The U.S. Navy’s push to fund shipbuilding through its research and development (R&D) budget has paid off. Because the rules that govern R&D spending are more lenient than those for ordinary procurement, the service was able to begin building a new Littoral Combat Ship (LCS) in October even though the 2006 defense authorization and appropriations bills have yet to pass Congress or be signed by the president. When the Navy signed a $223 million construction contract with General Dynamics on Oct. 14, congressional budget watchdogs and even some lawmakers wondered whether the service had overstepped its authority by agreeing to buy a ship before it had money in hand to do so. The Navy action appeared to violate federal funding laws that date as far back as 1861.