AUKUS defence pact 'being reviewed' by US government

The review will reportedly examine whether the pact is in line with US President Donald Trump's 'America First' policy, according to the ABC which also cited a Pentagon source.

AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison.

It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats.

The deal is worth hundreds of billions of dollars, although the first submarine is not expected to join the Australian fleet for years.

Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is expected to initially buy between three and five off-the-shelf Virginia-class boats.

At the time, US Defence Secretary Pete Hegseth said Mr Trump was supportive of the AUKUS deal.

"The president is very aware, supportive of AUKUS," Mr Hegseth said after a meeting with Australian Defence Minister Richard Marles.

"(He) recognises the importance of the defence industrial base."

Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS.

Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034.

The US regime has already called for Australia to increase that spending to around 3.5 per cent.

Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own.

The first Australian-made boats are not due to be operational until the 2040s.