The U.S. Navy’s fiscal 2025 budget request prioritizes undersea warfare capabilities with funding for one Virginia-class attack submarine instead of two. Industry struggles to keep up with a delivery rate of two per year, prompting the Navy to make significant investments in the submarine-industrial base to support future production rates. The budget also includes funding for advance procurement of future submarines, aiming to set up the supplier base for needed production rates. Long-term plans show intentions to purchase more boats in the coming years to ensure success in both Virginia and Columbia programs.
Rear Adm. Ben Reynolds shared that the total submarine-industrial base funding for FY25 alone will be $3.9 billion, reflecting a significant increase compared to last year’s planned spending. In the face of challenges, the Navy emphasizes the importance of sustaining the supply chain to meet future American and AUKUS alliance needs. Despite this, additional funding requested in a stalled supplemental package highlights the ongoing uncertainty surrounding financial support for the supply chain.
The substantial spending on the industrial base is crucial in reaching production goals for Columbia and Virginia submarines, with a potential total of at least $16.8 billion by FY29 if all proposed funding passes. With the Navy’s emphasis on undersea capability and long-term success, efforts are focused on ensuring stable funding for the submarine-industrial base to meet future defense needs.
