Bipartisan Bill Aims to Ensure Pay for Virginia Shipyard Workers Amid Shutdown

RICHMOND, Va. — The ongoing government shutdown has left Virginia shipyard employees working without pay and uncertain when relief will come.

Republican U.S. Rep. Jen Kiggans co-sponsored a bipartisan bill known as the Pay Our Public Shipyard Workers Act on Oct. 3. The bill would ensure U.S. civilian and military public shipyard workers continue to be paid during government shutdowns. It was placed in the House Appropriations Committee, but no action has been taken as of Oct. 27.

The federal government shut down on Oct. 1, leaving many without work or required to work without pay.

At Portsmouth Naval Shipyard, 280 employees were furloughed during the current shutdown, according to a release from Kiggans’ team. The remaining 6,400 members of the workforce were considered essential and required to work without pay.

The shutdown impacts government workers and contractors, and ripples into the private shipyard industry.

William & Mary conducted an economic impact study in 2023 stating ship repair industries contribute $10.9 billion to Virginia’s gross state product, support approximately 79,000 jobs in the state, and generate $6.2 billion in labor income.

Virginia leads the nation with at least 33,500 employees working directly in the shipbuilding and repair private industry, according to the Maritime Administration.

The state also leads when measuring direct, indirect, and induced employment connected with the private industry, according to 2021 data. There were almost 62% more jobs offered in Virginia than in California, which had the second-highest rate of employees.

“In Hampton Roads, our shipyard workforce supports thousands of families,” stated Kiggans in an email to Capital News Service. “Day in and day out, these dedicated civilians report for duty to serve the nation.”

The lack of federal security can cause anxiety for workers, Kiggans stated. The ability to pay mortgage bills, groceries, child care, and medical care is uncertain.

“This legislation protects our national security by keeping faith with the men and women who serve our public shipyards,” Kiggans stated.

If the government shutdown continues, Huntington Ingalls Industries will work with congressional representatives to minimize any disruption, a company spokesperson said. Huntington Ingalls Industries is the largest military shipbuilding company in the U.S.

People will need alternative ways to fill daily financial gaps from the lack of pay, according to Daniel Diaz, communications manager at USAA Federal Savings Bank. USAA works exclusively with U.S. military members, veterans, and their families.

USAA is offering zero-interest loans to impacted eligible members affected by the government shutdown, according to Diaz.

“Communities will certainly feel the short-term brunt, especially as impacted federal employees and service members are spending less,” Diaz said.

Federal employees should know that this does not need to be faced alone, Diaz said. There are relief organizations, financial institutions, and other groups ready to help.

USAA had distributed over $291 million in loans to over 80,000 members as of Oct. 22, according to Diaz.

Democratic U.S. Sen. Tim Kaine said he supports Kiggan’s bill. “I’m supporting laws that allow all to be paid,” Kaine said.

The shipbuilding and ship repair industry needs budget certainty and stability to help ensure national security and a strong economy, according to Kaine.

“From Newport News Shipbuilding, to Norfolk Naval Shipyard, and private shipyards across Virginia, the shipbuilding industry helps develop a highly skilled workforce, provides thousands of jobs, and benefits the Commonwealth’s economy,” Kaine stated earlier in a press release.

By Daijah Hinmon
VCU Capital News Service

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Communication. Students in the program provide state government coverage for a variety of media outlets in Virginia.