:04

They're very excited about it uh down there. So over the last uh several years under the DHA model, we've seen Beaufort Naval Hospital transition from an inpatient treatment facility to an ambulatory care center. This has resulted in many recruits and Marines being referred out to the into the community potentially leading to delays in care and a strain on the community health system um General Smith how has this service change impacted, how has it impacted the timely treatment of recruits at Paris Island and Marines at MCAS Beaufort?

Eric Smith (Witness)2:54:04 – 2:54:27

Well ma'am anytime and especially in recruit training anytime you have to send a recruit off of the depot to get care, you're you're exceeding or you're increasing the time they're spending away from training and you're increasing the time it takes to build and make a marine. So we obviously are in favor of having things onboarded onto our bases, but we also recognize that there's a limited number of of physicians

Daryl Caudle (Witness)2:54:27 – 2:54:27

Mm-hmm.

Eric Smith (Witness)2:54:27 – 2:54:34

and nurses in the Naval uh Medical Corps and we're struggling mightily to make sure we recruit enough of them and retain them frankly.

Rep. Mace (SC-1)2:54:34 – 2:54:45

Mm-hmm. And then Acting Secretary Chow, uh given the need for the timely access to care for our recruits and Marines and the needs of the service what do you believe the future of Beaufort Naval Hospital should or will look like?

Hung Cao (Witness)2:54:47 – 2:54:54

Congressman uh again down in um Paris Island my my dear friend uh uh Brigadier General Williamson has done a

Rep. Mace (SC-1)2:54:54 – 2:54:54

Mm.

Hung Cao (Witness)2:54:54 – 2:55:17

great deal to to make sure our recruits go down there uh uh get get the proper medical care And going back to also housing, it's not just about the the barracks for our sailor uh our Marines, but also the instructors uh they they we can't have them living you know an hour out uh where where they can't afford it where you know and drive in every day cuz they're they're really on call twenty-four hours a day and that's what General Williamson's done so har- uh you know he's worked so hard to

Eric Smith (Witness)2:55:16 – 2:55:16

Hmm.

Hung Cao (Witness)2:55:18 – 2:55:26

to partner with the uh privatized um uh housing um uh partners in order to to uh provide good uh housing

Eric Smith (Witness)2:55:21 – 2:55:21

Mm-hmm.

Rep. Mace (SC-1)2:55:27 – 2:55:35

We are the fastest growing state in the country, and therefore the cost of housing is risen exponentially over the years. So thank you gentlemen for your testimony today.

Hung Cao (Witness)2:55:33 – 2:55:34

Yes, ma'am.

Rep. Mace (SC-1)2:55:36 – 2:55:36

And I yield back.

Rep. Rogers (AL-3)2:55:37 – 2:55:41

Jane Littler yields back. You're now recognized gentleman from Virginia, Mister Binderman.

Rep. Vindman (VA-7)2:55:41 – 2:56:09

Thank you, Chairman. Thank you to our witnesses here. First, let me start by saying um General Smith, um I fully endorse uh MEU um U three point O and the um uh force generating capabilities that come out of Quantico to support that concept, a base that I'm uh privileged and proud to represent uh thousands of Marines and Marine families so um it's a real gem, and I hope we continue to invest in that facility.

Eric Smith (Witness)2:56:09 – 2:56:11

Hey, it is a crossroads of the course, sir, as you know.

Rep. Vindman (VA-7)2:56:11 – 2:56:12

Yes sir.

Eric Smith (Witness)2:56:12 – 2:56:13

It's our home to our education system.

Rep. Vindman (VA-7)2:56:14 – 2:56:23

S- um just switching gears now, I wanna talk a little bit about uh the Navy's navigation plan twenty twenty-two which defines distributed maritime operations as

Daryl Caudle (Witness)2:56:38 – 2:56:45

No, it remains operative, you know, it's the it's the Navy's way to say expand and maneuver this part of the joint war fighting concept.

Rep. Vindman (VA-7)2:56:45 – 2:56:45

Thank you.

Daryl Caudle (Witness)2:56:45 – 2:56:46

It underwrites the way we do business.

Rep. Vindman (VA-7)2:56:47 – 2:57:09

Thank you. So the twenty twenty six sh- twenty twenty six shipbuilding plan describes the trump class battleship as a forward command and control platform leading a surface action group does concentrating command authority offensive fires nuclear reactor into a single thirty five thousand ton hull advance dmo's core principle of denying adversaries high value targets mr secretary

Hung Cao (Witness)2:57:11 – 2:57:22

Congressman the nuclear battleship would basically be able to bring firepower very quickly to a place I mean we were able to move the forward carrier strike From the Ford, went from Venezuela to the Mediterranean flight to the

Rep. Vindman (VA-7)2:57:21 – 2:58:19

I I got it, but you're concentrating all of that into one hull, at uh one one massive hull. And so I'm a former army guy, I'm not an expert in naval warfare, uh but I'm gonna quote uh retired Admiral uh James Stavridis, former NATO Supreme Allied Commander, who wrote in Bloomberg about the proposed battleship, like " Given today's drone swarms, stealthy submarines, hypersonic missiles, advanced torpedoes, offensive cyber weapons, Putting lots of eggs in a handful of baskets doesn't make sense. China can field dozens of DF-twenty-six ballistic missiles for under uh uh a billion dollars that uh these are really about twenty million dollars per missile. A single trump class battleship is estimated to cost seventeen billion. What is the department's assessment of that cost exchange ratio, and has any independent war game concluded that a vessel could costing one thousand times more than the missile designed to sink it represents a sound investment.

Hung Cao (Witness)2:58:22 – 2:58:33

Congressman, we talk about these hypersonics and all the missiles that can sink it, but the ship is going over one nautical mile a minute. There's no hypersonic that can change course that quickly, and this is why we need this, a large combat,

Rep. Vindman (VA-7)2:58:33 – 2:58:33

Have there been

Hung Cao (Witness)2:58:33 – 2:58:35

we we've had this requirement for years.

Rep. Vindman (VA-7)2:58:34 – 2:58:36

have there been studies that have determined that?

Hung Cao (Witness)2:58:36 – 2:58:40

There's, yes sir, we we've had requirements uh again since it was an op-nav.

Rep. Vindman (VA-7)2:58:37 – 2:59:03

OK. In that case, I would love to see that because I I and I'm sure others are skeptical of making a mass investment. in a system that is literally uh one thousand times more more expensive than the missile is designed to to sink it. So I would love to see that work being done. Now the survivability here rests on lasers, rail guns and interceptors that don't exist yet. Is that correct?

Hung Cao (Witness)2:59:04 – 2:59:10

Consumers, it's still the ship as it is right now can defend itself. I mean, it's got two hundred VLS cells, everything from

Rep. Vindman (VA-7)2:59:09 – 2:59:15

Do we have rail guns? Do we have rail guns that are actually functional right now? lasers and other intercepts.

Hung Cao (Witness)2:59:15 – 2:59:16

That's for future accomplishment.

Rep. Vindman (VA-7)2:59:16 – 2:59:17

That's future.

Hung Cao (Witness)2:59:16 – 2:59:23

Right now the ship as it is has has two hundred VLS cells that goes from everything ESSM block two to SM six and SM three.

Rep. Vindman (VA-7)2:59:20 – 2:59:39

Let me ask you a question. Since since we're talking about the present, um the president has demand delivery by twenty twenty eight. The current plan shows an order placed in t- twenty thirty six. Are you committing to deliver the battleship by twenty twenty eight or what is the delivery time frame here?

Daryl Caudle (Witness)2:59:41 – 3:00:15

Sir, I think that it's realistic that that's a mid-twenty-thirty delivery when we since we've made it nuclear. And yes, there are rail guns in existence. That's a it's a linear motor. There's no physics complexity there. And to scale that on the battleship is long overdue. I can send a five a fifty pound projectile five hundred miles from it at multiple repetitive rates. The asymmetric capability of that battleship is unmatched. And if I don't protect units, nothing across the joint force works, including B-twenty-one or anything else. So counter-targeting is essential to all survivability of all elements of the joint force.

Rep. Vindman (VA-7)3:00:15 – 3:00:45

So, this is, this is my concern, Admiral and Secretary, is that this is uh a a um a aesthetics or a uh a project for the president that does not meet the current threat environment that we've seen in the Black Sea and repeatedly. And I will do, I'll give you one pitch, is that if you're gonna develop these capabilities come see what's available in Dahlgren, because that is where a tremendous amount of the Navy's R and D, and so these systems are gonna come in place,

Rep. Rogers (AL-3)3:00:43 – 3:00:45

How much time has expired?

Rep. Vindman (VA-7)3:00:45 – 3:00:47

it's gonna come from Dahlgren. Thank you.

Rep. Rogers (AL-3)3:00:48 – 3:00:50

Mister Bacon, you're recognized.

Rep. Bacon (NE-2)3:00:52 – 3:01:06

Thank you. I appreciate all three of you being here. I was thinking those two out there were gonna go ahead of me, but I'm ready. Admiral Cottle, could you tell us a little about the USS Ford deployment? I understand it was out for ten or eleven months. Uh, could you just take a little time to brag on the crew and help

Daryl Caudle (Witness)3:01:06 – 3:01:10

Sir, thank you for that. You know, it is an incredible record-breaking deployment.

Rep. Rogers (AL-3)3:01:07 – 3:01:08

Yeah.

Daryl Caudle (Witness)3:01:10 – 3:01:44

Hasn't been that lo- won that long since the Vietnam War. That's a backhanded compliment to the Navy. On one side, I wish I had more capacity to flew additional strike groups into theater, but on the other hand, the durability and the way we construct our ships actually shows what can be done with that new class. World record sortie generation rate on that on that uh that class uh aircraft carrier. Started out of course down in South America, with absolute resolve in Southern Spear, sorted immediately into the Mediterranean and picked up right into Epic Fury, did five Suez uh uh canal transits,

Rep. Bacon (NE-2)3:01:44 – 3:01:44

Wow.

Daryl Caudle (Witness)3:01:44 – 3:02:02

had a major fire on board and sustained operations three day afterwards, and uh and it's just uh you know, kick ass and took names every single day. So we're gonna give our heroes welcome back on Saturday and uh it's just an extraordinary ship, extraordinary crew, an extraordinary strike group and the sailors I could not be more proud of.

Rep. Bacon (NE-2)3:02:03 – 3:02:13

Could you say, l explain a little bit about how you resupply, cuz there was some, I believe, misinformation on some of the food and things like that, but if you could set the record straight on how you'd resupply, I'd be grateful.

Daryl Caudle (Witness)3:02:13 – 3:02:32

We monitor class one food on our ships and our strike groups, um, you know, every single day. I get a report on it every day. The lowest I've seen is four days of the cyclic menu. That means they're in their normal menu, serving what they're supposed to serve, with four days still remaining. That's the lowest. We try to keep it above in the teens.

Rep. Rogers (AL-3)3:02:32 – 3:02:32

Mm-hmm.

Daryl Caudle (Witness)3:02:32 – 3:02:55

And we're doing that from Diego Garcia and of course in the Mediterranean ports from the Mediterranean. And so uh those those things are continuing to roll. It's offensive to me that people put out that our culinary specialists serve food that's not nutritious, that doesn't look appetizing, and it's not world class to the way we do culinary arts on board our ships. And if anyone's ever served on a Navy ship, knows that it's world class.

Rep. Bacon (NE-2)3:02:55 – 3:02:55

Well I I

Daryl Caudle (Witness)3:02:55 – 3:02:57

So that's completely fake news.

Rep. Bacon (NE-2)3:02:56 – 3:03:48

I did one tour in ninety six. in the Persian Gulf. And I knew I had to work out cuz there was good food on there. Had to find a place to workout on the, on the where I couldn't. But I just want to take a moment to praise the men and women on the USS Ford, and all the folks that, you know, the battle staff that, our company that. And I want to praise the families too. You know, they didn't expect a ten month or eleven month deployment. They expected probably six months and. And so we appreciate the service and sacrifice. I got a follow-on question. dealing with the Takamo. I appreciate the mission of the Takamo. I'm from off at Air Force Base, command of the base. I used to fly on the looking glass mission when I was a one star. I understand that this mission is going to a C-one-thirty and the Air Force is pick up this mission. Could you talk a little bit about whether it's the secretary or the admiral? How are you gonna do this transition to the Air Force? Do we have a plan yet?

Daryl Caudle (Witness)3:03:49 – 3:03:55

Well, you know, we can share the answer here. I'll kick off. But, you know, our E-sixB Mercury is aging out. seven O seven

Rep. Bacon (NE-2)3:03:55 – 3:03:56

mmm

Daryl Caudle (Witness)3:03:56 – 3:04:19

you know it's it's uh it's been uh a a challenge to keep it maintained a depot and we've we've you know run the wings off of that so as we bring in the E one thirty J as a program of record for that we will transition the Takamo portion of that mission command over to that airframe you know the air force still has the Abingcat mission that's what you're referring to and so there's the I think there's there's an imperative there and a mandate

Rep. Bacon (NE-2)3:04:14 – 3:04:15

mmm

Daryl Caudle (Witness)3:04:19 – 3:04:33

that the air force determine how they're gonna provide the Abingcat mission to US strategic command I look forward to working with the Air Force on that. There's a lot of solutions that we could do collaboratively to that, to make that a joint solution. And so I can be part of that discussion.

Rep. Bacon (NE-2)3:04:33 – 3:05:16

You know, for the record, we have weapons that can hit us in fifteen minutes. And there's future technology that's even worse. We need a airborne or some kind of emergency airborne command and control that can respond if the White House, Pentagon, or STRATCOM is hit. And that's what this looking glass mission is. I've been a part of it. And I just want to make sure that the Pentagon, uh, uh, not just the Navy and the Air Force, but do we have a plan? Cuz it's all about nuclear command and control deterrence. Uh there, one last question with my remaining fifty seconds. We're burning through SM sixes and SM twos like every the first day of the war is probably two or three months worth of production. How do we get to the point well we're gonna have to do something different here, where we're doubling production lines. I are, do we have a plan?

Hung Cao (Witness)3:05:18 – 3:05:47

Congressman, yes we do. Uh we're we're looking at even just to to recertify these munitions like for example the Tomahawk you know look I came I grew up poor you things don't just expire right just cuz the contractor said does you know you bread you roll rub some water in it microwave fifteen seconds it's ready to eat so likewise we were able to recertify hundreds uh of of Tomahawk missiles to launch out there for uh from class echo and fox shot to November and likewise with recertification of the standard missiles, that's what we did sir

Rep. Bacon (NE-2)3:05:48 – 3:05:54

We need to double production I believe and we gotta have a budget to do it. With that I yield back. Thank you.

Rep. Rogers (AL-3)3:05:55 – 3:05:56

Mister Bell, you're recognized.

Rep. Norcross (NJ-1)3:05:57 – 3:08:29

Thank you, Mister Chair. Thank you to the witnesses for being here today. Uh, Secretary Cowell, last week I sent you a bipartisan bicameral letter regarding the effort to relocate the Missouri Army, National Guard, Marine Corps, Reserves and Navy Reserve units currently located on thirty-four acres of property at St. Louis Lambert International Airport. The current facilities are outdated and need to be replaced with modernized long-term facilities. At the same time, these units must be relocated in order to in order for Lambert to move forward with its multi-billion dollar modernization and expansion project. In return, Lambert has identified a new larger pars- parcel of land to serve as the permanent long-term location for the Guard and Marine Corps units, while the Missouri National Guard has identified historic buildings at Jefferson Barracks Air National Guard station that can be renovated to support the Navy Reserve mission. Interim facilities would be used until those permanent locations are completed. The Missouri Army National Guard and Marine Corps Reserve have already expressed support for the temporary relocation proposal, including the use of interim facilities in North St. Louis. However, the Navy Reserve has not yet agreed to move forward with the temporary relocation plan despite the significant economic and infrastructure implications associated with delaying the Lam- Lambert e- expansion product, project. Therefore, the proposal cannot move forward. This is not simply an airport issue. This project represents one of the largest economic development and modernization efforts in the St. Louis region. and delays could have major downstream impacts on construction timelines, regional growth, and future investment. The St. Louis region is a is a center of innovation, a major defense and manufacturing hub, and plays a critical role in strengthening our national security. St. Louis has shown that we are a reliable partner, and we are asking that you all be a reliable partner in return. you to personally look into the issue and work with the Na- Navy Reserve to understand the necessity and urgency of this temporary relocation and will you commit to having your staff work with my office and local stakeholders to help resolve the current stalemate and move this project forward.

Hung Cao (Witness)3:08:30 – 3:08:34

Congressman, we will uh answer your your uh letter and and we will work with you, sir.

Rep. Norcross (NJ-1)3:08:35 – 3:09:07

Thank you. Um, and then, Secretary Cowell, the Navy's um, FAXX program will play a critical role in maintaining carrier air wing superiority against increasingly advanced threats in the Indo-Pacific. Given its importance, how is the Navy coordinating with the Air Force on sixth generation fighter development to ensure inter- interoperability where appropriate while avoiding unnecessary duplication in in inefficiencies between FAXX and NGAD efforts?

Hung Cao (Witness)3:09:08 – 3:09:48

Congressman, thank you for that question. We this is why we're we're l- uh uh having the Undersecretary of War for Acquisition and Sustainment be kind of the arbitrator, make sure we're not making the same mistakes uh or or I mean not make, just learning from the Air Force what they're doing. And by the end of the summer we will have a down select for the FAXX so that can we move forward. Again, learning from the Air Force, we will be able to accelerate and move that program out uh further. I mean again, Kerry Air Wing, uh if you saw in Epic Fury and and uh you know uh absolute resolve, That's that's the best way to get firepower downrange quickly. And and the the F- thirty-five has done amazingly well, but we need a a sixth generation aircraft that to thwart the next uh threats, sir.

Rep. Norcross (NJ-1)3:09:49 – 3:09:50

Thank you. I yield back.

Rep. Rogers (AL-3)3:09:53 – 3:09:55

Mr. Higgins, you're recognized for five minutes.

Rep. Higgins (LA-3)3:09:55 – 3:10:26

Thank you, Mister Chairman, Secretary Cowell, much of the discussion around maritime industrial base focuses on major shipyards, but smaller regional ship builders are critical to meeting Navy demands. Um, I think we can agree with that statement and in the interest of time, can I can I humbly request a a meeting, sir, with with your senior staff in in June, uh, directly with your office regarding small shipyards in Louisiana?

Hung Cao (Witness)3:10:26 – 3:10:28

Absolutely, sir, I'll I'll be there with you.

Rep. Higgins (LA-3)3:10:28 – 3:12:13

Thank you, sir, I I will I look forward to that meeting and our staff's working together. Um, Admiral, a joint reserve based New Orleans plays a critical role and remains strategically important installation for both homeland defense and global force projection, I'm sure we agree. And they provide aggressor aircraft that prepare our combat aviators to succeed in forward theaters. Uh, Louisiana's reserve units have consistently delivered for the Navy. delivered operational capability at a high level, but aging platforms are creating increased sustainment and mission capability challenges. That's that statement, it's something I'm quite certain you're one hundred percent in agreement with, um, and we can agree that there's a great deal of importance in readiness, pilot retention, and maintaining surge capacity in the reserve component. I commend the Navy for addressing these challenges and and and for addressing fighter recap- recapitalization efforts such as transitioning from the legacy F five aircraft to the newer F A eighteen platforms at at uh joint reserve base New Orleans. However, there was a but coming, right? However, it's reported that necessary uh simulators and maintenance contracts will not arrive in time to support the transition. Can you just, can you speak to that? What's the Navy doing? What can we do to help? Is there anything I'm not doing as as a Louisiana representative? Uh, please speak to that.

Daryl Caudle (Witness)3:12:13 – 3:12:28

So there's nothing more frustrating than to get a capability and not be able to train on it before you, you know, you try to field it and make sure the pilots are ready to go. And they've got the simulators and tubs, as we call them, and we're ready to actually do that. So let me take that for action to understand where we are in fielding

Rep. Higgins (LA-3)3:12:35 – 3:12:47

Yeah, I would look forward to that, that communication. Can I can I humbly ask you as well, sir, for a senior staff meeting with my staff for an update on that in the next three or four weeks?

Daryl Caudle (Witness)3:12:47 – 3:12:48

Of course. Yes, sir.

Rep. Higgins (LA-3)3:12:48 – 3:14:43

Thank you very much. Uh, gentlemen, for all of you, let me say that, uh, it's a lot of money. And it's to people's treasure, and we're gonna watch it very carefully, but we we want to invest in in the uh in in this era of of development of an indomitable military. And none of us up here who question your the professionalism and the intentions of your request Uh but we're gonna have to look at every dollar very carefully. I'm sure you concur. Mm, I'm gonna address pilot shortages for just a moment. My, mm, my dad I think is one of the most concerning, uh, sort of internal threats that we face to our readiness and capability and, and our ability to project force. My dad was a Navy pilot in World War Two. And He was he was it was fascinating to be his son, I can tell you, I ended up joining the army, maybe so that would have one interest in football weekend per year. But the the challenges that the Navy and the and the Marine Corps faced across across the spectrum, just pilot retention and qualified pilots staying in uniform. Um, I commend what's being done, but I'll ask is is is the Navy and the Marine Corps addressing the culture within the pilot um realm that that that pulls these guys out? Will they leave the uniform of United States Navy or Marine Corps and put on a uniform of Delta or United?

Eric Smith (Witness)3:14:44 – 3:14:53

Sir, I can tell you that we're in a pretty good place on our pilot retention. We're paying them a pretty handsome bonus to stay, and they wanna be Marines. They signed up to fly tactical aircraft.

Rep. Rogers (AL-3)3:14:52 – 3:14:55

Oh, that's what I like to hear.

Eric Smith (Witness)3:14:54 – 3:15:02

Um, but the the there is a draw by the commercial industry to pull them away, paying them an exorbitant salary. And so we're always struggling.

Rep. Rogers (AL-3)3:15:01 – 3:15:10

Gentlemen's time is expired. Thank you, gentlemen. Thank you, Mr. Chairman. Mr. Sorenson, you're recognized for five minutes.

Rep. Sorensen (IL-17)3:15:11 – 3:16:26

Thank you, Mr. Chairman. I'd like to welcome Secretary Cowell, um, Admiral Cottle, and General Smith uh for being here in committee. Um, I am honored to be the only professional meteorologist serving in the Congress. Uh, before the people elected me to serve them, I served in in a different way, um, as a broadcast meteorologist, telling the moms and dads when to go in the basement for a tornado or when to stay off the roads for a blizzard um but that job set me up to be able to do this job today. Um, I would never have been successful in my previous career if I didn't have the weather modeling data. that was accurate. Um, here on the Armed Services Committee, I now look at weather through a national security lens. And you know, I'll never forget the chance that I had meeting sailors in Norfolk Virginia on the USS Abraham Lincoln in twenty seventeen. Navy meteorologists who were forecasting not tornadoes and blizzards, but rather keeping our war fighters safe by keeping the most important Americans away from the worst storms. So, in your witness statement, Admiral Cottle, Uh, you mentioned that the Navy has surpassed its recruiting goal. Can you share whether you're you surpassed uh your recruiting goal for the Navy weather enterprise including meteorology oceanography and aerographer mates?

Daryl Caudle (Witness)3:16:27 – 3:16:43

Sir, they're not on my radar that we're behind there, so I'm assuming that we're on plan. I can go look at those exact numbers, but I can guarantee you that no one values it more than me. And uh across the whole spectrum, it is part of our war fighting apparatus. It's more, it's so much more than just weather, as you know.

Rep. Sorensen (IL-17)3:16:43 – 3:16:43

Right.

Daryl Caudle (Witness)3:16:43 – 3:16:59

It's about the ocean, it's about space. It's about precision navigation and tim- precise navigation and timing. So the entire, all of this is all tied into that career field. So, uh, I, you have my commitment to make sure if I'm, if I'm deficient there, I will get back to you on those numbers.

Rep. Sorensen (IL-17)3:16:59 – 3:17:43

Because there's so much that we don't yet know. There are so many discoveries that we're going to need scientists and, and folks, um, to advance our understanding. of meteorology. I fought hard to ensure that the DOD reversed its decision uh last year to cut critical satellite weather data to NOAA. Degradation in NOAA's data makes forecasting more difficult and that directly hurts our military readiness. Uh the Naval Meteorology and Oceanography Command relies on NOAA data, and our war fighters rely on both the Navy and NOAA to execute missions safely. Um to my next question, to the Admiral and also to Secretary Cowell, briefly about the importance of METOC and how the Navy partners with NOAA to ensure vital forecasting for our troops?

Daryl Caudle (Witness)3:17:44 – 3:18:26

Well, I mean, it goes to safety of ship. It goes to planned operations. It goes to when we re replenish, um, you know, our ships. It goes to modeling acoustic data for sound velocity profiles. It goes for how our weapons perform. Uh, it goes to when we how we do intelligence, uh, uh, surveillance and reconnaissance. It's inherently in because it's part of the earth. It goes again, you know, uh how we do P and T. All of that's tied into the Metalk uh portfolio. So I value it greatly. Uh the command there I it's it's tennis I value greatly. And and how it actually uh we actually filled that and build those communities of practice and then uh nav I four community of practice is part of something I hold very dear.

Rep. Sorensen (IL-17)3:18:26 – 3:18:27

Thank you Admiral.

Hung Cao (Witness)3:18:27 – 3:19:01

And Congressman, every year at the United States Naval Academy there's a uh handful of billets for the the meteorology and oceanography. majors so it's a very coveted um ability for them to to compete for that billet those five billets to go into that that specialty field and uh like the admiral said I mean everything revolves around uh the weather I mean we don't want an amphibious landing uh to again unfortunately history has shown what what happens when you don't guess where where the uh tide changes are and also we can't lose ships uh that are

Daryl Caudle (Witness)3:18:58 – 3:18:58

right

Hung Cao (Witness)3:19:01 – 3:19:08

sailing into harm's way also I mean we we need to avoid ships we do sorties all the time And that's to, uh, thanks to the meteorology, uh, community, sir.

Rep. Sorensen (IL-17)3:19:08 – 3:19:15

And we can't just use what we have learned in the past. How important is it that we do focus on how our climate is changing?

Hung Cao (Witness)3:19:16 – 3:19:36

Sir, we, we, we know always the climate's always changing. I mean, it, it's constantly changing and again, uh, we're that's why we need meteorologists to, to tell us w- where to go and when, when the best time to strike is. I mean, again, in special operations we need to make sure that we're not doing the full moon and, and during a major storm and so we would need to be able to insert our people in quickly and and safely.

Rep. Sorensen (IL-17)3:19:36 – 3:19:38

And let uh yeah.

Daryl Caudle (Witness)3:19:37 – 3:19:43

So I would just add one additional thing, I normally don't jump back in like this, but it's also very important for unmanned. And so,

Rep. Sorensen (IL-17)3:19:43 – 3:19:43

Yes.

Daryl Caudle (Witness)3:19:43 – 3:19:54

you know, j- yeah, our unmanned autonomous vehicles out there, UAVs, and understanding the weather they're incurring and modeling that, and knowing how to employ them effectively. So they're, it's inherently tied to unmanned as well.

Rep. Sorensen (IL-17)3:19:54 – 3:19:59

Last question uh to Mister Secretary, how closely do you work with NOAA to make sure that we're working together?

Hung Cao (Witness)3:20:00 – 3:20:11

As of right now, sorry, I I can't answer that question, but I know in the past I've worked very closely with NOAA uh for for everything from searching uh from the bottom of the ocean for like John F. Kenny, Jr. and his wife and his sister-in-law.

Rep. Rogers (AL-3)3:20:11 – 3:20:13

Gentlemen's time has expired.

Rep. Sorensen (IL-17)3:20:12 – 3:20:13

I'd love to be a part of that partnership.

Hung Cao (Witness)3:20:13 – 3:20:13

Yes, sir.

Rep. Davis (NC-1)3:20:13 – 3:20:14

Thank you, Mister Chairman.

Rep. Rogers (AL-3)3:20:13 – 3:20:16

Uh, Mister Davis, you're recognized for five minutes.

Rep. Davis (NC-1)3:20:16 – 3:20:48

Uh, thank you so much, Mister Chair, and to the ranking member and to the witnesses who are here today. Marine Corps Air Station Cherry Point um continues to reach new heights. For the second year in a row, the installation earned distinction as the Marine Corps Air Station of the Year. And we indeed are proud of that, General Smith. Given the twenty twenty-six aviation plan rollout, can you confirm that the Marine Corps intends to keep all six F- thirty-five lightning-two squadrons whole at Cherry Point?

Eric Smith (Witness)3:20:49 – 3:20:50

Sure we do.

Rep. Davis (NC-1)3:20:51 – 3:21:50

Okay. Thank you so much. Um, shifting gears. I've heard from so many in eastern North Carolina, which this has been a topic that's been ongoing from years for years, and that's the victims of toxic water contamination at Camp Lejeune. I've continued to hear from families, the Wilson family have shared their story, how it impacts the entire family, and literally we've seen people who've already now died Um, Acting Secretary Cowell, two thousand six hundred and thirty-five lawsuits have been filed with the US District Court of Eastern District North Carolina and only four hundred settlements have gone through. What is the department's plan of action? And that may includes include any inter- agency cooperation with DLJ. Would love to hear from you in terms of what's the plan for these families.

Hung Cao (Witness)3:21:51 – 3:22:02

Well, again, sir, you you mentioned these are ongoing uh litigations and i i i i can't uh talk about this but i just we're always committed to take care of our sailor uh our sailors and marines and their families sir

Rep. Davis (NC-1)3:22:05 – 3:22:47

And shifting gears once again um Newport News shipbuilding we have over a thousand North Carolinians uh are going um to the shipyard and really I'm pleased with the work that's taking place there. Let me ask both both Acting Secretary Cal and Admiral um Cottle, what are the primary bottlenecks that you see um sp- sp- specifically with ramping up the production of American-made parts for our nuclear-powered submarines and the next generation vessels um to prepare for potential, you know, Pacific conflict?

Hung Cao (Witness)3:22:49 – 3:23:23

Congressman, the uh thank you for that. The um the supply is not hundred percent the issue, it's just the the the manufacturer the the the uh the large companies are not telling the small manufacturers what they uh or the the supply chain what what they need and this is why it was so important for this body to allow us to to have multi-year procurement so they can they can tell tell the suppliers hey, we're gonna need this because we're gonna build one LPD every every year. These are the exactly what we need, but I'll I'll defer to Admiral Cottle also.

Daryl Caudle (Witness)3:23:24 – 3:24:17

Well, first of all, just say go Wolfpack and go Tar Heels, uh, just to get that on the record. But the um, uh, you know, the thousand, you know, North Carolinians heading to Huntington Ingalls Newport new ship building is exactly what Wright looks like. And so it is the flow of of of this workforce at that level from all the surrounding states into that maritime industrial kind of epicenter there in Virginia, It's what we need to keep the right talent, the right retention, the right recruiting, all that on track. You know, it's a massive question what you've asked. But we've got a lot of single vendor lock going on out there. We got a lot of long lead time material challenges. We've got a lot of upgrades that need to be done on the yards. And so it's it's a big question. But I would just tell you and I'd be happy to come and talk to you personally about it. But at the heart of it, it is all about the workforce. It's about turning wrenches, putting bead wells down, and planning and executing the maintenance on time and on schedule.

Rep. Davis (NC-1)3:24:18 – 3:24:33

Well, let me say, um, Admiral, um, go Wolfpack, go to our hills, and we really appreciate your service to our country. And same thing to our um secretary and to the General Smith. Thank you and God bless you the work that you're doing.

Rep. Rogers (AL-3)3:24:35 – 3:24:38

Dr. Conaway, you're recognized for five minutes.

Rep. Conaway (NJ-3)3:24:39 – 3:25:43

Uh, thank you, Mister Chairman, and thank you, uh, witnesses, for presenting yourself uh to us today. Uh, before um getting to my prepared remarks in question. Um uh Secretary Kal, you mentioned um and uh just uh let me set up just a little bit. We have heard from the administration that uh the uh Iranian ability to project force has been decimated. Um they can't fire any missiles, they um they are ninety percent attrited, uh they're flat on their back. I heard you say in your remarks uh that, and you might have misspoken, and so I I want clarification. uh have the Iranians been firing at American assets uh or are they firing at um other countries in the region or or both because it comes to this question of whether and when uh Congress is going to speak on uh this war uh is Congress's authority to to declare war uh and so I'm just curious whether or not the Iranians are firing at uh US assets uh in that region.

Hung Cao (Witness)3:25:44 – 3:26:12

Congressman, uh we after we stopped the hostilities and and we were talking t- uh to them for, uh peace negotiations, uh again they're they have a lot lack of command control right now, no one really knows who's in charge over there, and so you have these these one-sies and two-sies go out and then and they're, they're launching they they they dug out from their rebels and they pulled out a couple missiles and they they shoot at these merchant ships that are coming by, and that's why our our ships are protecting those ships as well. Uh I mean it's there's always l-

Rep. Conaway (NJ-3)3:26:12 – 3:26:17

So, I mean, I'm sorry sir, but Are they firing at American US assets or not?

Hung Cao (Witness)3:26:15 – 3:26:17

They're they're firing it at uh commercial ships.

Rep. Conaway (NJ-3)3:26:17 – 3:26:31

Because that sounds very much like a warlike activity, and the Congress has yet to speak to the American people on the question of whether or not we ought to be at war so I'm just curious what's happening with respect to our assets uh in uh the region of operation.

Hung Cao (Witness)3:26:31 – 3:26:33

They're they're shooting it at uh merchant ships, sir.

Rep. Conaway (NJ-3)3:26:33 – 3:28:50

OK. Let me move on to um uh uh other uh remarks I wanna make in a question. The United States continues to exist within a global economy where global international training and manufacturing are all interconnected. This reality is directly tied uh to US Naval shipbuilding uh initiatives outlined in both the FY twenty-seven uh Naval Budget and the US Navy shipbuilding plan. Specifically, the US Navy shipbuilding plan released in May uh twenty twenty-six emphasizes the need to revitalize our industrial base in order to comply with the President's executive order. The US manufacturing base is holistically uh been in decline since nineteen seventy nine and both military and commercial ship building have declined alongside it. Uh this long-term erosion compounded by the administration's cuts to the Department of Labor and the Department of Education has weakened the domestic workforce and reduced access to critical education and training pipelines. Specifically the president's budget proposal would cut the Department of Labor's fund funding by nearly twenty-six percent, eliminating vital programs such as Job Corps and the Office of Federal Contract compliance programs. As stated in a twenty twenty five article by the Center for Strategic and International Studies, the United States shipbuilding enterprise has struggled to p- stay abreast of best practices in shipbuilding in recent decades and in no small part because of the small size of the US commercial shipbuilding base, which tends uh to be where innovation arises uh in the sector worldwide. A lack of uh domestic manufacturing initiatives coupled with the Trump administration's reckless use of tariffs has cultivated a manufacturing environment uh that is both um uh disproportion to the size uh and cost. Secretary Cowell, uh in the new uh US ship building plan, your uh forward emphasizes the need to revitalize the American industrial base. What are your priority initiatives to help build the capacity and capability of both domestic shipbuilding industry and vendors that support them? And I certainly want to echo the comments that my colleagues have made about how important it is uh that while we might borrow technology copy it use it here that our our ships uh and other um war fighting uh material be made here in the united states so i appreciate your uh your answer to my question sir

Hung Cao (Witness)3:28:51 – 3:29:17

Congressman I know this is a very important deal and it's very important to everybody in this room also to build the ships we we need five hundred forty thousand Americans to to turn roll up their sleeves and work right now and this is what we're trying to do and you allowing us to do multi-year procurement allows that to it allows for industry to say, okay, this is what we're gonna do for next seven years. And that's why I I wanna thank the Congress for allowing us to do that and, and these are levers we need to pull in order to get shipbuilding going, sir.

Rep. Conaway (NJ-3)3:29:18 – 3:29:44

Uh, yes, and thank you for that. Um, uh Admiral Carl, uh, how does the US Navy intend to increase civilian workforce development and retention in a sector that has been steadily declining for the last, forty-five years? We heard from CEOs that there are some, I think, pilot uh programs that um are um uh designed to help um bring in a workforce uh that's going to be specifically helpful oh gosh I'm right through it but anyway I'll leave it at that.

Rep. Rogers (AL-3)3:29:40 – 3:29:42

The gentleman's time has expired.

Rep. Conaway (NJ-3)3:29:45 – 3:29:47

Um uh thank you Mister Chairman.

Rep. Rogers (AL-3)3:29:45 – 3:31:52

Thank you. Okay. Um it's been three plus hours. Congratulations to all of you. Um I've got a couple of thoughts, a couple of questions. and then we're gonna be on our way because we all have very important things to do, but nothing more important than what we're doing here in this committee room. This is not Democrat or Republican. This is about Democrats and Republicans working together on armed services to get the right results for the national defense. So I wanna throw one acronym out at you, ATM. This isn't money is not endless in an ATM, but in this particular instance, it stands for all things maritime. As we've listened over the last three hours to everybody make their statements, your responses, they have been thoughtful, but we still have to focus on all things maritime and get that broader base, whether it's the industrial base, whether it's the military ability to plan, project and implement, all of these things work together. So ATM, just remember, all things Maritime, but money is not unlimited, and time is finite too. K, so, no horse is too dead to beat, right? Okay, so we're gonna resurrect right now the the subject of the amphibious fleet, uh Admiral Caudill. Over the years, the Navy budget consistently prioritized other platforms while the Marine Corps warned of a crisis in amphibious lift. As the ultimate arbiter, are you directing the Department of the Navy to adequately fund the amphibious warship procurement and maintenance required for this presence? Or is there something we've missed and there's a a strategi strategic decision that lowers the Marine Corps in that priority list?

Daryl Caudle (Witness)3:31:53 – 3:32:16

Sir, I am directing that everything we can do to maintain the our amphibious fleet be done. I am fully recognized the journey that we've been on and how I got to the state. I own it. I'm working with the General Eric Smith to wor- to fix it. It has my full commitment. It's getting full funding. It's getting full oversight and every lever I can pull to improve the readiness of the amphibious force.

Rep. Rogers (AL-3)3:32:16 – 3:32:26

OK, thank you. Um, General Smith, could you please briefly talk about the importance of the medium landing ship to Marine Corps operations including your overall

Eric Smith (Witness)3:32:32 – 3:33:15

Sure I can. The LSM or landing ship medium is a crucial inter-island connector. It's what moves us through and about the first island chain. It moves our things like our nemesis battery, our ne- nemesis battery, Navy, Marine, Expeditionary ship interdiction system, and our rogue nemesis system. So the the number is to be decided. You know, it's about thirty, uh, give or take. But we're d- we're still determining those numbers. But it's - it's designed to move those units about and through the first island chain, to be a limited target, to be disaggregated, and to re-aggregate forces in order to move throughout that first island chain and to sustain themselves, to move munitions, batteries, munitions, uh, supplies, and to move Marines.

Rep. Rogers (AL-3)3:33:17 – 3:34:13

Thank you. Uh, Mister Secretary, I, uh, it's great to see you here. Uh, I agree with the commandant's belief that the LSM is critical to the Marine Corps warfighting mission, which is why I think it's imperative that the Navy does everything it can to get as many ships delivered as quickly as possible. That requires sufficient funding, as we know, to fully utilize the production capacity of LSM shipbuilders, including Fincantieri, Marinette Marine, which is able to construct four LSMs per year. I was up at their facilities not that long ago and it's quite impressive. Um, what are your plans for resourcing the LSM program to meet the four ship per year target and maintain the ship building workforce, uh a majority of which um commute from my district in into Tony Weed's district to go to work?

Hung Cao (Witness)3:34:15 – 3:34:35

Congressman, we we are uh we have that in our budget this year for that's that's why you know it's so imperative that we pass this bill sir because you know we time is of the essence and these ships are not gonna build themselves, we need to be able to tell industry this is what we want and and we're gonna lock in the the design and then move forward from there sir.

Rep. Rogers (AL-3)3:34:35 – 3:34:35

K.

Daryl Caudle (Witness)3:34:36 – 3:34:40

If I could if I if I could add just two things that I think are important to that question,

Rep. Rogers (AL-3)3:34:36 – 3:34:37

and I wanna leave you

Daryl Caudle (Witness)3:34:40 – 3:34:55

is proven design, so it's this LST one hundred, we're using a damon design, And we're for the first time the Navy's actually gonna use a vessel construction manager for the oversight of that build. So both of those are things that are gonna get that delivered on time.

Rep. Rogers (AL-3)3:34:56 – 3:35:50

Great, thank you. Well, and to close this out You know what the the term shell game? K. Well, I would suggest to you if you look at it potentially, we've been playing a hall game for too long. It's time for the hall game to end. And the ships to be built, deployed to the fight, to humanitarian assistance, disaster relief, which is a lot of what our gmoos do when they're not in the fight, but it's that worldwide presence that our amphibious ready fleet shows the world that we're serious about what we do, we just need the seriousness to re- result in ships that are floating and marines that are aboard. And with that, um, unless there's anything else, uh, uh, this this hearing is adjourned I thank everybody for your time and your patience.

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