The Future of the Coast Guard: Review of Coast Guard Programs and Structure

Chairman Mike Ezell (R-MS)SPEAKER_13

Subcommittee on the Coast Guard and Maritime Transportation will come to order. I ask unanimous consent that the chairman be authorized to declare recess at any time during today's hearing. Without objection, so ordered. I also ask unanimous consent that members not on the subcommittee be permitted to sit with the subcommittee at today's hearing and ask questions. Without objection, so ordered. As a reminder, if members wish to insert a document into the record, please also email it to documentsti@mail.house.gov. I now recognize myself for an opening statement for 5 minutes. As the Coast Guard prepares to undertake significant changes, today the subcommittee meets to review the service's program and structure. I'd like to welcome our witness, Admiral Kevin Lunday, Acting Commandant of the Coast Guard. Sir, it's good to see you again. I congratulate you on your nomination to serve as Commandant of the Coast Guard, and I look forward to working with you closely over the coming years. We certainly enjoyed having you in Mississippi's 4th District last week. It was an honor to host you, and I want to thank you for choosing the Gulf Coast as your first official stop. The Coast Guard is preparing to undergo a significant period of change and modernization. At the Coast Guard Academy graduation last month, Secretary Noem announced Force Design 2028, the Trump administration's vision for the future of the Coast Guard. As you know, this initiative includes five main points: establish a service secretary so that the Coast Guard has some— the same representation as other military services, as reflected in my bill H.R. 2546, the Secretary of the Coast Guard Act of 2025; recognize the service to streamline processes, better integrate capabilities, and eliminate redundancies; invest in the men and women serving in the Coast Guard; invest in technology to improve efficiency and capability; improve and streamline the acquisition process. Admiral, I was encouraged by your support for this vision. I look forward to hearing more about this plan, how the Coast Guard will implement it, what resources you will need, and what changes in authorities the service will require. As the Coast Guard carries out these efforts, it is the subcommittee's expectation that you will work with us and keep us updated on the initiatives that move forward. To meet the Trump administration's vision, the Coast Guard's modernization will require substantial resources to prepare the service to meet the needs of future decades. Unfortunately, in recent years, the Coast Guard has taken the motto, Do more with less. After years of underinvestment, the service is now operating with outdated or inadequate cutters, aircraft, IT systems, and shoreline infrastructure facilities that limit its effectiveness. A recent GAO study confirms what many of us already know and suspected: we have reached a breaking point. Coast Guard operational hours have fallen by nearly 20% since 2017, and mission effectiveness is suffering. Last month, the House approved a budget reconciliation proposal that makes the largest investment in the Coast Guard's 234-year history. H.R. 1, the One Big Beautiful Bill Act, includes $21.2 billion to purchase cutters, aircraft, and shoreside assets. Our investment would reduce the rate at which the service is downsizing, but the investment must be matched with sustained, long-term funding if the Coast Guard is to fully make up recent losses. Let me be clear, H.R. 1 allows the Coast Guard to carry out its current program of record. It does not fund the growth envisioned by the administration, nor does it account for any new missions. If the administration expects to fulfill its vision for the Coast Guard, it must submit a budget that actually supports these goals. While I am pleased that the President's proposed fiscal 2026 budget request provides a modest increase in overall funding, the request is insufficient to sustain the Coast Guard's current operations, let alone carry out the President's vision to grow and strengthen the Coast Guard over the long term. Admiral, as you know, the Coast Guard currently owes this committee more than 50 legally mandated reports, some which are years overdue. These reports are not optional. This committee relies on these reports to conduct oversight that the American people expect of us. Do I have your commitment that going forward you will work to get these reports in a timely manner?

Admiral Kevin E. LundaySPEAKER_04

You do, Mr. Chairman.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you. Before I end my statement, I want to recognize two individuals. First, the Coast Guard's House liaison, Justin Nadolny. I know that's probably not the— Where you at, Justin? There you are. Okay. Hey, Justin. I want to recognize you, Justin, whose two-year assignment with the House is coming to an end. We will miss you, Justin. Justin has been an enormous asset to members, staff, and Coast Guard working with us to strengthen the service, and I really thank you. I also want to recognize Commander Nicole. Nicole, where you at?

SPEAKER_UNKNOWN

Okay.

Chairman Mike Ezell (R-MS)SPEAKER_13

subcommittee's Coast Guard fellow. During her two years serving on the subcommittee, Nicole contributed in countless ways, and her background as an operator and attorney proved invaluable. On behalf of the subcommittee, thank you both for your service. I wish you fair winds and following seas as you take on your next assignments. Admiral Lunday, thank you for being here today, and I look forward to our discussion. I now recognize Ranking Member Carbajal for an opening statement for five minutes.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Thank you, Mr. Chair. Let me also, before I start my remarks, wish, due to Commander Justin Naldoni, I wish him the best of luck. He's been an extraordinary representative and liaison from the Coast Guard. He has represented you well, Admiral Lunday, and before that, Commandant Fagan. He has always demonstrated the highest standards of professionalism. He has a great sense of humor, a little serious sometimes, so I just want to wish you the best, Justin. And congratulations on your promotion to captain coming up, I believe, in a week or so. So thank you for your service. And I also want to recognize Admiral Lunday is a very smart guy. Today he brought his lovely wife with him to join us today, which makes it hard for us to ask him even harder questions. But I'm going to do my best to ask him hard questions nonetheless. Welcome. Good morning, and thank you, Mr. Chair, for calling this hearing today. Welcome, Admiral Lunday, and congratulations on your nomination for commandant. One thing that's great about this subcommittee is that we're all on the same page on a very important issue: supporting the United States Coast Guard. There is no organization like it in the world. The service members are top notch, and since 1790, our country is safer because of their service. I also agree with Secretary Noem when she said that the Coast Guard has been neglected and under-resourced for far too long. Unfortunately, when I look at the budget, this is another case of watch what I say, not what I do. The overall funding is not as exciting as one would hope. It does not account for increasing the size of the service. It does not account for taking on new missions like those associated with the Arctic Security Cutter. And most importantly, it reverses course on recapitalizing the Coast Guard's shoreside infrastructure. The Government Accountability Office recently issued a report that found the Coast Guard $7 billion estimate for the shoreside infrastructure backlog is actually much higher. Over 200 projects to date still have no cost estimates, and none have been adjusted for inflation. The shoreside infrastructure backlog directly impacts Coasties and their families. This is real-world stuff. In my district, a member of the Coast Guard recently fell through the floor of the Coast Guard's housing as they were taking a shower because the persistent moisture and mold rotted the floor. And I have brought this to the Coast Guard's attention, and I hope to hear a report about all the things that are being done regarding those items that I have pointed out regarding housing in my district. We must do better, because this is completely unacceptable. What is in the administration's first transformational budget for the Coast Guard infrastructure, you may ask? A cut of 90%, a scant $21 million to address a more than $7 billion backlog. Budgets demonstrate values and priorities. What are this Secretary's priorities? Well, we know that she is planning to follow the president's lead in obtaining not one, but two Gulfstream V jets to accommodate her travel at a cost of upward of $54 million. That's 2.5 times the entire shoreside infrastructure budget for the Coast Guard. Budgets show priorities. Talk about fraud, waste, and abuse. Fortunately, I believe that my colleagues on this subcommittee share my interest in providing for service members, and I will continue to work across the aisle to ensure Congress provides prudent, robust investments in the Coast Guard. Another place where I am certainly— where I am certainly on the same page with my colleagues and I agree with is the importance of the Coast Guard's role in law enforcement. The first step is enforcing the law and following the law. Unfortunately, just last week, the service sent us a letter saying that they have zero intention of following a law that is instrumental to growing the Coast Guard. Why? Because it conflicts with an executive order. I know that Admiral Lunday is an attorney, so I look forward to hearing a legal justification for that decision. Does executive order trump the law, or does the law supersede an executive order? I've always been and continue to be a champion for fully funding the Coast Guard at a level commensurate with their needs and their service to the country. To be clear, Congress and every president for the past 20 years has failed to do this. Admiral Fagan boldly stated that the Coast Guard is a $20 billion service and deserves to be funded as such. Despite their stated interest in reviving and growing the service, I am concerned that this administration's actions show that they do not agree with Admiral Fagan's assessment. While the prospect of funding through reconciliation is welcome news, it still falls short and does not provide the long-term and predictable funding the Coast Guard needs. We must do better. Congress and Coast Guard leadership owe it to the Coasties who serve this country to deliver on these promises. With that, I yield back, Mr. Chairman.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. I now recognize the chairman of the full committee, Mr. Sam Graves, for 5 minutes for an opening statement.

Full Committee Chairman Sam Graves (R-MO)SPEAKER_08

Thank you, Chairman Ezell, and thank you, Ranking Member Carbajal, for this hearing. And I want to welcome our witness. Admiral, it's good to see you here today. It's good that you're coming on board. I hate the fact that we're losing Commander Justin Naldoni and also Nicole, our fellow back here. And then we're also losing Corey Seitz too. So they have done a wonderful job being a part of your team and helping us out. But I do want to congratulate you with everybody else on your nomination to be the next commandant of the Coast Guard. And the Committee on Transportation and Infrastructure is very glad to host you for your first hearing after being nominated, and I hope you're quickly confirmed in that position. I'd be remiss if I didn't tell you just how proud I am of the jurisdiction, our committee's jurisdiction over the U.S. Coast Guard. It really means a lot to me, and I know it means a lot to the members of the committee too. And I look forward to working with you to establish a Secretary of the Coast Guard, and implement the Force Design 2028 vision, and complete the budget process, which is going to give historic funding levels to to the Coast Guard. During my time as chairman, I've had the privilege of meeting many of the men and women in the U.S. Coast Guard that serve our nation and protect our seas and our ports and conduct lifesaving missions throughout the United States. The importance of our Coast Guard security, our country's security, it cannot be overstated, and I look forward to working with you, Admiral, and ensuring that the servicemembers have every tool at their disposal and everything that they need to successfully complete their mission. And with that, Mr. Chairman, I'll yield back. But it's good to have you.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you, Mr. Chairman. Carbajal not here? Okay. All right. Briefly, I'd like to take a moment to explain the lighting system to our witness. There are three lights in front of you. Green means go, yellow means slow, you're running out of time, red means start winding her down. I ask unanimous consent that the witness's full statements be included in the record. Without objection, so ordered. I ask unanimous consent that the record of today's hearing remain open until such a time as our witnesses has provided answers to any questions that may be submitted to them in writing. Without objection, so ordered. I also ask unanimous consent that the record remain open for 15 days for any additional comments and information submitted by members or the witnesses to be included in the record of today's hearing. Without objection, so ordered. As your written testimony has been made part of the record, the committee asks that you limit your oral remarks to 5 minutes. With that, Admiral Lunday, you are recognized for 5 minutes for your testimony.

Admiral Kevin E. LundaySPEAKER_04

Thank you, Mr. Chairman. Chairman Graves, Chairman Ezell, and Ranking Member Carbajal, and distinguished members of the subcommittee, thank you for the opportunity to testify before you today. Thank you for your strong and enduring support for our Coast Guard, for our Coast Guard men and women, and for their families. Chairman, it was great to join you and your staff on the Gulf Coast last week. Thank you for taking the time to visit with our Coast Guard units, our men and women there. They're so proud of their mission. And then also for visiting with the shipyards in Mississippi and Alabama that are building new Coast Guard cutters that we badly need to conduct our operations in support of the American people. For nearly 235 years, the American people have depended on the Coast Guard as a vital instrument of national power to ensure U.S. economic prosperity and national security. Today, the Coast Guard is at one of our most consequential periods in our history, a time of profound challenge and extraordinary opportunity. As our nation faces increasingly dangerous and complex threats from nation-states, terrorists, and criminals, the American people need a strong and capable Coast Guard now more than ever. Under the leadership of President Trump and Secretary Noem, the Coast Guard is making America more secure. The service's highest priority is achieving complete operational control of the U.S. border, including our ports and waterways. On January 21st, I directed our operational commanders to immediately increase Coast Guard presence along the U.S. border and maritime approaches, starting with the southern border, where the President had declared a national emergency the day before. We surged forces, tripling the number of cutters, boats, aircraft, and deployable teams to control, secure, and defend that southern border. The Coast Guard also increased efforts to secure and defend our ports and waterways, both in the physical domain and in cyberspace, that is so essential to economic prosperity and strategic mobility. And I've set as a top operational priority combating fentanyl in maritime cargo shipments approaching the U.S. And the Coast Guard beyond the southern border continues to control, secure, and defend our northern border and the U.S. border and approaches around Hawaii and Alaska and our three U.S. territories in the Pacific and two U.S. territories in the Caribbean. The Coast Guard is delivering results for the American people. We are already—we have deterring illegal maritime migration and stopping the illicit flow of drugs into the United States. In the last five months alone, we've interdicted over a thousand aliens trying to reach the U.S. by sea, and we've deterred thousands more. We've already surpassed our entire fiscal year 2024 cocaine removal numbers, and we continue to combat foreign terrorist organizations and cartels by interdicting the bulk smuggling of cocaine and other drugs at sea. However, despite the success in our missions and the great work of our people, the Coast Guard is in a severe readiness crisis that is decades in the making. Today, our Coast Guard is less ready than at any other time in the past 80 years since the end of World War II. The downward readiness spiral we are on is not sustainable, and we must take action now to change that direction. Together, we must restore the Coast Guard readiness and transform the service into a more agile, capable, and responsive fighting force. Following years of underinvestment, we must eliminate maintenance backlogs for our cutters, boats, aircraft, shore infrastructure, and C5I systems to return our assets to full operational readiness. At the same time, we need to invest in new assets, in modernizing our existing platforms, accelerating the adoption of new technology, and providing our people the support and the training that they need to be successful. As we work through the FY26 appropriations process to increase the Coast Guard's top budget line, and we look forward to the opportunity of unprecedented investment in the budget reconciliation, I appreciate the extraordinary support from this subcommittee and across Congress and the unprecedented leadership of the administration. With President Trump's direction to rebuild our nation's military and secure the border, and under Secretary Noem's leadership, the Coast Guard will implement Force Design 2028, a bold blueprint to renew our service. Through Force Design 2028, we will transform how the Coast Guard functions and operates to defeat our adversaries and protect the homeland. As we navigate through this time of transformation, I have certain hope for the future of our service, because no matter the challenges ahead, if there's one thing our distinguished service history in both peace and war tells us, with a ready Coast Guard crew and the strong support of the American people, there is nothing we cannot accomplish. Thank you. I look forward to your questions.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Thank you, Admiral, for your testimony. We'll now turn to questions, and I will recognize myself for 5 minutes for questioning. Admiral, as a chart from the Government Accountability Office, GAO, shows, the increasing age of the Coast Guard assets has reduced the Coast Guard's ability to carry out its missions, driving up costs as maintenance becomes more expensive while driving down operational hours as assets are laid up or undergoing repair. This is a bad combination. How will the investments contained in the reconciliation bill reverse this trend and position the Coast Guard for success?

Admiral Kevin E. LundaySPEAKER_04

Well, Mr. Chairman, as I look at this graph, The first thing that jumps out at me is that it's a great reflection of the seriousness of the downward readiness spiral and the readiness crisis the Coast Guard faces itself in.

SPEAKER_UNKNOWN

I

Admiral Kevin E. LundaySPEAKER_04

To me, this graph tells me that we're spending more money to keep older assets operating, but their availability keeps dropping and that situation continues to get worse. But if you take this graph and we go down to the waterfront, and we see a Coast Guard cutter returning from a patrol, that crew will tear much of that cutter apart, pulling apart critical supplies and parts in order to make the next cutter ready to get underway. We're eating our own readiness and we can't sustain that. So our crews are living this in reality every day. So, sir, the opportunity that the investment of reconciliation provides will go a long way to stopping the downward spiral, but it will just be the beginning. It will need to be matched with a sustained higher growth in annual top line—budget top line in the annual appropriation, both PC&I and our operations and sustainment accounts. Now, the FY26 president's budget begins a strong start in that right direction. It gives us an increase of over $1 billion in both PC&I and O&S total over the FY25 expenditure. And so that's $344 million in PC&I and over I think it's almost $650— $644 million in O&S.

Chairman Mike Ezell (R-MS)SPEAKER_13

The fiscal year 2026 budget continues the trend of underinvestment and the consequences that go with it. Going forward, what is your plan to request the resources the service requires to sustain its operations and fulfill President Trump's growth vision?

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, we look forward to working with the committee on the FY '26 appropriation and then going forward to increase topline growth in our annual appropriation for both PC&I and O&S. That's going to be essential to rebuild and renew the Coast Guard, which the Secretary of Homeland Security was clear in her remarks at the Coast Guard Academy graduation on the 21st of May when she talked about her discussion with the president and the need to provide the Coast Guard what we need in the future to be ready to serve the American people.

Chairman Mike Ezell (R-MS)SPEAKER_13

Force Design 2028 calls for at least 25% reduction in the Coast Guard's flag corps to streamline decision process. Late last month, we were notified that the promotion board recommendations for the rank of rear admiral lower half were rejected, and a number of other positions appear to have been eliminated with the release of this year's flag assignments, including the flag officer in charge of governmental and public affairs. Aside from these notifications, we have not received a detailed reorganization plan. Does the service have a detailed reorganization plan for the flag corps?

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, we're working on a detailed plan. That's part of the force design implementation plan that I owe back to the secretary in the coming weeks. And once the Secretary has received and approved that plan and we begin to implement it, we look forward to briefing the committee on that plan.

Chairman Mike Ezell (R-MS)SPEAKER_13

Very good.

SPEAKER_UNKNOWN

All right.

Chairman Mike Ezell (R-MS)SPEAKER_13

I'm going to yield at this time. We'll probably have a second round of questions here coming up, and I now recognize Mr. Carbajal for his 5 minutes.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Thank you, Mr. Chairman. Admiral Lunday, in my opening statement, I mentioned the state of Coast Guard infrastructure. Not only did the Coasties in my district fall through their shower floor, they've been forced to live with mold and continuous water issues. How can we justify spending 2.5 times more on executive jets than on housing for rank-and-file servicemembers?

Admiral Kevin E. LundaySPEAKER_04

Ranking Member Carbajal, the area of housing in Santa Barbara that you're very familiar with—and thank you for your personal visit last year to take a look at the situation in those eight homes in Santa Barbara. So we did have mold issues, and although that's not uncommon broadly in the area, I think the significant rainfall more recently in the last several years has made that problem worse. We've gotten after the problem of mold remediation. We've replaced the areas in the shower that—in the shower sets in the units that had mold, and for units that had people living in them with mold, we were able to move them so we could do those repairs and remediate it. None of our members should live in housing units that have mold or other conditions that present hazard for them, and so we're getting after those problems to address them. Ranking Member, on your question about the aircraft, so that was a decision I made to include the long-range command-and-control aircraft in the FY '25 spend plan. The Coast Guard operates C-37 aircraft as part of our operational aircraft fleet. They provide long-range military command and control, that's reliable transport and secure communications, for the Secretary, the Acting Commandant, the Deputy Secretary, the Acting Vice Commandant, and our two area commanders to enable us to conduct command and control. Those assets are critically important. The two that we own, the one is older, it's 23 years old now, and it's increasingly obsolete in its avionics, and the communications need upgrade. And they're both facing significant maintenance periods this year that will take them offline and out of service.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Thank you. We understand that Master Chief Petty Officer of the Coast Guard Heath Jones was invited to join us today until his recent forced retirement. Master Chief Jones is one of the most admirable people I have ever met serving in the Coast Guard. What message does this forced retirement send to enlisted service members? And are you aware of any cause for his termination?

Admiral Kevin E. LundaySPEAKER_04

Ranking Member Carbajal, Master Chief Petty Officer of the Coast Guard Jones is currently serving and remains the Master Chief Petty Officer of the Coast Guard right now. He's at home on leave right now, and I won't get into personally why he's at home on leave, but he's got a—well, he's got a second granddaughter that he and his wife are celebrating the arrival of. So that wasn't a reason that I didn't have him here at the table. I would want him by my side, but he's at home on leave right now.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

So are you saying he is not retired?

Admiral Kevin E. LundaySPEAKER_04

He plans to retire this year. That's correct. And I will go through the process, subject to confirmation by the Senate, as the next commandant. I will go through the process of selecting the next Mass Chief Petty Officer of the Coast Guard.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Okay. So it's not a forced retirement.

Admiral Kevin E. LundaySPEAKER_04

Well, I've decided to select a new Master Chief Petty Officer of the Coast Guard if confirmed as the next Commandant. Master Chief Petty Officer of the Coast Guard Jones has served with honor and distinction for his entire career. He has a distinguished career, and we're going to celebrate that career at the change of watch toward the end of July with the next Master Chief Petty Officer of the Coast Guard and a great celebration for Master Chief Petty Officer of the Coast Guard Jones's career.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

So if you decide to select somebody new, you basically say your services are no longer needed?

Admiral Kevin E. LundaySPEAKER_04

Thank you, Member Carbajal. Changing out military leadership, including our senior enlisted leadership, is part of the normal cycle of what we do in the service. So this is not unusual, sir.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Thank you. Recently, in response to a statutorily required strategy to address recruitment, an accession strategy plainly told Congress that you are choosing to follow an executive order rather than follow the law. Do you plan to continue violating the law? And how do you determine which laws to follow and which laws not to follow? Where is it at?

Admiral Kevin E. LundaySPEAKER_04

Ranking Member Carbajal, as a part of the executive branch, the Coast Guard is following the executive order and the guidance from the Department of Homeland Security in this regard, on— with regard to that report and other reports that call for reporting on DEI matters.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Section 11249 of the Don Young Coast Guard Authorization Act of 2022 is a statute that provides for guidance on this issue. And there was an executive order that was issued, and I'm just trying to understand why you would not follow the law, rather this executive order that was put forth that is not the law.

Admiral Kevin E. LundaySPEAKER_04

Sir, I'm working to follow the law and the guidance of the executive branch, and I understand clearly the requirement in the Authorization Act that requires the report as well.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

So do you plan to fulfill the statute?

Admiral Kevin E. LundaySPEAKER_04

So we're doing our best to follow the guidance as part of the executive branch under the president's executive order and the guidance from the department. I understand the frustration of the committee because of the existence of the requirement to deliver that report. At this time, the report that we've submitted is the report that, that stands for our submission.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you very much, Mr. Chairman. I'm out of time. Gentleman yields. Now recognize Mr. Webster for his five minutes of question.

Rep. Daniel Webster (R-FL)SPEAKER_06

Thank you, Mr. Chairman. Thanks for having this, uh, good hearing. And thank you, uh, Admiral, for coming. Really appreciate it. We're pretty— at least from my reports, I'm getting pretty firm information that you're going to be confirmed. Nothing's set in this place, but congratulations. There's one thing I wanted to carry on about was the Atlantic Coast Port Access Route Study, which is— I mean, it's not just now, it's not just a few years ago. We've just been waiting and waiting on a report that is in the study, which has just not come. It's, it's kind of perplexing. Is there any hope of having that happen?

Admiral Kevin E. LundaySPEAKER_04

Congressman, we are continuing to work on the Port Access Route Study, and we look forward to briefing that once that's completed.

Rep. Daniel Webster (R-FL)SPEAKER_06

So is there a timeline for completing it?

Admiral Kevin E. LundaySPEAKER_04

Congressman, I look— let me get back to you with a specific update on the timeline for the delivery of that report. It's

Rep. Daniel Webster (R-FL)SPEAKER_06

kind of

SPEAKER_UNKNOWN

like a

Rep. Daniel Webster (R-FL)SPEAKER_06

timeline for the timeline. But anyway, thank you for those answers. I appreciate it. There's also the idea of the Force Design 2028, and that has some great things in it, and great design, modernization, so forth, all that. Do you see that happening as far as money-wise, training all of these new recruits that are going to happen, 17,000 new ones? What do you see about the funding versus the idea that's on a piece of paper?

Admiral Kevin E. LundaySPEAKER_04

Congressman, the Force Design 2028 offers a bold blueprint forward that the Secretary has given us to deliver transformational, even revolutionary change that we will have not seen at any other time at this scale since the formation of the modern Coast Guard organization in 1915. As you said, sir, and as the Chairman mentioned, it's across five lines of effort, starting with the creation of a Secretary of the Coast Guard, but also the other campaigns to improve organizational streamlining of decision-making, improvement of pushing that decision-making to the field, improving the recruiting and training and development of our people, advancing the use and application of technology to make the Coast Guard a leader in the federal government, and then streamlining our acquisition and contracting. That must be matched with the investment necessary to make that a reality. And that investment will come not only in the budget reconciliation, but also sustained higher top-line annual growth in our annual appropriation, both PC&I and O&S. That will be the necessary engine to drive the change that is laid out in Force Design 2028.

Rep. Daniel Webster (R-FL)SPEAKER_06

Do you foresee sparks flying in Alabama and Mississippi on the new polar cutter anytime soon?

Admiral Kevin E. LundaySPEAKER_04

Mr. Webster, Congressman, we definitely are. The chairman and I were down there last week, and we visited Bollinger, Mississippi, where they are constructing the first of three heavy icebreakers, the first that will be built in half a century for our United States, Polar Security Cutter No. 1. The full production of Polar Security Cutter No. 1 was authorized by the Department of Homeland Security back in the end of April, but we had already begun advance work to fabricate some of the early modules the shipbuilder had. That will teach them how to move faster in the production later in the in the series as we move forward with the production of the full program of record. So, they are cutting steel. They are building that first Polar Security Cutter, sir.

Rep. Daniel Webster (R-FL)SPEAKER_06

Do you think the, the speed of number 2 is going to be a lot faster than number 1 as far as completion?

Admiral Kevin E. LundaySPEAKER_04

Congressman, the first ship in class is always the most difficult because that's where the most learning occurs. What we see with the shipbuilder there is that they are learning from the early work they're doing on number 1. And yes, sir, I expect that the delivery of number 2, which is planned to be 2 years after the delivery of number 1, that it will, it will accelerate and they will be able to move faster in the production.

Rep. Daniel Webster (R-FL)SPEAKER_06

Awesome yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Now recognize Mr. Pappas for five minutes.

Rep. Chris Pappas (D-NH)SPEAKER_00

Thank you very much, Chairman Ezell and Ranking Member Carbajal, for holding this session. I want to thank you for joining us, Admiral Lunday, and congratulate you on your recent appointment to serve as the Commandant of the Coast Guard, and welcome to the subcommittee. So I appreciate you taking the time discussing the vital work of our nation's Coast Guard, both now and in the future. We know that the Coast Guard deserves full parity and resources to be able to recapitalize and modernize the service, to honor the service and sacrifice of the men and women of the Coast Guard and the great work they do every day. We know that your leadership is critical to our efforts to increase preparedness and to face down security threats and to make sure that we are prepared for the growing demands that the Coast Guard is going to be asked to respond to. I wanted to start with one local issue that's really important to my district, but I think speaks to the readiness challenges that you spoke of in your testimony. In January of 2024, back-to-back winter storms with tides as high as 18 feet severely damaged U.S. Coast Guard Station Portsmouth Harbor, which is located in the town of New Castle, New Hampshire. Significant damage was sustained to the station's seawall and boathouse. As a result, the station is no longer able to dock two emergency response boats and has been forced to make alternative temporary arrangements. While the Coast Guard in New Hampshire has been able to overcome these challenges and perform their missions, the logistical challenges and the daily risk mitigation experienced in the aftermath of these storms regularly threatens the readiness of that station. So, my office has spoken with the commanding officer, Eugene Kaminski, and it's clear that the full funding for Coast Guard's PC&I budget is necessary to support the boathouse and seawall rebuild. Additionally, it's going to take the commitment of the Coast Guard leadership to ensure that these repairs don't experience any further or unnecessary delays. So I'm wondering, Admiral, if you've had the opportunity to speak with leadership at Portsmouth Harbor Station about these repairs, and if not, if I can have your commitment that you'll discuss the needed repairs with the Portsmouth Harbor Station commanding officer and other leadership as soon as possible?

Admiral Kevin E. LundaySPEAKER_04

Congressman, thank you for your support and the support of the full committee in Congress for the supplemental appropriation that will deliver $24 million to effect those needed repairs following those devastating winter storms. And so I have not spoken with the commanding officer since that appropriation, but I will have a direct conversation with the commanding officer and ensure that we are successful in executing the money necessary to do those critical repairs.

Rep. Chris Pappas (D-NH)SPEAKER_00

Well, I'm really grateful for that. Thanks very much for being willing to make that connection. And besides a robust PC&I budget, does the Coast Guard require any additional tools from Congress to ensure timely repairs to this particular station or to any of the others that are suffering from damage from storms?

Admiral Kevin E. LundaySPEAKER_04

Congressman, I think overall we needed a stronger operations and sustainment budget. And that's to keep up with the ongoing regular maintenance for much of our shore facilities. While we see significant storms that cause damage that need recapitalization, and there are other longer-term recapitalization needs that are covered by the PC&I budget, the regular daily maintenance that's required to keep these facilities working, particularly on the coast where they experience extreme weather, requires a stronger O&S budget as well.

Rep. Chris Pappas (D-NH)SPEAKER_00

Thank you, Admiral. A longstanding issue facing the Coast Guard has been the recruitment and retention of women in the Coast Guard. In fact, a study found that at the 10-year mark of their careers, the retention rate for women as opposed to men were 12 percentage points lower for both officers and enlisted members. Key provisions in the last House-passed Coast Guard reauthorization focused on the recruitment and retention of women in the Coast Guard, including the Fair and Equal Treatment of Women in the Coast Guard Act. Admiral, can you speak to the existing retention efforts the Coast Guard's undertaking to ensure that women Coasties are equally valued and respected in their service? And are there additional congressional actions that are needed to support the service in these efforts?

Admiral Kevin E. LundaySPEAKER_04

Congressman, we've had significant success not only in recruiting recently, but also in the retention across our Coast Guard, both men and women. So on the recruiting side, I'm pleased to report that this year, we have already had people either join or sign up 49— over 4,900 people, well beyond our 4,300 annual target, which far exceeds even last year's successful number of recruits, both men and women. And we continue to increase our recruiting capacity to move and be able to recruit from across our great United States the best talent, both men and women, into our Coast Guard. We also need to retain our best talent, men and women in the Coast Guard, as well. And so we are— that is a top priority. And as the secretary, as part of force design, has set a goal to grow the Coast Guard workforce, both active and reserve, by 15,000 people, men and women, both active and reserve, then we need to continue to keep our foot on the gas on recruiting and retention.

Rep. Chris Pappas (D-NH)SPEAKER_00

Thank you. I yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Chair now recognizes Mr. McDowell for his 5 minutes of questions.

Rep. Addison McDowell (R-NC)SPEAKER_02

Thank you, Chairman, and thank you, Admiral, for being here today to testify before the subcommittee. I'm I'm glad to see that modernization of Coast Guard IT systems is a priority in Force Design 2028, particularly the long-awaited and greatly anticipated modernization of the antiquated Merchant Mariner Credentialing Program. Are mariner licensing examinations part of the proposed transformation of the mariner credentialing program, and how will that be accomplished?

Admiral Kevin E. LundaySPEAKER_04

Congressman, the improving the technology systems that we use for mariner licensing and credentialing is critically important. That's a part of the way forward, as you mentioned, and also making sure that the training and certification process that is provided by schools for mariners, that the Coast Guard is responsible for overseeing, that continues to meet the high standards necessary for mariners to be able to develop the skills and competencies and qualifications necessary. This is also vital given the president's direction in the executive order to restore America's maritime dominance. And part of that is by reinvigorating our Merchant Marine. And so that remains and will be a top priority going forward, sir.

Rep. Addison McDowell (R-NC)SPEAKER_02

Is course approval process part of the proposed transformation of the credentialing program, and how will that be accomplished?

Admiral Kevin E. LundaySPEAKER_04

Sir, the course credentialing program and the approval process is already a high priority because of some challenges we've seen in the last several years. But I will commit to you, we will bring that into our efforts that are part of restoring our effort, the Coast Guard's contribution to restore America's maritime dominance, because it's a critical component of our mariners being able to operate and do their job.

Rep. Addison McDowell (R-NC)SPEAKER_02

Admiral, when this subcommittee met in March, we had a conversation about the Coast Guard's aging infrastructure and assets. And at one point, we were talking about the Coast Guard continuing to operate vessels with literal holes in them, which I'm no expert in ships, but that's a problem. And the Coast Guard has historically struggled with recapitalization efforts, since the service must maintain

SPEAKER_UNKNOWN

uh,

Rep. Addison McDowell (R-NC)SPEAKER_02

day-to-day operations, which result in assets that are operated well beyond their service life. And so a lack of access to funding obviously contributed to this problem. But today, however, we have an influx of congressional support for historic levels of funding, which seems to be unacknowledged in the Coast Guard's budget request. Can you explain the reason for the discrepancies between the Coast Guard's relatively modest budget request and the $21 billion recapitalization investment provided for in the House budget reconciliation bill?

Admiral Kevin E. LundaySPEAKER_04

Well, Congressman, I would say that the FY26 president's budget reflects a strong start in the right direction, with over a billion-dollar increase between PC&I and O&S that, along with the significant, historic investment levels that budget reconciliation reflect, will give a significant move in the right direction to restore Coast Guard readiness. And, of course, that will need to be matched in the following years by a stronger top line for PC&I and O&S to continue to rebuild and restore Coast Guard readiness.

Rep. Addison McDowell (R-NC)SPEAKER_02

One of the most important things to me is, is making sure that you all have what you need to do drug interdiction as it— as these drugs try to come into our country. What is the single most helpful thing we could do to give you the tools you need to stop fentanyl trafficking, human trafficking? Obviously, you all are doing a fantastic job this year with, with catching these, these criminals, but what's the single most helpful thing we can do?

Admiral Kevin E. LundaySPEAKER_04

Congressman, the, the work that we're doing to control and secure and defend our borders from illegal drug trafficking that brings death and destruction to our communities, including in fentanyl, is one of our top priorities. We talk about the importance of search and rescue But that mission saves lives just as much as search and rescue does. And so in terms of the top priority, I would say that the shipbuilding acquisitions to deliver the offshore patrol cutter, which will replace our aging 210-foot fleet, the ships that you described that often have holes in them and that are not quite as old but still old 270-foot cutters, those offshore patrol cutters will give advanced technology and capability, but it will also be matched by investments in our in our boats and our advanced sensors and technology that enable our boarding teams who are doing this work at the tactical edge against adversaries who are smuggling these drugs linked to the cartels, who are many designated as foreign terrorist organizations. That will give them the advantage that they need to be successful, to be able to get that mission done and return home safely.

Rep. Addison McDowell (R-NC)SPEAKER_02

Thanks, sir. Yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Chair now recognizes Ms. Strickland for five minutes for questions.

Rep. Marilyn Strickland (D-WA)SPEAKER_11

Thank you, Chairman Ezell and Ranking Member Carbajal. Nice to see you, Admiral Lunday. Congratulations, and I look forward to working with you. And shout-out to Mrs. Lunday for being here. Nice to see you both. So, I represent Washington State and the South Puget Sound, where the maritime sector is integral to our national security and our economy. And I'm concerned that this administration's neglect and misuse of Coast Guard assets will compromise both. Slashing the Coast Guard shoreside infrastructure budget by 90%, as mentioned earlier, while spending $50 million on a new jet for Secretary Noem is unserious and signals to the men and women of the Coast Guard that this administration does not value the mission or their well-being. I want to talk first about movement of cutter assets. I want to talk about the focus—focusing on the diversion of assets critical to marine safety and capabilities from their assigned districts. So earlier this year, the subcommittee learned that two fast response cutters in the Pacific Northwest were being taken from District 13 for the rest of the year to support security operations at the southern border. These were the only fast response cutters serving the entire Pacific Northwest coastline, and we were informed that to address the long-term coverage gap in Washington State, a cutter is being transferred from Alaska. This will leave communities in Alaska with one fewer cutter. Now, I think my colleagues on the committee, perhaps including Congressman Begich from Alaska, would appreciate a thorough explanation of decisions that impact search and rescue operations and responsiveness to marine safety concerns that require a fast response cutter. Robbing Alaska to pay Washington State only exacerbates the gaps in regions that need coverage, especially now that fishing season and summer boating season are going to be in full effect. Admiral Lunday?

Admiral Kevin E. LundaySPEAKER_04

Well, Congresswoman, the decision to move temporarily assets around in order to meet higher priority needs is something that I and operational commanders within the Coast Guard do every day in the face of increasing mission demand across our mission areas. And so the decision to temporarily deploy fast response cutters from the Pacific Northwest down to support controlling and enforcing and securing our southern border is not unusual. And then making decisions in conjunction with the Pacific Area Commander and the district commanders on how to address and position other assets temporarily to accomplish other missions is part of the work that we do every day across the Coast Guard. I will say that in the Pacific Northwest, under the leadership of the District Commander Admiral Fosse, he is taking significant action and steps over the last 4 months under Operation Arctic Fox to secure the northern border, working not only with other federal, state, and local partners, but with our allies in Canada, working together to make sure that we can control threats in that area. So we remain active in our operations not only for marine safety, but for controlling and securing our and defending our northern border as well. But what I would say, Congresswoman, that also points out that because we're in the state of readiness that we're in today, we are not able to deliver the same level of services in all of our mission areas that that we have traditionally tried to do. We are not as resilient, and we do not have the same level of bench strength that we had in the past because of increasing decades of underinvestment, and so we do not have the same level of availability of assets.

Rep. Marilyn Strickland (D-WA)SPEAKER_11

Thank you. I want to talk a bit about privatization of search and rescue missions. DHS officials have said that the Coast Guard should not be doing search and rescue, and subcommittee staff recently learned that private companies are looking to contract for this mission. Now, I have nothing against private contractors supplementing, in addition to, but substitution raises really big red flags for me. So can you talk a bit about the search and rescue mission and whether you plan to allow privatization of it when it should be a public service?

Admiral Kevin E. LundaySPEAKER_04

Congresswoman, I'm certainly aware that there are commercial companies that provide salvage services for mariners who need it. Coast Guard search and rescue remains one of our primary missions. In fact, it's more than that. It's a special trust we have with the American people. It's part of our DNA. And so we are not lowering our response standards for maritime search and rescue. I would tell you beyond search and rescue, other missions we do also save lives: controlling, securing, and defending our border and maritime approaches against illegal drugs and illegal migration, that also saves lives; defending our border and our maritime critical infrastructure from cyber threats to that infrastructure that could threaten the movement and facilitation of commerce

Rep. Marilyn Strickland (D-WA)SPEAKER_11

I want to get back to the question, though. Are you going to allow privatization of the search and rescue function instead of having the Coast Guard do it?

Admiral Kevin E. LundaySPEAKER_04

I— Congresswoman, I have no plans to step away from our search and rescue operations or turn that over to private companies.

Rep. Marilyn Strickland (D-WA)SPEAKER_11

Thank you. I yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

The gentlelady yields. Now recognize Mr. Begich from Alaska. Go ahead, sir.

Rep. Nicholas Begich (R-AK)SPEAKER_03

Thank you, Mr. Chair. First of all, Admiral, let me just compliment you on your responsiveness on our nation's most southern border. Your mission there is of critical importance, and it's great to see an administration prioritize that important security mission. And we certainly appreciate all the hard work that you've done and your team has done to prioritize that mission, in addition to all the other responsibilities that you have across the country. So, shifting focus to Alaska, Alaska's vast, rugged maritime domain makes the Coast Guard indispensable for search and rescue, law enforcement, fisheries enforcement, and border security. But delays in modernizing home ports, housing, and icebreaking capabilities disproportionately impact Alaska's public safety. Chronic undercapitalization has left Alaska's bases and vessels in disrepair. Your written testimony underscores the severe strain this has placed on crews and missions. The fiscal year 2025 budget reconciliation, however, includes over $21 billion to recapitalize assets and rebuild shoreside infrastructure, which are key for Alaska's future readiness. So, with that as a backdrop, what assurances can you provide that the current $3.15 billion shoreside infrastructure funding will prioritize Alaska's most urgent recapitalization needs rather than be diverted to lower priority projects in the Lower 48?

Admiral Kevin E. LundaySPEAKER_04

Congressman, as you know, sir, the US is an Arctic nation because of the state of Alaska. The Coast Guard presence in Alaska is strong. And so our recapitalization needs that are already on track will be fueled even more and accelerated by the investments in reconciliation. And so we're very excited about future asset delivery into the state of Alaska. In fact, the chairman and I on the Gulf Coast visited the Coast Guard Cutter Storis just before she got underway. She's now underway in the Gulf of America, steaming toward the Panama Canal, and after going up the West Coast, will arrive in Juneau for a commissioning—formal commissioning ceremony on the 8th of August before conducting her first operational patrol. That's our nation's third polar icebreaker we've just added to the fleet, and we're very excited about that. It's a year ahead of the planned schedule that we're operating that asset.

Rep. Nicholas Begich (R-AK)SPEAKER_03

That is impressive, and we are very excited about Storis coming to Alaska. We believe this is the first of many investments with respect to icebreakers that are necessary for the Arctic, and I think it will go a long way to restoring that capability for the United States. One additional question: given the unique operational demands of Alaska's vast and remote maritime environment, how does the Coast Guard plan to ensure that new technologies and platforms like autonomous vessels or AI-enabled surveillance systems are adapted for Alaska's extreme conditions, including winter operations and our limited infrastructure?

Admiral Kevin E. LundaySPEAKER_04

Congressman, I think we've certainly learned lessons with Rescue 21 and some of the persistent challenges we had in Alaska with the design and function of that, given the extreme conditions in that operating area. And so as we go forward with the Coastal Sentinel, which is one of the systems that and that was mentioned in Force Design 28, to use technology to advance our maritime domain awareness to help control, secure, and defend our border, we will have to make sure that that technology is functioning and able to be as successful and effective in the harsh Arctic conditions in Alaska.

Rep. Nicholas Begich (R-AK)SPEAKER_03

Thank you, Admiral. We're very excited about your pending confirmation, and we appreciate your your continued leadership of our nation's border security, search and rescue operations, and more. And we look forward to working with you going forward. And with that, Mr. Chair, I yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Chair now recognizes Ms. Scholten for 5 minutes.

Rep. Hillary Scholten (D-MI)SPEAKER_07

Thank you, Chair Ezell and Ranking Member Carbajal, and welcome, Admiral Lunday. It's good to see you again. Before I jump into my questions, I just want to share my gratitude for your service to our nation and congratulate you on your nomination to serve as the next Commandant of the Coast Guard. I am so grateful that West Michigan is warming up this time of year, but we are coming off a very significant winter. Our Coasties in Muskegon and Grand Haven are tasked with ensuring that lake freighters can pass through these waters and make deliveries on time regardless of the weather conditions. It was, in fact, just weeks ago, I feel like I can count on my hands that I was out there watching an incredible ice rescue off of our Grand Haven Pier. The Great Lakes region has kept supply chains running with one icebreaker, a single icebreaker, which is why the service requested congressional support for a new Great Lakes icebreaker in fiscal years 2024 and 2025. However, the Coast Guard's most recent request does not include a funding ask for an additional Great Lakes icebreaker. Further, the budget doesn't include a request for dollars to replace the 40-year-old Bay-class 140-foot icebreaking tugs, two-thirds of which are in the Great Lakes. Admiral Lunday, can you elaborate on the exclusion of these Great Lakes priorities in the Coast Guard's fiscal year 2026 budget?

Admiral Kevin E. LundaySPEAKER_04

Congresswoman, let me start. The president was very clear that the nation needs 40 icebreakers. Now, the Coast Guard is very excited about that because we're the ones that operate the nation's icebreaker fleet. Now, a lot of people focus on our polar icebreakers, but it includes our domestic icebreaking fleet, which of course is centered on the Great Lakes fleet. And so we appreciate the support for the funding in '24, $20 million of the 55 million needed to begin the analyze and select phase for an additional Great Lakes icebreaker. And we've begun that work. But it's critical, as we look at the reconciliation and the opportunity that that affords, that we certainly will be using that to build out our domestic icebreaking fleet, including an additional the Great Lakes icebreaker that you mentioned.

Rep. Hillary Scholten (D-MI)SPEAKER_07

We're also very grateful that the president has mentioned a priority. But again, we're going to need to see see that in the budget. You know, can you direct me to any specific actions where we might be able to see substantive action taken, um, and, and where the Coast Guard intends to, to specifically delineate that we can expect to see those Great Lakes, uh, icebreakers included in the budget?

Admiral Kevin E. LundaySPEAKER_04

Well, Congresswoman, it's not in the FY26 request because although we did see an increase, it did not have a higher top line that enabled us to include it in this year's budget request.

Rep. Hillary Scholten (D-MI)SPEAKER_07

When, when do you anticipate it would be included? I'm sure you can appreciate my dismay when at the one— on the one hand, we're talking about, you know, a commitment to 40 icebreakers, but then we don't actually see the request included in the FY 2026 budget.

Admiral Kevin E. LundaySPEAKER_04

Well, Congressman, we're also looking at the opportunity that the budget reconciliation will provide for a significant capital infusion and recapitalization of our ships, including all of our icebreaker fleet, which includes the Great Lakes fleet.

Rep. Hillary Scholten (D-MI)SPEAKER_07

So would you anticipate then that through the reconciliation package, we would be able to specifically allocate funding for a Great Lakes icebreaker? And would you be willing to submit language that would specifically delineate that?

Admiral Kevin E. LundaySPEAKER_04

Congressman, we're working with the administration and Congress as the budget reconciliation package moves forward now on the Senate side. The Great Lakes icebreaker, a new one, is a high priority, but we'll work with the administration on that language as part of the reconciliation process.

Rep. Hillary Scholten (D-MI)SPEAKER_07

My office is more than willing to work with you as well. In the Great Lakes, we are unfortunately far too used to getting by with much less. But when it comes to the Great Lakes Icebreaker Program, we need to continue to elevate the importance of this program. And again, we look forward to working with you to make sure that this is not overlooked in the budget reconciliation process. If I may, one more quick question on the importance of the Coast Guard and its people. The president's budget is an opportunity to demonstrate priorities, as my colleagues have said. Despite intentions to grow the size of the service significantly, this budget does not meaningfully increase operations and support account and drastically cuts shoreside infrastructure for things like housing and, as critically important to me, childcare facilities and healthcare facilities. How do you propose to grow the size of the Coast Guard without significantly increasing operations and support and shoreside infrastructure?

Admiral Kevin E. LundaySPEAKER_04

So, Congresswoman, within the O&S inside the FY26 budget request is $27 million as part of Force Design 2028 that will get after some of the key elements that are enablers for that. So it will get after increasing our recruiting, it will deliver a Coast Guard human resources IT system that we're badly in need of to help us develop our workforce in the future. And so that includes some key early investments in O&S that will get after some of the workforce needs.

Rep. Hillary Scholten (D-MI)SPEAKER_07

I appreciate that. I know I'm running out of time here, but I'd like to resubmit my question specifically about childcare facilities and if you can get me more specific details on on that for the record, I, I would be grateful.

Chairman Mike Ezell (R-MS)SPEAKER_13

I will do that for the record, Congresswoman.

Rep. Hillary Scholten (D-MI)SPEAKER_07

Thank you. I yield back. Thank you, sir.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentlelady yields. Chair now recognizes Mr. Patronis for 5 minutes.

Rep. Jimmy Patronis (R-FL)SPEAKER_12

Thank you, Mr. Chairman. Good morning. Thank you for being here, and congratulations on your selection. I got to spend Memorial Day weekend down in Miami, toured your station down there. Marilyn took great care of me. I'm, I'm Sometimes the best way I learn is visually. So, being able to spend some time with the team down there was rewarding for me. I look, I understand where the chairman's gone. I appreciate their commitment to wanting to put in the budget what you need, and then the president's agenda of strengthening shipbuilding along all of Florida's and Mississippi and Alabama's Gulf of America. Chairman, I wish I could have joined you this week. That sounds like it was an exceptional visit. But seeing the double down and investment of the importance of shipbuilding and the amazing job creation opportunities that brings, that helps, and it gets me excited. But I appreciate you joining us today to discuss the future of the Coast Guard. I'm fortunate I get to share a load-bearing wall with your liaison office. And the guys over there, pretty much check on them every morning when I walk in. You've got good people, and it's a real a real good fortune for me, as I'm brand new, to have some folks that are willing to spoon-feed me to understand the issues that are so important to our country. So, again, thank you for putting assembling a good team. But let's talk a little bit about When I grew up, my home was Panama City when I grew up. And I remember, as you get imprinted when you're a young child, Coast Guard cutter Dependable would make the news on WJHG, and it was a big deal. My family's business was right down the street from the Coast Guard station. And when I started thinking about this job I'm taking, I decided to Google it. This vessel was built back in the '60s, and it's still operational. And I understand the importance of keeping up with the times with the investment of these new OPC cutters. What do you see probably as the most significant contribution that they will bring to the next generation, for, I guess, multiple generations as the life expectancy of these vessels expects to be?

Admiral Kevin E. LundaySPEAKER_04

Sir, the offshore patrol cutter is a critical investment for the Coast Guard because it replaces what is the backbone of our cutter fleet, which is right now is done by a combination of those older 210s like Dependable, and then the 270-foot cutters that we also continue to operate. And so they enable us to provide that presence not only offshore, near offshore, but in the long-range maritime approaches to the U.S. border in all of the places there is a U.S. border, and that's a lot of territory. And so the ability to have that advanced capability the offshore patrol cutter provides is critical to enabling our crews to control, secure, and defend the border and approaches.

Rep. Jimmy Patronis (R-FL)SPEAKER_12

Thank you. When it comes to giving you the resources to meet your training needs, open-ended question, are we doing enough?

Admiral Kevin E. LundaySPEAKER_04

Well, sir, the training— first of all, Congressman, our people are our most important asset, and making sure that they not only have the assets and capabilities they need, but that they have the training they need is critically important. And so, part of our need in the operations and sustainment side is to ensure that we have the right resources to be able to deliver that training to them. And when we talk about Force Design 2028, one of the campaigns is technology. It's how do we use technology to deliver the training and the performance improvement that they need in a cutting-edge way. The traditional way of training people is in a classroom or simulators that require significant travel, but we can provide through augmented and virtual reality, and we're leaning into that now, but we there's so much more opportunity to do it, to deliver advanced training in a way that provides realistic training to enable our people to be successful.

Rep. Jimmy Patronis (R-FL)SPEAKER_12

I appreciate that. When I got on this committee, I was definitely excited, and to see that the chairman's leadership was wanting to make this part of our funding priority. It was, you know, I thought that's kind of cool. You know, I got to, I got to be a part of hopefully seeing an investment, which I think really, I mean, impacts especially an individual that's got a big coastal area and the importance it is for the services you and the men and women you lead provide. Thank you for your service. And Mr. Chairman, I yield.

Chairman Mike Ezell (R-MS)SPEAKER_13

gentleman yields. Chair now recognizes Mr. Larsen for his five minutes of questioning. I'm sorry, Mr. Garamendi. I was looking

Rep. John Garamendi (D-CA)SPEAKER_05

I appreciate being becoming the ranking member of the committee. I'm sure I'm sure Rick would find that difficult. Thank you very

Chairman Mike Ezell (R-MS)SPEAKER_13

much. I saw you sitting there. Okay,

Rep. John Garamendi (D-CA)SPEAKER_05

no problem at all.

SPEAKER_UNKNOWN

Uh,

Rep. John Garamendi (D-CA)SPEAKER_05

Admiral Lunday, I promised myself I would be polite, and I'm going to do the very best I can. We've been at this icebreaker thing for well over 12 years, 12 years that I've been on the committee. And it's one misstep, one bad decision after another. There's no money in the ongoing budget for icebreakers. You're looking at the Polar Star, the new—excuse me, the new polar icebreaker at its earliest sometime in early '30, maybe '31, '32. We're looking at, as you just said, additional money in the reconciliation. That's, I guess, good, except it's in a bad bill. My point to you is: What are you doing within the administration of the Coast Guard to put in place the right people with the right authority to get this job done? At least for the last decade, that has not happened, with multiple admirals sitting in that chair, not providing the competency and the organizational structure within the Coast Guard to get a critical job done. So what are you doing?

Admiral Kevin E. LundaySPEAKER_04

Congressman, the Force Design 2028 blueprint for transformational change that the Secretary announced will do that in two key ways. First, the establishment of a Secretary of the Coast Guard with the support of the Congress will provide direct, focused civilian control over the Coast Guard. That includes responsibility for that Secretary over the acquisition programs for the Coast Guard, including the polar icebreaker. The other part of that in the acquisition, one of the four lines of effort, is to streamline our acquisition process so that we can move at the speed and scale to deliver the assets needed, and move away from the challenges we've had in the past with acquisition.

Rep. John Garamendi (D-CA)SPEAKER_05

God, I've heard the happy talk so many times. So we have a civilian secretary. Responsible for the icebreaker program? Is that what I heard you say?

Admiral Kevin E. LundaySPEAKER_04

Well, sir, this construct—and this is, we're working with the administration and Congress on the language to create a secretary of the Coast Guard, which is an administration priority—but it is similar to the construct for other military service secretaries that provides that civilian, political-level leadership and accountability.

Rep. John Garamendi (D-CA)SPEAKER_05

Excuse me. Excuse me.

Admiral Kevin E. LundaySPEAKER_04

Yes, sir.

Rep. John Garamendi (D-CA)SPEAKER_05

So that's going to take a law. Has that been introduced?

Admiral Kevin E. LundaySPEAKER_04

Yes, sir. Chairman Ezell has introduced a bill on the House side, Senator Scott has introduced a bill on the Senate side, and the administration is working on that legislation.

Rep. John Garamendi (D-CA)SPEAKER_05

Now, within your organization, are you structuring an organization with specific responsibility, with an appropriate level of authority and staff to get this job done?

Admiral Kevin E. LundaySPEAKER_04

Yes, sir, we are. So,

Rep. John Garamendi (D-CA)SPEAKER_05

and could you please provide that in writing to the committee and certainly to me?

Admiral Kevin E. LundaySPEAKER_04

Congressman, we will provide in writing in specific detail as part of the Force Design Implementation Plan that includes how we are clarifying the accountability on how those programs will be successful as we execute that money, not only for the icebreaker programs, but all of our acquisition programs.

Rep. John Garamendi (D-CA)SPEAKER_05

Thank you. I look forward to getting that detail soon, because these issues are in play both in this committee as well as in the Armed Services Committee over the next couple of months. Just note that I have serious doubt, but I think it's imperative that this committee focus on the organizational structure to be set up and the accountability and the responsibility within your organization. And furthermore, if the reconciliation bill fails to move or if your piece of it is eliminated along the way, it's imperative that those funding programs be made available. And that they be made available immediately, not over the next decade. With that, Mr. Chairman, I'll yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

The gentleman yields. The chair now recognizes Mr. Van VanDrew for his five minutes of questioning.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

Thank you, Mr. Chairman. Admiral, I really—Acting Commandant, I wish you the very best, sincerely, and thank you for being here today. To some degree, I want to associate myself with the remarks of Mr. Garamendi now. He's been here more years than I have. I'm going on my seventh year in Congress. Seven years and not a reflection on you at all, because I think we are going to turn the page now. We have gone through this process, and that's why I've tried to keep pushing for benchmarks, even working on legislation that we have benchmarks, because we have these discussions, we hear these things, and it's our bad, too, by the way. It's Congress as well, and we just don't get anywhere near the finish line. Now, to be very focused here, would I be correct—I'm just going to ask you for some quick answers first, then we'll get into a little more detail—that with the administration, there is a new, forceful commitment through the reconciliation bill? By the way, Ms. Scholten is not here now, but I wish I could say to her, I'm not worried about the budget bill at this point. We haven't done particularly well with budget bills, whether it be an omnibus bill or the 12 separate bills. But the reconciliation process, I know I've had direct conversations with you folks, direct conversations with the administration, and I believe, and I've seen it, that there is a new, forceful commitment in will and desire, as well as dollars. Would you agree that's true?

Admiral Kevin E. LundaySPEAKER_04

Yes, Congressman.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

Thank you. I want to just make that clear. I want everybody to hear that. And would you agree with me that a lot of this is being done through the budget reconciliation project? Process

Admiral Kevin E. LundaySPEAKER_04

at this time? That's correct, Congressman.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

Yes, it is. Thank you. That's the plan. That's one of the reasons that we're doing the reconciliation, because we just can't seem to get the damn thing done when we go through the budget bills, multiple administrations. I'm not blaming one side or the other. So this is why this is a unique time in history, and that's why I believe in the benchmarks, as well. I think it's important stuff, whether it's icebreakers, patrol cutters, whether it is infrastructure and facility. Again, you're familiar with all of us. I know you do your homework, and you looked us all up when you come here. I'm in Cape May. 85% of your recruits go through Cape May. That's where the training center is. Again, to answer Ms. Scholten, there are dollars there for new barracks. We've begun that process. It's moving forward. That's going to be helpful, particularly to the females that are now enlisting in the Coast Guard, as well. Is that correct?

Admiral Kevin E. LundaySPEAKER_04

Yes, sir, that's correct.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

Thank you. What steps are being taken? I know it's hard to be real specific because we got to get the damn reconciliation bill done first, though. Can you share with us briefly any steps and timelines for offshore patrol cutters and polar security cutters? And I know you've answered that already, so just any spots you'd want to touch up on.

Admiral Kevin E. LundaySPEAKER_04

Yes, sir. So there are two stages for the offshore patrol cutter. We talked a little bit about stage one, the first four that are being built in Panama City, Florida, and the first hull is scheduled for delivery by the end of this calendar year, but it's only 72% complete. And so it's at high risk of delivery to meet that first target. Now, OPC stage two being built by Austal in Mobile, Alabama, that's OPCs numbers 5 through 15. They began construction last August, and they're making strong progress on delivery of that first one, which I believe is scheduled for 2028. I'll get the exact date on the— thank you— OPC number five, but they're making strong progress having started construction less than a year ago.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

And wouldn't you say that there's a new energy, a new commitment, a new sense of urgency that we've got to get these things done and stop talking about them, even when we deal with these different entities that you named?

Admiral Kevin E. LundaySPEAKER_04

Well, there is an urgency, Congressman, not only an urgency we feel in the Coast Guard to deliver assets for our crews that are operating on old assets that are increasingly harder to maintain and increasingly not available for operations, but nationally to provide the Coast Guard to meet the needs of the American people in the face of increasing threats, including nation-state threats.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

Absolutely. And I was going to review all of that, but I didn't because everybody up here knows it. Know it. Certainly all of you know it very well. Uh, there's $21 billion appropriated to address shortfalls in the reconciliation package. Uh, do you believe that's going to be helpful if that reconciliation package is successful?

Admiral Kevin E. LundaySPEAKER_04

Congressman, it will be an important start to reversing the downward readiness trend, but it will need— Yes, sir.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

Thank you. The active duty force, we've talked about that a little bit before too. Any particular plans to reinvigorate that? To reenergize it, to get more folks?

Admiral Kevin E. LundaySPEAKER_04

Yes, sir. The Secretary has announced, as part of Force Design 2028, a direction to grow the Coast Guard workforce, principally our enlisted workforce, both active and reserve, by up to 15,000 new members. And so that will put our already strong progress we've made on recruiting—we'll have to keep the pedal to the floor and continue to recruit to meet that goal by the target, which is by the end of 2028.

Rep. Jefferson Van Drew (R-NJ)SPEAKER_09

I appreciate your work. Let's do this, Chairman. We're breaking new ground here. We're going to do good stuff. I yield back to you.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Chair now recognizes King-Hinds from— go ahead with your 5 minutes.

Rep. Kimberlyn King-Hinds (R-MP)SPEAKER_10

Thank you, Mr. Chairman. Håfa Adai, and congratulations, Admiral Lunday. The Coast Guard has had an enduring presence across the Pacific Islands since World War II. And as somebody who's coming from the Northern Mariana Islands, I can personally attest to the value that the Coast Guard brings, the men and women, to protect our waters and save lives, whether responding to typhoons or delivering aid to atolls around the Pacific Islands, drug interdiction, or just protecting our sovereign waters from illegal fishing. You guys have been there. So I want to, first of all, express my deep gratitude on behalf of our community for all the work that you have put into protecting our waters. So my first question is, we've been hearing a lot about just some of the issues that folks have with the budget, but I wanted to hear from your perspective. Can you describe the benefits that the Coast Guard could receive based on the House-passed reconciliation package? Specifically, can you tell us how the House-passed investments will provide our service members with resources they need to conduct lifesaving missions and drug interdictions?

Admiral Kevin E. LundaySPEAKER_04

Congresswoman, the investment in reconciliation will provide a recapitalization of the capital assets we need— our cutters, boats, aircraft, C5I systems, and shore infrastructure necessary to conduct all of those operations, including throughout the Indo-Pacific.

Rep. Kimberlyn King-Hinds (R-MP)SPEAKER_10

Thank you. So, everybody's talking about these cutters. And really, I don't normally sit in this subcommittee, so the primary reason that I wanted to sit in—and thank you to the chairman and ranking member—is to talk about the fast cutters. From what I understand, they have been a force multiplier for our region, especially within the FSM and the other remote island nations when it comes to the bilateral shiprider agreements. Can you speak to the value that the fast cutter response cutters bring to the region? And also, what would it take for the CNMI to be considered as an alternative homeport option for your cutters?

Admiral Kevin E. LundaySPEAKER_04

Well, Congresswoman, as you know, the U.S. is not only a Pacific nation, it's a Pacific Island nation because of the Americans that live and make their home in Hawaii and the three territories in the Pacific, including the Northern Mariana Islands, Guam, and American Samoa. In the last six years, since I served out there, since Linda Lee and I served out there in District 14, we have increased the Coast Guard cutter presence by eight cutters, eight new cutters, six of those Fast Response Cutters in Honolulu, six based in Guam, two National Security Cutters in Hawaii as well, and then we've added a 270-foot cutter that we permanently transferred. With support of the Congress here and the administration, we have appropriations in 2024 to deliver next year two additional Fast Response Cutters out to the Western Pacific to be based there. We're looking at homeport options in Guam, and we will look at options also in the Northern Mariana Islands as we explore. There's a lot of a lot of demand for space out there, and so we're competing We have other competing needs with others that want a homeport, but we need those cutters forward. They are game-changing capability not only to control, secure, and defend our borders in the U.S. territories there, but also to strengthen our relationship with the other Pacific Island nations that are working to control their own borders and protect their sovereignty against the malign influence of the Chinese Communist Party throughout the Pacific Islands.

Rep. Kimberlyn King-Hinds (R-MP)SPEAKER_10

Well, thank you for that. Please do let me know how I can be of assistance to get you to make the decision to consider the CNMI to be one of the fast cutters' homeport. Thank you. Yield back my time, Mr. Chairman.

Chairman Mike Ezell (R-MS)SPEAKER_13

The lady yields. I now recognize myself for another 5 minutes. Admiral, I know we've discussed at length this morning and previous times about, but I want to put a fine point on this reconciliation. The reconciliation investments we're able to secure under President Trump's leadership are absolutely transformational. I think everybody on this subcommittee would agree that the the billions of dollars we're seeing in investment for our coasts is a nonpartisan issue. We've got to get this done, and I hope my colleagues will join me in the package and voting yes on this coming up. Thank you. So, moving on to my next question: Despite receiving some other substantial cash infusions, the offshore patrol cutter, OPC, Stage 1 contractor Eastern Shipbuilding Group has indicated that they cannot carry out the contract without taking an unabsorbable loss. As a result, the Coast Guard has issued a stop-work order for hulls 3 and 4 and has issued a Request for Information, RFI, to determine options to move the Stage 1 hulls to yet another yard to complete the work. OPC-1 was scheduled to be commissioned at the end of the year. Can you give us an update on whether hull 1 will be delivered, and if so, when?

Admiral Kevin E. LundaySPEAKER_04

Congressman, based on a completion level on OPC-1 of only 72%, I would say that the delivery of that asset by the end of the calendar year, which is the current scheduled delivery, is in doubt.

Chairman Mike Ezell (R-MS)SPEAKER_13

It's in doubt?

Admiral Kevin E. LundaySPEAKER_04

Yes, sir.

Chairman Mike Ezell (R-MS)SPEAKER_13

Very good. Thank you. Given these delays, what's your plan to maintain the readiness of the medium endurance cutter, MEC, fleet until it's replaced?

Admiral Kevin E. LundaySPEAKER_04

Well, Chairman, the 210-foot medium endurance cutters are increasingly expensive to maintain, and as Congressman Webster mentioned, that they often have holes in them that need to be repaired on any major dry dock or dockside availability. And so we have plans in the FY26 budget to decommission 3 of those aging 210-foot cutters. Now, our 270-foot cutters, they're not quite as old. We are continuing a process to conduct a service life extension program of 6 of those 13 270-foot cutters. That's being conducted up at our Coast Guard Yard. That will extend the life of half of that fleet to enable us to bridge the gap until the delivery of the offshore patrol cutter and the operational—those join the operational fleet.

Chairman Mike Ezell (R-MS)SPEAKER_13

Very good the administration has put out an RFI that includes the option of building icebreakers in foreign yards. As you are aware, Coast Guard vessels are required to be built in the United States under unless the president provides a national security waiver. Can you provide in greater detail why the administration included foreign yards in its RFI?

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, part of that RFI, working with the administration, is to provide as much information and options to the president to inform the president's decision within the president's discretion. What I would say, sir, is that since 1790, when our first Coast Guard cutters were built, all of them have been built in U.S. shipyards by American labor, craftsmen and tradesmen who are skilled at what they do. And they have delivered superior ships and cutters that we've operated for almost 235 years, with rare exception. And as we saw last week on the Gulf Coast, both in shipyard in Bollinger, Mississippi, and at Austal, we saw those same American craftsmen and tradesmen hard at work building the next generation of Coast Guard cutters.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you. And you can provide us assurance that the United States will have every opportunity to compete for the Coast Guard's icebreaker business.

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, the president has issued an executive order on restoring America's maritime dominance, another executive order on the defense industrial base that moves to restore American competitiveness in that, including in shipbuilding. So I don't think I could say it any better than the president has.

Chairman Mike Ezell (R-MS)SPEAKER_13

Great. It appears there's been some significant resistance from the Coast Guard on the issue of automated systems aboard some commercial vessels. In 2020, the Coast Guard reversed a longstanding practice of authorizing engine room crewing reductions for articulated tug barges, or ATBs, with automation. Most recently, the Coast Guard declined to implement a statutory change in the FY 2023 NDAA permitting the agency to issue certificates of inspection for automated systems ATBs with reduced engine crewing. Given the significant advances in technology and in coordination with Force Design 2028's pillar on technology, I believe automation on commercial vessels is here to stay. Vessel operators have made significant investments in automated machinery, which increase vessel safety and reliability and enhance the mariner's situational awareness. Most importantly, I understand that the available data on automated systems ATBs demonstrates that they are operated safely for years without— safely for years with reduced crewing. The Coast Guard should keep pace with technology, technological innovations, and engage constructively with industry. Doing so keeps in line with Force Design 2028's pillar on technology, which reads, "The Coast Guard will accelerate the adoption of secure, state-of-the-art technology to enhance data sharing, situational awareness, and operational effectiveness." The default answer cannot be simply no, and that especially applies when Coast Guard enacts laws that the Coast Guard is obligated to implement. Can you give me a little response on that, please?

Admiral Kevin E. LundaySPEAKER_04

Well, Mr. Chairman, the articulated tug and barge, those have grown, continue to grow in size and employment. And with the implementation of Subchapter M, the minimum manning of two engineers is the standard that's currently applied. As those have gotten larger, we've seen them approach the size of some tank ships that have a separate manning requirement of four engineers. Now, facilitating commerce is critically important. It's one of our primary responsibilities, and that includes the safe movement of commerce. And I know maritime industry shares that same priority. Now, while we agree that technology has enabled those engineers that are standing watch on the ATBs to be more successful and more efficient at standing watch, we don't believe that the technology is sufficiently advanced in robotics and automation to be able to reduce below the current levels in Subchapter M what those standards are. But we look forward to working with industry and also with the committee on as we see advances in that technology and when the opportunity might be in the future to change that manning standard. But for now, we feel that is the safe standard for ATBs.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you, Admiral. I yield back. Mr. Carbajal, would you like to

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Thank you, Mr. Chair. A lot has been said today about the positive Coast Guard funding in the bad, really bad reconciliation bill. While I've made it clear that I support significant increases to our Coast Guard budget, I believe it shouldn't come on the backs of other Americans. Has the Coast Guard determined how many Coast Guard veterans will be at risk of losing Medicaid coverage if H.R. 1 passes?

Admiral Kevin E. LundaySPEAKER_04

Now Ranking Member Carbajal.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

We might want to look at that because I think the numbers are staggering. Force Design 2028 is at best the concept of a plan. Yet despite not having a detailed plan, the secretary has ordered the removal of at least 25% of the flag corps. How did the Coast Guard land on a 25% reduction? And what data and evidence did the service use in determining that it had too many admirals?

Admiral Kevin E. LundaySPEAKER_04

Ranking Member Carbajal, the Secretary signed out a memo directing the reduction this year by no less than 25% of the flag corps. And in that memo, it also specified that the five Coast Guard flag officers that are assigned to combatant commands under the Department of Defense remain intact, and the Office of Chief Prosecutor also remain intact. And so we are looking to develop the plan. The full plan, as I said, was part of the Force Design 2028 Implementation Plan, and we look forward to briefing you on that plan. But that is the the information I have now.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Were you consulted on the 25% reduction?

Admiral Kevin E. LundaySPEAKER_04

The Secretary's direction for 25% was provided, and then it was up to me to determine this year given the movements of flag officers and the importance of maintaining leadership continuity and continuity of command of flag positions, that I make decisions. And those were the ones you saw reflected on the 25th of July in the release of the flag assignment message.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Admiral, I'm going to challenge your lawyerly talent. Were you consulted in reaching the 25% reduction? Yes. If you could just answer yes or no.

Admiral Kevin E. LundaySPEAKER_04

Yes, I was part of discussions with the departmental leadership before the Secretary signed that memo. Yes, sir.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

Thank you very much, Mr. Chair. I yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. Chair now recognizes Mr. Mast for his 5 minutes of questioning or additional time if you need it, sir.

Rep. Brian Mast (R-FL)SPEAKER_14

Well, thank you, Mr. Chairman. I appreciate that. Admiral, congratulations. Absolutely. Got to be monumental, monumental to be able to take the reins. So I congratulate you on that. I want to talk a little bit about the Coast Guard's operations in the state of Florida. Probably no surprise, I'm a representative of the state of Florida. Seen a number of different attempts to enter our waters and then ultimately make their way to shore—individuals coming from Haiti, individuals coming from the Bahamas, oftentimes to their own deaths as they capsize their vessels, things like that, miles and miles offshore. But I just wanted to walk through that a little bit, have some conversation about your layer, where that layers with state law enforcement, with local law enforcement, how everything is working together. Are there technologies that we need to bring to bear? Are there threats that you're seeing? Just today the news has been paying attention to the drone strike that Ukraine conducted against Russia 1,000 miles inland. But what are you doing to deal with threats as it relates to drones powered by by AI to identify specific vessels or individuals in uniforms, things like that. Just want to have a conversation about these things and see where you land on the vulnerabilities and what we're doing about them.

Admiral Kevin E. LundaySPEAKER_04

Well, Congressman, on the the southern border, where the president's declared a national emergency, in the Coast Guard we view that as a system. So most people think, of course, of the southwest border, including the maritime portions. But for us, that's also the southeast maritime border, approaching the state of Florida and also our territories in the Caribbean, from threats of migration, illegal migration from Haiti and Cuba and the Bahamas, as you said, as well as movement of drugs and other threats. And so that is just as high a priority and part of what we view as our response to that presidential national emergency. As you know, sir, that's under the leadership and command of Admiral Doug Schofield in the 7th District, along with Admiral Nate Moore in Atlantic Area. And so that remains a high priority. In terms of the collaboration with other federal agencies and the state and local, it is probably the gold standard of cooperation that I've seen across the Coast Guard. Though we work hand in hand with federal, state, and local and county law enforcement to address the range of threats that are approaching by sea, and we do that successfully. Sir, you asked about the concerns about counter-UAS or UAS threat. And we we're also concerned about that. We have a mobile deployable capability in our Maritime Security Response Teams, one on the West and the East Coast. And then we have two fixed systems, one installed on a fast response cutter in New England, the other in Southern California, to address counter-UAS threats, but that's not enough capacity. My concern is we've got to scale and we've got to scale fast to address the kind of evolving dynamic threat that we've seen that was reflected, as you said, sir, in the in the dynamic strike that we've seen news reports of in Ukraine from Ukraine into Russia.

Rep. Brian Mast (R-FL)SPEAKER_14

good. As you look at that, I've got to know a lot of my Coasties over the years. I live in Fort Pierce. We have a small Coast Guard station in Fort Pierce there, great individuals. And so I would just take that opportunity to thank them for their service as my neighbors, friends and neighbors that have worked there. To move a little bit more specifically to some of those threat profiles, what's the greater threat profile going on right now given, I don't want to say change in operations since the change of presidency, but the change in the way those operations are being enforced? You have the same core mission sets that you had then, but new president, new way of operating. So has the threat profile changed in terms of individuals attempting to come across our borders and the volume of people coming across our borders? Has that volume changed?

Admiral Kevin E. LundaySPEAKER_04

Well, in some ways it's changed, Congressman. So we've seen a drop in attempted illegal maritime migration from Cuba and Haiti, but the conditions inside those countries that would drive migration have not changed. So our strong enforcement presence is keeping that pressure for attempted movement of illegal migration into the U.S., particularly South Florida, that's keeping that at bay.

Rep. Brian Mast (R-FL)SPEAKER_14

And any change or not change with the threat profile for drugs?

Admiral Kevin E. LundaySPEAKER_04

We still are concerned about the movement of drugs toward Florida and the rest of the southern border, sir. There is record cocaine production in Central and South America, and so as we ratchet down pressure on certain parts of the southern border, like the land portion, we expect to see and have seen increased movement and pressure by those cartels to try and move drugs and people by maritime means. And so, that's why our increased presence off of California and then off of Texas in the Gulf of America is so critical to addressing and making sure that they are not—those cartels are not successful in moving those threats along the maritime side.

Rep. Brian Mast (R-FL)SPEAKER_14

Okay, well, thank you, Admiral. I appreciate it. Chairman, thank you for the time. I yield back.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields. You're not going to believe this, Admiral, but I've got a couple of more questions. The Coast Guard plans to acquire larger cutters and aircraft over the next decade. And the reconciliation bill provides a substantial boost to those efforts. However, despite repeated requests from this subcommittee, we have yet to receive a detailed plan on where those new assets will be based, as well as a plan to build out the required infrastructure needed to operate them. These projects take years, and if you don't start now, you'll be running into a serious problem when these new assets come online. When the committee asked for a plan, we were provided with a short document purportedly listing future homeports. For reference, we have created a chart here with this information, which can be seen on the screen. Does the Coast Guard have a long-term plan for the shoreside capital investments needed to homeport new cutters and aircraft that it plans to bring online for the next dec- decade? If so, can you commit to providing the committee with a detailed schedule and cost projections for those projects?

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, we will provide a plan on the homeport to the degree we have that information solidified. On the chart you see here, I would note that, uh, the difference— but, you know, there's a notation to not publicly announced. Um, that's different than the to be determined. Not public announcement— we may have a very strong plan for a homeport for particular cutters or series of cutters, but it's not quite ready for public announcement because we don't want to change those decisions once they've been publicly revealed. But I think what this also reflects, Mr. Chairman, is that with the challenges we've had with funding year after year, and oftentimes the money for homeporting, which is often— it's funded not necessarily at the same pace as our cutters are that are going to be homeported in those places where the shore infrastructure needs to be built out, that we often are relying on unfunded priority lists and the support of Congress above the top line to be able to fund those projects. And so it doesn't enable us to deliver with confidence because we don't have that funding what the projected home ports are going to be, because we don't have— haven't had the confidence to make those decisions in a way that fills out the chart the way that you would want to.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you. The environmental compliance project backlog impact statement contained in FY 2026 budget represents $163 million in environmental cleanup cost, significantly underestimating the service's liabilities. Is the Coast Guard considering the significant environmental remediation efforts and associated costs that will go along with these projects when preparing for project budgets?

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, the environmental remediation costs are present in every part of the lifecycle from planning to maintenance and sustainment to disposition. And so there are always a significant part or cost that's involved in the, in the process of managing the shore infrastructure. So the— for new shore infrastructure or recapitalization, some of the support that the committee has provided in Congress for survey and design is critically important to enabling us to adequately assess and identify what those environmental remediation costs are. So that we can include them in the requests so that when those requests come to you, they're more mature and we have higher confidence in them and we won't have to come back for more additional funding.

Chairman Mike Ezell (R-MS)SPEAKER_13

Final question. Reconciliation provides $4.3 billion for polar security vessels and nearly $5 billion for Arctic security cutters and domestic icebreakers. Without these investments, will the Coast Guard be able to maintain a presence in the Arctic, protect American sovereignty, and guard our national interests?

Admiral Kevin E. LundaySPEAKER_04

Mr. Chairman, the polar icebreaker program is our highest acquisition priority. The nation needs those icebreakers to not only control, secure, and defend our border around Alaska, but ensure U.S. sovereignty throughout the increasingly navigable Arctic Ocean. But it requires that icebreaker capability, and so they are essential to national security and preserving our national security.

Chairman Mike Ezell (R-MS)SPEAKER_13

Thank you, Mr. Carbajal.

Ranking Member Salud Carbajal (D-CA)SPEAKER_01

I don't have any other additional questions, Mr. Chair. All right, let's see where we at.

Chairman Mike Ezell (R-MS)SPEAKER_13

Gentleman yields back. Uh, if there are no further questions from any members of the subcommittee who have not been recognized, would like to say anything? Seeing none, that concludes the hearing for today. I would like to thank you And I thank you all for being here today. For each one of our witnesses, your testimony. The subcommittee now stands adjourned.