The Department of the Navy plans to implement a cost assessment initiative to help save $40 billion from fiscal years 2022 through 2026, USNI News reported Tuesday.
As part of the Stem-to-Stem Review program, DoN will aim to reprogram $8 billion per year to support Future Defense Program priorities including readiness improvement and ballistic missile submarine procurement. The cost savings will be used for fleet expansion efforts in line with Naval Force Structure Assessment results.
“We must find savings within the Department to reinvest in the kind of decisive naval force that will provide for our nation’s future economic and political security,” said acting Navy Secretary Thomas Modly in a memo dated Feb. 18.
“Therefore, we must act now to make tough, fiscally-informed choices in order to fund our key strategic priorities using the budget we have, not the budget we wish we had,” he added.
Previously, the U.S. Army deployed a similar budget review process that helped the service branch reinvest over $30 billion for top modernization priorities.