US Navy 30-Year Shipbuilding Plan to Hike Cost by $5Bln Annually

The Congressional Budget Office reports that the US Navy’s 30-year shipbuilding plan would average $21 billion per year, or $5 billion more per year than the Navy has spent on shipbuilding over the past 30 years.

The US Navy’s 30-year shipbuilding plan would average $21 billion per year, or $5 billion more per year than the Navy has spent on shipbuilding over the past 30 years, the Congressional Budget Office (CBO) said in a report on Tuesday.

"CBO estimates that the cost of the Navy’s 2017 shipbuilding plan — an average of about $21 billion per year (in 2016 dollars) over 30 years — would be $5 billion higher than the average funding that the Navy has received in recent decades," the report stated.

The historical average for new ship construction is $13.9 billion per year.

In November, the Navy fleet totalled 272 battle ships, including aircraft carriers, submarines, surface combatants, combat logistics ships, amphibious ships and other support vessels.

The Navy's 2017 budget plan aims to expand the fleet to 308 battle force ships.

Under the plan, the Navy would buy a total of 254 ships between 2017-2046, and would meet the 308 ship goal by 2021.

However, the CBO noted that the number of ships would likely fall below 308 by 2028 and under 300 by the 2030s.