Secretary Noem Saves American Taxpayers Hundreds of Millions by Negotiating New Contract for the Coast Guard

DHS is revolutionizing national security while saving the taxpayer over $260 million

WASHINGTON – Department of Homeland Security Secretary Kristi Noem announced that she successfully saved the American taxpayer over $260 million by cancelling a failing U.S. Coast Guard (USCG) shipbuilding project.

Shipbuilding company Huntington Ingalls (HII) began production of a Legend-class National Security Cutter (NSC) in May 2021. It was supposed to be delivered by 2024 at the latest but is still nowhere near complete. 

“This is about fulfilling President Trump’s commitment to the American taxpayer,” said Secretary Noem. “Huntington Ingalls owed us this cutter over a year ago. As the Trump administration is revitalizing the U.S. Coast Guard through Force Design 2028, we need to be smart with the American taxpayer’s money. This project was over time and over budget. Now the money can be redirected to ensuring the Coast Guard remains the finest, most-capable maritime service in the world. I would like to extend my thanks to Huntington Ingalls for negotiating in good faith.”

In addition to returning over $260 million to the U.S. Treasury, the Coast Guard will receive $135 million in parts that will be used to retrofit, upgrade, and maintain the Coast Guard’s existing fleet of 10 Legend-class cutters. By cancelling the production of NSC #11 and securing the parts deal with HII, Secretary Noem has ensured that the Treasury will recoup the remaining funds for use where they are most needed.

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