CBO: Navy’s 2025 shipbuilding plan would cost $40BN a year

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The non-partisan Congressional Budget Office (CBO) has released its analysis of the U.S. Navy’s 2025 30-year shipbuilding plan. As in its previous analyses of Navy shipbuilding plans, the CBO finds that the cost of the plan would be higher than Navy estimates.

Here are some highlights from the report:.

Cost. The Navy’s 2025 plan would cost 46 percent more annually in real terms (that is, adjusted to remove the effects of inflation) than the average amount appropriated over the past 5 years. CBO estimates that total shipbuilding costs would average $40 billion (in 2024 dollars) over the next 30 years, which is about 17 percent more than the Navy estimates. CBO’s estimates for the 2025 plan range from 8 percent to 16 percent higher in real terms than its estimates for the three alternatives in the Navy’s 2024 plan. Including the costs of operating and maintaining those ships, buying new aircraft and weapons, and funding the Marine Corps, the Navy’s total budget would