January 08, 2025
News

CBO: Navy’s 2025 shipbuilding plan would cost $40BN a year

Written by Nick Blenkey

Image:CBO

The non-partisan Congressional Budget Office (CBO) has released its analysis of the U.S. Navy’s 2025 30-year shipbuilding plan. As in its previous analyses of Navy shipbuilding plans, the CBO finds that the cost of the plan would be higher than Navy estimates.

Here are some highlights from the report:.

Cost. The Navy’s 2025 plan would cost 46 percent more annually in real terms (that is, adjusted to remove the effects of inflation) than the average amount appropriated over the past 5 years. CBO estimates that total shipbuilding costs would average $40 billion (in 2024 dollars) over the next 30 years, which is about 17 percent more than the Navy estimates. CBO’s estimates for the 2025 plan range from 8 percent to 16 percent higher in real terms than its estimates for the three alternatives in the Navy’s 2024 plan. Including the costs of operating and maintaining those ships, buying new aircraft and weapons, and funding the Marine Corps, the Navy’s total budget would need to increase from $255 billion today to $340 billion (in 2024 dollars) in 2054 to implement the 2025 plan.

Fleet Size. The number of battle force ships would increase from 295 today to 390 in 2054. Before increasing, however, the fleet would become smaller in the near term, falling to 283 ships in 2027.

Purchasing Plan. The Navy would purchase a total of 364 new combat ships and combat logistics and support ships. Overall, under the 2025 plan, the Navy would buy more current generation ships and more smaller ships than it would have purchased under any of the 2024 plan’s three alternatives.

Fleet Capabilities. The fleet’s firepower would be reduced over the next decade, but thereafter, as the fleet grew, its firepower would increase and become distributed among more ships.

Industrial Base. Over the next 30 years, the nation’s shipyards would need to produce substantially more naval tonnage than they have produced over the past 10 years. The rate of production of nuclear-powered submarines, in particular, would need to increase significantly.