The U.S. Navy could finalize a multiyear contract for the acquisition of 15 new nuclear-powered submarines before the end of the year, following months of negotiations delayed by rising labor and material costs. The news was confirmed by officials from Huntington Ingalls Industries (HII) during the company’s latest quarterly earnings conference.
The agreement—currently under discussion between the U.S. Navy and the shipyards HII Newport News Shipbuilding and General Dynamics Electric Boat—covers the purchase of ten Virginia-class Block VI attack submarines and five Columbia-class ballistic missile submarines, explained HII CEO Chris Kastner. “The team is working very hard to get it done before the end of the year,” Kastner stated. “The Navy is evaluating how to proceed in the context of the government shutdown and a potential continuing resolution to ensure we can award the ships.”
According to Kastner, both shipbuilding funding and contract negotiations continued during the partial U.S. government shutdown. Within the framework of the defense budget and the Reconciliation Act, the Pentagon had allocated $1.5 billion for the advance procurement of the first Block VI submarine—the future USS Potomac (SSN-814)—corresponding to fiscal year 2024. For fiscal year 2025, Congress approved an additional $3.6 billion for that vessel and another $3.7 billion for advance procurement of submarines scheduled for fiscal years 2026 and 2027.
The Virginia-class Block VI submarines will incorporate the Virginia Payload Module (VPM), designed to provide the Navy with a large-scale land-attack missile launch platform, replacing the capabilities of the retiring Ohio-class submarines. The Navy estimates it will need at least 20 submarines equipped with this module to compensate for the Ohio-class retirements.
In April, the U.S. Navy awarded Electric Boat and Newport News $18.5 billion in contracts for the final two Block V submarines—the future USS Baltimore (SSN-812) and USS Atlanta (SSN-813)—including additional funds for workforce wage increases. “After completing negotiations for two submarines earlier this year, our teams focused on the Block VI and the upcoming Columbia contract, working to have them ready toward the end of 2025,” Kastner added.
Progress on the Virginia Program
In parallel, the U.S. Navy continues to commission new Virginia-class units. In April, the USS Iowa (SSN-797) entered active service as the twenty-fourth submarine of the series and the third to bear the name of the state of Iowa. The ceremony took place at the Naval Submarine Base New London in Connecticut.
Ordered in 2014 and with its keel laid in 2019, the Iowa was christened in 2023 and delivered at the end of 2024. Built under the Block IV configuration, it is designed to reduce maintenance periods and increase operational availability. The vessel measures 114 meters in length, 10 meters in beam, displaces 7,800 tons, and carries a crew of 135. Its reactor does not require refueling throughout its service life.
The Columbia Program: A Strategic Priority
Regarding the Columbia program, the U.S. Navy continues advancing the renewal of its fleet of nuclear-powered ballistic missile submarines, a central pillar of its strategic deterrence. In August, the keel-laying ceremony for the USS Wisconsin (SSBN-827)—the second unit of the class—was held at General Dynamics Electric Boat facilities in Rhode Island.
General Dynamics reported that the lead vessel of the series, the USS District of Columbia (SSBN-826), recently reached 60% completion. By the end of this year, the main hull modules are expected to be ready for assembly, marking one of the most significant milestones in the program.
The project envisions the construction of 12 Columbia-class submarines to replace the current Ohio-class boats, which have been in service since the 1980s. These vessels, displacing around 21,000 tons, will feature modernized command systems, enhanced acoustic stealth, and long-life reactors, ensuring operational capability well into the mid-21st century.
International Context and Cooperation with Allies
The strengthening of the U.S. submarine fleet comes amid growing cooperation with allied nations. In October, President Donald Trump confirmed that his administration will sell Virginia-class submarines to the Royal Australian Navy under the AUKUS security pact signed in 2021 with the United Kingdom.
During his meeting with Australian Prime Minister Anthony Albanese, Trump stated that the program “is progressing quickly and very well” and that technology transfers are “already underway.” Under the agreement, Australia will acquire between three and five Virginia-class submarines before beginning local construction of the future SSN-AUKUS class, expected to enter service in the 2040s.
With the imminent signing of the multiyear contract with HII and the expansion of its attack and strategic submarine programs, the U.S. Navy aims to strengthen its industrial capacity and maintain its undersea superiority in an increasingly competitive global environment.
Images for illustrative purposes only.
