DHS cancels delayed US Coast Guard cutter project, recovering $260m

The US Department of Homeland Security (DHS) has cancelled a delayed Coast Guard cutter project and recovered more than $260 million in unspent funds, DHS Secretary Kristi Noem confirmed this week.

The contract, which involved the construction of the 11th Legend-class national security cutter (NSC), was originally awarded to American military shipbuilder Huntington Ingalls Industries (HII) in 2021. The vessel was originally scheduled for delivery in 2024 but remains incomplete more than a year past its deadline.

“This project was over time and over budget,” said Noem in a DHS statement, while expressing the need "to be smart with the American taxpayer’s money."

In addition to the recovered funds, the US Coast Guard will retain approximately $135 million worth of parts from the cancelled vessel. These components will be repurposed to upgrade and maintain the existing fleet of 10 Legend-class cutters.

Noem thanked Huntington Ingalls for what she described as "good faith" negotiations during the cancellation process.