Posted on July 6, 2025
President Trump’s vast tax and spending bill has secured funds the U.S. Coast Guard has been searching for since the early 2010s. The “One Big Beautiful Bill Act” appropriates close to $9 billion for the expansion of the Coast Guard’s Arctic icebreaker fleet.
It also sets aside $300 million for infrastructure upgrades related to the homeporting of the newly acquired Storis icebreaker in Juneau, Alaska.
Rounding out the Arctic package, the U.S. Navy will also receive $115 million for the exploration and development of existing Polar infrastructure.
The bill provides $4.3 billion for Polar Security Cutters, the largest and most capable icebreakers the Coast Guard will be operating going forward. The first vessel of the type began construction earlier this year. The additional allocation closes the funding gap to allow for completion of at least three PSC cutters.
An additional $3.5 billion are reserved for medium-sized polar icebreakers, referred to as Arctic Security Cutters. The Coast Guard recently published a Request for Information outlining the vessel’s size, capability and endurance, among other details. The funding allocation should suffice for at least three vessels of the type, in part dependent on if the vessels are constructed in the U.S. or in cooperation with foreign shipyards at potentially a lower price point.
The trilateral ICE Pact, signed in November 2024, between the U.S., Canada, and Finland opens the door for joint icebreaker development. Western allies are expected to require between 70-90 icebreakers in the coming decade to replace aging vessels and expand their fleets. Germany and South Korea approved new constructions in recent months.
As recently as last week President Trump indicated that his administration was looking to acquire a used icebreaker from Finland and purchase two new vessels. Finnish yards and icebreaker designers, foremost Aker Arctic, have constructed the majority of the world’s ice-going vessels.
The extensive Arctic funding effort aims to counter the growing Russian and Chinese influence in the region. Russia operates around 40 icebreakers, including eight nuclear vessels, with at least four more on the way. While the majority of the fleet supports commercial oil and gas operations, the country’s naval forces of the Northern Fleet operate several armed “combat icebreakers.”
China has also completed several homegrown designs and engaged in joint Arctic patrols with Russian counterparts, including a four-vessel flotilla in proximity to Alaska in September 2024.
The funding allocation brings the U.S. Coast Guard significantly closer to its long-stated goal of needing to operate between 8-9 icebreakers. The timeframe for construction and commissioning of the vessels, however, remains an open question.
Construction of the initial PSC at Bollinger Shipyards in Mississippi has faced a multi-year delay pushing completion of the first heavy icebreaker in the U.S. in 50 years back by at least five years to 2030.
To streamline the development and construction of domestic icebreakers Bollinger and Edison Chouest Offshore launched the United Shipbuilding Alliance (USA) in May, aimed at creating U.S.-based manufacturing capacity for icebreakers. Similarly, Canadian builder Davie acquired several Texas assets, including Gulf Copper & Manufacturing, to turn the U.S. state into the country’s icebreaker hub.
If President Trump aims to see any new icebreaker funded by this week’s bill enter into service before the end of his term he will likely push for a mix of domestic and foreign-constructed vessels, though the latter would require a presidential waiver.
