US Navy Orders $18B for Virginia-Class Submarines
- the U.S.Navy finalized an $18.5 billion contract modification on April 30 with General Dynamics Electric Boat and Newport News Shipbuilding for the Virginia-class submarine program.
- The significant investment addresses rising costs and production hurdles that have impacted the Virginia-class program.
- however, the COVID-19 pandemic, the war in Ukraine, and trade tensions led to increased material costs and labor shortages, rendering the 2019 contract unsustainable.
Table of Contents
- Navy Awards $18.5 Billion Contract for Virginia-Class Submarines
- Navy Awards $18.5 Billion Contract for Virginia-Class Submarines: Your Questions Answered
- What is the $18.5 Billion contract Modification?
- what is the Purpose of this Contract Modification?
- Why Was This Additional Funding Needed?
- What Will the Funds Be Used For?
- Who are the primary Contractors?
- What is the Virginia-Class Submarine Program?
- What are Virginia-Class Block V Submarines?
- What is the Virginia Payload Module (VPM)?
- What Weapons do Virginia-Class Submarines Carry?
- What Submarines are the Virginia-Class Replacing?
- What is the U.S. Navy’s Production Goal for Virginia-Class Submarines?
- How Many Virginia-Class Submarines Are Planned?
- Key differences Between Los Angeles-Class and Virginia-Class
the U.S.Navy finalized an $18.5 billion contract modification on April 30 with General Dynamics Electric Boat and Newport News Shipbuilding for the Virginia-class submarine program. The agreement, contingent upon all options being exercised, covers the procurement of two new Block V Virginia-class nuclear attack submarines (ssns), the future USS Baltimore (SSN-805) and USS Atlanta (SSN-806), and aims to stabilize the program amid financial challenges.
The significant investment addresses rising costs and production hurdles that have impacted the Virginia-class program. The initial contract for nine Block V submarines, awarded in December 2019, was valued at $22 billion. This figure increased to $24.1 billion in 2023 with the addition of a tenth submarine, resulting in an approximate cost of $2.4 billion per vessel.
however, the COVID-19 pandemic, the war in Ukraine, and trade tensions led to increased material costs and labor shortages, rendering the 2019 contract unsustainable. Program stakeholders requested additional funding in late 2024 to address these issues.
The $18.5 billion infusion is intended to cover the construction of the two new submarines, mitigate cost overruns on the ten previously ordered SSNs, and bolster the industrial base. Funds will be allocated to procuring essential materials and increasing wages to attract and retain skilled workers. The U.S. Navy aims to increase submarine production from the current average of 1.2 vessels per year to two per year. This increased production rate is crucial to meeting the Navy’s needs and fulfilling potential commitments to the Australian Navy, which may receive three Virginia-class submarines while awaiting the development of SSN-AUKUS submarines.
Of the total contract value, $17.1 billion is earmarked for General Dynamics Electric Boat’s facility in Groton,Connecticut. Huntington Ingalls industries (HII) at its Newport News Shipbuilding division in Virginia,is the other primary contractor involved in the Virginia-class program.
The USS Iowa (SSN-797), a Virginia-class Block IV submarine, was delivered to the U.S. Navy on April 5, 2025. (U.S.Navy photo)
The USS Iowa (SSN-797), the 24th Virginia-class submarine and a Block IV variant, was delivered by general Dynamics electric Boat in April. Four additional Block IV submarines – the USS Massachusetts (SSN-798), USS idaho (SSN-799), USS Arkansas (SSN-800), and USS Utah (SSN-801) – remain to be delivered.
Construction began in late 2022 on the first of 12 Block V submarines.These submarines will be larger than previous versions, with a length of 460 feet and a submerged displacement exceeding 10,000 tons. The Block V design incorporates a Virginia Payload Module (VPM), providing the capability to launch up to 28 Tomahawk cruise missiles, increasing the submarine’s total missile capacity to at least 40. They also retain four 533mm torpedo tubes with a reserve of 25 MK48 torpedoes and additional missiles.
Future Block VI and Block VII variants are planned. The ultimate size of the Virginia-class fleet,perhaps reaching or exceeding 60 submarines,will depend on the progress of the SSN(X) program,which aims to develop a new class of American SSNs with construction slated to begin in the early 2030s and commissioning in the 2040s.
Replacing Legacy Submarines
The Virginia-class submarines are replacing the aging Los Angeles-class SSNs. Of the 62 Los Angeles-class submarines commissioned between 1976 and 1996, only 24 remain in operational service. The USS Helena (SSN-725) is scheduled to be decommissioned in July 2025, further reducing the number of active Los Angeles-class submarines to 23. The Virginia-class, along with the future SSN(X), will also succeed the Seawolf-class SSNs. Only three Seawolf-class submarines were built (out of a planned 29): the USS Seawolf (SSN-21), USS Connecticut (SSN-22), and USS Jimmy Carter (SSN-23). these submarines entered service in 1997, 1998, and 2005, respectively, with the USS Jimmy Carter modified for special operations.
The virginia-class submarines,particularly the block V variant,will also replace the four Ohio-class cruise missile submarines (SSGNs). These submarines, originally commissioned as ballistic missile submarines between 1981 and 1984, were converted in the 2000s to carry 154 Tomahawk cruise missiles and support special operations. the U.S. Navy plans to decommission the USS Ohio (SSGN-726) and USS Florida (SSGN-728) in 2026, followed by the USS Michigan (SSGN-727) and USS georgia (SSGN-729) in 2028.
The U.S. Navy has finalized a notable contract modification for the Virginia-class submarine program. This guide answers your key questions about this crucial development.
What is the $18.5 Billion contract Modification?
The U.S. Navy finalized an $18.5 billion contract modification on April 30 wiht General Dynamics Electric Boat and Newport News Shipbuilding. This agreement covers the procurement of two new Block V Virginia-class nuclear attack submarines (SSNs), the future USS Baltimore (SSN-805) and USS Atlanta (SSN-806).
what is the Purpose of this Contract Modification?
The primary goal is to stabilize the Virginia-class submarine program amid financial challenges, specifically addressing rising costs and production hurdles. This infusion of funds will cover the construction of the two new submarines, mitigate cost overruns on previously ordered SSNs, and bolster the industrial base.
Why Was This Additional Funding Needed?
The initial contract, awarded in December 2019 for nine Block V submarines, was valued at $22 billion.However, factors such as the COVID-19 pandemic, the war in Ukraine, and trade tensions led to increased material costs and labor shortages.These issues made the original contract unsustainable, necessitating additional funding.
What Will the Funds Be Used For?
The $18.5 billion will be allocated for:
Construction of Two New Submarines: USS baltimore (SSN-805) and USS Atlanta (SSN-806).
Mitigating Cost Overruns: Addressing increased costs on the ten previously ordered Virginia-class SSNs.
Bolstering the Industrial base: Funds will procure essential materials and increase wages to attract and retain skilled workers.
Who are the primary Contractors?
General Dynamics Electric Boat: Primarily responsible for the construction, with $17.1 billion earmarked for its facility in Groton,Connecticut.
Huntington Ingalls industries (HII): Through its Newport News Shipbuilding division in Virginia, also a major contractor for the program.
What is the Virginia-Class Submarine Program?
The Virginia-class submarine program is a key component of U.S. naval modernization, replacing older submarines while incorporating advanced technologies.
What are Virginia-Class Block V Submarines?
Block V submarines are the latest iteration of the Virginia-class. They will be larger than previous versions, measuring 460 feet in length and displacing over 10,000 tons when submerged. A key feature is the Virginia Payload Module (VPM), significantly increasing missile capacity.
What is the Virginia Payload Module (VPM)?
The Virginia Payload Module (VPM) significantly enhances the submarine’s firepower. It allows for the launch of up to 28 Tomahawk cruise missiles, increasing the submarine’s total missile capacity to at least 40.
What Weapons do Virginia-Class Submarines Carry?
besides the VPM and Tomahawk cruise missiles, Virginia-class submarines retain four 533mm torpedo tubes, with a reserve of 25 MK48 torpedoes.
What Submarines are the Virginia-Class Replacing?
The Virginia-class submarines are replacing the following:
Los Angeles-class SSNs: Of the 62 commissioned between 1976 and 1996, only 24 remain in service.
Seawolf-class SSNs: Only three were built.
Ohio-class cruise missile submarines (SSGNs): These are being decommissioned.
The U.S. Navy aims to increase submarine production from the current average of 1.2 vessels per year to two per year. This increased production rate is critical to meeting the Navy’s needs and fulfilling potential commitments to the Australian Navy.
How Many Virginia-Class Submarines Are Planned?
The ultimate size of the Virginia-class fleet could reach or exceed 60 submarines. This will depend on the progress of the SSN(X) program, which aims to develop a new class of American SSNs with construction slated to begin in the early 2030s and commissioning in the 2040s.
Key differences Between Los Angeles-Class and Virginia-Class
Here is a table summarizing the key differences:
| Feature | Los Angeles-class (Older) | Virginia-class (Newer) |
| ———————– | ———————————— | ———————————– |
| Age | Commissioned 1976-1996 | First commissioned 2004 |
| Missile Capacity | Primarily torpedoes | Tomahawk cruise missiles (VPM in Block V