White House asks Congress for extra $5.7B for submarine cost overruns
WASHINGTON — The White House asked Congress to provide about $5.7 billion in additional funds to cover cost overruns for three Virginia-class submarines, as well as for shipyard enhancements and higher wages to attract welders, pipefitters and engineers.
Roughly $3.5 billion of the request is to cover the projected extra costs for the three submarines, according to a senior Navy official who briefed reporters Monday. The remainder would be used for productivity improvement and wage increases at shipyards, which the Navy expects will speed up the use of robotics and other automation enhancements, as well as to stockpile key parts, the official said.
Representative Ken Calvert of California, chairman of the House defense appropriations subcommittee, disclosed in September that the Virginia-class submarine program is projected to run $17 billion over its planned budget through 2030. That shortfall could potentially increase the program’s already projected $184 billion total cost.
The special funding request from the Office of Management and Budget is necessary because the federal budget for the current fiscal year is operating through Dec. 20 under stopgap funding known as a continuing resolution, which keeps spending frozen at fiscal 2024 levels.
The Navy is requesting Congress add the funding to the next CR or the full-year spending bill if lawmakers complete that by the deadline.
The Navy also projects delivery delays of 24 to 36 months for the Virginia-class submarines, which are built by General Dynamics Corp. and Huntington Ingalls Industries Inc.
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