One of the key provisions in the Australia-U.S.-U.K. (AUKUS) agreement is for America to sell Australia between three and five Virginia-class nuclear-powered attack submarines beginning in 2032. As part of this arrangement, Canberra has committed to contribute $3 billion to support the American submarine industrial base, with an initial payment of $2 billion in 2025 and an additional $100 million for each of the 10 following years.

The Navy plans for Australia’s cash infusion to be directed toward expanding and improving America’s shipyards, reducting, if not eliminating, the current two-to-three year delays in deliveries of the Virginia-class submarines. But even this large infusion of Australian funds may not eliminate the current backlog.

Instead of delivering two boats a year on average, workforce shortages at the shipyards and suppliers have led to the delivery of no more than 1.4 boats on average annually for the past several years. As a result, the Navy’s submarine force level has remained stagnant; it has not been able to operate more than 50 boats for the past decade despite its announced plans for a force of 66 submarines.

In order to meet its commitment to Australia, as well as recover from its own submarine production shortfall, the........

© The Hill