Australia quietly pays US another $800 million for AUKUS despite review

Sydney Morning Herald

2 days ago

Washington: Australia has quietly paid the United States another $800 million towards the AUKUS submarine deal, taking the total to $1.6 billion, despite the Trump administration placing the agreement under a review.
This masthead confirmed the second payment was made in the second quarter of this year, per the agreed schedule. By the end of 2025, Canberra will have paid $US2 billion, or just over $3 billion, to the American shipbuilding industry to boost submarine production.
A Defence Department spokesperson said Australia had been clear since March 2023 that it would make a 'proportionate contribution' to the American industrial base under the AUKUS agreement.
'Australia's contribution is about accelerating US production rates and maintenance to enable the delivery of Australia's future Virginia class submarines,' the spokesperson said.
'The payments are occurring in line with Australia's commitment to contribute US$2 billion by the end of 2025, which underscores our commitment to the successful delivery of AUKUS Pillar I outcomes.'
The government was unfazed by the Pentagon's review of the AUKUS agreement and said it was natural that a new US administration would want to examine the progress of key initiatives.
'All three countries are continuing to progress the AUKUS pathway at pace, ensuring it meets national and trilateral objectives,' the Defence spokesperson said.
While Australia's first $800 million payment was announced with fanfare in February, when Defence Minister Richard Marles met his US counterpart, Pete Hegseth, in Washington, the second payment was not announced.