Modernizing the Mission: The Coast Guard’s Fiscal Strategy for the Future

Original Broadcast 5/4/25

Rear Admiral Matt Lake, Assistant Commandant of the Coast Guard for Resources and its Chief Financial Officer, has one of the toughest balancing acts in federal financial management. In his interview on Fed Gov Today, he explained how the service is simultaneously supporting high-tempo front-line operations while undertaking a massive recapitalization effort.

“We’re still operating ships from the 1960s,” Lake noted. These medium endurance cutters, crucial for missions like drug interdiction and search and rescue, are decades past their prime. Modernizing the fleet is not just a necessity—it’s a strategic priority. But doing so while sustaining daily operations, including surge missions at the southern border, requires precise financial stewardship.

A recent success story was the acquisition of a commercially available icebreaker—something the Coast Guard and Congress have been pursuing for years. Lake praised the speed of execution: “From appropriation to acquisition, it took months, not years.” This was made possible by both funding and legislative flexibility, demonstrating that acquisition agility is possible when mission urgency aligns with opportunity.

Lake believes there are broader lessons here. “The Coast Guard doesn’t always need unique platforms. Often, commercial off-the-shelf solutions are sufficient, and we can save time and money by being open to them,” he said. The key, he emphasized, is managing expectations about performance tradeoffs while keeping focus on rapid mission delivery.

Infrastructure investments also remain a major part of the Coast Guard’s portfolio. Recent hurricane rebuilding efforts have included designs for greater resilience, helping facilities withstand future storms. Looking forward, bases in locations like Seattle, Charleston, and Newport are being expanded to support new, larger vessels and aircraft.

Sustainability is the CFO’s watchword. “You don’t want to buy a high-end asset and then not be able to afford maintenance,” Lake said. Long-term cost planning, workforce development, and organic maintenance capacity are all central to the Coast Guard’s financial posture. Having previously led the Coast Guard Yard—the service’s in-house shipyard—Lake understands the industrial side of acquisition and budgeting. “It can take decades to build skilled workforces,” he said, noting the importance of steady, predictable planning to support both government and industry capabilities.

Looking ahead, Lake’s biggest concern is continuity of funding and program momentum. “We’ve got strong support now,” he said. “The challenge is maintaining it over time.” His strategy: deliver visible success, show the return on investment, and remind the public and policymakers of the essential services the Coast Guard provides.

“The value is not in the assets themselves, but in the mission they enable,” he concluded.