GAO warns Navy shipyard modernization may hit $200B, 50 years

A new GAO report says the Navy's Shipyard Infrastructure Optimization Program could cost about $200 billion and take 50 years to finish. The program, launched in 2018, is meant to modernize four public shipyards that maintain nuclear-powered carriers and submarines. GAO attributed the growth to omitted costs, rising commodity prices, seismic retrofits at Puget Sound, and additional projects.
The Government Accountability Office concluded that the Navy’s Shipyard Infrastructure Optimization Program, started in 2018, could need about $200 billion and 50 years. It covers four public yards—in Virginia, Maine, Washington and Hawaii—that maintain nuclear-propelled aircraft carriers and submarines.
Earlier projections were roughly $21 billion over two decades. GAO traced the growth to omitted expenses, higher materials costs, earthquake-related work at Puget Sound, and added projects. Dry-dock efforts at Portsmouth and Pearl Harbor together exceeded prior congressional funding requests by more than $2.5 billion.
If the GAO’s projections hold, taxpayers could face far larger long-term obligations, while delays may affect the Navy’s ability to maintain nuclear-powered carriers and submarines. Shipyard workers and surrounding communities in Virginia, Maine, Washington and Hawaii may see prolonged construction, shifting labor needs and local economic effects. The timeline could also shape future fleet readiness and budget tradeoffs, though actual costs and schedules may change as plans evolve.