The U.S. Congressional Budget Office has released its annual assessment of the Navy’s shipbuilding plan. The latest report covers the service’s FY20 budget request and long-term spending plans. The Navy’s FY20 shipbuilding plan differs little from its FY19 plan, as the service maintains a goal of eventually building a fleet of 355 battle force ships.
The CBO typically believes the Navy underestimates long-term shipbuilding costs, and the latest report continues this trend. The CBO estimates that construction of new ships will cost an average of $28.8 billion per year over 30 years, compared to the Navy’s $22 billion per-year estimate. The Navy’s budget for new ships has averaged $13.8 billion over the past 30 years (2019 dollars).
Additional costs outside of new-ship construction bring the total warship budget to $31 billion per year over 30 years, according to the CBO, compared to the historical average of $16 billion per year.
An Analysis of the Navy's Fiscal Year 2020 Shipbuilding PlanDownload the full report here.
Shaun's deep-rooted interest in military equipment continues in his role as a senior defense analyst with a focus on the United States. He played an integral role in the development of Forecast International's U.S. Defense Budget Forecast, an interactive online product that tracks Pentagon acquisition programs throughout the congressional budget process. As editor of International Military Markets – North America, Shaun has cultivated a deep understanding of the vast defense markets in the United States and Canada. He is a regular contributor to Forecast International's Defense & Security Monitor blog and has co-authored white papers on global defense spending and various military programs.
