 As part of president Ronald Reagan's and Navy Secretary John Lehman's effort to create a 600-ship Navy, New Jersey was selected for reactivation in the spring of 1981, and she was towed from Puget Sound Naval Shipyard to Long Beach Naval Shipyard at the end of July 1981 for modernization / reactivation. At the time of the reactivation the Navy envisioned using New Jersey and her sister ship Iowa to meet sustained global requirements and relieve the strain on the Navy created by an increase in U.S. commitments to the Indian Ocean and Caribbean Sea regions. During this time the Navy developed several proposals to update their battleships to carry cruise missiles and anti-ship missiles, as well as point defense system mounts. Preliminary modernizations schemes included the removal of four of the ten 5 inch gun mounts on New Jersey to make room for the armored box launchers that would be required to carry and launch the BGM-109 Tomahawk missiles. At one point the NATO Sea Sparrow was to be installed on the reactivated battleships; however, it was determined that the system could not withstand the overpressure effects when firing the main battery.
