US Congress shapes funding two Virginia-class subs amidst budget limits

Significant figures, like Joe Courtney, who serves on the House Armed Services Committee, foresee the defense policy bill for the fiscal year 2025 potentially approving the acquisition of an additional submarine. These drafts might also provide a glimpse into how such a substantial investment would be funded.

“Even though the House Armed Services Committee [HASC] is still considering various options, nothing is certain until the final decision is made. However, I’m hopeful that we can find a way to fund an additional submarine, despite potential spending restrictions,” Courtney told reporters, Bulgarian Military reports.

Willingness to spend

Committee Chairman Mike Rogers from Alabama assures that the set budget will remain untouched during the bill revision. On the other hand, committee member Rob Wittman from Virginia is looking into the budget for possible tweaks. These tweaks could offset any funding cuts and accommodate an extra submarine.

Senate supporters from both political parties are willing to go beyond the set spending limits. This flexibility was a condition set by House Republicans before they would agree to raise the debt ceiling back in May.

Courtney suggests that lawmakers are prepared to find ways to adjust the budget for submarine funding. However, he also believes that exceeding the FRA cap could make this process easier. “Going beyond the limit could make things easier by lessening the need to pull money from elsewhere,” he stated in a May 9 interview.

Even though a single Virginia-class submarine usually costs billions of dollars, Representative Joe Courtney highlighted that adding another vessel could end up being cost-effective due to the significant investments already made into its construction during FY-23 and FY-24. He mentioned, “The costs for the reactor and certain parts of the ship have already been covered.”

“Two Sub Joe”

Connecticut district representative Joe Courtney is known for his support of submarine manufacturing in his district. General Dynamics Electric Boat, a submarine manufacturer, is based there. He earned the nickname “Two Sub Joe” for his consistent push to produce two Virginia-class submarines every year. Recently, he garnered support from over 100 other lawmakers, from both parties, in writing a letter to defense appropriators. They asked for funding for both submarines to be restored. To date, a total of 133 lawmakers have come on board.

Incidentally, this isn’t a new move for lawmakers to add submarines to the budget. Since he took office in 2006, Courtney has managed to do this three times in the past – in 2007, 2013, and again recently in 2020. Each time, he persuaded Congress to put a Virginia submarine back into the budget. This was necessary after it was removed by the Trump administration.

“We’ve been through this before. We understand the importance of careful assessment, especially when we have other important matters that need the same level of attention,” he said. “Having faced this situation three times before, I can confidently say that we have a team that fully grasps how to handle this process correctly.”

Ambiguities

The Navy’s budget of $257.6 billion isn’t being held back by federal spending limitations. Rather, the decision to order just one Virginia submarine is due to the pressures facing the shipbuilding industry. This sector, which is currently able to produce about 1.2 Virginia submarines a year, is somewhat stretched thin.

In response, the Navy hopes to boost the industry by investing an extra $3.9 billion into submarine production over the next fiscal year. Beyond that, they’re planning to spend an additional $11.1 billion over the next five years to help this struggling sector.

However, Courtney reminds us that simply injecting more cash doesn’t replace consistent funding for procurements, especially because it doesn’t reach every part of the supply chain.

Unpredictable trends

The Navy’s initiative is focused on funding “long-lead-item advanced procurement”. This term mainly refers to equipment needed in the early construction stages. But Courtney points out that this overlooks many contractors who provide non-long-lead items, like ship controls and weapon systems.

“When looking at the Navy’s advanced procurement resources for 2025, some suppliers realize they are not part of the production plan,” Courtney noted. He was referring to a conversation he had with a supplier who decided to put off buying new equipment after examining the budget.

On top of this, Courtney added, “The Navy’s unpredictable procurement trends are causing problems for our major submarine suppliers. The future of their investments in new production facilities and machinery is uncertain. And let’s be clear – these investments don’t come cheap.”

Disturbingly short budget

Electric Boat and HII, the two major manufacturers of the Virginia- and Columbia-class ballistic missile submarines, have clearly stated that the defense budget proposed by the Navy is short by an alarming $1 billion to sustain the supply chain.

Courtney is hopeful that both shipbuilding organizations are prepared to build an extra FY-25 Virginia-class submarine, should such a need arise.

He explained, “Producing two submarines each year means we keep the production rate steady, we’re not reducing it. The best way to keep the supply chain active is to consistently have a demand and to progress.”