The U.S. Navy has awarded General Dynamics Corp. a new $18.4 billion contract to produce two Virginia-class fast attack submarines, a move that solidifies Rhode Island’s role as a critical hub in America’s naval defense infrastructure.
Electric Boat, a subsidiary of General Dynamics with major manufacturing facilities at Quonset Point, will receive the bulk of the funding—$12.4 billion initially, with potential to reach $17.1 billion if all options are exercised. The contract also includes $1.3 billion for Newport News Shipbuilding in Virginia and covers long lead materials already allocated.
Senator Jack Reed, Democrat of Rhode Island and a senior member of the Armed Services and Defense Appropriations committees, praised the deal as a “major win for Rhode Island’s workforce.” Reed has long championed submarine production as both a national security imperative and an economic engine for the Ocean State. The new contract, he said, “provides added stability for the Ocean State’s industrial base while also achieving cost savings for taxpayers through production efficiencies.”
Electric Boat employs more than 24,000 workers in Rhode Island and Connecticut and is undergoing rapid expansion. With thousands of additional hires expected in the coming years, the company is ramping up recruitment to meet growing production demands and replace a retiring workforce.
Rhode Island’s role in the defense sector extends beyond Electric Boat. The state is home to the Naval Undersea Warfare Center in Newport, the Naval War College, and a web of defense contractors and suppliers. A 2022 report by the Southeastern New England Defense Industry Alliance estimated that defense spending had a $7.6 billion impact on the state economy and supported over 34,000 jobs.
The submarines—initially assembled in Quonset Point—will be completed in Groton, Connecticut and Newport News, Virginia. Work is expected to continue through June 2036.
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