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


                TAKING ACCOUNT: IMPLEMENTATION OF THE 
                 COAST GUARD AUTHORIZATION ACT OF 2025, 
                 RECONCILIATION, AND FORCE DESIGN 2028
=======================================================================

                                (119-45)

                                HEARING

                               BEFORE THE

                            SUBCOMMITTEE ON
                COAST GUARD AND MARITIME TRANSPORTATION

                                 OF THE

                              COMMITTEE ON
                   TRANSPORTATION AND INFRASTRUCTURE
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED NINETEENTH CONGRESS

                             SECOND SESSION

                               __________

                             JUNE 30, 2026

                               __________

                       Printed for the use of the
             Committee on Transportation and Infrastructure
             
[GRAPHIC NOT AVAILALE IN TIFF FORMAT]             


     Available online at: https://www.govinfo.gov/committee/house-
     transportation?path=/browsecommittee/chamber/house/committee/
                             transportation
                             
                                __________
                                
                 U.S. GOVERNMENT PUBLISHING OFFICE
64-383 PDF              WASHINGTON : 2026
=======================================================================

             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
John Garamendi, California           Daniel Webster, Florida
Henry C. ``Hank'' Johnson, Jr.,      Georgiaomas Massie, Kentucky
Andre Carson, Indiana                Scott Perry, Pennsylvania
Dina Titus, Nevada                   Brian Babin, Texas
Jared Huffman, California            David Rouzer, North Carolina
Julia Brownley, California           Mike Bost, Illinois
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               Addison P. McDowell, North 
Shomari Figures, Alabama             Carolina
Maxwell Frost, Florida               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
                                     Clay Fuller, Georgia
                                     James Gallagher, California
                                ------                                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       John Garamendi, California
Addison P. McDowell, North           Laura Gillen, New York,
    Carolina,                          Vice Ranking Member
  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. Rick Larsen, a Representative in Congress from the State of 
  Washington, and Ranking Member, Committee on Transportation and 
  Infrastructure, opening statement..............................     5
    Prepared statement...........................................     6
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...........     7
    Prepared statement...........................................     8

                               WITNESSES

Vice Admiral Douglas M. Schofield, Chief of Staff, U.S. Coast 
  Guard, oral statement..........................................    10
    Prepared statement...........................................    11
Triana McNeil, Director, Homeland Security and Justice, U.S. 
  Government Accountability Office, oral statement...............    13
    Prepared statement...........................................    14

                                APPENDIX

Post-Hearing Questions for the Record to Vice Admiral Douglas M. 
  Schofield, Chief of Staff, U.S. Coast Guard, from Hon. Salud O. 
  Carbajal.......................................................    41

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


                             June 26, 2026

    SUMMARY OF SUBJECT MATTER

    TO:      LMembers, Subcommittee on Coast Guard and Maritime 
Transportation
    FROM:  LStaff, Subcommittee on Coast Guard and Maritime 
Transportation
    RE:      LSubcommittee Hearing on ``Taking Account: 
Implementation of the Coast Guard Authorization Act of 2025, 
Reconciliation, and Force Design 2028''
_______________________________________________________________________


                               I. PURPOSE

    The Subcommittee on Coast Guard and Maritime Transportation 
of the Committee on Transportation and Infrastructure will meet 
on Tuesday, June 30, 2025, at 10:00 a.m. ET in 2167 Rayburn 
House Office Building to receive testimony at a hearing 
entitled, ``Taking Account: Implementation of the Coast Guard 
Authorization Act of 2025, Reconciliation, and Force Design 
2028.'' The Subcommittee will receive testimony from the United 
States Coast Guard (Coast Guard or Service) and the Government 
Accountability Office (GAO).

                             II. BACKGROUND

LEGISLATION IN THE 117TH CONGRESS

    The Don Young Coast Guard Authorization Act of 2022 was 
signed into law as part of the James M. Inhofe National Defense 
Authorization Act of Fiscal Year 2023.\1\ It authorized funding 
for Offshore Patrol Cutters, a still unrealized program; 
incorporated aspects of the Safer Seas Act; supported increased 
healthcare and efforts to improve the disability evaluation 
system; and recognized strategic importance of Arctic and 
Alaska as well as cyber infrastructure and unmanned maritime 
systems.\2\
---------------------------------------------------------------------------
    \1\ James M. Inhofe National Defense Authorization Act of Fiscal 
Year 2023, Pub. L. 117-263, Division K, 136 Stat. 3998.
    \2\ Id.
---------------------------------------------------------------------------

LEGISLATION IN THE 119TH CONGRESS

    During the 119th Congress, President Trump signed the One 
Big Beautiful Bill Act and the Coast Guard Authorization Act of 
2025 into law. The One Big Beautiful Bill Act was signed into 
law on July 4, 2025, and provides nearly $25 billion to 
recapitalize the Coast Guard's shoreside, surface, and air 
assets, an amount equal to nearly 15 years of the Coast Guard's 
annual procurement funding.\3\ After years of underinvestment, 
the Service is using this generational investment to address 
its capability gaps. The Coast Guard Authorization Act of 2025 
was included in the National Defense Authorization Act for 
Fiscal Year 2026, which was signed into law on December 18, 
2025.\4\ The bill authorizes appropriations for the Coast Guard 
through Fiscal Year 2027, and amends authorities related to the 
Coast Guard, maritime transportation, and oil spill response.
---------------------------------------------------------------------------
    \3\ One Big Beautiful Bill Act of 2025, Pub. L. 119-21, 139 Stat. 
72.
    \4\ National Defense Authorization Act for Fiscal Year 2026, Pub. 
L. 119-60, 139 Stat. 718.
---------------------------------------------------------------------------

FORCE DESIGN 2028

    Force Design 2028 is the Coast Guard modernization plan, 
designed to prepare the Service to meet future mission 
needs.\5\ The plan focuses on four campaigns: Organization, 
People, Technology, and Contracting and Acquisition. While the 
focus areas remain unchanged, the plan has evolved over the 
past year and a half since its inception.
---------------------------------------------------------------------------
    \5\ U.S. Coast Guard, Force Design 2028, available at https://
www.uscg.mil/Leadership/Commandants-Initiatives/ForceDesign2028/.
---------------------------------------------------------------------------

                    III. ONE BIG BEAUTIFUL BILL ACT

    To reverse the trend of underinvestment and position the 
Coast Guard for success in the future, the One Big Beautiful 
Bill Act provides the Coast Guard with $24.59 billion to 
recapitalize its surface, air and shoreside assets. 
representing nearly 15 years' worth of annual procurement 
funding, the largest investment in the Service's history.\6\
---------------------------------------------------------------------------
    \6\ One Big Beautiful Bill Act of 2025, Pub. L. No. 119-21, 129 
Stat. 72.
---------------------------------------------------------------------------
    Of the nearly $25 billion, $14.078 billion was provided to 
recapitalize the Coast Guard cutter fleet. This includes $4.3 
billion for Offshore Patrol Cutters (OPCs) and $1 billion for 
Fast Response Cutters (FRCs). To support the Service's national 
security efforts to project sovereignty in the Arctic, the 
measure provides an additional $4.3 billion for the Polar 
Security Cutter and $3.5 billion for Arctic Security 
Cutters.\7\
---------------------------------------------------------------------------
    \7\ Id.
---------------------------------------------------------------------------
    The reconciliation measure also makes significant 
investments in the Service's air assets. It provides $1.142 
billion for fixed wing assets, $2.283 billion for rotary wing 
assets, and $266 million for long-range unmanned aircraft 
systems.\8\ The fixed wing funding supported the acquisition of 
new HC-130J aircraft. Funding for rotary wing assets is 
intended to support fleet growth of the MH-60T program.\9\
---------------------------------------------------------------------------
    \8\ Id.
    \9\ 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. The GAO estimates 
that it will cost at least $7 billion to address the Service's 
backlog of shoreside projects, with half of the Services' 
facilities beyond their intended service life.\10\ The number 
is likely higher, as the GAO's estimate does not include 234 
projects for which the Coast Guard has not developed estimates. 
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 prevent the backlog from growing.\11\
---------------------------------------------------------------------------
    \10\ GAO, GAO-25-107581, Coast Guard Shore Infrastructure: More 
Than $7 Billion Reportedly Needed To Address Deteriorating Assets (Feb. 
25, 2025).
    \11\ 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 gaps, the reconciliation measure 
appropriated $4.379 billion for the design and construction of 
necessary shoreside facilities.\12\ This includes $2.729 
billion for homeports for cutters and aircraft, and $425 
million for the recapitalization of barracks and a multi-use 
training center at the Coast Guard's enlisted bootcamp.\13\
---------------------------------------------------------------------------
    \12\ One Big Beautiful Bill Act of 2025, Pub. L. No. 119-21, 129 
Stat. 72; 14 USC 1181 (10)(c).
    \13\ Id.
---------------------------------------------------------------------------
    The reconciliation measure also includes $2.2 billion to 
improve the Coast Guard's aviation, cutter and shore facility 
depot maintenance; cyber; command and control facilities, and 
another $500 million acquisition of a floating drydock and 
necessary dredging at the Coast Guard Yard in Baltimore, 
Maryland. This will equip the yard with the capability to 
handle the Service's Offshore Patrol Cutters and National 
Security Cutters.
    As of February 2026, the Coast Guard has obligated $8 
billion of the funds made available under the One Big Beautiful 
Bill Act.\14\ The Service has the goal of obligating all 
remaining funds by the end of the year. While the 
reconciliation legislation provided limited waivers for 
statutory acquisition planning requirements, the Coast Guard 
has not yet provided long-term acquisition planning documents 
to the Committee.
---------------------------------------------------------------------------
    \14\ Coast Guard OBBB Spend Plan Briefing, (Feb. 2026) (on file 
with Comm.).
---------------------------------------------------------------------------

               IV. COAST GUARD AUTHORIZATION ACT OF 2022

    The Don Young Coast Guard Authorization Act of 2022 was 
enacted on December 23, 2022, as Division K of the James M. 
Inhofe National Defense Authorization Act for Fiscal Year 2023. 
The bill authorized appropriations for the Coast Guard for 2022 
and 2023, and authorizes specific appropriations for a 
childcare subsidy program, behavior health services, evaluation 
of requirements of the Arctic Security Cutter, and an aqua 
alert notification system pilot.\15\
---------------------------------------------------------------------------
    \15\ James M. Inhofe National Defense Authorization Act of Fiscal 
Year 2023, Pub. L. 117-263, Division K, 136 Stat. 3998.
---------------------------------------------------------------------------

AUTHORIZATION OF APPROPRIATIONS, ACCOUNTABILITY, AND GROWTH

    The Coast Guard Authorization Act (CGAA) of 2022 authorized 
appropriations through Fiscal Year 2023.\16\ The bill 
authorizes a level of funding that will enhance Coast Guard 
operations and help the service replace and modernize its 
cutters, and upgrade its shoreside and cyber infrastructure. It 
also required acquisition life-cycle cost estimates.
---------------------------------------------------------------------------
    \16\ Id.
---------------------------------------------------------------------------
    Several provisions touched on geographic priorities 
including testing of icebreaking efforts and evaluating the 
needs in the Great Lakes. The bill also called for the creation 
of a medium icebreaker office, evaluation of operations and 
infrastructure, evaluation of transit through the Arctic, 
evaluation of shipyards in Finland and Sweden and the 
acquisition of a commercial icebreaker. While many of these 
efforts were in their beginning stages at the time of the 
bill's passage, they have now become fully realized.
    The CGAA of 2022 also drew attention to the need to enhance 
maritime cybersecurity and cyber data management, unmanned 
systems, establishing an artificial intelligence strategy. It 
also provided for numerous workforce related initiatives 
including efforts to improve the physical disability evaluation 
system, as well as childcare improvements and increases to the 
behavioral health programs.
    The CGAA of 2022 also provided for several aspects of 
vessel safety including implementation of National 
Transportation Safety Board (NTSB) recommendations, regulation 
of DUKW amphibious passenger vessels, application of provisions 
relating to historic wood sailing vessels, and specified the 
watch manning requirements of articulated tug-barges. It also 
mandated that the Coast Guard take steps toward an electronic 
merchant mariner licensing and documentation system and 
includes the Military to Mariners Act of 2022 to streamline how 
sea hours and other credentials obtained in the military can be 
carried over to commercial service. Several provisions 
incorporated language from the Safer Seas Act to better respond 
to sexual assault and sexual harassment in the commercial 
maritime industry and to bar those convicted of either crime 
from having a mariners license or certificate of register. It 
also sought to understand the impact of alcohol consumption and 
possession by crew engaged in commercial service, among many 
other sections impacting commercial shipping.

                V. COAST GUARD AUTHORIZATION ACT OF 2025

    The CGAA of 2025 was included within the National Defense 
Authorization Act of Fiscal Year 2026, which was signed into 
law by President Trump on December 18, 2025.\17\ The bill 
authorizes appropriations for the Coast Guard through Fiscal 
Year 2027, and seeks to build on the Coast Guard's 
modernization effort, import accountability measures to ensure 
the Service is a responsive and good steward of taxpayer 
dollars, and ensure the Service is equipped to meet its mission 
needs.
---------------------------------------------------------------------------
    \17\ National Defense Authorization Act for Fiscal Year 2026, Pub. 
L. 119-60, 139 Stat. 718.
---------------------------------------------------------------------------
    Additional background information on the Coast Guard's 
implementation of CGAA of 2025 provisions is included in 
Appendix A.

AUTHORIZATION OF APPROPRIATIONS, ACCOUNTABILITY, AND GROWTH

    The CGAA of 2025 authorizes appropriations for the 
Operations and Support, and Procurement and Investment Accounts 
through Fiscal Year 2027.\18\ These authorized funds are 
sufficient to begin ramping up the Coast Guard's work force to 
maintain and crew assets being purchased with reconciliation 
funds, as well as to hire a sufficient maritime safety 
workforce.
---------------------------------------------------------------------------
    \18\ Id.
---------------------------------------------------------------------------
    The bill authorizes 50,000 active-duty personnel for the 
Coast Guard for Fiscal Year 2026 and 55,000 for Fiscal Year 
2027 following a demonstration that the Administration's Budget 
supports that strength level. While the Fiscal Year 2027 House 
Appropriations mark included a growth in the Service's 
operations account to support a workforce expansion, the levels 
for the Coast Guard's Procurement, Investment and Construction 
account were below authorized levels, raising concerns about 
the long-term sustainability of expanding the Service.
    The bill further imposes accountability requirements on the 
Coast Guard, specifically relating to homeporting and 
acquisition planning. In the past, surface acquisition projects 
have been delayed and over budget. In just the last twelve 
months, the Coast Guard has canceled contracts for one National 
Security Cutter and two Offshore Patrol Cutters.\19\ The CGAA 
of 2025's accountability requirements aim to improve the Coast 
Guard's execution of its acquisition projects.
---------------------------------------------------------------------------
    \19\ Press Release, U.S. Dep't of Homeland Security, Secretary Noem 
Protects American Taxpayers Against Wasteful Contracts While 
Revolutionizing Coast Guard for the 21st Century, (July 11, 2025), 
available at https://www.dhs.gov/news/2025/07/11/secretary-noem-
protects-american-taxpayers-against-wasteful-contracts-while.
---------------------------------------------------------------------------

UPDATE OF AUTHORITIES

    The CGAA of 2025 updates the Service's authorities and 
provides structural changes to the administration of the Coast 
Guard, including the rolls and functions of flag officers. 
While the Coast Guard has updated its organizational roles and 
leadership, it is unclear how those changes reflect 
requirements within the CGAA of 2025.
    The measure also updates acquisition authorities, including 
providing additional authority to select shipbuilders with 
demonstrated experience rather than relying on the lowest bid.

SHIPPING AND NAVIGATION LAWS

    The bill updates authorities related to shipping and 
navigation laws, including those for the inspection of certain 
vessels and authorities related to unmanned systems. The 
Subcommittee needs clarity on the Coast Guard's plan to bring 
unmanned assets online, as well as how civilian autonomous 
assets will ultimately be regulated. Additionally, the bill 
contains provisions to boost the pool of qualified United 
States mariners by reducing bureaucratic delays and barriers to 
Americans seeking a seagoing career.

RESPONSE TO OPERATION FOULED ANCHOR

    Operation Fouled Anchor was a Coast Guard investigation 
initiated in 2014 that revealed incidents of rape, assault, and 
other misconduct at the Coast Guard Academy (Academy) occurring 
from 1990 until 2006.\20\ The report uncovered a repeated 
pattern of mishandling cases and failure to hold perpetrators 
accountable, in part driven by efforts to protect the 
reputation of the Academy.\21\ Furthermore, the Committee's 
investigation revealed broken processes that failed to properly 
track decision making with regards to prosecutorial decisions.
---------------------------------------------------------------------------
    \20\ U.S. Coast Guard, ``Fouled Anchor'' Investigation--Final 
Report (Jan. 31, 2020), available at https://www.uscg.mil/Portals/0/
documents/FOULED_ANCHOR_
INVESTIGATION_FINAL_REPORT_AND_ENCLOSURE-508Compliant.pdf.
    \21\ Id.
---------------------------------------------------------------------------
    Despite the Committee's demonstrated interest in curbing 
sexual assault and sexual harassment, the Coast Guard chose to 
withhold the report from Congress. Even worse, the decision to 
bury the report resulted in a failure to implement the 
recommendations from Operation Fouled Anchor. The bill provides 
additional authorities to the Coast Guard to protect its 
servicemembers, aligns Coast Guard practices with the practices 
of other military services, and mandates additional 
transparency and accountability as the actions are implemented.

                         VI. FORCE DESIGN 2028

    Force Design 2028 is the Coast Guard's modernization effort 
to prepare the Service to meet the Nation's future needs. On 
May 21, 2025, then-Secretary Noem provided an Executive Report 
on Force Design 2028, which outlined the key pillars of the 
plan: \22\
---------------------------------------------------------------------------
    \22\ U.S. Coast Guard: Force Design 2028 Executive Report (2026), 
available at https://media.defense.gov/2025/May/27/2003724531/-1/-1/0/
REPORT%20-%20FD28%20EXECUTIVE
%20REPORT%20_1166_V14.PDF.

    1) LService Secretary. Establishing a Coast Guard Service 
Secretary who 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) LOrganization. Agency reorganization that serves to 
streamline processes, eliminate redundancies, and empower 
decision making at all levels. In particular, this includes 
creating Program Executive Offices to consolidate acquisition 
and sustainment for key fields, establishing a Deployable 
Specialized Force command to ensure integration and readiness, 
and to strengthen the Coast Guard Cyber Command.

    3) LPeople. Investing in people, including modernizing the 
workforce and the systems that manage personnel, revitalizing 
the Reserves, and investing in the Officer Corps. This includes 
maximizing accession points and looking at new locations to 
increase training and accessions.

    4) LTechnology. Investing in technology to improve maritime 
surveillance, replacing antiquated technology merchant mariners 
rely on, and improving the Service's logistics and human 
resources.

    5) LContracting and Acquisition. Improve and streamline 
acquisition processes to improve efficiency and accountability.

    To date, the Coast Guard has undertaken several actions to 
begin implementation of the plan. This includes growing the 
workforce by over 1,100 positions, realigning 68 percent of 
positions across Coast Guard headquarters, including re-
establishing the position of a Chief of Staff, and the 
realignment of the top acquisition positions.\23\ The Service 
has also revised the physical fitness assessment, and provided 
local Commanders with increased discretion to maintain good 
order and discipline. The plan also calls for investments in 
housing and quality of life issues for servicemembers. In an 
effort to grow the Service, the Coast Guard also purchased an 
additional training center in Montgomery, Alabama, with the 
intent of shuffling certain training out of other facilities to 
free up spaces and to consolidate certain levels of training in 
Alabama.\24\ These lines of effort will require additional 
funding beyond reconciliation, especially, aspirations to grow 
the Service by an additional 10,000-15,000 service members. 
This will necessitate substantial growth in annual operational 
budgets.
---------------------------------------------------------------------------
    \23\ Id.
    \24\ Id.
---------------------------------------------------------------------------
    The Service is leveraging reconciliation investments to 
enhance capabilities through new cutters and aircraft. Force 
Design 2028 compliments this effort through acquisition 
reforms, along with a greater reliance on commercial off-the-
shelf technology, the establishment of a robotics and 
autonomous systems office, and the creation of a special 
operations command.\25\
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    \25\ Id.
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                             VII. WITNESSES

     LVice Admiral Douglas Schofield, Chief of Staff, 
United States Coast Guard
     LTriana McNeil, Director, Homeland Security and 
Justice Programs, Government Accountability Office

                              Appendix A:

 Status of Implementation of Provisions of the Coast Guard Authorization
                               Act of 2025
------------------------------------------------------------------------
          Due Date              Completed     Section      Section Name
------------------------------------------------------------------------
1/17/2026...................     1/28/2026         7201  TJAG/DJAG
                                                          IMPLEMENTATION
 
1/17/2026...................  ............         7247  STUDY ON COAST
                                                          GUARD ACADEMY
                                                          OVERSIGHT
 
1/17/2026...................  ............         7248  SUPERINTENDENT
                                                          TO ENSURE
                                                          ELECTRONIC
                                                          LOCK SYSTEMS
                                                          ARE WORKING
 
1/17/2026...................  ............         7273  RESPONSIBLE
                                                          PROPERTY
                                                          OWNERSHIP AND
                                                          TRACKING
 
1/17/2026...................  ............         7333  NOAA MEMBERSHIP
                                                          ON AUTONOMOUS
                                                          VESSEL POLICY
                                                          COUNCIL
 
2/16/2026...................  ............   7252(a)(1)  REVIEW AND
                                                          MODIFICATION
                                                          OF COAST GUARD
                                                          ACADEMY POLICY
                                                          ON SEXUAL
                                                          HARASSMENT AND
                                                          SEXUAL
                                                          VIOLENCE:
                                                          COMMENCE
                                                          REVIEW
 
2/16/2026...................  ............         7337  NATIONAL
                                                          ACADEMY OF
                                                          SCIENCES
                                                          REPORT ON
                                                          UNCREWED
                                                          SYSTEMS AND
                                                          USE OF DATA
 
2/16/2026...................  ............         7348  OFFSHORE
                                                          OPERATIONS--OI
                                                          L FUEL TANK
                                                          PROTECTION
 
2/16/2026...................  ............         7348  OFFSHORE
                                                          OPERATIONS--OU
                                                          TER
                                                          CONTINENTAL
                                                          SHELF
                                                          ACTIVITIES
 
2/16/2026...................  ............         7524  PARTICIPATION
                                                          IN CATCH A
                                                          SERIAL
                                                          OFFENDER
                                                          PROGRAM
 
2/16/2026...................  ............      7527(b)  COAST GUARD AND
                                                          COAST GUARD
                                                          ACADEMY ACCESS
                                                          TO DEFENSE
                                                          SEXUAL ASSAULT
                                                          INCIDENT
                                                          DATABASE:
                                                          Submit Plan
 
3/18/2026...................     4/20/2026         7268  REPORT ON AND
                                                          EXPANSION OF
                                                          COAST GUARD
                                                          JUNIOR RESERVE
                                                          OFFICERS'
                                                          TRAINING CORPS
                                                          PROGRAM
 
3/18/2026...................  ............         7275  PARENTAL LEAVE
                                                          SURGE STAFFING
                                                          PROGRAM
 
3/18/2026...................  ............         7278  TEMPORARY
                                                          INSTALLATION
                                                          OF RESTROOM
                                                          FACILITIES FOR
                                                          TRAINING
                                                          CENTER CAPE
                                                          MAY MEDICAL
                                                          FACILITY
 
3/18/2026...................  ............      7321(a)  PORTS AND
                                                          WATERWAYS
                                                          SAFETY
 
3/18/2026...................  ............         7511  SAFE TO REPORT
                                                          POLICY FOR THE
                                                          COAST GUARD
 
3/18/2026...................  ............         7511  ACCOUNTABILITY
                                                          AND
                                                          TRANSPARENCY
                                                          RELATING TO
                                                          ALLEGATIONS OF
                                                          MISCONDUCT
                                                          AGAINST SENIOR
                                                          LEADERS
 
3/18/2026...................  ............         7511  REPORT ON
                                                          INCIDENTS OF
                                                          COVERED
                                                          MISCONDUCT
 
3/18/2026...................        2/2026         7116  OVERSIGHT OF
                                                          FUNDS
 
4/17/2026...................  ............         7233  TUITION
                                                          ASSISTANCE AND
                                                          ADVANCED
                                                          EDUCATION
                                                          ASSISTANCE
                                                          PILOT PROGRAM
 
4/17/2026...................  ............         7513  FLAG OFFICER
                                                          REVIEW OF, AND
                                                          CONCURRENCE
                                                          IN, SEPARATION
                                                          OF MEMBERS WHO
                                                          HAVE REPORTED
                                                          COVERED
                                                          MISCONDUCT
 
6/16/2026...................  ............         7111  INITIAL
                                                          HOMEPORTING
                                                          PROGRESS
                                                          REPORT
 
6/16/2026...................  ............         7118  ANNUAL PLAN FOR
                                                          COAST GUARD
                                                          OPERATIONS IN
                                                          THE PACIFIC;
                                                          FEASIBILITY
                                                          STUDY ON
                                                          SUPPORTING
                                                          ADDITIONAL
                                                          PORT VISITS
                                                          AND
                                                          DEPLOYMENTS IN
                                                          SUPPORT OF
                                                          OPERATION BLUE
                                                          PACIFIC
 
6/16/2026...................  ............      7224(b)  MODIFICATIONS
                                                          AND REVISIONS
                                                          RELATING TO
                                                          REOPENING
                                                          RETIRED GRADE
                                                          DETERMINATIONS
                                                          : ISSUANCE AND
                                                          REVISION OF
                                                          REGULATIONS
                                                          RELATING TO
                                                          GOOD CAUSE TO
                                                          REOPEN RETIRED
                                                          GRADE
                                                          DETERMINATIONS
 
6/16/2026...................  ............      7224(c)  MODIFICATIONS
                                                          AND REVISIONS
                                                          RELATING TO
                                                          REOPENING
                                                          RETIRED GRADE
                                                          DETERMINATIONS
                                                          : REVISION OF
                                                          LIMITATIONS ON
                                                          REOPENING
                                                          RETIRED GRADE
                                                          DETERMINATIONS
 
6/16/2026...................  ............      7231(b)  BEHAVIORAL
                                                          HEALTH:
                                                          Behavioral
                                                          Health
                                                          Specialist (5)
 
6/16/2026...................  ............   7231(b)(4)  BEHAVIORAL
                                                          HEALTH--notice
                                                          if has not
                                                          completed
                                                          hiring,
                                                          training,
                                                          deploying
 
6/16/2026...................  ............   7252(a)(2)  REVIEW AND
                                                          MODIFICATION
                                                          OF COAST GUARD
                                                          ACADEMY POLICY
                                                          ON SEXUAL
                                                          HARASSMENT AND
                                                          SEXUAL
                                                          VIOLENCE:
                                                          Complete
 
6/16/2026...................  ............         7263  PLAN FOR JOINT
                                                          AND INTEGRATED
                                                          MARITIME
                                                          OPERATIONAL
                                                          AND LEADERSHIP
                                                          TRAINING FOR
                                                          UNITED STATES
                                                          COAST GUARD
                                                          AND TAIWAN
                                                          COAST GUARD
                                                          ADMINISTRATION
 
6/16/2026...................  ............         7264  AIDS TO
                                                          NAVIGATION
 
6/16/2026...................  ............         7265  STUDY AND GAP
                                                          ANALYSIS WITH
                                                          RESPECT TO
                                                          COAST GUARD
                                                          AIR STATION
                                                          CORPUS CHRISTI
                                                          AVIATION
                                                          HANGER
 
6/16/2026...................  ............         7266  REPORT ON
                                                          IMPACTS OF
                                                          JOINT TRAVEL
                                                          REGULATIONS ON
                                                          MEMBERS OF
                                                          COAST GUARD
                                                          WHO RELY ON
                                                          FERRY SYSTEMS
 
6/16/2026...................  ............         7274  STUDY ON
                                                          EFFECTS OF
                                                          OCEANOGRAPHIC,
                                                          WEATHER, AND
                                                          COASTAL
                                                          CONDITIONS ON
                                                          COAST GUARD
                                                          MISSIONS
 
6/16/2026...................  ............         7336  MEDIUM UNMANNED
                                                          AIRCRAFT
                                                          SYSTEMS
                                                          CAPABILITIES
                                                          STUDY
 
6/16/2026...................  ............         7407  INTERNATIONAL
                                                          MARITIME OIL
                                                          SPILL RESPONSE
 
6/16/2026...................  ............         7502  COAST GUARD
                                                          IMPLEMENTATION
                                                          OF INDEPENDENT
                                                          REVIEW
                                                          COMMISSION
                                                          RECOMMENDATION
                                                          S ON
                                                          ADDRESSING
                                                          SEXUAL ASSAULT
                                                          AND SEXUAL
                                                          HARASSMENT IN
                                                          THE MILITARY
 
6/16/2026...................  ............         7512  POLICY RELATING
                                                          TO CARE AND
                                                          SUPPORT OF
                                                          VICTIMS OF
                                                          COVERED
                                                          MISCONDUCT
 
6/16/2026...................  ............         7514  POLICY AND
                                                          PROGRAM TO
                                                          EXPAND
                                                          PREVENTION OF
                                                          SEXUAL
                                                          MISCONDUCT
 
6/16/2026...................  ............         7522  DEVELOPMENT OF
                                                          POLICIES ON
                                                          MILITARY
                                                          PROTECTIVE
                                                          ORDERS.
 
6/16/2026...................  ............      7527(a)  COAST GUARD AND
                                                          COAST GUARD
                                                          ACADEMY ACCESS
                                                          TO DEFENSE
                                                          SEXUAL ASSAULT
                                                          INCIDENT
                                                          DATABASE: MOU
 
6/16/2026...................  ............         7529  ACCESS TO
                                                          TEMPORARY
                                                          SEPARATION
                                                          PROGRAM FOR
                                                          VICTIMS OF
                                                          ALLEGED SEX-
                                                          RELATED
                                                          OFFENSES
 
9/14/2026...................  ............      7231(a)  BEHAVIORAL
                                                          HEALTH:
                                                          ESTABLISH
                                                          PILOT PROGRAM
 
9/14/2026...................  ............         7301  MERCHANT
                                                          MARINER
                                                          CREDENTIALING:
                                                          REQUIREMENTS
                                                          OF MM
                                                          CREDENTIUALING
                                                          SYSTEM
 
12/18/2026..................  ............         7205  PREPAREDNESS
                                                          PLANS FOR
                                                          COAST GUARD
                                                          PROPERTIES
                                                          LOCATED IN
                                                          TSUNAMI
                                                          INUNDATION
                                                          ZONES.
 
12/18/2026..................  ............      7248(c)  Electronic
                                                          Locking
                                                          Mechanisms to
                                                          Ensure Coast
                                                          Guard Academy
                                                          Cadet Room
                                                          Security:
                                                          Superintendent
                                                          create Access
                                                          Policy
                                                          Instruction
 
12/18/2026..................  ............         7261  POLICY AND
                                                          BRIEFING ON
                                                          AVAILABILITY
                                                          OF NALOXONE TO
                                                          TREAT OPIOID,
                                                          INCLUDING
                                                          FENTANYL,
                                                          OVERDOSES.
 
12/18/2026..................  ............         7262  POLICY ON
                                                          METHODS TO
                                                          REDUCE
                                                          INCENTIVES FOR
                                                          ILLICIT
                                                          MARITIME DRUG
                                                          TRAFFICKING
 
12/18/2026..................  ............         7315  REQUIREMENT TO
                                                          REPORT SEXUAL
                                                          OFFENSES
 
12/18/2026..................  ............         7323  IMPROVING
                                                          VESSEL TRAFFIC
                                                          SERVICE
                                                          MONITORING
 
12/18/2026..................  ............         7347  ABANDONED AND
                                                          DERELICT
                                                          VESSEL
                                                          REMOVALS
 
12/18/2026..................  ............         7349  PORT ACCESS
                                                          ROUTES
 
12/18/2026..................  ............         7511  COMPREHENSIVE
                                                          POLICY ON
                                                          COVERED
                                                          MISCONDUCT
 
12/18/2026..................  ............      7515(b)  TRAINING AND
                                                          EDUCATION
                                                          PROGRAMS FOR
                                                          COVERED
                                                          MISCONDUCT
                                                          PREVENTION AND
                                                          RESPONSE:
                                                          COVERED
                                                          MISCONDUCT
                                                          PREVENTION AND
                                                          RESPONSE
                                                          TRAINING AND
                                                          EDUCATION
 
12/18/2026..................  ............      7515(e)  TRAINING AND
                                                          EDUCATION
                                                          PROGRAMS FOR
                                                          COVERED
                                                          MISCONDUCT
                                                          PREVENTION AND
                                                          RESPONSE:
                                                          ENTRY AND
                                                          ACCESSION
                                                          TRAININGS
 
6/11/2027...................  ............         7342  CLARIFICATION
                                                          OF AUTHORITIES
 
6/11/2027...................  ............     7515 (d)  TRAINING AND
                                                          EDUCATION
                                                          PROGRAMS FOR
                                                          COVERED
                                                          MISCONDUCT
                                                          PREVENTION AND
                                                          RESPONSE:
                                                          TRAINING FOR
                                                          PROSPECTIVE
                                                          COMMANDING
                                                          OFFICERS AND
                                                          EXECUTIVE
                                                          OFFICERS
 
12/18/2027..................  ............      7248(a)  ELECTRONIC
                                                          LOCKING
                                                          MECHANISMS TO
                                                          ENSURE COAST
                                                          GUARD ACADEMY
                                                          CADET ROOM
                                                          SECURITY
 
12/18/2027..................  ............         7251  INSTALLATION OF
                                                          BEHAVIORAL
                                                          HEALTH AND
                                                          MEDICAL
                                                          PRIVACY ROOMS
 
12/18/2027..................  ............         7326  NAVIGATIONAL
                                                          PROTOCOLS
 
12/18/2027..................  ............   7515(a)(1)  TRAINING AND
                                                          EDUCATION
                                                          PROGRAMS FOR
                                                          COVERED
                                                          MISCONDUCT
                                                          PREVENTION AND
                                                          RESPONSE:
                                                          Revise
                                                          curriculum
 
12/18/2027..................  ............      7515(c)  TRAINING AND
                                                          EDUCATION
                                                          PROGRAMS FOR
                                                          COVERED
                                                          MISCONDUCT
                                                          PREVENTION AND
                                                          RESPONSE:
                                                          COVERED FIRST
                                                          RESPONDER
                                                          TRAINING
 
12/18/2027..................  ............     7321 (g)  PORTS AND
                                                          WATERWAYS
                                                          SAFETY: GREAT
                                                          LAKES AND
                                                          SAINT LAWRENCE
                                                          RIVER
                                                          COOPERATIVE
                                                          VESSEL TRAFFIC
                                                          SERVICE
------------------------------------------------------------------------
 
TAKING ACCOUNT: IMPLEMENTATION OF THE COAST GUARD AUTHORIZATION ACT OF 
              2025, RECONCILIATION, AND FORCE DESIGN 2028

                              ----------                              


                         TUESDAY, JUNE 30, 2026

                  House of Representatives,
                    Subcommittee on Coast Guard and
                           Maritime Transportation,
            Committee on Transportation and Infrastructure,
                                                    Washington, DC.
    The subcommittee met, pursuant to call, at 10 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 the purpose of an opening 
statement for 5 minutes.

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

    Mr. Ezell. Today, we discuss the Coast Guard's progress 
towards implementing the Coast Guard Authorization Act of 2025, 
as well as the One Big Beautiful Bill Act of 2025.
    First, I would like to welcome our witnesses, Vice Admiral 
Schofield, Chief of Staff, the United States Coast Guard; and 
Ms. Triana McNeil, Director of Homeland Security and Justice 
Programs at the Government Accountability Office.
    I understand that, both of you, it is your first time 
testifying today before the subcommittee. I appreciate you 
being here very much, and it will be a good hearing. I look 
forward to your testimony.
    The Coast Guard is a military service that performs a 
comprehensive set of safety, lifesaving, law enforcement, and 
national security missions. The Service's activities benefit 
and safeguard recreational boaters, commercial vessel 
operators, and commercial fishing. The general public benefits 
from the Coast Guard personnel who bravely and selflessly carry 
out duties that save lives, enforce the law, battle 
transnational criminal enterprises, and protect the national 
security and territorial integrity of the United States. They 
perform all of these functions exceptionally well, especially 
in light of the fact that the Service is an organization that 
is chronically underresourced.
    The One Big Beautiful Bill Act was a historic $25 billion 
investment in the Coast Guard. It represents an effort to clear 
the way for the Coast Guard to recapitalize its dilapidated 
shoreside, surface, and air assets, and to create a 21st-
century Service capable of meeting the 21st-century challenges 
and threats. The bill provides for the equivalent of a 
staggering 15 years' worth of annual procurement funding, and 
it is the largest single investment in the Coast Guard's 
history.
    The Coast Guard has obligated a large portion of these 
funds provided by the law. This committee and Congress have a 
responsibility to ensure the dollars entrusted to the Coast 
Guard are being spent responsibly and as they were intended. To 
do that, we require clarity on where the assets being procured 
will be homeported and how the Coast Guard plans to build the 
shoreside infrastructure necessary to sustain them. 
Importantly, this includes sufficient housing and related 
facilities for the Coast Guard members who will crew these 
platforms.
    The Coast Guard Authorization Act of 2025 authorizes 
appropriations for numerous assets, including the 12th National 
Security Cutter, three Fast Response Cutters, a commercial 
icebreaker, and the Arctic Security Cutter Program, including 
evaluating foreign shipyards in Finland and Sweden. Both bills 
also establish accountability measures to ensure the Service is 
responsive to congressional direction and is acting as a good 
steward of taxpayer dollars.
    Beyond these accountability measures, the bill also 
authorizes appropriations for operations and support, and 
procurement and investment accounts through fiscal year 2027, 
at amounts sufficient for the Coast Guard to begin increasing 
the number of uniformed and civilian personnel needed to 
maintain the assets purchased with reconciliation funds, as 
well as to hire a sufficient maritime safety workforce. The 
legislation also takes measures to ensure that members needed 
to serve on these assets have sufficient healthcare and 
childcare.
    The Coast Guard Authorization Act of 2025 imposes needed 
accountability requirements related to homeporting and 
maintenance, and acquisition planning, a longstanding issue for 
the Coast Guard. We are concerned that the Service's apparent 
lack of planning puts not just modernization efforts, but also 
mission accomplishment in jeopardy. We are interested in 
learning today how the Coast Guard will meet these 
accountability requirements.
    Coast Guard modernization efforts are taking place under 
the architecture of the Force Design 2028 plan, which envisions 
a comprehensive overhaul of the Service's leadership, 
organization, technology, and contracting and acquisition 
process.
    So far, the Coast Guard has undertaken several actions to 
begin implementation of Force Design 2028, including growing 
the workforce by over 1,100 positions, realigning 68 percent of 
positions across the Coast Guard headquarters, and realigning 
the Service's top acquisitions projects. To help meet the goals 
of future personnel growth, the Coast Guard has also purchased 
an additional training center in Birmingham, Alabama.
    Today's hearing provides a forum to articulate where the 
Coast Guard is in pursuing the goals of Force Design 2028 and 
the path to successfully and completely implement all its 
objectives.
    The Government Accountability Office has carefully and 
extensively examined Coast Guard programs and management 
practices over the years. They bring an important perspective 
to the discussion about what proper stewardship of appropriated 
funds and responsible planning and administration of a large 
Government agency should look like. I will be listening with a 
keen ear to the points Ms. McNeil makes and any recommendations 
she has.
    Finally, I would be remiss if I did not take this 
opportunity once again to state that the Coast Guard has failed 
to provide the committee with statutorily required long-term 
acquisition planning documents for years on end. This 
persistent failure to meet legally mandated reporting 
requirements raises serious concerns about whether the Service 
is making appropriate spending decisions.
    Congress recognizes the value the Coast Guard delivers and 
wants the Service to reach its fullest potential. The continued 
growth and investment of the Coast Guard is contingent upon 
continued investment in the Service by Congress. Clearer 
transparency and meaningful accountability of how the Coast 
Guard is setting its priorities, allocating its resources, and 
truly planning for its immediate and future needs are key to 
maintaining the levels of congressional support necessary for 
the organization to continue to grow and meet all the demands 
for its services.
    Lastly, I want to recognize two staff members who will soon 
be departing the subcommittee. Lieutenant Commander Lindsay 
Sakal served as the subcommittee's Coast Guard fellow over the 
last year. She left her mark on the subcommittee, helping to 
strengthen the Service and providing expert legal analysis. The 
subcommittee's legal assistant, Spencer Thompson, is also 
departing to pursue an aviation career after multiple 
subcommittee internships and nearly 2 years on the subcommittee 
where he supported the passage of the Coast Guard's 
reconciliation investments and the Coast Guard Authorization 
Act of 2025. To both of you, I wish you the best of luck in 
future endeavors.
    [Mr. Ezell's prepared statement follows:]

                                 
    Prepared Statement of Hon. Mike Ezell of Mississippi, Chairman, 
        Subcommittee on Coast Guard and Maritime Transportation
    The Coast Guard is a military service that performs a comprehensive 
set of safety, lifesaving, law enforcement, and national security 
missions. The Service's activities benefit and safeguard recreational 
boaters, commercial vessel operators, and commercial fishing. The 
general public benefits from Coast Guard personnel who bravely and 
selflessly carry out duties that save lives, enforce the law, battle 
transnational criminal enterprises, and protect the national security 
and territorial integrity of the United States. They perform all these 
functions exceptionally well, especially in light of the fact the 
Service is an organization that is chronically under-resourced.
    The One Big Beautiful Bill Act was a historic $25 billion 
investment in the Coast Guard. It represents an effort to clear the way 
for the Coast Guard to recapitalize its dilapidated shoreside, surface, 
and air assets and to create a 21st-century Service capable of meeting 
21st-century challenges and threats. The bill provides for the 
equivalent of a staggering 15 years' worth of annual procurement 
funding, and it is the largest single investment in the Coast Guard's 
history.
    The Coast Guard has obligated a large portion of the funds provided 
by the law. This committee and Congress have a responsibility to ensure 
the dollars entrusted to the Coast Guard are being spent responsibly 
and as they were intended. To do that, we require clarity on where the 
assets being procured will be homeported and how the Coast Guard plans 
to build the shoreside infrastructure necessary to sustain them. 
Importantly, this includes sufficient housing and related facilities 
for the Coast Guard members who will crew these platforms.
    The Coast Guard Authorization Act of 2025 authorizes appropriations 
for numerous assets, including the twelfth National Security Cutter, 
three Fast Response Cutters, a commercial icebreaker, and the Arctic 
Security Cutter program, including evaluating foreign shipyards in 
Finland and Sweden. Both bills also establish accountability measures 
to ensure the Service is responsive to Congressional direction and is 
acting as a good steward of taxpayer dollars.
    Beyond these accountability measures, the bill also authorizes 
appropriations for the operations and support, and procurement and 
investment accounts through fiscal year 2027, at amounts sufficient for 
the Coast Guard to begin increasing the number of uniformed and 
civilian personnel needed to maintain the assets purchased with 
reconciliation funds, as well as to hire a sufficient maritime safety 
workforce. The legislation also takes measures to ensure the members 
needed to serve on these assets have sufficient healthcare and 
childcare.
    The Coast Guard Authorization Act of 2025 imposes needed 
accountability requirements related to homeporting and maintenance, and 
acquisition planning, a longstanding issue for the Coast Guard. We are 
concerned that the Service's apparent lack of planning puts not just 
modernization efforts, but also mission accomplishment in jeopardy. We 
are interested in learning today how the Coast Guard will meet these 
accountability requirements.
    Coast Guard modernization efforts are taking place under the 
architecture of the Force Design 2028 plan, which envisions a 
comprehensive overhaul of the Service's leadership, organization, 
technology, and contracting and acquisition processes.
    So far, the Coast Guard has undertaken several actions to begin 
implementation of Force Design 2028, including growing the workforce by 
over 1,100 positions, realigning 68 percent of positions across Coast 
Guard headquarters, and realigning the Service's top acquisitions 
projects. To help meet the goals of future personnel growth, the Coast 
Guard has also purchased an additional training center in Birmingham, 
Alabama.
    Today's hearing provides a forum to articulate where the Coast 
Guard is in pursuing the goals of Force Design 2028 and the path to 
successfully and completely implement all its objectives.
    The Government Accountability Office has carefully and extensively 
examined Coast Guard programs and management practices over the years. 
They bring an important perspective to the discussion about what proper 
stewardship of appropriated funds and responsible planning and 
administration of a large government agency should look like. I will be 
listening with a keen ear to the points Ms. McNeil makes and to any 
recommendations she has.
    Finally, I would be remiss if I did not take this opportunity to 
once again state that the Coast Guard has failed to provide the 
Committee with statutorily required long-term acquisition planning 
documents for years on end. This persistent failure to meet legally 
mandated reporting requirements raises serious concerns about whether 
the Service is making appropriate spending decisions.
    Congress recognizes the value the Coast Guard delivers and wants 
the Service to reach its fullest potential. The continued growth and 
investment of the Coast Guard is contingent upon continued investment 
in the Service by Congress. Clearer transparency and meaningful 
accountability of how the Coast Guard is setting its priorities, 
allocating its resources, and truly planning for its immediate and 
future needs are key to maintaining the levels of Congressional support 
necessary for the organization to continue to grow and meet all the 
demands for its services.

    Mr. Ezell. I now recognize Ranking Member Carbajal for 5 
minutes for an opening statement.
    Mr. Carbajal. Thank you, Chairman Ezell. I will yield to 
our ranking member, Mr. Larsen.
    Mr. Ezell. Mr. Larsen, go ahead.

 OPENING STATEMENT OF HON. RICK LARSEN OF WASHINGTON, RANKING 
     MEMBER, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

    Mr. Larsen of Washington. Thank you, Chair Ezell and 
Ranking Member Carbajal, for holding this hearing to examine 
the significant changes underway at the Coast Guard.
    Congressional oversight is more important than ever as the 
Coast Guard undergoes transformational change as a result of 
recent authorizations, reconciliation funding, and the Force 
Design 2028.
    I want to thank our witnesses, Vice Admiral Douglas 
Schofield and Ms. Triana McNeil, for being here today to 
discuss the Coast Guard's successes and challenges in 
implementing recently enacted laws and in obligating the 
funding from reconciliation.
    Despite these investments in the reconciliation bill, GAO 
reports that the Coast Guard is not only falling behind its 
acquisition and procurement targets, but has made operational 
decisions that have actively harmed its ability to carry out 
essential duties.
    A couple of points I want to make.
    It is unacceptable that the Coast Guard has not yet 
restored the dozens of stations that have been closed or 
downgraded since 2024. These closures have reduced the agency's 
ability to effectively conduct search and rescue operations 
across our country, a decision with life-or-death consequences. 
A 2025 GAO report found that, due to personnel shortages, the 
Coast Guard closed 23 seasonal boat stations and reduced SAR 
coverage associated with 19 other stations. This reduced SAR 
capability has put a strain on local first responders.
    The Commandant has said that the Coast Guard search and 
rescue mission represents a sacred trust with the American 
people. The agency must prioritize using its new resources and 
servicemembers to restore that sacred trust. A question I will 
have when we get to questions is, when is the Coast Guard going 
to reconstitute 42 search and rescue-focused stations?
    I am also concerned the administration is going to 
negatively impact the Coast Guard's efforts to curb sexual 
assault, sexual harassment, and harassment. While I believe the 
Commandant is truly invested in this issue, the 
administration's decision to shutter the Women's Leadership 
Initiative, the Federally Employed Women, and Women's 
Leadership Council, all that limits the voice of women in the 
Service--the very people whose input is needed when developing 
policies to combat sexual assault and sexual harassment.
    Congress enacted dozens of reforms in response to Operation 
Fouled Anchor, which revealed flagrant and negligent 
mishandling of sexual assault and sexual harassment cases 
involving Coast Guard personnel. Some of these reforms include 
expedited transfers for victims and survivors, updating the 
process for obtaining protective orders, and establishing a 
confidential reporting system. The women and men of the Coast 
Guard deserve the immediate and complete implementation of 
these reforms as we work to eliminate sexual assault and 
harassment from the Service.
    I do want to acknowledge the Coast Guard has had success in 
implementing parts of recent authorizations, and something near 
and dear to the Pacific Northwest is in the 2022 Coast Guard 
Authorization Act that authorized the creation of a whale desk 
traffic alert system in our State, a new program to protect 
orcas and other marine life from vessel strikes by providing 
operators and mariners with near real-time location data.
    The program has been a success in my home State, allowing 
for safer maritime operations and reductions in noise pollution 
around whales. I am pleased that Congress reauthorized this 
program, but with a recent whale strike in Alaska, we need to 
look forward to working with the Coast Guard to expand it to 
other regions.
    I look forward to engaging with our witnesses on the 
progress the Coast Guard is making to modernize the 
organization and ensure that Coasties have the necessary 
funding, resources, and infrastructure to save lives, protect 
the American public, and to keep commerce flowing.
    Thank you, and I yield back.
    [Mr. Larsen of Washington's prepared statement follows:]

                                 
 Prepared Statement of Hon. Rick Larsen of Washington, Ranking Member, 
             Committee on Transportation and Infrastructure
    Thank you, Chairman Ezell and Ranking Member Carbajal, for holding 
this hearing to examine the significant changes underway at the Coast 
Guard.
    Congressional oversight is more important than ever as the Coast 
Guard undergoes transformational change as a result of recent 
authorizations, reconciliation funding, and Force Design 2028.
    I want to thank our witnesses, Vice Admiral Douglas Schofield and 
Ms. Triana McNeil, for being here today to discuss the Coast Guard's 
successes and challenges in implementing recently enacted laws and in 
obligating the funding from reconciliation.
    Despite these investments in the reconciliation bill, GAO reports 
the Coast Guard is not only falling behind its acquisition and 
procurement targets, but has made operational decisions that have 
actively harmed its ability to carry out essential duties.
    It is unacceptable that the Coast Guard has not yet restored the 
dozens of stations that have been closed or downgraded since 2024. 
These closures have reduced the agency's ability to effectively conduct 
search and rescue operations across our country, a decision with life-
or-death consequences.
    A 2025 GAO report found that due to personnel shortages, the Coast 
Guard closed 23 seasonal boat stations and reduced SAR coverage 
associated with 19 other stations.
    This reduced capability has also put a strain on local first 
responders.
    The Commandant has said that the Coast Guard's search and rescue 
mission represents a ``sacred trust with the American people.'' The 
agency must prioritize using its new resources and servicemembers to 
restore that sacred trust.
    A question I will have is when is the Coast Guard going to 
reconstitute the 42 search and rescue focused stations?
    I'm also concerned that the administration is going to negatively 
impact the Coast Guard's efforts to curb sexual assault, sexual 
harassment, and harassment.
    While I believe that the Commandant is truly invested in this 
issue, the administration's decision to shutter the Women's Leadership 
Initiative, Federally Employed Women, and the Women's Leadership 
Council all of that limits the voice of women in the Service--the very 
people whose input is needed when developing policies to combat sexual 
assault and sexual harassment.
    Congress enacted dozens of reforms in response to Operation Fouled 
Anchor, which revealed flagrant and negligent mishandlings of sexual 
assault and sexual harassments cases involving Coast Guard personnel. 
Some of these reforms include expedited transfers for victims and 
survivors, updating the process for obtaining protective orders, and 
establishing a confidential reporting system.
    The women and men of the Coast Guard deserve the immediate and 
complete implementation of these reforms as we work to eliminate sexual 
assault and harassment from the Service.
    I do want to acknowledge that the Coast Guard has had success in 
implementing parts of recent reauthorizations.
    For instance, the 2022 Coast Guard Authorization Act authorized the 
creation of a ``whale desk'' traffic alert system in Washington state, 
a new program to protect orcas and other marine life from vessel 
strikes by providing operators and mariners with near real-time 
location data.
    The program has been a success in my home state, allowing for safer 
maritime operations and reductions in noise pollution around whales.
    I am pleased that Congress reauthorized this program in the 2025 
Coast Guard Authorization Act and look forward to working with the 
Coast Guard to expand it to other regions to protect marine life.
    I look forward to engaging with our witnesses on the progress that 
the Coast Guard is making to modernize the organization and ensure that 
Coasties have the necessary funding, resources, and infrastructure to 
save lives, protect the American public, and keep commerce flowing.
    Thank you, and I yield back.

    Mr. Ezell. The gentleman yields. I would like now to 
welcome our witnesses.
    [Discussion off the record.]
    Mr. Ezell. Mr. Carbajal.

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

    Mr. Carbajal. Thank you, Chairman Ezell, and thank you to 
our two witnesses for being here today.
    Over the past year, we have spoken on many occasions about 
what reconciliation funding is going to do for the Coast Guard. 
Now that it is being spent, congressional oversight isn't just 
appropriate, it's necessary more than ever.
    I am glad that we are now talking about the implementation 
of policies and projects that have come out of prior Coast 
Guard authorizations, reconciliation, and the Commandant's 
vision for the Service. But I must say, it can be exceptionally 
frustrating when the agency refuses to be more transparent, 
sidesteps the law, or says one thing and does another.
    Let me give you an example. Congress gave you money to buy 
C-130s. We then found out from the press that, at the direction 
of the former Secretary of Homeland Security, you planned to 
purchase two shiny new G700 executive jets. When you came to 
brief Congress, you told us, don't worry, we are going to get 
reimbursed so we can buy and missionize six C-130s and purchase 
flight simulators.
    Secretary Noem left, and to my knowledge, you still have 
not been reimbursed.
    So, I will make my point again. Congressional oversight 
isn't just important, it is necessary.
    Now, I want to be clear. I support the Coast Guard, and I 
want to make sure the Service has the resources to fulfill its 
mission. That means more Coast Guard funding. I could not agree 
more with the current and former Commandant that you are 
currently a $20 billion Service and deserve that level of 
funding. I believe all of my colleagues on this subcommittee 
agree, but as Congress provides more funding and the size of 
the Service grows, the Coast Guard must remain accountable.
    Congress works, sometimes for years, on negotiating changes 
to the law based on issues or the needs of the Service. 
Unfortunately, we often have to revisit those laws because the 
Coast Guard deceptively changes regulations, implements 
incorrectly, or refuses to enforce altogether.
    Not only is this frustrating for Congress, but more 
importantly, this hurts the readiness and resiliency of the 
servicemembers who rely on steady, principled leadership to do 
their jobs. Proper oversight and meaningful legislative change 
depends on trust and transparency, and the Coast Guard needs to 
do better in this respect.
    As we move forward with today's hearing, I look forward to 
hearing an update from the Coast Guard on the implementation of 
my Small Passenger Vessel Safety Act. In the Elijah E. Cummings 
Coast Guard Authorization Act of 2020, Congress enacted my 
bill, the Small Passenger Vessel Safety Act, which included 
several changes that increased the safety of small passenger 
vessels. This legislation came following the tragic loss of 34 
lives when the motor vessel MV Conception caught fire off of my 
district. As a result, I have worked to ensure no family loses 
their loved one again in similar ways. And in the Don Young 
Coast Guard Authorization Act of 2022, I fought to ensure 
victims or their families, like the ones from the Conception 
boat fire, can recoup the damages they are owed when there is 
negligence.
    The last update I received from the Coast Guard is that the 
Service was working expeditiously to update regulations and 
enforce all but one requirement: updates to safety management 
systems. I look forward to hearing from the Coast Guard today 
about your efforts to complete full implementation of that law.
    As I conclude my remarks, I want to say that there is truly 
no organization like the Coast Guard in the world. Our country 
is undoubtedly safer because of their service. Every time we 
call on the Coast Guard, they have answered. I look forward to 
hearing from the Coast Guard on spending plans, policy changes, 
and policy implementation.
    With that, Mr. Chairman, I yield back.
    [Mr. Carbajal's prepared statement follows:]

                                 
  Prepared Statement of Hon. Salud O. Carbajal of California, Ranking 
    Member, Subcommittee on Coast Guard and Maritime Transportation
    Good morning, and thank you, Chair Ezell, for calling today's 
hearing.
    Over the past year, we have spoken on many occasions about what 
reconciliation funding is going to do for the Coast Guard. Now that 
you're spending it, Congressional oversight isn't just appropriate, 
it's necessary.
    I am glad that we are here to talk about the implementation of the 
policies and projects that have come out of prior Coast Guard 
Authorizations, reconciliation, and the Commandant's vision for the 
Service. But I must say that it can be exceptionally frustrating when 
the agency refuses to be transparent, sidesteps the law, or says one 
thing and does another.
    Let me give an example. Congress gave you money to buy C-130s. We 
then found out from the press that, at the direction of the former 
Secretary of Homeland Security, you planned to purchase two shiny new 
G700 executive jets. When you came to brief Congress, you told us, 
``Don't worry, we're going to get reimbursed so we can buy and 
missionize six C-130s and purchase flight simulators.''
    That Secretary left and you still haven't been reimbursed. 
Congressional oversight isn't just important, it's necessary.
    Now I want to be clear. I support more Coast Guard and that means 
more Coast Guard funding. I agree with the current and former 
Commandant that you are currently a $20 billion Service and deserve 
that level of funding.
    I believe all of my colleagues on this Subcommittee agree but as 
Congress provides more funding and the size of the Service grows, the 
Coast Guard must remain accountable.
    Congress works--sometimes for years--on negotiating changes to the 
law based on issues or the needs of the Service. Unfortunately, we 
often have to revisit those laws because the Coast Guard deceptively 
changes regulations, implements incorrectly, or refuses to enforce 
altogether.
    This can be frustrating for Congress but more importantly, it hurts 
the readiness and resiliency of servicemembers who rely on the steady 
principled leadership to do their jobs.
    Proper oversight and meaningful legislative change depends on trust 
and transparency, and the Coast Guard needs to do better.
    In the Elijah E. Cummings Coast Guard Authorization Act of 2020, 
Congress enacted my bill, the Small Passenger Vessel Safety Act, which 
included several changes that increased the safety of small passenger 
vessels. This legislation came following the tragic loss of 34 lives 
when the MV Conception caught fire. As a result, I have worked 
tirelessly to ensure no family loses their loved one in a similar way 
and, in the Don Young Coast Guard Authorization Act of 2022, ensured 
victims or their families can recoup the damages they are owed.
    Last, I heard that the Coast Guard was working expeditiously to 
update regulations and enforce all but one requirement: updates to 
safety management systems. I look forward to hearing from the Coast 
Guard today about their efforts to complete full implementation of that 
law.
    There truly is no organization like the Coast Guard in the world. 
Our country is undoubtedly safer because of their service. Every time 
we've called on them, they've answered.
    I look forward to hearing from the Coast Guard about spending 
plans, policy changes, and policy implementation.
    With that, I yield back.

    Mr. Ezell. The gentleman yields. I now want to welcome our 
witnesses today, and I want to thank you both for being here.
    Briefly, I would like to take a moment to explain our 
lighting system to our witnesses. There are three lights in 
front of you. Green means go, yellow means you are running out 
of time, and red means conclude your remarks.
    I ask unanimous consent that the witnesses' full statements 
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 witnesses have provided 
answers to any questions that may be submitted to them 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 witnesses 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 subcommittee asks that you limit your oral remarks to 5 
minutes.
    With that, Admiral Schofield, you are recognized for 5 
minutes for your testimony.

TESTIMONY OF VICE ADMIRAL DOUGLAS M. SCHOFIELD, CHIEF OF STAFF, 
    U.S. COAST GUARD; AND TRIANA McNEIL, DIRECTOR, HOMELAND 
  SECURITY AND JUSTICE, U.S. GOVERNMENT ACCOUNTABILITY OFFICE

TESTIMONY OF VICE ADMIRAL DOUGLAS M. SCHOFIELD, CHIEF OF STAFF, 
                        U.S. COAST GUARD

    Admiral Schofield. Chairman Ezell, Ranking Member Carbajal, 
and members of the subcommittee, thank you for the opportunity 
to testify today and for your continued support of the United 
States Coast Guard.
    The American people depend on the Coast Guard every day, 
and we deliver. We save lives; we control, secure, and defend 
the U.S. border and maritime approaches far at sea; we 
facilitate the safe and secure flow of commerce that relies on 
our ports, waterways, shipping, and merchant mariners vital to 
America's economic prosperity and national security; and we 
also respond to crises or contingencies that may come with 
little or no warning.
    We conduct these missions across four operational domains 
that make up the U.S. homeland: in the U.S. mainland, from the 
inland navigable waterways and Great Lakes along the U.S. 
border and its approaches, throughout the Caribbean and the 
Western Hemisphere, including the two U.S. Territories in the 
Caribbean; and Alaska and its approaches, including the Arctic; 
in Hawaii and the three U.S. Territories across the Pacific and 
their approaches, including remote areas of the U.S. exclusive 
economic zone and Oceania; and, importantly, in cyberspace.
    Today, the Nation is asking more of the Coast Guard than 
ever before. To meet this demand, we are transforming our 
Service to become a more agile, capable, and responsive force. 
This transformation rests on three foundational pillars, which 
we are here to discuss today: the Coast Guard Authorization 
Act; the historic funding provided in fiscal year 2025 budget 
reconciliation; and our blueprint for modernization, Force 
Design.
    First, the Coast Guard Authorization Act of 2025 provides 
the critical authorities we need to modernize and deliver 
results at speed and at scale. We are actively implementing its 
provisions, integrating new mandates, and strengthening our 
oversight. This law enhances transparency and enables us to 
deliver greater capability and accountability to the American 
people.
    Second, the nearly $25 billion provided by the fiscal year 
2025 reconciliation represents a historic and vital downpayment 
on the future of the United States Coast Guard. We are moving 
with a clear sense of urgency to turn this investment into 
capability. To date, we have obligated more than $14 billion to 
acquire new assets like the Arctic Security Cutters and 
Offshore Patrol Cutters, to modernize our aircraft, and to 
invest in our critical infrastructure. We are on target to 
obligate $20 billion by the end of this calendar year.
    However, I must be clear. While this investment is crucial, 
it is a downpayment, not the final payment. Without consistent, 
predictable, annual top-down line growth, our continued success 
and, importantly, our readiness, is at risk.
    We must continue to complete the acquisitions advanced by 
reconciliation, including the infrastructure required to 
support these assets and house Coast Guard families.
    Finally, Force Design is our blueprint to build the Coast 
Guard of the future. This is the most significant modernization 
effort undertaken in over a century. We are streamlining our 
organization to make faster decisions; we are investing in our 
people, our most valuable asset; and we are leveraging new 
technologies to extend the reach and effectiveness of our crews 
on the front lines.
    Thanks to the leadership of President Trump, Secretary 
Mullin, and Congress, the Coast Guard has a once-in-a-
generation opportunity to strengthen America's maritime 
advantage. The authorities provided by the Coast Guard 
Authorization Act, the historic investment made through 
reconciliation, and the transformational reforms of Force 
Design has put us on a clear path to build the Coast Guard the 
Nation needs. With your continued support, we will deliver the 
people, the capabilities, and infrastructure required to 
protect the American people, secure our maritime interests, and 
advance our Nation's prosperity in an increasingly contested 
maritime domain.
    Our history makes one thing clear: when America invests in 
the United States Coast Guard, the Coast Guard delivers.
    Thank you, and I look forward to questions.
    [Admiral Schofield's prepared statement follows:]

                                 
   Prepared Statement of Vice Admiral Douglas M. Schofield, Chief of 
                        Staff, U.S. Coast Guard
    Chairman Ezell, Ranking Member Carbajal, and distinguished Members 
of the Subcommittee, thank you for the opportunity to testify today and 
for your continued support of the United States Coast Guard.
    The American people depend on the Coast Guard every day, and we 
deliver. As a vital instrument of national power, the Coast Guard 
safeguards our nation's maritime interests both at home and abroad. 
Grounded in our operating doctrine, we execute our statutory missions 
to achieve four paramount national outcomes. We save lives. We control, 
secure, and defend the U.S. border and maritime approaches far at sea. 
We ensure the safe and secure flow of commerce through our ports and 
waterways. By supporting our shipping industry and merchant mariners, 
we fuel an economic engine critical to America's national security and 
prosperity, and to rebuilding the nation's maritime might. We respond 
to crises and contingencies that may come with little or no warning.
    We conduct these missions across four major operational domains 
that make up the U.S. homeland. Our forces maintain a persistent focus 
across the U.S. mainland, spanning our inland navigable waterways, the 
Great Lakes, our coastal borders, and throughout the Caribbean and 
Western Hemisphere, including the two U.S. Caribbean territories. We 
remain equally vigilant in Alaska and the Arctic. Our presence also 
extends across Hawai'i and the three U.S. Pacific territories, 
safeguarding the remote reaches of the U.S. Exclusive Economic Zone in 
Oceania. Concurrently, we operate in cyberspace, where the physical and 
digital domains increasingly converge.
    The nation is asking more of its Coast Guard than ever before. Our 
responsibility is to ensure we have the personnel, assets, and 
infrastructure required to meet that demand. We are modernizing and 
transforming the Service now to meet today's operational requirements 
while building the capacity, capability, and agility necessary for the 
future.
    This transformation is built upon three foundational pillars: the 
authorities and accountability measures provided by the Coast Guard 
Authorization Act of 2025; the historic funding provided by the Working 
Families Tax Cuts Act; and our comprehensive modernization blueprint, 
Force Design. Together, these efforts will build a more agile, capable, 
and responsive Coast Guard ready to protect, defend, and advance 
America's maritime interests.
     Coast Guard Authorization Act: Strengthening Authorities and 
                             Accountability
    The Coast Guard Authorization Act of 2025 provides critical 
authorities required to modernize the Service and deliver results at 
speed and scale. We are actively implementing these provisions while 
integrating new mandates and statutory requirements into our ongoing 
operations. This Act strengthens oversight, enhances transparency, and 
enables us to deliver greater capability, robust accountability, and 
maximum value to the American people.
   Reconciliation Funding: Delivering a Generational Recapitalization
    The nearly $25 billion provided by the Working Families Tax Cuts 
Act represents a historic investment in the Coast Guard and a critical 
down payment on the modernization of our fleet, aircraft, 
infrastructure, and operational capabilities. To date, we have 
obligated more than 13 billion dollars to acquire next-generation 
surface assets, including Arctic Security Cutters and Offshore Patrol 
Cutters; modernize aircraft and unmanned aviation systems; and invest 
in critical shoreside infrastructure. This effort goes far beyond 
replacing aging platforms; it expands our capacity and equips Coast 
Guard crews with the modern tools they need to succeed.
    With this historic investment comes an equally significant 
responsibility to execute it with discipline, transparency, and 
measurable results. We are demonstrating clear value to the American 
people by delivering the capabilities, infrastructure, and readiness 
improvements that this investment was intended to achieve. 
Recapitalization, however, is not a one-time event. Fully implementing 
Force Design and meeting the nation's growing demands will require 
sustained investment in order to complete critical acquisition 
programs, modernize infrastructure, invest in our workforce, and 
achieve the readiness required to operate and maintain these 
capabilities for decades to come.
            Force Design: Charting the Course for the Future
    Force Design is our blueprint to build a more agile, capable, and 
responsive force. It represents the most significant organizational 
modernization effort undertaken by the Coast Guard in over a century. 
It aligns our organization, people, technology, and acquisitions and 
contracting processes to meet the demands of today's complex maritime 
environment.
    We are streamlining organizational structures to enhance agility 
and empower rapid decision-making. We are investing in our most 
valuable asset--our people--by modernizing our personnel management 
systems, revitalizing our Reserve component, and creating new accession 
pathways to build a larger, highly skilled workforce. We are leveraging 
emerging technologies to achieve maritime domain dominance and extend 
the reach and effectiveness of our crews. Additionally, we are 
modernizing acquisition and contracting processes to deliver capability 
to the fleet faster and with greater accountability.
                            The Way Forward
    Thanks to the leadership of President Trump, Secretary Mullin, and 
Congress, the Coast Guard has a once-in-a-generation opportunity to 
strengthen America's maritime advantage. The authorities provided by 
the Coast Guard Authorization Act, the historic investment made through 
reconciliation, and the transformational reforms of Force Design have 
put us on a clear path to build the Coast Guard the nation needs. With 
your continued support, we will deliver the people, capabilities, and 
infrastructure required to protect the American people, secure our 
maritime interests, and advance our nation's prosperity and security in 
an increasingly contested maritime domain.
    Thank you for the opportunity to appear before you today. I look 
forward to your questions.
    Semper Paratus.

    Mr. Ezell. The gentleman yields. Ms. McNeil, you are 
recognized for 5 minutes.

  TESTIMONY OF TRIANA McNEIL, DIRECTOR, HOMELAND SECURITY AND 
         JUSTICE, U.S. GOVERNMENT ACCOUNTABILITY OFFICE

    Ms. McNeil. Chairman Ezell, Ranking Members Carbajal and 
Larsen, and members of the subcommittee, I am pleased to be 
here today to discuss GAO's examination of the Coast Guard's 
modernization efforts.
    For fiscal year 2026, Congress appropriated about $13.5 
billion to the Service. Congress also included nearly $25 
billion in the One Big Beautiful Bill Act in fiscal year 2025. 
This was the largest single commitment of funding in Coast 
Guard history. This funding was for Coast Guard procurement of 
cutters and aircraft and modernizing shore infrastructure and 
maritime surveillance systems. The Service said these 
investments support the intent of Force Design, initiatives 
that include developing and increasing remote and autonomous 
systems and maritime domain awareness capabilities. It could 
also strengthen the Coast Guard's ability to counter drug 
trafficking, conduct search and rescue, and manage other 
missions.
    Given the historical amount of funding provided to the 
Service, GAO has questions about what the Coast Guard has 
learned from prior recent reforms, and if it is applying those 
lessons learned as it implements Force Design.
    Since 2019, we assessed four Coast Guard reform efforts: 
one, addressing sexual misconduct; two, modernization of 
mission planning and mission support functions; the third was 
reorganization of its reserve component; and fourth, 
reorganization of its deployable specialized forces.
    Key gaps in Coast Guard's reform efforts that we 
consistently identified include issues like: what was the 
Service trying to achieve, and how would it know if it reached 
the goal; second, what process and related information was used 
to develop these reforms; third, what practices did the Service 
put in place to ensure sustained leadership focus during 
implementation and sustained tracking of progress throughout 
the implementation phase?
    We found some similar gaps when we reviewed Coast Guard's 
Force Design. We found that the key documents related to Force 
Design need to be updated so that it is clear how the reform is 
aligned with the Coast Guard's missions and desired outcomes, 
and that it includes measurable targets for each emphasis 
related to organization, people, technology, and contracting 
and acquisition.
    The Service also needs to develop an evaluation plan that 
includes mechanisms for assessing the effectiveness of reform 
actions, clarify for yourself and decision-makers what success 
looks like, and how will the Service know when it gets there. 
We are making two recommendations today to the Coast Guard to 
address these gaps.
    We look forward to working with the Coast Guard as it 
continues to move forward with its efforts to transform the 
Service into a more capable and agile force that meets current 
and future challenges. Thank you for inviting us today.
    [Ms. McNeil's prepared statement follows:]

                                 
 Prepared Statement of Triana McNeil, Director, Homeland Security and 
             Justice, U.S. Government Accountability Office
Coast Guard: Actions Needed To Help Ensure Effective Use of Billions in 
                   Funding for Modernization Efforts
                             GAO-26-109215
                             GAO Highlights
What GAO Found
    The Department of Homeland Security (DHS) and Coast Guard 
leadership have made a case that the service needs transformation. 
Since 2019 GAO has reviewed four Coast Guard reform efforts and 
identified steps the service took to incorporate leading practices as 
well as gaps in key areas. For example, in prior reviews of Coast Guard 
sexual misconduct and modernization of mission planning and reserve 
component reform efforts, GAO found that the Coast Guard did not fully 
assess its workforce needs. Additionally, for two of the reform 
efforts, the Coast Guard did not fully establish goals and outcomes, 
making it difficult to determine if the reforms had the intended 
effects.
    According to GAO's review of Force Design 2028 foundational 
documents, the Coast Guard has taken some steps to implement leading 
practices in its current reform effort but gaps remain. For example, 
the service has assigned leaders to its reform efforts and focused on 
addressing longstanding challenges, including workforce and technology 
and contracting and acquisitions. However, GAO's review also found that 
certain goals are not well-defined. For example, the execution plan 
states that the service will delegate decision authority to maximize 
mission impact. However, the document does not describe how the Coast 
Guard will measure this effort or know when it achieves its reform 
goals. Further, how proposed reforms align with Coast Guard missions is 
unclear, and there is no performance plan or other mechanism to assess 
the results.

Coast Guard Force Design 2028 Foundational Documents and Initial Update
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

            Source: United States Coast Guard. GAO-26-109215

    The Coast Guard has received significant funding to carry out its 
modernization reform efforts. Therefore, incorporating leading 
practices throughout the duration of the Coast Guard's reform efforts 
is important. Specifically, updating its foundational modernization 
documents and developing an evaluation plan and mechanisms for 
assessing the effectiveness of its actions would better ensure that 
Coast Guard management, Congress, and the public has the information 
needed to evaluate whether its actions--which are using billions of 
taxpayer dollars--are helping to mitigate identified challenges 
pertaining to the service's organization, people, technology, and 
contracting and acquisitions.
Why GAO Did This Study
    The U.S. Coast Guard--a multi-mission military service--is facing a 
readiness crisis, according to DHS and Coast Guard leadership. In May 
2025, DHS announced an effort called Force Design 2028 to modernize 
operations and capabilities. The effort aims to transform the Coast 
Guard into a more capable and agile force to meet future challenges 
across four areas--organization, people, technology, and contracting 
and acquisition.
    For fiscal year 2026, Congress appropriated about $13.5 billion to 
the service. Congress also included nearly $25 billion in Coast Guard 
funding for fiscal year 2025 in the law commonly known as the One Big 
Beautiful Bill Act--the largest single commitment of funding in Coast 
Guard history. The service has stated that this funding supports the 
intent of Force Design 2028.
    This statement focuses on (1) key themes from GAO work evaluating 
prior Coast Guard reform efforts, and (2) our assessment of the Coast 
Guard's recent modernization reform efforts.
    This statement is based on reports GAO has issued since 2018 on 
prior Coast Guard reform efforts and some of its mission and management 
activities. GAO also analyzed Coast Guard Force Design 2028 
documentation and compared them to selected leading practices for 
agency reform.
What GAO Recommends
    GAO is making two recommendations that the Coast Guard (1) update 
its foundational modernization documents as necessary to ensure 
strategic alignment with Coast Guard missions, desired outcomes, and 
measurable targets, and (2) develop an evaluation plan with mechanisms 
for each of the four areas of reform emphasis.
                               __________
    Chairman Ezell, Ranking Member Carbajal, and Members of the 
Subcommittee:
    I am pleased to be here today to discuss oversight of Coast Guard 
modernization reforms. After being weakened by decades of 
underinvestment, neglect, and strategic drift, the U.S. Coast Guard--a 
multi-mission military service with the Department of Homeland Security 
(DHS)--is facing a readiness crisis, according to DHS and Coast Guard 
leadership. In May 2025, DHS announced an effort called Force Design 
2028 (Force Design) to modernize operations and capabilities. The 
effort aims to transform the Coast Guard into a more capable and agile 
force to meet future challenges across four areas--organization, 
people, technology, and contracting and acquisition. The Coast Guard 
considers Force Design one of its largest transformations since World 
War II.
    For fiscal year 2026, Congress appropriated about $13.5 billion to 
the service--a typical amount in recent years.\1\ Congress also 
included nearly $25 billion in Coast Guard funding for fiscal year 2025 
in Public Law 119-21--commonly known as the One Big Beautiful Bill 
Act--the largest single commitment of funding in Coast Guard 
history.\2\ This funding was for Coast Guard procurement of cutters and 
aircraft and modernizing shore infrastructure and maritime surveillance 
systems. The service has stated that these investments support the 
intent of Force Design. According to Coast Guard officials, this 
funding directly supports Force Design initiatives, including to 
develop and increase remote and autonomous systems and maritime domain 
awareness capabilities. The funding could also strengthen the Coast 
Guard's ability to counter drug trafficking, conduct search and rescue, 
enhance navigational safety, enable maritime trade, and conduct the 
service's other missions, according to the Coast Guard.
---------------------------------------------------------------------------
    \1\ Homeland Security and Further Additional Continuing 
Appropriations Act, 2026, Pub. L. No. 119-86, div. A, tit. II, 140 
Stat. 773, 780-81. The act requires the Coast Guard to brief the 
Committees on Appropriations of the House of Representatives and the 
Senate on the initiatives of organization, people, technology, and 
contracting and acquisitions before funds under the act may be 
available to implement Force Design. 140 Stat. at 785.
    \2\ An Act To provide for reconciliation pursuant to title II of H. 
Con. Res. 14, Pub. L. No. 119-21, tit. IV, Sec.  40001(a), 139 Stat. 
72, 127-28 (2025). This funding remains available until September 30, 
2029.
---------------------------------------------------------------------------
    The organizational transformation needed to improve the performance 
of federal agencies can be challenging and take years to fully 
implement. For example, we testified before this subcommittee in April 
2026 that the service faces persistent challenges managing its major 
acquisition programs to modernize its vessels.\3\ Further, in September 
2024 the DHS Office of Inspector General found that the Coast Guard did 
not implement effective planning for procurement, construction, and 
other projects funded through the Infrastructure Investment and Jobs 
Act.\4\
---------------------------------------------------------------------------
    \3\ GAO, Navy and Coast Guard Shipbuilding: A Disciplined, 
Strategy-Driven Approach Is Needed to Achieve Ambitious Goals, GAO-26-
109068 (Washington, D.C.: Apr. 22, 2026).
    \4\ Pub. L. No. 117-58, 135 Stat. 429 (2021). Department of 
Homeland Security, Office of Inspector General, Coast Guard Needs to 
Implement Effective Planning for Infrastructure Investment and Jobs Act 
Projects, OIG-24-56 (Washington, D.C.: Sept. 17, 2024).
---------------------------------------------------------------------------
    My statement today focuses on (1) key themes from our work 
evaluating prior Coast Guard reform efforts, and (2) our assessment of 
the Coast Guard's recent modernization reform efforts. The statement is 
based on our prior work since 2018 on Coast Guard reform efforts and 
some of its mission and management activities.\5\ For these reports, 
published from November 2019 to January 2026, we analyzed Coast Guard 
policy, documentation, and data, and interviewed agency officials, 
among other methodologies.
---------------------------------------------------------------------------
    \5\ We chose 2018 because it aligns with the issuance of our 
leading practices on agency reform. GAO's leading practices for agency 
reform are organized into four categories and 12 subcategories. For our 
purposes, we identified and used subcategories of the leading practices 
that were relevant to the Coast Guard reform efforts we assessed.
---------------------------------------------------------------------------
    We reviewed Coast Guard documentation on its reform actions and 
assessed them against selected leading practices for agency reform.\6\ 
More detailed information on our scope and methodology can be found in 
the reports we cite in this statement. In addition, for this statement 
we analyzed Coast Guard Force Design documentation, including the 
executive plan summary, executive report, senior leaders' letter, and 
January 2026 initial update. We compared this information with selected 
leading practices for agency reform.\7\
---------------------------------------------------------------------------
    \6\ See, for example, GAO, Coast Guard: Assessing Deployable 
Specialized Forces' Workforce Needs Could Improve Efficiency and Reduce 
Potential Overlap or Gaps in Capabilities, GAO-20-33 (Washington, D.C.: 
Nov. 21, 2019); Coast Guard: Actions Needed to Evaluate the 
Effectiveness of Organizational Changes and Determine Workforce Needs, 
GAO-20-223 (Washington, D.C.: Feb. 26, 2020); and Coast Guard: 
Opportunities Exist to Strengthen Reform Efforts to Address Sexual 
Misconduct, GAO-26-107685 (Washington, D.C.: Jan. 14, 2026).
    \7\ See GAO, Government Reorganization: Key Questions to Assess 
Agency Reform Efforts, GAO-18-427 (Washington, D.C.: June 13, 2018). 
``Reform'' broadly includes any organizational changes--such as major 
transformations, mergers, consolidations, and other reorganizations--
and efforts to streamline and improve the efficiency and effectiveness 
of government operations. Our prior work on agency reforms has shown 
that successful reforms or transformations depend upon following change 
management practices, such as agreement on reform goals and outcomes; 
involving Congress, federal employees, and other key stakeholders; and 
using data and evidence to justify the proposed changes. We selected 
leading practices for which there was relevant publicly available 
information about Force Design. For the purposes of this statement, 
these leading practices are the subcategories outlined in GAO-18-427. 
We reviewed publicly available information relevant to the practices, 
and we selected two practices to evaluate against that are relevant to 
the beginning phase of a reform--(1) establishing goals and outcomes, 
and (2) using data and evidence.
---------------------------------------------------------------------------
    We requested comments on the contents of this statement, including 
our recommendation, from DHS and the Coast Guard. The Coast Guard 
provided technical comments, which we incorporated as appropriate.
    The work upon which this statement is based was performed in 
accordance with generally accepted government auditing standards. Those 
standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe that 
the evidence obtained provides a reasonable basis for our findings and 
conclusions based on our audit objectives.
   Coast Guard Inconsistently Applied Leading Practices During Prior 
                             Reform Efforts
    The Coast Guard did not fully implement leading practices for its 
prior reform efforts for (1) addressing sexual misconduct, (2) 
modernization of mission planning and mission support functions, (3) 
reorganization of its reserve component, and (4) reorganization of its 
deployable specialized forces.\8\ Since 2019, our reports have 
identified steps the Coast Guard has taken to incorporate aspects of 
leading practices to support its reform efforts as well as gaps in key 
areas that may affect its ability to maintain progress and achieve 
lasting results (figure 1).
---------------------------------------------------------------------------
    \8\ We determined that not all of the leading practices were 
applicable to each of the reform efforts. Specifically, five were 
applicable to the reorganization of deployable specialized forces, 
three to the realignment of mission planning and mission support 
functions, seven to the reorganization of the reserve component, and 
six to the reform efforts to address sexual misconduct. For the full 
list of leading reform practices and their associated key questions, 
see GAO-18-427.
---------------------------------------------------------------------------

  Figure 1: Assessment of Prior Coast Guard Reforms Against Selected 
                           Leading Practices
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

  Source: GAO analysis of Coast Guard documents and interviews against 
  GAO leading practice for agency reform; studio-icon/adobestock.com. 
                             GAO-26-109215

  Note: Three GAO reports covered (1) reform efforts to address sexual 
misconduct (GAO-26-107685), (2 and 3) modernization of mission planning 
and mission support functions, as well as reorganization of the reserve 
   component (GAO-20-223), and (4) the reorganization of deployable 
   specialized forces (GAO-20-33). We determined that not all of the 
   leading practices were applicable to each of the reform efforts. 
 Because the key practices and considerations depend on what an agency 
 is trying to achieve, not all practices may be applicable to a given 
    reform. For the full list of leading reform practices and their 
               associated key questions, see GAO-18-427.

     \a\ We used the following scale to evaluate the Coast Guard's 
   implementation of its efforts to address sexual misconduct in our 
 January 2026 report. Generally followed_the service took actions that 
addressed most or all aspects of the selected key questions we examined 
for the practice. Partially followed_the Coast Guard partially followed 
a reform practice if the evidence showed that the service took actions 
    that addressed some, but not most, aspects of the selected key 
questions we examined for the practice. Did not follow_the Coast Guard 
  had not followed a reform practice if the evidence showed that the 
 service took no actions that addressed the selected key questions we 
                       examined for the practice.

     \b\ We used the following scale to evaluate the Coast Guard's 
implementation of its modernization of mission planning in our February 
 2020 report. Generally applied_the agency documentation demonstrated 
    that Coast Guard officials substantially applied applicable key 
practices. Partially applied_the agency documentation demonstrated that 
     Coast Guard officials applied some key practices but not to a 
significant degree. Not at all applied_the agency documentation did not 
demonstrate that Coast Guard officials applied key practices. For this 
   reform effort, we assessed subcomponents of the leading practices 
  (e.g., for leadership focus and attention, we assessed whether the 
   Coast Guard identified a case for change, established a dedicated 
implementation team, and held leaders accountable). For the purposes of 
this graphic, if we determined that any one of these subcomponents was 
  partially applied, we categorized the leading practice as partially 
                                applied.

    \c\ We assessed the Coast Guard's reorganization of its reserve 
 component in our February 2020 report using the same criteria that we 
 used for its modernization of mission planning. We used an additional 
 determination, minimally applied, to assess the Coast Guard's recent 
      component integration since this effort was in its initial 
 implementation stage. We determined that a subcategory was minimally 
  applied where Coast Guard documentation demonstrated that officials 
applied a limited number of key reform practices, with significant gaps 
               in actions associated with each practice.

    \d\ In our November 2019 report, we used the following scale to 
 evaluate the Coast Guard's Deployable Specialized Forces against the 
 key practices, questions, and considerations pertaining to a leading 
  practice: Generally applied_the agency documents demonstrated that 
     Coast Guard officials considered applicable key practices and 
  considerations. Partially applied_the agency documents demonstrated 
that Coast Guard officials considered some, but not all, key practices 
  and considerations. Not at all applied_the agency documents did not 
demonstrate that Coast Guard officials considered any key practices and 
                            considerations.

    As shown above, we identified gaps in the Coast Guard's 
implementation of the same leading practices across multiple reform 
efforts in our prior work since 2019.
    Establishing goals and outcomes. In January 2026, we updated 
preliminary observations we reported in our March 2024 testimony before 
this committee, which found that the Coast Guard did not have a plan to 
assess whether reform efforts to address sexual misconduct were 
working.\9\ Similarly, in February 2020, we assessed the Coast Guard's 
reorganization of its reserve component and found that the service did 
not have finalized documentation that demonstrated outcome-oriented 
goals and performance measures to assess the progress of the 
effort.\10\ Further, it did not have a finalized implementation 
timeline.
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    \9\ GAO, Coast Guard: Action Needed to Evaluate Efforts to Address 
Sexual Assault and Harassment, GAO-24-107388 (Washington, D.C.: Mar. 6, 
2024).
    \10\ GAO-20-223.
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    Involving employees and key stakeholders. In January 2026, we 
reported that the Coast Guard obtained input from its employees and 
stakeholders and reviewed prior studies and data on sexual misconduct 
in the service to identify areas for corrective actions.\11\ However, 
we found that the lack of a defined channel for Coast Guard personnel 
to share feedback on the effects of the reforms may limit transparency 
and hinder personnel engagement with reform effort. In February 2020, 
we found that for the reorganization of its reserve component, the 
Coast Guard collected internal stakeholder feedback during the early 
planning stage of the reform but did not demonstrate that external 
input, such as from Congress, was obtained during the development 
process.\12\
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    \11\ GAO-26-107685.
    \12\ GAO-20-223.
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    Using data and evidence. In November 2019, we reported that the 
Coast Guard did not assess Deployable Specialized Forces workforce 
needs with regard to the number of personnel required to conduct its 
operations.\13\ Similarly in February 2020, we found that the Coast 
Guard did not demonstrate the extent to which it used data to justify 
its selected course of action (e.g., cost benefit analyses) when 
reorganizing its reserve component.\14\
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    \13\ To help carry out its missions, the Coast Guard maintains 
deployable specialized forces units with the capabilities needed to 
deploy with specialized training to handle counterdrug, terrorism, and 
other threats to the U.S. maritime environment. GAO-20-33.
    \14\ GAO-20-223.
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    Leadership focus and attention. In our reports in January 2026 and 
February 2020, we found that the Coast Guard identified leaders to be 
responsible for its sexual misconduct reform efforts, modernization of 
mission planning, and reserve component modernization efforts, but 
leadership attention waned during implementation of these efforts. For 
example, during the modernization of mission planning, the Coast Guard 
disestablished its office responsible for reform oversight and did not 
specify any office responsible for ensuring organizational change 
efforts met intended goals. Subsequent shifting leadership priorities 
affected what parts of the modernization effort were implemented and, 
in some cases, resulted in years spent working toward a change that was 
later terminated.
    Managing and monitoring. In our reports, we found that the Coast 
Guard took some steps to track progress of sexual misconduct, 
modernization of mission planning, and reserve component reform 
efforts, such as developing initial timeframes and milestones. However, 
the Coast Guard did not keep its tracking or related milestones up to 
date.
    Strategic workforce planning. In our reports on Coast Guard sexual 
misconduct reforms, modernization of mission planning, and reserve 
component reform efforts, we found that the Coast Guard did not fully 
assess its workforce needs.
    Across our work assessing Coast Guard's reform efforts, we made 12 
recommendations to the Coast Guard to improve its reform effort 
implementation, with which the service generally concurred. As of June 
2026, the Coast Guard has taken actions to fully address seven of these 
recommendations. Five recommendations remain open.
    For example, in March 2024, we recommended that the Coast Guard 
develop an evaluation plan and mechanisms for assessing the 
effectiveness of actions taken to help ensure service members have an 
experience free from sexual assault and harassment.\15\ In January 2026 
we reported that the service had taken steps to develop that evaluation 
plan. Coast Guard officials stated that the agency has contracted three 
full-time staff to develop a Service Culture Index--a tool to leverage 
relevant metrics from its current surveys and other reports to 
establish a baseline for assessing the cumulative impact of the reform 
actions.\16\ Contractors delivered the first iteration of the index in 
January 2026, but the associated documentation remains incomplete due 
to the lapse in appropriations, according to Coast Guard officials. 
They told us that completion and delivery of the documentation is 
anticipated no later than July 2026. Coast Guard officials told us that 
the results of the index will be used to evaluate effectiveness, and 
they are developing outcome-oriented goals and performance measures for 
the index.
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    \15\ GAO-24-107388.
    \16\ Coast Guard officials said the Service Culture Index will use 
the following five data sources: First Unit Arrival Survey, Defense 
Organizational Climate Survey, Career Intentions Survey, and Federal 
Employee Viewpoint Survey, Organizational Assessment Survey.
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    Further, in our report on Coast Guard mission modernization, we 
recommended that the Coast Guard measure progress in achieving the goal 
of modernization, update a plan with timeframes and milestones for 
completing its workforce assessment goal, and obtain information on the 
resources needed to meet its goal.\17\ The service has taken some steps 
to address all of these recommendations. For example, in September 
2023, Coast Guard officials confirmed that it updated its 2023 
Organizational Survey to include two questions that measured employee 
satisfaction with organizational change efforts.
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    \17\ GAO-20-223.
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    However, it has not yet determined timeframes and milestones to 
fully implement its workforce requirements plan even as it is embarking 
on another reform effort. By updating its plan to complete workforce 
planning and obtaining information on the resources needed to achieve 
its workforce assessment goal, the Coast Guard will be better 
positioned to ensure that it has the right number of people with 
requisite skills in the right units to meet its mission demands--
particularly important as the service undergoes another comprehensive 
transformational change through Force Design.
   Coast Guard Has Taken Steps To Implement Some but Not All Leading 
              Practices for Agency Reform for Force Design
    The Coast Guard has taken some steps to implement leading practices 
in its Force Design reform efforts to modernize operations and 
capabilities across four areas--organization, people, technology, and 
contracting and acquisition. These steps pertain to the leading 
practices of involving employees and key stakeholders, addressing high-
risk areas and longstanding management challenges, leadership focus and 
attention, and establishing goals and outcomes. However, we also 
identified gaps in the Coast Guard's implementation steps related to 
establishing goals and outcomes and using data and evidence-leading 
practices that are important for agencies to implement at the onset of 
a reform effort.
    Involving employees and key stakeholders. The Coast Guard is 
communicating actions taken to implement Force Design with its 
personnel. For example, Force Design has a dedicated website that 
provides updates, the service has broadcast messages describing 
implementation efforts, and senior leaders have held townhalls, 
according to Coast Guard press releases.
    Addressing high-risk areas and longstanding management challenges. 
In our prior work, we have identified challenges facing the Coast Guard 
in the four Force Design areas of emphasis--organization, people, 
technology, and contracting and acquisition.\18\ For example,
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    \18\ See GAO, Coast Guard: Asset, Workforce, and Technology 
Challenges Continue to Affect Law Enforcement Missions, GAO-24-107144 
(Washington, D.C.: Nov. 14, 2023) and Coast Guard Acquisition: Actions 
Needed to Address Affordability Challenges, GAO-24-107584 (Washington, 
D.C.: June 12, 2024).

      Over the past four decades, we have reported on the Coast 
Guard's challenges to maintain an adequate staff of experienced marine 
safety personnel to ensure that vessels meet federal safety standards. 
In January 2022, we recommended ways to better predict--and meet--the 
Coast Guard's inspector needs.\19\ The Coast Guard concurred with these 
recommendations and has taken some steps to address them, but as of 
June 2026, four of the five recommendations remain open. The Force 
Design execution plan acknowledges the need to change the force posture 
and operational concepts to maximize operational effectiveness across 
all mission sets as well as reengineer the service's training systems.
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    \19\ GAO, Coast Guard: Enhancements Needed to Strengthen Marine 
Inspection Workforce Planning Efforts, GAO-22-104465 (Washington, D.C.: 
Jan. 12, 2022).

      The Coast Guard has had longstanding issues managing its 
technology resources. In July 2020, we reported on longstanding 
challenges the Coast Guard has had with its Marine Information for 
Safety and Law Enforcement (MISLE) IT system, which is a data system 
that tracks and reports results data for nearly all Coast Guard 
missions.\20\ We found that the Coast Guard did not follow key systems 
development processes in its efforts to invest in MISLE. As a result, 
we recommended that the Coast Guard follow its key systems development 
processes to identify and analyze alternatives to select solutions to 
meet mission needs. The Coast Guard concurred and said it plans to 
replace MISLE. As of June 2026, replacement efforts were ongoing. The 
Force Design execution plan states that service will identify, test, 
and deliver modern technology to equip the Coast Guard workforce to 
meet mission demands around the world.
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    \20\ GAO, Coast Guard: Actions Needed to Ensure Investments in Key 
Data System Meet Mission and User Needs, GAO-20-562 (Washington, D.C.: 
Jul. 16, 2020).

      For over a decade, we have reported on the Coast Guard's 
persistent challenges in managing major acquisition programs, including 
billions in cost growth, years of schedule delays, and an unaffordable 
portfolio.\21\ Since 2012, GAO has made 54 recommendations on how to 
better address these challenges. The Coast Guard has taken steps toward 
addressing these recommendations, but as of June 2026, 16 remain open. 
Common themes across these recommendations include the need for the 
Coast Guard to (1) take a portfolio-level approach to its acquisitions, 
(2) conduct better long-term planning to ensure affordability, and (3) 
gain key knowledge before making significant investment decisions.
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    \21\ GAO, DHS Annual Assessment: Dynamic Environment Affects 
Efforts to Manage Acquisition Risks, GAO-26-108118 (Washington, D.C.: 
June 9, 2026).

       The Force Design plans include promising steps, such as 
reorganizing and creating program executive offices with the intent of 
reducing stovepipes and implementing a lifecycle management approach 
for acquisitions.\22\ Other initiatives, such as streamlining 
preacquisition planning and bypassing upfront analyses in the name of 
speed, may allow the Coast Guard to ``start fast'' and award large 
contracts quickly. The Coast Guard stated that it plans to obligate $20 
billion of the $25 billion in funding from the One Big Beautiful Bill 
Act by the end of calendar year 2026. For example, the Coast Guard has 
already obligated about $2.4 billion on contracts for the Arctic 
Security Cutter program.
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    \22\ In April 2026, we testified that as the Coast Guard implements 
this reorganization, our recent work on how leading companies organize 
portfolios of products to help facilitate speed to market can provide 
guidance. See GAO, Navy and Coast Guard Shipbuilding: A Disciplined, 
Strategy-Driven Approach Is Needed to Achieve Ambitious Goals, GAO-26-
109068 (Washington, D.C.: Apr. 22, 2026).

       However, as we found in our November 2025 report on one of the 
Coast Guard's highest priority acquisition programs, the Offshore 
Patrol Cutter, investing time upfront to gain knowledge reduces the 
risk of cost overruns and schedule delays later.\23\ In light of the 
weaknesses we have identified with how the Coast Guard manages its 
acquisitions and how quickly the Coast Guard is planning to spend the 
significant amount of funding it has received, we have raised questions 
about the extent to which the Coast Guard is doing the due diligence 
necessary to gain critical knowledge before making large investments. 
For example, while the Coast Guard has already obligated billions on 
Arctic Security Cutter contracts, it has yet to complete an analysis of 
the cost and sequencing for its polar icebreaker fleet expansion, as we 
had recommended in December 2024.\24\ More recently, the Coast Guard 
did not agree with our November 2025 recommendation to stabilize the 
design for the Offshore Patrol Cutter program prior to authorizing 
additional ships, consistent with shipbuilding leading practices we 
have identified.\25\
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    \23\ GAO, Offshore Patrol Cutter: Coast Guard Should Gain Key 
Knowledge Before Buying More Ships, GAO-26-107583, (Washington, D.C.: 
Nov. 25, 2025).
    \24\ GAO, Coast Guard Acquisitions: Further Cost and Affordability 
Analysis of Polar Fleet Needed, GAO-25-106822, (Washington, D.C.: Dec. 
19, 2024).
    \25\ GAO-26-107583. We also have ongoing work examining how Coast 
Guard is spending funds appropriated by the One Big Beautiful Bill Act 
on major acquisitions, managing its contracts, and applying 
shipbuilding leading practices.

    Leadership focus and attention. Based on our review of Force Design 
foundation documents, the Coast Guard took certain actions that align 
with leading practices for effective agency reforms pertaining to 
leadership focus and attention, which includes assigning designated 
leaders and a reform implementation team to institutional 
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accountability in implementing the changes.

      The Force Design execution plan states that the effort is 
to be guided by flag officers, members of the senior executive service, 
and command senior enlisted leaders.\26\
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    \26\ U.S. Coast Guard, Force Design 2028 Execution Plan Summary 
(Washington D.C.: July 25, 2025).
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      The service directed a captain to lead the implementation 
team.
      The Coast Guard developed teams to monitor outcomes in 
certain operational areas (Border Control, Flow of Commerce, and 
Responding in Crisis) as well as other teams to implement actions items 
pertaining to Force Design's four focus areas, according to Coast Guard 
press releases. The teams are to report directly to the commandant.

    A robust leadership structure is important throughout the entire 
reform effort.
    Establishing goals and outcomes. The Coast Guard has articulated 
certain goals with desired outcomes for Force Design, such as growing 
its workforce by 15,000 uniformed service members. Other goals are not 
well-defined and do not have clearly articulated desired outcomes or 
measurable targets. For example, the execution plan states that the 
service will empower decision-makers at all levels by, among other 
things, delegating decision authority to the appropriate level to 
maximize mission impact. The plan further states that the Coast Guard 
will adopt, leverage, and incorporate AI into daily Coast Guard 
operations. However, the document does not describe how the Coast Guard 
will measure these efforts or know when it has achieved the goals 
outlined in Force Design. In addition, the execution plan and executive 
report mention ``mission'' 40 times, but they do not show how the 
proposed reforms align with the agency's 11 statutory missions and 
strategic plan--a key aspect of this leading practice.\27\
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    \27\ See 14 U.S.C. Sec.  102(a) (providing for Coast Guard's 
missions).
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    Further, the Coast Guard has not developed a performance plan or 
similar mechanism to assess the results of Force Design, even as it has 
already implemented certain actions. The effort's foundational 
documents posted on the Coast Guard website--the Executive Plan 
Summary, Executive Report, and Senior Leaders Letter--did not include 
any direction to develop a plan to assess the results to ensure the 
actions are helping to meet the Coast Guard's goals.\28\ In addition, 
while the January 2026 Force Design initial update details reforms 
implemented over the prior year, it does not systematically evaluate 
progress or outcomes against the Force Design execution plan.
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    \28\ See https://www.uscg.mil/leadership/commandants-initiatives/
forcedesign2028/.
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    Establishing goals and outcomes is a leading practice for agency 
reform and is important to be completed at the onset of the reform 
effort.\29\ Agreement on specific goals can help decision-makers 
determine what problems genuinely need to be fixed, how to balance 
differing objectives, and what steps need to be taken to create, not 
just short-term advantages but long-term gains. Our prior work also 
shows that establishing a mission-driven strategy and identifying 
specific desired outcomes to guide that strategy are critical to 
achieving intended results.\30\ It emphasizes that by combining 
strategic alignment, clear outcome mapping, measurable targets, and 
transparent monitoring, agencies can effectively drive desired results.
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    \29\ GAO-18-427.
    \30\ For additional information about the GPRA Modernization Act of 
2010, as amended, requirements and our related work, see our web page 
on leading practices for results-oriented management at http://
www.gao.gov/key_issues/managing_for_results_in_government.
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    Further, according to the Coast Guard's Commandant instruction on 
internal controls, plans are to be developed to assess control 
performance and evaluate results in the planning stage. However, we 
have previously reported that the Coast Guard has not consistently 
engaged in effective strategic planning or developed performance 
metrics and actionable goals for some of its efforts.\31\
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    \31\ See, for example, GAO, Coast Guard: Actions Needed to Address 
Law Enforcement Mission Challenges, GAO-26-108847 (Washington, D.C.: 
Jan. 13, 2026) and GAO-26-109068.
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    According to the Coast Guard, the implementation teams are moving 
at a fast pace to implement the reforms. Coast Guard officials stated 
that they do plan to build out metrics that will measure change and 
evaluate Force Design outcomes, but they have not yet done so. Without 
(1) reassessing the foundational Force Design documents and clarifying 
them, as necessary, to ensure strategic alignment with Coast Guard 
missions, desired outcomes, and measurable targets, and (2) developing 
an evaluation plan and mechanisms for assessing the effectiveness for 
each area of reform emphasis, Coast Guard leadership will not have the 
information needed to evaluate whether its implementation steps fully 
align with the set of Coast Guard missions. Its leadership will also 
not know if these steps are helping the service achieve the intent of 
the transformation--to renew the Coast Guard to become a more agile, 
capable, and responsive service. Further, without such a plan, the 
Coast Guard, Congress, and the public are not well-positioned to assess 
how the service is spending the billions of dollars invested in the 
reform effort.
    Using data and evidence. It is unclear how or if the Coast Guard 
used data and evidence to develop and justify its modernization reform 
effort. For example, as discussed above, one of the goals of Force 
Design is to grow the workforce by 15,000 uniformed service members, 
which includes active duty and reserve members. Coast Guard officials 
stated that this is a minimum number based on, among other things, 
assets the service is acquiring.
    The Coast Guard has faced continued challenges in determining its 
workforce needs and conducting strategic workforce planning. In our 
prior work reviewing how Coast Guard has leveraged its workforce to 
meet mission needs, we found that Coast Guard has not fully assessed 
its workforce needs and recommended Coast Guard improve its workforce 
assessment process.\32\ Specifically, in 2020, we found that the Coast 
Guard had completed workforce requirements determinations for only 6 
percent of its workforce.\33\ We recommended in 2020 that the Coast 
Guard update its Workforce Requirements Plan with timeframes and 
milestones for achieving its goal of assessing its entire workforce.
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    \32\ Coast Guard's preferred tool for assessing workforce needs is 
its workforce requirements determination process. See GAO-20-223.
    \33\ GAO-20-223.
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    Since then, the Coast Guard has made some progress. As of March 
2026, the Coast Guard has up-to-date workforce requirement 
determinations for around 26 percent of its total workforce. Fully 
addressing our prior recommendation would better position the Coast 
Guard to ensure that it has the right number of people with the 
requisite skills in the right units. Without data and evidence for its 
entire workforce need, the basis for which the Coast Guard plans to 
increase by 15,000 uniformed service members is not clear.
                              Conclusions
    DHS and Coast Guard leadership have made a case that the service 
needs transformation. Such efforts are not new and have achieved mixed 
results. Since 2019, we have reviewed four Coast Guard reform efforts 
and identified gaps in implementation steps. For example, in three of 
the four prior reform efforts, leadership attention waned. Two of the 
reform efforts did not fully establish goals and outcomes, making it 
difficult to determine if the reforms had the intended effect. 
Similarly, the Coast Guard's current reform effort--Force Design--which 
the Coast Guard considers its most consequential transformation since 
World War II--has not fully established goals and outcomes or a plan 
with which to evaluate implementation.
    The Coast Guard has received unprecedented funding, including 
billions towards recapitalizing its assets and to carry out its 
modernization reforms efforts. Updating its foundational modernization 
documents and developing an evaluation plan and mechanisms to assess 
transformation actions would better ensure that Coast Guard management 
has the information it needs to evaluate whether its actions--which are 
using billions of taxpayer dollars--are helping to mitigate its 
organization, people, technology, and acquisitions challenges.
                  Recommendations for Executive Action
    The Commandant of the Coast Guard should update the service's 
foundational modernization documents as necessary to ensure strategic 
alignment with Coast Guard missions, desired outcomes, and measurable 
targets for each area of reform emphasis--organization, people, 
technology, and contracting and acquisition. (Recommendation 1)
    The Commandant of the Coast Guard should develop an evaluation plan 
with mechanisms for assessing the effectiveness of reform actions for 
each area of reform emphasis--organization, people, technology, and 
contracting and acquisition. (Recommendation 2)
    Chairman Ezell, Ranking Member Carbajal, and Members of the 
Subcommittee, this concludes my prepared statement. I would be pleased 
to respond to any questions you may have at this time.

    Mr. Ezell. Thank you. Thank you both for your testimony. We 
will now turn to questions from the panel. I will recognize 
myself for 5 minutes for questions.
    Admiral, section 7111 of the Coast Guard Authorization Act 
of 2025 requires the Coast Guard to produce an initial 
homeporting plan that describes the home ports for current 
cutters and aircraft, and where the future aircraft and surface 
assets that the Coast Guard is acquiring will be based. We 
required this report to facilitate the Service's long-term 
planning for the billions of dollars of surface and air assets 
funded by Congress that will be coming online over the next 
decade.
    I fear that if the home port planning does not begin soon, 
the Coast Guard will be left with a fleet of new aircraft and 
cutters that will have nowhere to go. The report was due last 
week. When can we expect the report?
    And can the Coast Guard explain the priority the Service is 
giving to finalizing its long-term planning needs?
    Admiral Schofield. Chairman, the continued planning for the 
home ports and acquisitions is very important to the Coast 
Guard, and we are continuing to work on that report and plan to 
have that by the end of the calendar year.
    Mr. Ezell. Thank you.
    This is one that is very, very dear to me. Too often, the 
Coast Guard has selected the lowest cost bidder for projects, 
even if they lack the proper experience or skill sets, which 
has resulted in program delays, cost overruns, and outright 
contract cancellations. The Coast Guard Act of 2025 provides 
the Coast Guard the ability to select contractors based on 
holistic criteria, including their skill set, so that we are 
not forced to select the cheapest bidder who can't actually do 
the work. It is crucial that the Service properly utilize these 
reforms.
    Can you describe how you anticipate the Coast Guard using 
this new authority so that you are able to deliver the best 
value for the taxpayer?
    Admiral Schofield. Chairman, thank you for the question.
    There is no doubt this authority affirms the Coast Guard's 
ability to select acquisition proposals that represent the best 
value to the American people. While cost is certainly one 
factor, other selection criteria such as schedule, past 
performance, demonstrated experience, as you mentioned, or 
other technical factors can also inform that selection while 
supporting competition among capable industrial partners.
    So we are going to continue to use that and appreciate your 
efforts in that authorization so we get that best value to the 
American taxpayers.
    Mr. Ezell. Thank you.
    Ms. McNeil, the Coast Guard is undertaking Force Design 
2028 which aims to modernize the Service to meet its future 
needs. In your initial review, have you determined whether the 
Service has established success criteria or measures for any of 
its lines of effort with respect to Force Design?
    Ms. McNeil. So based on our assessment of the three 
documents that we were able to obtain about Force Design, we 
have found a few gaps that we would expect to see, and that is 
why we based our recommendations on that assessment in terms of 
ensuring that it's clear how Force Design is linked to its 
mission and its outcomes that it's trying to achieve with Force 
Design.
    So making sure that there is a clear line between the 
efforts planned and what is the purpose behind Force Design, 
and there needs to be measurable targets so you can chart that 
progress made toward those goals. So that's what's missing.
    And then there needs to be an evaluation component, as 
well. So as you are making progress, you are charting your 
path, you are meeting interim goals, what's the effectiveness? 
What's the impact of Force Design?
    In past Federal efforts to do big reforms, especially when 
there is a lot of money involved, when you are making progress 
or you are going down a path and you are finding that you are 
not making progress, it's time to pivot and it's time to target 
the very precious taxpayer dollar into other efforts that might 
be worth more and more impactful. And so that's some of the 
things that we would recommend today.
    Mr. Ezell. Thank you. I am going to go through this one 
pretty quick.
    Similarly, part of the expansion in workforce will 
certainly require a large civilian workforce. You were asked to 
conduct a study on employment compensation, competitiveness, 
assignments, and retention of civilian and military personnel. 
While early in the process, can you offer any insight at your 
current findings on civilians?
    Ms. McNeil. I'm sorry, I'm not clear about what that 
question was.
    Mr. Ezell. I'm not either.
    [Laughter.]
    Mr. Ezell. Part of the expansion of the workforce will 
certainly require a larger civilian workforce. You were asked 
to conduct a study on employment compensation, competitiveness, 
assignments, and retention of civilian and military personnel. 
While early in the process, can you offer any insight at your 
current findings?
    Ms. McNeil. We will have to get back to you on that 
particular question. We will get a response for the record.
    Mr. Ezell. Thank you. I yield back.
    Mr. Carbajal.
    Mr. Carbajal. Thank you, Mr. Chair. As usual, I defer to 
our ranking member, Mr. Larsen.
    Mr. Larsen of Washington. Thank you. Thank you, Mr. Chair.
    Vice Admiral Schofield, where do we stand on the process of 
reopening stations that were closed or downsized due to 
workforce shortages?
    Admiral Schofield. Ranking Member Larsen, so just recently, 
the Commandant directed the Deputy Commandant for Operations 
and our two operational commanders to identify and prioritize 
these stations to return to their former operating statuses. We 
are focusing on manning boat and air stations to workforce 
levels to operate safely and effectively moving ahead. In the 
fiscal year 2027 President's budget, it does support this by 
adding 1 to 2 additional boat crews across our 166 stations. So 
we are going to, once we receive our budget, merge that with 
the priorities. We will return members to those units in the 
mission priority outcome level.
    Mr. Larsen of Washington. Can I clarify what you said? You 
said one to two boat crews per station?
    Admiral Schofield. One to two boat crews per--of----
    Mr. Larsen of Washington [interrupting]. Per station.
    Admiral Schofield [continuing]. Per station----
    Mr. Larsen of Washington [interposing]. Okay, yes.
    Admiral Schofield [continuing]. Of the 166 stations.
    Mr. Larsen of Washington. All right, yes. And then what 
about maintaining that year after year as you meet recruitment 
goals and putting people back at the stations with the 
platforms they need to do their job?
    Admiral Schofield. Yes, we are working up that full plan, 
and we will be able to brief the committee when we are ready to 
do that, sir.
    Mr. Larsen of Washington. Will that be part of the force 
redesign, or is this going to be complementing it? Like, not--
it can't be totally separate, I get that, but is it--does it 
have to take place within the force redesign, or can it take 
place?
    Admiral Schofield. This is separate from the Force Design 
efforts here. This is getting our workforce back up to strength 
and being able to get to the end strength that we need of 
another 15,000 members to serve across the Coast Guard.
    Mr. Larsen of Washington. That is helpful. Thank you.
    So I know that Admiral Lunday has made the eradication of 
sexual misconduct a priority. What steps is the Coast Guard 
taking to manage and monitor the success of its actions to 
combat sexual misconduct consistent with responding to OFA?
    Admiral Schofield. Sir, sexual assault is a violent crime 
that causes devastating trauma to all individuals. It destroys 
that sacred trust between our teammates, and we acknowledge 
that. It really degrades our ability to execute our missions.
    The Commandant released his first action order this year, 
which was labeled, ``Combating Sexual Assault.'' So he takes 
that very, very seriously. And it sets forth the Service's 
direction on combating that sexual assault and the criminal 
behaviors that enable it. His order is clear and unwavering: We 
will hold those who commit these crimes accountable under law 
and policy. And----
    Mr. Larsen of Washington [interrupting]. Can I ask--so the 
several provisions in the Coast Guard authorization addressed 
updating standards in the training for servicemembers. Does 
this order respond to those standards updating?
    Admiral Schofield. The order actually basically requires us 
to, and the Vice Commandant has already chartered a Sexual 
Assault Prevention, Response, and Recovery Committee to work 
all of those requirements.
    Mr. Larsen of Washington. And is it consistent with 
completing the statutorily required strategy and action plan on 
the Independent Review Commission's recommendations on sexual 
misconduct?
    Admiral Schofield. Yes, sir.
    Mr. Larsen of Washington. Record retention in general has 
been a problem at the Coast Guard. With the requirement in the 
SASH title for advanced records retention for victims, has the 
Coast Guard used any of the funding appropriated in the last 2 
years to modernize your records retention with regards to the 
SASH title?
    Admiral Schofield. Sir, we continue to look at that system 
and modernize it. I don't have a current status, but I can get 
back to you with the status.
    Mr. Larsen of Washington. Can you get back to us with that, 
please? I would very much appreciate it.
    Also in my opening comments, I noted the termination of 
various associations that could be used as important channels 
for the Coast Guard to use feedback. How are you filling in the 
gap now that the administration has cut off these particular 
associations? How are you filling the gap in order to get 
feedback and response from groups within the Coast Guard about 
sexual harassment and conduct, and progress towards eliminating 
both?
    Admiral Schofield. So, sir, we are continuing to work this 
across all our commands as part of our readiness initiatives, 
as well as feedback directly from the field to our SAPRR 
Committee's personnel and as we work towards, really, a 
cultural index across the Coast Guard and how we are doing.
    Mr. Larsen of Washington. You need to take this seriously 
and show the steps that you are taking--the sexual misconduct 
and harassment, the history of it--seriously as well moving 
forward. This committee and the Congress has told you to do 
that.
    Admiral Schofield. Yes, sir.
    Mr. Larsen of Washington. Thank you.
    I yield back.
    Mr. Ezell. The gentleman yields. The Chair recognizes Mr. 
Webster.
    Mr. Webster of Florida. Thank you, Mr. Chairman. I 
appreciate it.
    Vice Admiral, it is good to see you again. Thank you for 
your testimony. I have a few questions.
    The One Big Beautiful Bill Act provides sufficient funds to 
build two Polar Security Cutters as well as procure long lead 
time items that go on the third one. So we kind of get a 
headstart there. Can you provide an update on the PSC program?
    Admiral Schofield. Sir, I understand the question to be 
just give an update on the Polar Security Cutter Program?
    Mr. Webster of Florida. Yes.
    Admiral Schofield. So, sir, we have funded hulls 1 and 2, 
and partially funded hull 3 in that program. We continue to 
make great progress in that construction, and we are excited to 
continue to build the first Polar Security Cutters in over 50 
years.
    Mr. Webster of Florida. Could you give an assessment of the 
progress? I mean, what type of timeframe are we looking at, a 
little more specific?
    Admiral Schofield. Yes, sir. We are looking to deliver the 
first Polar Security Cutter by the end of 2029.
    Mr. Webster of Florida. 2029? Are they progressing? You are 
not waiting for 2029 to start the second one, right? Is that 
correct?
    Admiral Schofield. Yes, sir. They continue to work the 
materials, the learning from hull 1, and continuing that 
construction effort.
    Mr. Webster of Florida. Great. So the Coast Guard 
Authorization Act of 2025 provides the Coast Guard the ability 
to select contractors based on something other than just price. 
Do you have kind of an idea of how that new authority is going 
to be used?
    Admiral Schofield. Chairman, that authority is going to be 
used within our best value continuum, our best value efforts in 
contracting. We can use that as part of the factors within that 
best value continuum.
    Mr. Webster of Florida. So as long as a contractor has the 
ability to do the program, cost would be some part of that 
decision, right?
    Admiral Schofield. Sir, can you repeat that question?
    Mr. Webster of Florida. Well, as long--there is a lot of 
talk about somebody not being qualified. So if they were a low 
bid, they wouldn't get the job. But if somebody has the ability 
to do it and yet bids in a reasonable manner, do you think 
that--it's not just cost, but that will provide part of the 
solution of who you would choose?
    Admiral Schofield. Yes, sir. As part of that, in the 
solicitation, we would make sure that we put all those factors 
that are important to selecting the best value for this 
contract. We can do that beyond price. We can do technical 
factors, past performance, experience, facilities, et cetera.
    Mr. Webster of Florida. Does it speed up the process by not 
having to use price as the only--or does it slow it down?
    Admiral Schofield. Best value can be a good way to get to a 
final contract to make sure that the contract's executable and 
staying on track.
    Mr. Webster of Florida. Okay, thank you very much.
    I yield back.
    Mr. Ezell. Mr. Carbajal.
    Mr. Carbajal. Thank you, Mr. Chair.
    Vice Admiral Schofield, in my statement, I talked about the 
importance of steady, principled leadership. During 
consideration of the last Coast Guard Authorization Act, 
Congress considered changes to manning requirements on 
articulated tug barges, ATBs. We didn't make those changes 
because, in part, the admiral in charge of prevention and the 
Commandant at the hearing said, ``We do not believe that the 
technology is sufficiently advanced in robotics and automation 
to be able to reduce below the current levels.'' Yet last 
month, we got notice that the Coast Guard made the changes 
through regulatory action.
    So, what changed? Was the Commandant wrong? What was the 
epiphany that led to a major change in direction?
    Admiral Schofield. Sir, the safety of our mariners and our 
ships and the impact on our waterways is really important to 
the Coast Guard, and we continue to work that. Over the past--
--
    Mr. Carbajal [interrupting]. I am glad that's the case.
    Admiral Schofield. Yes, sir.
    Mr. Carbajal. But that wasn't the question.
    Admiral Schofield. Yes, sir. Over the past decade, the 
Coast Guard has worked on this articulated tug and barge 
manning requirements with all the stakeholders, and continue to 
assess. The updated policy provides a safe and balanced 
approach to that manning----
    Mr. Carbajal [interrupting]. I understand, but what 
changed?
    Admiral Schofield. It was really our review with the 
overall risk posture across the manning, the systems on board, 
and how they are operated.
    Mr. Carbajal. Thank you. Vice Admiral Schofield, in the 
Coast Guard Authorization Act of 2020, Congress included new 
safety management system requirements for covered small 
passenger vessels. The Coast Guard has issued an advance notice 
of proposed rulemaking, but has never moved forward with a 
formal NPRM or final rule. This is a major safety concern that 
even the National Transportation Safety Board has called for 
since 2012.
    When can we expect a final rule, or is the Coast Guard 
going to continue disregarding the law?
    And the remainder of the requirements such as fire 
suppression and egress remain as delayed as interim rules. Are 
we going to see final rules for these as well?
    Admiral Schofield. Sir, the passenger vessel safety is an 
unwavering Coast Guard priority for us. We enforce that 100 
percent compliance, as you mentioned, with the interim safety 
rules mandated by the Coast Guard. That includes that 
interconnected fire alarms, our secondary escapes, 
requirements, and overnight watches to prevent these tragedies 
at sea. We are continuing to evaluate, and we are looking to 
get that full rulemaking.
    Mr. Carbajal. Do we have a sense when the final rule will 
come forward?
    Admiral Schofield. I don't have a date, but we can get you 
an answer on the record.
    Mr. Carbajal. Great. Thank you. And also on the fire 
suppression and egress issues, as well.
    [For the information, please see Admiral Schofield's 
responses to questions 1.a. and 1.b. on page 41.]
    Mr. Carbajal. Ms. McNeil, while I am glad that the Coast 
Guard is investing in housing in Santa Barbara, finally, I am 
concerned that the shoreside infrastructure account in the 
President's budget is woefully inadequate to address the 
totality of the Coast Guard's needs. Given the GAO's report 
that the shoreside infrastructure backlog is over $7 billion 
and growing daily, what is your best recommendation for the 
Service to get this backlog under control?
    I think I already heard about the pivot. Maybe this is the 
time that they can pivot and create a better quality of life 
for all our Coasties, instead of doing all these exquisite, 
ridiculous things that at the end of the day, we can't execute 
because we don't have a healthy, good morale amongst our 
Coasties.
    Ms. McNeil. I would agree. There needs to come a time where 
there is some clarity about what a success looks like. And if 
you have invested a certain amount of money, resources, and 
time on efforts and they are not achieving what those intended 
outcomes are, it's time to explore other options and 
alternatives and do some cost-benefit analysis.
    And it's okay to pause, reassess, and reinvest. And so 
that's the suggestion that I would make here.
    Mr. Carbajal. Thank you.
    Vice Admiral Schofield, last week, a pregnant endangered 
fin whale was struck and killed by a cruise ship in Seward, 
Alaska, highlighting the need for additional measures to 
protect whales. Given the success of the whale desk in the 
Puget Sound, can this be replicated in other parts of the 
country?
    Admiral Schofield. Sir, the safety of all vessels in our 
waterways and marine whales, fish, et cetera, is important to 
the American people. We can continue to invest in further 
cetacean desks across the Coast Guard if resources are 
provided, sir.
    Mr. Carbajal. So it can be replicated in other areas?
    Admiral Schofield. It can be with the appropriate 
resources. Yes, sir.
    Mr. Carbajal. Thank you.
    Mr. Chair, I yield back.
    Mr. Ezell. The gentleman yields. Mr. Begich, you are 
recognized for 5 minutes.
    Mr. Begich. Thank you, Mr. Chair. My question is for 
Admiral Schofield.
    We saw last week a helicopter crash near Sitka, and it is a 
sobering reminder of the dangers our Coast Guard crews face in 
Alaska. Fortunately, all four members of the crash survived and 
are recovering from their injuries. What is the latest in the 
investigation, and what steps are being taken to ensure 
aviation safety operations in Alaska are improved?
    Admiral Schofield. Sir, that certainly is a tragedy for all 
of those members that were involved in the accident, as well as 
all Coast Guard men and women that continue to stay on the 
watch out there.
    We have initiated a mishap analysis board and further 
investigation on that situation, so we continue to monitor 
that. We have a robust process, sir, to review the 
recommendations of the analysis board to make sure that future 
operations are impacted by those strategies out there. We have 
been doing that for many, many years, and it has been very 
prudent and very beneficial for our policy and our operational 
use.
    Mr. Begich. Thank you. I appreciate that, and I look 
forward to continuing that conversation outside this hearing.
    The budget reconciliation bill provided $3.5 billion for 
Arctic Security Cutters and $4.3 billion for Polar Security 
Cutters. I was very excited by the recent announcement that the 
first two ASCs will be homeported in Kodiak, with a subsequent 
ASC homeported in Seward. Can you provide an update on the 
acquisition timelines, current obligations, and delivery 
schedules for the Arctic Security Cutter and Polar Security 
Cutter Programs?
    And then, in addition, what are the major infrastructure 
needs and upgrades required for Kodiak and Seward to support 
these homeportings?
    Admiral Schofield. Sir, thank you for that question, and 
these Arctic Security Cutters are going to provide value for 
the American people across our waterways in the northern 
approaches.
    Importantly, we have 3 contracts definitized, and working 
towards the delivery of those vessels for up to 11 vessels. So 
those have started; we are looking to have the first several 
delivered in 2028.
    Mr. Begich. And GAO puts the shoreside infrastructure 
backlog, as was mentioned by my colleague, at over $7 billion 
with half of Coast Guard facilities beyond their service life. 
Reconciliation provided $4.4 billion for shoreside 
construction. What portion of that backlog is attributable to 
Alaska installations specifically?
    And how are Alaska projects being prioritized in the 
spending plan?
    Admiral Schofield. Sir, I can get back to you with the 
exact number for the Alaskan backlog, but that's important, 
because several of our first ships are going into that region 
to operate. So those areas are very, very important to the 
Coast Guard, and we continue to complete upgrades in Kodiak and 
in Seward for our Fast Response Cutters, and we are currently 
assessing needs across Alaska to support our operations.
    Mr. Begich. That would be great if you could get back to me 
on that. What I would I be looking for is what is the gap, what 
is the planned appropriation within the Coast Guard for the 
funds that were made available through budget reconciliation, 
and what is the timeline through which those funds will be 
deployed, and for what. If I could get an itemized list from 
your team, that would be very helpful.
    And I appreciate all the work that you are doing in Alaska. 
I appreciate that you are prioritizing Alaska. This is a 
historic investment, as we all know, for the Coast Guard, and 
Alaska is central to it. I appreciate your work and your team's 
mission.
    And with that, I yield back.
    Mr. Ezell. The gentleman yields. Mr. Garamendi.
    Mr. Garamendi. Thank you, Mr. Chairman, and thank you for 
this hearing, very, very important. And I want to also thank 
the GAO for their ongoing reports.
    It appears as though there is some $25 billion of new money 
for the Coast Guard. For years and years, the Coast Guard has 
always been the neglected portion of our national security. 
That has changed as a result of recent legislation, and I am 
very happy about that.
    However, I am concerned about how that money is going to be 
spent. Admiral, you have already said that some significant 
amount has been obligated, and more will soon be obligated. My 
line of questions goes to the organizational structure to 
ensure that that new money for vessels, aircraft, sustainment, 
personnel, and infrastructure is being spent wisely. Could you 
please describe to us how you are organizing your staff to 
carry out the responsibility of acquiring the vessels, 
aircraft?
    Also what your sustainment program is. Have you changed 
your organizational structure to carry out this enormous new 
task?
    Admiral Schofield. Sir, as we really--and I really 
appreciate the support of this subcommittee with this 
reconciliation effort, because that really helped us support 
the future of the Coast Guard.
    As part of our Force Design, we did consolidate both our 
sustainment and acquisition under one Deputy Commandant for 
Systems. Importantly, that one person is responsible for the 
acquisition and the sustainment of these assets moving ahead 
under five PEOs, including the new Robotics and Autonomous 
Systems PEO, to be able to complete oversight and ensure that 
we are putting the money into the right areas within our budget 
and ensuring that the money is properly spent.
    Mr. Garamendi. Has the GAO done an analysis of the 
organizational structures necessary to carry out these tasks 
and spend the money wisely?
    Ms. McNeil. So we have not embarked on----
    Mr. Garamendi [interrupting]. Why have you not?
    Ms. McNeil. We would love to do that work. We can help 
craft a request----
    Mr. Garamendi [interrupting]. Yes, all nicey nicey. What do 
you need to oversee the Coast Guard's implementation of the 
expenditure of some 25 billion new dollars?
    Ms. McNeil. A mandate or a request letter, and we will be 
on it.
    Mr. Garamendi. Mr. Chairman, I suggest that we provide such 
a mandated request letter that the GAO carefully, consistently 
review the structural organization necessary to wisely spend 
this money.
    Admiral, are you confident that you have one admiral 
responsible? What staff does that admiral have to purchase this 
equipment, to make sure that the sustainment money is 
available, spare parts and pieces, and also the infrastructure, 
and also the personnel? I am curious about your organizational 
structure.
    Admiral Schofield. Yes, sir. What we have done is aligned 
all of those responsible authorities under that one person to 
make sure----
    Mr. Garamendi [interrupting]. And what is his staff?
    Admiral Schofield. Sir?
    Mr. Garamendi. What staff does he or she have to carry out 
that responsibility?
    Admiral Schofield. So the head of contracting works for the 
Deputy Commandant for Systems, as well as each one of the 
Program Executive Offices works directly for the Deputy 
Commandant for Systems.
    Mr. Garamendi. I would appreciate if you would deliver to 
this subcommittee--and certainly to me--the organizational 
structure that you have in place, the personnel that you 
believe necessary to carry out the multiple tasks to wisely and 
efficiently spend the 25 billion new dollars.
    My final point goes to sustainability. The U.S. Navy has a 
serious sustainability problem, as does the Air Force. What 
steps are you taking to assure that the sustainability of the 
existing and the new fleet of aircraft, vessels, and ports is 
carried out and sustained over the years ahead?
    Admiral Schofield. Sir, I appreciate the 2025 budget 
reconciliation helped us jumpstart that with some funding to 
get after some of our legacy backlog needs for sustainment. But 
we are a $20 billion Coast Guard operating on a $14 billion 
budget, and we need to continue--and I request your continued--
--
    Mr. Garamendi [interrupting]. Well, here is my concern, Mr. 
Chairman, is the three-letter word ``but'' that you just put 
forward. It is absolutely essential, in my view, that you have 
an organizational structure in place, the personnel necessary, 
and the direction not only to get the new equipment, but also 
to sustain it.
    And with that, I yield back.
    Mr. Ezell. The gentleman yields. Mr. Fuller, you are 
recognized for 5 minutes.
    Mr. Fuller. Thank you, Mr. Chairman.
    Admiral Schofield and Director McNeil, thank you so much 
for being here. This is mainly directed initially at the folks 
in the row behind you and the rest of the Coast Guard.
    Before taking on this job, I was an elected district 
attorney. And what the Coast Guard does each and every day by 
showing such incredible courage, by jumping on submersibles and 
taking down drug runners quite literally saved lives in my 
Appalachian community. So I want to say thank you, because we 
are losing far too many people, and I am so appreciative of the 
incredible work that you guys are doing. So I want to say thank 
you from the bottom of my heart for saving lives.
    One of the things that I wanted to do up here on Capitol 
Hill was punch the Communist Party of China in the face, and so 
one of the things that I want to talk to you about specifically 
related to the Force Design 2028 and countering China in the 
gray zone, Admiral, I am interested specifically as it relates 
to the Arctic and Antarctic: Do you have the authorities that 
you need to counter China in the gray zone?
    Admiral Schofield. Yes, sir. We continue to assess what our 
needs are up in the Arctic area. We are putting an emphasis on 
the Arctic region with that, as we build out these new assets 
to go into line, and as well as we continue to build out our 
15,000 members under the President's vision of the Coast Guard 
of the future. That will help support that region to make sure 
that we can control, secure, and defend the maritime border.
    Mr. Fuller. Thank you. One of the things that I wanted to 
talk about, when I was a district attorney, we used asset 
forfeitures a lot to fund law enforcement activities. And so I 
was wondering. Chairman Ezell described you guys in this 
hearing as--for the Coast Guard--chronically underresourced. 
And I just wanted to kind of get an understanding. When it 
comes to the asset forfeiture specifically related when the 
Coast Guard is involved, can you walk me through the process of 
an asset forfeiture and how that relates back to the Coast 
Guard?
    Admiral Schofield. Yes, sir. I don't have all those 
details, but I can get back to you with my staff to give you a 
brief on all those steps on the asset forfeiture process.
    Mr. Fuller. Okay. And then specifically, do you have--and I 
don't need a dollar figure, but do you have an understanding 
that some of the asset forfeitures that you are a part of in 
making, are any of those resources coming back to the Coast 
Guard?
    Admiral Schofield. Most of the asset forfeitures go back to 
Treasury.
    Mr. Fuller. Go back to Treasury. So as far as you know, 
nothing directly going back to the Coast Guard, despite--you 
all are on the front lines putting your lives on the on the 
line, right?
    Admiral Schofield. Yes, sir.
    Mr. Fuller. Okay. Thank you so much for your time.
    And Mr. Chairman, I yield back.
    Mr. Ezell. The gentleman yields. Ms. Scholten, you are 
next.
    Ms. Scholten. Thank you, Mr. Chair and Mr. Ranking Member, 
and welcome to our witnesses.
    I will start by asking a topic that I talk about a lot 
here: the acquisition of an additional heavy Great Lakes 
icebreaker. This year was particularly difficult for late and 
early winter shipping on the Great Lakes with numerous delays. 
U.S. carriers lost weeks stuck in the ice and couldn't deliver 
the necessary raw materials that drive American manufacturing.
    The Coast Guard has cited the need for additional heavy 
Great Lakes icebreakers, as well, and most recently included it 
in the Service's unfunded priorities list. Still, we haven't 
seen meaningful action towards acquisition.
    Vice Admiral, can you please explain why, despite the clear 
need here, the Service has yet to provide its strategy 
outlining how the Coast Guard will complete the design and 
construction of a Great Lakes icebreaker with the same 
capabilities as Mackinaw?
    And in your answer, if you could, include some references 
to some of the overall organizational structure within the 
Coast Guard and who is responsible for making sure these things 
happen and on time.
    Admiral Schofield. Ma'am, we are diligently working on that 
report currently on that future acquisition, importantly, to 
meet all the statutory requirements of title 14.
    We have--fiscal year 2027 has funding for all those 
acquisition requirements, and----
    Ms. Scholten [interrupting]. And I am sorry to interrupt, 
but the requirements by the 2022 NDAA to create the publicly 
available database, can you just remind me? What is the 
deadline for that?
    Admiral Schofield. We are currently working on that now, 
and I can get back to you with a date from my staff.
    Ms. Scholten. Okay. But internally, you guys don't have a 
goal that you are working towards? We've got to get this done 
by next week, we've got to get this done by 2030?
    Admiral Schofield. I don't have the specific date with me.
    Ms. Scholten. Okay. It seems like that would be very, very 
helpful in terms of backwards planning to see when we want to 
have this available, when the American people can expect 
answers.
    This is obviously a huge deal not just for the Great Lakes, 
but for the entire country that relies on the Great Lakes 
economy. These delays have been costly. And at a time when the 
affordability crisis is absolutely crippling American families, 
it's essential.
    Admiral Schofield. Yes, ma'am.
    Ms. Scholten. Okay. We will await your response on that 
one, then.
    H.R. 1 made a historic investment in the Coast Guard to 
counter chronic underinvestment. I was thrilled to see the 
infusion of $25 billion in the Coast Guard to recapitalize its 
surface, air, and shoreside assets. However, I am deeply 
concerned with the administration's track record when it comes 
to contracting.
    Earlier this year, I requested the DHS inspector general 
investigate allegations that Sean Plankey, who was at the time 
acting as a senior advisor of the Secretary of the Coast Guard, 
was simultaneously consulting for a Coast Guard contractor, 
despite likely being in a position to review substantial 
contracts.
    Vice Admiral, can you please touch on how the Coast Guard 
is ensuring that it is wisely using H.R. 1 investments--which, 
I may remind you, is not free money, these are taxpayer 
dollars, the hard-earned tax dollars of people in Michigan's 
Third Congressional District--to responsibly recapitalize the 
Service rather than potentially enrich members of the 
administration?
    Admiral Schofield. Yes, ma'am. Importantly, we are buying 
really needed assets and capabilities and infrastructure to get 
after the needs of the Nation.
    For reconciliation, we have major shore projects that 
include Training Center Cape May. We have worked that project 
at the Coast Guard Yard to be able to maintain those vessels in 
building out Guam, Newport, and----
    Ms. Scholten [interrupting]. And again, I am sorry to 
interrupt you, but the question was about the fiscal 
responsibility of this historic investment, which was huge. How 
are we making sure that there is not, sort of, inside deals 
being cut here?
    Specifically, we are concerned about these allegations 
against Sean Plankey. How are you making sure that that is not 
continuing to go on?
    Admiral Schofield. Yes, ma'am, we follow all the 
acquisition procurement rules as required by the Department of 
Homeland Security and within our head of contracting activity.
    Ms. Scholten. And what does that look like, I mean, in 
practice? Who is making sure that they are followed; accuracy?
    I mean, this is what we are doing here, right now, by 
asking these questions. It's the essential function of our role 
in an oversight capacity. But internally, how are you making 
sure that that happens?
    And again, I just want to stress to you this is about wise 
and fiscally responsible usage of the American taxpayer dollars 
at a time when people can't afford to put groceries on their 
table.
    Admiral Schofield. Yes, ma'am. So we do have--within our 
contracting and acquisition levels within the contracting 
organization--we have multiple levels of review, including 
multimillion and above contracts go to the Department for that 
same review to make sure that they are following all the rules 
of acquisition.
    Ms. Scholten. Do you feel that there is adequate oversight, 
people who are personally invested within the Service making 
sure that these dollars and cents are accounted for?
    And are you willing to take that personal responsibility as 
well?
    Admiral Schofield. Yes, ma'am. I believe that our policies 
do create that oversight necessary to meet all the FAR 
requirements and procurement rules.
    Ms. Scholten. Well, Vice Admiral, again I thank you for 
coming before this committee. It's important to answer the 
questions of the American people, and we do ask you back on a 
continued basis so we can continue providing that oversight.
    I am over my time. Thank you for the few extra minutes, my 
good buddy, Mr. Ezell. Thank you.
    Mr. Ezell. You sure?
    [Laughter.]
    Ms. Scholten. He is like, cut her off, cut her off.
    Mr. Ezell. Mr. Patronis.
    Ms. Scholten. Thank you.
    Mr. Ezell. Mr. Patronis.
    Mr. Patronis. Thank you, Mr. Chairman.
    Admiral, thank you all for being here. You have got a great 
team of supporters behind you there. They do a hell of a job. I 
am looking at Kyle and everybody. Thank you for putting such an 
outstanding team--I actually share a wall with them. So every 
once in a while they get a little rambunctious, but I 
appreciate their service and making sure that the trains run on 
time.
    I am curious. When it comes to planning and moving 
forward--and I am sorry that I may have missed this if this was 
already asked, but when it comes to planning stations for 
additional personnel, where are they going? Where do you want 
to put people?
    Admiral Schofield. So we are currently assessing, as I 
mentioned earlier, sir, that the Commandant directed the Deputy 
Commandant for Operations and the two operational commanders, 
our Atlantic area commander and our Pacific area commander. 
This really comes up--all about the operational priorities 
within their regional domains.
    So where do we need to put folks based on our past data-
centric-driven operational outcomes that we need to assess and 
prioritize accordingly?
    So we are basing it on the missions that are out there, the 
risk to those missions, and then put the personnel and assets 
where the highest risk and need is across the Service.
    Mr. Patronis. Sure. So, I mean, I would think Florida is an 
attractive place to send more personnel, because I don't know 
if there is more encounter data of folks being out on the 
waterways.
    I love access to the resource, and I know there are a hell 
of a lot of people that enjoy the coast of Mississippi. So I 
just know everything along that whole gulf coast is something 
that--people are moving, they are enjoying what we've got. I 
just like to make sure we are advocating for where the most 
encounter data is taking place. Putting my two cents in.
    I know of the $25 billion--at least--I guess at least $8 
billion of the $25 billion has been obligated for the 
acquisition process. Can you touch on the recapitalization with 
the money so far?
    Admiral Schofield. Sir, I understand the question to be 
maybe just touch on some of the recapitalization----
    Mr. Patronis [interposing]. Yes.
    Admiral Schofield [continuing]. Efforts across. I mentioned 
some of those items earlier. To give you some sense of the 
major shore projects that we are doing is, at the Coast Guard 
Yard, we are upgrading that very old industrial site. That is 
really important for the future of the fleet and the 
maintainability there.
    At Training Center Cape May, which is--really, it's the 
birthplace of our enlisted workforce--we are putting funding 
there under the 2025 reconciliation to really be able to be 
more efficient and effective so we can bring more folks into 
that accession point.
    Mr. Patronis. So speak to investments in Baltimore. I saw, 
I guess, is it drydock operations or dredging?
    Admiral Schofield. Yes, the drydock operations, dredging, 
and also looking to purchase a drydock.
    Mr. Patronis. Okay. So--and so currently right now, are 
there already these type of operations being done in Baltimore, 
or is this a new investment?
    Admiral Schofield. This is a new investment. We are looking 
to have this done starting in the fall and completing by 2030 
at the Coast Guard Yard.
    Mr. Patronis. And any particular reason why Baltimore was 
selected?
    Admiral Schofield. That is where our current Coast Guard 
Yard has been for----
    Mr. Patronis [interrupting]. Oh, so there is one there 
already.
    Admiral Schofield. There is one there already. What we are 
doing is, with the dredging, is making it capable for our 
Offshore Patrol Cutters and National Security Cutters to come 
in there. Currently they are not able to come in there, so we 
have more limited capability for vessels to be docked in that 
area.
    Mr. Patronis. So the Baltimore yard right now does, I 
guess, updates, retrofitting----
    Admiral Schofield [interrupting]. It does.
    Mr. Patronis. Okay.
    Admiral Schofield. Yes, it doesn't do new construction. It 
does major renovations, as well as a normal yearly or four-
yearly maintenance plan.
    Mr. Patronis. Got you, okay. Thank you for those answers.
    Mr. Chairman, I yield.
    Mr. Ezell. The gentleman yields. Ms. McDonald Rivet, thank 
you for your patience, and you have 5 minutes.
    Ms. McDonald Rivet. Thank you very much, Mr. Chairman, and 
thank you for allowing me to waive on to ask these questions.
    So I come from a Coast Guard family. We are a very proud 
auntie of two Coasties. And it is critical for the district 
that I represent in Michigan. We are literally surrounded by 
coast.
    The Great Lakes region has a $6 trillion regional economy, 
affects millions of Americans, holds 90 percent of the United 
States freshwater and directly supports over 1 million jobs. 
But here's the thing. It gets really cold in the wintertime--I 
know you know this--and the Great Lakes freeze over, which 
hurts our commerce, it hurts maritime activity. So we have to 
really think about and invest in icebreaking. They can only do 
that when the fleet is fully operational.
    Last season, the Coast Guard's Great Lakes icebreaking 
fleet operated at reduced capacity because of engineering 
concerns with multiple vessels, including the heavy icebreaker, 
the Mackinaw. So we feel that very acutely. We lost one-third 
of the 2026 season, and it impacted billions in economic 
opportunity.
    I know you are aware of the Great Lakes Icebreaker Act 
where we are really focused on how we can be at full capacity 
here. The act actually required the Coast Guard to outline how 
it will design, build, and deliver a new Great Lakes heavy 
icebreaker by March 18 of 2026. And the bill also required a 
report detailing that. We have not received any of those 
reports to date.
    And so, as we are thinking about--it's hot as Hades outside 
right now, but we are already thinking about winter. And so 
with doing that, when can we expect the Coast Guard to deliver 
the overdue reports?
    Admiral Schofield. Yes, ma'am, I will have to get back to 
you on that specific date, but we are currently working on that 
report. And this certainly was a challenging winter----
    Ms. McDonald Rivet [interposing]. Yes.
    Admiral Schofield [continuing]. Across the Great Lakes and 
New England regions. It was really a historic ice season for 
20-plus years. And we are continuing to assess and see how we 
can do better operations within those regions.
    Ms. McDonald Rivet. Yes, that would be terrific, I think.
    I understand that there have been cuts, that you are 
shortstaffed. I get that. But deadlines that are mandated by 
Congress are not something to be taken lightly and ignored. And 
we actually need to have that information. And my constituents, 
frankly, are demanding it.
    I want to actually switch to another issue that I think has 
already been brought up a bit here, but it actually has to do 
with the Coast Guard station on the Saginaw River. I have asked 
about this before. I am going to ask about this every chance I 
get. The facility was forced to cut its 24/7 search and rescue 
operations down to 40 hours, and we have seen our Coast Guard 
response time drop dramatically--I mean, increase dramatically. 
It now can take the Coast Guard hours to provide critical 
lifesaving support. So to fill this gap, we have had to rely on 
our local law enforcement, first responders, and honestly, just 
flat-out good Samaritans to help particularly with water 
rescues in ice--again, Michigan, there is a theme here, lots of 
ice. Okay?
    So last winter, we saw nearly a dozen ice rescue calls, and 
our local law enforcement and our good Samaritans came in, 
saved 15 lives without any additional support from the Coast 
Guard on the ground. This is our reality. Every winter there 
are ice rescues. Every summer season there are water rescues. 
And you know that the Saginaw Bay sits on Lake Huron, which is 
our country's northern border, and it only to me underscores 
the importance of this national security.
    So to measure the impact of the change of the station, last 
year's NDAA required the Coast Guard to submit an annual report 
measuring staffing response times. Based on the delays in 
implementing the Great Lakes Icebreaker Act, I am concerned 
that we are also not going to get this report in matters that 
literally can mean life or death for the people that I 
represent. And I would love for you to also tell me when we can 
get that report.
    And lastly, I sent a letter to the Commandant calling for 
the reinstatement of full operations at the Saginaw River 
station, and wondering if you have an update on that.
    Admiral Schofield. Well, ma'am, there is no doubt that the 
safety of all lives are our primary mission at all times, so we 
will continue to do that. Whether it's ice season or summer 
season, we will continue to do that.
    I mentioned earlier the Commandant, his tasks, are 
operational commanders to come up with a prioritized report 
which are based on those assessments across the entire 
operating area on the needs within those regions to put, as we 
have in the fiscal year 2027 President's budget, up to one or 
two additional boat crews through every boat station in the 
Coast Guard, and we are looking to see where we can best 
utilize those people to get after the mission needs of the 
American people.
    Ms. McDonald Rivet. I didn't really hear a delivery date on 
that.
    Admiral Schofield. We should have that report by the end of 
the calendar year. Yes.
    Mr. Ezell. The gentlelady yields. I have a couple more 
questions on the second round, wrap this thing up pretty quick.
    Admiral, after significant disputes over the bid award for 
the Waterways Commerce Cutters, the WCCs are finally under 
construction. Unfortunately, the WLI, the third WCC variant, is 
not part of the current design contract. The Coast Guard has 
preached that commonality among the three vessels' designs is 
the key to limiting construction costs and maintaining a tight 
timeline.
    Excluding the WLI from the current design contract unwinds 
the commonality on which the WCC acquisition strategy is based. 
Does the Coast Guard plan to add the WLI to the current WCC 
design contract, or has the Coast Guard failed to heed the 
message in its own sermon?
    Admiral Schofield. Yes, sir. To start with, the 
construction and river tenders and inland tenders are all 
unique in what they do around the Nation on rivers and coastal 
waterways, driving piles, working aids, and they are difficult. 
So what we have done initially was we have got construction 
tenders and river tenders there in the current contract that 
are similar design.
    The three remaining vessels are unique. They are different. 
They work in areas that are more shallow, more directed areas 
that have unique capabilities for getting after aids and 
servicing. And we continue to work that acquisition strategy on 
how we are going to go ahead with the three WLIs.
    Mr. Ezell. During the lapses in appropriations in fiscal 
year 2026, the Coast Guard continued to pay military members 
even after payroll accounts were exhausted. The Coast Guard did 
so by using unobligated funds from other accounts which was 
styled as a loan to payroll from those accounts. Can you 
provide an update on the status of these funds?
    And more specifically, have the funds been returned to the 
accounts for which they were intended?
    Admiral Schofield. Sir, I can give you a more detailed 
update on those separately with my staff.
    Mr. Ezell. Thank you. I yield back.
    Mr. Carbajal, do you have----
    Mr. Carbajal [interrupting]. Thank you. I have a couple of 
questions, after all, before I make an announcement.
    Admiral, at the beginning of last year, at the direction of 
the administration, the Coast Guard fired 25 percent of its 
flag corps officers. At the same time, you are looking to grow 
the workforce by 15,000. What data and studies does the Coast 
Guard have to justify that number?
    Admiral Schofield. Sir, from a Force Design perspective, 
this is about streamlining our Service and taking out the 
decision layers across the organization. Importantly, putting 
frontline operators out in the field to get their missions 
done.
    Mr. Carbajal. And the 15,000?
    Admiral Schofield. With the 15,000. Yes, sir.
    Mr. Carbajal. Okay. Ms. McNeil, do you have any thoughts on 
this issue?
    Ms. McNeil. When we looked at the past reforms since 2019, 
including the current one, Force Design, we have got a lot of 
questions about the data and information that was used to 
inform the decisions about specific reforms.
    And the one question that you just raised, we would love to 
see an answer to that question. How did they arrive at the 
reduction in the number of senior officers, and also how they 
arrived at this target of hiring 15,000. We don't know how they 
arrived at that decision. We are not sure what data and 
information they used, and we also don't know how that is tied 
to some type of an outcome or goal that they have established 
in the Force Design.
    It's a good question, and we would love the answer to that.
    Mr. Carbajal. As well as the organizational structure that 
has to occur for this to be----
    Ms. McNeil [interposing]. Definitely.
    Mr. Carbajal [continuing]. An effective change.
    Mr. Chairman, I am done with my questions, but if it's okay 
with you, I wanted to take a minute to, in addition to the 
staff that you recognized earlier, I wanted to recognize our 
fellow, our Coast Guard fellow, Lieutenant Commander Amanda 
Gavelek, who is here. She is going to be leaving subcommittee 
staff at the end of this month. She is also being elevated to 
commander, and I hope to see her someday lead the Coast Guard, 
because she has my full confidence in terms of her abilities 
and her talent.
    So I just want to take a minute to recognize her for the 
work that she has done here with our committee and our 
subcommittee, and I wish her the best in her future endeavors.
    And congratulations on being elevated--I think, coming up 
in a few days--to commander, as well.
    The Coast Guard is in good hands with people like her. Mr. 
Chairman, I yield back.
    Mr. Ezell. The gentleman yields. Are there any other 
further questions from any members of the subcommittee that 
have not been recognized?
    Seeing none, that concludes the hearing for today. I would 
like to thank each and every one of you for being here today 
and the witnesses' testimony.
    The subcommittee stands adjourned.
    [Whereupon, at 11:21 a.m., the subcommittee was adjourned.]

                                Appendix

                              ----------                              


   Post-Hearing Questions for the Record to Vice Admiral Douglas M. 
    Schofield, Chief of Staff, U.S. Coast Guard, from Hon. Salud O. 
                                Carbajal

    Question 1. Vice Admiral Schofield, during the hearing, I asked 
about the safety management system requirements for covered small 
passenger vessels included in the Coast Guard Authorization Act of 2020 
to which you were unable to provide a date and stated you would follow 
up for the record. The Coast Guard has issued an advance notice of 
proposed rulemaking, but has never moved forward with a formal NPRM or 
final rule.
    Question 1.a. When can we expect a final rule?
    Answer. A prospective publication date for the final rule is not 
set at this time. The Safety Management Systems for Domestic Passenger 
Vessels rulemaking (Regulation Identifier Number 1625-AC65) is on the 
inactive rule list in the most recent 2026 Unified Agenda.
    Based on the comments received, additional review would be required 
due to associated regulatory analysis including economic costs, 
implementation, and enforcement concerns. If this rulemaking effort is 
revived, the Coast Guard anticipates the Office of Management and 
Budget (OMB) designation as a significant regulatory action, that would 
require offsetting the costs of the rule with other deregulatory 
actions per E.O. 14192, Unleashing Prosperity Through Deregulation.

    Question 1.b. The remainder of the requirements in the Coast Guard 
Authorization Act of 2020, such as fire suppression and egress, remain 
as delayed as interim rules. When will we see final rules for these as 
well?
    Answer. A prospective publication date for a final rule is not set 
at this time. The Fire Safety of Small Passenger Vessels rulemaking 
(Regulation Identifier Number 1625-AC69) published as an interim rule 
on December 27, 2021. See 86 FR 73160. This rulemaking is also on the 
inactive rule list in the most recent 2026 Unified Agenda.
    Similar to the Safety Management System rulemaking above, 
additional review would be required due to associated regulatory 
analysis including economic costs, implementation, and enforcement 
concerns. If this rulemaking effort is revived, the Coast Guard 
anticipates the Office of Management and Budget (OMB) designation as a 
significant regulatory action, that would require offsetting the costs 
of the rule with other deregulatory actions per E.O. 14192, Unleashing 
Prosperity Through Deregulation.

    Question 2. Vice Admiral Schofield, it is my understanding that the 
Coast Guard issued a request for information earlier this year looking 
at expanding the Streamlined Inspection Program (SIP). I hold concerns 
that an expansion of the SIP could impact safety. In 2021, the 
Department of Homeland Security Office of Inspector General found that 
66 percent of vessels enrolled in SIP have deficiencies. Please provide 
details on the Coast Guard's reasoning for the expansion.
    Question 2.a. What safeguards will be implemented to ensure that 
increased reliance on the SIP does not compromise compliance, 
accountability, or the identification of safety deficiencies?
    Answer. The planned revisions to the Streamlined Inspection Program 
(SIP) are intended to leverage Safety Management Systems such as ``Flag 
Ship,'' to proactively identify hazards, manage risk, and continuously 
improve safety performance. The Coast Guard is not reducing the number 
of annual inspections for Small Passenger Vessels or unannounced 
boardings. Instead, the intent is for Coast Guard Marine Inspectors to 
audit a full year of continuous compliance records, mitigating the 
traditional safety ``blind spots'' between our annual visits.

    Question 2.b. The OIG also found that the Coast Guard did not have 
metrics to monitor the program's performance. How will the Coast Guard 
monitor the program's (existing or expanded) performance over time and 
what metrics will be used to determine whether it results in a higher 
level of safety?
    Answer. Through a new SIP Key Performance Indicator Process Guide 
(CVC-PG-024, referenced by the DHS Office of the Inspector General), 
two primary metrics are tracked: (1) company-reported corrective 
actions vs. Coast Guard-identified deficiencies to ensure self-
correction, and (2) that SIP-enrolled vessels maintain casualty rates 
equal to or lower than the traditionally inspected fleet.

    Question 2.c. How will the Coast Guard address potential conflicts 
of interest that may arise when vessel operators have an increased role 
in evaluating their own compliance? What measures will be in place to 
ensure that commercial or operational pressures do not influence the 
identification, reporting, or correction of safety deficiencies?
    Answer. The Coast Guard retains 100 percent enforcement authority. 
Omitting maintenance, skipping drills, or falsifying records 
constitutes a major compliance issue. Operators who fail to accurately 
report issues may face immediate operational controls, Program 
probation or disenrollment, and Certificate of Inspection (COI) 
revocation.

    Question 2.d. How will the Coast Guard validate the accuracy and 
integrity of information provided?
    Answer. The Coast Guard plans to validate information integrity 
through a multi-layered approach. First, Marine Inspectors conduct 
inspections and unannounced boardings to physically verify that the 
vessel's actual condition matches the company's records. Second, 
operators are strictly bound to Vessel and Company Action Plans with 
verifiable tracking of all maintenance and drills. Finally, as 
operators transition to digital systems, we are establishing rigorous 
standards for electronic recordkeeping to ensure data features are 
immutable, timestamped audit trails for tamper-proof accountability.

    Question 3. Vice Admiral Schofield, during the hearing, I asked 
about the recent decision to change engine room manning standards on 
articulated tug barges. At a budget hearing in April of 2025, the 
Commandant stated:
    `` . . . we do not believe that the technology is sufficiently 
advanced in robotics and automation to be able to reduce below the 
current levels . . . ''.
    Yet, last month, we got notice that the Coast Guard made the change 
through regulatory action. Please further elaborate on why the Coast 
Guard decided to change these standards.
    Answer. The Coast Guard policy, CVC-W1-037(1) Articulated Tug-Barge 
(ATB) Vessel Manning: James M. Inhofe National Defense Authorization 
Act for Fiscal Year 2023, H.R. 7776, SEC. 11508, reflects a balanced 
approach that incorporates a deliberate focus on safety for a limited 
vessel population on limited routes. Earlier proposals to revise policy 
were rejected due to practical safety concerns associated with only one 
licensed engineer and unlimited routes. The Coast Guard issued updated 
policy which authorizes reduced engine room manning only on Subchapter 
M towing vessels that are an articulated tug and barge combination, 
have a gross tonnage of between 200 and 300 Gross Registered Tons, have 
a valid COI with Periodically Unmanned Machinery Space approved by the 
Coast Guard, and have a valid COI issued before July 19, 2022, that 
authorized reduced engine room manning. Additionally, the Coast Guard 
will physically inspect the automation systems and review shore-based 
monitoring and maintenance programs. Lastly, all proposals submitted in 
accordance with the policy will specify how they will meet and maintain 
the statutory or convention work/rest hour requirements.

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