Coast Guard Surges Under New Commandant

Adm. Kevin Lunday takes the helm of the U.S. Coast Guard during what could be one of the most momentous eras in its long history. Last July, the Coast Guard was authorized an extra $25 billion in the One Big Beautiful Bill Act, the largest single funding commitment in its history. It requires funding for fleet modernization (icebreakers, cutters, aircraft), infrastructure upgrades and enhanced maritime surveillance.

This funding is in addition to the Coast Guard’s regular annual budget, which is approximately $12-13 billion. Its typical annual procurement budget is between $1 billion and $2 billion. While the shot of funding represents one of the largest “surges” in Coast Guard capacity in its history, it is still smaller than wartime surges or the one following the 9/11 attacks.

The Coast Guard has said it wants to obligate all of that money in contracts by January 2027. As of early 2026, about $7.7 billion dollars are reportedly already obligated.

The surge is good news for the country’s national security. For shipyards, it represents good news, but also extreme pressure. By itself, funding won’t eliminate all sources of delay in shipbuilding, as some recent cancellations have made clear.

As with lock and dam infrastructure, the funding surge is making up for years and decades of under-investment. The surge comes at a time when the Coast Guard is being asked to do more than ever. It possesses legal authorities related to drug interdiction and vessel boarding and seizure that the U.S. Navy doesn’t, which is why it’s been a partner in recent joint operations against drug boats.

All this expansion also requires stepped-up recruitment. Fortunately, the Coast Guard had a highly successful Fiscal Year 2025 (ending Sept. 30, 2025). It reports that it exceeded all recruiting goals with 5,204 active-duty enlisted members (121% of target), 371 officers (101% of target) and 777 reservists (104% of target), marking its best recruitment drive since 1991, driven by investments and the Force Design 2028 initiative for growth.

With an increased budget for fleet modernization, over-goal recruitment and help from America’s shipyards, Lunday has an important part in this next chapter for the Coast Guard.