Reed Delivers Another $3.3 Billion to Help Propel U.S. Submarine Industrial Base Forward & Strengthen Domestic Manufacturing and U.S. Economy
In a move aimed at fortifying America’s maritime capabilities and bolstering its undersea dominance, U.S. Senator Jack Reed, the Chairman of the Senate Armed Services Committee, played a pivotal role in securing $3.3 billion for the Submarine Industrial Base (SIB) as part of the national security supplemental approved by Congress this week.
Senator Reed underscored the significance of the additional funding, emphasizing its critical role in creating more high-paying jobs at American shipyards. The allocation forms a crucial component of broader ongoing investments aimed at ensuring the SIB’s readiness to meet future submarine requirements in the years ahead.
The decision to allocate these funds was motivated in part by the United States’ commitments under the tripartite AUKUS security partnership, established in 2021 between Australia, the United Kingdom, and the United States. This partnership seeks to bolster Australia’s maritime capabilities through the acquisition of nuclear-powered submarines. Notably, the U.S. investment in its industrial base is complemented by substantial contributions from Australia in support of AUKUS.
Senator Reed emphasized the multifaceted benefits of the additional funding, asserting that it serves as a vital support for maintaining industrial capabilities, benefiting American workers, and sustaining small businesses within the supply chain crucial to national defense.
“This investment is essential to ensure we have the workforce and shipyard capital improvements needed to continue building the best, most advanced submarines globally, thus guaranteeing our Navy’s undersea superiority and safeguarding U.S. interests worldwide,” remarked Senator Reed.
The production of the U.S. Navy’s most advanced submarines is primarily undertaken by Electric Boat at Quonset, RI, and Groton, CT, as well as by Huntington Ingalls Industries at Newport News, VA.
Bolstered by federal investments exceeding $12 billion annually to support submarine design, production, and procurement, America’s submarine manufacturers, along with their extensive network of suppliers, are experiencing a surge in hiring to meet escalating production demands.
Electric Boat, for instance, has channeled billions of dollars into its facilities at Quonset Point and has hired over 5,300 new employees in the past year alone, with plans to recruit an additional 5,200 employees in 2024. The company intends to sustain this robust hiring initiative through 2033.
A recent report by SENEDIA underscores the substantial economic impact of defense spending in Rhode Island, which amounted to $7.6 billion in 2022. The report highlights the burgeoning growth of Rhode Island’s defense industry, which supports a total of 34,068 direct and indirect jobs across the state, with an annual payroll exceeding $3 billion.
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