The White House’s Office of Management and Budget (OMB) is questioning the viability of the U.S. Navy’s plan to increase shipyard employees’ wages and accelerate submarine production. Senator Roger Wicker, Chairman of the Senate Armed Services Committee, highlighted that without competitive wages for workers engaged in demanding shipbuilding tasks, critical U.S. shipyards may face significant challenges, particularly regarding commitments made to the UK and Australia under the AUKUS trilateral security pact. Wicker is collaborating with the White House on the Shipyard Accountability and Workforce Support (SAWS) proposal, which he identifies as a crucial mechanism for securing necessary funding to enhance wages and attract high-skilled talent to the shipbuilding sector. However, OMB economists remain unconvinced about the plan’s practicality, expressing concerns over the evaluation process that weighs the cost against the anticipated benefits. As Congress approaches discussions on preventing another government shutdown by March 14, the outcome of these negotiations could significantly influence defense spending and the future competitiveness of the U.S. shipbuilding industry.
