Coast Guard Cutter Procurement: Background and Issues for Congress

The Coast Guard is procuring a combination of National Security Cutters (NSCs), Offshore Patrol Cutters (OPCs) and Fast Response Cutters (FRCs) as replacements for 90 earlier-generation Coast Guard high-endurance cutters, medium-endurance cutters, and patrol craft, respectively. National Security Cutters are the Coast Guard’s largest and most capable general-purpose cutters; they replaced the Coast Guard’s 12 Hamilton-class high-endurance cutters. The Coast Guard’s 2004 Program of Record (POR) called for procuring 8 NSCs; a total of 11 were eventually procured, with the 10th and 11th being funded in FY2018. NSCs had an estimated average procurement cost of about $670 million per ship. The 10th NSC was commissioned into service in April 2024. In March 2025, it was reported that construction of the 11th ship had been halted since at least November 2024 with the ship 15% complete due to “material conformance concerns,” and that the Coast Guard and the shipbuilder were working to resolve the issue. In June 2025, it was reported that the Coast Guard and the shipbuilder had agreed to cancel construction of the ship, making the 10th NSC the final one to be completed and enter service. The Navy in November and December 2025 announced a plan to build a new class of frigates whose design would be based on that of the NSC. Offshore Patrol Cutters are intended to replace the Coast Guard’s 29 aged medium-endurance cutters. The 2004 POR calls for procuring a total of 25 OPCs. Coast Guard officials describe the OPC program and the Polar Security Cutter (PSC) program (which is covered in another CRS report) as the service’s highest acquisition priorities. The first OPC was funded in FY2018, and additional OPCs were funded in subsequent years. The first four OPCs were being built by Eastern Shipbuilding Group (ESG) of Panama City, FL. In June 2022, the Coast Guard announced that it had awarded a contract to Austal USA of Mobile, AL, to produce up to 11 OPCs (i.e., OPCs 5 through 15). The OPC program has experienced significant cost growth and schedule delays. In July 2025, the Department of Homeland Security (DHS) announced a partial termination of ESG’s OPC contract, canceling the construction of OPCs 3 and 4. In November 2025, it was reported that ESG had decided to suspend its OPC construction work—a development that appears to relate to OPCs 1 and 2. As of January 2026, no OPCs have entered service. Fast Response Cutters are considerably smaller and less expensive than OPCs; they are replacing the Coast Guard’s 49 aging Island-class patrol boats. The 2004 POR originally called for procuring 58 FRCs, but that figure was increased in subsequent years. Drawing on $1.0 billion in funding for procurement of FRCs provided by Section 40001 of the FY2025 reconciliation act (H.R. 1/P.L. 119-21 of July 4, 2025, also referred to as the One Big Beautiful Bill Act [OBBBA]), the Coast Guard on September 10, 2025, awarded a $507 million contract for 10 FRCs, bringing the total number of FRCs procured to 77. As of August 10, 2025, 59 FRCs have been commissioned into service. The 60th and 61st were accepted by the Coast Guard on June 26, 2025, and October 23, 2025, respectively.