The U.S. Coast Guard’s Infrastructure Crisis: $7 Billion in Unmet Needs and Growing Challenges
The U.S. Government Accountability Office (GAO) has released a new report detailing the dire state of the Coast Guard’s shore infrastructure, highlighting a growing backlog of projects now estimated to cost at least $7 billion to address. The report, Coast Guard Shore Infrastructure: More Than $7 Billion Reportedly Needed to Address Deteriorating Assets (GAO-25-107851), underscores the critical need for investment and improved management practices to maintain the Coast Guard’s operational readiness.
According to the report, nearly half of the Coast Guard’s shore infrastructure—comprising piers, housing, training facilities, and essential operational assets—is beyond its expected service life. Since 2019, the backlog of maintenance and new construction projects has more than doubled, reflecting years of deferred maintenance and budget shortfalls. The GAO had previously made six recommendations to improve infrastructure management, but only two have been fully implemented, with partial progress on three others. Notably, the Coast Guard has yet to establish robust analytical tools to predict investment outcomes and optimize resource allocation, leaving decision-makers without critical cost-saving insights.
One of the report’s key findings is the ongoing misalignment between the Coast Guard’s identified funding needs and the actual budget allocated by Congress. Despite the Coast Guard’s own assessments calling for increased infrastructure funding—rising from $439 million in FY 2019 to $709 million in FY 2025—the President’s budget requests have consistently fallen short, with the FY 2025 request at just $167 million. Even actual appropriations, which have varied from $255 million in FY 2019 to $415 million in FY 2024, have failed to meet the Coast Guard’s targets, exacerbating the backlog and leading to more costly repairs down the line.
The consequences of underinvestment are significant. Deteriorating facilities impact the Coast Guard’s ability to carry out its vital missions, including search and rescue operations, law enforcement, and environmental protection. The report provides specific examples of failing infrastructure, such as sinkholes at maintenance yards that restrict movement and outdated housing that no longer meets modern standards. Additionally, the Coast Guard’s estimates of its backlog may be understated, as not all projects have updated cost estimates, nor have inflation adjustments been consistently applied. For example, a waterfront recapitalization project in Rockland, Maine, has retained the same cost estimate of $40.7 million since 2020, despite inflation suggesting it should be closer to $48.2 million.
The GAO warns that without addressing these challenges, the Coast Guard will continue to face mounting costs and operational risks. Implementing all six of the GAO’s recommendations, particularly those related to predictive modeling and transparent budget reporting, could lead to more efficient use of resources and better long-term planning. However, the Coast Guard has yet to fully integrate these strategies, and its ongoing reliance on short-term budgetary fixes continues to place strain on its infrastructure.
Ultimately, the report paints a picture of an agency struggling to maintain its physical assets amid chronic underfunding and bureaucratic inertia. The GAO emphasizes that increased funding alone will not solve the problem—structural changes in budget planning, project prioritization, and data-driven decision-making are equally necessary. As Congress considers future budget appropriations, the extent to which the Coast Guard can modernize its approach to infrastructure management will play a decisive role in shaping the service’s operational effectiveness in the coming years.
Disclaimer:
This blog post is a summary of the GAO report and does not guarantee accuracy or provide legal advice. Readers should consult the original report and relevant authorities for official guidance.
