Navy Ship Procurement: Alternative Funding Approaches - Background and Options for Congress

Some observers have proposed procuring Navy ships using incremental funding or advance appropriations rather than the traditional full funding approach that has been used to procure most Navy ships. Supporters believe these alternative funding approaches could increase stability in Navy shipbuilding plans and perhaps increase the number of Navy ships that could be built for a given total amount of ship procurement funding. The issue for the 109th Congress is whether to maintain or change current practices for funding Navy ship procurement. Congress’s decision could be significant because the full funding policy relates to Congress’s power of the purse and its responsibility for conducting oversight of defense programs