The U.S. Navy has decided to decommission the USS Boise, a Los Angeles-class attack submarine, after costs for its overhaul surged to nearly $3 billion. The submarine, which has been sidelined since 2015, had already consumed $800 million but was only 22% complete with its scheduled repairs. Navy Secretary John Phelan confirmed the decision, stating the ship no longer justified the financial or strategic investment.
Phelan emphasized that redirecting funds toward newer Virginia- and Columbia-class submarines aligns with broader efforts to modernize the fleet. The Navy originally awarded a $1.2 billion contract in 2024 under the Biden administration, but updated estimates revealed the total cost would exceed $3 billion for a vessel with only 20% of its service life remaining.
The submarine’s delays stemmed from backlogs at Navy shipyards, forcing it to remain pier-side for nearly a decade. Phelan acknowledged past mismanagement but framed the decision as a necessary shift toward fiscal responsibility and accelerated shipbuilding to counter growing naval competition, particularly from China.
The Navy’s 2027 budget proposal includes $65 billion for shipbuilding—a significant increase from prior years—reflecting President Donald Trump’s "Golden Fleet" initiative to expand and modernize the fleet. Phelan noted that completing the USS Boise’s repairs could have cost an additional $1.9 billion, with no guarantee of operational readiness by 2029.
Key Facts:
- USS Boise decommissioned after $3B cost overrun.
- $800M spent, 22% work completed.
- Funds redirected to newer submarine programs.
- China’s naval expansion cited as a strategic driver.
- Trump’s "Golden Fleet" initiative accelerates shipbuilding.