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Australia Makes First $500 Million Payment Under AUKUS Submarine Pact

U.S. Defense Secretary Pete Hegseth affirms President Trump's support for the AUKUS alliance during talks with Australian Defense Minister Richard Marles.

Australian Defense Minister Richard Marles listens during the AUKUS Defence Ministers Meeting at Old Royal Naval College, Greenwich, London, Thursday, Sept. 26, 2024.  Kin Cheung/Pool via REUTERS/File Photo
U.S. Defense Secretary Pete Hegseth prepares to welcome Australian Defence Minister and Deputy Prime Minister Richard Marles at the Pentagon in Washington, U.S., February 7, 2025. REUTERS/Nathan Howard
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Overview

  • Australia has made its initial $500 million payment to the U.S. as part of the $3 billion commitment to bolster America's submarine production capacity under the AUKUS pact.
  • The AUKUS agreement, established in 2021, aims to provide Australia with nuclear-powered submarines and advanced weaponry to address security concerns in the Indo-Pacific region.
  • U.S. President Donald Trump has expressed strong support for the AUKUS partnership, marking the first public acknowledgment of his stance on the agreement since taking office.
  • Australia is expected to receive several Virginia-class nuclear-powered submarines from the U.S. by the early 2030s, with further plans to co-develop a new AUKUS-class submarine with Britain.
  • The meeting between Hegseth and Marles also focused on strengthening the U.S.-Australia alliance, including discussions on increased U.S. military presence in Australia and shared Indo-Pacific security challenges.