(The Center Square) – President Donald Trump’s new plan to expand U.S. shipbuilding could have major implications for Virginia, home to the world’s largest Navy base and one of the nation’s largest military shipbuilders.
The administration’s proposal includes establishing a White House Office of Shipbuilding and offering tax incentives to boost domestic production. Trump also touted a $20 billion investment from French shipping company CMA CGM, which is expected to create an additional 10,000 U.S. jobs.
“We are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding,” Trump said. “I am announcing tonight that we will create a new Office of Shipbuilding in the White House and offer special tax incentives to bring this industry home to America, where it belongs.”
Virginia, a key player in the U.S. defense industry, could see an increase in shipbuilding contracts, particularly at Huntington Ingalls Industries in Newport News. Huntington Ingalls Industries is the country’s largest military shipbuilder and a major employer in the commonwealth.
The Virginia Ship Repair Association, which represents shipbuilding and repair companies in Norfolk, could also see a higher demand for workers.
According to the Virginia Maritime Association, private shipbuilding and repair activities in Virginia generated more than $12.3 billion in revenue in the fiscal year 2022 and directly employed 33,500 workers.
Federal obligations for shipbuilding and repairs in Virginia totaled approximately $1.1 billion in 2025, with HII receiving a large portion, according to federal spending data.
According to the Government Accountability Office, the Department of Defense has spent $5.8 billion since 2014 to support the shipbuilding industrial base, funding structure upgrades and workforce improvements.
The DOD plans to invest an additional $12.6 billion through 2028, but the GAO notes that the department has not fully measured the effectiveness of these investments. The report also highlights workforce shortages, supply chain issues and outdated infrastructure as ongoing challenges, raising concerns about whether these funds will be enough to meet production demands.
According to the report:
37 out of 45 ships currently under construction are delayed, some by more than three years.The Navy expected to have 313 ships by 2025 but now projects 287 ships, 26 fewer than planned.Workforce shortages and supply chain disruptions.
While Virginia’s shipbuilding industry could benefit from increased federal investment, workforce shortages, infrastructure needs and funding uncertainties will remain key challenges.
Industry leaders, lawmakers and state officials will need to closely watch how Trump’s plan develops and whether it can translate into long-term growth for Virginia’s economy.
