(NewsNation) — In an attempt to close the gap with China, the United States is investing more funds in its military might.

China has the world's largest navy by a substantial margin. China fields 370 ships, compared to the United States' 291. That's not only smaller than China's, it's 64 ships short of the U.S. Navy's legal requirement.

In an attempt to upskill the next generation, the Pentagon wants to build new ships and submarines and gave a $10 million grant to the Mike Rowe Works Foundation.

Rowe joined "On Balance" to discuss how he will deploy the grant to train new welders, pipefitters, electricians and shipbuilders via scholarships.

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"There are a lot of reasons for it, but underneath it is math and time for every five tradespeople that retire to come in. It's been that way for 12 years," Rowe said of the widening skills gap in the industry.

"And while that's been happening, as Scott Bessent said, the country fell asleep. We very slowly abdicated the health of our own industrial base to China. As you mentioned, China's made nearly 1,000 ships this year. We made like six or seven. So a lot of things, a lot of chickens have come home to roost," Rowe told Leland Vittert on Friday.

Rowe argued the current skills and demand gap is a reflection of American society's general preference for a college education over a trade.

"We have $1.7 trillion of outstanding student debt today. We have nearly seven million open positions that we're still lending money we don't have to kids who are never going to pay it back to train them for jobs that don't exist anymore. That's crazy," he said.

In a release earlier this month, the Pentagon was investing the $10 million "to support the mikeroweWORKS Foundation Scholarship program."

As for who may be eligible for a work ethic scholarship, Rowe said the scholarship process is anything but elementary.

"We're picky. We're stingy. You don't get it just because you have a pulse," he said.

"The $10 million is for me to lean harder publicly and make sure the message gets delivered. … The government has 400,000 open positions that are AI-proof, six-figure jobs, and we just have to spread the word."

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