Navy May Look To Retire Cruisers Under Budgetary Pressure

NATIONAL HARBOR, Md. – The Navy may consider retiring early or winding down Ticonderoga

-class cruisers as the service faces budget pressure under a full-year continuing resolution (CR) and the continuing focus on improving shipbuilding and adding unmanned systems.

“There may be some opportunity to look at some of our platforms, and I’ll use cruisers as an example. To me, I’m a cruiser sailor. I love cruisers. We’ve had them for a long time but my ability to keep them at sea to do that mission is challenging, increasingly challenged because of [hull, mechanical and electrical, HM&E] hull cracking and tank cracking,” Adm. James Kilby, acting Chief of Naval Operations (CNO) and vice CNO, told reporters here Monday at the annual 2025 Sea-Air-Space expo.

Acting Chief of Naval Operations Adm. James Kilby moderating a panel at the Sea-Air-Space 2025 maritime exposition in National Harbor, Md. on April 7, 2025.
Acting Chief of Naval Operations Adm. James Kilby moderated the “Ready Our Platforms” panel at the Sea-Air-Space 2025 maritime exposition at the Gaylord National Convention Center, National Harbor, Maryland, April 7, 2025. The Navy League’s Sea-Air-Space Exposition is an annual maritime exposition that brings together defense industry leaders and top military decision-makers from around the world to share the latest advancements in the maritime domain. (U.S. Navy Photo by Mass Communication Specialist 1st Class Vanessa White/Released)

“So, to me, if I can’t keep that ship at sea, it’s of no use to the Combat Commander or the President or the Secretary of Defense. So, to me, we’ll have to really look at the efficacy of the force. We have to be able to do what we need to do,” he continued.

Kilby admitted while the classic discussion balancing cruisers focuses on their number of Vertical Launch System (VLS) cells, that is only a logical point “if that shop can be where it needs to be, when it needs to be there. So to me, our destroyers are doing the mission, and they’re doing well there.”

This comes amid near-term budget constraints from a year-long continuing resolution that allows the Pentagon to authorize some new-start programs, but does not keep up with inflation. The Secretary of Defense also plans to cut and reinvest up to eight percent of its fiscal year 2026 budget.

Given these budgetary pressures, Kilby said his focus areas include how the Navy needs to increase its capacity, “whether it be robotic and autonomous systems or shipbuilding,” as well as improving munitions industrial base and procurement improvements and manpower/recruitment. 

Kilby noted Vice Adm. Brendan McLane. Commander of Naval Surface Forces, is working to increase overall surface ship on-time maintenance, which he boasted doubled from 2023 to 2024. 

“We need to continue on that march to get to that availability, until we can build more platforms.”

In recent years the Navy’s budget requests have sought to retire some of the cruisers before the end of their expected service lives. Most recently, the FY 2025 request sought to retire USS Shiloh (CG-67) and Lake Erie (CG-70) early. The Biden White House at the time argued these ships are “currently in a condition that renders modernization and restoration to full operational capability cost-prohibitive” (Defense Daily, June 11, 2024).

Congress ultimately allowed the ships to be retired, but lawmakers on the Armed Services Committees have been broadly skeptical of early ship retirements amid concerns of losing capabilities like VLS cells while new ship construction is delayed.

Beyond weighing how many cruisers to retain, Kilby said one of the seven goals of Navy leadership is increasing the hybrid robotic and autonomous systems fleet.

“The challenge for us is to really robustly lay out a road map to get there as we’ve had some fits and starts there. So we must do better.”

The USS Lake Erie (CG-70) cruiser. (Photo: U.S. Navy)
The USS Lake Erie (CG-70) cruiser. (Photo: U.S. Navy)

Kilby intimated the service is keeping to the 2027 focus from former CNO Adm. Lisa Franchetti’s NAVPLAN, which includes targets of being able to sustain an 80 percent combat surge ready posture for ships, submarines and aircraft; integrate proven robotic and autonomous systems for routine use, and all fleet headquarters have ready Maritime Operations Centers (MOCs) certified and proficient in necessary function, starting with the Pacific Fleet (Defense Daily, Sept. 18).

He confirmed the Navy’s focus is still initially fielding a certain level of unmanned capability by 2027 to improve Pacific region capabilities. Past 2027,  the Navy is focused on integration of unmanned and manned platforms “in a meaningful way.”

He underscored the upcoming MQ-25 Stingray carrier-based unmanned tanker is the next big step that will later be expanded to other concepts.

“Beyond that, once we do that, I’m looking at sensors, I’m looking at electronic attack, possibly a loyal wingman concept. But I also have to have unmanned surface things helping me in that fight as well.”

Kilby also praised John Phelan, the new Secretary of the Navy.

I’m super encouraged by Secretary Phelan, our new secretary. He has been in the office just a short time, but he is a force to be reckoned with, and I’m excited to partner with him to get after shipbuilding in a manner we haven’t before.”

Kilby was unwilling to comment on what affects the Trump administration’s steel and aluminum tariffs may have on shipbuilding costs.

“Too early for me to understand and I’m way out of my comfort zone about what impact the tariffs might or might not have.”