Navy Cancels Biden-Era Submarine Deal Amid $3B Overhaul Costs
The Navy has halted the long-delayed overhaul of the Los Angeles-class submarine USS Boise. In an exclusive interview with Filmogaz.com, Secretary of the Navy John Phelan said the shipyard work no longer made fiscal or strategic sense. The move effectively cancels a Biden-era submarine deal after overhaul costs climbed toward $3 billion.
What the Navy said
Phelan said the Boise had already consumed roughly $800 million. He added it would require about $1.9 billion more to finish the work. That total pushed the project near $3 billion in overhaul costs.
Cost versus value
The Navy concluded the repair would deliver little remaining service life. Officials estimated the submarine would provide about 20% of its remaining operational life. Phelan compared the overhaul cost to buying new hulls and found poor return on investment.
Timeline and contract history
USS Boise was commissioned in 1992 and last deployed in 2015. An overhaul was planned for 2016 but repeatedly delayed by shipyard backlogs and capacity limits. The Navy awarded a roughly $1.2 billion repair contract in 2024.
By 2024, the submarine had sat pier-side since 2015 and lost key certifications in 2016 and 2017. Repair work was only about 22% complete when leadership reassessed the program.
Operational and industrial factors
Phelan cited engineering complexity, COVID impacts, and industrial-base strain as contributing factors. He also pointed to workforce shortages and limited dry-dock space at Navy shipyards. Those constraints slowed progress and drove costs higher.
Labor and production priorities
The Navy will reallocate skilled labor and funds to newer submarines. Leadership prioritized Virginia- and Columbia-class construction and delivery. Officials said shifting resources would accelerate ship production and fix troubled acquisition programs.
Strategic context
The decision comes amid pressure to expand and maintain the fleet. U.S. officials have emphasized faster submarine production as competition with China increases. Navy leaders argued that modern Virginia-class platforms better meet present mission needs.
Political and service reactions
The Boise case drew attention from lawmakers and Navy leaders. During a June 2025 hearing, Senator Mike Rounds questioned whether the program should be ended. The Chief of Naval Operations described the situation as deeply troubling for the submarine force.
The cancellation is part of a broader Navy review of underperforming programs. Officials said they will push for greater transparency and faster delivery of war‑fighting capability.
