NEWPORT NEWS, Va. (WVEC) — A $ 674 billion defense spending bill passed this week by the Senate should mean great things for the Navy and the Hampton Road's economy.
Locally, the bill's language supporting the concept of a future "block-buy" of Ford-class aircraft carriers is a good thing for Hampton Roads.
If the Navy were able to purchase more than Ford-class aircraft carrier at a time, it would be good Newport News Shipbuilding, the Navy, and good for taxpayers. 'Block-buy' would save taxpayers an estimated $1 billion to $2.5 billion in the process.
"Two great deals can come out it," said Tidewater Community College business professor Peter Shaw. "One is the Navy then can get a discount on the massive block purchasing, probably saving billions in the long run, so the taxpayers get a break. That's number one. Number two, if you order two aircraft carriers to be constructed, then your highly skilled labor that you have has long-term employment."
Shaw added that it is going to mean great things for the overall Hampton Roads economy.
"Those highly skilled laborers, they get highly skilled paychecks," said Shaw. "And they live in this area. They're spending their money in this area, and you can best believe the retailers, and service industry and supply industry, knowing there's going to be long-term employment with these people spending money, you better believe they love the ripple effect. They love it."
The bill passed the Senate 93 to 7.
President Trump has in the past threatened to veto any spending plan that does not fund the border wall. So, for now, this is not a done deal.
If the President does not sign it, there could be a government shutdown.
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