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Authority to use incremental funding for the construction of a Guided Missile Destroyer (DDG)

Division A · Title I: Procurement · Subtitle C: Navy Programs

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The Navy is allowed to use funds in stages to pay for building one Guided Missile Destroyer in 2027. Any contract for this must state that payments depend on available funding and that the government's financial responsibility if the contract ends early is limited to the amount already paid.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 128.
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(a) In general

Amounts authorized to be appropriated by this Act or otherwise made available for the Navy for Shipbuilding and Conversion for fiscal year 2027 may be used by the Secretary of the Navy to enter into an incrementally funded contract for the construction of one Guided Missile Destroyer (DDG).

(b) Availability of funds and termination liability

A contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose, and that total liability to the Government for the termination of the contract shall be limited to the total amount of funding obligated at time of termination.