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Democratic congressman warns funding shortfall could hobble AUKUS

Democratic congressman Joe Courtney has warned the Biden administration’s decision to slash funding for building nuclear powered Virginia Class submarines could undermine AUKUS.

Anthony Albanese and US President Joe Biden in San Diego, California, in March 2023. Picture: Getty Images
Anthony Albanese and US President Joe Biden in San Diego, California, in March 2023. Picture: Getty Images

Democratic Party congressman Joe Courtney, a strong advocate of the AUKUS security pact, has warned the Biden administration’s cut in spending on nuclear powered submarines could scupper Australia’s acquisition of the coveted vessels.

Mr Courtney, who is the most senior Democrat on the House of Representatives Sea power Subcommittee, told Defence Secretary Lloyd Austin, who was testifying in congress, that the president’s latest budget would “make it harder” for a future US president to sell submarines to Australia as promised under AUKUS.

“Buying only one boat is a terrible signal for capital investment, and it tells adversaries that the US is not serious about rearming,” Mr Courtney told congress on Tuesday (Wednesday AEST), referring to the unexpected December cut in the Biden administration’s budget for Virginia Class submarines.

US Navy Virginia-class submarine USS Mississippi in Rockingham, WA, for a routine port visit.
US Navy Virginia-class submarine USS Mississippi in Rockingham, WA, for a routine port visit.

In March the Biden administration announced it would order only one Virginia class submarine in its 2025 budget request, down from two originally scheduled, well below the 2.33 a year build rate required in coming years to meet both the US and Australian navies’ requirements.

“The President of the United States is to certify the sale of three Virginia class submarines starting in 2032, 2035, and 2038. That president has to certify, when that time comes, that those sales are not going to degrade our own fleet,” Mr Courtney explained.

“I want to make sure that that decision is as easy as possible to make sure that the goal of AUKUS is going to be achieved. Cutting a sub from the inventory, which is what this budget proposal unfortunately does, in my opinion, makes that decision harder”.

Supply bottlenecks at the two major US submarine shipyards, run by General Dynamics and Huntington Ingalls Industries, saw funding allocated to Virginia class submarines drop by 24 per cent to US$8.2 billion in the Biden administration’s 2025 budget request.

Joe Courtney, member of the United States House of Representatives. Picture: Getty Images
Joe Courtney, member of the United States House of Representatives. Picture: Getty Images
US Defence Secretary Lloyd Austin. Picture: AFP
US Defence Secretary Lloyd Austin. Picture: AFP

US submarine yards have been plagued by production bottlenecks and worker shortages, as the US government seeks to bolster output significantly to ramp up submarine production across both nations as China takes an increasingly belligerent stances in the Pacific.

It’s uncertain how a future Trump presidency would handle the AUKUS pact, which emerged in late 2021 in a deal between Joe Biden, Scott Morrison and then UK prime minister Boris Johnson.

The alliance envisages Australia acquiring a fleet of US-built nuclear powered submarines ahead of plans to build a next generation fleet of nuclear powered submarines, dubbed SSN-AUKUS, in South Australia from the 2040s.

Mr Courtney, who represents a shipbuilding district in Connecticut, had already called out the surprise cut at the time.

“Given the new commitment the Department of Defence and Congress made last year to sell three submarines to our ally Australia, which I enthusiastically support, the ramifications of the Navy’s proposal will have a profound impact on both countries’ navies,” he said in a statement in March.

The government has promised to pay US$3bn to the US to help it bolster its submarine production capacity, as part of the estimated $368bn cost of the total AUKUS submarine program.

Read related topics:AUKUS
Adam Creighton
Adam CreightonWashington Correspondent

Adam Creighton is an award-winning journalist with a special interest in tax and financial policy. He was a Journalist in Residence at the University of Chicago’s Booth School of Business in 2019. He’s written for The Economist and The Wall Street Journal from London and Washington DC, and authored book chapters on superannuation for Oxford University Press. He started his career at the Reserve Bank of Australia and the Australian Prudential Regulation Authority. He holds a Bachelor of Economics with First Class Honours from the University of New South Wales, and Master of Philosophy in Economics from Balliol College, Oxford, where he was a Commonwealth Scholar.

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Original URL: https://www.theaustralian.com.au/world/democratic-congressman-warns-funding-shortfall-could-hobble-aukus/news-story/047552c39151d59b9259c1e0fc53af05