US launches review of AUKUS sub deal as doubts grow over $368B plan

The nuclear submarine agreement between Australia, the UK and the US is under fresh scrutiny — this time from Washington.

🤿 The nuclear sub deal is back in the spotlight — but not because of us

AUKUS — the multi-billion dollar submarine pact between Australia, the UK and the US — is under scrutiny again. But this time, it’s not Australians raising questions.

It’s the Americans.

🤝 What AUKUS is actually about

The AUKUS deal, first announced in 2021, is a strategic defence partnership meant to:

  • Help Australia acquire nuclear-powered submarines

  • Strengthen military ties between Australia, the US and the UK

  • Counter China’s growing influence in the Indo-Pacific

Nuclear-powered subs are prized for their ability to stay underwater longer, move faster, and operate more stealthily than conventional diesel-electric ones.

💸 The $368 billion elephant in the room

AUKUS is Australia’s most expensive defence commitment ever — with a projected cost of over $368 billion.

So far, Australia has only spent $500 million — that’s about 1/720th of the total.

Critics within the defence community argue that money could be better spent on drones, missiles and northern bases. 

But Labor and the Coalition remain committed to the deal.

❓ Why it’s suddenly a thing again

In Australia, AUKUS has been a near-constant talking point since 2021.

But in the US? It’s barely rated a mention — until now.

It’s understood Pentagon policy chief Elbridge Colby has launched a formal review of the deal.

🇬🇧 The UK already did a review — now the US is joining in

Last year, British PM Keir Starmer ordered a review of AUKUS after taking office.

Now the US appears to be doing the same.

And given recent tensions — from Trump-era tariffs to questions over America’s reliability — the move has sparked renewed anxiety over whether the US can be trusted as a defence partner.

🕊️ A different vibe from the Bush era bromance

In the early 2000s, John Howard was riding horses at the Bush family ranch. These days, Albanese isn’t exactly dropping into Mar-a-Lago to hang out with Donald at the omelette station.

That context matters. There’s a growing sense that America isn’t treating Australia like the trusted ally it once did.

🧾 What’s the Albanese government saying?

Defence Minister Richard Marles insists everything is fine.

He says Labor conducted its own AUKUS review after coming to power, and the US audit is no cause for alarm.

But the US appears to want more:

Secretary of Defense Pete Hegseth has called on Australia to lift defence spending from 2.4% to 3.5% of GDP — roughly an extra $40 billion a year.

🧨 Keating says the review might “save Australia from itself”

Former Prime Minister Paul Keating — a vocal critic of AUKUS — has welcomed the US review, suggesting it could “save Australia from itself”.

“AUKUS will be shown for [what] it always has been: a deal hurriedly scribbled on the back of an envelope by Scott Morrison, along with the vacuous British blowhard Boris Johnson and the confused president, Joe Biden.”

Keating has long argued that the submarine deal is wasteful and dangerous, dragging Australia deeper into American military entanglements.

🗣️ Meanwhile, the Coalition takes a shot

Opposition Leader Sussan Ley told Sky News she’s “concerned” Albanese was unprepared for the US review.

The Coalition is now calling for the PM to meet with Donald Trump on the sidelines of the G7 — as if anyone but Trump controls Trump’s diary.

If that meeting does happen, Albanese will have a long to-do list:

  • AUKUS

  • Tariffs

  • A Channel Nine journo shot with a rubber bullet in LA