Severe budget cuts to the U.S. Navy have raised alarms over the health of its shipbuilding industry and the readiness of its fleet, according to recent reports.
Congress has slashed the Navy’s shipbuilding budget from $37 billion to $20 billion, forcing the cancellation of two Virginia-class submarines and two Arleigh Burke-class destroyers. Senator Roger Wicker warns that this could destabilize the shipbuilding industry, disrupt the workforce, and inflate future costs.
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| U.S. Arleigh Burke Flight III destroyer |
A recent Government Accountability Office audit revealed the Columbia-class submarine program is severely over budget. The first vessel, commissioned on June 4, 2022, has cost over $10 billion — more than six times the contractor’s estimate and five times what the Navy projected . This ballooning timeline, originally meant to deliver the sub by 2028, is now at risk of delay.
Although the Ohio-class nuclear submarines that make up the core of the sea-based nuclear triad are aging—some over 40 years old, the youngest just 27—Columbia-class subs remain essential.
Ticonderoga-Class Cruisers: Costly Modernization Coming Undone
An attempt under the Obama administration to modernize seven Ticonderoga-class cruisers has been deemed a failure. Congress allocated $3.7 billion in 2015, yet by 2020 four ships were scrapped after $1.84 billion had been spent. These ships, some as old as 33 years, faced repair costs ranging from $161 million to $745 million, leading to early decommissioning between 2022 and 2025 .
Three remaining cruisers received only minor upgrades, insufficient to extend their service life as initially planned. The Department of Defense attributes these setbacks to outdated shipyard facilities, pandemic-related disruptions, and a skilled labor shortage .
Shipyards Struggle to Meet Demand
Admiral Daryl Caudle, head of Naval Sea Systems Command, revealed one of the Navy’s structural challenges: limited dry docks and shipyard capacity. Existing facilities are running at maximum capacity, with little margin for expansion in the event of large-scale conflict .
Between 2015 and 2019, the Navy invested $2.8 billion to renovate shipyards, but still 75% of scheduled carrier and submarine maintenance at public yards was delayed. Private yards handled smaller ships more efficiently, but capacity remains tight.
Strategic Implications: Falling Behind China
The Navy acknowledges it is lagging behind China's rapid shipbuilding pace. As a result, Congress and the Department of the Navy are under pressure to allocate additional funding for shipyards like Portsmouth, Puget Sound, and Pearl Harbor, while also investing in workforce training . Sources warn that whoever controls shipbuilding capacity could determine the outcome in a future naval confrontation .
🚢 Bottom Line:
The U.S. Navy’s strategic dominance is threatened by funding shortfalls, aging infrastructure, and lagging construction capacity. With critical programs over budget and shipyards overstretched, a renewed emphasis on modernization and long-term investment is essential to maintain America’s maritime edge.
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