Department of the Navy Fiscal Year 2026 Budget Highlights

WASHINGTON - June 26, 2025 - The Department of the Navy’s (DON) FY 2026 President’s Budget (PB26) request is $292.2B comprised of $248.9B in base (discretionary) funds and $43.3B in mandatory (reconciliation) funds, an increase of $29.2B/11.1% from the FY 2025 enactment. The budget request resources the DON leadership priorities supporting the Interim National Defense Strategic Guidance that focuses on the President’s commitment to restore peace through strength in the face of threats. The Secretary of Defense identified key efforts to achieve the President’s mission: restoring the warrior ethos, rebuilding our military, and reestablishing deterrence.

Secretary of the Navy John Phelan developed three priorities to steer the DON and shape the future of our fleet and force in support of POTUS and SECDEF direction. These priorities are the foundation for PB26: 1) Strengthen Shipbuilding and the Maritime Industrial Base, 2) Foster an Adaptive, Accountable and Innovative Warfighter Culture, and 3) The Health, Welfare and Training of Our People and Their Families. The DON will rebuild, reform, and refocus on what matters – Readiness, Accountability, and Deterrence. The A-CNO’s Navigation Plan for America’s Warfighting Navy prioritizes capabilities and enablers to raise our baseline level of readiness to respond in competition, crisis, and conflict. The CMC’s Planning Guidance core purpose remains the same: to deter conflict, and when deterrence fails, to defeat our Nation’s enemies in battle.

The PB26 request reflects one budget request which may require two congressional bills (discretionary & mandatory) to be enacted.

HIGHLIGHTS

• Provides for a deployable battle force of 287 ships in FY 2026 (115 surface combatants, 63 submarines, 36 support ships, 31 combat logistics, 31 amphibious, and 11 aircraft carriers).

  
  

• Procures 19 battle force ships in FY 2026 – 3 in base (1 COLUMBIA, 1 VA Class, and 1 TAGOS) and 16 in mandatory (2 DDG-51, 1 VA Class, 1 LPD, 1 LHA(R), 9 LSM, and 2 T-AO.

  
  

• Procures 43 fixed-wing, rotary-wing, and unmanned aircraft in FY 2026 – all in base (23 JSF, 12 CH-53K, 4 E-2D, 3 MQ25, 1 UC-12).

  
  

• R&D invests in developing and deploying future capabilities for all types of conflict including nuclear cruise missiles, TACAMO modernization, unmanned vehicles, and classified efforts.

  
  

• Prioritizes Quality of Life and Quality of Service initiatives to ensure that our Civilians, Sailors, Marines, and their families have the resources available to succeed when called upon to meet the mission. Provides a pay raise of 3.8% to military personnel.

  
  

• Over $1B invested to strengthen warfighters’ intellectual edge through Naval and Marine Corps education programs. $25M for Tuition Assistance is part of the mandatory request.

  
  

• The Marine Corps is halfway through a transformational force modernization effort and is at a critical juncture to deter adversaries, protect the homeland, and provide global crisis response. • Military Construction funds 48 projects (37 Active Navy/11 Active Marine Corps) in support of new mission, recapitalization of aging infrastructure, shipyard improvements, and global posture. Planning and design funds future projects for the Shipyard Infrastructure Optimization Program and INDOPACOM requirements. $749M is part of the mandatory request.

  
  

• Family Housing funds 3 construction projects, improvement efforts for revitalization of homes, maintenance of ~8,650 government owned units and ~1,650 leased units, and planning and design activities support projects primarily in Guam and Japan.

  
  

• Sustains current readiness in key accounts: ship maintenance ($16.2B: base); ship operations ($7.3B: $5.4B base, $1.9B mandatory); flying hours ($10.6B Active & $11.4B Reserve: base); air depot maintenance ($1.8B Active: base & $2.0B Reserve: $1.9B base, $0.1B mandatory); Marine Corps depot maintenance ($0.3B: $0.02B base, $0.28B mandatory); and facilities sustainment, restoration, and modernization to include unaccompanied housing projects to improve barracks ($5.7B Navy: $4.0B base, $1.7B mandatory & $3.4B Marine Corps: $2.1B base, $1.3B mandatory).

  
  

• Eliminates wasteful spending by reducing lower valued programs (i.e. DEI, climate, contract services, IT services, workforce optimization) and reinvests funds towards departmental priorities.

Source:  Deputy Assistant Secretary of the Navy (Budget)