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Emergency funding plea for Virginia-class submarines sparks fresh AUKUS concerns

Some US sailors in formation, walking past a submarine which is draped in American flags.

Australia is set to receive Virginia-class submarines under the AUKUS agreement. (Supplied: US Navy/ John Narewski)

In short:

The Biden administration has asked Congress for an emergency $8.8 billion to fix shortfalls with the US Virginia-class submarine program.

Australia's submarine agency insists the US has taken "many steps" to increase investment in its submarine industrial base to meet AUKUS commitments.

What's next?

Greens senator David Shoebridge predicts the US will fail to get close to producing enough surplus submarines to transfer any to Australia.

Billions of dollars in "emergency funding" is being sought to prop up the flagging production of Virginia-class submarines in the United States, raising concerns over Australia's AUKUS plans to eventually acquire the same nuclear-powered boats.

The White House has made an urgent request for $US5.7 billion ($8.8 billion) to Congress to cover cost overruns for three submarines, as well as for shipyard enhancements and higher wages to attract welders, pipe-fitters and engineers.

"Our Virginia-class fast attack submarine program is not where it needs to be right now," a senior US Navy official was quoted as saying by American publication Breaking Defense.

"The program and the shipyards are not producing sub­marines at the rate our national security strategy and the national defence strategy require," the unnamed Pentagon figure added.

An aerial shot of the Pentagon — a large, five-sided office building with carparks

Production of the submarines has been lagging behind the Pentagon's own goals. (Reuters: Joshua Roberts)

According to the official, the funding would go towards addressing immediate funding "shortfalls" for two Virginia-class submarines this financial year and for another boat next year.

Under the ambitious AUKUS program, US and UK nuclear-powered submarines are scheduled to start rotating out of Western Australia in 2027 before Australia begins acquiring at least three Virginia-class boats in the 2030s.

Ahead of Australia receiving American submarines, the US must first increase its production rate of Virginia-class boats to at least two a year to meet its own requirements, and an extra boat every three years so submarines can be sold overseas.

At present, struggling American shipyards are only producing an average of about 1.3 submarines a year, and the Albanese government has already pledged to spend $4.62 billion towards improving the US industrial base to bolster output.

In a statement, the Australian Submarine Agency (ASA) said it welcomed the Biden administration's request to Congress to also increase funding for its submarine industrial base uplift.

"This request demonstrates the bipartisan commitment in the US to uplifting its industrial base, a critical enabler for delivering AUKUS," an ASA spokesperson told the ABC.

"Since the announcement of the AUKUS pathway in March 2023, the US Administration and US Congress have taken many steps to increase investment in the US submarine industrial base."

David Shoebridge wearing a navy suit jacket and white shirt.

Greens Senator David Shoebridge is warning billions of dollars could be wasted if the AUKUS agreement falls over. (ABC News: Jerry Rickard)

However, Greens senator David Shoebridge warned the US Navy's Virginia-class program was already $26 billion in the red before the request for another $8.7 billion in emergency funding to meet immediate shortfalls.

"It is not clear if any of this emergency funding will be met from the billions of dollars the Albanese government has already given to the US for AUKUS because of the complete lack of transparency here."

"No serious observer of the US submarine industrial capacity thinks it will come anywhere near producing surplus submarines for Australia," Senator Shoebridge added.

"The almost inevitable result of this will be the AUKUS nuclear submarine project falling over, the only live question is how many tens of billions of dollars will be wasted in the meantime."