§10431 Authorization of Sales of Virginia Class Submarines to Australia

Summary

The President may sell up to two Virginia Class submarines from the Navy to Australia starting one year after December 22, 2023, and may sell not more than one more Virginia Class submarine to Australia under section 21 of the Arms Export Control Act during the 20-year period that begins on December 22, 2023, as part of the AUKUS partnership. These submarine sales do not have to follow two specific normal legal requirements that would otherwise apply. The United States’ costs for the transfers must be paid by Australia. At least 270 days before any sale, the President must tell Congress in writing that the sale will not weaken U.S. undersea defenses, fits U.S. foreign policy and security goals, supports AUKUS, that the U.S. is investing enough in submarine production and upkeep, that Australia has provided the needed funds and support, and that Australia can host and operate the submarines. The usual Navy certification is not required. The President cannot make a sale unless the U.S. and Australia have a mutual defense agreement focused on Australia’s purchase of conventionally armed, nuclear-powered submarines and meeting top nonproliferation standards. Any other sales of Virginia Class submarines after December 22, 2023 must be approved by a new law. Money and nuclear rules: Money received from these sales may be put into accounts chosen by the President, including accounts used to buy or improve submarines, and the funds stay available until spent. Thirty days before the first delivery the President must notify Congress that Australia has reached specific operating capabilities, including Submarine Rotational Forces‑West readiness to support four rotational Virginia class submarines and one Astute class submarine, and that Australia can host, crew, operate, and handle nuclear-related regulation and emergency procedures and planning up to nuclear defueling. Within 30 days after any transfer and after receiving funds, the President must tell Congress the amount received, where it was deposited, and report on the capability items above. Transfers of special nuclear material or nuclear parts must follow existing law, and sale proceeds may be used to buy replacement nuclear propulsion plants and fuel. The President may also transfer or allow exports of defense services to Australia and the United Kingdom, including to private-sector personnel, with required export controls and security protections; the President must certify 30 days before the first such transfer and yearly that controls will protect sensitive information. Within 180 days after December 22, 2023 and yearly for 15 years, the President must send Congress a classified report on the sales’ status, security cooperation, industrial expansion plans, a 15-year submarine procurement schedule, and a list of defense services exported and private-sector recipients.