Washington: The White House has emphasized a legislative proposal that would enable the U.S. Navy to contract the construction of two combat ships and two non-combat auxiliary vessels in foreign shipyards, as outlined in a recent document submitted to Congress.

According to Yonhap News Agency, the Office of Management and Budget (OMB) specified the proposal in a policy statement sent to the House of Representatives on July 21. The statement aimed to clarify the administration's stance on the House version of the fiscal year 2027 National Defense Authorization Act (NDAA), opposing a section that prohibits the use of defense funds for procuring "battle force" ships from foreign shipyards.

The OMB argued that the prohibition contradicts the administration's legislative priorities, which are designed to authorize the construction of naval vessels abroad to stimulate foreign investment in U.S. shipyards. This initiative addresses challenges related to the current shipbuilding backlogs in the United States.

The proposal for utilizing foreign shipyards arises amid increasing collaboration between South Korea and the United States to invigorate America's shipbuilding sector. Concerns have been raised that U.S. regulatory barriers could impede this partnership. As part of a broader $350 billion investment agreement with Washington, Seoul has committed to investing $150 billion in shipbuilding cooperation with the U.S.

In its policy statement, the OMB referenced the "Finland Model," where the U.S. would initially acquire vessels from allied foreign shipyards more swiftly before transitioning production to the U.S. with foreign investment. The OMB criticized the bill's restrictions on foreign shipyard purchases, suggesting they limit the U.S.'s ability to leverage foreign advancements that meet specific Department of War needs.

The statement emphasized that access to these foreign capabilities would expedite the growth of the U.S. shipbuilding industrial base and aid in achieving urgent national security goals. Last month, U.S. President Donald Trump mentioned the potential for shipbuilding cooperation with South Korean and other companies to strengthen the U.S. Navy.