The US Congress has passed legislation allowing Australia to buy three US Navy Virginia-class nuclear attack submarines, clearing a major hurdle in Australia’s nuclear sub journey.
A day earlier the bill passed the US Senate. All it needs now is President Joe Biden’s signature to become law.
As is the way of US federal legislation, the 2024 National Defense Authorization Act (NDAA) does much more than facilitate Australia becoming a nuclear submarine power.
It authorises US$886 billion for US defence for the current fiscal year which began on October 1.
Though the NDAA passed both houses, it wasn’t entirely smooth sailing, with delays stemming from some hot button issues in the US culture wars.
It passed the Congress (US House of Representatives) on Thursday by 310-118 with 73 Republicans and 45 Democrats opposing. In the Senate it passed 87-13.
So not all objections related to Australia’s acquisition of US subs. During months-long debate on the legislation, concerns were strongly expressed that the US could not afford to transfer submarines to Australia while struggling to meet its own submarine production targets.
The Australian government was delighted. Defence Minister Richard Marles said the US Congress had provided unprecedented support to Australia, symbolising the strength of our Alliance and our shared commitment to the AUKUS partnership.
“We are on the precipice of historic reform that will transform our ability to effectively deter, innovate and operate together.,” he said.
“AUKUS is a game-changer for Australia, the United Kingdom and the United States – the legislation passed by US Congress will enhance our individual and collective capacity to support security, peace and prosperity in the Indo-Pacific.”
The NDAA does much more than just facilitate the transfer of three Virginias - two in-service submarines and one fresh off the production line.
It authorises the maintenance of US submarines by Australians in Australia, a key component of the pathway which includes increased port visits by UK and US nuclear-powered submarines, leading to rotation of US and British through HMAS Stirling, Western Australia from 2027.
Maintenance activity on a US nuclear submarine in Australia is planned for second half of 2024.
The NDAA also authorises Australian contractors to train in US shipyards to support development of Australia’s submarine industrial base.
As well, the NDAA establishes a mechanism for Australia to fund the US to lift the capacity of the its submarine industrial base. The cost - US$3 billion.
Most significantly, it exempts Australia from US export control licensing requirements, allowing transfer of controlled goods and technology between Australia, the United Kingdom and the US. The Australian government says this is a significant step forward for Australian Defence Industry.
It also directs that there be expedited decision-making for Foreign Military Sales and exports not covered by the national exemption.
This appears to be the government’s long sought passage through the ITAR jungle and includes a pre-clearance list and expedited decision process for Foreign Military Sales with a maximum of 45 days for a decision on exports not covered by the national exemption.
The government says this will expedite the delivery of critical defence capability.
Finally, NDAA adds Australia and the UK to Title III of the US Defense Production Act.
This Act allows the US Government to provide incentives to its industrial base to expand production and supply of critical materials and goods.
“Australia’s addition will open new opportunities for Australian based industry to directly compete for business with the US Government,” the government said.