The Congressional Budget Office expects the Landing Ship Medium (LSM) program to cost billions of dollars more than the U.S. Navy previously estimated. The office estimated an 18-ship LSM program would cost between $6.2 billion and $7.8 billion in 2024 dollars, or $340 million to $430 million per ship, which is three times more than the Navy’s estimate.
The CBO, in a report released on April 11, noted that the program could cost between $11.9 billion and $15 billion in 2024 dollars if the service buys 35 ships. The report outlined challenges in predicting the cost due to uncertainty about the ship’s role, design, and cost, which creates inconsistencies between the Navy and Marine Corps.
Cost estimates depend on the concept of operations for LSMs. The report highlighted that using commercial standards for design would lower costs, whereas military standards would increase costs significantly. The number of ships the Navy ultimately decides to purchase will have a substantial impact on the total program cost.
The Navy had planned to start buying LSMs in fiscal 2023 but postponed it to fiscal 2025 for budgetary reasons. The vessels will have specific specifications, including a draft of 12 feet, length between 200-400 feet, and the ability to carry 50 Marines. The ultimate cost and design of the LSM program remain uncertain as the Navy and Marine Corps continue to navigate conflicting priorities.
