A week after taking command, Moosally and his executive officer, Mike Fahey, canceled a planned $1 million repair package for Iowas main gun batteries, including repairs to the main gun turrets' lighting, electrical, powder hoists, and hydraulic systems—75 detailed deficiencies in all; instead, the funds were spent on overhauling the ship's powerplant.Thompson, pp. 46–47. In August 1988, Iowa set sail on sea trials around the Chesapeake Bay area and then began refresher training in the waters around Florida and Puerto Rico in October.Thompson, pp. 51–57. – According to Thompson, a grounding incident occurred on 25 August when, apparently encountering difficulty in conning the ship through shallow water, Iowa, with Moosally at the helm, narrowly missed colliding with the frigates and and the cruiser before running aground in soft mud outside the bay's main ship channel near the Thimble Shoals. After one hour, Iowa was able to extricate herself without damage and return to port (Thompson, pp. 58–60).
