CBO Releases Analysis of U.S. Navy’s FY20 Shipbuilding Plan

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.

bar graph showing U.S. Navy spending on 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 Plan

Download the full report here.

About Shaun McDougall

Shaun McDougall is an analyst at Forecast International covering the U.S. and Canadian defense markets.

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