Navy Cancels Constellation Frigate Program Amid Cost Overruns

Navy Secretary John Phelan announced the cancellation of the multibillion-dollar Constellation-class frigate program, terminating the order for four ships that had not yet begun construction. The decision follows significant budget overruns and schedule delays that pushed the delivery of the USS Constellation from 2026 to 2029. Phelan cited a strategic shift to prioritize fleet readiness and the need to grow the fleet faster to counter China's naval expansion.

Construction continues on the first two vessels, the USS Constellation and the USS Congress, though their final status remains under review. The program, based on a European design, struggled with complex redesigns to meet U.S. operational standards and a lack of finalized designs before construction began. This leaves a critical gap in surface combatants intended to replace retiring Ticonderoga-class cruisers, forcing the Navy to rely longer on Arleigh Burke-class destroyers.

In response to the reduced demand, Fincantieri Marinette Marine laid off 93 employees on December 3, 2025, primarily in white-collar positions. Fincantieri Marine Group CEO George Moutafis stated the company reached an agreement with the Navy to provide stability for the remaining workforce and the Wisconsin System of Yards. Senator Tammy Baldwin urged the Navy and the administration to provide additional work to the Marinette facility to prevent further workforce gaps and protect maritime commerce capabilities.