U.S. Navy Awards $76.6 Billion Contract for Virginia and Columbia-Class Submarines
U.S. Navy awarded $76.6 billion for construction of new nuclear submarines. Officials call this the largest submarine contract in Navy history. The announcement of the award on July 29, 2026, ends nearly three years of negotiations and sends out a clear message about the long-term commitment that America has to its submarine fleet.
This is a complete breakdown of the contract, who will be building it, and why this deal is important for U.S. Naval Strategy going forward.
What the $76.6 billion contract actually covers
The Department of War awarded modifications to General Dynamics Electric Boat and HII’s Newport News Shipbuilding for 14 additional subs.
- $9 additional Block VI Virginia class attack submarines plus materials for a 10th boat, $42.1 billion
- $59.5 billion for the construction of five more ballistic missile subs of the Build II Columbia class
- Both companies to invest $5 billion in shipyard upgrades and workforce training
Vice Admiral Robert Gaucher (director of Navy submarine programs) described the award as an historic investment, underscoring the Navy’s commitment towards undersea supremacy and recapitalization.
Why this deal took nearly three years
This award is the result of a long negotiation process. After two years of negotiations, the Navy and shipbuilders reached an agreement for the two final Block V Virginia-class boats. The Navy awarded $18.5 billion to Baltimore (SSN-812) and Atlanta (SSN-813) in April 2025 along with wage increases for their workforce. This agreement opened the way for further negotiations to cover Block VI Virginia boats as well as Build II Columbia subs.
The Virginia-Class Program: What is being built
Virginia-class subs are fast attack boats that will replace the Los Angeles-class fleet. The Virginia-class submarines are fast-attack boats that will replace the older Los AAngeles-classfleet.
The Navy now has 26 submarines in its Virginia-class fleet, and 23 more are planned to be built. Newport News Shipbuilding, which has a long-standing partnership with Electric Boat for this program, will be the delivery yard of six of the newly contracted nine submarines.
The Columbia-Class Program is facing delays.
The Columbia-class subs will replace the old Ohio-class ballistic-missile submarines, and recapitalize America’s sea-based nuclear triad. The Navy has now contracted seven Columbia-class subs, starting with Groton, the third submarine of the class.
There have been some setbacks. Even though the District of Columbia’s (SSBN-826) fabrication began six years ago, there have been delays in delivery due to problems with structural components at the bow and stern and steam turbines. This has pushed its original delivery date of 2027 back to March 20,29. Wisconsin (SSBN-827), the follow-on vessel, is now scheduled for delivery in April 2030. In a report released in January 2023, the Government Accountability Office raised concerns regarding the construction schedule. According to Navy budget projections, the 12-boat Columbia Class is estimated to cost around $128 billion.
What industry leaders are saying
Kari Wilkinson of Newport News Shipbuilding said that the contracts provide the American shipbuilding industry with a valuable opportunity to demonstrate their commitment to national security priorities. Mark Rayha said that the contracts provide “demand certainty”, which is needed to continue to invest in production capacity and hire the workforce necessary to deliver submarines on time.
Why this is important for the U.S. Naval Strategy
The contract is one of the clearest signals of U.S. long-term investment in submarine military capability. It addresses both the current needs for fast-attack subs through the Virginia-class and the long-range nuclear threat through the Columbia class. This increased funding for shipyard infrastructure, as well as workforce training, reflects industry concerns that submarine construction capacity will not keep pace with demand.
FAQs
This contract covers how many submarines?
The contract covers an additional nine Block VI Virginia class attack submarines as well as five Build II Columbia class ballistic missile subs.
Who builds these submarines?
General Dynamics Electric Boat, HII Newport News Shipbuilding, and HII are building the submarines together.
When will Columbia-class subs be delivered to the United States?
District of Columbia, the lead ship (SSBN-826), will now be delivered by March 2029. Wisconsin (SSBN-827) will follow in April 2030.
How many Virginia-class submarines is the Navy currently equipped with?
The Navy currently has 26 Virginia-class submersibles in operation, and 23 more are planned.
Why is it called the largest subcontract in Navy history?
The Navy awarded a combined total of $76.6 billion for the construction of submarines, making it the largest award ever made.
Final Thoughts
The Navy’s commitment to modernizing and expanding its submarine fleet is reflected in this record-breaking contract, which was signed despite the Columbia-class construction program continuing to face delays. USA Times Square will continue to cover major shipbuilding and defense developments.
