The US Navy has officially cancelled the Constellation-class frigate program, a move that marks a major shift in its surface fleet acquisition strategy. Navy Secretary John C. Phelan announced the decision on November 26, 2025, citing persistent cost overruns, design delays, and a need to accelerate fleet modernization. The program, originally awarded to Fincantieri Marinette Marine in Wisconsin, was intended to deliver up to 20 frigates based on the Italian FREMM design. However, after years of redesigns and technical challenges, the Navy has terminated contracts for the last four ships, while allowing work to continue on the first two vessels already under construction.

The decision follows a Government Accountability Office (GAO) report that highlighted the program’s struggles. The original design was 88% complete when the contract was awarded in 2020, but by 2025, the project was only 70% complete and three years behind schedule. The Navy’s insistence on numerous design changes led to significant weight growth, forcing the service to consider reducing the frigate’s speed requirement to compensate. The resulting vessel now bears little resemblance to the original FREMM design, undermining the risk-reduction rationale that justified the initial procurement.

Phelan emphasized that the Navy’s priority is to deliver ships faster and in greater numbers to meet evolving threats. The cancellation framework includes indemnities for Fincantieri to cover existing economic commitments and industrial impacts, ensuring the yard remains viable for future Navy contracts. The company has invested over $800 million in its US shipyards and employs 3,750 staff across four locations. Fincantieri expects to receive new orders for amphibious, icebreaking, and special mission ships to offset the loss of frigate work.

The cancellation has been welcomed by key lawmakers, including Senate Armed Services Committee Chairman Sen. Roger Wicker, who praised the Navy for restoring accountability and fixing program management. The move signals a broader effort to streamline acquisition and accelerate fleet growth, with the Navy now focused on rapidly fielding new classes of ships that better match current operational needs. The two remaining Constellation-class frigates will continue under review as the Navy evaluates their future role in the fleet.

This decision has significant implications for the US shipbuilding industrial base, as it reshapes the Navy’s partnership with Fincantieri and sets a precedent for future procurement strategies. The Navy’s ability to maintain workforce stability and yard viability during such transitions will be critical to sustaining its long-term shipbuilding capacity. The cancellation also underscores the challenges of adapting foreign designs for US requirements and the risks of extensive redesigns during major acquisition programs.

Industry analysts expect the Navy to pursue alternative frigate or corvette designs in the coming years, potentially leveraging lessons learned from the Constellation program. The focus will likely be on modular, adaptable platforms that can be built quickly and upgraded as needed. The cancellation of the Constellation-class frigate program represents a pivotal moment in US naval acquisition, reflecting the Navy’s commitment to delivering warfighting advantage at the pace required by today’s threat environment.