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Trump says taxpayers get 40% of Anduril’s Maryland sub shipyard

The stake is in a new Anduril subsidiary that will run the $6.6 billion Arsenal-2 yard at Sparrows Point, not in Anduril itself, the company said; terms were not released.

Motion Media News Staff

Oct 7, 2026

3 minutes

Aerial view of a shipyard with a white-hulled ship in a floating dry dock beside a large gray cargo ship, cranes and brick industrial buildings behind.

Photo: U.S. Department of Defense / Marty Goppert, via Wikimedia Commons (source)

American taxpayers will hold a 40% stake in the submarine-parts shipyard Anduril Industries plans to build at Sparrows Point, Md., President Donald Trump said Tuesday, Oct. 6, at the site. "We get 40 percent," Trump said, according to Defense One, which reported that he gave no further details.

Anduril said the stake will be in a new subsidiary set up to run the yard, and that the government is not taking equity in Anduril itself, Defense One reported. Other terms of the arrangement were not immediately available.

The yard, called Arsenal-2, is a $6.6 billion effort: $3.7 billion of Anduril's own capital plus a Navy contract worth up to $2.9 billion to build Virginia-class submarine components and large assemblies for the two prime builders, General Dynamics Electric Boat and HII's Newport News Shipbuilding, according to Defense One. A senior administration official told reporters Tuesday that the $2.9 billion will come from the Pentagon and is expected to fit within the regular budget process, The Hill reported.

A growing federal portfolio

Under the Trump administration, the government has taken stakes in more than 30 companies, among them 9.9% of Intel and 10% direct ownership of Trilogy Metals, The Hill reported. Trump presented the shipyard as part of what he called $21 trillion being invested in the U.S. and said it would bring 3,000 jobs to Maryland, the outlet said.

Defense Secretary Pete Hegseth and acting Navy Secretary Hung Cao also spoke at the event, held in front of the littoral combat ship USS Billings. Vice Adm. Robert Gaucher, who oversees submarine construction for the Navy, told the audience the nation has "lost industrial capacity" and added, "Today, we start to rebuild it," according to Defense One.

Anduril aims to start construction on the nearly 200-acre site by early 2027 and to begin initial operations by 2030, Defense One reported. The yard is expected to raise Navy submarine production by about 15%, or roughly 9 million production hours a year, starting with parts such as torpedo tubes and impulse tanks, Gaucher said.

Moore skips the event

Maryland Gov. Wes Moore, a Democrat, did not attend. A source told The Hill that Trump had "blocked" Moore from speaking. A White House official accused the governor of "throwing a tantrum," saying Moore had been invited as a guest. Moore told reporters that if the president wanted to "bring the circus into town," he would let it go on while he returned to work for Marylanders, The Hill reported. Moore's office said he was proud to welcome Anduril.

What's next

Maryland and Baltimore County have committed to match up to 13% of Anduril's expected private investment, through existing incentive programs and new money that needs approval from the Maryland General Assembly and the County Council, the state Department of Commerce said. The county's share, a break on personal property taxes worth as much as $210 million across 30 years, faces public hearings on Oct. 13 and 27 and an expected council vote on Nov. 2, WYPR reported.