The U.S. Navy, in compliance with the Fiscal Responsibility Act of 2023, has outlined a fiscal plan for FY 2025 that has sparked significant debate among Congress members due to its potential impact on the naval shipbuilding industrial base and international partnerships. The budget proposes the acquisition of six battle force ships, a figure overshadowed by the decommissioning of 19, and most notably, reduces the usual procurement of two Virginia-class submarines to a single vessel.
As it stands, the industry is constructing Virginia-class submarines at an approximate rate of 1.3 boats annually. Navy officials defend the FY 2025 proposal, citing a backlog at General Dynamics Electric Boat and HII’s Newport News Shipbuilding to justify the reduced procurement. They posit that an infusion of multi-billion dollar funding into the submarine industrial base will avert supplier disruptions. Nonetheless, Rep. Joe Courtney (D-Conn.) has contested the Navy’s projections during a House Armed Services seapower and projection forces subcommittee hearing, voicing concerns about the potential withdrawal of $1 billion from the program and questioning the benefits for the wider range of companies within the industrial base.
Courtney highlighted the potential sunk costs from advanced procurement funding received in FY 2023 and FY 2024, pointing out the Navy’s failure to demonstrate how these funds will be utilized now that procurement has been halved for FY 2025. He emphasized the uncertainty this creates for domestic suppliers and their workforce, especially for those who may not benefit from the advanced procurement funding and are thus facing a “50 percent cut.”
Addressing the submarine industrial base (SIB), the Navy has yet to provide a detailed account of its planned usage for the over $17 billion allocated for the next five years across maintenance, new production, and public shipyard infrastructure improvements. Some of the SIB funds are earmarked for projects like upgrading drydocks as part of the Shipyard Infrastructure Optimization Plan (SIOP).
The congressional apprehension also extends to international implications. The reduction in submarine procurement could affect the tripartite AUKUS submarine agreement between the U.K., the U.S., and Australia. Rep. Trent Kelly (R-Miss.) remarked that cutting an attack submarine will not enable the U.S. to reach the build rate necessary to support Australian requirements.
Sen. Jon Tester (D-Mont.) echoed this sentiment, criticizing delays in various naval programs and demanding accountability. He highlighted the urgency that headlines and delays in shipbuilding should prompt within the Navy and industry, inquiring about the actions being taken to resolve such issues.
In contrast, the Congressional Research Service report dated April 24, 2024, indicates a somewhat brighter future for amphibious warship programs, citing the Navy’s intention to include three additional LPD-17 Flight II class ships in the FY2025 five-year shipbuilding plan, potentially maintaining a fleet of 31 amphibious ships.
Relevant articles:
– Navy’s Single Sub Buy Plan Raises Concerns with Congress, USNI, 04/28/2024
– Report to Congress on U.S. Amphibious Warship Programs, USNI News, Thu, 25 Apr 2024 13:17:00 GMT
– Biden promise to rival China on shipbuilding faces a big economic problem, CNBC, Thu, 25 Apr 2024 11:30:01 GMT