CHULA VISTA (KGTV) — Local workers at a boat yard in Chula Vista are facing potential layoffs following President Donald Trump’s executive order pausing foreign aid, which has halted a multi-million dollar boat building contract with the U.S. Navy.
According to a memo from the Department of the Navy obtained by ABC 10News, a stop-work order was issued last week to Marine Group Boat Works, directing the company to halt production on two 35-meter patrol boats being constructed for Jordan, a key U.S. ally. The memo stated that this action was in accordance with the president’s directive for a 90-day freeze on foreign aid.
The patrol boat project, which commenced in 2020, has seen one of the boats reach approximately 70% completion.
Sources confirmed on Tuesday that layoff notifications were made to four workers at subcontractor Amee Bay: three electricians and one mechanic. If the stop-work order is not rescinded by Friday, those layoffs are set to take effect.
National security expert Ron Bee indicated that the decision surrounding the layoffs is closely tied to ongoing high-stakes talks between the United States and Jordan. President Trump met with Jordan's King Abdullah earlier this week, during which discussions revolved around the situation in Gaza.
"I think this was used by the president as a bargaining chip to try and promote his views on what should happen in the Middle East, namely that Jordan and Egypt should take Palestinian refugees while Gaza gets rebuilt," Bee said.
President Trump has previously threatened to withhold aid to Jordan unless the country agrees to accept refugees as part of his plan for Gaza's redevelopment. Jordan currently receives over $1 billion annually in U.S. aid. During the recent meeting, King Abdullah proposed taking in 2,000 sick and displaced Palestinian children, a suggestion President Trump reportedly welcomed.
However, Bee expressed skepticism about whether the offer from King Abdullah would be sufficient for the Trump administration to lift the pause on aid and allow shipbuilding to resume.
"Whether or not that is enough for the Trump administration to pause, lift the pause and start building ships again, I don't know, but I suspect that it is not enough," he stated.
ABC 10News reached out to the Navy, Marine Group Boat Works, and Amee Bay, and are waiting to hear back.
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