U.S. Navy Cancels Constellation-Class Frigate Program Amid Strategic Shift

On November 25, 2025, U.S. Navy Secretary John Phelan announced the cancellation of the last four ships in the Constellation-class frigate program, a decision that marks a significant shift in the Navy's shipbuilding strategy. Initially, the program aimed to produce 20 frigates based on an Italian design, but persistent design changes, delays, and cost overruns led to the decision to terminate the remaining contracts. The Navy had contracted with Fincantieri Marinette Marine in Wisconsin to build these vessels, with the first ship, USS Constellation, under construction since August 2022.

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The Constellation-class program faced numerous challenges, including extensive modifications to the original design, which resulted in increased costs and delays. Originally projected to cost around $1 billion per ship, estimates have now risen to approximately $1.4 billion. Phelan emphasized the need for the Navy to focus on shipbuilding that enhances readiness and capability, stating, “I won’t spend a dollar if it doesn’t strengthen readiness or our ability to win.” The Navy's decision reflects a broader strategy to grow the fleet more rapidly in response to emerging threats, particularly from China's expanding naval capabilities.

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Despite the cancellation of the four frigates, construction will continue on the first two vessels, with their future still under review. Phelan highlighted the importance of maintaining the workforce at Fincantieri, stating that keeping shipbuilders employed is a priority. Fincantieri has expressed its commitment to transitioning its workforce to other naval projects, including amphibious and icebreaking vessels, as part of a new agreement with the Navy.

Constellation Class Frigate Program Cancelled By Navy Secretary (Updated)

The cancellation has drawn criticism from various stakeholders. Lawmakers from Wisconsin, where Fincantieri operates, expressed disappointment, arguing that the decision undermines the local shipbuilding industry and national security. Representative Tony Wied remarked that the decision "pulls the rug out from under" skilled workers, while Senator Tammy Baldwin emphasized the blow to Wisconsin's shipbuilding legacy. Analysts have also criticized the program, with former Navy captain Carl Schuster labeling it a "great waste of money" that would not meet modern naval threats.

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Fincantieri Marine Group's CEO, George Moutafis, stated, “The agreement reached with the U.S. Navy marks a new chapter in our strategic partnership,” emphasizing the company's readiness to support the Navy's evolving needs. Phelan reiterated the Navy's commitment to shipbuilding, saying, “The Navy needs ships, and we look forward to building them in every shipyard that can.”

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The Navy is currently reassessing its shipbuilding strategy and will submit an updated 30-year shipbuilding plan with the fiscal year 2027 budget request. This plan is expected to outline new classes of ships that can be produced more rapidly to meet the Navy's operational requirements. The future of the Constellation-class frigates remains uncertain as the Navy navigates this strategic shift.

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• “I won’t spend a dollar if it doesn’t strengthen readiness or our ability to win,” — John Phelan, Secretary of the Navy

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• “The Constellation was a great waste of money” — Carl Schuster, former U.S. Navy captain

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• “Keeping this critical workforce employed and the yard viable for future Navy shipbuilding is a foremost concern.” — John Phelan, Secretary of the Navy

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This cancellation underscores the Navy's ongoing challenges in balancing fleet modernization with fiscal responsibility and strategic readiness.

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