SECDEF: White House Supportive of AUKUS, Australia Makes $500M Payment

February 10, 2025 6:01 PM
Secretary of Defense Pete Hegseth hosts Australian Deputy Prime Minister Richard Marles for a bilateral exchange at the Pentagon, Washington, D.C., Feb. 7, 2025. DoD Photo

Secretary of Defense Pete Hegseth met with Australian Defense Minister Richard Marles at the Pentagon on Friday and affirmed the U.S. commitment to the alliance between Australia, the U.K. and the U.S.

A Pentagon readout said the pair discussed shared security concerns in the Indo-Pacific region, accelerating U.S. force posture initiatives in Australia, advancing defense industrial base cooperation on munitions and key regional partnerships. The readout also said that Hegseth welcomed Australia’s $500 million contribution under AUKUS to the U.S. submarine industrial base as a key element of advancing defense industrial collaboration between the two countries and strengthening the bilateral alliance with Australia.

“The President is very aware, supportive of AUKUS, recognizes the importance of the defense industrial base,” Hegseth said according to an Australian transcript.
“This is not a mission, in the Indo-Pacific, that America can undertake by itself. It has to be [done by] robust allies and partners. Technology sharing and subs are a huge part of it. He’s aware and appreciative for his support and leadership on that topic.”

Hegseth said he hoped the U.S. would deliver Australia’s first Virginia-class nuclear attack submarine on time and added that President Donald Trump is committed to cutting red tape, investing in the defense industrial base and ensuring that the U.S. stands by its allies and partners.

The $500 million payment is the first part of a total of $3 billion that Australia committed to invest in the U.S. submarine industry to ensure that the industry is able to deliver the Virginia-class submarines ordered under AUKUS on time.

In a later press conference, Marles said that both he and Hegseth spoke on AUKUS and its fundamental importance to the U.S – Australian Alliance.

Marles said that it was clear that Hegseth and the Trump Administration are focused on the challenges in the Indo-Pacific.

“There is definitely an appreciation of the challenges to the rules‑based order that we see within our region and Secretary Hegseth and this administration is focused on it,” Marles said, according to the transcript.

Under the terms of the AUKUS agreement, the U.S., U.K. and Australia agreed to a technology-sharing pact that would allow Australia to purchase three to five Virginia-class submarines from the U.S. while developing a new class of submarines in parallel with the U.K. In addition, the agreement allows for loosening restrictions on sharing defense technology.

Dzirhan Mahadzir

Dzirhan Mahadzir

Dzirhan Mahadzir is a freelance defense journalist and analyst based in Kuala Lumpur Malaysia. Among the publications he has written for and currently writes for since 1998 includes Defence Review Asia, Jane’s Defence Weekly, Navy International, International Defence Review, Asian Defence Journal, Defence Helicopter, Asian Military Review and the Asia-Pacific Defence Reporter.

Get USNI News updates delivered to your inbox