[U.S. Navy Allocates $76.6 Billion to Build 9 Virginia-class and 5 Columbia-class Nuclear Submarines]

According to USNI News on July 29, 2026: On Wednesday, the U.S. Navy awarded a $76.6 billion submarine construction contract to General Dynamics Electric Boat and Huntington Ingalls Industries (HII), for procuring the next batch of attack nuclear submarines and ballistic missile nuclear submarines—projects that had been delayed by nearly three years.

A U.S. Navy official confirmed to USNI News on Wednesday that this massive contract is allocated as follows: $42.1 billion for building nine Virginia-class attack submarines in the sixth batch, along with early materials for the tenth vessel; $29.5 billion for constructing five second-batch Columbia-class ballistic missile nuclear submarines, which will comprehensively modernize the sea-based component of America’s nuclear triad deterrent; and the remaining $5 billion for joint workforce upskilling initiatives at both shipyards.

The Department of Defense's contract announcement issued on July 29 stated: "The funding for the sixth batch includes previously separately approved pre-production material contracts, covering long-lead-time and economy-of-scale procurement items. This announcement also incorporates previously allocated funds dedicated to enhancing shipyard production efficiency."

The Columbia-class and Virginia-class nuclear submarines are jointly built by Electric Boat and HII’s Newport News Shipbuilding. HII is responsible for manufacturing the bow, stern, and various modular sections; Electric Boat handles the construction of the pressure hull mid-body segment and integrates the reactor system within that section; for the Columbia-class submarines, the launch tubes for Trident II D5 ballistic missiles are also built by Electric Boat. The sixth batch of Virginia-class submarines represents the second group to incorporate the Virginia Payload Module (VPM), capable of carrying Tomahawk land-attack cruise missiles or future U.S. Navy long-range hypersonic strike missiles.

In a Navy official statement, Rear Admiral Robert Gough, Program Executive Officer for Submarines, said: "This historic, multi-billion-dollar investment clearly demonstrates the U.S. Department of Defense’s unwavering commitment to maintaining underwater combat superiority and modernizing the nuclear triad deterrent capability."

USNI News previously reported that since the post-pandemic period, submarine construction costs have continued to surge, requiring years of arduous negotiations between the U.S. Navy and the two major submarine builders before finally finalizing this contract.

Mark Rees, President of General Dynamics Electric Boat, issued a statement saying: "This critical contract amendment provides stable order visibility for Electric Boat and its entire supply chain. We will continue expanding our production capacity and recruiting the necessary technical talent to ensure these core national security assets are delivered on schedule."

Kari Wilkinson, President of HII’s Newport News Shipbuilding, commented: "We remain committed to building nuclear-powered submarines that protect national security. This contract enables the U.S. domestic shipbuilding industry to act on this mission in tangible ways. We are honored to serve the military and the nation."

The delay in Virginia-class submarine procurement dates back to at least 2022. During the Biden administration, the U.S. Navy and General Dynamics were locked in an 18-month standoff over missile liability compensation issues while negotiating the final two submarines of the fifth batch. Although the compensation dispute was eventually resolved, the resulting contract delays triggered a ripple effect, directly impacting subsequent batch procurement talks.

After resolving the compensation issue, the peak inflation period during the pandemic led to significant wage increases across shipyards, requiring the Navy and the two shipyards to spend several years reaching agreements on labor compensation.

A key driver behind the soaring submarine costs is the severe shortage of skilled shipbuilding labor: many experienced shipbuilders retired en masse during the pandemic. Both Newport News and Electric Boat face intense competition from industries such as food service in attracting and retaining talent, where pay rates are now nearly comparable to those offered by shipyards.

After two years of negotiation, the parties finally finalized the contract for the last two Virginia-class submarines in the fifth batch. In April 2025, the U.S. Navy approved a $18.5 billion contract to build the USS Baltimore (SSN-812) and USS Atlanta (SSN-813), two follow-on attack submarines, accompanied by dedicated labor cost subsidies.

The successful execution of the fifth batch contract cleared the way for the U.S. Navy, General Dynamics, and HII to begin negotiations on the sixth batch of Virginia-class submarines and the second batch of Columbia-class strategic nuclear submarines.

In FY2025, Congress specifically allocated $3.6 billion for the construction of the USS Potomac (SSN-814), and another $3.7 billion was allocated for preprocurement preparations for submarines in FY2026 and FY2027.

The lead vessel of the second batch of Columbia-class submarines is the USS Groton (SSBN-828), the third unit in the class. According to U.S. Navy budget projections, the total cost for all 12 Columbia-class submarines is expected to reach $128 billion. The first submarine, USS District of Columbia (SSBN-828), is scheduled for delivery to the Navy in March 2029, followed by the second vessel, USS Wisconsin (SSBN-827), expected in April 2030.

Following the official announcement of the contract, Democratic Representative Joe Courtney of Connecticut, a longtime advocate for both the Virginia-class and Columbia-class submarine programs, publicly praised the contract approval.

“The contracts authorized by Congress in 2023 and 2025 for the sixth batch of Virginia-class and the second batch of Columbia-class submarines send strong, stable, long-term signals to the entire U.S. submarine industrial base. Combined, these two contracts constitute the largest single shipbuilding procurement in American history. The multi-year procurement commitment made by Congress and the Navy ensures job stability for both submarine yards and thousands of suppliers well into the late 2030s. Furthermore, the AUKUS agreement to sell three active Virginia-class submarines to Australia in the 2030s will further solidify the stability of this entire industrial ecosystem,” Courtney stated.

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Original article: toutiao.com/article/1872089824575754/

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