[House Hearing, 119 Congress]
[From the U.S. Government Publishing Office]


                      THE FUTURE OF THE COAST GUARD: REVIEW 
                     OF COAST GUARD PROGRAMS AND STRUCTURE
=======================================================================

                                (119-24)

                                HEARING

                               BEFORE THE

                            SUBCOMMITTEE ON
                COAST GUARD AND MARITIME TRANSPORTATION

                                 OF THE

                              COMMITTEE ON
                   TRANSPORTATION AND INFRASTRUCTURE
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED NINETEENTH CONGRESS

                             FIRST SESSION

                               __________

                              JUNE 5, 2025

                               __________

                       Printed for the use of the
             Committee on Transportation and Infrastructure
             
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                             transportation
                             
                             
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                   U.S. GOVERNMENT PUBLISHING OFFICE                    
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             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,
Jerrold Nadler, New York               Vice Chairman
Steve Cohen, Tennessee               Daniel Webster, Florida
John Garamendi, California           Thomas Massie, Kentucky
Henry C. ``Hank'' Johnson, Jr., Georgiaott Perry, Pennsylvania
Andre Carson, Indiana                Brian Babin, Texas
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        Pete Stauber, Minnesota
Greg Stanton, Arizona                Tim Burchett, Tennessee
Sharice Davids, Kansas               Dusty Johnson, South Dakota
Jesus G. ``Chuy'' Garcia, Illinois   Jefferson Van Drew, New Jersey
Chris Pappas, New Hampshire          Troy E. Nehls, Texas
Seth Moulton, Massachusetts          Tracey Mann, Kansas
Marilyn Strickland, Washington       Burgess Owens, Utah
Patrick Ryan, New York               Eric Burlison, Missouri
Val T. Hoyle, Oregon                 Mike Collins, Georgia
Emilia Strong Sykes, Ohio,           Mike Ezell, Mississippi
  Vice Ranking Member                Kevin Kiley, California
Hillary J. Scholten, Michigan        Vince Fong, California
Valerie P. Foushee, North Carolina   Tony Wied, Wisconsin
Christopher R. Deluzio, Pennsylvania Tom Barrett, Michigan
Robert Garcia, California            Nicholas J. Begich III, Alaska
Nellie Pou, New Jersey               Robert P. Bresnahan, Jr., 
Kristen McDonald Rivet, Michigan     Pennsylvania
Laura Friedman, California           Jeff Hurd, Colorado
Laura Gillen, New York               Jefferson Shreve, Indiana
Shomari Figures, Alabama             Addison P. McDowell, North 
                                     Carolina
                                     David J. Taylor, Ohio
                                     Brad Knott, North Carolina
                                     Kimberlyn King-Hinds,
                                       Northern Mariana Islands
                                     Mike Kennedy, Utah
                                     Robert F. Onder, Jr., Missouri
                                     Jimmy Patronis, Florida
                                ------                                7

        Subcommittee on Coast Guard and Maritime Transportation

                   Mike Ezell, Mississippi, Chairman
             Salud O. Carbajal, California, Ranking Member
Daniel Webster, Florida              Chris Pappas, New Hampshire
Brian J. Mast, Florida               Marilyn Strickland, Washington
Jefferson Van Drew, New Jersey       Hillary J. Scholten, Michigan
Nicholas J. Begich III, Alaska       Robert Garcia, California,
Addison P. McDowell, North             Vice Ranking Member
    Carolina,                        John Garamendi, California
  Vice Chairman                      Rick Larsen, Washington (Ex 
Jimmy Patronis, Florida                  Officio)
Sam Graves, Missouri (Ex Officio)

                                CONTENTS

                                                                   Page

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

                 STATEMENTS OF MEMBERS OF THE COMMITTEE

Hon. Mike Ezell, a Representative in Congress from the State of 
  Mississippi, and Chairman, Subcommittee on Coast Guard and 
  Maritime Transportation, opening statement.....................     1
    Prepared statement...........................................     3
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...........     4
    Prepared statement...........................................     6
Hon. Sam Graves, a Representative in Congress from the State of 
  Missouri, and Chairman, Committee on Transportation and 
  Infrastructure, opening statement..............................     7
    Prepared statement...........................................     7

                                WITNESS

Admiral Kevin E. Lunday, Acting Commandant, U.S. Coast Guard, 
  oral statement.................................................     8
    Prepared statement...........................................    10

                                APPENDIX

Questions to Admiral Kevin E. Lunday, Acting Commandant, U.S. 
  Coast Guard, from:
    Hon. Mike Ezell..............................................    41
    Hon. Marilyn Strickland......................................    43
    Hon. Hillary J. Scholten.....................................    44
    Hon. John Garamendi..........................................    45
    Hon. Laura Gillen............................................    46

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                              May 30, 2025

    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 ``The Future of the Coast Guard: Review 
of Coast Guard Programs and Structure''
_______________________________________________________________________


                               I. PURPOSE

    The Subcommittee on Coast Guard and Maritime Transportation 
of the Committee on Transportation and Infrastructure will meet 
on Thursday, June 5, 2025, at 10:00 a.m. ET in 2167 Rayburn 
House Office Building to receive testimony at a hearing 
entitled, ``The Future of the Coast Guard: Review of Coast 
Guard Programs and Structure.'' The hearing will focus on the 
programs and structure of the Coast Guard. The Subcommittee 
will hear testimony from the Acting Commandant of the Coast 
Guard.

                             II. BACKGROUND

HISTORY OF THE COAST GUARD

    The United States Coast Guard (Coast Guard or Service) 
traces its roots to August 4, 1790, with the creation of the 
Revenue Cutter Service.\1\ On January 28, 1915, the Revenue 
Cutter Service consolidated with the Lifesaving Service 
(established in 1848) and formally became the Coast Guard.\2\ 
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).\3\
---------------------------------------------------------------------------
    \1\ U.S. Coast Guard, History Timeline, available at https://
www.history.uscg.mil/home/history-program/.
    \2\ Id.
    \3\ 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.\4\ 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.\5\
---------------------------------------------------------------------------
    \4\ 14 U.S.C. Sec.  102.
    \5\ Homeland Security Act of 2002, Pub. L. 107-296, title VIII, 
Sec.  888.
---------------------------------------------------------------------------
    The Coast Guard is directed by a Commandant who is 
appointed by the President, with the advice and consent of the 
Senate, to a four-year term.\6\ Admiral Kevin E. Lunday was 
nominated as the 28th Commandant of the Coast Guard in May 
2025.\7\ His confirmation hearings are forthcoming. The 
Commandant selects a Master Chief Petty Officer of the Coast 
Guard, who is the principal advisor on enlisted personnel 
matters. Master Chief Heath Jones assumed the duties of the 
14th Master Chief Petty Officer of the Coast Guard on May 19, 
2022, and a new Master Chief Petty Officer of the Coast Guard 
will be selected this year.\8\
---------------------------------------------------------------------------
    \6\ 14 U.S.C. Sec.  302.
    \7\ E-mail from Coast Guard Liaisons to H. Comm. on Transp. and 
Infrastructure Staff (May 21, 2025) (on file with Comm.).
    \8\ Id.
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IMPACTS OF COAST GUARD UNDERCAPITALIZATION

    The Coast Guard has endured chronic undercapitalization for 
decades, jeopardizing the Service's ability to carry out its 
missions. Recognizing that many of its assets were nearing the 
end of their service lives or were technologically 
insufficient, in 2007, the Coast Guard approved a program of 
record to modernize its surface, air, information technology 
(IT), and shoreside infrastructure, which has subsequently been 
updated.\9\ Unfortunately, many of these assets were then 
operated well beyond their planned service life because funds 
to carry out the recapitalization were not forthcoming. The 
Coast Guard is more than 17 years into this recapitalization 
program and though significant progress has been made, heavy 
icebreakers and medium endurance cutters are aging out before 
they can be replaced. In addition, two of the Coast Guard's 
primary aircraft, the Eurocopter MH-65 Dolphin, and the Alenia 
C-27J Spartan, are slated to be retired from service.\10\
---------------------------------------------------------------------------
    \9\ U.S. Gov't Accountability Off., GAO-17-654T, Coast Guard 
Recapitalization: Matching Needs and Continued Resources To Strain 
Acquisition Efforts (2017), available at https://www.gao.gov/assets/
690/685201.pdf.
    \10\ Budget Hearing--Fiscal Year 2025 Request for United States 
Coast Guard: Hearing Before the Subcomm. on Homeland Security of the H. 
Comm. on Appropriations, 118th Cong. (May 1, 2024) (statement of 
Admiral Fagan, U.S. Coast Guard).
---------------------------------------------------------------------------
    While the Coast Guard has successfully undertaken some of 
the steps outlined in its original recapitalization vision, 
such as the procurement and deployment of the Fast Response 
Cutter (FRC), programs such as the Offshore Patrol Cutters 
(OPC), Polar Security Cutters (PSC), rotary wing aircraft and 
shoreside infrastructure remain dangerously behind schedule due 
to inadequate funding requests, and equally inadequate 
appropriations. These shortcomings have created serious 
capability gaps in the ability of the Service to field the 
assets needed to fulfill its mission demands.\11\ Most 
alarmingly, as the Coast Guard has been forced to temporarily 
place assets out of service as a consequence of underfunding, 
lack of manpower, and deferred maintenance. The Government 
Accountability Office (GAO) found that Coast Guard operational 
hours have fallen across all missions while costs have 
increased.\12\
---------------------------------------------------------------------------
    \11\ U.S. Gov't Accountability Off., GAO-17-654T, Coast Guard 
Recapitalization: Matching Needs and Continued Resources To Strain 
Acquisition Efforts (2017), available at https://www.gao.gov/assets/
690/685201.pdf.
    \12\ E-mail from GAO to H. Comm. on Trans. and Infrastructure Staff 
(May 15, 2025) (on file with Comm.).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                       LFigure 1: GAO Chart \13\

FORCE DESIGN 2028

    On\\ April 3, 2025, Department of Homeland Security (DHS) 
Secretary Kristi Noem announced Force Design 2028 (FD2028), the 
Trump Administration's vision for the future of the Coast 
Guard.\14\ On May 21, 2025, Secretary Noem provided an 
Executive Report on Force Design 2028, which outlined the goals 
of the initiative as: \15\
---------------------------------------------------------------------------
    \13\ Id.
    \14\ U.S. Coast Guard, Coast Guard Force Design 2028, available at 
https://www.mycg.uscg.mil/News/Article/4145599/coast-guard-force-
design-2028/.
    \15\ U.S. Coast Guard, Force Design 2028 Executive Report (2025), 
available at https://www.uscg.mil/leadership/Commandants-Initiatives/
ForceDesign2028/.
---------------------------------------------------------------------------
    1) LEstablishing a Coast Guard Service Secretary that will 
have authorities similar to those of the civilian leadership of 
other military services. The position would report to the 
Departmental Secretary and establish the strategic direction 
for the Coast Guard.
    2) LAgency reorganization that serves to streamline 
processes, integrate capabilities, and eliminate redundancies.
    3) LInvesting in people, including modernizing the 
workforce, building up the Coast Guard reserve, and investing 
in the Officer Corps.
    4) LInvesting in technology to improve maritime 
surveillance, replacing antiquated technology merchant mariners 
rely on, and improving the Service's logistics and human 
resources.
    5) LImproving and streamlining acquisition processes to 
improve efficiency and accountability.

            III. FISCAL YEAR 2026 BUDGET FOR THE COAST GUARD

    On May 2, 2025, President Trump released an initial 
``skinny budget'' for FY 2026.\16\ While limited in detail, the 
Budget proposes a $43.8 billion increase for DHS, with 
increases primarily driven through reconciliation process 
investments. The Budget states this funding will allow the 
Coast Guard to ``modernize the fleet and facilities of the 
Coast Guard.'' \17\ Currently, no details on specific funding 
request amounts for Coast Guard programs are available. On May 
8, 2025, the Coast Guard submitted its FY 2025 Spend Plan to 
the House and Senate Appropriations Committee, details of which 
are outlined in a chart which has been included in Appendix 
I.\18\
---------------------------------------------------------------------------
    \16\ Letter from Russell T. Vought, Director, Off. of Mgmt. & 
Budget, Exec. Off. of the President to Senator Susan Collins (May 2, 
2025) available at https://www.whitehouse.gov/wp-content/uploads/2025/
05/Fiscal-Year-2026-Discretionary-Budget-Request.pdf.
    \17\ Id.
    \18\ Email from Coast Guard Liaisons to H. Comm. on Transp. and 
Infrastructure (May 9, 2025) (on file with Comm.).
---------------------------------------------------------------------------

                     IV. RECONCILIATION INVESTMENTS

    The Committee on Transportation and Infrastructure 
Reconciliation Committee Print was approved by the Committee on 
April 30, 2025 and was included in H.R. 1, the One Big 
Beautiful Bill Act, which was passed by the House of 
Representatives on May 21, 2025.\19\ The measure appropriates 
$21.2 billion to recapitalize the Coast Guard's afloat and air 
assets and to rebuild the Service's crumbling shoreside 
infrastructure and facilities.\20\
---------------------------------------------------------------------------
    \19\ Press Release, H. Comm. on Transp. and Infrastructure, T&I 
Committee Approves Budget Reconciliation, (Apr. 30, 2025), available at 
https://transportation.house.gov/news/
documentsingle.aspx?DocumentID=408584; H. Comm. on Rules, Committee 
Print 119-3, (May 18, 2025), available at https://rules.house.gov/
sites/evo-subsites/rules.house.gov/files/documents/rcp_119-3_final.pdf 
[hereinafter Committee Print 119-3].
    \20\ Committee Print 119-3, supra note 19.
---------------------------------------------------------------------------
    For surface assets, the measure appropriates $4.3 billion 
for Offshore Patrol Cutters (OPCs) and $1 billion for Fast 
Response Cutters (FRCs). This funding is intended to procure 
additional FRCs. FRCs have proven to be a reliable workhorse 
for the Coast Guard as the Service decommissioned the last of 
the 110-foot Island Class Patrol Boats, with a handful of the 
87-foot Marine Protector Class Coastal Patrol Boats remaining. 
The funding is also intended to fund nine OPCs to complete the 
first two phases of the OPC program of record. To support the 
Service's National security measures to project sovereignty in 
the Arctic, the measure provides $4.3 billion for the Polar 
Security Cutter and nearly $5 billion for the Arctic Security 
Cutter Program and domestic icebreakers.\21\
---------------------------------------------------------------------------
    \21\ Id.
---------------------------------------------------------------------------
    The reconciliation measure also makes significant 
investments in the Service's air assets. The measure provides 
$571.5 million for fixed wing assets, $1.283 billion for rotary 
wing assets, and $140 million for long-range unmanned aircraft 
systems.\22\ The fixed wing funding is intended to support the 
acquisition of three new, fully missionized HC-130J aircraft to 
complete the Service's program of record of 22 aircraft. 
Funding for rotary wing assets is intended to support fleet 
growth of the MH-60T program.\23\
---------------------------------------------------------------------------
    \22\ Id.
    \23\ Id.
---------------------------------------------------------------------------
    The Coast Guard requires substantial enhancements to its 
shoreside infrastructure to facilitate new assets and more 
complex mission sets. Currently, limitations in existing 
physical infrastructure have hindered newer platforms from 
utilizing the full scope of Coast Guard capabilities. Moreover, 
due to years of underinvestment, the Coast Guard's shoreside 
infrastructure is in a state of disrepair. GAO estimates that 
it will cost at least $7 billion to address the Service's 
backlog of shoreside projects, with half of the Service's 
facilities beyond their intended service life.\24\ The number 
is likely higher, as GAO's estimate does not include 234 
projects for which the Coast Guard has not developed estimates, 
nor has the number been adjusted for inflation. The Coast Guard 
notes that based on the Service's $24 billion property 
portfolio, and accounting for the poor conditions of current 
property, the Service requires between $500 million to $1 
billion annually to meet its shoreside investment needs.\25\
---------------------------------------------------------------------------
    \24\ GAO, GAO-25-107581, Coast Guard Shore Infrastructure: More 
Than $7 Billion Reportedly Needed To Address Deteriorating Assets (Feb. 
25, 2025).
    \25\ Questions for the Record from Subcomm. Chairman Daniel Webster 
to Vice Admiral Paul Thomas, Deputy Commandant for Mission Support, 
United States Coast Guard (June 12, 2024).
---------------------------------------------------------------------------
    To address these capability gaps, the reconciliation 
measure appropriates $3.15 billion for the design and 
construction of necessary shoreside facilities, including 
hangers and home ports to support air and surface assets for 
which appropriations are provided in this bill.\26\ This 
includes $400 million to support aircraft hangers, maintenance 
and crew facilities, $2.329 billion for homeports for cutters, 
and $425 million for the recapitalization of barracks and a 
multi-use training center at the Coast Guard's enlisted 
bootcamp.\27\
---------------------------------------------------------------------------
    \26\ Committee Print 119-3, supra note 19.
    \27\ Id.
---------------------------------------------------------------------------
    The reconciliation measure also includes $1.3 billion to 
improve the Coast Guard's depot maintenance facilities, 
including $500 million to be used for construction of a ship 
handling facility and necessary dredging at the Coast Guard 
Yard in Baltimore, Maryland, to provide the facility with the 
capability to handle the Service's Offshore Patrol Cutters and 
National Security Cutters.

                               V. WITNESS

     LAdmiral Kevin E. Lunday, Acting Commandant, 
United States Coast Guard
                               Appendix I

                  Coast Guard FY 2024 Enacted to FY 2025 President's Budget Request Comparison
----------------------------------------------------------------------------------------------------------------
                                                                                  President's FY  President's FY
                     Program                          FY 2024    FY 2025 Enacted    2025 Budget     2026 Budget
                                                   Enacted \28\        \29\        Request \30\       Request
----------------------------------------------------------------------------------------------------------------
Operations and Support (O&S).....................  $ 10,054,771     $ 10,415,271    $ 10,446,283            $ -
Medicare-Eligible Retiree Health Care Fund            $ 277,000        $ 290,093       $ 281,851            $ -
 (MERHCF)........................................
Procurement, Construction and Improvements (PC&I)   $ 1,413,950      $ 1,413,950     $ 1,564,650            $ -
Research and Development (R&D)...................       $ 7,476          $ 7,476         $ 6,763            $ -
Housing Fund ............................       $ 4,000          $ 4,000         $ 4,000            $ -
                                                  --------------------------------------------------------------
  Subtotal, Discretionary........................  $ 11,753,197     $ 12,130,790    $ 12,319,547            $ -
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Retired Pay......................................   $ 1,147,244      $ 1,147,244     $ 1,210,840            $ -
State Boating Safety Grants......................     $ 144,340        $ 140,059       $ 144,480            $ -
Maritime Oil Spill Program.......................     $ 101,000        $ 101,000       $ 101,000            $ -
General Gift Funds...............................       $ 2,864          $ 2,864         $ 2,864            $ -
                                                  --------------------------------------------------------------
  Subtotal, Mandatory............................   $ 1,395,448      $ 1,395,167     $ 1,459,184            $ -
                                                  --------------------------------------------------------------
    Total........................................  $ 13,148,645     $ 13,525,957    $ 13,778,731            $ -
----------------------------------------------------------------------------------------------------------------

     \\ \\ \\
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    \28\ Consolidated Appropriations Act of 2024, Pub. L. No. 118-42.
    \29\ Full-Year Continuing Appropriations and Extensions Act, 2025, 
Pub. L. No. 119-4.
    \30\ Off. of Mgmt and Budget, Budget of the U.S. Government, Fiscal 
Year 2025, available at https://www.govinfo.gov/content/pkg/BUDGET-
2025-BUD/pdf/BUDGET-2025-BUD.pdf.

 
   THE FUTURE OF THE COAST GUARD: REVIEW OF COAST GUARD PROGRAMS AND 
                               STRUCTURE

                              ----------                              


                         THURSDAY, JUNE 5, 2025

                  House of Representatives,
                    Subcommittee on Coast Guard and
                           Maritime Transportation,
            Committee on Transportation and Infrastructure,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 10 a.m., in 
Room 2167, Rayburn House Office Building, Hon. Mike Ezell 
(Chairman of the subcommittee) presiding.
    Mr. Ezell. The Subcommittee on Coast Guard and Maritime 
Transportation will come to order.
    I ask unanimous consent that the chairman be authorized to 
declare a recess at any time during today's hearing.
    Without objection, so ordered.
    I also ask unanimous consent that Members not on the 
subcommittee be permitted to sit with the subcommittee at 
today's hearing and ask questions.
    Without objection, so ordered.
    As a reminder, if Members wish to insert a document into 
the record, please also email it to [email protected].
    I now recognize myself for an opening statement for 5 
minutes.

OPENING STATEMENT OF HON. MIKE EZELL OF MISSISSIPPI, CHAIRMAN, 
    SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION

    Mr. Ezell. As the Coast Guard prepares to undertake 
significant changes, today the subcommittee meets to review the 
Service's programs and structure.
    I would like to welcome our witness, Admiral Kevin Lunday, 
Acting Commandant of the Coast Guard. Sir, it's good to see you 
again. I congratulate you on your nomination to serve as 
Commandant of the Coast Guard, and I look forward to working 
with you closely over the coming years. We certainly enjoyed 
having you in Mississippi's Fourth District last week. It was 
an honor to host you, and I want to thank you for choosing the 
gulf coast as your first official stop.
    The Coast Guard is preparing to undergo a significant 
period of change and modernization. At the Coast Guard Academy 
graduation last month, Secretary Noem announced Force Design 
2028, the Trump administration's vision for the future of the 
Coast Guard.
    As you know, this initiative includes five main points: 
establish a Service Secretary so that the Coast Guard has the 
same representation as other military services, as reflected in 
my bill, H.R. 2546, the Secretary of the Coast Guard Act of 
2025; reorganize the Service to streamline processes, better 
integrate capabilities, and eliminate redundancies; invest in 
the men and women who serve in the Coast Guard; invest in 
technology to improve efficiency and capability; and improve 
and streamline the acquisition process.
    Admiral, I was encouraged by your support for this vision, 
and I look forward to hearing more about this plan, how the 
Coast Guard will implement it, what resources you will need, 
and what changes in authorities the Service will require. As 
the Coast Guard carries out these efforts, it is the 
subcommittee's expectation that you will work with us and keep 
us updated on the initiatives that move forward.
    To meet the Trump administration's vision, the Coast 
Guard's modernization will require substantial resources to 
prepare the Service to meet the needs of future decades. 
Unfortunately, in recent years, the Coast Guard has taken up 
the motto ``do more with less.'' After years of 
underinvestment, the Service is now operating with outdated or 
inadequate cutters, aircraft, IT systems, and shoreline 
infrastructure facilities that limit its effectiveness. A 
recent GAO study confirms what many of us already know and 
suspected: We have reached a breaking point. Coast Guard 
operational hours have fallen by nearly 20 percent since 2017, 
and mission effectiveness is suffering.
    Last month, the House approved a budget reconciliation 
proposal that makes the largest investment in the Coast Guard's 
234-year history. H.R. 1, the One Big Beautiful Bill Act, 
includes $21.2 billion to purchase cutters, aircraft, and 
shoreside assets. Our investment would reduce the rate at which 
the Service is downsizing, but the investment must be matched 
with sustained, long-term funding if the Coast Guard is to 
fully make up recent losses.
    Let me be clear, H.R. 1 allows the Coast Guard to carry out 
its current program of record. It does not fund the growth 
envisioned by the administration, nor does it account for any 
new missions. If the administration expects to fulfill its 
vision for the Coast Guard, it must submit a budget that 
actually supports these goals.
    While I am pleased that the President's proposed fiscal 
year 2026 budget request provides a modest increase in overall 
funding, the request is insufficient to sustain the Coast 
Guard's current operations, let alone carry out the President's 
vision to grow and strengthen the Coast Guard over the long 
term.
    Admiral, as you know, the Coast Guard currently owes this 
committee more than 50 legally mandated reports, some of which 
are years overdue. These reports are not optional. This 
committee relies on these reports to conduct the oversight that 
the American people expect of us.
    Do I have your commitment that going forward, you will work 
to get us these reports in a timely manner?
    Admiral Lunday. You do, Mr. Chairman.
    Mr. Ezell. Thank you.
    Before I end my statement, I want to recognize two 
individuals. First, the Coast Guard's House liaison, Justin 
Nadolny. I know that is probably not the--where are you, 
Justin? There you are. Okay. Hey, Justin. I want to recognize 
you, Justin. His 2-year assignment with the House is coming to 
an end. We will miss you, Justin. Justin has been an enormous 
asset to Members, staff, and the Coast Guard, working with us 
to strengthen the Service, and I really thank you.
    I also want to recognize Commander Nicole Bredariol--
Nicole, where are you?
    Commander Bredariol. Back here, Mr. Chairman.
    Mr. Ezell. Okay. The subcommittee's Coast Guard Fellow. 
During her 2 years serving on the subcommittee, Nicole 
contributed in countless ways, and her background as an 
operator and attorney proved invaluable.
    On behalf of the subcommittee, thank you both for your 
service. I wish you fair winds and following seas as you take 
on your next assignments.
    Admiral Lunday, thank you for being here today, and I look 
forward to our discussion.
    [Mr. Ezell's prepared statement follows:]

                                 
    Prepared Statement of Hon. Mike Ezell of Mississippi, Chairman, 
        Subcommittee on Coast Guard and Maritime Transportation
    As the Coast Guard prepares to undertake significant changes, today 
the Subcommittee meets to review the Service's programs and structure. 
I'd like to welcome our witness, Admiral Kevin Lunday, Acting 
Commandant of the Coast Guard. Sir, it's good to see you again. I 
congratulate you again on your nomination to serve as Commandant of the 
Coast Guard, and I look forward to working with you closely over the 
coming years. We certainly enjoyed having you in Mississippi's Fourth 
District. It was an honor to host you, and I want to thank you for 
choosing the Gulf Coast as your first official stop.
    The Coast Guard is preparing to undergo a significant period of 
change and modernization. At the Coast Guard Academy graduation last 
month, Secretary Noem announced Force Design 2028, the Trump 
Administration's vision for the future of the Coast Guard. As you know, 
this initiative includes five main points: establish a Service 
Secretary so that the Coast Guard has the same representation as other 
military services, as reflected by my bill, H.R. 2546, the Secretary of 
the Coast Guard Act of 2025; reorganize the Service to streamline 
processes, better integrate capabilities, and eliminate redundancies; 
invest in the men and women who serve in the Coast Guard; invest in 
technology to improve efficiency and capability; and improve and 
streamline the acquisition process.
    Admiral, I was encouraged by your support for this vision and look 
forward to hearing more about this plan, how the Coast Guard will 
implement it, what resources you will need, and what changes in 
authorities the Service will require. As the Coast Guard carries out 
these efforts, it is the Subcommittee's expectation that you will work 
with us and keep us updated as the initiatives move forward. To meet 
the Trump Administration's vision, the Coast Guard's modernization will 
require substantial resources to prepare the Service to meet the needs 
of future decades.
    Unfortunately, in recent years, the Coast Guard has taken up the 
motto ``do more with less.'' After years of underinvestment, the 
Service is now operating with outdated or inadequate cutters, aircraft, 
IT systems, and shoreside infrastructure facilities that limit its 
effectiveness. A recent GAO study confirms what many of us already 
suspected: we have reached a breaking point. Coast Guard operational 
hours have fallen by nearly 20 percent since 2017, and mission 
effectiveness is suffering.
    Last month the House approved a budget reconciliation proposal that 
makes the largest investment in the Coast Guard's 234-year history. 
H.R. 1, the One Big Beautiful Bill Act, includes $21.2 billion to 
purchase cutters, aircraft, and shoreside assets. Our investment would 
reduce the rate at which the service is downsizing, but this investment 
must be matched with sustained, long-term funding if the Coast Guard is 
to fully make up recent losses.
    Let me be clear, H.R. 1 allows the Coast Guard to carry out its 
current program of record. It does not fund the growth envisioned by 
the Administration, nor does it account for any new missions. If the 
Administration expects to fulfill its vision for the Coast Guard, it 
must submit a budget that actually supports those goals.
    While I am pleased that the President's proposed Fiscal Year 2026 
Budget Request provides a modest increase in overall funding, the 
request is insufficient to sustain the Coast Guard's current 
operations, let alone carry out the President's vision to grow and 
strengthen the Coast Guard over the long term.
    Admiral, as you know, the Coast Guard currently owes this committee 
more than 50 legally mandated reports, some of which are years overdue. 
These reports are not optional. This committee relies on these reports 
to conduct the oversight that the American people expect of us. Do I 
have your commitment that going forward, you will work to get us these 
reports in a timely manner?
    Before I end my statement, I want to recognize two individuals. 
First, the Coast Guard's House Liaison, Commander Justin Nadolny, whose 
two-year assignment with the House is coming to an end. Justin has been 
an enormous asset to Members, staff, and the Coast Guard, working with 
us to strengthen the Service. I also want to recognize Commander Nicole 
Bredariol, the Subcommittee's Coast Guard Fellow. During her two years 
serving on the Subcommittee, Nicole contributed in countless ways, and 
her background as an operator and attorney proved invaluable. On behalf 
of the Subcommittee, thank you both for your service. I wish you fair 
winds and following seas as you take on your next assignments.
    Admiral Lunday, thank you for being here today, and I look forward 
to our discussion.

    Mr. Ezell. I now recognize Ranking Member Carbajal for an 
opening statement for 5 minutes.

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

    Mr. Carbajal. Thank you, Mr. Chair.
    Let me also, before I start my remarks, wish adieu to 
Commander Justin Nadolny. I wish him the best of luck. He has 
been an extraordinary representative and liaison from the Coast 
Guard. He has represented you well, Admiral Lunday, and before 
that, Commandant Fagan.
    He has always demonstrated the highest standards of 
professionalism. He has a great sense of humor, a little 
serious sometimes, but I just want to wish you the best, 
Justin, and congratulations on your promotion to captain coming 
up, I believe, in a week or so.
    So, thank you for your service.
    And I also want to recognize Admiral Lunday is a very smart 
guy. Today, he brought his lovely wife with him to join us 
today, which makes it hard for us to ask him even harder 
questions, but I am going to do my best to ask him hard 
questions nonetheless.
    Welcome.
    Good morning, and thank you, Mr. Chair, for calling this 
hearing today.
    Welcome, Admiral Lunday, and congratulations on your 
nomination for Commandant.
    One thing that is great about this subcommittee is that we 
are all on the same page on a very important issue: supporting 
the United States Coast Guard. There is no organization like it 
in the world. The servicemembers are top notch, and since 1790, 
our country is safer because of their service.
    I also agree with Secretary Noem when she said that the 
Coast Guard has been neglected and underresourced for far too 
long. Unfortunately, when I look at the budget, this is another 
case of ``watch what I say, not what I do.''
    The overall funding is not as exciting as one would hope. 
It does not account for increasing the size of the Service. It 
does not account for taking on new missions like those 
associated with the Arctic Security Cutter, and most 
importantly, it reverses course on recapitalizing the Coast 
Guard's shoreside infrastructure.
    The Government Accountability Office recently issued a 
report that found the Coast Guard's $7 billion estimate for the 
shoreside infrastructure backlog is actually much higher. Over 
200 projects to date still have no cost estimates, and none 
have been adjusted for inflation.
    The shoreside infrastructure backlog directly impacts 
Coasties and their families. This is real-world stuff. In my 
district, a member of the Coast Guard recently fell through the 
floor of the Coast Guard's housing as they were taking a shower 
because the persistent moisture and mold rotted the floor.
    I have brought this to the Coast Guard's attention, and I 
hope to hear a report about all the things that are being done 
regarding those items that I have pointed out regarding housing 
in my district.
    We must do better, because this is completely unacceptable. 
What is in the administration's first transformational budget 
for the Coast Guard infrastructure, you may ask? A cut of 90 
percent, a scant $21 million to address a more than $7 billion 
backlog.
    Budgets demonstrate values and priorities. What are this 
Secretary's priorities?
    Well, we know that she is planning to follow the 
President's lead in obtaining not one but two Gulfstream V jets 
to accommodate her travel at a cost of upwards of $54 million. 
That is 2\1/2\ times the entire shoreside infrastructure budget 
for the Coast Guard.
    Budgets show priorities. Talk about fraud, waste, and 
abuse!
    Fortunately, I believe that my colleagues on this 
subcommittee share my interest in providing for servicemembers, 
and I will continue to work across the aisle to ensure Congress 
provides prudent, robust investments in the Coast Guard.
    Another place where I am certainly on the same page with my 
colleagues is the importance of the Coast Guard's role in law 
enforcement. The first step is enforcing the law and following 
the law.
    Unfortunately, just last week, the Service sent us a letter 
saying that they have zero intention of following a law that is 
instrumental to growing the Coast Guard. Why? Because it 
conflicts with an Executive order. I know that Admiral Lunday 
is an attorney, so I look forward to hearing a legal 
justification for that decision.
    Does Executive order trump the law or does the law 
supersede an Executive order?
    I have always been and continue to be a champion for fully 
funding the Coast Guard at a level commensurate with their 
needs and their service to the country. To be clear, Congress 
and every President for the past 20 years has failed to do 
this.
    Admiral Fagan boldly stated that the Coast Guard is a $20 
billion Service and deserves to be funded as such. Despite 
their stated interest in reviving and growing the Service, I am 
concerned that this administration's actions show that they do 
not agree with Admiral Fagan's assessment.
    While the prospect of funding through reconciliation is 
welcome news, it still falls short and does not provide the 
long-term and predictable funding the Coast Guard needs. We 
must do better.
    Congress and Coast Guard leadership owe it to the Coasties 
who serve this country to deliver on these promises.
    With that, I yield back, Mr. Chairman.
    [Mr. Carbajal's prepared statement follows:]

                                 
  Prepared Statement of Hon. Salud O. Carbajal of California, Ranking 
    Member, Subcommittee on Coast Guard and Maritime Transportation
    Good morning, and thank you, Chair Ezell, for calling today's 
hearing.
    Welcome Admiral Lunday, and congratulations on your nomination.
    One thing that's great about this Subcommittee is that we're all on 
the same page on a very important issue: supporting the United States 
Coast Guard. There is no organization like it in the world. The 
servicemembers are top notch, and, since 1790, our country is safer 
because of their service.
    I also agree with Secretary Noem when she said that the Coast Guard 
has been neglected and under resourced for far too long. Unfortunately, 
when I look at the budget, this is another case of ``watch what I say, 
not what I do.''
    The overall funding is not as exciting as one would hope. It does 
not account for increasing the size of the service. It does not account 
for taking on new missions like those associated with the Arctic 
Security Cutter. And, most importantly, it reverses course on 
recapitalizing the Coast Guard's shoreside infrastructure.
    The Government Accountability Office recently issued a report that 
found the Coast Guard's $7 billion estimate for the shoreside 
infrastructure backlog is actually much higher.
    Over 200 projects to date still have no cost-estimates, and none 
have been adjusted for inflation. The shoreside infrastructure backlog 
directly impacts Coasties and their families.
    This is real world stuff. In my district, a member of the Coast 
Guard recently fell through the floor of Coast Guard housing as they 
were taking a shower because the persistent moisture and mold rotted 
the floor.
    We must do better--because this is completely unacceptable.
    What is in the Administration's first ``transformational'' budget 
for the Coast Guard infrastructure you may ask? A cut of 90 percent. A 
scant $21 million to address a more than $7 billion backlog.
    Budgets demonstrate values and priorities. What are this 
Secretary's priorities? Well, we know that she is planning to follow 
the President's lead in obtaining not one but two new Gulfstream V jets 
to accommodate her travel at a cost of upwards of $54 million.
    That's two-and-a-half times the entire shoreside infrastructure 
budget for the Coast Guard. Budgets show priorities.
    Talk about fraud, waste and abuse!
    Fortunately, I believe that my colleagues on this Subcommittee 
share my interest in providing for servicemembers, and I will continue 
to work across the aisle to ensure Congress provides prudent and robust 
investments in the Coast Guard.
    Another place where I am certain my colleagues, and I agree with is 
the importance of the Coast Guard's role in law enforcement. The first 
step to enforcing the law is following the law.
    Unfortunately, just last week the Service sent us a letter saying 
that they have zero intention of following a law that is instrumental 
to growing the Coast Guard. Why? Because it conflicts with an Executive 
Order. I know that Admiral Lunday is an attorney so I look forward to 
hearing a legal justification for that decision.
    I have always been, and continue to be, a champion for fully 
funding the Coast Guard at a level commensurate with their needs and 
their service to the country.
    To be clear, Congress and every President for the past 20 years has 
failed to do this. Admiral Fagan boldly stated that the Coast Guard is 
a $20 billion service and deserves to be funded as such.
    Despite their stated interest in reviving and growing the service, 
I am concerned that this Administration's actions show that they do not 
agree with Admiral Fagan's assessment.
    While the prospect of funding through reconciliation is welcome 
news, it still falls short and does not provide the long term and 
predictable funding the Coast Guard needs. We must do better.
    Congress and Coast Guard leadership owe it to the Coasties who 
serve this country to deliver on these promises.
    With that, I yield back.

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

  OPENING STATEMENT OF HON. SAM GRAVES OF MISSOURI, CHAIRMAN, 
         COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

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

                                 
Prepared Statement of Hon. Sam Graves of Missouri, Chairman, Committee 
                  on Transportation and Infrastructure
    Thank you, Chairman Ezell, for holding today's hearing, and welcome 
to our witness, Admiral Lunday. Congratulations on your nomination to 
be the next Commandant of the Coast Guard. The Committee on 
Transportation and Infrastructure is very glad to host you for your 
first hearing after being nominated. I hope you are quickly confirmed 
so that we can get to work. I'm sorry to note that at the same time, 
we're losing some good staff from our teams: Commander Justin Nadolny, 
Commander Nicole Bredariol, and Corey Sites.
    I'd be remiss if I didn't tell you how proud I am of this 
committee's jurisdiction over the U.S. Coast Guard--it means a lot to 
me and the Members of the Committee. I look forward to working with you 
to establish a Secretary of the Coast Guard, implement the Force Design 
2028 vision, and complete the budget reconciliation process, which will 
provide historic funding levels for the Coast Guard.
    During my time as Chairman, I have had the privilege of meeting 
many of the men and women in the Coast Guard who serve our nation, 
secure our seas and our ports, and conduct life-saving missions. The 
importance of the Coast Guard to our country's security cannot be 
overstated, and I look forward to working with you, Admiral. We must 
ensure our servicemembers have every tool at their disposal and 
everything they need to successfully complete their missions.

    Mr. Ezell. Thank you, Mr. Chairman.
    Briefly, I would like to take a moment to explain the 
lighting system to our witness. There are three lights in front 
of you. Green means go. Yellow means slow; you are running out 
of time. Red means start winding her down.
    I ask unanimous consent that the witness' full statement be 
included in the record.
    Without objection, so ordered.
    I ask unanimous consent that the record of today's hearing 
remain open until such time as our witness has provided answers 
to any questions that may be submitted to him in writing.
    Without objection, so ordered.
    I also ask unanimous consent that the record remain open 
for 15 days for any additional comments and information 
submitted by Members or the witness to be included in the 
record of today's hearing.
    Without objection, so ordered.
    As your written testimony has been made part of the record, 
the committee asks that you limit your oral remarks to 5 
minutes.
    With that, Admiral Lunday, you are recognized for 5 minutes 
for your testimony.

             TESTIMONY OF ADMIRAL KEVIN E. LUNDAY,
              ACTING COMMANDANT, U.S. COAST GUARD

    Admiral Lunday. Thank you, Mr. Chairman.
    Chairman Graves, Chairman Ezell, Ranking Member Carbajal, 
and distinguished members of this subcommittee, thank you for 
the opportunity to testify before you today.
    Thank you for your strong and enduring support for our 
Coast Guard, for our Coast Guard men and women, and for their 
families.
    Chairman, it was great to join you and your staff on the 
gulf coast last week. Thank you for taking the time to visit 
with our Coast Guard units. Our men and women there, they are 
so proud of their mission, and then also for visiting with the 
shipyards in Mississippi and Alabama that are building new 
Coast Guard cutters that we badly need to conduct our 
operations in support of the American people.
    For nearly 235 years, the American people have depended on 
the Coast Guard as a vital instrument of national power to 
ensure U.S. economic prosperity and national security. Today, 
the Coast Guard is at one of our most consequential periods in 
our history, a time of profound challenge and extraordinary 
opportunity.
    As our Nation faces increasingly dangerous and complex 
threats from nation-states, terrorists, and criminals, the 
American people need a strong and capable Coast Guard now more 
than ever. Under the leadership of President Trump and 
Secretary Noem, the Coast Guard is making America more secure. 
The Service's highest priority is achieving complete 
operational control of the U.S. border, including our ports and 
waterways.
    On January 21st, I directed our operational commanders to 
immediately increase Coast Guard presence along the U.S. border 
and maritime approaches, starting with the southern border 
where the President had declared a national emergency the day 
before. We surged forces, tripling the number of cutters, 
boats, aircraft, and deployable teams to control, secure, and 
defend that southern border.
    The Coast Guard also increased efforts to secure and defend 
our ports and waterways both in the physical domain and in 
cyberspace that is so essential to economic prosperity and 
strategic mobility.
    And I have set as a top operational priority combating 
fentanyl in maritime cargo shipments approaching the U.S.
    The Coast Guard beyond the southern border continues to 
control, secure, and defend our northern border and the U.S. 
border and approaches around Hawaii and Alaska, our three U.S. 
Territories in the Pacific, and two U.S. Territories in the 
Caribbean.
    The Coast Guard is delivering results for the American 
people. We are deterring illegal maritime migration and 
stopping the illicit flow of drugs into the United States. In 
the last 5 months alone, we have interdicted over 1,000 aliens 
trying to reach the U.S. by sea, and we have deterred thousands 
more.
    We have already surpassed our entire fiscal year 2024 
cocaine removal numbers, and we continue to combat foreign 
terrorist organizations and cartels by interdicting the bulk 
smuggling of cocaine and other drugs at sea.
    However, despite the success in our missions and the great 
work of our people, the Coast Guard is in a severe readiness 
crisis that is decades in the making. Today, our Coast Guard is 
less ready than at any other time in the past 80 years since 
the end of World War II.
    The downward readiness spiral we are on is not sustainable, 
and we must take action now to change that direction. Together 
we must restore the Coast Guard readiness and transform the 
Service into a more agile, capable, and responsive fighting 
force.
    Following years of underinvestment, we must eliminate 
maintenance backlogs for our cutters, boats, aircraft, shore 
infrastructure, and C5I systems to return our assets to full 
operational readiness. At the same time, we need to invest in 
new assets, in modernizing our existing platforms, accelerating 
the adoption of new technology, and providing our people the 
support and the training that they need to be successful.
    As we work through the fiscal year 2026 appropriations 
process to increase the Coast Guard's top budget line, we look 
forward to the opportunity of unprecedented investment in the 
budget reconciliation. I appreciate the extraordinary support 
from this subcommittee and across Congress and the 
unprecedented leadership of the administration.
    With President Trump's direction, we build our Nation's 
military and secure the border, and under Secretary Noem's 
leadership, the Coast Guard will implement Force Design 2028, a 
bold blueprint to renew our Service. Through Force Design 2028, 
we will transform how the Coast Guard functions and operates to 
defeat our adversaries and protect the homeland.
    As we navigate through this time of transformation, I have 
certain hope for the future of our Service, because no matter 
the challenges ahead, if there is one thing our distinguished 
Service history in both peace and war tells us, with a ready 
Coast Guard crew and the strong support of the American people, 
there is nothing we cannot accomplish.
    Thank you. I look forward to your questions.
    [Admiral Lunday's prepared statement follows:]

                                 
   Prepared Statement of Admiral Kevin E. Lunday, Acting Commandant,
                            U.S. Coast Guard
                              Introduction
    Chairman Ezell, 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. 
It is my privilege to appear before you today to discuss your oversight 
of the Service and Coast Guard accomplishments and priorities.
    The Coast Guard is part of the Department of Homeland Security 
(DHS) team protecting America, is one of the six military services, and 
is part of the joint force defending it. We maintain a persistent 
presence in maritime domains--from coastal ports and inland waters to 
the high seas--to control, secure, and defend the U.S. border and 
maritime approaches from maritime threats; facilitate the flow of safe 
and secure commerce; respond to maritime disasters; and save lives. As 
a maritime Nation, America's economic prosperity and national security 
are inextricably linked to the sea, our ports, and inland waterways. 
The Coast Guard is a vital instrument of national power to ensure our 
Nation's maritime dominance.
    In Fiscal Year (FY) 2024, our men and women conducted maritime 
interdiction operations, intercepting over 5,200 aliens and seizing 
more than 275,000 pounds of illicit drugs, preventing these narcotics, 
valued at approximately $3.3 billion, from reaching U.S. shores. In 
U.S. ports, an integral part of our border and vital to the American 
economy, the Coast Guard ensured safe and secure movement of over 1.6 
billion tons of goods critical to U.S. national security and economic 
prosperity. Our crews maintained nearly 45,000 navigational aids across 
the Marine Transportation System (MTS), conducted more than 9,600 
patrols to protect maritime critical infrastructure, and safeguarded 
4.4 million square miles of Exclusive Economic Zone, boarding 180 
foreign vessels to suppress illegal fishing activities.
    The Coast Guard also deployed the Nation's only two polar 
icebreakers--cutters Polar Star and Healy--to assure U.S. access to the 
Polar regions, protect U.S. sovereignty, and advance geopolitical, 
security, and economic interests. Coast Guard cutters and deployable 
specialized forces teams interdicted smuggling vessels in the Arabian 
Sea and Gulf of Oman carrying 170 tons of pre-cursor explosive material 
and, in lock step with our Department of Defense (DoD) partners, 
deterred malign activity against commercial shipping through the Strait 
of Hormuz and across the region. Your Coast Guard saved over 4,800 
lives, assisted nearly 22,000 people in distress, and responded to six 
catastrophic weather events.
    In January of this year, under the leadership of Secretary Noem, I 
directed our operational commanders to immediately increase Coast Guard 
presence along U.S. border and maritime approaches, starting with the 
southern border where President Trump declared a national emergency. We 
surged forces, tripling forward-deployed air and surface assets in that 
area. Since then, the Service has interdicted or deterred over 1,000 
aliens from reaching the U.S. by sea in coastal and offshore approaches 
between U.S. and Mexico in the Pacific Ocean and Gulf of America, and 
along the southeast border and approaches in the Caribbean. 
Concurrently, the Service exceeded its entire FY 2024 cocaine maritime 
interdiction numbers by mid-February of this year. By surging 
operational forces to the region and in close coordination with DoD, 
Customs and Border Protection (CBP), and other interagency partners, 
our goal is total operational control of the U.S. southern border. In 
addition to supporting the national emergency at the U.S. southern 
border, the Coast Guard moved to control, secure, and defend our ports 
and waterways in both physical and cyber domains.
    Our MTS powers the national economy, ensures strategic mobility, 
and is part of our U.S. border. The Coast Guard also continues 
operations to control, secure, and defend the U.S. northern border, 
including the Great Lakes, and U.S. border and maritime approaches 
surrounding Alaska, Hawaii, and the U.S. territories in the Pacific and 
Caribbean. Our highest priority remains full operational control of the 
U.S. borders and maritime approaches, including U.S. ports and 
waterways in the physical domain and cyberspace, and we are delivering 
results for the American people. Critically, the Coast Guard's work 
also supports the Trump Administration's Drug Policy Priorities, 
released on April 1 of this year, including Priority 2: Secure the 
Global Supply Chain Against Drug Trafficking, which focuses on 
decreasing the global movement of illicit drugs through all shipping 
modalities; and Priority 3: Stop the Flow of Drugs Across Our Borders 
and into Our Communities, which aims to decrease the domestic 
availability of illicit drugs and save American lives.
    The U.S. Coast Guard is facing a severe readiness crisis due to 
decades of underinvestment. Tasked with defending the Nation's maritime 
borders, countering threats like illegal migration and drug 
trafficking, safeguarding our ports and waterways, responding to 
maritime disasters, and saving lives, the Service is now stretched 
thin, with significant workforce shortages and aging, underfunded 
assets that often cannot meet mission requirements. The Coast Guard's 
current organizational structure and reactive posture are no longer 
adequate to meet current and emerging challenges. To restore its 
strength and fulfill its mission, the Coast Guard must undergo a 
fundamental transformation--not just evolve, but revolutionize how it 
operates. With President Trump's directive to rebuild the military and 
secure U.S. borders, the Coast Guard plans to implement Force Design 
2028, a bold blueprint to grow military force, drive urgent innovation, 
modernize capabilities, and ensure we remain a proactive, resilient, 
and dominant maritime force.
    Additionally, the Coast Guard will leverage President Trump's 
Executive Order on Restoring America's Maritime Dominance to encourage 
growth of the domestic maritime industry through initiatives that 
facilitate expansion of U.S. operators' fleets, foster growth of 
emerging maritime technologies, and ease entry of American workers into 
the maritime industry. To this end, the Coast Guard took steps to 
reduce barriers to entry for vessels into the U.S.-flag fleet, 
expanding application of Navigation and Vessel Inspection Circular 
(NVIC) 01-13 to a broader group of vessels seeking to flag into the 
United States, enabling the Service to play a leading role in 
rebuilding the domestic maritime industry.
    As we work through the FY 2026 appropriations process and look 
toward the opportunity of substantial organizational investments via 
the FY 2025 budget reconciliation process, we recognize unprecedented 
government support, to include this subcommittee, addressing this 
readiness crisis and investing in the Coast Guard. These parallel and 
complementary investments can fundamentally renew the Service, enabling 
the Coast Guard to modernize its assets by completing essential 
acquisition programs.
    We must eliminate backlogs in maintenance for our cutters, boats, 
aircraft, and shore infrastructure, returning our assets to peak 
operational readiness to deliver results and guarantee crew safety. We 
must invest in new assets across our surface, aviation, shore, and 
cyber programs and modernize existing platforms with advanced enabling 
technologies. We must also redouble efforts to recruit and retain the 
highly skilled workforce necessary for our complex missions.
Cutter Fleet
    The Service's top surface acquisition priority remains the Polar 
Security Cutter (PSC) and expanding the icebreaking fleet to meet the 
President's direction. Continuing to invest in heavy polar icebreakers 
is vital to counter foreign malign influence and protect America's 
sovereign interests in the polar regions. We recently received 
permission to enter full production of the first PSC as functional 
design maturity surpassed 95%.
    Since the founding of the Revenue Cutter Service in 1790, our 
missions focus on executing border security and defense at sea. To meet 
future mission requirements, the Offshore Patrol Cutter (OPC) remains 
one of the Coast Guard's top acquisition priorities, and is absolutely 
vital to replace and enhance capabilities provided by our legacy fleet 
of 210-foot and 270-foot Medium Endurance Cutters (MEC), which first 
entered service in the 1960s and 1980s, respectively.
    While PSC and OPC are priorities, we cannot ignore our needs across 
the full surface fleet. Some of our inland tenders remain in service 
since the 1940s, maintaining both fixed and floating aids to navigation 
for the MTS--the 25,000 miles of rivers and navigable channels that 
serve as the lifeblood of our economy. Waterways Commerce Cutters (WCC) 
will replace our legacy inland tender fleet. WCCs feature modern 
designs for propulsion and crew habitability to enable men and women to 
serve America's heartland, where they help ensure food, energy, 
consumer goods, and raw materials continue to flow safely and securely 
through our navigable waterways despite constantly changing conditions 
and water levels.
Aviation Fleet
    Coast Guard aviation is more essential than ever to guarantee 
territorial integrity by controlling national borders and maritime 
approaches. Recent termination of the C-27J missionization program and 
stalled growth in our HC-130J program place our readiness to conduct 
various missions in jeopardy, including long range surveillance, 
disaster response, and border security operations. Our rotary wing 
fleet must continue to accelerate transition of air stations from 
short-range MH-65Es to medium-range MH-60s to ensure sustainability and 
increase our capability to serve national priorities. Additionally, the 
Service stands ready to lead counter unmanned aircraft systems (UAS) 
operations in the maritime domain, providing protection to select 
critical infrastructure and Coast Guard assets.
Shore Infrastructure
    Coast Guard facilities must be resilient to meet mission demands 
and serve as sound investments for the future. Based on the nature of 
our missions, most Coast Guard facilities are in areas prone to 
hurricanes, flooding, earthquakes, and other natural disasters. The 
Nation's reliance on the Coast Guard as a first responder underscores 
the importance that our facilities must be resilient to disasters and 
ready for operations. Budgetary constraints often force us to defer or 
scale needed shore infrastructure recapitalization, placing that strain 
on our front-line personnel. We should update and where possible 
replace legacy military housing and support facilities, modernize shore 
facilities to accept new assets, and develop robust training 
infrastructure to prepare our workforce for their dangerous missions. 
Despite the best efforts of our engineers, the Service carries 
substantial backlogs for both infrastructure recapitalization and shore 
asset maintenance. While we made headway recapitalizing our cutters and 
aircraft, that progress requires making tough annual trade-offs that 
continue to impact our shore infrastructure needs, leading to 
increasing safety and habitability concerns.
Cybersecurity
    The Coast Guard has a unique role to protect and defend the U.S. 
MTS in cyberspace, as well as the physical domain, as a co-Sector Risk 
Management Agency, Intelligence Community member, and member of the 
Armed Forces. Maritime cybersecurity is a critical element of our 
national and economic security. Not only does maritime cybersecurity 
facilitate the flow of trillions of dollars of commerce, it also 
ensures strategic mobility to supply our warfighters abroad. Our 
cybersecurity forces consist of Cyber Protection Teams and a Cyber 
Mission Team that defend our Nation. We must grow our investment in 
people and technology needed to ensure the Coast Guard's ability to 
secure and defend cyberspace.
                               Conclusion
    Our commitments to control, secure, and defend our Nation's borders 
and maritime approaches grow every day and demand for the Service has 
never been higher. Investments we make now will not only address 
immediate readiness concerns but also rebuild a stronger, more capable, 
and resilient Coast Guard for decades to come. Since 1790, the American 
people have depended on our missions and unique value the Coast Guard 
provides to assure our national security and economic prosperity. If 
there is one thing our distinguished Service history in both peace and 
in war shows, it is this: with a ready Coast Guard crew, there is 
nothing we cannot accomplish. I have confidence and hope for the future 
of our Service. We must act now to ensure the Coast Guard receives the 
resources necessary to fulfill our vital missions and protect the 
American people. Thank you for your enduring support. Semper Paratus.
    Mr. Ezell. The gentleman yields.
    Thank you, Admiral, for your testimony.
    We will now turn to questions, and I will recognize myself 
for 5 minutes for questions.
    [Slide shown.]
    Admiral, as the chart from the Government Accountability 
Office, GAO, shows, the increasing age of the Coast Guard 
assets has reduced the Coast Guard's ability to carry out its 
missions, driving up cost as maintenance becomes more expensive 
or driving down operational hours as assets are laid up or 
undergoing repair. This is a bad combination.
    How will the investments contained in the reconciliation 
bill reverse this trend and position the Coast Guard for 
success?
    Admiral Lunday. Well, Mr. Chairman, as I look at this 
graph, the first thing that jumps out at me is that it is great 
reflection of the seriousness of the downward readiness spiral 
and the readiness crisis the Coast Guard faces itself in.
    I mean, to me this graph tells me that we are spending more 
money to keep older assets operating, but their availability 
keeps dropping. And that situation continues to get worse.
    But if you take this graph and we go down to the waterfront 
and we see a Coast Guard cutter returning from a patrol, that 
crew will take much of that cutter apart, pulling apart 
critical supplies and parts in order to make the next cutter 
ready to get underway. We're eating our own readiness, and we 
can't sustain that.
    So, our crews are living this, this and reality, every day. 
So, sir, the opportunity that the investment of reconciliation 
provides will go a long way to stopping the downward spiral, 
but it will just be the beginning. It will need to be matched 
with the sustained higher growth in annual top line, budget top 
line in the annual appropriation, both PC&I and our operation 
and sustainment accounts.
    Now, the fiscal year 2026 President's budget begins a 
strong start in that right direction. It gives us an increase 
of over $1 billion in both PC&I and O&S total over the fiscal 
year 2025 expenditure, and so that is $344 million in PC&I and 
over--almost $650 million--$644 million in O&S.
    Mr. Ezell. The fiscal year 2026 budget continues the trend 
of underinvestment and the consequences that go with it. Going 
forward, what is your plan to request the resources the Service 
requires to sustain its operations and fulfill President 
Trump's growth vision?
    Admiral Lunday. Mr. Chairman, we look forward to working 
with the committee on the fiscal year 2026 appropriation, and 
then going forward, to increase top-line growth in our annual 
appropriation for both PC&I and O&S.
    That is going to be essential to rebuild and renew the 
Coast Guard, which the Secretary of Homeland Security was clear 
in her remarks at the Coast Guard Academy graduation on the 
21st of May when she talked about her discussion with the 
President and the need to provide the Coast Guard what we need 
in the future to be ready to serve the American people.
    Mr. Ezell. Force Design 2028 calls for at least a 25-
percent reduction in the Coast Guard's flag corps to streamline 
the decision process. Late last month, we were notified that 
the promotion board recommendations for the rank of rear 
admiral lower half were rejected and a number of other 
positions appear to have been eliminated with the release of 
this year's flag assignments, including the flag officer in 
charge of Government and public affairs.
    Aside from these notifications, we have not received a 
detailed reorganization plan. Does the Service have a detailed 
reorganization plan for the flag corps?
    Admiral Lunday. Mr. Chairman, we are working on a detailed 
plan. That is part of the Force Design implementation plan that 
I owe back to the Secretary in the coming weeks.
    And once the Secretary has received and approved that plan 
and we begin to implement it, then we look forward to briefing 
the committee on that plan.
    Mr. Ezell. Very good. All right. I am going to yield at 
this time. We will probably have a second round of questions 
here coming up.
    And I now recognize Mr. Carbajal for his 5 minutes.
    Mr. Carbajal. Thank you, Mr. Chairman.
    Admiral Lunday, in my opening statement, I mentioned the 
state of Coast Guard infrastructure. Not only did the Coasties 
in my district fall through their shower floor, they have been 
forced to live with mold and continuous water issues.
    How can we justify spending 2\1/2\ times more on executive 
jets than on housing for rank-and-file servicemembers?
    Admiral Lunday. Ranking Member Carbajal, the area of 
housing in Santa Barbarba that you are very familiar with, and 
thank you for your personal visit last year to take a look at 
the situation in those eight homes in Santa Barbara.
    So, we did have mold issues, and although that is not 
uncommon broadly in the area, I think the significant rainfall 
more recently in the last several years has made that problem 
worse.
    We have gotten after the problem of mold remediation. We 
replaced the areas in the shower sets in the units that had 
mold, and for units that had people living in them with mold, 
we were able to move them so we could do those repairs and 
remediate them.
    None of our members should live in housing units that have 
mold or other conditions that present hazards for them, and so 
we are getting after those problems to address them.
    Ranking Member, on your question about the aircraft, sir, 
that was a decision I made to include a long-range command and 
control aircraft in the fiscal year 2025 spend plan.
    The Coast Guard operates C-37 aircraft as part of our 
operational aircraft fleet. They provide long-range military 
command and control that is reliable transport and secure 
communications for the Secretary, the Acting Commandant, the 
Deputy Secretary, the Acting Vice Commandant, and our two area 
commanders to enable us to conduct command and control.
    Those assets are critically important. The two that we own, 
the one is older. It is 23 years old now, and it is 
increasingly obsolete in its avionics, and the communications 
need upgrade, and they are both facing significant maintenance 
periods this year that will take them offline and out of 
service.
    Mr. Carbajal. Thank you.
    We understand that Master Chief Petty Officer of the Coast 
Guard Heath Jones was invited to join us today until his recent 
forced retirement. Master Chief Jones is one of the most 
admirable people I have ever met serving in the Coast Guard.
    What message does this forced retirement send to enlisted 
servicemembers?
    And are you aware of any cause for his termination?
    Admiral Lunday. Ranking Member Carbajal, Master Chief Petty 
Officer of the Coast Guard Jones is currently serving and 
remains the master chief petty officer of the Coast Guard right 
now. He is at home on leave right now. I won't get into 
personally why he is at home on leave, but he has got a second 
granddaughter that he and his wife are celebrating the arrival 
of.
    So that wasn't a reason that I didn't have him here at the 
table. I would want him by my side, but he is at home on leave 
right now.
    Mr. Carbajal. So you are saying he is not retired?
    Admiral Lunday. He plans to retire this year. That is 
correct, and I will go through the process subject to 
confirmation by the Senate as the next Commandant. I will go 
through the process of selecting the next master chief petty 
officer of the Coast Guard.
    Mr. Carbajal. So it is not a forced retirement?
    Admiral Lunday. Well, I have decided to select a new master 
chief petty officer of the Coast Guard, if confirmed as the 
next Commandant.
    Master Chief Petty Officer of the Coast Guard Jones has 
served with honor and distinction for his entire career. He has 
a distinguished career, and we are going to celebrate that 
career at the change of watch toward the end of July with the 
next master chief petty officer of the Coast Guard and a great 
celebration for Master Chief Petty Officer of the Coast Guard 
Jones' career.
    Mr. Carbajal. So if you decide to select somebody new, you 
basically say, ``Your services are no longer needed.''
    Admiral Lunday. Ranking Member Carbajal, changing out 
military leadership, including our senior enlisted leadership, 
is part of the normal cycle of what we do in the Service. This 
is not unusual, sir.
    Mr. Carbajal. Thank you.
    Recently, in response to a statutorily required strategy to 
address recruitment and accession strategy, the Coast Guard 
plainly told Congress that you are choosing to follow an 
Executive order rather than follow the law.
    Do you plan to continue violating the law?
    And how do you determine which laws to follow and which 
laws not to follow?
    Admiral Lunday. Ranking Member Carbajal, as a part of the 
executive branch, the Coast Guard is following the Executive 
order and the guidance from the Department of Homeland Security 
in this regard, with regard to that report and other reports 
that call for reporting on DEI matters.
    Mr. Carbajal. Section 11249 of the Don Young Coast Guard 
Authorization Act of 2022 is a statute that provides guidance 
on this issue, and there was an Executive order that was 
issued, and I am just trying to understand why you would not 
follow the law rather than this Executive order that was put 
forth that is not the law.
    Admiral Lunday. Sir, I am working to follow the law and the 
guidance of the executive branch, and I understand clearly the 
requirement in the authorization act that requires the report 
as well.
    Mr. Carbajal. So do you plan to fulfill the statute?
    Admiral Lunday. Sir, we are doing our best to follow the 
guidance as part of the executive branch under the President's 
Executive order and the guidance from the Department.
    I understand the frustration of the committee because of 
the existence of the requirement to deliver that report. At 
this time, the report that we have submitted is the report that 
stands for our submission.
    Mr. Carbajal. Thank you very much, Mr. Chairman.
    Mr. Ezell. The gentleman yields.
    Now I recognize Mr. Webster for his 5 minutes of questions.
    Mr. Webster of Florida. Thank you, Mr. Chairman.
    And thank you, Admiral, for coming. We appreciate it. At 
least from my reports, I am getting pretty firm information 
that you are going to be confirmed. Nothing is set in this 
place, but congratulations.
    There is one thing I wanted to carry on about, which was 
the ``Atlantic Coast Port Access Route Study,'' which--it's not 
just now. It's not just a few years ago. We have just been 
waiting and waiting on a report that is a study which has just 
not come.
    It's kind of perplexing. Is there any hope of having that 
happen?
    Admiral Lunday. Congressman, we are continuing to work on 
the port access route study, and we look forward to briefing 
that once that is completed.
    Mr. Webster of Florida. So, is there a timeline for 
completing this?
    Admiral Lunday. Congressman, let me get back to you with a 
specific update on the timeline for the delivery of that 
report.
    Mr. Webster of Florida. It's kind of like a timeline for 
the timeline, but anyway, thank you for those answers. I 
appreciate it.
    There is also the idea of the Force Design 2028, and that 
has some great things in it and a great design, modernization, 
and so forth, all that.
    Do you see that happening as far as money-wise, training 
all of these new recruits that are going to happen and 17,000 
new ones?
    What do you see about the funding versus the idea that is 
on a piece of paper?
    Admiral Lunday. Congressman, the Force Design 2028 offers a 
bold blueprint forward that the Secretary has given us to 
deliver transformational, even revolutionary change that we 
will have not seen at any other time at this scale since the 
formation of the modern Coast Guard organization in 1915.
    As you said, sir, and as the chairman mentioned, it is 
across five lines of effort starting with the creation of a 
Secretary of the Coast Guard, but also the other campaigns to 
improve organizational streamlining of decisionmaking; 
improvement of pushing that decisionmaking to the field; 
improving the recruiting, training, and development of our 
people; advancing the use and application of technology to make 
the Coast Guard a leader in the Federal Government; and then 
streamlining our acquisition and contracting.
    That must be matched with the investment necessary to make 
that a reality, and that investment will come not only in the 
budget reconciliation, but also sustained higher top-line 
annual growth in our annual appropriation, both PC&I and O&S.
    That will be the necessary engine to drive the change that 
is laid out in Force Design 2028.
    Mr. Webster of Florida. Do you foresee sparks flying in 
Alabama and Mississippi on the new Polar Security Cutter 
anytime soon?
    Admiral Lunday. Well, Mr. Webster, Congressman, we 
definitely are. The chairman and I were down there last week, 
and we visited Bollinger Mississippi, where they are 
constructing the first of three heavy icebreakers, the first 
that will be built in half a century for our United States, 
Polar Security Cutter number 1.
    The full production of Polar Security Cutter number 1 was 
authorized by the Department of Homeland Security back in the 
end of April, but we had already begun advanced work to 
fabricate some of the early modules the shipbuilder had that 
will teach them how to move faster in the production later in 
the series as we move forward with the production of the full 
program of record.
    So, they are cutting steel. They are building that first 
Polar Security Cutter, sir.
    Mr. Webster of Florida. Do you think the speed of number 2 
is going to be a lot faster than number 1, as far as 
completion?
    Admiral Lunday. Congressman, the first ship in class is 
always the most difficult because that is where the most 
learning occurs. What we see with the shipbuilder there is that 
they are learning from the early work they are doing on number 
1, and yes, sir, I expect that the delivery of number 2, which 
is planned to be 2 years after the delivery of number 1, that 
it will accelerate, and they will be able to move faster in the 
production.
    Mr. Webster of Florida. Awesome. I yield back.
    Mr. Ezell. The gentleman yields.
    I now recognize Mr. Pappas for 5 minutes.
    Mr. Pappas. Thank you very much, Chairman Ezell and Ranking 
Member Carbajal, for holding this session.
    I want to thank you for joining us, Admiral Lunday, and 
congratulate you on your recent appointment to serve as the 
Commandant of the Coast Guard, and welcome to the subcommittee.
    Sir, I appreciate you taking the time discussing the vital 
work of our Nation's Coast Guard, both now and in the future. 
We know that the Coast Guard deserves full parity and resources 
to be able to recapitalize and modernize the Service, to honor 
the service and sacrifice of the men and women of the Coast 
Guard and the great work they do every day.
    We know that your leadership is critical to our efforts to 
increase preparedness and to face down security threats and to 
make sure that we are prepared for the growing demands that the 
Coast Guard is going to be asked to respond to.
    I want to start with one local issue that is really 
important to my district but, I think, speaks to the readiness 
challenges that you spoke of in your testimony.
    In January of 2024, back-to-back winter storms with tides 
as high as 18 feet severely damaged U.S. Coast Guard Station 
Portsmouth Harbor, which is located in the town of New Castle, 
New Hampshire. Significant damage was sustained to the 
station's seawall and boathouse.
    As a result, the station is no longer able to dock two 
emergency response boats and has been forced to make 
alternative temporary arrangements.
    While the Coast Guard in New Hampshire has been able to 
overcome these challenges and perform their missions, the 
logistical challenges and the daily risk mitigation experience 
in the aftermath of these storms regularly threatens the 
readiness of that station.
    So, my office has spoken with the commanding officer, 
Eugene Kaminski, and it is clear that the full funding for 
Coast Guard's PC&I budget is necessary to support the boathouse 
and seawall rebuild.
    Additionally, it is going to take the commitment of the 
Coast Guard leadership to ensure that these repairs do not 
experience any further or unnecessary delays.
    So I am wondering, Admiral, if you have had the opportunity 
to speak with leadership at Portsmouth Harbor Station about 
these repairs, and if not, if I can have your commitment that 
you will discuss the needed repairs with the Portsmouth Harbor 
Station commanding officer and other leadership as soon as 
possible.
    Admiral Lunday. Congressman, thank you for your support and 
the support of the full committee in Congress for the 
supplemental appropriation that will deliver $24 million to 
effect those needed repairs following those devastating winter 
storms.
    And so I have not spoken with the commanding officer since 
that appropriation, but I will have a direct conversation with 
the commanding officer and ensure that we are successful in 
executing the money necessary to do those critical repairs.
    Mr. Pappas. We are really grateful for that. Thanks very 
much for being willing to make that connection.
    And besides a robust PC&I budget, does the Coast Guard 
require any additional tools from Congress to ensure timely 
repairs to this particular station or to any of the others that 
are suffering from damage from storms?
    Admiral Lunday. Congressman, I think overall we needed a 
stronger operations and sustainment budget, and that is to keep 
up with the ongoing regular maintenance for much of our shore 
facilities.
    While we see significant storms that cause damage that need 
recapitalization and there are other longer term 
recapitalization needs that are covered by the PC&I budget, the 
regular daily maintenance that is required to keep these 
facilities working, particularly on the coast where they 
experience extreme weather, requires a stronger O&S budget as 
well.
    Mr. Pappas. Thank you.
    Admiral, a longstanding issue facing the Coast Guard has 
been the recruitment and retention of women in the Coast Guard. 
In fact, a study found that at the 10-year mark of their 
careers, the retention rate for women as opposed to men was 12 
percentage points lower for both officers and enlisted members.
    Key provisions in the last House-passed Coast Guard 
reauthorization focused on the recruitment and retention of 
women in the Coast Guard, including the Fair and Equal 
Treatment of Women in the Coast Guard Act.
    Admiral, can you speak to the existing retention efforts 
the Coast Guard is undertaking to ensure that women Coasties 
are equally valued and respected in their service?
    And are there additional congressional actions that are 
needed to support the Service in these efforts?
    Admiral Lunday. Congressman, we have had significant 
success not only in recruiting recently, but also in the 
retention across our Coast Guard, both men and women. For the 
recruiting side, I am pleased to report that this year, we have 
already had people either join or sign up, over 4,900 people, 
well beyond our 4,300 annual target, which far exceeds even 
last year's successful number of recruits, both men and women.
    And we continue to increase our recruiting capacity to move 
and be able to recruit from across our great United States the 
best talent, both men and women, into our Coast Guard.
    We also need to retain our best talent, men and women, in 
the Coast Guard as well, and so that is a top priority, and as 
the Secretary as part of Force Design has set a goal to grow 
the Coast Guard workforce, both Active and Reserve, by 15,000 
people, men and women, both Active and Reserve, then we need to 
continue to keep our foot on the gas on recruiting and 
retention.
    Mr. Pappas. Thank you.
    I yield back.
    Mr. Ezell. The gentleman yields.
    The Chair now recognizes Mr. McDowell for his 5 minutes of 
questions.
    Mr. McDowell. Thank you, Chairman.
    And thank you, Admiral, for being here today to testify 
before the subcommittee.
    I am glad to see that modernization of Coast Guard IT 
systems is a priority in Force Design 2028, particularly the 
long awaited and greatly anticipated modernization of the 
antiquated Merchant Mariner Credentialing Program.
    Are mariner licensing examinations part of the proposed 
transformation of the Merchant Mariner Credentialing Program, 
and how will that be accomplished?
    Admiral Lunday. Congressman, improving the technology 
systems that we use for mariner licensing and credentialing is 
critically important. That is a part of the way forward, as you 
mentioned, and also making sure that the training and 
certification process that is provided by schools for mariners 
that the Coast Guard is responsible for overseeing, that 
continues to meet the high standards necessary for mariners to 
be able to develop the skills and competencies and 
qualifications necessary.
    This is also vital given the President's direction in the 
Executive order to restore America's maritime dominance, and 
part of that is by reinvigorating our merchant marine and so 
that remains and will be a top priority going forward, sir.
    Mr. McDowell. Is course approval process part of the 
proposed transformation of the credentialing program?
    And how will that be accomplished?
    Admiral Lunday. Sir, the course credentialing program and 
the approval process is already a high priority because of some 
challenges we have seen in the last several years, but I will 
commit to you we will bring that into our efforts that are part 
of restoring our effort, the Coast Guard's contribution to 
restore America's maritime dominance because it's a critical 
component of our mariners being able to operate and do their 
job.
    Mr. McDowell. Admiral, when this subcommittee met in March, 
we had a conversation about the Coast Guard's aging 
infrastructure and assets, and at one point we were talking 
about the Coast Guard continuing to operate vessels with 
literal holes in them, which I am no expert in ships, but that 
is a problem.
    And the Coast Guard has historically struggled with the 
recapitalization efforts since the Service must maintain day-
to-day operations, which result in assets that are operated 
well beyond their service life.
    And so, lack of access to funding obviously contributed to 
this problem, but today, however, we have an influx of 
congressional support for historic levels of funding, which 
seems to be unacknowledged in the Coast Guard's budget request.
    Can you explain the reason for the discrepancies between 
the Coast Guard's relatively modest budget request and the $21 
billion recapitalization investment provided for in the House 
budget's reconciliation bill?
    Admiral Lunday. Well, Congressman, I would say that the 
fiscal year 2026 President's budget reflects a strong start in 
the right direction with over a $1 billion increase between 
PC&I and O&S, along with the significant historic investment 
levels that budget reconciliation reflects, will give a 
significant move in the right direction to restore Coast Guard 
readiness.
    And, of course, that will need to be matched in the 
following years by a stronger top line for PC&I and O&S to 
continue to rebuild and restore Coast Guard readiness.
    Mr. McDowell. One of the most important things to me is 
making sure that you all have what you need to do drug 
interdiction as these drugs try to come into our country. What 
is the single most helpful thing we could do to give you the 
tools you need to stop fentanyl trafficking, human trafficking?
    Obviously, you all are doing a fantastic job this year with 
catching these criminals, but what is the single most helpful 
thing we can do?
    Admiral Lunday. Congressman, the work that we are doing to 
control and secure and defend our borders from illegal drug 
trafficking that brings death and destruction to our 
communities, including in fentanyl, is one of our top 
priorities.
    We talk about the importance of search and rescue, but that 
mission saves lives just as much as search and rescue does. And 
so in terms of the top priority, I would say that the 
shipbuilding acquisitions to deliver the Offshore Patrol 
Cutter, which will replace our aging 210-foot fleet, the ships 
that you described that often have holes in them, and that are 
not quite as old but still old, 270-foot cutters; those 
Offshore Patrol Cutters will get advanced technology and 
capability.
    But it will also be matched by investments in our boats and 
our advanced sensors and technology that enable our boarding 
teams who are doing this work at the tactical edge against 
adversaries who are smuggling these drugs linked to the 
cartels, many who are designated as foreign terrorist 
organizations, that will give them the advantage that they need 
to be successful, to be able to get that mission done and 
return home safely.
    Mr. McDowell. Thank you, sir.
    I yield back.
    Mr. Ezell. The gentleman yields.
    The Chair now recognizes Ms. Strickland for 5 minutes of 
questioning.
    Ms. Strickland. Thank you, Chairman Ezell and Ranking 
Member Carbajal.
    It is nice to see you, Admiral Lunday. Congratulations, and 
I look forward to working with you, and a shout out to Mrs. 
Lunday for being here. It is nice to see you both.
    So, I represent Washington State and the South Puget Sound 
where the maritime sector is integral to our national security 
and our economy, and I am concerned that this administration's 
neglect and misuse of Coast Guard assets will compromise both.
    Slashing the Coast Guard shoreside infrastructure budget by 
90 percent, as mentioned earlier, while spending $50 million on 
a new jet for Secretary Noem is unserious and signals to the 
men and women of the Coast Guard that this administration does 
not value the mission or their well-being.
    I want to talk first about movement of cutter assets. I 
want to talk about focusing on the diversion of assets critical 
to marine safety and capabilities from their assigned 
districts.
    So, earlier this year, the subcommittee learned that two 
Fast Response Cutters in the Pacific Northwest were being taken 
from District 13 for the rest of the year to support security 
operations of the southern border. These were the only Fast 
Response Cutters serving the entire Pacific Northwest 
coastline, and we were informed that to address the long-term 
coverage gap in Washington State, a cutter is being transferred 
from Alaska. This will leave communities in Alaska with one 
fewer cutter.
    Now, I think my colleagues on the committee, perhaps 
including Congressman Begich from Alaska, would appreciate a 
thorough explanation of decisions that impact search and rescue 
operations and responsiveness to marine safety concerns that 
require a Fast Response Cutter.
    Robbing Alaska to pay Washington State only exacerbates the 
gaps in regions that need coverage, especially now that fishing 
season and summer boating season are going to be in full 
effect.
    Admiral Lunday?
    Admiral Lunday. So, Congresswoman, the decision to move 
temporarily assets around in order to meet higher priority 
needs is something that I and the operational commanders within 
the Coast Guard do every day in the face of increasing mission 
demand across our mission areas.
    And so, the decision to temporarily deploy Fast Response 
Cutters from the Pacific Northwest down to support controlling 
and enforcing and securing our southern border is not unusual.
    And in making decisions in conjunction with the Pacific 
area commander and the district commanders on how to address 
and position other assets temporarily to accomplish other 
missions is part of the work that we do every day across the 
Coast Guard.
    I will say that in the Pacific Northwest under the 
leadership of the district commander, Admiral Fosse, he is 
taking significant action and steps over the last 4 months 
under Operation Arctic Fox to secure the northern border, 
working not only with other Federal, State, and local partners, 
but with our allies in Canada, working together to make sure 
that we can control threats in that area.
    So, we remain active in our operations not only for marine 
safety, but for controlling and securing and defending our 
northern border as well.
    But what I would say, Congresswoman, that also points out 
that because we are in the state of readiness that we are in 
today, we are not able to deliver the same level of services in 
all of our mission areas that we have traditionally tried to 
do. We are not as resilient, and we do not have the same level 
of bench strength that we had in the past because of increasing 
decades of underinvestment, and so, we do not have the same 
level of availability of assets.
    Ms. Strickland. Thank you.
    I want to talk a bit about privatization of search and 
rescue missions. DHS officials have said that the Coast Guard 
should not be doing search and rescue, and subcommittee staff 
recently learned that private companies are looking to contract 
for this mission.
    Now, I have nothing against private contractors 
supplementing, in addition to, but substitution raises really 
big red flags for me.
    So can you talk a bit about the search and rescue mission 
and whether you plan to allow privatization of it when it 
should be a public service?
    Admiral Lunday. Congresswoman, I am certainly aware that 
there are commercial companies that provide salvage services 
for mariners who need it. Coast Guard search and rescue remains 
one of our primary missions. In fact, it is more than that. It 
is a special trust we have with the American people. It is part 
of our DNA.
    And so, we are not lowering our response standards for 
maritime search and rescue.
    But I would tell you, beyond search and rescue, other 
missions we do also save lives. Controlling, securing, and 
defending our border and maritime approaches against illegal 
drugs and illegal migration, that also saves lives.
    Defending our border and our maritime critical 
infrastructure from cyber threats to that infrastructure that 
could threaten the movement and facilitation of commerce----
    Ms. Strickland [interrupting]. I want to get back to the 
question though. Are you going to allow privatization of the 
search and rescue function instead of having the Coast Guard do 
it?
    Admiral Lunday. Congresswoman, I have no plans to step away 
from our search and rescue operations or turn that over to 
private companies.
    Ms. Strickland. Thank you.
    I yield back.
    Mr. Ezell. The gentlelady yields.
    I now recognize Mr. Begich from Alaska. Go ahead, sir.
    Mr. Begich. Thank you, Mr. Chair.
    First of all, Admiral, let me just compliment you on your 
responsiveness on our Nation's most southern border. Your 
mission there is of critical importance, and it is great to see 
an administration prioritize that important security mission, 
and we certainly appreciate all the hard work that you have 
done and your team has done to prioritize that mission, in 
addition to all the other responsibilities that you have across 
the country.
    So, shifting focus to Alaska, Alaska's vast, rugged 
maritime domain makes the Coast Guard indispensable for search 
and rescue, law enforcement, fisheries enforcement, and border 
security.
    But delays in modernizing home ports, housing, and 
icebreaking capabilities disproportionately impact Alaska's 
public safety.
    Chronic undercapitalization has left Alaska's bases and 
vessels in disrepair. Your written testimony underscores the 
severe strain this has placed on crews and missions.
    The fiscal year 2025 budget reconciliation, however, 
includes over $21 billion to recapitalize assets and rebuild 
shoreside infrastructure, which are key for Alaska's future 
readiness.
    So with that as a backdrop, what assurances can you provide 
that the current $3.15 billion shoreside infrastructure funding 
will prioritize Alaska's most urgent recapitalization needs 
rather than be diverted to lower priority projects in the lower 
48?
    Admiral Lunday. Congressman, as you know, sir, the U.S. is 
an Arctic nation because of the State of Alaska. The Coast 
Guard presence in Alaska is strong, and so our recapitalization 
needs that are already on track will be fueled even more and 
accelerated by the investments in reconciliation.
    And so we are very excited about future asset delivery into 
the State of Alaska. In fact, the chairman and I on the gulf 
coast visited the Coast Guard cutter Storis just before she got 
underway.
    She is now underway in the Gulf of America steaming toward 
the Panama Canal, and after going up the west coast will arrive 
in Juneau for a formal commissioning ceremony on the 8th of 
August before conducting her first operational patrol.
    That is our Nation's third polar icebreaker we have just 
added to the fleet, and we are very excited about that. It is a 
year ahead of the planned schedule that we are operating that 
asset.
    Mr. Begich. That is impressive. We are very excited about 
Storis coming to Alaska. We believe this is the first of many 
investments with respect to icebreakers that are necessary for 
the Arctic, and I think it will go a long way to restoring that 
capability for the United States.
    One additional question. Given the unique operational 
demands of Alaska's vast and remote maritime environment, how 
does the Coast Guard plan to ensure that new technologies and 
platforms like autonomous vessels or AI-enabled surveillance 
systems are adapted for Alaska's extreme conditions, including 
winter operations and our limited infrastructure?
    Admiral Lunday. Congressman, I think we have certainly 
learned lessons with Rescue 21 and some of the persistent 
challenges we had in Alaska with the design and function of 
that, given the extreme conditions in that operating area.
    And so as we go forward with the Coastal Sentinel, which is 
one of the systems that was mentioned in Force Design 2028 to 
use technology to advance our maritime domain awareness, to 
help control, secure, and defend our border, we will have to 
make sure that that technology is functioning and able to be as 
successful and effective in the harsh Arctic conditions in 
Alaska.
    Mr. Begich. Thank you, Admiral.
    We are very excited about your pending confirmation, and we 
appreciate your continued leadership of our Nation's border 
security, search and rescue operations, and more, and we look 
forward to working with you going forward.
    And with that, Mr. Chair, I yield back.
    Mr. Ezell. The gentleman yields.
    The Chair will now recognize Ms. Scholten for 5 minutes.
    Ms. Scholten. Thank you, Chair Ezell and Ranking Member 
Carbajal.
    And welcome, Admiral Lunday. It is good to see you again.
    Before I jump into my questions, I just want to share my 
gratitude for your service to our Nation and congratulate you 
on your nomination to serve as the next Commandant of the Coast 
Guard.
    I am so grateful that west Michigan is warming up this time 
of year, but we are coming off a very significant winter. Our 
Coasties in Muskegon and Grand Haven are tasked with ensuring 
that lake freighters can pass through these waters and make 
deliveries on time, regardless of the weather conditions.
    It was, in fact, just weeks ago I feel like I can count on 
my hands that I was out there watching an incredible ice rescue 
off of our Grand Haven pier.
    The Great Lakes region has kept supply chains running with 
one icebreaker, a single icebreaker, which is why the Service 
requested congressional support for a new Great Lakes 
icebreaker in fiscal years 2024 and 2025.
    However, the Coast Guard's most recent request does not 
include a funding ask for an additional Great Lakes icebreaker. 
Further, the budget does not include a request for dollars to 
replace the 40-year-old Bay class 140-foot icebreaking tugs, 
two-thirds of which are in the Great Lakes.
    Admiral Lunday, can you elaborate on the exclusion of these 
Great Lakes priorities in the Coast Guard's fiscal year 2026 
budget?
    Admiral Lunday. Congresswoman, let me start. The President 
was very clear that the Nation needs 40 icebreakers. Now, the 
Coast Guard is very excited about that because we are the ones 
that operate the Nation's icebreaker fleet.
    Now, a lot of people focus on our polar icebreakers, but it 
includes our domestic icebreaking fleet, which of course is 
centered on the Great Lakes fleet.
    And so we appreciate the support for the funding in 2024, 
$20 million of the 55 needed to begin the analyze and select 
phase for an additional Great Lakes icebreaker, and we have 
begun that work.
    But it is critical as we look at the reconciliation and the 
opportunity that that affords that we certainly will be using 
that to build out our domestic icebreaking fleet, including an 
additional, the Great Lakes icebreaker that you mentioned.
    Ms. Scholten. We are also very grateful that the President 
has mentioned a priority, but again, we are going to need to 
see that in the budget. Can you direct me to any specific 
actions where we might be able to see substantive action taken 
and where the Coast Guard intends to specifically delineate 
that we can expect to see those Great Lakes icebreakers 
included in the budget?
    Admiral Lunday. Well, Congresswoman, it is not in the 
fiscal year 2026 request because, although we did see an 
increase, it did not have a higher top line that enabled us to 
include it in this year's budget request.
    Ms. Scholten. When do you anticipate it would be included?
    I am sure you can appreciate my dismay when, on the one 
hand, we are talking about a commitment to 40 icebreakers, but 
then we don't actually see the request included in the fiscal 
year 2026 budget.
    Admiral Lunday. Well, Congresswoman, we are also looking at 
the opportunity that the budget reconciliation will provide for 
significant capital infusion and recapitalization of our ships, 
including all of our icebreaker fleet, which includes the Great 
Lakes fleet.
    Ms. Scholten. So, would you anticipate, then, that through 
the reconciliation package, we would be able to specifically 
allocate funding for a Great Lakes icebreaker?
    And would you be willing to submit language that would 
specifically delineate that?
    Admiral Lunday. Congresswoman, we are working with the 
administration and Congress as the budget reconciliation 
package moves forward, now on the Senate side. The Great Lakes 
icebreaker, a new one, is a high priority, but we will work 
with the administration on that language as part of the 
reconciliation process.
    Ms. Scholten. My office is more than willing to work with 
you as well. In the Great Lakes, we are unfortunately far too 
used to getting by with much less, but when it comes to the 
Great Lakes icebreaker program, we need to continue to elevate 
the importance of this program.
    And, again, we look forward to working with you to make 
sure that this is not overlooked in the budget reconciliation 
process.
    I want to, if I may, one more quick question on the 
importance of the Coast Guard and its people.
    The President's budget is an opportunity to demonstrate 
priorities, as my colleagues have said. Despite intentions to 
grow the size of the Service significantly, this budget does 
not meaningfully increase operations in support account and 
drastically cuts shoreside infrastructure for things like 
housing and, critically important to me, childcare facilities 
and healthcare facilities.
    How do you propose to grow the size of the Coast Guard 
without significantly increasing operations and support and 
shoreside infrastructure?
    Admiral Lunday. Congresswoman, within the O&S inside the 
fiscal year 2026 budget request is $27 million as part of Force 
Design 2028 that will get after some of the key elements that 
are enablers for that.
    And so, it will get after increasing our recruiting. It 
will deliver a Coast Guard human resources IT system that we 
are badly in need of to help us develop our workforce in the 
future, and so, that includes some key early investments in O&S 
that will get after some of the workforce needs.
    Ms. Scholten. I appreciate that.
    I know I am running out of time here, but I would like to 
resubmit my question specifically about childcare facilities, 
and if you can get me more specific details on that for the 
record, I would be grateful.
    Admiral Lunday. I will do that for the record, 
Congresswoman.
    Ms. Scholten. Thank you.
    I yield back. Thank you, sir.
    Mr. Ezell. The gentlelady yields.
    The Chair now recognizes Mr. Patronis for 5 minutes.
    Mr. Patronis. Thank you, Mr. Chairman.
    Good morning. Thank you for being here, and congratulations 
on your selection.
    I got to spend Memorial Day weekend down in Miami toward 
your station down there. Marilyn took great care of me. 
Sometimes the best way I learn is visually. So, being able to 
spend some time with the team down there was rewarding for me.
    Look. I understand where the chairman has gone. I 
appreciate your commitment to wanting to put in the budget what 
you need and then the President's agenda of strengthening 
shipbuilding along all of Florida's and Mississippi's and 
Alabama's Gulf of America.
    Chairman, I wish I could have joined you this week. That 
sounds like it was an exceptional visit, but seemed to double 
down on investment and importance of shipbuilding and the 
amazing job creation opportunities that brings. That helps. It 
gets me excited.
    But I appreciate you joining us today discussing the future 
of the Coast Guard. I am fortunate. I get to share a load-
bearing wall with your liaison office, and the guys over there 
I pretty much check on every morning when I walk in. You have 
got good people, and it is a real good fortune for me, as I am 
brand new, to have some folks there willing to spoon feed me to 
understand the issues that are so important to our country.
    So again, thank you for assembling a good team.
    But let's talk a little bit about when I grew up. My home 
was Panama City when I grew up, and I remember as you get 
imprinted when you are a young child, Coast Guard cutter 
Dependable would make the news, WJHG, and it was a big deal.
    My family's business was right down the street from the 
Coast Guard station, and when I started thinking about this job 
I'm taking, I decided to Google it. This vessel was built back 
in the 1960s and it is still operational.
    And I understand the importance of keeping up with the 
times. With the investment of these new OPC cutters, what do 
you see probably as the most significant contribution that they 
will bring to the next generation for, I guess, multiple 
generations as the life expectancy of these vessels expects to 
be?
    Admiral Lunday. Well, sir, the Offshore Patrol Cutter is a 
critical investment for the Coast Guard because it replaces 
what is the backbone of our cutter fleet, which right now is 
done by a combination of those older 210s like Dependable and 
then the 270-foot cutters that we also continue to operate.
    And so, they enable us to provide that presence not only 
offshore, near offshore, but in the long-range maritime 
approaches to the U.S. border, in all of the places there is a 
U.S. border, and that is a lot of territory.
    And so, the ability to have that advanced capability the 
Offshore Patrol Cutter provides is critical to enabling our 
crews to control, secure, and defend the border and approaches.
    Mr. Patronis. Thank you.
    When it comes to giving you the resources to meet your 
training needs, open-ended question, are we doing enough?
    Admiral Lunday. Well, sir, the training--first of all, 
Congressman, our people are our most important asset, and 
making sure that they not only have the assets and capabilities 
they need, but that they have the training they need, is 
critically important.
    And so, part of our need in the operations and sustainment 
side is to ensure that we have the right resources to be able 
to deliver that training to them.
    And when we talk about Force Design 2028, one of the 
campaigns is technology. It's: How do we use technology to 
deliver the training and the performance improvement that they 
need in a cutting-edge way? The traditional way of training 
people is in a classroom or simulators that require significant 
travel, but we can provide through augmented and virtual 
reality, and we are leaning into that now, but there is so much 
more opportunity to do it to deliver advanced training in a way 
that provides realistic training to enable our people to be 
successful.
    Mr. Patronis. I appreciate that.
    When I got on this committee, I was definitely excited to 
see that the chairman's leadership was wanting to make this 
part of our funding priority. I thought, that's kind of cool. I 
got to be a part of hopefully seeing an investment which I 
think it impacts especially an individual that has got a big 
coastal area and important as it is for the Service, you and 
the men and women you lead, provide.
    Thank you for your service.
    And, Mr. Chairman, I yield.
    Mr. Ezell. The gentleman yields.
    The Chair now recognizes Mr. Larsen for his 5 minutes of 
questions.
    I'm sorry. Mr. Garamendi.
    Mr. Garamendi. I appreciate being called the ranking member 
of the committee. I am sure Rick would find that difficult. 
Thank you very much.
    Mr. Ezell. I saw you sitting there.
    Mr. Garamendi. No problem at all.
    Admiral Lunday, I promised myself I would be polite, and I 
am going to do the very best I can. We have been at this 
icebreaker thing for well over 12 years, 12 years that I have 
been on the committee, and it is one misstep, one bad decision 
after another.
    There is no money in the ongoing budget for icebreakers. 
You are looking at the Polar Star, the new polar icebreaker, at 
its earliest sometime in early 2030, maybe 2031, 2032.
    We are looking at, as you just said, additional money in 
the reconciliation. That's, I guess, good, except it's in a bad 
bill.
    My point to you is, What are you doing within the 
administration of the Coast Guard to put in place the right 
people with the right authority to get this job done?
    At least in the last decade that has not happened, with 
multiple admirals sitting in that chair, not providing the 
competency and the organizational structure within the Coast 
Guard to get a critical job done.
    So, what are you doing?
    Admiral Lunday. Congressman, the Force Design 2028 
blueprint for transformational change that the Secretary 
announced will do that in two key ways. First, the 
establishment of the Secretary of the Coast Guard with the 
support of the Congress will provide direct focus, civilian 
control over the Coast Guard that includes responsibility for 
that Secretary over the acquisition programs for the Coast 
Guard, including the polar icebreaker.
    The other part of that, in the acquisition, one of the four 
lines of effort is to streamline our acquisition process so 
that we can move at the speed and scale to deliver the assets 
needed and move away from the challenges we've had in the past 
with acquisition.
    Mr. Garamendi. God, I have heard the happy talk so many 
times.
    So, we have a civilian Secretary responsible for the 
icebreaker program. Is that what I heard you say?
    Admiral Lunday. Well, sir, the construct--and this is where 
we are working with the administration and Congress on the 
language to create a Secretary of the Coast Guard, which is an 
administration priority, but it is similar to the construct for 
other military Service Secretaries that provides that civilian, 
political level leadership and accountability----
    Mr. Garamendi [interrupting]. Excuse me. Excuse me.
    Admiral Lunday. Yes, sir.
    Mr. Garamendi. So, that is going to take a law. Has that 
been introduced?
    Admiral Lunday. Yes, sir. Chairman Ezell has introduced a 
bill on the House side. Senator Scott has introduced a bill on 
the Senate side, and the administration is working on that 
legislation.
    Mr. Garamendi. Now, within your organization, are you 
structuring an organization with specific responsibility with 
an appropriate level of authority and staff to get this job 
done?
    Admiral Lunday. Yes, sir, we are.
    Mr. Garamendi. And could you please provide that in writing 
to the committee and certainly to me?
    Admiral Lunday. Congressman, we will provide it in writing 
in specific detail as part of the Force Design implementation 
plan that includes how we are clarifying the accountability on 
how those programs will be successful as we execute that money 
not only for the icebreaker programs, but all of our 
acquisition programs.
    Mr. Garamendi. Thank you. I look forward to getting that 
detail soon because these issues are in play both in this 
committee as well as in the Armed Services Committee over the 
next couple of months.
    Just note that I have serious doubt, but I think it is 
imperative that this committee focus on the organizational 
structure to be set up and the accountability and the 
responsibility within your organization.
    And furthermore, if the reconciliation bill fails to move 
or if your piece of it is eliminated along the way, it is 
imperative that those funding programs be made available and 
that they be made available immediately, not over the next 
decade.
    With that, Mr. Chairman, I yield back.
    Mr. Ezell. The gentleman yields.
    The Chair now recognizes Mr. Van Drew for his 5 minutes of 
questions.
    Dr. Van Drew. Thank you, Mr. Chairman.
    Admiral, or really Acting Commandant, I wish you the very 
best sincerely, and thank you for being here today.
    To some degree, I want to associate myself with the remarks 
of Mr. Garamendi. He has been here more years than I have. I am 
going on my seventh year in Congress, 7 years, and it is not a 
reflection on you at all because I think we are all going to 
turn the page now.
    We have gone through this process, and that's why I have 
tried to keep pushing for benchmarks, even working on 
legislation that we have benchmarks, because we have these 
discussions, we hear these things--and it's our bad, too, by 
the way; it's Congress as well--and we just don't get anywhere 
near the finish line.
    Now, to be very focused here, would I be correct--I am just 
going to ask you for some quick answers first, then we will get 
into a little more detail--that with the administration, there 
is a new, forceful commitment through the reconciliation bill, 
by the way? Ms. Scholten is not here now, but I wish I could 
say to her I am not worried about the budget bill at this 
point. We haven't done particularly well with budget bills 
whether it be an omnibus bill or the 12 separate bills, but the 
reconciliation process, I know I have had direct conversations 
with you folks, direct conversations with the administration, 
and I believe, and I have seen it, that there is a new, 
forceful commitment in will and desire as well as dollars.
    Would you agree that is true?
    Admiral Lunday. Yes, Congressman.
    Dr. Van Drew. Thank you.
    I want to just make that clear. I want everybody to hear 
that.
    And would you agree with me that a lot of this is being 
done through the budget reconciliation process?
    Admiral Lunday. At this time, that's correct, Congressman.
    Dr. Van Drew. Yes, it is. Thank you.
    That's the plan. That's one of the reasons that we are 
doing the reconciliation, because we just can't seem to get the 
damn thing done when we go through the budget bills. Multiple 
administrations, not blaming one side or the other. So this is 
why this is a unique time in history.
    And that's why I believe in the benchmarks as well. I think 
it's important stuff, whether it's icebreakers, patrol cutters, 
whether it's infrastructure and facilities.
    Again, you are familiar with all of this. I know you do 
your homework and look this all up when you come here.
    In Cape May, 85 percent of your recruits go through Cape 
May. That's where the training center is. Again, to answer Ms. 
Scholten, there are dollars there for new barracks. We have 
begun that process. It's moving forward. That's going to be 
helpful, particularly to the females that are now enlisting in 
the Coast Guard as well; is that correct?
    Admiral Lunday. Yes, sir. That's correct.
    Dr. Van Drew. Thank you.
    What steps are being taken--and I know it's hard to be real 
specific because we have got to get the damn reconciliation 
bill done first, though--can you share with us briefly any 
steps and timelines for Offshore Patrol Cutters and Polar 
Security Cutters?
    And I know you have answered that already. So just any 
spots you want to touch up on.
    Admiral Lunday. Yes, sir. So, there are two stages for the 
Offshore Patrol Cutter. We talked a little bit about stage 1, 
the first four that are being built in Panama City, Florida, 
and the first hull is scheduled for delivery by the end of this 
calendar year, but it's only 72 percent complete, and so it's 
at high risk of delivery to meet that first target.
    And OPC stage 2 being built by Austal of Mobile, Alabama, 
that is OPC's numbers 5 through 15. They began construction 
last August and are making strong progress on delivery of that 
first one, which I believe is scheduled for 2028.
    I will get the exact date on the OPC number 5, but they are 
making strong progress, having started construction less than a 
year ago.
    Dr. Van Drew. And wouldn't you say that there is a new 
energy, a new commitment, a new sense of urgency that we have 
got to get these things done, stop talking about them, even 
when we deal with these different entities that you named?
    Admiral Lunday. Well, there is an urgency, Congressman, not 
only an urgency we feel in the Coast Guard to deliver assets 
for our crews that are operating on hold, assets that are 
increasingly harder to maintain and increasingly not available 
for operations, but nationally to provide the Coast Guard to 
meet the needs of the American people in the face of increasing 
threats, including nation-state threats.
    Dr. Van Drew. Absolutely, and I was going to review all 
that, but I didn't because everybody up here knows it, and you 
know it. Certainly, all of you know it very well.
    There is $21 billion appropriated to address shortfalls in 
the reconciliation package. Do you believe that's going to be 
helpful if that reconciliation package is successful?
    Admiral Lunday. Congressman, it will be an important start 
to reversing the downward readiness trend, but it will need--
yes, sir?
    Dr. Van Drew. Thank you.
    The Active-Duty Force, we have talked about that a little 
bit before, too. Any particular plans to reinvigorate that, to 
reenergize it, to get more folks?
    Admiral Lunday. Yes, sir. The Secretary has announced as 
part of Force Design 2028 a direction to grow the Coast Guard 
workforce, principally our enlisted workforce, both Active and 
Reserve, by up to 15,000 new members.
    And so, that will put our already strong progress we've 
made on recruiting--we will have to keep the pedal to the floor 
and continue to recruit to meet that goal by the target, which 
is by the end of 2028.
    Dr. Van Drew. I appreciate your work. Let's do this, 
Chairman. We're breaking new ground here. We're going to do 
good stuff.
    I yield back to you.
    Mr. Ezell. The gentleman yields.
    The Chair now recognizes Ms. King-Hinds for your 5 minutes.
    Ms. King-Hinds. Thank you, Mr. Chairman.
    Congratulations, Admiral Lunday.
    The Coast Guard has had an enduring presence across the 
Pacific Islands since World War II, and as somebody who is 
coming from the Northern Mariana Islands, I can personally 
attest to the value that the Coast Guard brings, the men and 
women, to protect our waters and save lives, whether responding 
to typhoons or delivering aid to atolls around the Pacific 
Islands, drug interdiction, or just protecting our sovereign 
waters from illegal fishing, you guys have been there. So, I 
want to first of all express my deep gratitude on behalf of our 
community for all the work that you have put into protecting 
our waters.
    So, my first question is, we have been hearing a lot about 
just some of the issues that folks have with the budget, but I 
wanted to hear from your perspective.
    Can you describe the benefits the Coast Guard could receive 
based on the House-passed reconciliation package?
    Specifically, can you tell us how the House-passed 
investments will provide our servicemembers with resources they 
need to conduct lifesaving missions and drug interdictions?
    Admiral Lunday. Congresswoman, the investment in 
reconciliation will provide a recapitalization of the capital 
assets we need, our cutters, boats, aircraft, C5I systems, and 
shore infrastructure necessary to conduct all of those 
operations, including throughout the Indo-Pacific.
    Ms. King-Hinds. Thank you.
    Everybody is talking about these cutters, and really, I 
don't normally sit in this subcommittee. So, one of the reasons 
or the primary reason I wanted to sit in, and thank you to the 
chairman and ranking member, is to talk about the fast cutters.
    From what I understand, they have been a force multiplier 
for our region, especially within the FSM and the other remote 
island nations when it comes to the bilateral shiprider 
agreements.
    Can you speak to the value that the Fast Response Cutters 
bring to the region?
    And also, what would it take for the CNMI to be considered 
as an alternative home port option for your cutters?
    Admiral Lunday. Well, Congresswoman, as you know, the U.S. 
is not only a Pacific nation. It is a Pacific Islands nation 
because of the Americans that live in and make their home in 
Hawaii and the three Territories in the Pacific, including the 
Northern Mariana Islands, Guam, and American Samoa.
    In the last 6 years since I served out there, since 
LyndaLee and I served out there in District 14, we have 
increased the Coast Guard cutter presence by eight cutters--
eight new cutters--six of those Fast Response Cutters in 
Honolulu, six based in Guam, two National Security Cutters in 
Hawaii as well, and we have added a 270-foot cutter that we 
permanently transferred.
    With support of the Congress here and the administration, 
we have appropriations in 2024 to deliver next year two 
additional Fast Response Cutters out to the Western Pacific to 
be based there.
    We are looking at home port options in Guam, and we will 
look at options also in the Northern Mariana Islands as we 
explore. There is a lot of demand for space out there, and so, 
we have other competing needs with others that want a home 
port, but we need those cutters forward.
    They are game changing capability not only to control, 
secure, and defend our borders in the U.S. Territories there, 
but also to strengthen our relationship with the other Pacific 
Islands nations that are working to control their own borders 
and protect their sovereignty against the malign influence of 
the Chinese Communist Party throughout the Pacific Islands.
    Ms. King-Hinds. Well, thank you for that.
    Please do let me know how I can be of assistance to get you 
to make the decision to consider the CNMI to be one of the fast 
cutter's home port.
    Thank you.
    Admiral Lunday. Thank you.
    Ms. King-Hinds. I yield back my time, Mr. Chairman.
    Mr. Ezell. The gentlelady yields.
    I now recognize myself for another 5 minutes.
    Admiral, I know we have discussed at length this morning 
and in previous times, but I want to put a fine point on this 
reconciliation.
    The reconciliation investments we were able to secure under 
President Trump's leadership are absolutely transformational. I 
think everybody on this subcommittee would agree that the 
billions of dollars we are seeing in investment for our 
Coasties is a nonpartisan issue.
    We have got to get this done, and I hope my colleagues will 
join me in the package and voting yes on this coming up.
    Thank you.
    Moving on to my next question, despite receiving other 
substantial cash infusions, the Offshore Patrol Cutter, OPC, 
stage 1 contractor, Eastern Shipbuilding Group, has indicated 
that they cannot carry out the contract without taking an 
unabsorbable loss.
    As a result, the Coast Guard has issued a stop work order 
for hulls 3 and 4 and has issued a request for information, 
RFI, to determine options to move the stage 1 hulls to yet 
another yard to complete the work.
    OPC 1 was scheduled to be commissioned at the end of the 
year. Can you give us an update on whether hull 1 will be 
delivered, and if so, when?
    Admiral Lunday. Congressman, based on a completion level on 
OPC 1 of only 72 percent, I would say that the delivery of that 
asset by the end of the calendar year, which is the current 
scheduled delivery, is in doubt.
    Mr. Ezell. It's in doubt?
    Admiral Lunday. Yes, sir.
    Mr. Ezell. Very good. Thank you.
    Given these delays, what's your plan to maintain the 
readiness of the Medium Endurance Cutter, MEC, fleet until it 
is replaced?
    Admiral Lunday. Well, Chairman, the 210-foot Medium 
Endurance Cutters are increasingly expensive to maintain, and 
as Congressman Webster mentioned, they often have holes in them 
that need to be repaired on any major drydock or dockside 
availability.
    And so we have plans in the fiscal year 2026 budget to 
decommission three of those aging 210-foot cutters.
    Now, our 270-foot cutters are not quite as old. We are 
continuing a process to conduct a service life extension 
program of six of those thirteen 270-foot cutters. That is 
being conducted up at our Coast Guard yard.
    That will extend the life of half of that fleet to enable 
us to bridge the gap until the delivery of the Offshore Patrol 
Cutter and those join the operational fleet.
    Mr. Ezell. Very good. The administration has put out an RFI 
that includes the option of building icebreakers in foreign 
yards. As you are aware, Coast Guard vessels are required to be 
built in the United States unless the President provides a 
national security waiver.
    Can you provide greater detail on why the administration 
included foreign yards in its RFI?
    Admiral Lunday. Mr. Chairman, part of that RFI, working 
with the administration, is to provide as much information and 
options to the President to inform the President's decision 
within the President's discretion.
    What I would say, sir, is that since 1790, when our first 
Coast Guard cutters were built, all of them have been built in 
U.S. shipyards by American labor, craftsmen, and tradesmen who 
are skilled at what they do, and they have delivered superior 
ships and cutters that we have operated for almost 235 years 
with rare exception.
    And as we saw last week on the gulf coast, both in shipyard 
in Bollinger Mississippi, and at Austal, we saw those same 
American craftsmen and tradesmen hard at work building the next 
generation of Coast Guard cutters.
    Mr. Ezell. Thank you.
    And you can provide us assurance that the United States 
will have every opportunity to compete for the Coast Guard's 
icebreaker business?
    Admiral Lunday. Mr. Chairman, the President has issued an 
Executive Order on Restoring America's Maritime Dominance, 
another Executive order on the defense industrial base that 
moves to restore American competitiveness including in 
shipbuilding.
    So, I don't think I could say it any better than the 
President has.
    Mr. Ezell. Great. It appears there has been some 
significant resistance from the Coast Guard on the issue of 
automated systems aboard some commercial vessels. In 2020, the 
Coast Guard reversed a longstanding practice of authorizing 
engine room crewing reductions for articulated tug barges, or 
ATBs, with automation.
    More recently, the Coast Guard declined to implement a 
statutory change in the fiscal year 2023 NDAA permitting the 
agency to issue certificates of inspection for automated system 
ATBs with reduced engine room crewing.
    Given the significant advances in technology, and in 
coordination with Force Design 2028's pillar on technology, I 
believe automation on commercial vessels is here to stay. 
Vessel operators have made significant investments in automated 
machinery, which increase vessel safety and reliability, and 
enhance the mariner's situational awareness.
    Most importantly, I understand that the available data on 
automated system ATBs demonstrates that they were operated 
safely for years with reduced crewing. The Coast Guard should 
keep pace with technological innovations and engage 
constructively with industry. Doing so keeps them in line with 
Force Design 2028's pillar on technology, which reads, ``The 
Coast Guard will accelerate the adoption of secure, state-of-
the-market technologies to enhance data sharing, situational 
awareness, and operational effectiveness.''
    The default answer cannot be simply ``no,'' and that 
especially applies when Congress enacts laws that the Coast 
Guard is obligated to implement.
    Can you give me a little response on that, please?
    Admiral Lunday. Well, Mr. Chairman, the articulated tug and 
barge, those have grown, continued to grow in size and 
employment and with the implementation of Subchapter M, the 
minimum manning of two engineers is the standard that is 
currently applied.
    Now, as those have gotten larger, we have seen them 
approach the size of some tankships that have a separate 
manning requirement of four engineers.
    Now, facilitating commerce is critically important. It is 
one of our primary responsibilities, and that includes the safe 
movement of commerce, and I know maritime industry shares that 
same priority.
    Now, while we agree that technology has enabled those 
engineers that are standing watch on the ATBs to be more 
successful and more efficient at standing watch, we don't 
believe that the technology is sufficiently advanced in 
robotics and automation to be able to reduce below the current 
levels in Subchapter M what those standards are.
    But we look forward to working with industry and also with 
the committee on as we see advances in that technology and when 
the opportunity might be in the future to change that manning 
standard. But for now, we feel that is the safe standard for 
ATBs.
    Mr. Ezell. Thank you, Admiral.
    I yield back.
    Mr. Carbajal, would you like to?
    Mr. Carbajal. Thank you, Mr. Chair.
    A lot has been said today about the positive Coast Guard 
funding in the bad, really bad reconciliation bill. While I 
made it clear that I support significant increases to our Coast 
Guard budget, I believe it shouldn't come on the backs of other 
Americans.
    Has the Coast Guard determined how many Coast Guard 
veterans will be at risk of losing Medicaid coverage if H.R. 1 
passes?
    Admiral Lunday. No, Ranking Member Carbajal.
    Mr. Carbajal. We might want to look at that, because I 
think numbers are staggering.
    Force Design 2028 is at best a concept of a plan. Yet 
despite not having a detailed plan, the Secretary has ordered 
the removal of at least 25 percent of the flag corps.
    How did the Coast Guard land on a 25-percent reduction?
    And what data and evidence did the Service use in 
determining that it had too many admirals?
    Admiral Lunday. Ranking Member Carbajal, the Secretary 
signed out a memo directing the reduction this year by no less 
than 25 percent of the flag corps, and in that memo, it also 
specified that the five Coast Guard flag officers that were 
assigned to combatant commands under the Department of Defense 
remain intact and the Office of Chief Prosecutor also remain 
intact.
    And so, we are looking to develop the plan. The full plan, 
as I said, was part of the Force Design 2028 implementation 
plan, and we look forward to briefing you on that plan.
    But that is the information I have now.
    Mr. Carbajal. Were you consulted on the 25-percent 
reduction?
    Admiral Lunday. The Secretary's direction for 25 percent 
was provided, and then it was up to me to determine this year, 
given the movements of flag officers and the importance of 
maintaining leadership continuity and continuity of command of 
flag positions, that I make decisions, and those were the ones 
you saw reflected on the 25th of July in the release of the 
flag assignment message.
    Mr. Carbajal. Admiral, I am going to challenge your loyalty 
talent. Were you consulted in reaching the 25-percent 
reduction?
    If you could, just answer yes or no.
    Admiral Lunday. Yes. I was part of discussions with 
departmental leadership before the Secretary signed that memo, 
yes, sir.
    Mr. Carbajal. Thank you very much.
    Mr. Chair, I yield back.
    Mr. Ezell. The gentleman yields.
    The Chair now recognizes Mr. Mast for his 5 minutes of 
questioning or additional time if you need it, sir.
    Mr. Mast. Well, thank you, Mr. Chairman. I appreciate that.
    Admiral, congratulations, absolutely. That will be 
monumental, monumental to be able to take the reins, and so, I 
congratulate you on that.
    I want to talk a little bit about the Coast Guard's 
operations in the State of Florida, probably no surprise. I am 
a Representative of the State of Florida.
    I have seen a number of different attempts to enter our 
waters and then ultimately make their way to shore, individuals 
coming from Haiti, individuals coming from the Bahamas, 
oftentimes to their own deaths as they capsize their vessels, 
things like that, miles and miles offshore.
    But I just wanted to walk through that a little bit and 
have some conversation about your layer, where that layers with 
the State law enforcement, with local law enforcement, how 
everything is working together.
    Are there technologies that we need to bring to bear?
    Are there threats that you are seeing?
    Just today, the news has been paying attention to the drone 
strike that Ukraine conducted against Russia 1,000 miles 
inland. But what are you doing to deal with threats as it 
relates to drones powered by AI to identify specific vessels or 
individuals in uniforms, things like that?
    I just want to have a conversation about these things and 
see where you land on the vulnerabilities and what we are doing 
about them.
    Admiral Lunday. Well, Congressman, on the southern border 
where the President has declared a national emergency, in the 
Coast Guard, we view that as a system. So most people think, of 
course, of the southwest border, including the maritime 
portions, but for us that is also the southeast maritime border 
approaching the State of Florida and also our Territories in 
the Caribbean, from threats of migration, illegal migration, 
from Haiti and Cuba and the Bahamas, as you said, as well as 
movement of drugs and other threats.
    And so, that is just as high a priority and part of what we 
view as our response to that Presidential national emergency.
    As you know, sir, that is under the leadership and command 
of Admiral Doug Schofield in the Seventh District, along with 
Admiral Nate Moore in the Atlantic Area. And so, that remains a 
high priority.
    In terms of the collaboration with other Federal agencies 
and the State and local, it is probably the gold standard of 
cooperation that I have seen across the Coast Guard. We work 
hand in hand with Federal, State, and local and county law 
enforcement to address the range of threats that are 
approaching by sea, and we do that successfully.
    Sir, you asked about the concerns about countering UAS or 
UAS threat, and we are also concerned about that. We have a 
mobile deployable capability in our maritime security response 
teams, one on the west and the east coast, and we have two 
fixed systems, one installed on a Fast Response Cutter in New 
England, the other in southern California to address counter-
UAS threats.
    But that is not enough capacity. My concern is we have got 
to scale and we have got to scale fast to address the kind of 
evolving dynamic threat that we have seen, that was reflected, 
as you said, sir, in the dynamic strike that we have seen news 
reports of from Ukraine into Russia.
    Mr. Mast. Very good. As you look at that, I have gotten to 
know a lot of my Coasties over the years. I live in Fort Pierce 
with a small Coast Guard station in Fort Pierce there. They are 
great individuals, and so, I just take that opportunity to 
thank them for their service as my neighbors, friends and 
neighbors that have worked there.
    To move a little bit more specifically to some of those 
threat profiles, what is the greater threat profile going on 
right now, given, I don't want to say change in operations 
since the change of Presidency, but the change in the way those 
operations are being enforced?
    You have the same core mission sets that you had then, but 
new President, new way of operating. So, has the threat profile 
changed in terms of individuals attempting to come across our 
borders and the volume of people coming across our borders? Has 
that volume changed?
    Admiral Lunday. Well, in some ways it has changed, 
Congressman. So, we have seen a drop in attempted illegal 
maritime migration from Cuba and Haiti, but the conditions 
inside those countries that would drive migration have not 
changed.
    So, our strong enforcement presence is keeping that 
pressure for attempted movement of illegal migration into the 
U.S., particularly south Florida, that's keeping that at bay.
    Mr. Mast. It may change or not change with the threat 
profile for drugs?
    Admiral Lunday. We still are concerned about the movement 
of drugs toward Florida and the rest of the southern border, 
sir. There is record cocaine production in Central and South 
America, and so, as we ratchet down pressure on certain parts 
of the southern border, like the land portion, we expect to see 
and have seen increased movement and pressure by those cartels 
to try and move drugs and people by maritime means.
    And so, that is why our increased presence off of 
California and then off of Texas in the Gulf of America is so 
critical to addressing and making sure that those cartels are 
not successful in moving those threats along the maritime side.
    Mr. Mast. Thank you, Admiral. I appreciate it.
    Mr. Chairman, thank you for the time. I yield back.
    Mr. Ezell. The gentleman yields.
    You are not going to believe this, Admiral, but I have got 
a couple more questions.
    The Coast Guard plans to acquire larger cutters and 
aircraft over the next decade, and the reconciliation bill 
provides a substantial boost to those efforts.
    However, despite repeated requests from this subcommittee, 
we have yet to receive a detailed plan on where those new 
assets will be based as well as a plan to build out the 
required infrastructure needed to operate them.
    These projects take years, and if you don't start now, you 
will be running into a serious problem when these new assets 
come online.
    When the committee asked for a plan, we were provided with 
a short document purportedly listing future home ports. For 
reference, we have created a chart here with this information, 
which can be seen on the screen.
    [Slide shown.]
    Does the Coast Guard have a long-term plan for the 
shoreside capital investments needed to homeport new cutters 
and aircraft that it plans to bring online for the next decade?
    If so, can you commit to providing the committee with a 
detailed schedule and cost projections for those projects?
    Admiral Lunday. Mr. Chairman, we will provide a plan and 
the home port to the degree we have that information 
solidified.
    On the chart you see here, I would note that there is a 
notation ``not publicly announced.'' That's different than the 
``to be determined.'' Now, public announcement, we may have a 
very strong plan for a home port for particular cutters or 
series of cutters, but it's not quite ready for public 
announcement because we don't want to change those decisions 
once they have been publicly revealed.
    But I think what this also reflects, Mr. Chairman, is that 
with the challenges we have had with funding year after year, 
and oftentimes the money for homeporting, which is funded not 
necessarily at the same pace as our cutters are that are going 
to be homeported in those places where the shore infrastructure 
needs to be built out, that we often are relying on unfunded 
priority list and the support of Congress above the top line to 
be able to fund those projects.
    And so, it doesn't enable us to deliver with confidence 
because we don't have that funding what the projected home 
ports are going to be because we haven't had the confidence to 
make those decisions in a way that fills out the chart the way 
that you would want to.
    Mr. Ezell. Thank you.
    The environmental compliance project backlog impact 
statement contained in the fiscal year 2026 budget represents 
$163 million in environmental cleanup costs, significantly 
underestimating the Service's liabilities.
    Is the Coast Guard considering the significant 
environmental remediation efforts and associated costs that 
will go along with these projects when preparing for project 
budgets?
    Admiral Lunday. Mr. Chairman, the environmental remediation 
costs are present in every part of the life cycle from planning 
to maintenance and sustainment to disposition, and so, they are 
always a significant part or cost that is involved in the 
process of managing the shore infrastructure.
    So, for new shore infrastructure or recapitalization, some 
of the support that the committee has provided and Congress for 
survey and design is critically important to enabling us to 
adequately assess and identify what those environmental 
remediation costs are so that we can include them in the 
requests so that when those requests come to you they are more 
mature, and we have higher confidence in them, and we won't 
have to come back for more additional funding.
    Mr. Ezell. Final question. Reconciliation provides $4.3 
billion for polar security vessels and nearly $5 billion for 
Arctic Security Cutters and domestic icebreakers.
    Without these investments, will the Coast Guard be able to 
maintain a presence in the Arctic, protect American 
sovereignty, and guard our national interests?
    Admiral Lunday. Mr. Chairman, the polar icebreaker program 
is our highest acquisition priority. The Nation needs those 
icebreakers to not only control, secure, and defend our border 
around Alaska, but to ensure U.S. sovereignty throughout the 
increasingly navigable Arctic Ocean.
    But it requires that icebreaker capability, and so, they 
are essential to national security and preserving our national 
security.
    Mr. Ezell. Thank you.
    Mr. Carbajal?
    Mr. Carbajal. I don't have any other additional questions, 
Mr. Chair.
    Mr. Ezell. The gentleman yields back.
    If there are no further questions from any members of the 
subcommittee who have not been recognized and would like to say 
anything?
    Seeing none, that concludes the hearing for today. I would 
like to thank you, and I thank you all for being here today, 
for our witness and your testimony.
    The subcommittee now stands adjourned.
    [Whereupon, at 11:39 a.m., the subcommittee was adjourned.]

                                Appendix

                              ----------                              


  Questions to Admiral Kevin E. Lunday, Acting Commandant, U.S. Coast 
                      Guard, from Hon. Mike Ezell

    Question 1. The Fiscal Year (FY) 2026 President's Budget requests 
$164 million to acquire four MH-60 helicopters and fund ongoing SLEP 
projects.
    Question 1.a. Of the 164 million, how much will be spent on MH-60 
acquisitions, and how much will be spent on fleet sustainment? Does the 
United States Coast Guard (Coast Guard or Service) intend to procure 
used MH-60's from the Navy, and if so, how many hours would they have?
    Answer. The $164 million in the Fiscal Year 2026 President Budget 
is solely for Procurement, Construction, and Improvement investments of 
the H-60 Acquisition/Sustainment Program to support on-going and 
baselined activities for the H-60 SLEP (approximately $36 million) and 
H-60 Fleet Growth (approximately $128 million) increments of the 
acquisition program. This funding will support continued conversion of 
retired Navy HH-60H or SH-60F hulls already in possession of the Coast 
Guard. The Service does not intend to procure any additional U.S. Navy 
H-60 hulls with these funds.

    Question 1.b. What alternative options exist for acquiring used MH-
60 hulls that would be more long-term cost effective and could perform 
the Coast Guard's missions to the same level as the MH-60 platform?
    Answer. There are no current or expected alternative options for 
acquiring additional retired/used H-60s hulls for conversion to the 
Coast Guard MH-60T. The Coast Guard is currently exploring other 
alternatives, including options that would leverage the private sector 
to produce new rotary wing aircraft for Coast Guard operations. That 
market research is ongoing, and the Service would be pleased to brief 
you when there is more information available. In addition, the One Big 
Beautiful Bill Act of 2025 provides $2.283 billion to expand the Coast 
Guard's rotary-wing fleet by up to 40 aircraft.

    Question 2. In April 2024, the Government Accountability Office 
(GAO) published a study that found that the Coast Guard needed to 
conduct a fleet mix analysis to help ensure it identifies the necessary 
number of helicopters it requires to meet its mission demands. 
Additionally, the Don Young Coast Guard Authorization Act of 2022 
directs the Coast Guard to develop a comprehensive aviation strategy 
that is informed by the recommendations of the GAO's study. As of this 
hearing, the Coast Guard has yet to conduct a fleet mix analysis or 
develop an aviation strategy.
    Without a fleet mix analysis or comprehensive aviation 
modernization strategy, how can the Coast Guard ensure that its 
aircraft can continue to perform its unique mission set into the 
future?
    Answer. The Coast Guard appreciates the Government Accountability 
Office's report and is working to incorporate their recommendations, 
including the fleet mix analysis, to better inform future decisions. 
The Coast Guard's Aviation Strategy was briefed to Congress in May of 
2025.

    Question 3. Currently, the majority of the Coast Guard's rotary-
wing fleet consists of the MH-65 short range recovery helicopter, which 
are now out of production. As many of these aircraft approach their 
30,000 hour service life, spare parts have become increasingly scarce. 
In March, the Coast Guard published a request for information (RFI) on 
industry options for leased helicopters to perform the function of the 
MH-65 Dolphins, presumably to alleviate the increasing pressure to find 
an MH-65 replacement.
    Question 3.a. What is the status within the Coast Guard of this 
lease proposal?
    Question 3.b. What is the Coast Guard's plan for this fleet of 
leased helicopters? Where would they be based?
    Question 3.c. For how long would a potential lease last? Depending 
on the length of a lease, can you explain the benefit of considering 
procurement of a short-range helicopter to ensure current and future 
mission coverage, complementary capabilities of two different rotary-
wing ranges and functions, and reduce the risk of lack of assets in 
case of a fleet-wide grounding, as has happened with other military 
services?
    Question 3.d. From which budget or account will the funding for 
this potential lease come?
    Answer to 3.a., 3.b., 3.c., & 3.d. A request for information for a 
leased rotary wing asset concluded on March 21, 2025. The Coast Guard 
is evaluating the responses to inform possible future actions.

    Question 4. The Coast Guard has stated its rotary-wing plan is to 
phase out the standard shipboard-deployable, short range recovery 
helicopter in favor of an all medium-range recovery helicopter fleet 
transition to an all-MH-60 fleet.
    Question 4.a. If the Coast Guard transitions to an all MH-60 fleet 
with fewer total helicopters, would the same number of air stations be 
required? Does the Coast Guard plan to close air stations as part of 
the transition to an all MH-60 fleet? Will the transition to an all-MH-
60 fleet reduce the number of helicopters available to conduct search 
and rescue missions at each air station?
    Answer. Due to the increased range, endurance, and capability of 
the MH-60, the Coast Guard expects to need a fleet of at least 127 MH-
60s. The Service is focused on first transitioning coastal search and 
rescue units that require minimal infrastructure modifications and is 
still assessing the final asset laydown and fleet size needed.

    Question 4.b. If the Coast Guard closes any Air Stations or Air 
Sub-Facilities, could the Service provide the exact same level of 
response and capability to the areas and communities the Coast Guard 
currently serves?
    Answer. Any potential changes to asset laydown will incorporate 
robust planning and evaluate mitigating factors to ensure the Coast 
Guard continues to provide the capability the American public deserves 
and expects.

    Question 4.c. Assuming the Coast Guard continues with the 
transition to an all MH-60 fleet, can every current Air Station and Air 
Sub-Facility support the increased size and personnel needs of the H-60 
helicopter?
    Answer. Air station facilities may require some level of 
modification to support the MH-60 helicopter and additional personnel. 
The Service is focused on first transitioning MH-65E air stations that 
require minor facility modifications while conducting an analysis of 
facilities that may require more extensive modifications.

    Question 4.d. Does the Coast Guard have funding to increase the 
hanger size, personnel housing, and other infrastructure needs to 
accommodate an all MH-60 fleet?
    Answer. As the Coast Guard prepares to transition air stations that 
require more extensive facility modifications, the Service will 
incorporate the necessary funding through the annual appropriation 
process.

    Question 4.e. Is it true that to fit the MH-60s inside the current 
hangers on Coast Guard cutters, the helicopters must be modified to 
have folding tails?
    Question 4.e.i. If so, how often does the tail-fold mechanism fail?
    Answer to 4.e. & 4.e.i. Yes, the Coast Guard is re-installing 
blade-fold/tail-fold capability on the MH-60 fleet so they can be 
hangered on the Service's newest cutter classes, including the National 
Security Cutter, Offshore Patrol Cutter, and Polar Security Cutter. The 
tail-fold mechanism is manually operated as part of a standard 
maintenance procedure and is not expected to have a high failure rate.

    Question 4.f. Can the MH-60 operate on all helicopter-capable Coast 
Guard cutters? Given the much greater size of the MH-60T in comparison 
to the existing cutter-based H-65s, is there an increase in risk 
factors, particularly at night and in inclement weather, when 
conducting shipboard landings?
    Answer. All shipboard helicopter operations carry inherent risks, 
but the MH-60 can safely operate onboard the National Security Cutters, 
Famous B Class (270 foot) cutters, and is planned to operate onboard 
the future Offshore Patrol Cutters and Polar Security Cutters in 
various weather conditions.

    Question 4.g. What is the increased number of personnel required to 
maintain MH-60s vs the H-65s? Does the Coast Guard have the required 
personnel and funding to sustain the additional Coast Guard members and 
housing for their families?
    Answer. The MH-65 requires 10 maintenance personnel per airframe 
while the MH-60 requires at least 16 enlisted maintenance personnel per 
airframe. As the Coast Guard grows the MH-60 fleet, the Service will 
request the necessary funding and personnel to support and operate the 
assets.

    Question 5. Earlier this year in March, the Coast Guard issued a 
Request for Information (RFI) to seek statements from vendors able to 
lease and maintain helicopters capable of performing missions currently 
conducted using the Coast Guard MH-65 platform. It is my understanding 
the Coast Guard will use the results of this RFI, along with other 
market research, to assess the feasibility and desirability of 
potential contracting strategies.
    Question 5.a. Can you please provide more background explaining why 
the Coast Guard issued this RFI?
    Answer. The MH-65 is beyond service life and in need of 
replacement. The Coast Guard does not have an adequate parts supply 
chain to sustain the MH-65 fleet and the MH-65 fleet is currently 
operating at our lowest readiness rate in its history. The Request for 
Information was released to conduct market research on potential assets 
that may be able to support Search and Rescue, Rotary Wing Air 
Intercept or Airborne Use of Force operations.

    Question 5.b. Does the Coast Guard anticipate a need for additional 
rotor-wing aircraft in the near future due to retirements from the 
current fleet or from an increase of aircraft needed to perform the 
Service's missions? Please detail the Coast Guard's reasoning behind 
this RFI.
    Answer. The RFI was market research to understand what potential 
material solutions exist to better inform future decisions. The Coast 
Guard does anticipate a need for additional rotor-wing aircraft due to 
the end of life of the MH-65.

    Question 6. As the Coast Guard continues its acquisition process, 
can you provide the Committee with a commitment from you that the 
Service will work with Congress on creative solutions that will 
maximize our taxpayers' dollars in acquiring the equipment needed to 
perform Coast Guard missions?
    Answer. Yes.

  Questions to Admiral Kevin E. Lunday, Acting Commandant, U.S. Coast 
                  Guard, from Hon. Marilyn Strickland

    Question 1. Admiral Lunday, in January 2025, you announced a 
revision of reporting guidelines for the prevention and resolution of 
harassment in the Coast Guard workplace.
    Question 1.a. Could you talk about what the new guidelines consist 
of?
    Question 1.b. How do they differ from the previous guidelines?
    Question 1.c. What was the motivation for the change?
    Question 1.d. Since the new guidelines went into effect, do you 
have data on workplace harassment problems resolved in the chain of 
command, or EEOC complaints filed since the new guidelines went into 
effect?
    Answer to 1.a., 1.b., 1.c., & 1.d. On January 27, 2025, the Coast 
Guard paused significant portions of Harassing Behavior Prevention, 
Response, and Accountability, Commandant Instruction 5350.6, to enable 
a comprehensive review of policy and procedures, and ensure they best 
serve the needs of the workforce, our leaders, and the Coast Guard. 
This review has been extended, and it is ongoing.
    Coast Guard members and employees may still report harassment or 
any other misconduct to their chain of command or supervision. Under 
the interim accountability policy, reports of sexual harassment and 
hate incidents continue to be handled in accordance with the procedures 
and requirements in Commandant Instruction 5350.6. All other reports of 
harassing behavior are being resolved in a timely manner by leaders at 
the lowest appropriate level. Additionally, both civilian and military 
members may still report discriminatory harassment to the Civil Rights 
Division through the Equal Employment Opportunity or Military Equal 
Opportunity programs.
    The Coast Guard is collecting data on the processing and resolution 
of harassment under the interim accountability policy and will continue 
to maintain records for complaints resolved through the Equal 
Employment Opportunity and Military Equal Opportunity programs.

  Questions to Admiral Kevin E. Lunday, Acting Commandant, U.S. Coast 
                  Guard, from Hon. Hillary J. Scholten

    Question 1. Stakeholders across my district and the larger Midwest 
region are leading an effort to create a consortium of shipyards, 
suppliers, and manufacturers in the Great Lakes region to actualize 
recent recommitments to boost the Coast Guard's capabilities. To that 
end, I encourage the Coast Guard to leverage the incredible talent and 
innovation throughout our region. Can you touch on how Congress can 
encourage the private and public sectors to collaborate to make up for 
decades of underinvestment in the Coast Guard?
    Answer. Demand for Coast Guard capabilities has never been higher, 
and the Service needs the right assets, systems, and infrastructure to 
support mission execution properly. The Coast Guard requires a strong 
maritime industrial base, including a robust and skilled maritime 
workforce to meet our shipbuilding, maintenance, and repair needs, and 
is engaged with the Navy and other federal partners to support 
investments in the maritime industrial base that enhance readiness and 
support national security. The Coast Guard also recognizes that 
comprehensive industry outreach and engagement on the Service's 
specific needs translates into better outcomes. The Coast Guard 
appreciates Congressional efforts to strengthen domestic capacity and 
capability across the maritime sector, including initiatives to address 
supply chain disruptions and shortfalls. The Service currently has 
several requests for information and proposals posted for major 
shipbuilding efforts and looks forward to receiving competitive bids. 
The Coast Guard will also continue to work with our federal partners to 
identify additional opportunities to strengthen the maritime industrial 
base.

    Question 2. Stakeholders have expressed concerns that the Coast 
Guard is duplicating the work of the Equal Employment Opportunity 
Commission (EEOC) in standing up its own reporting and investigating 
structure for harassment in the maritime workplace. As you know, EEOC 
is charged by Congress with investigating complaints of harassment in 
the workplace and ensuring that employers maintain a zero-tolerance 
environment. Recreating this function at the Coast Guard could be 
counterproductive to the timely resolution of incidents and taking 
action against offenders.
    Question 2.a. What definition or standard of harassment is the 
Coast Guard using to guide its work? If it varies from EEOC's 
definitions, standards, and guidelines, please explain why.
    Answer. The Coast Guard investigates a wide range of mariner 
misconduct, including harassment cases (e.g., bullying, hazing). 
Generally, Coast Guard harassment investigations address incidents that 
violate company harassment policy and definitions. Harassment 
investigations differ between the Equal Employment Opportunity 
Commission and the Coast Guard in several significant ways, as 
enumerated in the below table.

                 Harassment: EEOC vs. USCG Investigation
------------------------------------------------------------------------
                                                   USCG Personnel
                   EEOC                            Investigations
------------------------------------------------------------------------
Purpose: Prevent and remedy unlawful        Purpose: Suspension and
 discrimination in the workplace.            revocation (S&R)
                                             proceedings to promote
                                             safety at sea. (46 USC 77).
------------------------------------------------------------------------
Applicability: Employers with 15 or more    Applicability: Individuals
 persons employed (20 or more for age        holding a valid Merchant
 discrimination). The EEOC is a charge-      Mariner Credential.
 driven agency, meaning under most
 circumstances, the EEOC initiates an
 investigation because an individual
 voluntarily filed a charge of
 discrimination with the EEOC. By law, the
 EEOC must keep charge information
 confidential and will not disclose
 information related to a charge to the
 public.
------------------------------------------------------------------------
Basis: The EEO laws protect individuals     Basis: The USCG can
 from discrimination because of race,        investigate any act of
 color, religion, sex, national origin,      mariner misconduct under 46
 age (40 or older), disability, or genetic   CFR 5.27.
 information, including harassment that
 creates a hostile work environment. The
 laws also protect individuals from
 retaliation if they oppose employment
 discrimination, file a complaint of
 discrimination, or participate in the EEO
 complaint process.
------------------------------------------------------------------------
Reporting Timeline: Individuals must file   Reporting Timeline: Upon
 a charge with the EEOC within 180 days of   knowledge of an incident,
 the alleged discrimination. Except for      the responsible entity
 age discrimination claims, the time frame   (i.e., owner, master,
 is extended to 300 days if the alleged      employer) must report to
 discrimination occurred in a jurisdiction   the USCG. The responsible
 with a state or local agency authorized     entity then has 10 days to
 to grant or seek relief. For age            provide a company after-
 discrimination claims, the time frame is    action summary to the Coast
 extended to 300 days only if there is a     Guard for sexual harassment
 state (not local) agency with authority     cases. (46 USC 10104)
 to grant or seek relief.                    However, there is no set
                                             statute of limitation for
                                             individual mariner
                                             reporting.
------------------------------------------------------------------------
Action by EEOC: Possible action includes    Final Action by Agency:
 mediation, investigation, and/or            Administrative action, such
 determination as to whether there is        as S&R, taken against the
 reasonable cause to believe that            mariner's credential.
 discrimination has occurred. When
 reasonable cause is found, the EEOC will
 try to resolve the charge through
 conciliation, a voluntary process in
 which parties must agree to the
 resolution. If the EEOC cannot reach a
 settlement, the case will be referred to
 EEOC's legal staff (or the Department of
 Justice in certain cases), who will
 decide whether to file a lawsuit. If the
 EEOC does not decide to file a lawsuit,
 or if the EEOC does not make a finding of
 reasonable cause, the EEOC will issue the
 charging party a Notice of Right to Sue
 allowing them to file their claims on
 their own in court within 90 days of
 receipt.
------------------------------------------------------------------------
                              Key Takeaway:
The USCG has broader authority for investigation of an individual
 mariner's conduct, including harassment, but serves a complementary
 function to the EEOC's narrower focus on employer-based discrimination.
 While the processes are complementary, there may be overlap, and
 therefore, employees may report harassment to the EEOC, regardless of
 whether the alleged discriminatory action falls under the scope of the
 USCG's reporting requirements..
 
Many small passenger vessel operators employ fewer than 15 individuals,
 which places them outside the jurisdiction of the EEOC and limits
 potential remedies under that process. In contrast, the Coast Guard's
 procedures apply to all credentialed mariners, regardless of the size
 of their employer. Furthermore, the resolution mechanisms differ
 significantly: the EEOC focuses on employer accountability through
 informal resolution efforts and civil litigation, while USCG's S&R
 centers on credentialing actions against individual mariners..
------------------------------------------------------------------------


    Question 2.b. In terms of budget and staffing, can you tell us how 
many resources are being allocated for harassment reporting?
    Answer. The Coast Guard has approximately 180 active-duty Marine 
Investigators trained to conduct investigations into merchant mariner 
misconduct, including incidents of harassment.

  Questions to Admiral Kevin E. Lunday, Acting Commandant, U.S. Coast 
                    Guard, from Hon. John Garamendi

    Question 1. Admiral Lunday, what lessons has the Coast Guard 
learned from the delays and cost-overruns of the Polar Security Cutter 
program? How will these lessons be applied to the Arctic Security 
Cutter program?
    Question 1.a. What specific changes are being made to ensure the 
timely and cost-efficient acquisition of the icebreakers the Coast 
Guard needs for their vital mission?
    Answer to 1 & 1.a. The Polar Security Cutter encountered challenges 
typical of a first-of-class program. The program incorporated lessons 
observed in similar programs and feedback from operators and 
maintainers to acquire a ship that best meets mission requirements on 
schedule and within budget. Specifically, the Polar Security Cutter 
program made changes to contract strategies, design and production 
strategies, and changed management processes to incorporate these 
lessons learned. These lessons will be applied at the start of the 
Arctic Security Cutter program and integrated through the acquisition, 
as applicable.

    Question 1.b. Will greater accountability be incorporated into the 
acquisition program? If yes, how specifically will accountability be 
built into the program?
    Answer. Yes. The Polar Security Cutter program leverages multiple 
accountability measures via a Fixed-Price-Incentive contract structure, 
the use of incentives, and the Contractor Performance Assessment 
Reporting System. The Coast Guard will consider these greater 
accountability measures when starting the Arctic Security Cutter 
program.

    Question 2. The Government Accountability Office recommended the 
Coast Guard ``complete an analysis of the cost and sequencing for the 
polar icebreaker fleet expansion, including how these efforts are 
affordable within its larger acquisition portfolio.'' Can you talk 
about the Coast Guard's progress on this recommendation?
    Answer. The joint Coast Guard and Navy Integrated Program Office 
analyzed the cost of the Polar Security Cutter, including sequencing 
considerations. The Government's assessment of cost was used to assess 
the shipbuilder's proposal to reestablish baseline as fair, reasonable 
and affordable.
    The Service also considered cost in the context of the broader 
future polar fleet, to inform budget requests. The Coast Guard is 
working to update its Polar Fleet Mix Analysis to reflect the 
Administration's priorities in light of the appropriations in the One 
Big Beautiful Bill Act of 2025.

    Question 3. Admiral Lunday, how might broader investments in U.S. 
maritime infrastructure benefit the Coast Guard? As we work to 
strengthen our maritime industrial base, what changes might have the 
most positive impact on the Coast Guard?
    Answer. Demand for Coast Guard capabilities has never been higher, 
and the Service needs the right assets, systems, and infrastructure to 
support mission execution. With the strong support of the 
Administration and Congress, the Service is investing in a 
multibillion-dollar portfolio to acquire operational assets and shore 
infrastructure to accomplish those missions. The Coast Guard relies on 
a strong maritime industrial base, including a robust and skilled 
maritime workforce, to meet our shipbuilding, maintenance, and repair 
needs, and the Coast Guard is engaged with the Navy and other federal 
partners to support investments in the maritime industrial base that 
enhance readiness and support national security. Additional maritime 
industrial base capacity and capability means more competitive 
solutions for the Coast Guard to meet mission.

  Questions to Admiral Kevin E. Lunday, Acting Commandant, U.S. Coast 
                     Guard, from Hon. Laura Gillen

    Question 1. Last year, under the Coast Guard's FY24 Force 
Realignment Initiative, Coast Guard Station Jones Beach was one of 19 
stations which the Coast Guard adjusted to a ``new operational 
status,'' part of a broader reduction in presence and capabilities 
devoted to Long Island, including the closure of the East Moriches 
Station and the removal of an 87-foot Coast Guard Cutter from Montauk 
and the region. Will the Coast Guard consider restoring station 
capability at Station Jones Beach as part of the upcoming Force Design 
2028?
    Answer. The Coast Guard will continue to prioritize the safety of 
Long Island boaters. As the Coast Guard recovers from an unprecedented 
workforce shortage, and recruiting and retention continue to show 
improvements, we will evaluate operational demands to determine the 
best allocation of our workforce and resources.

    Question 2. Coast Guard District One, which encompasses Long 
Island, is considering a Buoy Modernization Proposal. Under this 
initiative, the Coast Guard is proposing to discontinue and eliminate, 
including two buoys and aids to navigation in the Fourth Congressional 
District of New York--at the East Rockaway Inlet and Jones Inlet. Will 
you commit to review this proposal and not replace or remove the 
physical buoys at East Rockaway and Jones Inlet?
    Answer. The Coast Guard commits to review this proposal. Any 
decision to discontinue or make changes to buoys and/or aids to 
navigation will be made after careful consideration during a review 
process which includes public outreach and comment.

                             [all]