Today, U.S. Department of Homeland Security Secretary Kristi Noem announced the partial termination of a shipbuilding contract to protect taxpayer dollars and modernize the United States Coast Guard. The decision involves the cancellation of part of an Offshore Patrol Cutter (OPC) contract with Eastern Shipbuilding Group (ESG) due to delays and budget issues.
A Senior Homeland Security official stated, "This Administration is unwavering in its commitment to the American taxpayer and to a strong, ready Coast Guard." The official emphasized that modern vessels are crucial for national security and every dollar must be spent wisely.
The existing contract with ESG has faced delays, affecting defense capabilities. ESG's delivery of OPC 1 was initially due in June 2023 but is now expected by late 2026. The company missed its April 2024 deadline for OPC 2. Work on OPCs 3 and 4 was halted after ESG indicated they could not fulfill their obligations without financial loss.
The Coast Guard aims to procure 25 OPCs as part of its strategy to enhance maritime security. This fleet will support various missions, including counter-drug operations along the southeast border.
President Donald Trump has introduced significant funding through initiatives like Force Design 2028 to address past neglect and strengthen the Coast Guard.
