[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]

REVIEW OF FISCAL YEAR 2025 MARITIME TRANSPORTATION BUDGET REQUESTS, PT.
2: THE COAST GUARD

=======================================================================

(118-59)

HEARING

BEFORE THE

SUBCOMMITTEE ON
COAST GUARD AND MARITIME TRANSPORTATION

OF THE

COMMITTEE ON
TRANSPORTATION AND INFRASTRUCTURE
HOUSE OF REPRESENTATIVES

ONE HUNDRED EIGHTEENTH CONGRESS

SECOND SESSION

__________

MAY 23, 2024

__________

Printed for the use of the
Committee on Transportation and Infrastructure

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

______

U.S. GOVERNMENT PUBLISHING OFFICE
56-929 WASHINGTON : 2024

Available online at: https://www.govinfo.gov/committee/house-
transportation?path=/browsecommittee/chamber/house/committee/
transportation
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

Sam Graves, Missouri, Chairman
Rick Larsen, Washington, Ranking
Member
Eleanor Holmes Norton, Eric A. ``Rick'' Crawford,
District of Columbia Arkansas
Grace F. Napolitano, California Daniel Webster, Florida
Steve Cohen, Tennessee Thomas Massie, Kentucky
John Garamendi, California Scott Perry, Pennsylvania
Henry C. ``Hank'' Johnson, Jr., Georgiaian Babin, Texas
Andre Carson, Indiana Garret Graves, Louisiana
Dina Titus, Nevada David Rouzer, North Carolina
Jared Huffman, California Mike Bost, Illinois
Julia Brownley, California Doug LaMalfa, California
Frederica S. Wilson, Florida Bruce Westerman, Arkansas
Mark DeSaulnier, California Brian J. Mast, Florida
Salud O. Carbajal, California Jenniffer Gonzalez-Colon,
Greg Stanton, Arizona, Puerto Rico
Vice Ranking Member Pete Stauber, Minnesota
Colin Z. Allred, Texas Tim Burchett, Tennessee
Sharice Davids, Kansas Dusty Johnson, South Dakota
Jesus G. ``Chuy'' Garcia, Illinois Jefferson Van Drew, New Jersey,
Chris Pappas, New Hampshire Vice Chairman
Seth Moulton, Massachusetts Troy E. Nehls, Texas
Jake Auchincloss, Massachusetts Tracey Mann, Kansas
Marilyn Strickland, Washington Burgess Owens, Utah
Troy A. Carter, Louisiana Rudy Yakym III, Indiana
Patrick Ryan, New York Lori Chavez-DeRemer, Oregon
Mary Sattler Peltola, Alaska Thomas H. Kean, Jr., New Jersey
Robert Menendez, New Jersey Anthony D'Esposito, New York
Val T. Hoyle, Oregon Eric Burlison, Missouri
Emilia Strong Sykes, Ohio Derrick Van Orden, Wisconsin
Hillary J. Scholten, Michigan Brandon Williams, New York
Valerie P. Foushee, North Carolina Marcus J. Molinaro, New York
Vacancy Mike Collins, Georgia
Mike Ezell, Mississippi
John S. Duarte, California
Aaron Bean, Florida
Celeste Maloy, Utah
Kevin Kiley, California
Vacancy
------ 7

Subcommittee on Coast Guard and Maritime Transportation

Daniel Webster, Florida, Chairman
Salud O. Carbajal, California, Ranking Member
Brian Babin, Texas John Garamendi, California
Brian J. Mast, Florida Chris Pappas, New Hampshire
Jenniffer Gonzalez-Colon, Jake Auchincloss, Massachusetts
Puerto Rico Mary Sattler Peltola, Alaska
Jefferson Van Drew, New Jersey Hillary J. Scholten, Michigan,
Mike Ezell, Mississippi, Vice Vice Ranking Member
Chairman Rick Larsen, Washington (Ex
Aaron Bean, Florida Officio)
Sam Graves, Missouri (Ex Officio)

CONTENTS

Page

Summary of Subject Matter........................................ v

STATEMENTS OF MEMBERS OF THE COMMITTEE

Hon. Daniel Webster, a Representative in Congress from the State
of Florida, and Chairman, Subcommittee on Coast Guard and
Maritime Transportation, opening statement..................... 1
Prepared statement........................................... 2
Hon. Salud O. Carbajal, a Representative in Congress from the
State of California, and Ranking Member, Subcommittee on Coast
Guard and Maritime Transportation, opening statement........... 3
Prepared statement........................................... 4
Prepared statement of Hon. Rick Larsen, a Representative in
Congress from the State of Washington, and Ranking Member,
Committee on Transportation and Infrastructure................. 33

WITNESSES

Admiral Linda L. Fagan, Commandant, U.S. Coast Guard, oral
statement...................................................... 6
Prepared statement........................................... 7
Master Chief Heath B. Jones, Master Chief Petty Officer of the
Coast Guard, U.S. Coast Guard, oral statement \\....... 11

APPENDIX

Questions to Admiral Linda L. Fagan, Commandant, U.S. Coast
Guard, from:
Hon. Jefferson Van Drew...................................... 35
Hon. Salud O. Carbajal....................................... 35

----------
\\ Master Chief Heath B. Jones did not submit a prepared
statement for the record.

May 17, 2024

SUMMARY OF SUBJECT MATTER

TO: LMembers, Subcommittee on Coast Guard and Maritime
Transportation
FROM: LStaff, Subcommittee on Coast Guard and Maritime
Transportation
RE: LCoast Guard and Maritime Transportation
Subcommittee Hearing on ``Review of the Fiscal Year 2025
Maritime Transportation Budget Requests, Pt 2: The Coast
Guard''
_______________________________________________________________________

I. PURPOSE

The Subcommittee on Coast Guard and Maritime Transportation
of the Committee on Transportation and Infrastructure will hold
a hearing on Thursday, May 23, 2024, at 10:00 a.m. EDT in 2167
Rayburn House Office Building to receive testimony on the
President's Fiscal Year (FY) 2025 Budget Request for the United
States Coast Guard (Coast Guard or Service). The Subcommittee
will hear testimony from the Commandant and Master Chief Petty
Officer of the United States Coast Guard.

II. BACKGROUND

The Coast Guard was established on January 28, 1915,
through the consolidation of the Revenue Cutter Service
(established in 1790) and the Lifesaving Service (established
in 1848).\1\ The Coast Guard later assumed the duties of three
other agencies: the Lighthouse Service (established in 1789),
the Steamboat Inspection Service (established in 1838), and the
Bureau of Navigation (established in 1884).\2\
---------------------------------------------------------------------------
\1\ United States Coast Guard, History Timeline, available at
https://www.history.uscg.mil/home/history-program/.
\2\ Id.
---------------------------------------------------------------------------
Under Section 102 of Title 14, United States Code, the
Coast Guard has primary responsibility to enforce or assist in
the enforcement of all applicable Federal laws on, under, and
over the high seas and waters subject to the jurisdiction of
the United States; to ensure the safety of life and property at
sea; to carry out domestic and international icebreaking
activities; and, as one of the six armed forces of the United
States, to maintain defense readiness to operate as a
specialized service in the Navy upon the declaration of war or
when the President directs.\3\ Its 11 statutory missions are
codified in the Homeland Security Act of 2002: Ports, Waterways
and Coastal Security; Drug Interdiction; Aids to Navigation;
Search and Rescue; Living Marine Resources; Marine Safety;
Defense Readiness; Migrant Interdiction; Maritime Environmental
Protection; Polar, Ice, and Alaska Operations; and Law
Enforcement.\4\
---------------------------------------------------------------------------
\3\ 14 U.S.C. Sec. 102.
\4\ 6 U.S.C. Sec. 468.
---------------------------------------------------------------------------
The Coast Guard is directed by a Commandant appointed by
the President, with the advice and consent of the Senate, to a
four-year term.\5\ Admiral Linda L. Fagan was sworn in as the
27th Commandant of the Coast Guard in June 2022.\6\ The
Commandant selects a Master Chief Petty Officer of the Coast
Guard, who is her principal advisor on enlisted personnel
matters.\7\ Master Chief Heath Jones assumed the duties of the
14th Master Chief Petty Officer of the Coast Guard on May 19,
2022.\8\
---------------------------------------------------------------------------
\5\ 14 U.S.C. Sec. 302.
\6\ United States Coast Guard, Biographies, available at https://
www.uscg.mil/leadership/Senior-Leadership/MCPOCG/.
\7\ United States Coast Guard, Senior Coast Guard Leadership,
available at https://www.uscg.mil/Biographies/Display/Article/3048180/
admiral-linda-l-fagan/.
\8\ Id.
---------------------------------------------------------------------------

III. BUDGET FOR THE COAST GUARD

The President's FY 2025 budget request for the Coast Guard
and the FY 2024 enacted funding levels are shown below.\9\ A
comparison to the FY 2024 and FY2025 authorized levels as
reported out of the Transportation and Infrastructure Committee
(T&I) and as passed by the House of Representatives,
respectively, is included in Appendix I.
---------------------------------------------------------------------------
\9\ United States Coast Guard, FY 2025 Congressional Budget
Justification (2024), available at https://www.dhs.gov/sites/default/
files/2024-04/2024_0322_us_coast_guard.pdf [hereinafter Budget
Justification]; Consolidated Appropriations Act, 2024, Pub. L. No. 118-
47 [hereinafter 2024 CAA].

Coast Guard FY 2024 Enacted to FY 2025 President's Budget Request Comparison
(Dollars in Thousands)
----------------------------------------------------------------------------------------------------------------
President's FY FY 2024 to FY FY 2024 to
Program FY 2024 2025 Budget 2025 Change FY 2025
Enacted Request ($) Change (%)
----------------------------------------------------------------------------------------------------------------
Operations and Support (O&S)....................... $ 10,054,771 $ 10,466,283 $ 411,512 4.1%
Medicare-Eligible Retiree Health Care Fund (MERHCF) $ 277,000 $ 281,851 $ 4,851 1.8%
Procurement, Construction and Improvements (PC&I).. $ 1,413,950 $ 1,564,650 $ 150,700 10.7%
Research and Development (R&D)..................... $ 7,476 $ 6,763 $ (713) -9.5%
Housing Fund .............................. $ 4,000 $ 4,000 $ - 0%
------------------------------------------------------------
Subtotal, Discretionary.......................... $ 11,753,197 $ 12,319,547 $ 566,350 4.8%
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Retired Pay........................................ $ 1,147,244 $ 1,210,840 $ 63,596 5.5%
State Boating Safety Grants........................ $ 144,340 $ 144,480 $ 140 0.1%
Maritime Oil Spill Program......................... $ 101,000 $ 101,000 $ - 0%
General Gift Funds................................. $ 2,864 $ 2,864 $ - 0%
------------------------------------------------------------
Subtotal, Mandatory.............................. $ 1,395,448 $ 1,459,184 $ 63,736 4.6%
------------------------------------------------------------
Total, Coast Guard............................. $ 13,148,645 $ 13,778,713 $ 630,086 4.8%
----------------------------------------------------------------------------------------------------------------
\\ Housing Funds are classified as a discretionary offsetting fee, meaning net spending totals to $0, in
the Coast Guard Congressional Justification. This figure reflects the spending of these collections. Housing
Funds appear as Administrative Provisions in the Joint Explanatory Statement as multiple line items.

FY 2025 COAST GUARD BUDGET REQUEST:

The President requests $13.8 billion for FY 2025 for the
activities of the Coast Guard, including $12.3 billion in total
discretionary funding.\10\ The FY 2025 request for
discretionary funding represents an increase of $566 million
(4.8 percent) from the FY 2024 enacted level. H.R. 7659, as
passed by the House of Representatives on May 14, 2024,
authorizes $14.8 billion in discretionary funding for FY
2025.\11\
---------------------------------------------------------------------------
\10\ Budget Justification, supra note 9.
\11\ Coast Guard Authorization Act of 2024, H.R. 7659, 118th Cong.
(2024) (noting this legislation was passed out of the House of
Representatives on May 14, 2024) [hereinafter CGAA 2024].
---------------------------------------------------------------------------

OPERATIONS AND SUPPORT (O&S):

The President requests $10.47 billion for the O&S account
for FY 2025, a $412 million (4.1 percent) increase from the FY
2024 enacted level.\12\ H.R. 7659, as passed by the House of
Representatives, authorizes $11.3 billion for the O&S account
for FY 2025.\13\ The O&S account supports the day-to-day
activities of the Coast Guard including administrative
expenses, support costs, travel, lease payments, and the
operation and maintenance of infrastructure and assets. The O&S
account also funds personnel compensation and benefits for
approximately 44,000 military personnel and 9,000 civilian
employees.\14\ Included in this request is $5.5 billion for
military pay and personnel support, $439 million for mission
support, including enterprise management and environmental
compliance and restoration, and $4.5 billion for field
operations.\15\
---------------------------------------------------------------------------
\12\ Budget Justification, supra note 9.
\13\ CGAA 2024, supra note 11.
\14\ Budget Justification, supra note 9.
\15\ Id.
---------------------------------------------------------------------------
The O&S budget request includes increases in funding to
cover follow-on costs for the operation and maintenance of
newly acquired assets and technology and increases in other
administrative expenses.\16\ This includes $40 million for
personnel and operations and maintenance sustainment funding
for new cutters, boats, aircraft and capabilities--six Fast
Response cutters; four MH-60 helicopters; eight Maritime
Security Response Team boats; shoreside maintenance and support
personnel for Offshore Patrol Cutters #3 and #4; crew for
Waterways Commerce Cutter #1; and four hyperbaric recompression
chambers. The President's budget also requests $10 million for
the operations and maintenance of newly acquired or
recapitalized shore facilities in Puerto Rico, Florida, New
York, and Maryland.\17\
---------------------------------------------------------------------------
\16\ Id.
\17\ United States Coast Guard Fact Sheet, FY 2025 President's
Budget, available at https://www.uscg.mil/Portals/0/documents/budget/
2025/FY%202025%20Budget%20Fact
%20Sheet.pdf.
---------------------------------------------------------------------------
The President's budget requests $1.8 million in additional
resources to field the investigators and legal personnel
necessary to improve the Coast Guard's ability to combat sexual
misconduct and enabling behaviors in the maritime
community.\18\ It also requests $4.9 million in additional
resources to support the transformation of the mariner
credentialing program, $4.2 million for the purchase of body
worn cameras, and $22 million in additional resources for
additional Fast Response Cutter mission support and personnel
to increase engagement in the Indo-Pacific region.\19\ H.R.
7659, as passed by the House of Representatives, authorizes $11
million to fund the acquisition, development, and
implementation of a new credentialing system for the Merchant
Mariner credentialing program.\20\
---------------------------------------------------------------------------
\18\ Budget Justification, supra note 9.
\19\ Id.
\20\ CGAA 2024, supra note 11.
---------------------------------------------------------------------------
The proposed O&S increases are offset in part by proposed
cuts derived through program decreases totaling $84.9 million
and decommissioning and retiring certain legacy assets for
$24.3 million, which will result in a total cost savings of
$109 million and 995 full-time equivalent positions.\21\
Specifically, the FY 2025 budget request proposes program
decreases of $17 million for the National Coast Guard Museum,
$55 million for military workforce gap temporary reduction,
$4.6 million in travel reductions, and $7 million in contract
reductions.\22\ It also proposes the decommissioning of:
---------------------------------------------------------------------------
\21\ Budget Justification, supra note 9.
\22\ Id.
---------------------------------------------------------------------------
LOne 210-foot Reliance Class Medium Endurance
Cutter ($10 million);
LOne 110-foot legacy Island Class Patrol Boat
($2.7 million);
LEight MH-65 helicopters in Kodiak ($9.4 million);
and
LTemporary disestablishment of a 175-foot legacy
Keeper Class Crew ($2.0 million).\23\
---------------------------------------------------------------------------
\23\ Id.
---------------------------------------------------------------------------

PROCUREMENT, CONSTRUCTION, AND IMPROVEMENTS (PC&I):

The President requests $1.56 billion for the PC&I account,
a $151 million (10.7 percent) increase over the FY 2024 enacted
level.\24\ H.R. 7659, as passed by the House of
Representatives, authorizes $3.5 billion for the PC&I account
for FY 2025.\25\ The PC&I account funds the acquisition,
procurement, construction, rebuilding, and physical
improvements of Coast Guard owned and operated vessels,
aircraft, facilities, aids-to-navigation (ATON), communications
and information technology systems, and related equipment.\26\
Specifically, the budget request includes funding requests for
sustainment and acquisition of several assets under PC&I which
are broken down below.\27\
---------------------------------------------------------------------------
\24\ Id.
\25\ CGAA 2024, supra note 11.
\26\ Budget Justification, supra note 9.
\27\ Id.
---------------------------------------------------------------------------

IN-SERVICE VESSEL SUSTAINMENT

Major Maintenance Availabilities (MMA) ensure in-service
vessels continue to meet their designed service life through
the recapitalization of hull, mechanical, electrical and
electronic systems that have been identified as the highest
contributors to maintenance costs and operational availability
degradation.\28\ Service Life Extension Programs (SLEPs)
increase the service life of in-service vessels without
significantly modifying capabilities. The budget requests: $148
million for in-service vessel sustainment, including $36
million for 47-ft Motor Life Boat SLEP; $65 million for 270-ft
Medium Endurance Cutter SLEP; $15 million for 175-ft Coastal
Buoy Tender MMA; and $20 million for CGC Healy SLEP, and $12
million for a National Security Cutter.\29\ H.R. 7659, as
passed by the House of Representatives, authorizes $36 million
for the service life extension program and any necessary
upgrades to the 47-foot Motor Life Boat.\30\
---------------------------------------------------------------------------
\28\ Id.
\29\ Id.
\30\ CGAA 2024, supra note 11.
---------------------------------------------------------------------------

NATIONAL SECURITY CUTTER (NSC)

The budget requests $7 million for post-delivery of an 11th
NSC and program close-out costs.\31\ The Coast Guard's Program
of Record (POR) originally called for eight NSCs to replace the
Service's fleet of twelve high endurance cutters.\32\ The NSCs
were originally intended to operate in excess of 185 days per
year to maximize operational capability, but based on crewing
and maintenance concerns, the Coast Guard now intends to
operate the vessels for a maximum of 185 days per year.\33\
Congress has funded eleven vessels.\34\ The tenth vessel is
scheduled for delivery later this year.\35\
---------------------------------------------------------------------------
\31\ Budget Justification, supra note 9.
\32\ Cong. Research Serv., R42567, Coast Guard Cutter Procurement:
Background and Issues for Congress (2023), available at https://
crsreports.congress.gov/product/pdf/R/R42567.
\33\ United States Coast Guard, Report to Congress: Analyzing Cost
and Performance for National Security Cutter Operational Employment (on
file with Comm.).
\34\ Budget Justification, supra note 9.
\35\ Id.
---------------------------------------------------------------------------

OFFSHORE PATROL CUTTER (OPC)

The budget requests $530 million for the construction of
OPC #7 and Long Lead Time Materials (LLTMs) for OPC #8.\36\ The
Coast Guard's POR calls for 25 OPCs to replace the Service's
aging fleet of 29 Medium Endurance Cutters (WMECs).\37\
Delivery of the first OPC is expected later in 2024, and
delivery of the second vessel is expected next year.\38\
---------------------------------------------------------------------------
\36\ Id.
\37\ Id.
\38\ Id.
---------------------------------------------------------------------------

FAST RESPONSE CUTTER (FRC)

The budget requests $216 million for two FRCs to support
the Service's operations in the Indo-Pacific.\39\ The final two
boats of the program would bring the program total to 69 FRCs
to replace the Service's fleet of 110-ft Island Class Patrol
Boats (WPBs). To date, 54 vessels have been delivered.\40\
Delivery of hulls 55 through 57 is anticipated to occur in FY
2023.\41\ H.R. 7659, as passed by the House of Representatives,
authorizes $216 million for the acquisition of two Fast
Response Cutters.\42\
---------------------------------------------------------------------------
\39\ Id.
\40\ Id.
\41\ Id.
\42\ CGAA 2024, supra note 11.
---------------------------------------------------------------------------

POLAR SECURITY CUTTER (PSC)

The budget does not call for additional funding for FY 2025
for the PSC.\43\ Sustainment of the program will occur with
prior years authorized funds.\44\ The Service's POR calls for
three PSCs to replace the service's two heavy icebreakers--only
one of which is still operational. The first PSC was expected
to be delivered in 2027.\45\ However, at best, the first hull
will likely not be delivered until the end of the decade.\46\
The program suffers from significant delays, and the Coast
Guard has failed to produce an updated cost estimate or
delivery estimate to the Committee.
---------------------------------------------------------------------------
\43\ Budget Justification, supra note 9.
\44\ Id.
\45\ Cong. Research Serv., R34391, Coast Guard Polar Security
Cutter Program: Background and Issues for Congress (2023), available at
https://crsreports.congress.gov/product/pdf/RL/RL34391.
\46\ Allyson Park, Coast Guard Reevaluating Polar Security Cutter
Schedule (Mar. 20, 2024), National Defense, available at: https://
www.nationaldefensemagazine.org/articles/2024/3/20/just-in-coast-guard-
reevaluating-polar-security-cutter-schedule.
---------------------------------------------------------------------------

WATERWAYS COMMERCE CUTTER PROGRAM

The budget requests $135 million to support project
management and production activities associated with the
current recapitalization of the Coast Guard's fleet of inland
tenders and barges.\47\
---------------------------------------------------------------------------
\47\ Id.
---------------------------------------------------------------------------

AIRCRAFT

The budget requests $205.9 million for aircraft, which
includes funding and sustainment of the HC-27Js received from
the United States Air Force, missionization for the HC-130J
aircraft, sustainment of MH-65 and MH-60 helicopters, and
installation of small unmanned aircraft systems (UAS)
capability on the NSC fleet.\48\ In its Unfunded Priority List
(UPL), the Coast Guard included $138.5 million for the purchase
of one missionized HC-130J.\49\
---------------------------------------------------------------------------
\48\ Id.
\49\ United States Coast Guard, FY 2024 Unfunded Priorities List
(2023), available at https://www.uscg.mil/Portals/0/documents/budget/
2025/USCG_Unfunded%20Priorities%20List
%20(FY2025).pdf [hereinafter 2025 UPL].
---------------------------------------------------------------------------

OTHER ACQUISITION PROGRAMS

The budget requests $141.7 million for other acquisition
programs, including investments in the Service's antiquated IT
technology.\50\ H.R. 7659, as passed by the House of
Representatives, authorizes $36.3 million to modernize IT
technology.\51\
---------------------------------------------------------------------------
\50\ Budget Justification, supra note 9.
\51\ CGAA 2024, supra note 11.
---------------------------------------------------------------------------

CONSTRUCTION AND FACILITIES MAINTENANCE

The budget request also includes $166.75 million for shore
facilities and ATON.\52\ This request is a decrease of
approximately $248 million from the FY 2024 enacted level.\53\
The Coast Guard estimates that there is a $1 billion deferred
shore facility maintenance backlog, while the Government
Accountability Office (GAO) approximated that number at $2.6
billion in February 2019 (likely higher today).\54\ As of 2018,
the deferred maintenance backlog included more than 5,600
projects, while the recapitalization and new construction
backlog included 125 projects.\55\ GAO's analysis of Coast
Guard data found that as of November 2018, there were hundreds
of recapitalization projects without cost estimates--
representing a majority of recapitalization projects.\56\ Coast
Guard officials told GAO that these projects were in the
preliminary stages of development.\57\ From that report, GAO
recommended that the Commandant of the Coast Guard employ
models for its asset lines to predict the outcome of
investments, analyze trade-offs, and optimize decisions among
competing investments.\58\ H.R. 7659, as passed by the House of
Representatives, authorizes $500 million to fund maintenance,
construction, and repairs for Coast Guard shoreside
infrastructure.\59\ Of this amount, $225 million is authorized
for the improvements to facilities at Training Center Cape May,
$10 million to create an infrastructure development plan for
the Coast Guard Academy, $50 million to complete repairs and
improvements of Chase Hall at the Academy, $70 million for a
floating drydock at Coast Guard yard in Baltimore, $40 million
for a HC-130J Hangar at Air Station Barbers Point in Hawaii,
and $90 million for waterfront improvements of Base
Seattle.\60\
---------------------------------------------------------------------------
\52\ Budget Justification, supra note 9.
\53\ 2024 CAA, supra note 9.
\54\ GAO, GAO-19-711T, Coast Guard Shore Infrastructure: Actions
Needed To Better Manage Assets and Reduce Risks and Costs (2019),
available at https://www.gao.gov/assets/gao-19-711t.pdf.
\55\ Id.
\56\ Id.
\57\ Id.
\58\ Id.
\59\ CGAA 2024, supra note 11.
\60\ Id.
---------------------------------------------------------------------------

RESEARCH AND DEVELOPMENT (R&D):

The President requests $6.76 million in FY 2025 for the
Coast Guard's R&D account, which represents a $713,000
reduction compared to the previous year's request.\61\ H.R.
7659, as passed by the House of Representatives, authorizes
$15.4 million for the R&D account for FY 2025.\62\ The R&D
account supports improved mission performance for the Service's
11 statutory missions through applied research and development
of new technology and methods.
---------------------------------------------------------------------------
\61\ Budget Justification, supra note 9.
\62\ CGAA 2024, supra note 11.
---------------------------------------------------------------------------
The Coast Guard intends to use the requested $6.76 million
in FY 2025 to develop technologies and systems that improve
operational presence and response, including the use of
uncrewed systems, polar operations, senior optimization,
automation and visualization, intelligence and cyber, and space
based operations.\63\ Of the funding, $500,000 is derived from
the Oil Spill Liability Trust Fund as authorized by the Oil
Pollution Act of 1990 (33 U.S.C. Sec. 2701-2761).\64\
---------------------------------------------------------------------------
\63\ Budget Justification, supra note 9.
\64\ Id.
---------------------------------------------------------------------------

IV. WITNESSES

LAdmiral Linda L. Fagan, Commandant, United States
Coast Guard
LMaster Chief Heath B. Jones, Master Chief Petty
Officer of the Coast Guard, United States Coast Guard

Appendix I: Coast Guard FY 2024 Enacted to FY 2025 President's Budget
Request Comparison

Coast Guard FY 2024 Enacted to FY 2025 President's Budget Request Comparison
(Dollars in Thousands)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2024
President's FY 2024 to to FY
Program FY 2024 FY 2024 FY 2025 FY 2025 FY 2025 2025
Authorized \65\ Enacted \66\ Authorized \67\ Budget Change ($) Change
Request \68\ (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Operations and Support (O&S)....................................... $ 10,750,000 $ 10,054,771 $ 11,287,500 $ 10,446,283 $ 411,512 4.1%
Medicare-Eligible Retiree Health Care Fund (MERHCF)................ $ $ 277,000 $ $ 281,851 $ 4,851 1.8%
Procurement, Construction, and Improvements (PC&I)................. $ 3,477,600 $ 1,413,950 $ 3,477,600 $ 1,564,650 $ 150,700 10.7%
Research and Development (R&D)..................................... $ 14,681 $ 7,476 $ 15,415 $ 6,763 $ (713) -9.5%
Housing Fund .............................................. $ $ 4,000 $ $ 4,000 $ - 0%
------------------------------------------------------------------------------------
Subtotal, Discretionary.......................................... $ 14,242,281 $ 11,753,197 $ 14,780,515 $ 12,319,547 $ 566,350 4.8%
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Retired Pay........................................................ $ 1,147,244 $ 1,147,244 $ 1,210,840 $ 1,210,840 $ 63,596 5.5%
State Boating Safety Grants........................................ $ $ 144,340 $ $ 144,480 $ 140 0.1%
Maritime Oil Spill Program......................................... $ $ 101,000 $ $ 101,000 $ - 0%
General Gift Funds................................................. $ $ 2,864 $ $ 2,864 $ - 0%
------------------------------------------------------------------------------------
Subtotal, Mandatory.............................................. $ $ 1,395,448 $ $ 1,459,184 $ 63,736 4.6%
------------------------------------------------------------------------------------
Total.......................................................... $ 15,389,525 $ 13,148,645 $ 15,991,355 $ 13,778,731 $ 630,086 4.8%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\\ Housing Funds are classified as discretionary offsetting fees. This figure reflects the spending of these collections. Housing funds appear
as Administrative Provisions in the Joint Explanatory Statement as multiple line items.

\\ \\ \\ \\
---------------------------------------------------------------------------
\65\ Coast Guard Authorization Act of 2023, H.R. 2741 [118th
Cong] This was reported with an amendment and committed to the House
of Representatives on June 27, 2023, but never was passed into law.
\66\ 2024 CAA, supra note 9.
\67\ CGAA 2024, supra note 11.
\68\ Budget Justification, supra note 9.

REVIEW OF FISCAL YEAR 2025 MARITIME TRANSPORTATION BUDGET REQUESTS, PT.
2: THE COAST GUARD

----------

THURSDAY, MAY 23, 2024

House of Representatives,
Subcommittee on Coast Guard and Maritime
Transportation,
Committee on Transportation and Infrastructure,
Washington, DC.
The subcommittee met, pursuant to call, at 10:02 a.m., in
room 2167 Rayburn House Office Building, Hon. Daniel Webster
(Chairman of the subcommittee) presiding.
Mr. Webster of Florida. The Subcommittee on Coast Guard and
Maritime Transportation will come to order.
I ask unanimous consent for the chairman to be authorized
to declare a recess at any time during today's hearing.
Without objection, show that ordered.
I ask unanimous consent that the Members not on the
subcommittee be permitted in the subcommittee today to ask
questions.
Without objection, show that ordered.
As a reminder to the Members, to insert a document into the
record, please also email it to DocumentsTI@mail.house.gov.
OK. I will now recognize myself for 5 minutes for the
purpose of an opening statement.

OPENING STATEMENT OF HON. DANIEL WEBSTER OF FLORIDA, CHAIRMAN,
SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION

Mr. Webster of Florida. We meet today to receive testimony
from the Coast Guard on the fiscal year 2025 budget request.
I would like to welcome our witnesses, Admiral Linda Fagan,
who is the Commandant of the Coast Guard, and Master Chief
Heath Jones, the Master Chief Petty Officer of the Coast Guard.
First, I would like to recognize the Coast Guard's
leadership in recovery and response efforts for the Francis
Scott Key Bridge collapse in Baltimore. I had a chance to go
view that. That was pretty awesome. This reminds us of the
vital importance of the Coast Guard in protecting our Nation's
waterways. We are here today to discuss what the Coast Guard
needs to continue that, providing that service.
While I applaud the increase in the President's budget for
both the operations and support and the procurement,
construction, and improvements accounts, I urge funding levels
in line with H.R. 7659, the Coast Guard Authorization Act of
2024, which recently passed the House. That measure authorizes
nearly double the currently requested amount for new vessels,
aircraft, IT, and shoreside infrastructure investments.
But even the House-passed authorization levels are not
generous. Funding at that level would only stop the growth of
the construction and maintenance backlog and fund those
acquisition programs already approved by the Department of
Homeland Security.
Admiral Fagan, during your address on the state of the
Coast Guard, you rightly recognized your Service's funding
challenges, admitting that your maintenance budget will only
cover half of the planned cutter maintenance projects in 2024.
I look forward to hearing you share what you are doing to
address those challenges.
I also look forward to hearing the update about your
recapitalization priorities, including plans for the Polar
Security Cutter and shoreside infrastructure. This subcommittee
has serious concerns about the combined budget impact of
simultaneous construction of the Polar Security Cutters and
construction of two Offshore Patrol Cutters per year for a
decade starting in fiscal year 2026. I expect to hear from you
today about your plan to move these programs forward.
Given the Coast Guard's current recruitment and retention
challenges, I also look forward to hearing what the Coast Guard
is doing to ensure that its members, who give so much to our
country, have the buildings, facilities, and IT support they
need and deserve.
The subcommittee greatly appreciates the hard work that the
Coast Guard does every day. Just last month, a young Coast
Guard pilot, Michael McCaslin, the brother of one of our T&I
Committee staffers, rescued a pregnant woman on a cruise ship
hundreds of miles off Puerto Rico. And just a few days ago, the
Coast Guard rescued seven people from a vessel after it was
disabled by a lightening strike that struck both the captain
and the vessel off the coast of my home State of Florida. This
demonstrates why you live up to your motto of semper paratus,
and we just really appreciate that.
This subcommittee urges you to be straightforward with
Congress about the Service's needs and ask for what you need to
carry out that mission.
Thank you for your participation today. I look forward to
your candid testimony.
[Mr. Webster of Florida's prepared statement follows:]

Prepared Statement of Hon. Daniel Webster of Florida, Chairman,
Subcommittee on Coast Guard and Maritime Transportation
I'd like to welcome our witnesses--Admiral Linda L. Fagan, the
Commandant of the Coast Guard, and Master Chief Heath B. Jones, the
Master Chief Petty Officer of the Coast Guard.
First, I'd like to recognize the Coast Guard's leadership in
recovery and response efforts for the Francis Scott Key Bridge collapse
in Baltimore. This reminds of us the vital importance of the Coast
Guard in protecting our nation's waterways. We are here today to
discuss what the Coast Guard needs to continue providing this service.
While I applaud the increase in the President's budget for both the
Operations and Support and the Procurement, Construction and
Improvements Accounts, I urge funding levels in line with H.R. 7659,
the Coast Guard Authorization Act of 2024, which recently passed House.
That measure authorizes nearly double the currently requested amount
for new vessels, aircraft, IT and shoreside infrastructure investments.
But even the House-passed authorization levels are not generous.
Funding at that level would only stop the growth of the construction
and maintenance backlog and fund those acquisition programs already
approved by the Department of Homeland Security.
Admiral Fagan, during your address on the state of the Coast Guard
you rightly recognized your Service's funding challenges, admitting
your maintenance budget will only cover half of planned cutter
maintenance projects in 2024. I look forward to hearing from you on
what you are doing to address those challenges.
I also look forward to hearing an update about your
recapitalization priorities, including plans for the polar security
cutter and shoreside infrastructure. This subcommittee has serious
concerns about the combined budget impact of simultaneous construction
of the polar security cutters (PSC), and the construction of two
Offshore Patrol Cutters per year for a decade starting in fiscal year
2026. I expect to hear from you today about your plan to move these
programs forward.
Given the Coast Guard's current recruitment and retention
challenges, I also look forward to hearing what the Coast Guard is
doing to ensure its members, who give so much to their country, have
the buildings, facilities, and IT support they need and deserve.
This subcommittee greatly appreciates the hard work the Coast Guard
does every day. Just last month, a young Coast Guard pilot, Michael
McCaslin, the brother of one of our T&I Committee staffers, rescued a
pregnant woman on a cruise ship hundreds of miles off Puerto Rico. And
just a few days ago the Coast Guard rescued seven people from a vessel
after it was disabled by a lightning strike that struck both the
captain and the vessel off the coast of my home state of Florida. This
demonstrates why you live up to your motto of semper paratus.
This subcommittee urges you to be straightforward with Congress
about the Service's needs and ask for what you need to carry out its
missions. Thank you for participating today--I look forward to your
candid testimony.

Mr. Webster of Florida. I now recognize Ranking Member
Carbajal for an opening statement for 5 minutes.
You are recognized.
Mr. Carbajal. Thank you, Mr. Chair.
Before I do that, I wanted to ask to be able to allow
Ranking Member Larsen's statement to be submitted for the
record.
Mr. Webster of Florida. Without objection, show that
ordered.
[Mr. Larsen's prepared statement is on page 33.]
Mr. Carbajal. Thank you.

OPENING STATEMENT OF HON. SALUD O. CARBAJAL OF CALIFORNIA,
RANKING MEMBER, SUBCOMMITTEE ON COAST GUARD AND MARITIME
TRANSPORTATION

Mr. Carbajal. Thank you, Mr. Chair, for calling today's
hearing on the fiscal year 2025 budget request for the U.S.
Coast Guard.
Admiral Fagan and Master Chief Jones, while the Service is
facing trying times, your leadership is instrumental in
supporting Coasties. You have done an outstanding job leading
the Service thus far, and I am confident that the Coast Guard
has a bright future under your leadership.
We expect a lot from our Coasties. Recently, they have
responded to the vessel collision and bridge collapse in
Baltimore, delivered supplies to iced-in McMurdo Station in the
Antarctic, and traversed the Taiwan Strait.
I was pleased that the fiscal year 2025 budget request
included a slight increase in discretionary funding, but still
more resources are needed to support the Service.
I have had the opportunity to visit numerous Coast Guard
stations around the country. While the new cutters and aircraft
I have seen are great, the people who are charged with
operating those assets are certainly strained.
Coasties in many cases are working in subpar buildings.
They are living hours away from their workplace due to
insufficient housing allowances. They are not able to take time
off because of workforce shortages. They often can't find
quality childcare. And so on.
I have heard from servicemembers across the country about
mental health concerns. Search and rescue, drug and migrant
interdiction, and extended deployments can take a serious
physical and mental toll. Coasties and their families deserve
the highest level of medical care regardless of their
geographic location.
If we don't take care of the Coasties, we cannot expect the
same Coast Guard we have come to rely on. Search and rescue
capacity will decline, more illegal drugs will make it across
our borders, more environmental disasters will occur as a
result of fewer vessel inspections and decreased response
capacity.
Congress must do better.
The Commandant has said that the Coast Guard needs to be a
$20 billion Service by 2030, and I believe that should be the
minimum.
Finally, I would be remiss if I didn't mention the Coast
Guard's efforts to address sexual assault and sexual harassment
and the culture change in the Service.
Turning a ship as old and large as the Coast Guard takes
strong leadership, time, and commitment. I am pleased to
witness strong leadership and commitment by Admiral Fagan and
believe that the Service is on the right course. This committee
continues to conduct vigorous oversight to ensure that the ship
stays on course.
As we discuss the Coast Guard's budget and ongoing resource
needs, I hope our witnesses will be candid. Congress and the
American people need to know what will happen if the Coast
Guard is not a $20 billion Service by 2030.
Mr. Chairman, I yield back.
[Mr. Carbajal's prepared statement follows:]

Prepared Statement of Hon. Salud O. Carbajal of California, Ranking
Member, Subcommittee on Coast Guard and Maritime Transportation
Thank you, Chair Webster, for calling today's hearing on the fiscal
year 2025 budget request for the U.S. Coast Guard.
Admiral Fagan and Master Chief Jones: while the Service is facing
trying times, your leadership is instrumental in supporting Coasties.
You've done an outstanding job leading the Service thus far, and I'm
confident that the Coast Guard has a bright future.
We expect a lot from our Coasties. Recently, they have responded to
the vessel collision and bridge collapse in Baltimore, delivered
supplies to iced-in McMurdo Station in the Antarctic and traversed the
Taiwan Strait.
I was pleased that the fiscal year 2025 budget request included a
slight increase in discretionary funding, but still more resources are
needed to support the Service.
I've had the opportunity to visit numerous Coast Guard stations
around the country.
While the new cutters and aircraft I have seen are great, the
people charged with operating those assets are strained.
Coasties, in many cases, are working in subpar buildings. They are
living hours away from their workplace due to insufficient housing
allowances. They're not able to take time off because of workforce
shortages. They often can't find quality childcare.
I've heard from servicemembers across the country about mental
health concerns. Search and rescue, drug and migrant interdiction and
extended deployments can take a serious physical and mental toll.
Coasties, and their families deserve the highest level of medical care
regardless of their geographic location.
If we don't take care of the Coasties, we cannot expect the same
Coast Guard we've come to rely on. Search and rescue capacity will
decline. More illegal drugs will make it across our borders. More
environmental disasters will occur as a result of fewer vessel
inspections and decreased response capacity.
Congress must do better. The Commandant has said that the Coast
Guard needs to be a $20 billion service by 2030, and I believe that
should be the minimum.
Finally, I'd be remiss if I didn't mention the Coast Guard's
efforts to address sexual assault and sexual harassment and culture
change in the Service.
Turning a ship as old and large as the Coast Guard takes strong
leadership, time, and commitment. I'm pleased to witness strong
leadership and commitment by Admiral Fagan and believe that the Service
is on the right course. This Committee will continue to conduct
vigorous oversight to ensure that the ship stays on course.
As we discuss the Coast Guard's budget and ongoing resource needs,
I hope our witnesses will be candid. Congress and the American people
need to know what will happen if the Coast Guard is not a $20 billion
service by 2030.
Thank you, Chairman, and I yield back.

Mr. Webster of Florida. Thank you very much.
I would again like to welcome our witnesses today and thank
them for being here today. We really appreciate that.
I would like to take a moment to explain our lighting
system, though it is familiar to everybody in the room, I
think.
Red--well, we will start with green. Green means go, yellow
means slow up, and red means stop.
I ask unanimous consent that the witnesses' full statements
be included in the record.
Without objection, show that ordered.
I ask unanimous consent that the record of today's hearing
remain open for such time as our witnesses have to provide
answers to any questions that may be submitted in writing.
Without objection, show that ordered.
I ask unanimous consent that the record remain open for 15
days and that additional comments and information submitted by
the Members or witnesses be included into the record of today's
hearing.
Without objection, show that ordered.
As your written testimony has been made part of the record,
the subcommittee asks that you limit your oral remarks to 5
minutes.
And with that, Commandant, you are recognized for 5 minutes
for your testimony.

TESTIMONY OF ADMIRAL LINDA L. FAGAN, COMMANDANT, U.S. COAST
GUARD; AND MASTER CHIEF HEATH B. JONES, MASTER CHIEF PETTY
OFFICER OF THE COAST GUARD, U.S. COAST GUARD

TESTIMONY OF ADMIRAL LINDA L. FAGAN, COMMANDANT,
U.S. COAST GUARD

Admiral Fagan. Good morning, Chair Webster, thank you.
Ranking Member Carbajal, distinguished members of the
subcommittee, thank you for the opportunity to testify today.
On behalf of the Service, I would like to thank you for
your continued support for the Coast Guard, our workforce, and
our families.
The work the Coast Guard does every day is critical to the
Nation's success. We protect ports, waterways, and maritime
commerce. We respond to crises like the Baltimore bridge
collapse, hurricanes, and oilspills. We are at our best during
those challenging leadership responses.
We are the world's experts at saving lives at sea. We fight
criminals on the high seas, such as narcotics smugglers, human
traffickers, and illegal fishermen.
We are present in the Arctic, the Indo-Pacific, and
throughout the Western Hemisphere.
We work to protect U.S. national security every day. We
work for the Joint Force, interagency, international allies and
partners to respond to crises and enable responsible maritime
governance and protect the rules-based international order.
We are in the news almost every day, and the story is our
exceptional service to the Nation.
How do we do it? The answer is our people. Without their
dedication, the ships or aircraft we are investing in don't
move. Our people truly are the heart and soul of the Coast
Guard.
But we must ensure that their needs are being met. We are
at risk right now across the Service, and we need your support
to ensure we continue to support our workforce to continue
operations today and invest in the capabilities necessary for
operations tomorrow.
Those investments reflect our need to be a $20 billion
Coast Guard by 2030, our need for 3-plus billion dollars in
PC&I budget annually.
We need to invest in our talent management system, which
has not changed in over 60 years, and continue to improve the
support to our workforce and their families.
We are in a competition for talent, and our success relies
on our ability to recruit and retain the best and brightest.
We must also provide our workforce the tools they need to
be successful.
Last year, we celebrated a significant milestone in our
acquisition portfolio as we launched the first Offshore Patrol
Cutter, Argus.
My top acquisition priority is beginning construction on
Polar Security Cutter, and the topline reality of the budget
does not align with this priority.
Our procurement, construction, and improvements
appropriation is at its lowest level in nearly a decade. To
properly invest in our readiness today and for the future, the
Coast Guard needs at least $3 billion annually in PC&I.
We are extremely grateful to the committee for the $3.4
billion in PC&I funding included in the Coast Guard
Authorization Act which just passed the House a few weeks ago.
I am also concerned about our maintenance budget shortfall.
We currently project our ship maintenance budget will only
cover half our planned ship maintenance projects. We have
similar shortfalls in infrastructure and aircraft accounts.
Deferring maintenance increases unplanned maintenance,
disrupts work and training schedules, takes cutters and
aircraft off operational mission. It reduces readiness and
operational effectiveness.
Our people bear the burden of these unplanned repairs. They
spend time scrambling to keep assets operational and defer
their own time off and time with their families.
This isn't a notional problem in the future. It is the
Coast Guard we are operating today.
Our crews put their lives on the line every day to protect
our Nation and the public that we serve. We launch into the
teeth of a hurricane, we respond to wildfires, we put ourselves
at risk so that others may live, so that others may be saved,
and so that we can prosper as a Nation.
We must invest in 2025 and beyond to generate sustained
readiness and resilience while building the Coast Guard of the
future.
Together, I am confident that we can meet the challenges
facing the Service and ensure our workforce has the resources
they need to accomplish their missions safely and effectively.
I look forward to your questions.
Thank you, Mr. Chairman.
[Admiral Fagan's prepared statement follows:]

Prepared Statement of Admiral Linda L. Fagan, Commandant,
U.S. Coast Guard
Introduction
Chairman Webster, Ranking Member Carbajal, and distinguished
Members of the Subcommittee, thank you for inviting me to testify. I am
grateful for your continuing support of the United States Coast Guard.
Today, I look forward to discussing how the Administration's FY 2025
Budget request positions the Service to sustain recent strides in
growing and supporting a resilient workforce, increases meaningful
presence in the Indo-Pacific, enhances support for the maritime
community, and delivers capable assets to the fleet, while building the
Coast Guard of the future.
The Coast Guard remains the world's premier, multi-mission,
maritime service responsible for the safety, security, and stewardship
of the Nation's waters: we offer a unique and enduring value to the
American public. At all times a military service and branch of the U.S.
Armed Forces, a federal law enforcement agency, a first responder, a
regulatory body, and a member of the U.S. Intelligence Community, the
Coast Guard serves on the front lines for a Nation whose economic
prosperity and national security are inextricably linked to the sea.
This pivotal connection was highlighted on March 26th, when the M/V
DALI allided with the Francis Scott Key Bridge in Baltimore, resulting
in the devastating loss of six lives and continuing impacts to the
Nation's most significant port for light vehicles and other critical
cargoes. We are working closely with federal, state, and local partners
to restore the flow of commerce in this vital waterway and enable
efficient operation of nearby ports and the Marine Transportation
System.
Last year, your Coast Guard navigated unique challenges presented
by our increasingly connected and rapidly changing world. In FY 2023,
the Service saved over 5,500 lives, assisted over 40,000 people, and
removed over 212,000 pounds of cocaine and 54,000 pounds of marijuana
with an approximate wholesale value of $2.9 billion. It responded to 28
weather or climate disaster events, protected 3.5 million square miles
of Exclusive Economic Zone, and boarded over 50 foreign vessels to
suppress illegal, unreported, and unregulated fishing. In the same
year, the Coast Guard maintained nearly 45,000 buoys and beacons across
the Marine Transportation System and conducted over 10,000 waterborne
patrols to protect critical infrastructure and key resources. It also
provided support to U.S. Central Command to advance security
cooperation, maritime security, and counter-piracy objectives in the
Arabian Gulf, and deployed the Nation's only two icebreakers--the
cutters Polar Star and Healy--to further U.S. geopolitical, security,
and economic interests in the High Latitudes.
The Coast Guard continued to serve as a highly effective partner,
uniquely qualified to lead the interagency in multiple capacities,
including incident response and search and rescue. In June 2023, the
Coast Guard led search and recovery efforts for the missing submersible
Titan in the Northern Atlantic. In August, crews from Coast Guard
Station Maui rescued 17 people fleeing the fires that devastated the
community of Lahaina. Coast Guard personnel also deployed in response
to Hurricane Lee and Tropical Storm Idalia, saving or assisting 16
lives and rapidly restoring trade across the Marine Transportation
System.
The Service safeguards our Marine Transportation System, a vital
part of U.S. economic prosperity and national security. In February
2024, the President signed an Executive Order to bolster the Coast
Guard's authority to directly address cyber threats and strengthen port
security. To complement this action, the Service issued a Maritime
Security Directive on cyber risk management actions for ship-to-shore
cranes manufactured by People's Republic of China state-owned companies
and published a Notice of Proposed Rulemaking (NPRM) on cybersecurity
in the Marine Transportation System.
In addition to protecting our ports and maritime partners from
evolving threats, we also began to expand our presence in the Indo-
Pacific, a region vital to U.S. security, by homeporting the Harriet
Lane, the Service's first dedicated Indo-Pacific Cutter, in Hawaii.
This multi-mission cutter's presence in the region is already promoting
maritime governance through meaningful engagements with regional allies
and partners. During its first ``Operation Blue Pacific'' patrol, the
Harriet Lane worked closely with Vanuatu, Fiji, Samoa, and other
partners to complete numerous bilateral shiprider operations, advancing
capacity building with island nations and upholding international
rules-based order.
While I am incredibly proud of our Coast Guard Active Duty,
Reserve, Civilian, and Auxiliary workforce and remain optimistic about
our future, we must adapt to the growing demand for the Coast Guard in
the face of evolving global threats. In order to transform our Service
and continue to provide our unique capabilities to the American people,
we need Congressional support.
The ability for the Coast Guard to generate sustained workforce and
mission readiness is paramount to our ability to protect the Nation's
maritime safety, security, and prosperity. The FY 2025 President's
Budget provides needed investment in these areas and helps position the
Coast Guard for the future.
Generate Sustained Workforce and Mission Readiness
Workforce Readiness
My highest priority remains modernizing our talent management
system, which has not significantly changed in 75 years, to best
recruit and retain our workforce in the 21st century. I am committed to
fostering a Service culture that attracts the best talent and empowers
a resilient force of Coast Guard women and men ready to take on
tomorrow's challenges.
The FY 2025 budget requests $160 million to bolster military and
civilian pay and benefits; funding to enhance our culture through
efforts related to integrated primary prevention (IPP), victim
advocacy, anti-hate and anti-harassment prevention and response, and
modernizing our officer evaluations system. Investments to expand our
IPP program will promote prevention efforts across all harmful
behaviors, to include sexual harassment and sexual assault, by
facilitating the swift implementation of policies and procedures to
ensure everyone experiences a workplace with enhanced protective
factors and increased outreach. To further those efforts, support for
our recently created Enterprise Victim Advocate role--the first of its
kind across the armed forces--will further advance the connection
between victims of harmful behavior, stakeholder groups, and Coast
Guard leadership. In addition to these strides for our workforce, the
request provides $7 million to bolster our workforce's support of the
U.S. maritime community by fielding personnel to improve the Coast
Guard's ability to combat sexual misconduct in the maritime industry
and to support the transformation of the Mariner Credentialing Program.
Mission Readiness
The Coast Guard must continue to adapt to a constantly evolving
environment and remain resilient to change. The demand for the Coast
Guard has never been higher; we continue to demonstrate our value
across the globe but increasingly so in the Indo-Pacific, where our
unique capabilities position us to effectively and meaningfully advance
U.S. strategy. Through foreign partner interactions and work with
regional organizations, the Coast Guard is a relevant, non-escalatory
resource which strengthens maritime governance, the rule of law, and
democratic institutions.
The FY 2025 budget requests $263 million to expand Coast Guard
operations in the Indo-Pacific along three primary lines of effort:
Increased Presence, Maritime Governance, and Meaningful Engagements.
This investment includes the acquisition of two Fast Response Cutters
(FRC) and the addition of a Marine Transportation System Assessment
Team, a Maritime Engagement Team, and various regional liaisons and
attaches, and will continues the Service's transition from episodic to
persistent presence in the region.
The Coast Guard operates in dynamic conditions, and changes in the
strategic environment impact our missions every day. Given evolving
national security threats, we must prepare now for the challenges of
tomorrow.
We will employ our assets and resources to the highest priority
missions that we are uniquely capable to perform, build on our ability
to lead in crisis, strengthen existing and forge new partnerships to
improve global maritime governance, and safeguard a rapidly changing
Marine Transportation System.
The FY 2025 budget requests funding for the operations,
maintenance, crew, and mission support elements for six FRCs; shoreside
maintenance and support personnel for Offshore Patrol Cutters (OPC) #3
and #4; crew for Waterways Commerce Cutter #1; funds to support four
hyperbaric recompression chambers; and crew, operations, and
maintenance for four MH-60T helicopters and eight Maritime Security
Response Team boats. Additionally, the budget includes $10 million for
the operations and maintenance of newly acquired or recapitalized shore
facilities.
Build the Coast Guard of the Future
I remain steadfast in our commitment to ensure the Coast Guard has
the capable, modern assets necessary to meet evolving mission demands.
Surface
The OPC is one of the Service's highest acquisition priorities and
is absolutely vital to recapitalizing the capability provided by our
legacy fleet of 210-foot and 270-foot Medium Endurance Cutters (MEC).
In October 2023, the Service christened and launched the first hull in
the class, the Argus--we look forward to continued progress on this
critical class of vessels. The FY 2025 request provides $530 million
for construction of the seventh OPC and long lead time materials for
the eighth cutter. The legacy assets the OPCs will replace have been
workhorses for decades and continue to serve the Nation with
distinction. Thirteen of these venerable cutters have been in operation
for more than 50 years. The MEC fleet will only become more difficult
and expensive to maintain, and we will continue to see decreasing
readiness and operational availability.
The Service's other acquisition priority remains the Polar Security
Cutter. In FY 2025 we expect to rely on prior appropriations to
continue construction of the first hull. In future years it will be
important that the Nation continue to invest in the heavy polar
icebreakers that the United States needs to protect America's sovereign
interests in the polar regions. These cutters are national assets, and
revitalizing the defense industrial base to produce this first-in-class
ship is a necessary investment that will pay dividends for decades.
Some of our inland tenders have been in service since the 1940s,
maintaining both fixed and floating aids to navigation for the Marine
Transportation System--the 25,000 miles of rivers and navigable
channels that support $5.4 trillion in annual commerce and 30 million
jobs. The FY 2025 request for $135 million supports program management,
long lead time material for future hulls, and construction of three
Waterways Commerce Cutters. These cutters--which will replace our
legacy inland tender fleet--will feature modern designs for propulsion
and crew habitability to enable men and women to serve in the
heartland, where they help ensure that some of America's most critical
waterways remain navigable despite constantly changing conditions and
water levels.
As we consider aging assets, one of the most critical elements of
the Service's surface budget request is the In-Service Vessel
Sustainment program. That request for $148 million is vital to
extending the service life of cutters and boats, including our 47,
motor life boats, Coast Guard Cutter Healy--one of the Nation's two
polar icebreakers--the 270, MECs, our 175, coastal buoy tenders, and
even our 418, National Security Cutters. These upgrades provide legacy
assets with modern capabilities, repair wear and tear on major systems,
and overall deliver incredible return on investment.
The FRC is an incredibly capable asset, with a proven track record
of successful mission execution around the globe. Our FRCs demonstrate
endurance and agility in their near-shore operations but have also
displayed an inimitable ability to patrol the Indo-Pacific and engage
with our partners, increasing presence and promoting governance
throughout the region. The FY 2025 request provides $216 million to
support the construction of two FRCs that will expand Coast Guard
presence to support the Indo-Pacific Strategy of the United States.
FRCs are uniquely equipped to conduct the types of engagements that
support our partners, deter our adversaries, and promote good maritime
governance in this vital region.
Aviation Assets
Coast Guard aviation is integral to accomplishing our wide spectrum
of missions. Aviation assets and support infrastructure are, and will
continue to be, a major target of future investments. The FY 2025
request includes $206 million to recapitalize and sustain fixed and
rotary-wing aircraft, including support for growth of the MH-60T
helicopter fleet through the acquisition of four aircraft that will
continue our transition away from the MH-65E as that aircraft reaches
its end of service life in the late 2030s.
Shore Infrastructure
Shore facility recapitalization is critical to mission success. As
the Service deploys new, more capable assets, infrastructure projects
like pier construction, maintenance and industrial support buildings,
and facilities that support our workforce cannot be viewed as optional.
The FY 2025 request includes targeted investments to continue the
buildout of Base Charleston, South Carolina; funds the construction of
a FRC homeport in Astoria, Oregon; delivers new facilities for Sector
Lower Mississippi in Memphis, Tennessee; and supports the buildout of
Forward Operating Locations for FRCs in the Indo-Pacific. Given the
Coast Guard's broad infrastructure needs, these investments are
necessary to ensure the Service has the resilient infrastructure
required to meet the operational demands of today and tomorrow.
Conclusion
The Coast Guard is the only military Service outside the Department
of Defense and the only Armed Force that is primarily funded via non-
defense appropriations. Funding the Coast Guard at the levels below
those requested in this budget could jeopardize the long-term readiness
of the Service, putting American lives, national security, and the
Marine Transportation System at risk. I ask for your support to ensure
the Coast Guard--like every U.S. Armed Force--has the resources
necessary to safeguard the Nation.
Now is the time to move the U.S. Coast Guard forward. Our
commitments at home to protect, defend, and save, grow every day, while
demand for the Service around the globe has never been higher. To meet
the rising challenges, we must invest to secure the Homeland and
counter strategic competitors.
With the support of the Administration and Congress, your Coast
Guard will continue to live up to our motto--Semper Paratus--Always
Ready. Thank you for your enduring support.

Mr. Webster of Florida. Thank you so much.
Now, Master Chief Jones, you are recognized.

TESTIMONY OF MASTER CHIEF HEATH B. JONES, MASTER CHIEF PETTY
OFFICER OF THE COAST GUARD, U.S. COAST GUARD

Master Chief Jones. Thank you, Mr. Chairman.
Good morning, Chairman Webster, Ranking Member Carbajal,
and distinguished subcommittee members. It is an honor to
appear before you as the Master Chief Petty Officer of the
Coast Guard.
And as I begin, I would like to express my sincere
appreciation, alongside Admiral Fagan, and on behalf of our
dedicated Coast Guard sentinels, for your unwavering support of
our workforce and their families.
Our workforce is the heart and soul of the Coast Guard, and
their dedication and sacrifice to keeping our Nation safe and
secure shows in their commitment to duty.
I want to echo the Commandant and clearly state to this
committee and our entire workforce that we are committed to
revitalizing our talent management system and to strengthening
our Service culture.
Despite the work that remains, I am immensely proud of our
workforce's unwavering drive and dedication to tackle every
challenge head on.
The Coast Guard is more than a military service. At the
core of every sentinel is the call to serve and to help others.
We are a closely bonded community and our Coast Guard
families are paramount. Their altruistic sacrifices and
constant support are imperative to achieving our mission.
Therefore, we must provide for our families by focusing on
the acronym of CASH: childcare, access to physical and
behavioral healthcare, schools, and housing.
As we discuss the future of the Coast Guard, my primary
focus will always be our sentinels, specifically the Service's
ability to attract and retain talented individuals essential to
effectively carry out the critical missions that our Nation
calls us to do and our Nation deserves.
Additionally, while we are extremely optimistic about the
positive trends in our Coast Guard recruiting efforts, we must
continue to invest in the resources our members needed to
enhance our recruiting technologies and capabilities.
We must also continue to focus on base pay to ensure that
we can maintain our ability to compete with the private sector
for the talent that we need.
The fiscal year 2025 pay raise and the work of the Quality
of Life Panel have made steps in the right direction.
While I acknowledge that young people who join our Service
are not primarily motivated by financial gain, it is essential
to recognize that they may be more likely to leave for better
opportunities if offered.
These highly skilled Americans execute a broad array of
missions every day. To meet these demands, we require stable
and on-time appropriations to provide the tools and
infrastructure to recruit, train, and retain them.
As we saw in 2019 when Coast Guard members did not receive
paychecks, continuing resolutions pose an immediate and severe
threat to our Service's readiness.
Beyond pay, we need the appropriate facilities to train our
people. Training Center Cape May, our single accession point
for the entire enlisted workforce, will always remain a top
priority for Admiral Fagan and I.
As we prepare to break ground on the first new barracks in
over 50 years, we express our gratitude to Congress for their
recent support and planning of the construction of the second
barracks.
However, we must not lose focus on the ongoing total
recapitalization efforts at Cape May. The current facilities
hinder our ability to continuously train recruits to Service
standards.
By modernizing these facilities, we can significantly
increase our throughput, ensuring that we can meet the growing
demands of our mission. Therefore, the Service needs a
modernized training facility to develop the most resilient and
fleet-ready sentinels.
To this end, the Coast Guard has included a request for a
multipurpose training facility and barracks recapitalization in
Cape May as part of our unfunded priorities list of 2025.
I would like to reiterate the critical role of the Coast
Guard in protecting our Nation's maritime interests and
ensuring the safety and security of our citizens.
The Coast Guard will continue to face significant
challenges in maintaining Service readiness and modernizing
capabilities to meet the evolving threats and demands of the
21st century. But we remain true to our motto and we will be
semper paratus, but we cannot do that without your continued
support.
Your Coast Guard remains steadfast in its dedication to
attracting and fostering a skilled and inclusive workforce, and
I am grateful for the unwavering commitment of this committee
to support the mission to defend and safeguard America's vital
maritime domain.
Thank you again for the opportunity to appear before you
today, and I look forward to your questions.
[Master Chief Jones did not submit a prepared statement.]
Mr. Webster of Florida. Thank you.
Thank you both for your testimony. We really appreciate
that.
I will turn to questions. I will recognize myself.
I first want to say both of you are a credit to the Coast
Guard, and you have presented yourself well today. I look
forward to your answers to the questions.
Admiral Fagan, on April 29, during an interview with the
Center for Strategic and International Studies, you twice
stated that the Polar Security Cutter was on budget. This
committee is well aware that the Coast Guard does not have an
agreed-upon price or a timeline for the program.
What are your comments about that?
Admiral Fagan. Thank you, Chairman.
I share your concerns with regard to the current progress
and state of the Polar Security Cutter. When I said we are on
budget, I was reflecting the previous appropriations in prior
years that have been budgeted, over $1.8 billion, with
approximately $820 million remaining in previous appropriations
for Polar Security Cutter.
And I acknowledge that the Polar Security Cutter, there is
no ask in the 2025 budget. It reflects some of the top line of
pressure and priorities.
We are working daily with the shipyard who has the
contract, Bollinger Mississippi, to bring clarity to both the
design maturity and timeline and cost. I don't have that
definitized yet. Committed to sharing it with the committee as
we gain greater fidelity with regard to what rebaselining in
the schedule will look like with regard to Polar Security
Cutter.
Polar Security Cutter, we are building that under an
integrated program office with the Navy, so, we are working
with the Navy as well as we work to understand what cost and
time is associated with that.
This is a critical national asset. It is a national
security asset. It is critical to our sovereignty in the Arctic
and elsewhere. We remain committed to fielding that Polar
Security Cutter.
I have a sense of urgency. I share the frustration with
regard to timeline. But we remain committed to creating that
clarity and articulation with regard to cost, schedule, and
design maturity, and committed to sharing that with the
committee as it comes into clarity.
Mr. Webster of Florida. How does the Navy play into all
that?
Admiral Fagan. It is an integrated program office that is
overseeing the building and the execution of the contract. And
so, we work with the Navy on the contracting and acquisition
piece of procuring the Polar Security Cutter.
And I am happy to have the staff come over and give your
staff more details on how that is working. It is a great
relationship with the Navy, and we continue to remain
committed, both Services, through that integrated program
office.
Mr. Webster of Florida. Will they have any ownership in the
boat, in the security cutter, or is it just advice they are
giving us?
Admiral Fagan. Oh, sure, the cutter will be a commissioned
Coast Guard cutter and the Coast Guard will operate it on
behalf of the Nation as a national security asset.
Mr. Webster of Florida. Is there an agreement of a cost
estimate and a timeline being--is anybody withholding it from
this committee or is it just it hasn't been produced yet?
Admiral Fagan. Sir, we are not withholding the cost and
timeline schedule. We will provide that as soon as there is
clarity. We are working diligently with Bollinger Mississippi
to provide that clarity. And certainly as soon as we have it, I
am committed to sharing it with the committee.
Mr. Webster of Florida. So, on the screen I think is going
to be an appropriated authorized level for the Coast Guard.
[Slide shown.]
Mr. Webster of Florida. So, the level that was agreed to is
the top one, but the money we got is not that. So, we are
short. I mean, is Homeland Security taking part of our money?
Admiral Fagan. Sir, I, as every agency and organization in
the Government, am subjected to a topline budget submission,
and we continue to work to submit budgets that reflect
priorities for the Nation. I acknowledge, and what the chart
reflects, we are at the lowest PC&I level of funding for the
organization, the lowest that we have seen in 10 years.
We continue to work to make priority decisions as we submit
those budgets and as I have acknowledged and we just were
talking about the Polar Security Cutter. The outyear cost for
fielding additional Polar Security Cutters, that is not a
number that is going to fit in the current top line as the
budget is constructed for the Coast Guard.
Mr. Webster of Florida. OK. My time is up, so, I will yield
back and thank you right now. I appreciate that.
Ranking Member Carbajal, you are recognized for 5 minutes.
Mr. Carbajal. Thank you, Mr. Chairman. You are the
chairman. Your time is never up if you don't want it to be up.
But I appreciate you handing it over to me, Mr. Chairman.
Master Chief Jones, I have had the opportunity to meet and
talk with Coasties stationed across the country and across the
world. I have found that the best way to understand their
problems is to ask what their spouses would change about their
experience with the Coast Guard.
What are you hearing from servicemembers and their
families? And what is the Coast Guard doing to address those
concerns?
Master Chief Jones. Thank you for the question, sir.
And I would say that you are absolutely spot on. That is
where we often get the most realistic feedback on things or how
it is affecting the families.
In my opening statement, when I referred to the acronym of
CASH, that is where we got that from. That came from our
ombudsman at large who visits with the families as we are
visiting with units.
Those four things--the childcare, the access to physical
and behavioral healthcare, schools, and housing--are the top
four things everywhere we have sentinels stationed around the
world. Where they are geographically, that order may change in
there, but those are the top four things at all times.
Some areas where we have seen it is making a marked
difference have been on the ability to get childcare subsidies
so that our folks can pay for childcare in areas where we don't
have child development centers. We have made investments in the
childcare development centers in areas of mass where we have
large groups.
The change that is forthcoming this summer to be able to
have the childcare subsidy sent directly to the families so
that the families can then determine the best childcare for
their situation is making a marked improvement in this area,
sir.
Mr. Carbajal. Thank you.
Admiral Fagan, with the passage of the Safer Seas Act, the
Coast Guard is tasked with implementing several new authorities
and requirements for industry.
How important is the requirement to report harassment to
the Coast Guard? And how does the Coast Guard plan to use that
information?
Admiral Fagan. We are actively implementing the Safer Seas
Act now. We are 100 percent committed to eradicating sexual
assault, sexual harassment, not just at sea, on commercial
vessels, but in our own organization as well.
Every employee, whoever their employer is, has the right to
a workplace that is free from sexual assault and sexual
harassment.
We have stood up the call lines. We are accepting calls
from mariners who experience harmful behaviors at sea and are
actively investigating those cases.
What is good for the commercial industry and our mariners
applies as well to our workforce, and we are committed to that
work and look forward to continuing to work with the committee
as we engage to eliminate those behaviors at sea and in our own
workforce.
Mr. Carbajal. Thank you.
Admiral Fagan, in light of Operation Fouled Anchor, the
Coast Guard underwent a, quote, ``accountability and
transparency review,'' end quote, which resulted in directed
actions for you and your leadership team. All the while, the
Coast Guard is facing a 10-percent workforce shortfall.
Any amount of distrust in leadership will hinder
recruitment and potentially harm readiness.
Do you have the resources you need to fully accomplish
these actions? And will additional resources be needed?
Admiral Fagan. Thank you.
We completed the accountability and transparency review, it
was a 90-day sprint, to help focus the work ahead for the
organization.
I am happy to report that we are well underway in
completing the directed actions in the direct action report.
But that is not the only thing we are doing. It is part of
a much broader effort on the part of the organization to
address Service culture and to eliminate the harmful behaviors
of assault, harassment, bullying, hazing, retaliation,
retribution.
I do need resources, and I owe the committee more insight
into investments. For example, our human capital IT system has
not been updated in years, and we need to have a system that
allows us to track and increase transparency around misconduct
and crimes when they occur.
There are additional people resources we need to add into
our personnel system, and we have made some of those
investments now as we continue to understand the work ahead.
Another example is an Integrated Prevention Program Office.
I have an office of one on the DoD side. These are much larger
programs and they are all areas for additional investment, and
look forward to working with the committee to ensure that we
are resourced on parity with other military services and that
we are providing the support that our workforce so much
deserves.
Mr. Carbajal. Building on that, how are you working to
address the issue of trust among the workforce? You have
already touched on some of it.
Admiral Fagan. So, it is clear that trust and trust in
leadership is a central theme. That trust was lost over a
lengthy period of time.
It is going to take time to rebuild that trust, and I am
100 percent committed to that. And as I said, we have embarked
on a number of initiatives and efforts that include training,
leadership awareness, understanding our own administrative
misconduct system, investing in resources.
And this is not a checklist approach, it is not a one-and-
done. This is the journey we are on now as an organization, and
trust is at the core of all that we do, and it is most
elemental for us as leaders.
Mr. Carbajal. Thank you very much.
Mr. Chair, I am out of time. I yield back.
Mr. Webster of Florida. The gentleman yields back.
Dr. Babin, you are recognized for 5 minutes.
Dr. Babin. Yes, sir. Thank you, Mr. Chairman.
I also want to thank Admiral Fagan and Master Chief Jones
for being here today.
It seems like it has been a very busy time for the U.S.
Coast Guard here lately. The Dali hitting the Key Bridge in
Maryland. A recent barge crash and oilspill in Galveston.
Responding to devastating storms and flooding in southeast
Texas. And some impressive seizures of illegally harvested fish
in the Gulf of Mexico by illegal Mexican immigrants.
We know you have got a lot on your plate. We appreciate you
coming in to discuss your fiscal year 2025 budget request with
us.
One of the comments I consistently hear when talking with
members of the Coast Guard is what a serious issue that housing
is. In fact, you have already addressed it this morning a
little bit.
I know this is an issue you are familiar with, but
particularly for junior enlisted members of the Coast Guard,
housing is a tremendous challenge.
I notice that the fiscal year 2025 budget request did not
include an increase in the housing fund, and I know you have a
limited budget to work with. But I was curious why you decided
not to include an increase in housing for your request.
So, the Coast Guard is doing a lot of great work--excuse
me, if you can address that.
Admiral Fagan. Thank you for the question around housing.
Dr. Babin. Yes.
Admiral Fagan. So, the best approach to housing for our
workforce is a diversified approach. So, ensuring that we have
got parity with DoD and our pay scales that include a housing
allowance for our work members and engaging in that system to
ensure that that housing allowance is reflective of actual
costs in living areas.
Other areas, we have lease authority and exercise leases so
that junior members have some certainty and ability to access
housing.
And then, in remote locations where there is insufficient
housing, the option to build and operate Coast Guard-built
housing is also an option.
And we exercise all three of those to ensure that our
members have access to housing.
Housing is a challenge nationwide. There has been
disruption in the housing market. And so, just finding
available housing is priority one.
Two is ensuring that the workforce then has the pay and the
ability to exercise those leases.
And we are working across all of those portfolios.
Dr. Babin. Good to hear.
The Coast Guard is doing a lot of great work to support the
southeast Texas community in response to the ongoing rainfall
and flooding that we have seen over the past really 6 weeks.
Air Station Houston, which I represent, is currently
operating three Dolphin helicopters. They are doing a great
job. We are extremely proud of them. But I think there is a
general consensus that an upgrade is needed.
I am curious if and when the air station will be getting
upgraded to the new MH-60 helicopters. Is this something that
is in the fiscal year 2025 budget or is something in the near-
term plan? And if you don't have that information on hand, I
would appreciate it if you would send that to my team.
Admiral Fagan. Thank you.
We will have the team provide the more detailed approach
with regard to how we are transitioning from the aging fleet of
65s to the new fleet of 60s.
And Air Station Houston is one of those air stations that
will get 60 helicopters, but it is space constrained, the
hangar. We have got more work to do there to enable a fielding
of the 60s at Air Station Houston.
We are committed to moving towards the 60 fleet and
replacing the 65s. We have also got work to do, though, in the
later phases of that to understand what the right rotary wing
asset is going to be for some of those specialized missions.
But right now, we remain focused on those primary search-
and-rescue stations. As I said, Houston is on schedule for
that, and I will have the team walk you through the details of
how we do those transitions.
Dr. Babin. OK. Thank you.
And lastly, the recruitment challenges facing the Coast
Guard are very serious.
Master Chief Jones, can you talk about how you are working
to address these challenges, and what is the Coast Guard doing
to improve recruitment, and what are some of the challenges
that you are seeing to get the recruitment up?
Master Chief Jones. Yes, sir. Thank you very much for that
question.
Recruiting is actually a reason for us to be optimistic
right now, thanks in large part to the support of this
committee over the last couple years for investment into our
recruiting capacity: opening new recruiting offices, creating a
recruiter rating so that we have folks that that is their
expertise and that is where they focus.
I just actually spoke to the CO of Recruiting Command this
morning, and we, as of this week, have passed 3,600 recruits
into Training Center Cape May.
Our goal every year is 4,200; the last time we reached that
was 2017. The 3,600 we passed this week is the most we have had
since 2017, and we remain pretty optimistic that we may be able
to meet that goal.
What that does is it allows us to, where we have maybe
bottomed out on the gap, but we still have many years in front
of us to close that gap of building back forward with this.
So, we just look forward to continued support to open more
recruiting offices in the areas where we need them, and I truly
believe that we are going to see the sustained trend upwards.
Dr. Babin. Thank you very much.
My time has expired, so, I yield back.
Mr. Webster of Florida. The gentleman yields back.
Ranking Member Larsen, you are recognized for 5 minutes.
Mr. Larsen of Washington. Thank you, Mr. Chair.
Commandant Fagan, the budget request has $4.9 million for
the mariner credentialing. I believe in the recently passed
Coast Guard authorization, we authorized $11 million, so, it is
a little less than half--much less than half--of the $11
million.
Do you expect that you will come back in the next year to
look for the remainder? Or how will you approach that?
Admiral Fagan. You are referring to the Navita system, that
we do have a budget authority field. It will field it to an
initial operating capacity and we will need to come back for
additional funding authority to field the full system.
It is a critical step forward in bringing our mariner
licensing and credentialing into the modern era, and look
forward to continuing to work with the committee to do that.
Mr. Larsen of Washington. Thanks.
So, when the other uniformed services have funding
shortfalls, they are actually pretty brazen. They go to the
Pentagon and ask for money. In this case, you have the Francis
Scott Key Bridge that has put further burdens on Coast Guard's
operations in order to deal with that situation.
I asked Admiral Gautier a couple weeks ago when he
testified here about backfilling the Coast Guard budget because
of the resources devoted to the Key Bridge situation.
Are you any closer to deciding how much and when you will
be requesting from the administration any backfill dollars?
Admiral Fagan. So, the direct cost to the Coast Guard at
this point of the Francis Scott Key Bridge response is
approximately $20 million in fuel and maintenance and spare
parts.
The broader reality is that as we focus that readiness and
operational capacity on that particular response, it diminishes
our ability to create operational capacity for other responses.
It also highlights the fragility of the Marine
Transportation System and infrastructure, and there are
opportunities for greater investments there for the Nation to
secure our waterways. And we are working to identify where
those areas of investment are beyond just the immediate direct
cost that the Coast Guard has expended.
Mr. Larsen of Washington. Yes, I imagine we are going to
have a hearing probably in the future on what you find out
about what we need to do to better harden the MTS.
But do you have a plan to go to the administration and ask
for that $20 million or so to help with backfill?
Admiral Fagan. We will continue to work through the process
as there is opportunity for a supplemental or to articulate the
cost for the Guard and we will engage in the process, yes sir.
Mr. Larsen of Washington. Thanks.
So, on the PC&I budget, you have $1.56 billion and you said
in your testimony you really need $3 billion. Is that what I
got? Is that what I understood?
Admiral Fagan. Yes. Closer to $3 billion to $4 billion is
the actual PC&I need a year.
Mr. Larsen of Washington. And did you ask for that and it
got pared down by DHS? Or what is that, to the extent that you
can enlighten us on the process there at DHS?
Admiral Fagan. So, as we work to submit a topline budget to
the Department, hard offset decisions need to be made within
the Service.
And so, as a capital intensive frontline operating
organization, we prioritize people and operating assets as we
work to create that topline budget.
And you can see in the chart that was shown earlier, we are
at our lowest level of PC&I funding in 10 years. The
maintenance accounts are about half of what they need to be.
We have normalized parts exchanges as we take good parts
off the cutters when they come in and put them onto others.
Those numbers reflect the reality of operating a frontline
operating agency and critically recapitalizing the organization
with regard to the major cutter programs.
Mr. Larsen of Washington. Is it your role then in that
process to explain to DHS that you have people, but they need
to operate on platforms, but they are not funding the platforms
for people to operate on and you are hitting that point where
the lines in the graph cross, which is a bad place to be?
Admiral Fagan. No, we continue to articulate that need. We
signal the highest priority need through the unfunded priority
list, which I know the committee has seen. Those are some of
the first priorities. And continue to engage the process to
adequately identify those areas of investments that the Service
needs.
Mr. Larsen of Washington. I will just conclude, Mr. Chair,
by just noting we are still monitoring the Base Seattle
expansion in that role.
So, we will follow up with you on that from the Pacific
Northwest, Admiral. Thanks a lot.
I yield back.
Mr. Webster of Florida. The ranking member yields back.
Mr. Ezell, you are recognized for 5 minutes.
Mr. Ezell. Thank you, Mr. Chairman.
Thank you, Admiral Fagan and Master Chief Jones, for being
here. It is always good to see you both come before the
committee.
The Coast Guard plays such a vital role in securing our
Nation's maritime border and securing America's ports. As a
member of this committee, I want to ensure that the men and
women of this branch have the resources they need to carry out
their mission effectively.
Currently, the Coast Guard is facing an unprecedented
manpower shortage. Autonomous and uncrewed vessels could
potentially alleviate the strain that is putting on the force.
Great strides are being made in my district in south
Mississippi at the Roger Wicker Center for Ocean Enterprise,
which includes numerous research and development partnership
programs focused on uncrewed maritime systems in the broader
blue economy.
Admiral Fagan, do you think that the autonomous maritime
vehicles could help alleviate your workforce shortage?
Admiral Fagan. Thank you.
Obviously, unmanned systems and unmanned technology is
here, it is game changing, and it is critical to ensure that we
have that appropriately reflected in our portfolio of operating
capacity.
We released an unmanned system strategy in 2023. We are
working a joint program office with CBP as we operate MQ-9s,
examples of the way that the Service is bringing unmanned
technology into our portfolio.
ScanEagle is a critical enabler on our National Security
Cutters. We have contracted with Saildrone, which are unmanned
on-the-water systems, and we continue to look for how we can
bring unmanned technology into our portfolio.
But unmanned is not not manned. It still requires people to
operate those systems. But continue to look at that technology
as key enablers for our workforce.
Mr. Ezell. Very good.
When looking at acquisitions, what are some of the needs
that the Coast Guard in the autonomous sphere, what are some of
the needs that you have in this vessel space?
Admiral Fagan. Specific to autonomy or just broader?
Mr. Ezell. Yes, yes.
Admiral Fagan. We continue to look at those technologies.
ScanEagle is a great example that we fielded, that ship-based,
ship-recovered, contractor-owned, contractor-operated unmanned
system, into the NSC fleet.
It has been game changing for us in the operational work
that we do. We will continue to look for other opportunities to
field unmanned systems into new assets.
We have talked about the Polar Security Cutter. That, too,
will be a platform that is ripe for unmanned technology in
certain portfolios.
Mr. Ezell. Very good.
The Coast Guard currently collaborates with CBP on the use
of long-range autonomous aircraft systems as well. These types
of assets provide the Service with the ability to monitor large
areas in a cost-effective way.
Does the Coast Guard plan to explore the acquisition of its
own long-range unmanned aircraft systems?
Admiral Fagan. We are operating jointly with CBP with the
MQ-9s. They have provided a great benefit.
As we look at the aviation portfolio that we are operating
as a Service, we have talked about the 65-to-60 transition, we
have got a medium-range and long-range fixed-wing aircraft
portfolio that we are also looking at from an analysis
standpoint. And you can logically look at that analysis and
study and conclude that there is room for unmanned systems.
What that is, how it is operated, and what kind of budget
support and people support we will need to do that is part of
an ongoing analysis of where we are with the overall aviation
portfolio.
Mr. Ezell. Thank you.
We are seeing a lot of things going on in the country right
now, around the world especially.
Could you tell us a little bit about some of your concerns
the Coast Guard role is playing around the world to some of our
adversaries, such as Iran and China and Russia?
Admiral Fagan. We are a globally deployed Coast Guard. So,
the demand for the kind of capabilities, professionalism, law
enforcement, rule of law that the United States Coast Guard
brings to the maritime problem set, that demand is loud and
growing.
The work we are doing in the Indo-Pacific, we specifically
engage partner nations and allies, help them build their own
sovereignty, their own capacity.
Look no further than the Harriet Lane, who was in Vanuatu
in the Pacific recently helping Vanuatu enforce their own
sovereignty and their own exclusive economic zone by allowing
Vanuatu to board Chinese fishing vessels in Vanuatu's exclusive
economic zone.
Whether it is ships or people, we have the great respect of
many coast guards and navies around the world and look forward
to continue to be able to enable other nations to create their
own capacity and sovereignty.
Mr. Ezell. Thank you.
Mr. Chairman, if I have just 1 minute, I have a question
submitted by Chairman Graves, if I could ask on his behalf.
Mr. Webster of Florida. You are recognized.
Mr. Ezell. My next question is on behalf of T&I full
committee Chairman Sam Graves.
With bridge safety at the forefront of everyone's mind
right now, including the Midwest just north of Chairman Graves'
district where a barge struck the Fort Madison Bridge and shut
down operations for a few hours, do you think an evaluation of
the Truman-Hobbs list of bridges makes sense? And should
Congress look for resources to fund those critical
infrastructure assets?
Admiral Fagan. It is clear if you look at the
infrastructure in the country, and obviously the Dali and the
recent barge-bridge allision, it reflects the changes in the
Marine Transportation System that have occurred in time.
And we are looking at how we might look holistically at
several of the key ports in the country to ensure that there is
an understanding of what the infrastructure is, what has
changed, and what might be needed to mitigate it, and bridges
will be a part of that.
I am happy to come back to Chairman Graves and others and
share with the committee thinking in a way ahead to ensure that
our Nation's maritime transportation system is secure and
resilient.
Mr. Ezell. Thank you for that.
Mr. Chairman, I yield back.
Mr. Webster of Florida. The gentleman yields back.
Mr. Pappas, you are recognized for 5 minutes.
Mr. Pappas. Thank you very much, Mr. Chairman.
Admiral Fagan, Master Chief Jones, thanks for being with
us, for your service to our Nation, and for your leadership,
which is so critical for a number of the emerging challenges
that we face as a Nation. I appreciate your insights today.
And, Admiral Fagan, I want to ask you about an issue of
local and regional concern in my district.
Coast Guard Station Portsmouth Harbor is among the Coast
Guard's busiest facilities within the northern New England
sector. In January 2024, the facility experienced significant
damage and was forced to temporarily close. As a result of a
winter storm, the floating pier at the station was severely
damaged. The storm caused a sinkhole adjacent to the seawall at
the facility.
While the Coast Guard has initiated interim repairs to
restore operations at the facility--it is also leasing a space
at a nearby marina--we know the shore infrastructure remains at
a degraded state.
So, I know that the Shore Infrastructure Programming and
Governance Council recently met to prioritize the
infrastructure needs across the Coast Guard. This station's
covered moorings was one of the top requested funding
priorities in the First Coast Guard District.
But the district hasn't yet received the results from the
governance council, and there is concern about how long this
work is going to take.
The work includes additional funding through future budget
requests to perform survey and design work, but the station
can't wait years for this survey and design work to happen
before it even considers the needed repairs and upgrades that
must be made.
So, I am wondering if you are focused on this particular
issue, if you can commit to prioritizing the rebuilding of this
facility, and if you could just comment at large on the status
of our infrastructure across the country and what investments
we need to be making.
Admiral Fagan. Thank you.
And I am familiar with the flooding that occurred last
fall, the damage at the station, and we have reflected money
and priority in the unfunded priority list specific to that
station.
This comes back to the overall shortfall in the PC&I
account writ large, the lowest level of funding in 10 years.
And so, if you look at stations around the country, there
is critical need, not just in the station you have referenced,
but in others, at air stations, and across the country.
Getting to $3 to $4 billion of predictable, regular funding
into the PC&I account helps create the kind of predictability
and certainty to begin the design work and the planning work
early, and then allow us to execute that money in a way that is
responsible to the American public.
But this is a shortfall and a challenge that has been with
the Service for a number of years, and you see it directly in
your district. And we are committed to continue to, one,
articulate the need, and then work to ensure that we have got
the process maturity to execute on that money.
Mr. Pappas. Well, thank you.
I know you agree that our Coast Guard deserves to operate
in the most modern, resilient facilities possible, and that we
need to be able to deal with challenges that come up, including
from weather events like we saw affect Station Portsmouth
Harbor.
So, I appreciate your attention to that. And any additional
details you have about Portsmouth, we would be willing to talk
with you more about that offline.
I also appreciate the conversation earlier about the
accountability and transparency review. I know you said that
continues to produce results. And I hope you continue to keep
this subcommittee updated on what the findings are there.
Master Chief Jones, thanks very much for your conversation
around recruitment. I think this is such a core issue. And you
discussed some of the systemic problems in terms of just
quality of life issues that we need to address for the Service.
And I appreciate the engagement that you have had with Coasties
and their families.
In response to the recruiting challenges, the Coast Guard
Authorization Act includes about $12 million in fiscal year
2025 to fund additional recruiting personnel and offices for
the Coast Guard Recruiting Command and $9 million to enhance
Coast Guard recruiting capabilities. I think these are smart
investments.
Is this of the magnitude that is needed to continue the
progress that you say we are making? Will you continue to be
optimistic if this is the level that we are able to fund this
this year and in future years?
Master Chief Jones. Yes. Any investment into our recruiting
capacity is appreciated. With some of the technology that we
need to allow us to recruit, with some of the modern tools,
that is where the investment where we are really optimistic
where the funding is going to help us get to where--if a
recruiter meets someone at an event right now, we have got an
older paper-based system that takes us just a long time to go
back and forth.
This investment is going to allow us to we could leave that
event with that member knowing, ``OK, if I want, I can go to
Training Center Cape May on this date,'' and we can shrink the
timeline between contact with a recruit and getting recruits
through Cape May.
So, any investment in that we do appreciate as we continue
to move forward.
Mr. Pappas. Well, I know it takes time to build systems and
momentum, and to change culture even, and to help spread the
word. So, we appreciate what you are doing there. Please keep
us updated on what we can do in Congress to help capitalize on
this recent success.
I yield back.
Mr. Webster of Florida. The gentleman yields back.
Ms. Scholten, you are recognized for 5 minutes.
Ms. Scholten. Thank you, Mr. Chair.
And thank you so much to our witnesses. Appreciate you
joining us today. This is such an important conversation.
As you both know, I am especially pleased to discuss the
issues facing Coast Guard City U.S.A., Grand Haven. I invite
you to our Coast Guard festival, the centennial this summer,
and it is a lovely time.
The Great Lakes are essential to American commerce, which
is why I am laser-focused on the U.S. Coast Guard Great Lakes
icebreaker program. As you know, the Coast Guard included $25
million in its fiscal year 2025 unfunded priorities list to
acquire new heavy icebreakers for the Great Lakes.
I have to endure a lot of jokes in Michigan, because we had
a low ice season, about whether or not we still need those. But
believe me, I know how much we do.
Planning out and trying to predict what comes in future
years is so essential, and we are unprepared right now when it
comes to the current state of our Great Lakes icebreakers.
This question is for Admiral Fagan.
In 2024, the $35 million that was requested was not funded.
How does this year's appropriation sort of come on the heels of
that unfunded priority from 2024? And how can we ensure that
this gets funded and we make up additionally what was lost from
2024?
Admiral Fagan. And I have testified previously, we are
committed to an additional Great Lakes icebreaker. It is
critical that we have year-round access to navigation in the
Great Lakes. This most previous winter's lack of ice
notwithstanding, it is vital to the economic security of the
Nation.
And so, funding received in 2024 will help us with the
analyze/select phase of acquisition for that icebreaker. From
the time you start analyze and select, it will still be a
number of years to actually build and field that icebreaker.
And so, I understand the urgency and the sense of concern over
the need to field the Great Lakes icebreaker.
A lot of discussion around Mackinaw, which is the current
icebreaker operating up there. It is a 20-year-old design.
There are some limits in hull form.
But we remain committed to the Great Lakes icebreaker as a
priority and in our 2025 UPL request $25 million for program
management and to begin bringing that program forward.
But understand the urgency, and we are committed to working
with the committee to ensure that that Great Lakes icebreaker
becomes a reality in the future.
Ms. Scholten. That is great. Well, let us know what we can
continue to do to help and push for that. It is so critical.
My second question.
Ensuring sufficient personnel is vital for the Coast Guard
to carry out its work and maintain defense readiness.
In its report last year, GAO confirmed that the Service's
workforce shortages are cyclical.
And data points, MCPO Jones, we are excited to hear about
your recruitment numbers coming in, but we have a huge gap to
make up from missing that mark since 2017.
With 49,000 Active Duty and Reserve personnel, the Coast
Guard's workforce is smaller than the city of New York's police
department.
Admiral Fagan, considering the importance of the operations
and support account to address the Coast Guard's attrition
challenges, how will the requested funds bolster additional
recruitment to keep up the good success that we are seeing
right now?
Admiral Fagan. So, we are seeing success in recruiting. And
I am thankful for support we have had from the committee in
previous years which has allowed us to reinvest in recruiting
capacity.
We have brought recruiters online. We have opened new
recruiting offices. We have stood up Junior ROTC programs. And
we are on track to have a program in all of our districts here
soon.
And we continue to make the needed investments to, one,
ensure that we are quicker from the time of contact to get
people into Cape May.
And the other thing we struggle with is not everybody knows
who the United States Coast Guard is. And so, illuminating to
the workforce and the talent out there who we are and what we
are as an organization.
We do have investments that we need to make. And we have
signaled through some of the UPL around our training center in
Cape May.
So, one, finding the talent, but then, two, you need to
give them the appropriate training experience when we bring
them through our single enlisted training source in Cape May.
But we continue to invest in workforce. And as I said, I am
excited about where the numbers are. But we need to continue to
gain ground.
Ms. Scholten. No greater asset than our Coasties. So, thank
you so much.
I yield back.
Mr. Webster of Florida. The gentlelady yields back.
Mr. Auchincloss, you are recognized for 5 minutes.
Mr. Auchincloss. Thank you, Chair.
Admiral and Master Chief, appreciate your testimony today.
I had the great pleasure of spending time earlier this week
at the invitation of Rear Admiral Platt in Boston with the
First District command and staff and enlisted, and was so
impressed--though not surprised--by the professionalism and
poise of the young officers and enlisted who are ensuring
readiness for search and rescue, who are enforcing our
fisheries laws and conservation mandate, and who are just
generally representing, I think, the very best of this country.
And I know both of you would be proud. And we need to recruit
and support more of this type of personnel in the Coast Guard.
And although I voted against the Coast Guard authorization
out of objections to a misguided offshore wind provision in
there, I am fully committed to resourcing and supporting the
Coast Guard as you perform your 11 essential missions.
Admiral, in your testimony, you discuss the importance of
the Coast Guard's presence in the Indo-Pacific region and the
increased demand from our allies and partners for sustained
Coast Guard presence.
I think it is a vitally important way that we project not
just hard, but also soft, power. People want to work with the
Coast Guard.
The fiscal year 2025 budget requests $263 million to expand
Coast Guard operations in the Indo-Pacific along three primary
lines of effort: increased presence, maritime governance, and
meaningful engagements.
As these kinds of operations and partnerships expand, do
you think the current structure of these operations is
effective? Would it potentially be more effective, for example,
to take lessons from the Combined Maritime Forces model based
in Bahrain that the Navy uses?
Admiral Fagan. So, we are very thankful for the support
that we received in the 2024 budget, which includes two
additional Fast Response Cutters beyond the original program of
record, and those will be focused into the mission sets in the
Indo-Pacific.
So, as we have looked at the opportunity that the Coast
Guard can provide to countering some of the problem set in the
Pacific, we have been articulating that these are investments
above the needs that the organization has right now, and we
have talked about the PC&I and maintenance challenges that we
are faced with.
And so, as money and support is provided, we look at
creating that opportunity, whether it is ships like the two
Fast Response Cutters, ships like the Harriet Lane, which was
funded as a Pacific support tender and re-homeported into
Honolulu.
We create incredible return on investment for the resources
that do focus into the region.
Mr. Auchincloss. I think Congress in a bipartisan manner is
convinced of that. The question is whether CMF, a Combined
Maritime Forces-style system, will work for the Coast Guard as
it has for the Navy in the Indo-Pacific.
Admiral Fagan. So, happy to work with the committee on
analysis. That system works well for us with regard to our
assets that are supporting Fifth Fleet. When and how to posture
forces across the Pacific, forces that include Coast Guard
forces, look forward to working with the committee on that
question.
Mr. Auchincloss. And what questions would you have as part
of that discussion?
Admiral Fagan. So, when you forward deploy ships, we need
to be clear-eyed with regard to the full support need--piers,
maintainers, logistics, infrastructure, family support--and
ensuring that we have thought through the totality of that so
that when you have an operating asset you can actually put them
into theater and operate them for effect to counter the threat.
Mr. Auchincloss. Isn't that true now though with or without
the Combined Maritime Forces model? Or why is that different
under that?
Admiral Fagan. So, the Combined Maritime Forces model,
those ships are permanently assigned in Bahrain. They work
under the operational and tactical control of the Navy.
Mr. Auchincloss. So, it is a permanent versus rotational.
Admiral Fagan. There are operating concepts to models,
several that need to be thought through with regard to sort of
the merits and pros and cons. Each brings cost and
infrastructure and logistics support. Just have not done the
analysis. But welcome the opportunity to have that conversation
with the committee.
Mr. Auchincloss. Is there a nation along the rim of the
South China Sea that if you think you were going to apply that
model to the South China Sea would work to be a permanent
station?
Admiral Fagan. What and how U.S. forces, and include Coast
Guard forces, are postured in the region is a conversation
broader than the Coast Guard, but we would welcome the
opportunity to be included in that.
Guam is a perfect example. I have Coast Guard forces in
Guam now.
Mr. Auchincloss. Right.
Admiral Fagan. There are a number of initiatives that the
Navy and the Marines have going on in Guam.
We need to be part of that conversation so that it doesn't
become just a DoD lens into the region with regard to our
national security needs.
Mr. Auchincloss. Got it. So, it is fair to say that the
Coast Guard is ready, willing, and able to have a conversation
about a CMF for the Indo-Pacific region?
Admiral Fagan. We welcome the opportunity to be part of
that Joint Force and part of that conversation.
Mr. Auchincloss. Thank you. I yield back.
Mr. Webster of Florida. The gentleman yields back.
Let's see, Mr. Garamendi, you are recognized.
Mr. Garamendi. Admiral and Mr. Jones, good work in
Baltimore. The rumors around here, all the chatter around here
is that the Coast Guard, working with the Army Corps of
Engineers, has done an extraordinary piece of work with the
bridge collapse in Baltimore. So, thank you. Another example:
If you want something done, get the Coast Guard.
Mr. Auchincloss, you were pursuing a very, very important
piece of questioning. In the 2021, 2022 Don Young Coast Guard
Authorization Act, it directs the Coast Guard to calculate the
cost of doing missions with or on behalf of other service
branches like the Navy.
Mr. Auchincloss, you had a detailed discussion with Admiral
Fagan about the Middle East, as well as the South Pacific.
The Navy cannot do its work without the Coast Guard. Yet
the Coast Guard, with a budget one one-thousandths of the U.S.
Navy, is expected to stand and to carry on tasks that the Navy
cannot do.
There is something seriously wrong here about this
situation. And the Department of Defense jealously guards every
$1 billion of the $900 or so that they have and refuses to
share any of that with the missions that the Coast Guard
carries on in support of the Navy and the United States
missions in those areas.
Is that correct, Admiral?
Admiral Fagan. We are 1.4 percent of the DoD budget. And,
as I articulated, it is not just the demand from allies and
partners for Coast Guard services, but, as I meet with every
one of the combatant commands, demand for the Coast Guard.
And the budget structure--this is broader than my
organizational changes--the budget structure creates that
challenge with regard to funding for work that the Coast
Guard--national security work, defense work--that the Coast
Guard does on behalf of the Nation.
Mr. Garamendi. My point here is that we need the
information so that we can fight on your behalf. Please, it has
been 1 year, almost 2 years now.
Tell us what you are spending in these--also the Caribbean,
the South Pacific, the Arctic, and also the Middle East--so
that we can then carry on an argument with the Department of
Defense about the financial support that is absolutely
essential to the security of this Nation and to your
operations.
And, Mr. Auchincloss, you are on this. Thank you for
raising this issue.
I came in on the discussion of the Polar Cutter, and I
promised myself I wouldn't raise it. It has been 11 years, 11
years since this committee raised the issue, started the
project.
It is really essential that you come to us with why it
hasn't been done, what are the problems, what is your solution.
There is no way that the United States role in the Arctic can
be achieved without these icebreakers.
And I am not saying just one; it has to be more than one.
It is a hell of a lot more important than the money that we are
spending with a whole bunch of billions last night in the Armed
Services NDAA markup. You have got to get us detailed
information about why it isn't going forward and what you need
to make it happen.
So, please, it is a national security issue of profound
importance, and we are way, way late here. So, please do that.
Deliver it to the committee, if you would.
Offshore wind. The legislation in 2021. The President
signed an amendment that I put forward in the Coast Guard bill
that closed a loophole in the Outer Continental Shelf Lands Act
by applying all Federal, labor, environmental, immigration,
customs, antitrust, and Jones Act to the Outer Continental
Shelf wind industry.
Customs and Border Patrol has made some progress in writing
rules and regulations to carry out that law. You haven't. Why?
Admiral Fagan. I am aware of the law, aware of the
challenges around offshore wind. We are committed to continuing
to work to implement the intent with regard to the committee
and Congress' desires in that regard.
Mr. Garamendi. Why haven't you done it?
Admiral Fagan. We are engaged in the process around the
notice of proposed rulemaking, and we will continue to work
with the committee specific to the legislation as it pertains
to Jones Act application. And I am happy to have the team
provide the current status of those efforts.
Mr. Garamendi. Little things mean a lot. This is a major
issue about how we are going to participate--the American
industry, American workers, American maritime--we are going to
participate in the offshore wind industry. Your regulations are
critically important in carrying out the law, as are the U.S.
Customs and Border Protection regulations.
For the committee, some of this committee is on the Armed
Services Committee also, some of the Members. Maybe it is a
hangover from the extraordinary money that was spent last night
as we finished up the NDAA.
I am definitely out of time, and I yield back.
Mr. Webster of Florida. The gentleman yields back.
Mr. Van Drew, you are recognized for 5 minutes.
Dr. Van Drew. Thank you, Chairman.
Although Training Center Cape May is such a--in fact, let
me start at the beginning.
Training Center Cape May is the fifth largest base in the
Coast Guard and the sole accession point for the entire
enlisted workforce.
In turn, the Coast Guard is a fundamental part, as you
know, of the culture and the economy of southern New Jersey.
Although Training Center Cape May is such a vital piece of
shoreside infrastructure through the Coast Guard, many
facilities are in urgent need of repair--and I know, again, you
are very aware of this--especially the barracks.
While I am glad to see that $225 million is authorized in
fiscal year 2025 for the improvements of facilities at the
training center, I am aware that phase 1 construction is
currently running over budget.
I personally testified in front of the Appropriations
Subcommittee on Homeland Security and submitted a request for
this project. So, I want to ensure that enough funds are
provided to complete this project entirely. It is an important
project.
Commandant Fagan, thank you for being here again. It is
good to see you again. And thank you for taking the time to be
here today.
Could you provide an update on the progress of phase 1 of
the barracks? And how much more money are we going to need over
the requested budget for this project?
Admiral Fagan. Thank you for the question.
I do not have a specific figure with me but will commit to
you to come back and do that. I remain committed to the
investments at Cape May. As you have highlighted, it is
critical that our enlisted workforce has access to safe and
modern buildings and training facilities.
I know you are aware of the broader investment plan and
strategy that we have for Cape May and welcome the opportunity
to come over and share exact status of phase 1 and then plans
for the additional phases as we look to gain funding support
for those critical investments in Cape May.
Dr. Van Drew. I would appreciate that, Commandant, and if
you could share that, obviously with me, but also with the
entire committee. It is not only important to New Jersey or
Cape May; as you know, it is important to the entire country.
And with the changes--some of them good--that are occurring
in the Coast Guard, with many more women coming into the Coast
Guard, we want to ensure that those barracks are updated. It is
essential.
My team was recently up in South Jersey at a public meeting
on navigation, and it was navigation safety, where they met
with members of the Coast Guard. And they took the opportunity
to express the concerns of dozens of my constituents that were
there.
It represents many thousands of my constituents, tens of
thousands, including fishermen, tug barge, and shipping vessel
operators and recreational boat users, about the navigational
security issues that exist relating to the offshore wind
projects.
Now, I am going to do a change of tack for me. I am not
going to attack the offshore wind projects today, even though I
am thoroughly, completely, totally opposed to them for many,
many different reasons.
But today, I want to really reference their conversations
and let the Coast Guard acknowledge that there is a risk of
vessel radar interference from wind turbine towers. Personally,
I hope we are never going to have to worry about it.
However, do you also recognize the concerns with the radar
interference?
Admiral Fagan. Thank you.
We are obviously working closely with regard to the
challenges presented by the wind farms. We have completed a
number of studies. We participated in that public meeting you
referenced. We have got a notice of proposed rulemaking out
with a comment period that will close on 17 May, committed to
the environmental study in process, and we are fully engaged
with that process and with BOEM as well.
With regard to the radar issue, we participated in a
National Academy of Sciences working group, but we have
provided guidance in the form of a navigation vessel
inspection.
It is an advisory notice to proactively address potential
risks. It includes requirements for warning signals, devices,
charting, uniforms, spaces, safety equipment.
We are committed to the safety of navigation and addressing
those challenges and issues specific to wind farms and have
engaged on the challenge----
Dr. Van Drew [interrupting]. There are a lot of real
concerns out there, Commandant, and I appreciate that. And both
issues that were brought up were done so to ensure that our
Coast Guard--and I am sure yours--were well provided for and
can operate in the safest way possible. And I urge
consideration of the safety risks that are prevalent to the
entire maritime community posed by offshore wind.
I am happy to work with you, I am happy to work with your
team, and I am happy to work to ensure that the barracks and
other shoreside infrastructure projects at the Training Center
Cape May are completed, because it is for the good of America,
not just for the good of New Jersey.
And most of all, I am willing to work with you on these
wind turbine issues. I think they are very serious and of
tremendous concern. I think these projects are not well thought
out, in my opinion.
But I do appreciate you and the work that you do. And I
always love the Coast Guard. And it is good to see you here
today.
Mr. Chairman, I yield back.
Mr. Webster of Florida. The gentleman yields back.
Mrs. Peltola.
Mrs. Peltola. Thank you, Mr. Chairman.
Commandant, thank you.
Before I begin my line of questioning, I just wanted to
bring up some concerns that I have heard this week regarding a
work order that was issued 11 months ago by the Office of
Vessel Compliance called Issued Work Instruction 032.
And what that work instruction potentially--there are
potential negative impacts to the fishing vessels that make up
the Alyeska Pipeline Ship Escort Response Vehicle System in
Prince William Sound.
After the Exxon Valdez hit Bligh Reef, the fishing vessels
within Prince William Sound rallied and really helped us with
that major oilspill, and that continues to be our fleet that is
the oil response fleet.
This fishing fleet is the backbone of Alyeska's pipeline
oil response program, and the vessels are used to transport
response equipment, deploy and tend boom, mobilize pre-stage
equipment to protect hatcheries, and to recover oil into micro
and mini barges that have a capacity to carry less than 250
barrels of oil.
The Alyeska SERVS oilspill response system for Prince
William Sound has been held up as a world-renowned model,
largely because of the contracted and trained fishing vessel
response fleet, and that work order has created a lot of
ambiguities for them and the Prince William Sound region.
And I know that this probably isn't something that you are
directly involved with, but I really wanted to put it on your
radar and see if I can get your help in addressing some of
those ambiguities in that work order.
Admiral Fagan. Yes. No, thank you for raising the issue.
And my staff is absolutely engaged on that issue as we seek to
find the right balance to ensure that oilspill planning and
response capabilities in Alaska--and I know it is different in
Alaska--but I am committed to working with you and the
stakeholders to ensure that we strike that right balance.
Mrs. Peltola. OK. And I have some other questions about
asking you to help me and my office keep on track of the
timelines for the Fast Response Cutter headed to Seward, the
Fast Response Cutter headed to Sitka, and the icebreaker headed
to Juno.
And I also had a question prepared for me for Master Chief
Jones regarding the childcare facilities, and I know that that
is an ongoing work effort.
But I am going to forgo these questions.
I just came from a seafood roundtable that we had with our
two Senators and Secretary Raimondo from Department of
Commerce.
And what we have in Alaska right now is a fishing industry
in freefall, and so much of it is because of the war with
Russia and Russia's need to fund their war against Ukraine. And
much of that funding is coming literally from stolen fish from
Alaska. There are salmon that are being trawled in waters that
border with Russia, and many of our seafood resources go back
and forth.
And Russia has upped their quota. And they also--not only
are they unsustainably harvesting just astronomical amounts and
really glutting the market, but they also are using Chinese
slave labor. And much of the product is being processed through
China using slave Uyghur labor.
So, that really puts Alaskan fishermen and United States
fishermen at a severe disadvantage when the harvests are
exorbitant and then there is almost no overhead in processing
these.
And what the Senators and I are trying to do is to elevate
this to the national security issue that it is and the global
issue that it is when we are talking about using United States
resources to fund this war against Ukraine. And I am wondering
how we can better give the Coast Guard resources to help this.
And I think it is noteworthy to mention that in Alaskan
waters, we have had the Coast Guard alert us that Chinese and
Russian warships are in formation in Alaskan waters, and the
deterrent right now is the presence of the Coast Guard. We
really don't have a Navy presence. The Navy doesn't like ice,
so, it falls to you all to protect America in Alaska's waters.
And that doesn't even speak to the search-and-rescue
efforts that you do every day. And I understand that there was
a submerged vessel near Sitka that you all have been responding
to, and I really appreciate that response, although it looks
like it is all bad news from that incident. But so often it is
good news because you are out there rescuing Alaskans and
United States citizens almost daily.
But this issue of national security and our economies being
very impacted by Russia, I am wondering, how can we help make
sure you have the resources to tackle this?
Admiral Fagan. So, I will commit to having my staff engage
with yours. There are a number of elements in the issues that
you raised, starting with illegal fishing, our role in illegal
and unregulated fishing, presence in the Arctic, the
criticality of the Polar Security Cutter, the assets that we do
have in Alaska.
And we will have FRCs in Sitka and Seward. I am happy to
affirm that.
But we will come over, because it will probably merit just
broader conversation than what we can do here. But look forward
to that conversation with you and your team.
Mrs. Peltola. Thank you, Mr. Chair.
Mr. Webster of Florida. The gentlelady yields back.
Are there any more questions from Members? Anybody that I
haven't recognized yet?
Well, I have one. I have been recognized, but I have got to
ask this.
So, for, I guess, for the purposes, Admiral Fagan, for the
purpose of our Members in Florida, can you assure me that the
Coast Guard is prepared to confront the potential mass
migration of Haitian migrants?
Admiral Fagan. We are obviously engaged. We have Coast
Guard assets employed in the Caribbean, in the Florida Straits,
in the Mona Pass every day to ensure that, one, attempts at
illegal maritime migrations don't result in the loss of life.
It is critical, lifesaving work.
But we have assets postured to prevent and mitigate those
kinds of attempts. We have been in that posture for quite some
time.
We have contracted with Saildrone to increase some capacity
and awareness, and we continue to remain very focused on
preventing illegal attempts, and when it does occur, again,
ensuring that people don't lose their lives.
The flows ebb and flow seasonally. We are postured the way
we need to be right now.
Thank you, sir.
Mr. Webster of Florida. Thank you very much.
So, we are done. No one else to recognize.
And the subcommittee stands adjourned.
[Whereupon, at 11:25 a.m., the subcommittee was adjourned.]

Submissions for the Record

----------

Prepared Statement of Hon. Rick Larsen of Washington, Ranking Member,
Committee on Transportation and Infrastructure
Thank you, Chair Webster and Ranking Member Carbajal, for calling
today's hearing.
The U.S. Coast Guard plays a vital role in safeguarding U.S. seas,
the efficient movement of goods in our marine transportation system and
national defense.
The women and men of the Coast Guard conduct search and rescue
operations at sea, prevent the shipment of drugs across our maritime
borders and ensure safety and security in the Arctic and across the
world.
The Coast Guard is a lifesaving agency, a regulatory agency, a law
enforcement agency and a military agency. Each aspect is critical to
our national and economic security.
The Coast Guard is facing increasing mission demand, a workforce
shortage of nearly 10 percent, an aging fleet of assets, delays in
major acquisition projects and growing fallout from ``Operation Fouled
Anchor''--the report outlining the Service's previous failure to report
sexual assault and harassment cases at the Coast Guard academy.
The Coast Guard is at a pivotal moment. I have faith in Admiral
Fagan's ability to guide the service through this difficult time, but
it will not be easy, and transparency is key.
Today is an opportunity to discuss our expectations for the Coast
Guard and gain a better understanding of the resources that the Service
requires.
For fiscal year 2025, the Coast Guard has requested $13.8 billion,
which represents a 4.8 percent increase over the 2024 enacted budget.
Unfortunately, that isn't enough. I agree with the Commandant that the
Coast Guard needs to be a $20 billion service by 2030.
Achieving $20 billion by 2030 would require a budget increase of
over $1 billion a year, but past budget requests and enacted
appropriations have failed to put us on that trajectory.
If we do not appropriately fund the Coast Guard, we should expect
near term decreases in service and readiness. This includes fewer
search and rescue operations, fewer drug and migrant interdictions and
fewer marine casualty responses.
Last week, the House passed the bipartisan Coast Guard
Authorization Act of 2024, which had a robust funding level of $15.9
billion for the Coast Guard for fiscal year 2025. This is over $2
billion more than the President's budget and what is required to
maintain Coast Guard operational readiness.
I remain concerned with the poor condition of many buildings
servicemembers must work and live in on a daily basis. Inadequate
housing and childcare are a persistent complaint among servicemembers.
If we want to increase retention and diversity, we must do more to
support our Coast Guard members.
The fiscal year 2025 budget decreases the amounts for shoreside
infrastructure by 58 percent, a significant drop. This is unacceptable
given the Coast Guard's $3 billion shoreside infrastructure maintenance
backlog.
The Coast Guard has indicated that it will require at least $500
million per year to prevent the infrastructure maintenance backlog from
growing--this year's request of $167 million falls far short of that
goal.
The Coast Guard needs to recruit over 4,000 servicemembers to reach
its annual recruiting goal. I look forward to an update on progress
made to meet the 2024 recruitment goal.
The Service's current workforce shortage is having major impacts on
mission readiness, for example, forcing station closures and cutter
decommissions this year. The Coast Guard cannot continue to be asked to
do more with less.
As the agency responsible for maintaining a U.S. presence in the
Arctic, icebreaking capabilities are vital to the Coast Guard.
The Coast Guard maintains two heavy icebreakers, although only one
is currently operating. Replacing these cutters is long overdue and the
need to do so has only increased.
The ongoing acquisition of three new icebreakers--known as Polar
Security Cutters--has faced major delays and the Service has yet to
release a new budget and delivery estimate on the program.
The Congressional Budget Office recently estimated that this
program will cost well over $1 billion. I expect to hear from the
Commandant today on the Coast Guard's plan going forward.
Finally, I would like to take a minute to recognize the work the
Coast Guard has done to help address sexual assault and sexual
harassment in the commercial maritime industry.
Since Congress enacted the Safer Seas Act in 2022, the Coast Guard
has taken immediate action to ensure prompt implementation.
While the Coast Guard has acted swiftly to address workplace
respect within the maritime industry, there is work to be done within
the Coast Guard to rebuild internal trust and transparency. I expect to
hear more today on the Commandant's progress on the directed actions
from the Accountability and Transparency Review.
Thank you, and I yield back.

Appendix

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Questions to Admiral Linda L. Fagan, Commandant, U.S. Coast Guard, from
Hon. Jefferson Van Drew

Question 1. The FY23 NDAA grounded the Coast Guard's fleet of
Chinese-made drones. While this was undoubtedly good for our national
security, Congress has yet to provide the necessary funding for a full
replacement of the Coast Guard's drone fleet. Instead, the Coast Guard
has relied on existing operating funds to replace a fraction of the
drones that you once had. Given the critical training activities
conducted at the Coast Guard Training Center in Cape May, could you
please provide us with an overview of the importance of drones to Coast
Guard operations and detail any plans to incorporate drone training
into the curriculum at Cape May?
Answer. The Coast Guard recognizes the mission enabling
capabilities provided by small drones. For example, Coast Guard drones
were on scene within hours of the Key Bridge collapse, providing
critical imagery of the structure to guide initial response efforts.
Drones additionally supported search and rescue efforts in the wake of
the fires in Maui, HI and have also proven to be extremely useful for
mapping small oil spills and inspecting hard to reach aids to
navigation. Training Center Cape May is the Coast Guard's sole
accession point for the enlisted workforce while drone training is
centralized at the Aviation Training Center (ATC) in Mobile, AL. The
Coast Guard does not have any plans to incorporate drone training into
the basic training curriculum at Training Center Cape May.

Question 2. Additionally, how would additional funding help enhance
this aspect of the training programs at Cape May?
Answer. The Coast Guard does not have any plans to incorporate
drone training into the basic training curriculum at Training Center
Cape May. Drone training is centralized at the ATC in Mobile, AL, the
Coast Guard's aviation and capabilities development center.

Question to Admiral Linda L. Fagan, Commandant, U.S. Coast Guard, from
Hon. Salud O. Carbajal

Question 1. Admiral Fagan, with the passage of the Safer Seas Act,
the Coast Guard is tasked with implementing several new authorities and
requirements for industry.
How important is the requirement to report harassment to the Coast
Guard and how does the Coast Guard plan to use that information?
Answer. The Coast Guard considers the requirement to report
harassment a key element in addressing mariner misconduct in the
maritime domain before behaviors may escalate to higher level offenses
(e.g., sexual harassment, sexual assault) or negatively impact the
safety of the vessel to the point of contributing to a marine casualty.
Prior to the Safer Seas Act, the majority of mariner harassment cases
were either ignored or handled through internal company investigations
without Coast Guard involvement or awareness. In the most egregious
cases, serial offenders who were fired by their employers for severe
incidents of hazing and/or bullying successfully sought out employment
with another marine employer where the harassing behaviors continued.
Prior to the Safer Seas Act, companies were not required to report
harassment misconduct to the Coast Guard. However, when voluntary
reports were received, the Coast Guard was able to pursue
administrative suspension and revocation (S&R) enforcement cases
against the perpetrator's merchant mariner credential (MMC) for
violating their company's policy. The S&R cases helped to remediate the
harassing conduct with appropriate sanctions, including suspensions,
probation, and state-certified anti-harassment courses. Prior to the
Safer Sea Act, the Coast Guard had adjudicated less than 10 harassment
related cases for the five-year period ending in December 2022. As of
June 14, 2024, the Coast Guard is actively investigating 161 harassment
cases. Multiple cases have also been fully adjudicated with sanctions
ranging from revocation of the mariner's MMC to issuance of letters of
warning to address minor offenses. The Coast Guard is in the process of
determining the average duration of a harassment investigation, and
attempting to assess the long-term projected impacts on the
investigating officer workforce. Harassment enforcement cases along
with associated new training requirements, have been inserted as new
priorities for the existing pool of field investigators, adding to
their traditional marine casualty investigation and suspension and
revocation enforcement duties.