A new government watchdog report says the Navy’s program to overhaul its four public shipyards could cost more than $200 billion and take 50 years to complete, nearly ten times the initial cost estimate and more than double the original timeline.
The Government Accountability Office (GAO) released the report on Sept. 25, 2026, examining the Shipyard Infrastructure Optimization Program (SIOP), which began in 2018. The program aims to upgrade drydocks and standard equipment at the Navy’s four shipyards in Virginia, Maine, Washington, and Hawaii, which handle repairs for the Navy’s nuclear-powered aircraft carriers and submarines.
Initially, the Navy estimated the effort would take about 20 years and cost approximately $21 billion. The GAO report says the project could now take 50 years and cost $200 billion. The report states that the initial estimate “omitted key costs,” and that factors including commodity price increases and seismic concerns at Puget Sound Naval Shipyard requiring “needed retrofits and construction” are driving up costs and adding time to the program.
“Developing the plans and cost estimates to rebuild the Navy’s four public shipyards has taken the Navy years longer — and will cost much more — than originally anticipated due to multiple challenges and changes involved in the program,” the report said.
The GAO also found that more shipyard construction and repair projects have been added to SIOP since 2018, and that the Navy has implemented design changes based on “lessons learned from projects already underway.” For example, the costs for dry-dock projects in Portsmouth and Pearl Harbor grew by more than $2.5 billion since funding was originally requested from Congress.
The GAO noted that the Navy is not required to submit a consolidated report to lawmakers on SIOP program costs and risks, but instead shares updates on “various aspects” of the program. The GAO recommended that Congress require the Navy to provide an annual, standardized report detailing the program’s cost and status.
“Without a full picture of how much has been spent, what remains to be funded, and what risks may affect SIOP progress, Congress could make consequential decisions for SIOP based on incomplete information, thus risking billions in taxpayer dollars and a lack of program oversight for the decades to come,” the GAO report said.
Navy officials previously told Breaking Defense in 2025 that they predict a 10 percent improvement in aircraft carrier maintenance and a 15 percent improvement for submarine maintenance once SIOP is complete. Typically, a submarine maintenance availability lasts 25 to 36 months, but improvements from SIOP would reduce that by approximately three months, officials said.
Meanwhile, President Donald Trump is pushing for a fifth public shipyard to bolster aircraft carrier and submarine readiness.
Sources: DVIDS News · Breaking Defense