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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10493 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10493

  To support the national defense and economic security of the United 
States by supporting vessels, ports, and shipyards of the United States 
                    and the U.S. maritime workforce.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2024

Mr. Kelly of Mississippi (for himself and Mr. Garamendi) introduced the 
following bill; which was referred to the Committee on Armed Services, 
and in addition to the Committees on Transportation and Infrastructure, 
  Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and 
 Accountability, Education and the Workforce, Financial Services, the 
   Judiciary, Natural Resources, Science, Space, and Technology, and 
 Veterans' Affairs, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To support the national defense and economic security of the United 
States by supporting vessels, ports, and shipyards of the United States 
                    and the U.S. maritime workforce.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Shipbuilding and 
Harbor Infrastructure for Prosperity and Security for America Act of 
2024'' or the ``SHIPS for America Act of 2024''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Sense of Congress.
Sec. 4. Definitions.
                 TITLE I--OVERSIGHT AND ACCOUNTABILITY

Sec. 101. Maritime Security Advisor; Maritime Security Board.
Sec. 102. Maritime Transportation System National Advisory Committee.
Sec. 103. Direct hire authority.
Sec. 104. Implementation plan.
Sec. 105. Federal Maritime Commission report on vessels of the United 
                            States.
                 TITLE II--MARITIME SECURITY TRUST FUND

Sec. 201. Apportionment of the Maritime Security Trust Fund.
Sec. 202. Regular tonnage taxes; Presidential suspension of tonnage 
                            taxes and light money.
                     TITLE III--SEALIFT CAPABILITY

Sec. 301. Sealift capability.
Sec. 302. National Freight Strategic Plan.
Sec. 303. Foreign shipping practices; controlled carriers.
    TITLE IV--VESSELS OF THE UNITED STATES IN INTERNATIONAL COMMERCE

                 Subtitle A--Strategic Sealift Programs

Sec. 401. Strategic Commercial Fleet.
Sec. 402. Maritime Security Program.
Sec. 403. Cable security fleet.
Sec. 404. Tanker Security Fleet.
Sec. 405. Modification to duties relating to equipment and repair of 
                            vessels.
                      Subtitle B--Cargo Preference

Sec. 411. United States Government cargo.
Sec. 412. Cargo preference implementation regulations.
Sec. 413. Cargo preference oversight and audit.
Sec. 414. Financing the transportation of agricultural products.
Sec. 415. Importation from China on American ships.
Sec. 416. Priority for vessels of the United States.
Sec. 417. Moving cargo on vessels of the United States.
Sec. 418. Transportation requirements for certain exports sponsored by 
                            the Secretary of Agriculture.
Sec. 419. Clarifying amendments.
Sec. 420. Energizing American shipbuilding.
Sec. 421. Ship America Office.
                     Subtitle C--Regulatory Reform

Sec. 431. Alternate standards.
Sec. 432. Rulemaking committee on commercial maritime regulations and 
                            standards.
Sec. 433. Amendments to Shipowners' Limitation of Liability Act of 
                            1851.
                         TITLE V--SHIPBUILDING

             Subtitle A--Shipbuilding Financial Incentives

Sec. 501. Shipbuilding financial incentives.
Sec. 502. Assistance for small shipyards.
Sec. 503. Federal ship financing (title XI) program.
Sec. 504. Construction reserve fund.
Sec. 505. Capital construction fund.
Sec. 506. Anticipated commercial vessel construction survey.
Sec. 507. Streamlined environmental review.
Sec. 508. Eligibility for loan guarantees.
Sec. 509. Reports.
Sec. 510. Export control report.
               Subtitle B--Department of Defense Programs

Sec. 511. Assessment of the use of commercial best practices for Navy 
                            shipbuilding.
Sec. 512. Plan of action for use of Defense Production Act of 1950 
                            authorities.
Sec. 513. Strategy on development of naval rearm-at-sea capability.
Sec. 514. Military Sealift Command.
         Subtitle C--Shipbuilding Innovation and Infrastructure

Sec. 521. United States Center for Maritime Innovation.
Sec. 522. National Shipbuilding Research Program.
Sec. 523. Assessment on Marine infrastructure readiness.
                    TITLE VI--WORKFORCE DEVELOPMENT

                    Subtitle A--Workforce Incentives

Sec. 601. Public service loan forgiveness for Merchant Marines.
Sec. 602. Eligibility for educational assistance.
Sec. 603. Eligibility of mariners to attend Naval Postgraduate School.
Sec. 604. Reimbursement of qualifying spouse relicensing costs and 
                            business costs.
Sec. 605. Noncompetitive eligibility for Federal employment.
Sec. 606. United States Merchant Marine Career Retention Program.
                     Subtitle B--Workforce Pipeline

Sec. 611. Maritime and shipbuilding recruiting campaign.
Sec. 612. Centers of Excellence for Domestic Maritime Workforce 
                            Training and Education.
Sec. 613. Maritime Career and Technical Education Advisory Committee.
Sec. 614. Military Candidates to Mariner Careers Recruitment Exchange.
Sec. 615. Maritime worker data collection.
Sec. 616. Military to maritime transition.
Sec. 617. Early maritime education and youth involvement.
Sec. 618. International scholarship for mariner and naval architecture 
                            exchanges.
 Subtitle C--United States Merchant Marine Academy and State Maritime 
                               Academies

Sec. 621. Authorization of appropriations for United States Merchant 
                            Marine Academy infrastructure and 
                            facilities modernization.
Sec. 622. United States Merchant Marine Academy.
Sec. 623. Retirement service credit for service as a midshipman at the 
                            United States Merchant Marine Academy.
Sec. 624. State maritime academies.
Sec. 625. Military to mariner enrollment at a State Maritime Academy.
Sec. 626. Enforcement of service obligation requirements.
Sec. 627. Fuel funding for training ships operated by State maritime 
                            academies.
Sec. 628. State Maritime Academy Sea Term Scholarship Programs.
Sec. 629. Naval joint exercise involvement for training ships operated 
                            by State maritime academies.
            Subtitle D--Maritime Credentialing Modernization

Sec. 631. Merchant mariner credentialing modernization.
Sec. 632. Revising merchant mariner deck training requirements.
Sec. 633. Inspections for transportation security.
Sec. 634. Technical amendments relating to references to seamen.
Sec. 635. Renewal of merchant mariner licenses and documents.
Sec. 636. Merchant seamen licenses, certificates, and documents; 
                            manning of vessels.
Sec. 637. Reactivation of expired license.
       TITLE VII--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

Sec. 701. Establishment of the Maritime Security Trust Fund.
Sec. 702. United States Vessel Investment Credit.
Sec. 703. Certain payments for maritime security excluded from gross 
                            income.
Sec. 704. Elimination of 30-day limitation on domestic operations.
Sec. 705. Qualifying shipping activities.
Sec. 706. Qualifying vessel.
Sec. 707. Credit for construction of shipyard facilities.
Sec. 708. Tax incentives relating to merchant marine capital 
                            construction funds.
Sec. 709. Exemption of student incentive payment agreements from gross 
                            income.
Sec. 710. Maritime fuel tax parity.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Strategic sealift, made up of Government and commercial 
        vessels and mariners, is a critical capability for executing 
        the maritime defense strategy and the wartime and peacetime 
        economy of the United States.
            (2) Ensuring a modern and ready capability will require 
        significant investment, policy prioritization, and the 
        innovation of the people of the United States.
            (3) The worldwide ocean economy is worth between 
        $3,000,000,000,000 and $6,000,000,000,000, according to the 
        United Nations Conference on Trade and Development. Yet, 
        vessels of the United States carry less than 2 percent of 
        United States international commercial cargoes by weight.
            (4) The United States has fewer than 200 oceangoing vessels 
        of the United States, of which only approximately 80 vessels 
        participate in international commerce, compared with more than 
        5,500 Chinese documented vessels.
            (5) With oceans on both sides, the United States has always 
        been a maritime Nation. Throughout history, the strength of a 
        maritime Nation has been directly tied to the strength of its 
        maritime industry, and the United States won 2 world wars on 
        the back of a strong maritime industry.
            (6) Decades of neglect by the United States Government and 
        private industry has weakened the shipbuilding capacity and 
        maritime workforce of the United States, contributing to a 
        declining fleet of shipping vessels of the United States to 
        bring United States goods to market and support the United 
        States military during wartime.
            (7) Today, there are just 20 shipbuilders in the United 
        States capable of building oceangoing vessels--down from more 
        than 80 at the end of the Second World War.
            (8) During World War II, the United States merchant marine 
        powered the Allies to victory with more than 10,000 oceangoing 
        vessels of the United States. Today there are just 80 vessels 
        of the United States engaged in international trade.
            (9) The People's Republic of China has made investments in 
        the maritime industry a strategic priority over the past 20 
        years.
            (10) As of 2023, shipyards in the United States had fewer 
        than 5 shipbuilding orders for oceangoing vessels, while 
        shipyards in the People's Republic of China had more than 1,700 
        orders, according to BRS Group. According to the Office of 
        Naval Intelligence, the People's Republic of China became the 
        world's top shipbuilding and shipping nation, boasting 230 
        times more shipbuilding capacity than the United States.
            (11) With just 12,000 United States merchant mariners 
        operating oceangoing vessels, the United States may not have a 
        sufficient number of mariners to fully power the strategic 
        sealift vessels necessary in a future prolonged conflict.
            (12) The American Civil Society of Engineers assesses that 
        the United States has a national maintenance backlog amounting 
        to $125,000,000,000 for bridges, $163,000,000,000 for ports, 
        and $6,800,000,000 for inland waterways.
            (13) The maritime industry is inherently international. 
        Eighty percent of United States goods are imported by sea, of 
        which 98 percent come into the United States on foreign 
        documented vessels. Only 2 percent of such goods come into the 
        United States on vessels of the United States, leaving the 
        United States economy disproportionately dependent on 
        oceangoing trade controlled by often adversarial foreign 
        nations. The Nation's ability to provide services in both 
        international and interstate commerce is critical to national 
        and economic defense.
            (14) Since November 2023, vessels engaged in international 
        commerce have been threatened by the Houthis, which has 
        threatened global supply chains, increased costs, and required 
        naval force protection operations in the Red Sea through the 
        United States-led Operation Prosperity Guardian that formed in 
        December 2023.
            (15) A fleet of commercial shipping vessels of the United 
        States, crewed with citizen mariners, that is competitive in 
        domestic and international trade, and commercial fleets 
        participating in the United States peacetime economy enhance 
        the United States military's readiness, allow the United States 
        to more strategically compete with China, and underwrites the 
        security and survival of the United States in times of crisis 
        and war.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that the United States must--
            (1) create a more favorable domestic and global maritime 
        environment for vessels of the United States engaged in 
        international commerce, shipbuilding, ship repair, maritime 
        logistics, the maritime workforce, and naval power, 
        contributing to assured access to the world's oceans free from 
        coercion from strategic competitors and asymmetric adversaries;
            (2) increase domestic shipbuilding and ship repair 
        capacity, with programs and policies that enable the growth of 
        United States shipyards and the maritime industrial base, 
        enhance military sealift capacity, expand the United States 
        maritime workforce, and enhance national security;
            (3) revitalize the international fleet of vessels of the 
        United States and foster a comparative advantage for the United 
        States through targeted incentives and regulatory reforms to 
        make the fleet competitive with international carriers and to 
        gain a sustainable share of the global maritime market in order 
        to bolster supply chains, strengthen economic security, and 
        lower prices;
            (4) take all measures necessary to ensure that sufficient 
        military, civil, and commercial resources will be available 
        with assured access to meet defense deployment needs and 
        essential economic activities for our Nation in times of 
        crisis, war, or peace;
            (5) recognize that a vibrant commercial shipbuilding 
        industry provides redundancies and creates economies of scale 
        that improve military, Coast Guard, and Government shipbuilding 
        and support military operations through strategic sealift to 
        defend the freedom of the seas;
            (6) ensure better coordination between Federal agencies, 
        including the Maritime Administration, the United States Coast 
        Guard, the Department of Defense, the Federal Maritime 
        Commission, and all other Federal agencies with a maritime 
        nexus, to protect, regulate, and support the United States 
        maritime industry, resolve disputes, and implement a whole-of-
        Government national maritime strategy;
            (7) establish reliable long-term demand signals for, and 
        investments in, oceangoing commercial vessels that are built in 
        the United States, documented under the laws of the United 
        States, and crewed by United States mariners;
            (8) evaluate past and present maritime efforts to take 
        actions to revitalize the United States maritime industry;
            (9) strengthen the United States intercoastal and domestic 
        trade fleet, which is the foundation upon which a revitalized 
        United States-documented shipping and domestic shipbuilding 
        industry will be built;
            (10) recognize the important role that the support craft, 
        passenger, and fishing vessel fleet play in the United States 
        maritime industry;
            (11) encourage the shipping of commercial cargo on vessels 
        of the United States, with the aim of growing the size and 
        carrying capacity of the international fleet of vessels of the 
        United States;
            (12) grow the shipping capacity of vessels of the United 
        States and guarantee United States Government cargo during 
        peacetime;
            (13) develop a whole-of-Government effort to expand, 
        develop, and protect the maritime workforce;
            (14) recognize the need for more workers in the maritime 
        sector and stimulate growth in the United States maritime and 
        shipbuilding industries, including by increasing access to 
        early maritime education, commissioning national marketing 
        campaigns to demonstrate how United States shipbuilding, United 
        States-documented shipping, and maritime workers are critical 
        to national security, and implementing workforce accelerator 
        programs;
            (15) remove barriers to training mariners, including 
        reevaluating Coast Guard training requirements regarding 
        faculty credentials, instructional facility designs, sea time 
        requirements, and other identified barriers, consistent with 
        international treaty obligations;
            (16) expand and nurture a robust mariner workforce that 
        enhances the national security and strategic sealift readiness 
        of the United States by increasing the number of United States 
        mariners and improving existing pathways and establishing new 
        pathways for new, current, and former merchant mariners to go 
        to sea;
            (17) recognize that the United States Merchant Marine 
        Academy and our State maritime academies are critical to 
        training the next generation of licensed officers and engineers 
        on vessels of the United States;
            (18) invest and innovate in domestic shipbuilding, ship 
        repair, and the shipping capabilities and capacity of vessels 
        of the United States to advance the power and influence of the 
        maritime industry of the United States;
            (19) drive multi-stakeholder research, development, 
        assessment, and deployment of emerging marine technologies and 
        best practices related to the maritime transportation system to 
        ensure United States leadership in next-generation 
        shipbuilding, ship repair, and maritime logistics;
            (20) drive modern business and manufacturing approaches, 
        such as innovative maritime logistics, clean fuels, and 
        advanced nuclear energy, human-machine teaming, additive 
        manufacturing, and other advanced technologies;
            (21) review and update regulations governing vessel design 
        and engineering, vessel and facility operation, and merchant 
        mariner credentialing, in order to revitalize the United States 
        maritime industry;
            (22) seek mutually beneficial relationships with treaty 
        allies and strategic partners to grow the domestic shipping and 
        shipbuilding industries of the United States and to share the 
        burden of providing freedom of navigation on the high seas, 
        while de-risking the United States maritime domain from the 
        People's Republic of China, foreign countries of concern, and 
        asymmetric or emerging maritime threats;
            (23) harden critical maritime infrastructure and networks, 
        and incrementally replace infrastructure built by foreign 
        adversaries with domestic-built and allied-built 
        infrastructure; and
            (24) promote the values of the United States for quality of 
        life, worker safety, environmental stewardship, maritime 
        independence, freedom of the seas, and the resilience of our 
        oceans, seas, and inland waterways.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Armed Services, the Committee 
                on Commerce, Science, and Transportation, and the 
                Committee on Appropriations of the Senate; and
                    (B) the Committee on Armed Services, the Committee 
                on Transportation and Infrastructure, and the Committee 
                on Appropriations of the House of Representatives.
            (2) Domestic commerce.--The term ``domestic commerce'' 
        means the transportation of goods or passengers between places 
        in the United States.
            (3) Foreign commerce.--The term ``foreign commerce'' 
        means--
                    (A) commerce or trade between the United States, 
                its territories or possessions, or the District of 
                Columbia, and a foreign country; and
                    (B) commerce or trade between foreign countries.
            (4) Foreign country of concern.--The term ``foreign country 
        of concern'' means--
                    (A) a country that is a covered nation (as defined 
                in section 4872(d) of title 10, United States Code); 
                and
                    (B) any country that the Maritime Administrator, in 
                consultation with the Secretary of Defense, the 
                Secretary of State, the Director of National 
                Intelligence, and the Chair of the Federal Maritime 
                Commission, determines to be engaged in conduct that is 
                detrimental to the national security or foreign policy 
                of the United States.
            (5) Foreign entity.--The term ``foreign entity''--
                    (A) means--
                            (i) a government of a foreign country or a 
                        foreign political party;
                            (ii) a natural person who is not a lawful 
                        permanent resident of the United States, a 
                        citizen of the United States, or any other 
                        protected individual (as such term is defined 
                        in section 274B(a)(3) of the Immigration and 
                        Nationality Act (8 U.S.C. 1324b(a)(3))); or
                            (iii) a partnership, association, 
                        corporation, organization, or other combination 
                        of persons organized under the laws of or 
                        having its principal place of business in a 
                        foreign country; and
                    (B) includes--
                            (i) any person owned by, controlled by, or 
                        subject to the jurisdiction or direction of an 
                        entity listed in subparagraph (A);
                            (ii) any person, wherever located, who acts 
                        as an agent, representative, or employee of an 
                        entity listed in subparagraph (A);
                            (iii) any person who acts in any other 
                        capacity at the order, request, or under the 
                        direction or control, of an entity listed in 
                        subparagraph (A), or of a person whose 
                        activities are directly or indirectly 
                        supervised, directed, controlled, financed, or 
                        subsidized in whole or in majority part by an 
                        entity listed in subparagraph (A);
                            (iv) any person who directly or indirectly 
                        through any contract, arrangement, 
                        understanding, relationship, or otherwise, owns 
                        25 percent or more of the equity interests of 
                        an entity listed in subparagraph (A);
                            (v) any person with significant 
                        responsibility to control, manage, or direct an 
                        entity listed in subparagraph (A);
                            (vi) any person, wherever located, who is a 
                        citizen or resident of a country controlled by 
                        an entity listed in subparagraph (A); or
                            (vii) any corporation, partnership, 
                        association, or other organization organized 
                        under the laws of a country controlled by an 
                        entity listed in subparagraph (A).
            (6) Foreign entity of concern.--The term ``foreign entity 
        of concern'' means any foreign entity that is--
                    (A) designated as a foreign terrorist organization 
                by the Secretary of State under section 219 of the 
                Immigration and Nationality Act (8 U.S.C. 1189);
                    (B) included on the list of specially designated 
                nationals and blocked persons maintained by the Office 
                of Foreign Assets Control of the Department of the 
                Treasury;
                    (C) owned by, controlled by, or subject to the 
                jurisdiction or direction of a government of a foreign 
                country of concern;
                    (D) alleged by the Attorney General to have been 
                involved in activities for which a conviction was 
                obtained under--
                            (i) chapter 37 of title 18, United States 
                        Code (commonly known as the ``Espionage Act'') 
                        (18 U.S.C. 792 et seq.);
                            (ii) section 951 or 1030 of title 18, 
                        United States Code;
                            (iii) chapter 90 of title 18, United States 
                        Code (commonly known as the ``Economic 
                        Espionage Act of 1996'');
                            (iv) the Arms Export Control Act (22 U.S.C. 
                        2751 et seq.);
                            (v) section 224, 225, 226, 227, or 236 of 
                        the Atomic Energy Act of 1954 (42 U.S.C. 2274, 
                        2275, 2276, 2277, and 2284);
                            (vi) the Export Control Reform Act of 2018 
                        (50 U.S.C. 4801 et seq.); or
                            (vii) the International Emergency Economic 
                        Powers Act (50 U.S.C. 1701 et seq.);
                    (E) designated by the Federal Maritime Commission 
                as a controlled carrier under chapter 407 of title 46, 
                United States Code;
                    (F) found by the Federal Maritime Commission to be 
                practicing unfavorable conditions in foreign trade 
                under chapter 421 or 423 of title 46, United States 
                Code; or
                    (G) determined by the Maritime Administrator, in 
                consultation with the Secretary of Defense, the 
                Secretary of State, the Director of National 
                Intelligence, and the Chair of the Federal Maritime 
                Commission, to be engaged in unauthorized conduct that 
                is detrimental to the national security or foreign 
                policy of the United States.
            (7) Vessel of the united states.--The term ``vessel of the 
        United States'' has the meaning given that term in section 116 
        of title 46, United States Code.

                 TITLE I--OVERSIGHT AND ACCOUNTABILITY

SEC. 101. MARITIME SECURITY ADVISOR; MARITIME SECURITY BOARD.

    (a) Amendments.--Chapter 504 of part A of subtitle V of title 46, 
United States Code, is amended--
            (1) by striking the chapter heading and inserting the 
        following: ``OVERSIGHT AND ACCOUNTABILITY''; and
            (2) by striking section 50401 and inserting the following:
``Sec. 50401. Maritime Security Advisor; Maritime Security Board
    ``(a) Maritime Security Advisor.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this section, the President shall appoint a 
        Special Advisor to the President (to be known as the `Maritime 
        Security Advisor') for coordinating national maritime affairs 
        and policy, including developing, updating, and implementing 
        the National Maritime Strategy as required under section 50114 
        of this title.
            ``(2) Duties.--The Maritime Security Advisor appointed 
        under paragraph (1) shall serve as the Chair of the Maritime 
        Security Board, shall be the principal advisor to the President 
        on all issues related to the maritime industry, shipbuilding, 
        and ship repair, and shall be responsible for developing, 
        updating, and implementing the National Maritime Strategy under 
        section 50114 of this title within and across the Federal 
        Government.
            ``(3) National security council.--The Maritime Security 
        Advisor shall have a seat on the National Security Council.
            ``(4) Office of the maritime security advisor.--
                    ``(A) In general.--There is established in the 
                Executive Office of the President, an Office of the 
                Maritime Security Advisor. The Maritime Security 
                Advisor described in this subsection shall be the head 
                of such Office.
                    ``(B) Employees; contracts.--In carrying out the 
                functions under this section, the Maritime Security 
                Advisor is authorized to--
                            ``(i) appoint such officers and employees 
                        as the Maritime Security Advisor may deem 
                        necessary to perform the functions now or 
                        hereafter vested in the Maritime Security 
                        Advisor and to prescribe their duties; and
                            ``(ii) enter into contracts and other 
                        arrangements for studies, analyses, and other 
                        services with public agencies and with private 
                        persons, organizations, or institutions, and 
                        make such payments as the Maritime Security 
                        Advisor deems necessary to carry out the 
                        provisions of this section.
    ``(b) Maritime Security Board.--Not later than 90 days after the 
date of enactment of this section, the President shall establish a 
board, to be known as the `Maritime Security Board' (in this section 
referred to as the `Board').
            ``(1) Composition.--
                    ``(A) In general.--The Board shall be comprised of 
                the following individuals and representatives:
                            ``(i) The Maritime Security Advisor 
                        described in subsection (a).
                            ``(ii) The Maritime Administrator.
                            ``(iii) The Commandant of the Coast Guard.
                            ``(iv) The Secretary of the Navy.
                            ``(v) The Commander of the United States 
                        Transportation Command.
                            ``(vi) The Chair of the Federal Maritime 
                        Commission.
                            ``(vii) The Assistant Secretary of the Army 
                        for Civil Works.
                            ``(viii) The Commander of the Military 
                        Sealift Command.
                            ``(ix) The Commander of Naval Sea Systems 
                        Command.
                            ``(x) The chief United States delegate to 
                        the International Maritime Organization.
                            ``(xi) The Under Secretary of Commerce for 
                        Oceans and Atmosphere.
                            ``(xii) The Commissioner for Customs and 
                        Border Protection.
                            ``(xiii) The Director of the Office of 
                        Management and Budget, or their designee.
                            ``(xiv) The Secretary of Transportation, or 
                        their designee.
                            ``(xv) The Secretary of Homeland Security, 
                        or their designee.
                            ``(xvi) The Secretary of State, or their 
                        designee.
                            ``(xvii) The Secretary of Labor, or their 
                        designee.
                            ``(xviii) The Secretary of Agriculture, or 
                        their designee.
                            ``(xix) The Secretary of Commerce, or their 
                        designee.
                            ``(xx) The Secretary of the Treasury, or 
                        their designee.
                            ``(xxi) The Administrator of the 
                        Environmental Protection Agency, or their 
                        designee.
                            ``(xxii) The United States Trade 
                        Representative, or their designee.
                            ``(xxiii) The Administrator of the United 
                        States Agency for International Development, or 
                        their designee.
                            ``(xxiv) From the Department of Defense--
                                    ``(I) the Secretary of Defense, or 
                                their designee;
                                    ``(II) a representative of the 
                                Army, as appointed by the Secretary of 
                                Defense;
                                    ``(III) a representative of the Air 
                                Force, as appointed by the Secretary of 
                                Defense; and
                                    ``(IV) a representative of the 
                                Navy, as appointed by the Secretary of 
                                Defense.
                    ``(B) Nonvoting members.--The individuals and 
                representatives listed in clauses (xiii) through (xxiv) 
                shall be nonvoting members.
                    ``(C) Chair.--The Maritime Security Advisor shall 
                serve as the Chair of the Board.
            ``(2) Duties.--Consistent with the National Maritime 
        Strategy under section 50114 of this title, the Board shall 
        carry out the following duties:
                    ``(A) Supporting the development of the marine 
                transportation system of the United States, including--
                            ``(i) assessing the adequacy of the marine 
                        transportation system (including ports, 
                        waterways, channels, and their intermodal 
                        connections);
                            ``(ii) promoting the integration of the 
                        marine transportation system with other modes 
                        of transportation and other uses of the marine 
                        environment; and
                            ``(iii) coordinating, improving the 
                        coordination of, and making recommendations 
                        with regard to Federal policies that impact the 
                        marine transportation system.
                    ``(B) Establishing policy priorities relating to, 
                and conducting independent oversight over, the 
                financial assistance programs under part C of subtitle 
                V of this title, including--
                            ``(i) not later than 1 year after the date 
                        of enactment of the SHIPS for America Act of 
                        2024 and annually thereafter, establishing 
                        targets for the number, type, and requirements 
                        of vessels to be included in each of--
                                    ``(I) the Maritime Security Fleet 
                                (consistent with the most recent 
                                Mobility Capability Requirements Study 
                                produced by United States 
                                Transportation Command);
                                    ``(II) the Cable Security Fleet;
                                    ``(III) the Tanker Security Fleet 
                                (consistent with the most recent 
                                Mobility Capability Requirements Study 
                                produced by United States 
                                Transportation Command);
                                    ``(IV) the Strategic Commercial 
                                Fleet; and
                                    ``(V) the Shipbuilding Financial 
                                Incentives Program;
                            ``(ii) submitting annual recommendations to 
                        the appropriate committees of Congress for any 
                        needed changes in the authorized number of 
                        vessels eligible to participate in the programs 
                        under part C of subtitle V of this title; and
                            ``(iii) conducting oversight of the 
                        administration of such financial assistance 
                        programs to ensure such programs support the 
                        strategic sealift objectives and policy of the 
                        United States, as established in section 59101 
                        of this title.
                    ``(C) Supporting the Maritime Administrator in all 
                efforts to conduct independent oversight of passenger 
                and cargo preference requirements and supporting 
                efforts to enable cargo to be carried on vessels of the 
                United States, including--
                            ``(i) conducting oversight and coordinating 
                        interagency efforts to comply with cargo 
                        preference requirements established under 
                        chapter 553 of this title and section 2631 of 
                        title 10;
                            ``(ii) independently verifying that all 
                        Federal agencies follow the requirements for 
                        cargoes procured, furnished, or financed by the 
                        United States Government under section 55305 of 
                        this title, and notifying the appropriate 
                        committees of Congress of any identified 
                        violations of the requirements of such section;
                            ``(iii) conducting outreach among 
                        nongovernmental stakeholders, including private 
                        industry, to encourage more cargo to be moved 
                        on vessels of the United States;
                            ``(iv) developing recommendations for 
                        regulations to be issued by Federal agencies to 
                        preference the movement of cargo on vessels of 
                        the United States; and
                            ``(v) submitting recommendations to the 
                        appropriate committees of Congress for changes 
                        to laws relating to passenger and cargo 
                        preferences for the purpose of establishing a 
                        more robust fleet of vessels of the United 
                        States.
                    ``(D) Conducting independent oversight and 
                developing guidance and recommendations related to the 
                enforcement of the requirements of chapters 121 and 551 
                of this title.
                    ``(E) Coordinating national efforts to develop a 
                robust maritime workforce that enhances the national 
                security and strategic sealift readiness of the United 
                States, including--
                            ``(i) coordinating and conducting oversight 
                        of interagency efforts and partnerships with 
                        the maritime industry and qualified labor 
                        organizations to recruit, train, and retain 
                        qualified licensed and unlicensed merchant 
                        mariners; and
                            ``(ii) coordinating and conducting 
                        oversight of interagency efforts and 
                        partnerships with the shipbuilding industry to 
                        recruit, train, and retain qualified workers in 
                        the shipbuilding industry of the United States.
                    ``(F) Establishing national priorities for research 
                and development of next-generation technologies to 
                enhance United States leadership in the shipbuilding 
                and maritime industries, including through the Center 
                for Maritime Innovation established under section 
                50307.
                    ``(G) Coordinating interagency efforts to ensure 
                vessels of the United States operating in international 
                commerce are privileged in regulation, taxation, fees, 
                insurance, and policy compared to foreign vessels 
                conducting trade with a United States-domiciled entity, 
                while remaining consistent with the international 
                obligations of the United States.
                    ``(H) Coordinating efforts to protect vessels of 
                the United States operating in international or 
                domestic commerce from physical and cybersecurity 
                threats.
                    ``(I) Conducting oversight of the use of funds from 
                the Maritime Security Trust Fund established under 
                section 9512 of the Internal Revenue Code of 1986, and 
                making recommendations to Congress for expenditures 
                from the Trust Fund.
                    ``(J) Conducting studies on subjects related to the 
                maritime industry and international shipping, and 
                undertaking other efforts related to strengthening the 
                maritime security of the United States.
                    ``(K) Carrying out other duties, as assigned by the 
                President in consultation with the Maritime Security 
                Advisor, related to the maritime industry, 
                shipbuilding, ship repair, strategic sealift, and the 
                marine transportation system of the United States.
            ``(3) Meetings.--The Board shall meet not less frequently 
        than quarterly.
            ``(4) Staff.--The Board may hire staff to support its 
        activities.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for each of fiscal years 2025 through 2034, 
from the Maritime Security Trust Fund established under section 9512 of 
the Internal Revenue Code of 1986 to the Maritime Security Board to 
staff the Board and carry out the duties described in this section.
    ``(d) Report to Congress.--
            ``(1) In general.--Not later than 180 days after the 
        President establishes the Maritime Security Board under this 
        section, and annually thereafter, the Board shall submit a 
        report to the appropriate committees of Congress describing--
                    ``(A) the actions that the Board has taken to carry 
                out the duties required of the Board under subsection 
                (b)(2); and
                    ``(B) a list of recommended actions that the Board 
                recommends Congress take to enhance the strength of the 
                United States maritime industry and support the 
                economic and national security needs of the United 
                States.
            ``(2) Appropriate committees of congress.--In this section, 
        the term `appropriate committees of Congress' has the meaning 
        given that term in section 4 of the SHIPS for America Act of 
        2024.''.
    (b) Clarification; Transition.--
            (1) Clarification.--The activities of the United States 
        Committee on the Marine Transportation System shall be carried 
        out by the Maritime Security Board.
            (2) Transition.--The Secretary of Transportation, shall 
        take such steps as may be necessary for the orderly transition 
        from the United States Committee on the Marine Transportation 
        System supported pursuant to section 50401 of title 46, United 
        States Code, as in effect on the day the before the date of 
        enactment of this Act, to the Maritime Security Board.
    (c) National Maritime Strategy.--Section 50114 of title 46, United 
States Code, is amended--
            (1) by striking subsection (a), and inserting the 
        following:
    ``(a) In General.--
            ``(1) In general.--Subject to paragraph (2), the Maritime 
        Security Advisor, in consultation with the Maritime Security 
        Board, shall develop a National Maritime Strategy and submit 
        that National Maritime Strategy to the appropriate committees 
        of Congress (as that term is defined in section 4 of the SHIPS 
        for America Act of 2024).
            ``(2) Transition.--Notwithstanding paragraph (1), if a 
        national maritime strategy has been developed and submitted in 
        accordance with this section, as in effect on the day before 
        the date of enactment of the SHIPS for America Act of 2024, in 
        the 1-year period before such date of enactment, the Maritime 
        Security Advisor shall implement and update that national 
        maritime strategy and shall not develop a new national maritime 
        strategy.''; and
            (2) by striking subsections (c) and (d) and inserting the 
        following:
    ``(c) Implementation.--Upon the release of a strategy under this 
section, the Maritime Security Advisor, in consultation with the 
Maritime Security Board, shall be responsible for implementing the 
contents and recommendations of the strategy.
    ``(d) Update.--The Maritime Security Advisor, in coordination with 
the Maritime Security Board, shall submit to the appropriate committees 
of Congress (as that term is defined in section 4 of the SHIPS for 
America Act of 2024) an update to the strategy developed under 
subsection (a) not less often than every 5 years.
    ``(e) Public Availability; Implementation Plan.--Not later than 6 
months after the submission of a strategy or update under subsection 
(a), the Maritime Security Advisor, in consultation with the Maritime 
Security Board, shall make publicly available on an appropriate website 
each strategy or updated strategy and an implementation plan for such 
strategy or update.''.

SEC. 102. MARITIME TRANSPORTATION SYSTEM NATIONAL ADVISORY COMMITTEE.

    Section 50402 is amended--
            (1) in subsection (b), by striking ``Secretary of 
        Transportation'' and inserting ``Maritime Security Advisor and 
        Maritime Security Board''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``by the 
                Secretary of Transportation'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Representation.--Members of the Committee shall be 
        appointed as follows:
                    ``(A) The Maritime Security Advisor shall appoint 
                the following members of the Committee:
                            ``(i) At least one member to represent the 
                        Environmental Protection Agency.
                            ``(ii) At least one member to represent the 
                        Department of Commerce.
                            ``(iii) At least one member to represent 
                        the Corps of Engineers.
                            ``(iv) At least one member to represent the 
                        Coast Guard.
                            ``(v) At least one member to represent 
                        Customs and Border Protection.
                            ``(vi) At least one member to represent the 
                        Maritime Administration.
                            ``(vii) At least one member to represent 
                        the Department of Agriculture.
                            ``(viii) At least one member to represent 
                        the State Department.
                            ``(ix) At least one member to represent 
                        State and local governmental entities.
                    ``(B) Additional members shall represent private 
                sector entities that reflect a cross-section of 
                maritime industries, including credentialed United 
                States merchant mariners, port and water stakeholders, 
                academia, and labor, of whom--
                            ``(i) 3 shall be appointed by the majority 
                        leader of the Senate;
                            ``(ii) 3 shall be appointed by the minority 
                        leader of the Senate;
                            ``(iii) 3 shall be appointed by the Speaker 
                        of the House of Representatives; and
                            ``(iv) 3 shall be appointed by the minority 
                        leader of the House of Representatives.
                    ``(C) The Maritime Security Advisor may appoint 
                additional members of the Committee, including 
                additional representatives from the United States 
                Merchant Marine Academy, State maritime academies, or 
                other Federal agencies, as the Secretary considers 
                appropriate.''; and
                    (C) in paragraph (4), by redesignating 
                subparagraphs (A) and (B) as clauses (i) and (ii), 
                respectively, and adjusting the margins accordingly;
                    (D) by redesignating paragraph (4) as subparagraph 
                (A) and adjusting the margins accordingly;
                    (E) by inserting after paragraph (3) the following:
            ``(4) Restrictions on members.--''; and
                    (F) at the end of paragraph (4), as so designated, 
                by inserting the following:
                    ``(B) Restrictions on additional members.--Members 
                appointed under this paragraph that are not 
                representing Federal agencies--
                            ``(i) shall remain on the Committee for a 
                        term of 3 years from the date that the member 
                        is appointed; and
                            ``(ii) may not serve more than 2 
                        consecutive terms.''.

SEC. 103. DIRECT HIRE AUTHORITY.

    (a) Maritime Administration Direct Hire Authority.--
            (1) In general.--The Maritime Administrator may appoint, 
        without regard to the provisions of sections 3309 through 3319 
        of title 5, United States Code, candidates needed for positions 
        within the Maritime Administration for which--
                    (A) public notice has been given;
                    (B) the Administrator has determined that a 
                critical hiring need exists; and
                    (C) the Administrator has consulted with the 
                Director of the Office of Personnel Management 
                regarding--
                            (i) the positions for which the 
                        Administrator plans to recruit;
                            (ii) the quantity of candidates 
                        Administrator is seeking; and
                            (iii) the assessment and selection policies 
                        the Administrator plans to utilize.
            (2) Definition of critical hiring need.--In this 
        subsection, the term ``critical hiring need'' means personnel 
        necessary for the implementation of this Act and associated 
        work.
    (b) Coast Guard Direct Hire Authority.--
            (1) In general.--The Secretary of the department in which 
        the Coast Guard is operating may appoint, without regard to the 
        provisions of sections 3309 through 3319 of title 5, United 
        States Code, candidates needed for positions within offices 
        under the Assistant Commandant for Prevention Policy of the 
        Coast Guard, for which--
                    (A) public notice has been given;
                    (B) the Secretary has determined that a critical 
                hiring need exists; and
                    (C) the Secretary has consulted with the Director 
                of the Office of Personnel Management regarding--
                            (i) the positions for which the Secretary 
                        plans to recruit;
                            (ii) the quantity of candidates Secretary 
                        is seeking; and
                            (iii) the assessment and selection policies 
                        the Secretary plans to utilize.
            (2) Definition of critical hiring need.--In this 
        subsection, the term ``critical hiring need'' means personnel 
        necessary for the implementation of this Act and associated 
        work.

SEC. 104. IMPLEMENTATION PLAN.

    (a) Implementation Plan Required.--Not later than 60 days after the 
date of enactment of this Act, the Maritime Administrator and the 
Secretary of the department in which the Coast Guard is operating shall 
each submit to the appropriate committees of Congress and the Maritime 
Security Board a separate implementation plan for carrying out this 
Act, and the amendments made by this Act.
    (b) Elements.--Each implementation plan required under subsection 
(a) shall include, for each action required of the Maritime 
Administrator and the Secretary of the department in which the Coast 
Guard is operating (as applicable) in this Act, including the 
amendments made by this Act--
            (1) an identification of all administrative restructuring 
        requirements;
            (2) an identification of each office or division within the 
        Maritime Administration or Coast Guard principally responsible 
        for each relevant section of this Act;
            (3) an identification of additional personnel needed to 
        sufficiently implement this Act, a hiring plan, and a training 
        plan;
            (4) an identification of any barrier (including any policy, 
        law, or regulation) to implementation of any section of this 
        Act, and recommendations to address those barriers;
            (5) a descriptive implementation timeline, taking into 
        account the administrative needs of the Maritime Administration 
        or the Coast Guard; and
            (6) any additional components determined appropriate by the 
        Maritime Administrator or such Secretary to ensure the success 
        of implementation of this Act.
    (c) Briefing.--Not later than 15 days after submitting each 
implementation plan required under subsection (a), the Maritime 
Administrator and the Secretary of the department in which the Coast 
Guard is operating shall provide a briefing to the appropriate 
committees of Congress on the status of that implementation plan 
required under subsection (a).
    (d) Biannual Update.--Not less frequently than biannually following 
the submission of the plans under subsection (a) and for 2 years 
thereafter, the Maritime Administrator and the Secretary of the 
department in which the Coast Guard is operating shall submit to the 
appropriate committees of Congress separate reports containing any 
updates on the implementation of such plans.
    (e) GAO Review.--The Comptroller General of the United States 
shall--
            (1) not later than 2 years after the date of enactment of 
        this Act, and biennially thereafter for 10 years, conduct a 
        review of the activities carried out in accordance with this 
        Act, and the amendments made by this Act; and
            (2) submit to the appropriate committees of Congress the 
        results of each review.

SEC. 105. FEDERAL MARITIME COMMISSION REPORT ON VESSELS OF THE UNITED 
              STATES.

    (a) In General.--The Federal Maritime Commission shall annually 
submit a report to the Maritime Security Board and the appropriate 
committees of Congress evaluating the competitiveness of vessels of the 
United States in foreign commerce. The Maritime Security Board shall 
utilize the findings of such report to inform the National Maritime 
Strategy under section 50114 of title 46, United States Code, and other 
activities of the Board.
    (b) Contents.--The report shall include--
            (1) metrics concerning carriage of foreign commerce on 
        vessels of the United States;
            (2) information about the price parity of carriage of 
        foreign commerce on vessels of the United States versus foreign 
        vessels (as defined in section 110 of title 46, United States 
        Code) by market;
            (3) identification of markets of opportunity for the United 
        States to compete in foreign commerce where rates are in 
        relative parity to vessels of the United States;
            (4) markets in which United States interests paid above 
        average rates for foreign commerce, including with foreign and 
        domestic carriers; and
            (5) an assessment of the foreign vessel registries of peer 
        competitor countries to determine--
                    (A) the roles of the governments of peer competitor 
                countries in their vessel registry processes, including 
                policy practices that may provide a disadvantage to the 
                United States;
                    (B) the sizes of the fleets of foreign vessels 
                registered with such countries, including how many of 
                such foreign vessels are domestically built and how 
                many are built in other countries; and
                    (C) the price parity of vessels of the United 
                States, as compared to foreign vessels registered with 
                peer competitor countries that are operating in global 
                markets identified as a priority by the Federal 
                Maritime Commission.

                 TITLE II--MARITIME SECURITY TRUST FUND

SEC. 201. APPORTIONMENT OF THE MARITIME SECURITY TRUST FUND.

    (a) In General.--Chapter 505 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 50505. Apportionment of the Maritime Security Trust Fund
    ``(a) Administrative Expenses.--There is authorized to be 
appropriated from the Maritime Security Trust Fund--
            ``(1) $30,000,000 to the Secretary of Transportation for 
        administrative expenses of the Maritime Administration to 
        administer subtitle V, for each of fiscal years 2025 through 
        2034;
            ``(2) $30,000,000 to the Secretary of the department in 
        which the Coast Guard is operating for administrative expenses 
        of the Coast Guard to administer subtitle II, for each of 
        fiscal years 2025 through 2034; and
            ``(3) $2,000,000 to the Federal Maritime Commission for 
        administrative expenses of the Federal Maritime Commission to 
        administer subtitle IV.
    ``(b) Merchant Marine of the United States.--Amounts in the 
Maritime Security Trust Fund shall be available for programs or 
activities associated with maintaining the merchant marine of the 
United States, which shall include--
            ``(1) the United States Merchant Marine Academy, as 
        authorized under chapter 513;
            ``(2) the State maritime academy support program under 
        chapter 515;
            ``(3) the National Security Multi-Mission Vessel program, 
        as authorized under section 3505 of the National Defense 
        Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130 
        Stat. 2776);
            ``(4) fuel funding for training ships operated by the State 
        maritime academies, as authorized under section 51504;
            ``(5) the Strategic Commercial Fleet, as authorized under 
        chapter 536;
            ``(6) the loan guarantee program, as authorized under 
        section 53702;
            ``(7) the Shipbuilding Financial Incentives Program, as 
        authorized under section 53801;
            ``(8) assistance to small shipyards and for maritime 
        training programs, as authorized under section 54101;
            ``(9) the port infrastructure development program, as 
        authorized under section 54301;
            ``(10) financing the transportation of agricultural 
        products, as authorized under section 55316;
            ``(11) the United States Center for Maritime Innovation, as 
        authorized under section 50307;
            ``(12) reimbursement of qualifying spouse relicensing costs 
        and business costs, as authorized under section 52103;
            ``(13) the United States Merchant Marine Career Retention 
        Program, as authorized under section 52105;
            ``(14) the maritime and shipbuilding recruiting campaign, 
        as authorized under section 611 of the SHIPS for America Act of 
        2024;
            ``(15) the Centers of Excellence for Domestic Maritime 
        Workforce Training and Education, as authorized under section 
        51706;
            ``(16) maritime worker data collection, as authorized under 
        section 615 of the SHIPS for America Act of 2024;
            ``(17) international scholarships for mariner and naval 
        architecture exchanges, as authorized under section 618 of the 
        SHIPS for America Act of 2024; and
            ``(18) merchant mariner credentialing modernization, as 
        authorized under section 631 of the SHIPS for America Act of 
        2024.''.
    (b) Clerical Amendment.--The table of sections for chapter 505 of 
title 46, United States Code, is amended by adding at the end the 
following:

``50505. Apportionment of the Maritime Security Trust Fund.''.

SEC. 202. REGULAR TONNAGE TAXES; PRESIDENTIAL SUSPENSION OF TONNAGE 
              TAXES AND LIGHT MONEY.

    (a) Regular Tonnage Taxes.--Section 60301(b) of title 46, United 
States Code, is amended by striking ``, for fiscal years 2006 through 
2010, and 6 cents per ton, not to exceed a total of 30 cents per ton 
per year, for each fiscal year thereafter,''.
    (b) Presidential Suspension of Tonnage Taxes and Light Money.--
Section 60304 of title 46, United States Code, is amended to read as 
follows:
``Sec. 60304. Presidential suspension of tonnage taxes and light money
    ``(a) In General.--Except as provided in subsection (b), if the 
President is satisfied that the government of a foreign country does 
not impose discriminating or countervailing duties to the disadvantage 
of the United States, the President may suspend the imposition of 
special tonnage taxes and light money under sections 60302 and 60303 of 
this title on vessels of that country.
    ``(b) Exception.--Subsection (a) shall not apply to any vessel 
that--
            ``(1) is owned or operated by a foreign entity of concern 
        (as that term is defined in section 4 of the SHIPS for America 
        Act of 2024);
            ``(2) is a vessel registered under a registry of a foreign 
        country of concern (as that term is defined in section 4 of the 
        SHIPS for America Act of 2024); or
            ``(3) was a vessel registered under a registry of a foreign 
        country of concern (as that term is defined in section 4 of the 
        SHIPS for America Act of 2024) at any time during the 3 years 
        preceding the date of the determination of the application of 
        subsection (a).''.

                     TITLE III--SEALIFT CAPABILITY

SEC. 301. SEALIFT CAPABILITY.

    (a) In General.--Subtitle V of title 46, United States Code, is 
amended by adding at the end the following:

                      ``PART H--STRATEGIC SEALIFT

``Sec.
``59101. Objectives and policy.
``59102. Procurement, maintenance, and operation.
``59103. Sealift prioritization.
``59104. International agreements.
``59105. Briefing on shipbuilding capacity.
``59106. Briefing on privileging fleet.
``59107. Report on privilege.
``59108. Report on requirements for sealift force deployment.
``59109. Assessment on marine infrastructure readiness.
``Sec. 59101. Objectives and policy
    ``(a) Objectives.--It is necessary for the national defense and 
economic security of the United States that the United States have a 
fleet of vessels of the United States capable of providing and 
supporting strategic sealift--
            ``(1) sufficient to meet defense deployment and essential 
        economic activities for the United States in times of crisis or 
        war;
            ``(2) sufficient to respond unilaterally to national 
        security threats in geographic areas not covered by alliance 
        commitments and ensure economic security resilience for United 
        States trade; and
            ``(3) built, operated, and maintained during peace, crisis, 
        and war primarily in the United States to protect and ensure 
        national security resiliency and avoid foreign coercion of 
        critical supply chains.
    ``(b) Policy.--It is the policy of the United States to encourage 
and aid the development and maintenance of a fleet of vessels of the 
United States with strategic sealift capabilities satisfying the 
objectives described in subsection (a).
    ``(c) Strategy Required.--
            ``(1) In general.--The Maritime Security Board shall 
        annually develop a strategy to leverage the financial 
        assistance programs established under part C of this subtitle 
        to expand the fleet of vessels of the United States to meet the 
        minimum number of vessels needed to accomplish the objectives 
        described under subsection (a).
            ``(2) Strategy components.--The strategy developed by the 
        Maritime Security Board shall include--
                    ``(A) annual goals for the number of vessels that 
                will be brought into the fleet of vessels of the United 
                States capable of providing strategic sealift utilizing 
                the Maritime Security Fleet under chapter 531 of this 
                title, the Cable Security Fleet under chapter 532 of 
                this title, the Tanker Security Fleet under chapter 534 
                of this title, the Strategic Commercial Fleet under 
                chapter 536 of this title, and the Shipbuilding 
                Financial Incentives program, consistent with the most 
                recent Mobility Capability Requirements Study produced 
                by United States Transportation Command; and
                    ``(B) an assessment of domestic shipbuilding 
                capacity and a strategy to increase the capacity of the 
                domestic shipbuilding industry utilizing the 
                Shipbuilding Financial Incentives program.
            ``(3) National maritime strategy.--The strategy developed 
        by the Maritime Security Board under paragraph (1) shall be 
        consistent with the National Maritime Strategy developed under 
        section 50114.
    ``(d) Report Required.--
            ``(1) In general.--Upon completion, the Maritime Security 
        Board shall transmit to the appropriate committees of Congress 
        a summary of the strategy developed under subsection (c), with 
        a classified annex as necessary.
            ``(2) Definition.--In this part, the term `appropriate 
        committees of Congress' has the meaning given that term in 
        section 4 of the SHIPS for America Act of 2024.
``Sec. 59102. Procurement, maintenance, and operation
    ``(a) Statement of Policy.--The Maritime Administrator, in 
coordination with the Secretary of Defense and the Secretary of 
Homeland Security, shall build, acquire, maintain, coordinate, support, 
and operate a sufficient and privileged fleet of vessels of the United 
States with commercial and military sealift capability.
    ``(b) Supplemental Capability.--In developing sealift capability 
under this part, the Secretary of Transportation and the Secretary of 
Defense shall continue to operate a sufficient Maritime Security Fleet 
under chapter 531 of this title, a Cable Security Fleet under chapter 
532 of this title, a Tanker Security Fleet under chapter 534 of this 
title, the Strategic Commercial Fleet under chapter 536 of this title, 
a Military Sealift Command of the Department of the Navy, and a Ready 
Reserve Force component of the National Defense Reserve Fleet under 
section 57100 of this title, to provide capacity and resiliency for 
unilateral United States strategic sealift in peace, crisis, and war.
    ``(c) Judicial Review.--No court shall have jurisdiction to review 
decisions made by the Maritime Administrator, the Secretary of Defense, 
or the Secretary of Homeland Security with respect to this section.
``Sec. 59103. Sealift prioritization
    ``(a) In General.--In building, acquiring, maintaining, 
coordinating, supporting, and operating a fleet of vessels capable of 
providing sealift capacity during wartime and crisis, the Maritime 
Administrator, in coordination with the Secretary of Defense, shall 
ensure the availability of vessels, in the following order of priority:
            ``(1) Commercial vessels of the United States.
            ``(2) Vessels of the United States that are owned and 
        operated by the United States Government.
            ``(3) Vessels of countries that are defense treaty allies 
        of the United States.
            ``(4) Vessels of countries that are strategic partners of 
        the United States.
    ``(b) Judicial Review.--No court shall have jurisdiction to review 
decisions made by the Maritime Administrator or the Secretary of 
Defense with respect to this section.
``Sec. 59104. International agreements
    ``(a) In General.--To support the Secretary of Defense and the 
Secretary of Transportation in building, acquiring, maintaining, 
coordinating, supporting, and operating a fleet with sealift capability 
under this part, the Maritime Administrator, in coordination with the 
Secretary of State and the Secretary of Defense, shall identify 
opportunities to establish and update agreements with treaty allies and 
strategic partners of the United States to--
            ``(1) meet wartime sealift requirements of such allies and 
        partners;
            ``(2) augment the strategic sealift capabilities of the 
        United States during crisis and war; and
            ``(3) support the maritime industries of both the United 
        States and treaty allies and strategic partners.
    ``(b) Report.--Not later than March 1, 2025, the Maritime 
Administrator, in coordination with the Secretary of State and the 
Secretary of Defense, shall provide to Congress an evaluation of the 
status of agreements described in subsection (a), including--
            ``(1) an assessment of international agreements described 
        in such subsection and recommendations for updating such 
        agreements to reflect the global security environment; and
            ``(2) an assessment of the extent to which such 
        international agreements include the vessels owned by citizens 
        of these treaty allies and strategic partners.
``Sec. 59105. Briefing on shipbuilding capacity
    ``(a) In General.--Not later than March 1, 2025, the Secretary of 
Transportation and the Secretary of Defense shall brief the appropriate 
committees of Congress on the capacity of the United States 
shipbuilding industry to meet peacetime and wartime requirements to 
build, maintain, and repair a fleet of vessels of the United States 
capable of providing strategic sealift.
    ``(b) Contents.--
            ``(1) In general.--In briefing the appropriate committees 
        of Congress under subsection (a), the Secretary of 
        Transportation and the Secretary of Defense shall include an 
        assessment and recommendations for improving the critical 
        shipbuilding infrastructure, workforce recruitment, 
        development, and retention, and critical supply chains and 
        critical repair parts of the United States, including ways in 
        which allies and partners can contribute or share best 
        practices.
            ``(2) Implementation.--The Maritime Security Advisor shall, 
        in addition to the assessment under paragraph (1), provide an 
        assessment on the effects of the Goldwater-Nichols Department 
        of Defense Reorganization Act of 1986 (Public Law 99-433) and 
        how implementation of such Act may affect shipbuilding 
        processes of the Department of the Navy.
``Sec. 59106. Briefing on privileging fleet
    ``(a) In General.--Not later than March 1, 2025, the Secretary of 
Transportation, in coordination with the Secretary of Homeland 
Security, the Secretary of State, the Secretary of Commerce, and the 
Federal Maritime Commission, shall brief the appropriate committees of 
Congress on available options for establishing privileges for vessels 
of the United States operating in foreign commerce.
    ``(b) Contents.--In briefing Congress under subsection (a), the 
Secretary of Transportation shall provide recommendations for potential 
incentives for civil, commercial, and government entities, including 
allies and partners, to ship goods on vessels of the United States.
``Sec. 59107. Report on privilege
    ``(a) In General.--Not later than March 1, 2025, the Secretary of 
Transportation, in coordination with the Secretary of Commerce, the 
Chair of the Federal Maritime Commission, and the Director of the 
Office of Management and Budget, shall submit to the appropriate 
committees of Congress a report including ways to ensure vessels of the 
United States operating in foreign commerce are privileged in 
regulation, taxation, fees, insurance, and policy compared to foreign 
vessels conducting trade with a United States domiciled entity, while 
remaining consistent with the international obligations of the United 
States.
    ``(b) Contents.--In submitting the report under subsection (a), the 
Secretary of Transportation shall include options for regulating trade 
with foreign vessels in order to sustain and grow the Maritime Security 
Fleet under chapter 531 of this title, the Cable Security Fleet under 
chapter 532 of this title, the Tanker Security Fleet under chapter 534 
of this title, the Strategic Commercial Fleet under chapter 536 of this 
title, and other vessels of the United States operating in foreign 
commerce.
``Sec. 59108. Report on requirements for sealift force deployment
    ``(a) In General.--Not later than March 1, 2025, the Secretary of 
Defense shall submit to the appropriate committees of Congress a 
report--
            ``(1) on the military sealift requirements of the Armed 
        Forces of the United States; and
            ``(2) in consultation with the Secretary of Transportation, 
        containing recommendations for how to maintain, improve, or 
        expand the Maritime Security Fleet under chapter 531 of this 
        title, the Cable Security Fleet under chapter 532 of this 
        title, the Tanker Security Fleet under chapter 534 of this 
        title, the Strategic Commercial Fleet under chapter 536 of this 
        title, and the Ready Reserve Force component of the National 
        Defense Reserve Fleet under section 57100 of this title, to 
        meet the military sealift needs of the United States.
    ``(b) Contents.--The report under subsection (a) shall include an 
assessment of, and recommendations for how to enable, making the Ready 
Reserve Force component of the National Defense Reserve Fleet under 
section 57100 of this title active in trade through a public-private 
partnership that enables financing, building, manning, operating, 
maintaining, and repairing the vessels of such Fleet, while 
guaranteeing assured effective control and surge capacity in times of 
crisis or war.
``Sec. 59109. Assessment on marine infrastructure readiness
    ``(a) In General.--Not later than March 1, 2026, and every 2 years 
thereafter, the Secretaries of Defense, Homeland Security, Commerce, 
and Transportation shall provide the appropriate committees of Congress 
an assessment on--
            ``(1) the readiness and sufficiency of the marine 
        infrastructure, shipping industry, and shipbuilding industry of 
        the United States, and vessels of the United States, to meet 
        the economic and national security strategic sealift needs of 
        the United States and operate in a contested environment;
            ``(2) the vulnerability of the economy of the United States 
        to coercion or control from strategic competitors of the United 
        States through the ocean-going trades; and
            ``(3)(A) critical infrastructure and cybersecurity 
        vulnerabilities in--
                    ``(i) the maritime transportation system of the 
                United States, including ports, shipyards, repair 
                yards, inland waterways, and vessels of the United 
                States; and
                    ``(ii) foreign investment in marine infrastructure; 
                and
            ``(B) how to reduce the risks of such vulnerabilities.
    ``(b) Secretary of State.--Not later than March 1, 2026, and every 
2 years thereafter, the Secretary of State shall provide the 
appropriate committees of Congress an assessment on--
            ``(1) arrangements and agreements between the United States 
        and countries that are defense treaty allies for access to the 
        global marine transportation infrastructure, such as ports, 
        harbors, and waterways; and
            ``(2) assurances, arrangements, and agreements between the 
        United States and countries that are defense treaty allies to 
        augment United States sealift capabilities in times of crisis 
        and war.''.
    (b) Clerical Amendment.--The table of chapters for subtitle V of 
title 46, United States Code, is amended by adding at the end the 
following:

                     ``Part H--Strategic Sealift''.

SEC. 302. NATIONAL FREIGHT STRATEGIC PLAN.

    Section 70102(b) of title 49, United States Code, is amended--
            (1) in paragraph (16), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (17), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(18) consideration of United States strategic sealift 
        objectives and strategies established under section 59101 of 
        title 46; and
            ``(19) consideration of maritime networks in multimodal 
        freight corridors.''.

SEC. 303. FOREIGN SHIPPING PRACTICES; CONTROLLED CARRIERS.

    (a) Foreign Shipping Practices.--Section 42301(b) of title 46, 
United States Code, is amended--
            (1) in paragraph (2), by inserting ``or passengers'' after 
        ``transportation of cargo''; and
            (2) in paragraph (5), by inserting ``or passengers'' after 
        ``carriage of cargo''.
    (b) Controlled Carriers.--Chapter 407 of title 46, United States 
Code, is amended--
            (1) in section 40701--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``or'' at 
                        the end;
                            (ii) in paragraph (2), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(3) arrange or provide passenger transportation at a fare 
        that is below a just and reasonable level.'';
                    (B) in subsection (b), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'';
                    (C) in subsection (c), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare''; and
                    (D) in subsection (d), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'';
            (2) in section 40702(b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``rule, or regulation'' and inserting ``rule, 
                regulation, or fare'';
                    (B) in paragraph (1), by striking ``rate or 
                charge'' and inserting ``rate, charge, or fare''; and
                    (C) in paragraph (2), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'';
            (3) in section 40703, by striking ``a rate, charge,'' and 
        inserting ``a rate, fare, charge,''; and
            (4) in section 40704--
                    (A) in subsection (a), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'';
                    (B) in subsection (b), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'';
                    (C) in subsection (c), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'' each place the term appears;
                    (D) in subsection (d)--
                            (i) in paragraph (1), by striking ``rule, 
                        or regulation'' and inserting ``rule, 
                        regulation, or fare'' each place the term 
                        appears; and
                            (ii) in paragraph (2), by striking ``rule, 
                        or regulation'' and inserting ``rule, 
                        regulation, or fare'' each place the term 
                        appears; and
                    (E) in subsection (e), by striking ``rule, or 
                regulation'' and inserting ``rule, regulation, or 
                fare'' each place the term appears.

    TITLE IV--VESSELS OF THE UNITED STATES IN INTERNATIONAL COMMERCE

                 Subtitle A--Strategic Sealift Programs

SEC. 401. STRATEGIC COMMERCIAL FLEET.

    (a) In General.--Part C of subtitle V of title 46, United States 
Code, is amended by inserting after chapter 535 the following:

               ``CHAPTER 536--STRATEGIC COMMERCIAL FLEET

``Sec.
``53601. Definitions.
``53602. Establishment of Strategic Commercial Fleet.
``53603. Operating agreements.
``53604. Payments.
``53605. National security requirements.
``53606. Regulations.
``Sec. 53601. Definitions
    ``In this chapter:
            ``(1) Administrator.--The term `Administrator' means the 
        Maritime Administrator.
            ``(2) Appropriate committees of congress.--The term 
        `appropriate committees of Congress' means--
                    ``(A) the Committee on Armed Services, the 
                Committee on Commerce, Science, and Transportation, and 
                the Committee on Appropriations of the Senate; and
                    ``(B) the Committee on Armed Services, the 
                Committee on Transportation and Infrastructure, and the 
                Committee on Appropriations of the House of 
                Representatives.
            ``(3) Coastwise trade.--The term `coastwise trade' means 
        commerce or trade that is subject to the requirements of 
        section 55102.
            ``(4) Covered entity.--The term `covered entity' means--
                    ``(A) any owner or operator of a vessel eligible 
                under section 53602(d); or
                    ``(B) a bid team consisting of--
                            ``(i) an entity eligible under subparagraph 
                        (A);
                            ``(ii) any shipyard of the United States 
                        with the ability, experience, financial 
                        resources, and other qualifications necessary 
                        for the construction or repair of a vessel 
                        eligible for inclusion in the Strategic 
                        Commercial Fleet; and
                            ``(iii) any other legal entity that is not 
                        a foreign entity of concern.
            ``(5) Fleet.--The term `Fleet' means the Strategic 
        Commercial Fleet established under section 53602.
            ``(6) Foreign commerce.--The term `foreign commerce' 
        means--
                    ``(A) commerce or trade between the United States, 
                its territories or possessions, or the District of 
                Columbia, and a foreign country; and
                    ``(B) commerce or trade between foreign countries.
            ``(7) Foreign country of concern; foreign entity of 
        concern.--The terms `foreign country of concern' and `foreign 
        entity of concern' have the meanings given such terms in 
        section 4 of the SHIPS for America Act of 2024.
            ``(8) Qualified foreign built vessel.--The term `qualified 
        foreign built vessel'--
                    ``(A) means a vessel that--
                            ``(i) is not more than 14 years of age; and
                            ``(ii) was constructed (or reconstructed) 
                        outside the United States; and
                    ``(B) does not include a vessel that, prior to 
                entry into the Fleet--
                            ``(i) was owned or operated by a foreign 
                        entity of concern;
                            ``(ii) is a vessel of a foreign country of 
                        concern;
                            ``(iii) was constructed by a shipyard that 
                        was owned or operated by a foreign entity of 
                        concern or located in a foreign country of 
                        concern; or
                            ``(iv) was registered as a vessel of a 
                        foreign country of concern at any time during 
                        the 3 years prior to entry into the Fleet.
            ``(9) United states built vessel.--The term `United States 
        built vessel' means a vessel that is constructed in the United 
        States (and, if reconstructed, reconstructed in the United 
        States).
            ``(10) United states citizen trust.--The term `United 
        States citizen trust' has the meaning given such term in 
        section 53201.
``Sec. 53602. Establishment of Strategic Commercial Fleet
    ``(a) In General.--The Administrator, in consultation with the 
Secretary of Defense, shall establish a fleet, to be known as the 
`Strategic Commercial Fleet', of active, commercially viable, 
militarily useful, privately owned vessels to meet national defense and 
other security requirements and maintain a United States presence in 
international commercial shipping.
    ``(b) Number of Vessels.--The Administrator shall seek to select 
eligible vessels described in subsection (d) for the Fleet through an 
annual competitive selection process in accordance with the annual 
target number for the Fleet recommended by the Maritime Security Board 
under section 50401(b)(2)(B)(i). Through such annual selection process, 
the Administrator shall--
            ``(1) select for inclusion in the Fleet not fewer than 10 
        vessels in the 12-month period that begins on the date that is 
        2 years after the date of enactment of this section;
            ``(2) increase the number of vessels selected for inclusion 
        in the Fleet annually such that not later than 5 years after 
        such date of enactment, not fewer than 20 vessels are selected 
        for such inclusion annually; and
            ``(3) ensure that the total number of vessels included in 
        the fleet shall be not more than 250 vessels at any point in 
        time.
    ``(c) Solicitation; Entry Into Fleet.--
            ``(1) Solicitation.--
                    ``(A) In general.--The Administrator shall solicit 
                applications from covered entities to competitively 
                select vessels that are eligible under subsection (d) 
                and meet the requirements of this subsection for 
                inclusion in the Fleet.
                    ``(B) Public solicitation requirements.--In 
                soliciting applications under subparagraph (A), the 
                Administrator shall--
                            ``(i) publish a notice in the Federal 
                        Register, which, at a minimum, identifies the 
                        requirements for the number of vessels as 
                        established by the Administrator and the 
                        Maritime Security Board under subsection (b); 
                        and
                            ``(ii) allow applicants not less than 30 
                        days to submit an application for entry into 
                        the Fleet.
            ``(2) Eligible applications.--The Administrator shall 
        solicit and accept applications in separate processes for each 
        of the following:
                    ``(A) Newly constructed vessels.--
                            ``(i) In general.--A covered entity may 
                        submit an application for the Fleet that 
                        involves the construction of a United States 
                        built vessel and operation of such vessel as a 
                        vessel of the United States in foreign 
                        commerce.
                            ``(ii) Interim vessel.--An application 
                        described in clause (i) from a covered entity 
                        may include a proposal for the use of an 
                        interim vessel, if such proposal provides 
                        that--
                                    ``(I) the covered entity will 
                                operate a qualified foreign-built 
                                vessel as a vessel of the United States 
                                in foreign commerce as part of the 
                                Fleet until the United States built 
                                vessel described in such clause enters 
                                the Fleet, in accordance with the 
                                milestones established within the 
                                operating agreement under section 
                                53603(c)(1);
                                    ``(II) when the United States built 
                                vessel enters the Fleet or the covered 
                                entity fails to meet milestones 
                                established in the operating agreement, 
                                the qualified foreign-built vessel 
                                shall be removed from the Fleet; and
                                    ``(III) the covered entity may then 
                                transfer and register the qualified 
                                foreign-built vessel under a registry 
                                of any foreign country that is not a 
                                foreign country of concern.
                    ``(B) Qualified foreign-built vessels.--
                            ``(i) In general.--Through fiscal year 
                        2029, a covered entity may submit an 
                        application for the Fleet that involves the 
                        operation of a qualified foreign-built vessel 
                        as a vessel of the United States in foreign 
                        commerce.
                            ``(ii) Exception.--After fiscal year 2029, 
                        the Administrator may not enter into a new 
                        agreement or renew an existing agreement to 
                        bring a qualified foreign-built vessel into the 
                        Fleet unless--
                                    ``(I) the vessel is operating as an 
                                interim vessel under subparagraph 
                                (A)(ii); or
                                    ``(II) the Administrator and 
                                Secretary of Defense, in consultation 
                                with the Maritime Security Board, 
                                jointly certify to the appropriate 
                                committees of Congress that adding 
                                additional qualified foreign-built 
                                vessels to the Fleet is necessary for 
                                the national security of the United 
                                States until replaced by a newly 
                                constructed vessel to meet the schedule 
                                under subsection (b).
            ``(3) Procedure.--
                    ``(A) In general.--A covered entity shall submit an 
                eligible application under paragraph (2) as at such 
                time, in such manner, and containing such information 
                as the Administrator may require. Such application 
                shall include--
                            ``(i) a proposed annual operating support 
                        payment, which may cover the difference in 
                        operating costs associated with operating a 
                        vessel of the United States as compared to a 
                        fair and reasonable estimate of the cost of 
                        operating that type of vessel under the laws of 
                        a foreign country;
                            ``(ii) in the case of an application 
                        described in paragraph (2)(A), a proposed 
                        annual capital support payment, which may cover 
                        the difference in capital costs associated with 
                        constructing a vessel in the United States as 
                        compared to a fair and reasonable estimate of 
                        the cost of the construction of that type of 
                        vessel in a foreign shipyard; and
                            ``(iii) any other support payments needed 
                        to make a vessel commercially viable in foreign 
                        commerce.
                    ``(B) Bid team.--In the case of an eligible entity 
                that is a bid team described in section 53601(3)(B), 
                such team shall jointly submit an application under 
                this subsection for inclusion in the Fleet.
            ``(4) Acceptance into fleet.--
                    ``(A) In general.--The Administrator shall evaluate 
                eligible applications submitted under this subsection 
                in order to, in accordance with this paragraph, select 
                applications that meet the requirements of this section 
                for acceptance in the Fleet.
                    ``(B) Citizenship preference.--In selecting 
                applications to meet the requirements of this section, 
                the Administrator shall ensure, to the extent 
                sufficient qualified applications are received under 
                this subsection, that not less than 25 percent of 
                vessels selected for the Fleet shall be owned or 
                operated by a covered entity that is, or a bid team led 
                by, a citizen of the United States under section 50501.
                    ``(C) Priority.--In evaluating eligible 
                applications for selection in the Fleet and subject to 
                subparagraph (B), the Administrator shall give priority 
                to--
                            ``(i) applications that represent the best 
                        value to the Federal Government; and
                            ``(ii) applications for vessels, or for 
                        vessels providing services, that are determined 
                        by the Maritime Security Board to have 
                        capabilities critical to the national and 
                        economic security of the United States.
                    ``(D) Relationship to the tanker security fleet.--
                If the most recent Mobility Capability Requirements 
                Study produced by United States Transportation Command 
                identifies a need for a fleet of tanker vessels that 
                are vessels of the United States that exceeds the size 
                of the Tanker Security Fleet established under chapter 
                534 of this title, the Administrator, in coordination 
                with the Maritime Security Board, may select for 
                inclusion in the Fleet a number of tanker vessels that 
                is consistent with the requirements of the Study.
                    ``(E) Considerations for review.--In evaluating 
                eligible applications submitted under this subsection 
                for selection in the Fleet, the Administrator shall--
                            ``(i) ensure that any vessel so selected 
                        will be suitable for use by the United States 
                        for national defense or military purposes in 
                        time of war or national emergency;
                            ``(ii) ensure that any vessel so selected 
                        will aid in the promotion and development of 
                        foreign commerce;
                            ``(iii) confirm that--
                                    ``(I) the proposed use of the 
                                vessel in commercial service is 
                                reasonable; and
                                    ``(II) the owner or operator of the 
                                vessel possesses the ability, 
                                experience, financial resources, and 
                                other qualifications necessary for the 
                                operation and maintenance of the 
                                vessel;
                            ``(iv) confirm that a shipyard selected to 
                        construct a vessel under this section possesses 
                        the ability, experience, financial resources, 
                        equipment, and other qualifications necessary 
                        to properly construct the vessel;
                            ``(v) ensure the price for the construction 
                        (if applicable) and operation of a vessel under 
                        this section is fair and reasonable;
                            ``(vi) consider whether the covered entity 
                        commits to--
                                    ``(I) use equipment, materials, and 
                                supplies that are produced in the 
                                United States; and
                                    ``(II) utilize, to the maximum 
                                extent practicable, subcontractors and 
                                suppliers that are based in the United 
                                States;
                            ``(vii) consider whether the covered entity 
                        commits to repair, repower, and recondition a 
                        vessel under this section in a shipyard of the 
                        United States; and
                            ``(viii) consider whether the covered 
                        entity has made commitments to worker and 
                        community investment, including through--
                                    ``(I) programs to expand employment 
                                opportunity for economically 
                                disadvantaged individuals; or
                                    ``(II) securing commitments from 
                                regional educational and training 
                                entities and institutions of higher 
                                education, as defined in section 102 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1002), to provide workforce 
                                training, including programming for 
                                training and job placement of 
                                economically disadvantaged individuals.
            ``(5) Timing.--
                    ``(A) Qualified foreign vessel.--Not later than 180 
                days after entering into an operating agreement under 
                section 53603 with a covered entity for inclusion of a 
                qualified foreign-built vessel into the Fleet, such 
                vessel shall be placed into service as part of the 
                Fleet.
                    ``(B) Newly constructed vessel.--Not later than 36 
                months after entering into an operating agreement under 
                section 53603 with a covered entity for inclusion of a 
                newly constructed United States built vessel described 
                in paragraph (2)(A), such vessel shall be placed into 
                service as part of the Fleet.
                    ``(C) Delayed admission.--The Administrator may 
                delay the entry of a vessel selected to participate in 
                the Fleet for--
                            ``(i) a delay in the construction of such 
                        vessel; or
                            ``(ii) difficulty of the owner or operator 
                        of such vessel in recruiting United States 
                        mariners as required under section 
                        53603(b)(1)(A).
    ``(d) Vessel Eligibility.--A vessel is eligible to be included in 
the Fleet if--
            ``(1) the vessel--
                    ``(A) is a vessel of the United States; or
                    ``(B) is not a vessel of the United States, but--
                            ``(i) the owner of the vessel has 
                        demonstrated an intent to have the vessel 
                        documented under chapter 121 of this title if 
                        it is included in the Fleet; and
                            ``(ii) at the time an operating agreement 
                        is entered into under section 53603, the vessel 
                        is eligible for documentation under chapter 121 
                        of this title;
            ``(2) the vessel is a United States built vessel or a 
        qualified foreign-built vessel;
            ``(3) the vessel is--
                    ``(A) a bulk carrier vessel;
                    ``(B) a tanker vessel;
                    ``(C) a roll-on/roll-off vessel;
                    ``(D) a liquefied natural gas tanker vessel;
                    ``(E) a container vessel;
                    ``(F) a multi-purpose vessel;
                    ``(G) a cable vessel (as defined in section 53201 
                of this title);
                    ``(H) a heavy-lift vessel; or
                    ``(I) any other type of vessel determined 
                appropriate by the Administrator, in consultation with 
                the Maritime Security Board;
            ``(4) the vessel is operated (or will be operated) in 
        providing transportation in foreign commerce;
            ``(5) the vessel meets the requirements of paragraph (1), 
        (2), (3), or (4) of subsection (e);
            ``(6) the vessel--
                    ``(A) is suitable for use by the United States for 
                national defense or military purposes in time of war or 
                national emergency, as determined by the Secretary of 
                Defense;
                    ``(B) is commercially viable, as determined by the 
                Administrator; and
                    ``(C) has dedicated space for the training of--
                            ``(i) cadets of the Merchant Marine Academy 
                        consistent with the requirements of section 
                        51307(b);
                            ``(ii) students of a State maritime 
                        academy, consistent with the requirements of 
                        section 51507; or
                            ``(iii) participants in another workforce 
                        training program identified by the 
                        Administrator; and
            ``(7) the vessel will, for the period of an operating 
        agreement under section 53603 that applies to the vessel, meet 
        any other requirement determined appropriate by the 
        Administrator.
    ``(e) Requirements Regarding Citizenship of Owners, Charterers, and 
Operators.--
            ``(1) Vessel owned and operated by section 50501 
        citizens.--A vessel meets the requirements of this paragraph 
        if, during the period of an operating agreement under this 
        chapter that applies to the vessel, the vessel will be owned 
        and operated by 1 or more persons that are citizens of the 
        United States under section 50501.
            ``(2) Vessel owned by section 50501 citizen or united 
        states citizen trust and chartered to documentation citizen.--A 
        vessel meets the requirements of this paragraph if--
                    ``(A) during the period of an operating agreement 
                under this chapter that applies to the vessel, the 
                vessel will be--
                            ``(i) owned by a person that is a citizen 
                        of the United States under section 50501 of 
                        this title or that is a United States citizen 
                        trust; and
                            ``(ii) demise chartered to a person--
                                    ``(I) that is eligible to document 
                                the vessel under chapter 121 of this 
                                title;
                                    ``(II) the chairman of the board of 
                                directors, chief executive officer, and 
                                a majority of the members of the board 
                                of directors of which are citizens of 
                                the United States under section 50501 
                                of this title, and are appointed and 
                                subjected to removal only upon approval 
                                by the Administrator; and
                                    ``(III) that certifies to the 
                                Administrator that there are no 
                                treaties, statutes, regulations, or 
                                other laws that would prohibit the 
                                covered entity for the vessel from 
                                performing its obligations under an 
                                operating agreement under this chapter;
                    ``(B) in the case of a vessel that will be demise 
                chartered to a person that is owned or controlled by 
                another person that is not a citizen of the United 
                States under section 50501 of this title, the other 
                person enters into an agreement with the Administrator 
                not to influence the operation of the vessel in a 
                manner that will adversely affect the interests of the 
                United States; and
                    ``(C) the Administrator and the Secretary of 
                Defense notify the appropriate committees of Congress 
                that they concur with the certification required under 
                subparagraph (A)(ii)(III) and have reviewed and agree 
                that there are no other legal, operational, or other 
                impediments that would prohibit the covered entity for 
                the vessel from performing its obligations under an 
                operating agreement under this chapter.
            ``(3) Vessel owned and operated by defense contractor.--A 
        vessel meets the requirements of this paragraph if--
                    ``(A) during the period of an operating agreement 
                under this chapter that applies to the vessel, the 
                vessel will be owned and operated by a person that--
                            ``(i) is eligible to document a vessel 
                        under chapter 121 of this title;
                            ``(ii) operates or manages other United 
                        States-documented vessels for the Secretary of 
                        Defense, or charters other vessels to the 
                        Secretary of Defense;
                            ``(iii) has entered into a special security 
                        agreement for purposes of this paragraph with 
                        the Secretary of Defense;
                            ``(iv) makes the certification described in 
                        paragraph (2)(A)(ii)(III); and
                            ``(v) in the case of a vessel described in 
                        paragraph (2)(B), enters into an agreement 
                        referred to in that paragraph; and
                    ``(B) the Administrator and the Secretary of 
                Defense notify the appropriate committees of Congress 
                that they concur with the certification required under 
                subparagraph (A)(iv), and have reviewed and agree that 
                there are no other legal, operational, or other 
                impediments that would prohibit the covered entity for 
                the vessel from performing its obligations under an 
                operating agreement under this chapter.
            ``(4) Vessel owned by documentation citizen and chartered 
        to section 50501 citizen.--A vessel meets the requirements of 
        this paragraph if, during the period of an operating agreement 
        under this chapter that applies to the vessel, the vessel will 
        be--
                    ``(A) owned by a person that is eligible to 
                document a vessel under chapter 121; and
                    ``(B) demise chartered to a person that is a 
                citizen of the United States under section 50501.
``Sec. 53603. Operating agreements
    ``(a) In General.--The Administrator shall require, as a condition 
of including any vessel in the Fleet, that the covered entity for the 
vessel enter into an operating agreement under this section.
    ``(b) Requirements.--
            ``(1) In general.--An operating agreement required under 
        subsection (a) shall require the vessel subject to such 
        agreement to meet the following requirements:
                    ``(A) During the period in which the vessel is 
                operating under the agreement--
                            ``(i) the vessel will be crewed by only 
                        United States mariners;
                            ``(ii) the vessel shall be operated within 
                        the Fleet exclusively in foreign commerce and 
                        not in coastwise trade; and
                            ``(iii) the covered entity will have in 
                        effect an emergency preparedness agreement 
                        described in section 53605 for the period of 
                        such agreement.
                    ``(B) Beginning on the first day of the operating 
                agreement, the vessel will be permanently ineligible 
                for a coastwise endorsement under section 12112 of this 
                title or to otherwise participate in the coastwise 
                trade, even if the operating agreement is terminated or 
                not renewed.
            ``(2) Coordination with coast guard regarding coastwise 
        trade prohibition.--The Administrator shall coordinate with the 
        Secretary of the Department in which the Coast Guard is 
        operating to ensure that any vessel that is, or was, covered by 
        an operating agreement under this chapter is permanently 
        ineligible for a coastwise endorsement under section 12112 of 
        this title or to otherwise participate in the coastwise trade, 
        as required under paragraph (1)(B).
    ``(c) Milestones and Payments.--The operating agreement shall--
            ``(1) prescribe specific milestones for project 
        completeness, as agreed upon between the Administrator and the 
        covered entity; and
            ``(2) specify the schedule of operating support payments, 
        and as applicable, capital support payments and other 
        incentives and payments, based on completion of such milestones 
        and consistent with the eligible application submitted by the 
        covered entity under section 53602(c)(3)(A), as agreed to by 
        the Administrator and the covered entity.
    ``(d) Incentives.--
            ``(1) State of the art technology incentives.--An operating 
        agreement required under subsection (a) may include incentives 
        to support the testing or adoption of state of the art 
        technology, including artificial intelligence, advanced 
        shipbuilding techniques, automation, modern propulsion systems, 
        environmental performance, crew safety, military features, and 
        other technologies identified by the Maritime Security Board to 
        be relevant in advancing the military and economic security of 
        the United States.
            ``(2) Performance incentives.--The operating agreement may 
        include incentive payments for eligible entities that exceed 
        the milestones established under subsection (c)(1).
    ``(e) Length of Operating Agreement.--
            ``(1) In general.--An operating agreement to participate in 
        the Fleet shall be for a period of 7 years.
            ``(2) Renewal of agreement.--
                    ``(A) In general.--A covered entity for a vessel 
                participating in the Fleet under an operating agreement 
                under this section may apply to renew such operating 
                agreement.
                    ``(B) Renewal limitation.--An operating agreement 
                under this section may be renewed not more than 2 
                times.
            ``(3) Termination payment.--
                    ``(A) No-fault termination during contract.--
                Subject to subparagraph (B), a covered entity for a 
                vessel operating under an operating agreement under 
                this section shall receive a termination payment if any 
                of the following applies:
                            ``(i) No-fault termination.--Capital 
                        support payments provided to a covered entity 
                        under an operating agreement are terminated 
                        during a contract term.
                            ``(ii) No-fault non-renewal.--An operating 
                        agreement is not selected to be renewed under 
                        paragraph (2).
                    ``(B) Administrator determination for material lack 
                of compliance.--In any case in which the Administrator 
                determines under subsection (f) that a covered entity 
                for a vessel operating under an operating agreement 
                under this section materially fails to comply with the 
                terms of the operating agreement and, due to such 
                failure to comply, the operating agreement is 
                terminated or not selected for renewal, the 
                Administrator may determine that the covered entity is 
                not entitled to a termination payment and subparagraph 
                (A) shall not apply.
                    ``(C) Termination payment defined.--In this 
                paragraph, the term `termination payment' means a 
                payment in an amount that equals 50 percent of--
                            ``(i) the percentage of the remaining 
                        useful life of the vessel, calculated using 21 
                        years as the maximum useful life of the vessel; 
                        multiplied by
                            ``(ii) the difference in the cost of 
                        constructing the vessel in the United States 
                        and the cost of constructing the vessel in a 
                        foreign country, to the extent such cost 
                        difference was not recovered by the covered 
                        entity through payments received under any 
                        operating agreement under this section.
    ``(f) Termination by Administrator for Lack of Program Participant 
Compliance.--If a covered entity for a vessel operating under an 
operating agreement under this section materially fails to comply with 
the terms of the operating agreement--
            ``(1) the Administrator shall notify the covered entity and 
        provide a reasonable opportunity to comply with the operating 
        agreement; and
            ``(2) if the covered entity fails to achieve such 
        compliance, the Administrator--
                    ``(A) shall terminate the operating agreement;
                    ``(B) shall not renew the operating agreement under 
                subsection (e)(2); and
                    ``(C) may take steps to recover an amount equal to 
                the payments and incentives provided to the covered 
                entity under this chapter.
    ``(g) Nonrenewal for Lack of Funds.--If, by the first day of a 
fiscal year, sufficient funds have not been appropriated under the 
authority provided by this chapter for that fiscal year, then the 
Administrator shall notify the appropriate committees of Congress that 
operating agreements authorized under this chapter for which sufficient 
funds are not available will not be renewed for that fiscal year if 
sufficient funds are not appropriated by the 60th day of that fiscal 
year.
    ``(h) Release of Vessels From Obligations.--
            ``(1) In general.--A vessel covered by an operating 
        agreement under this chapter is released from any further 
        obligation under the operating agreement, except for the 
        requirements of subsection (b)(1)(B), if--
                    ``(A) the Administrator terminated or did not renew 
                the operating agreement under subsection (f); or
                    ``(B) funds are not appropriated to the 
                Administrator for payments under the operating 
                agreement under this chapter for any fiscal year by the 
                60th day of that fiscal year.
            ``(2) Authority to transfer vessel.--
                    ``(A) In general.--After a vessel is released from 
                obligations under paragraph (1), the covered entity may 
                transfer and register such vessel under a foreign 
                registry that--
                            ``(i) is acceptable to the Administrator 
                        and the Secretary of Defense, and allows the 
                        requisitioning of the vessel for title or use, 
                        notwithstanding section 56101 of this title; 
                        and
                            ``(ii) is not a foreign country of concern.
                    ``(B) Emergency acquisition of vessels.--If chapter 
                563 of this title is applicable to a vessel after 
                registration in a foreign registry described in 
                subparagraph (A), then the vessel is available to be 
                requisitioned by the Secretary of Transportation 
                pursuant to such chapter.
    ``(i) Judicial Review.--No court shall have jurisdiction to review 
the Administrator's decision with respect to the award or non-award of 
an operating agreement issued under this chapter.
``Sec. 53604. Payments
    ``(a) In General.--An operating agreement under this chapter shall 
require that the Administrator make payments to the covered entity, in 
accordance with the milestones established under section 53603(c)(1) 
and the operating agreement under section 53603 and subject to the 
availability of appropriations under subsection (e).
    ``(b) Limitations.--Notwithstanding any other provision of this 
chapter, the Administrator shall not make any payment under this 
chapter for a vessel--
            ``(1) with respect to any day for which--
                    ``(A) the vessel is not operated or maintained in 
                accordance with an operating agreement under this 
                chapter;
                    ``(B) the vessel is under a charter to the United 
                States Government; or
                    ``(C) except as provided under subsection (c), the 
                vessel is engaged in transporting military or other 
                preference cargoes under section 55302(a), 55304, 
                55305, or 55314 of this title, section 2631 of title 
                10, or any other cargo preference law of the United 
                States; or
            ``(2) that participates in the coastwise trade in violation 
        of the operating agreement and section 53603(b)(1)(B).
    ``(c) Preference Cargos.--The Administrator may waive the 
requirement of subsection (b)(1)(C) to the extent, in the manner, and 
on the terms the Administrator prescribes, only if--
            ``(1) the Administrator, acting in the Administrator's 
        capacity as Director of the National Shipping Authority, makes 
        a determination of the nonavailability of qualified vessels of 
        the United States that are not enrolled in the Strategic 
        Commercial Fleet;
            ``(2) the Administrator ensures reasonable notice has been 
        provided to the owners and operators of qualified vessels of 
        the United States that are not enrolled in the Strategic 
        Commercial Fleet; and
            ``(3) by not later than 7 days after issuing a waiver under 
        this subsection, the Administrator notifies the appropriate 
        committees of Congress and posts such waiver on a public 
        website of the Maritime Administration.
    ``(d) Operating Agreement Is Obligation of United States 
Government.--An operating agreement under this chapter constitutes a 
contractual obligation of the United States Government to pay the 
amounts provided for in the agreement, subject to the availability of 
appropriations under subsection (e).
    ``(e) Appropriations From the Maritime Security Trust Fund.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Administrator for payments to covered entities under 
        this section, out of the Maritime Security Trust Fund 
        established under section 9512 of the Internal Revenue Code of 
        1986--
                    ``(A) for fiscal year 2025, $150,000,000;
                    ``(B) for fiscal year 2026, $300,000,000;
                    ``(C) for fiscal year 2027, $550,000,000;
                    ``(D) for fiscal year 2028, $800,000,000;
                    ``(E) for fiscal year 2029, $1,000,000,000;
                    ``(F) for fiscal year 2030, $1,200,000,000;
                    ``(G) for fiscal year 2031, $1,400,000,000;
                    ``(H) for fiscal year 2032, $1,600,000,000;
                    ``(I) for fiscal year 2033, $1,900,000,000; and
                    ``(J) for fiscal year 2034, $2,100,000,000.
            ``(2) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.
    ``(f) Clarification.--The provision by the Administrator of a 
payment under this section shall not be considered to be a major 
Federal action under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) or an undertaking for the purposes of division A 
of subtitle III of title 54, United States Code.
    ``(g) Buy America.--Section 54101(d)(2) shall apply to any funds 
obligated by the Administrator under this section.
``Sec. 53605. National security requirements
    ``(a) Emergency Preparedness Agreement Required.--The 
Administrator, in coordination with the Secretary of Defense, shall 
establish an emergency preparedness program under this section under 
which the program participant for an operating agreement under this 
chapter shall agree, as a condition of the operating agreement, to 
enter into an emergency preparedness agreement with the Administrator. 
The Administrator shall negotiate and enter into an emergency 
preparedness agreement with each program participant as promptly as 
practicable after the program participant has entered into the 
operating agreement.
    ``(b) Use of Existing Program.--The Administrator may use an 
existing emergency preparedness program, as of the date of enactment of 
the SHIPS for America Act of 2024, to satisfy the requirements of 
subsection (a).
    ``(c) Terms of Agreement.--The terms of an emergency preparedness 
agreement under this section shall--
            ``(1) provide that upon request by the Secretary of Defense 
        during time of war or national emergency, or whenever 
        determined by the Secretary of Defense to be necessary for 
        national security or contingency operation (as that term is 
        defined in section 101 of title 10), the program participant 
        shall make available commercial transportation resources 
        (including services) described in subsection (e) to the 
        Secretary of Defense;
            ``(2) shall include such additional terms as may be 
        established by the Administrator and the Secretary of Defense; 
        and
            ``(3) shall allow for the modification or addition of terms 
        upon agreement by the Administrator and the program participant 
        and the approval by the Secretary of Defense.
    ``(d) Participation After Expiration of Operating Agreement.--The 
Administrator may not require, through an emergency preparedness 
agreement or an operating agreement, that a program participant covered 
by an operating agreement continue to participate in an emergency 
preparedness agreement after the operating agreement has expired 
according to its terms or is otherwise no longer in effect. After the 
expiration of an emergency preparedness agreement, a program 
participant may voluntarily continue to participate in the agreement.
    ``(e) Resources Made Available.--The commercial transportation 
resources to be made available under an emergency preparedness 
agreement shall include vessels or capacity in vessels, terminal 
facilities, management services, and other related services, or any 
agreed portion of such nonvessel resources for activation as the 
Secretary of Defense may determine to be necessary, seeking to minimize 
disruption of the program participant's service to commercial 
customers.
    ``(f) Compensation.--
            ``(1) In general.--The Administrator shall include in each 
        emergency preparedness agreement provisions approved by the 
        Secretary of Defense under which the Secretary of Defense shall 
        pay fair and reasonable compensation for all commercial 
        transportation resources provided pursuant to this section.
            ``(2) Specific requirements.--Compensation under this 
        subsection--
                    ``(A) shall not be less than the program 
                participant's commercial market charges for like 
                transportation resources;
                    ``(B) shall be fair and reasonable considering all 
                circumstances;
                    ``(C) shall be provided from the time that a vessel 
                or resource is required by the Secretary of Defense 
                until the time it is redelivered to the program 
                participant and is available to reenter commercial 
                service; and
                    ``(D) shall be in addition to and shall not in any 
                way reflect amounts payable under section 53604 of this 
                title.
    ``(g) Temporary Replacement Vessels.--Notwithstanding section 
55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 
10, or any other cargo preference law of the United States--
            ``(1) a program participant may operate or employ in 
        foreign commerce a foreign vessel, or capacity in a foreign 
        vessel, as a temporary replacement for a vessel of the United 
        States or vessel of the United States capacity that is 
        activated by the Secretary of Defense under an emergency 
        preparedness agreement or a primary Department of Defense 
        sealift-approved readiness program; and
            ``(2) such replacement vessel or vessel capacity shall be 
        eligible during the replacement period to transport preference 
        cargoes subject to sections 55302(a), 55304, 55305, and 55314 
        of this title and section 2631 of title 10, to the same extent 
        as the eligibility of the vessel or vessel capacity replaced.
    ``(h) Redelivery and Liability of the United States for Damages.--
            ``(1) In general.--All commercial transportation resources 
        activated under an emergency preparedness agreement shall, upon 
        termination of the period of activation, be redelivered to the 
        program participant in the same good order and condition as 
        when received, less ordinary wear and tear, or the Secretary of 
        Defense shall fully compensate the program participant for any 
        necessary repair or replacement.
            ``(2) Limitation on united states liability.--Except as may 
        be expressly agreed in an emergency preparedness agreement, or 
        as otherwise provided by law, the Government shall not be 
        liable for disruption of a program participant's commercial 
        business or other consequential damages to the program 
        participant arising from the activation of commercial 
        transportation resources under an emergency preparedness 
        agreement.
``Sec. 53606. Regulations
    ``The Administrator and the Secretary of Defense may each prescribe 
rules as necessary to carry out their respective responsibilities under 
this chapter.''.
    (b) Confirming Amendments.--Section 51307(b) of title 46, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``, or the'' and inserting 
                        ``, the''; and
                            (ii) by inserting ``, or the Strategic 
                        Commercial Fleet under chapter 536 of this 
                        title'' before ``to--''; and
                    (B) in subparagraph (A), by striking ``or Tanker 
                Security Fleet vessel'' and inserting ``Tanker Security 
                Fleet vessel, or Strategic Commercial Fleet vessel''; 
                and
            (2) in paragraph (2), by striking ``or 534'' and inserting 
        ``534, or 536''.
    (c) Clerical Amendment.--The table of chapters for subtitle V of 
title 46, United States Code, is amended by adding at the end the 
following:

``536. Strategic Commercial Fleet...........................   53601''.

SEC. 402. MARITIME SECURITY PROGRAM.

    (a) Annual Payments.--Section 53106(a)(1) of title 46, United 
States Code, is amended--
            (1) in subparagraph (C), by striking ``fiscal years 2022, 
        2023, 2024, and 2025'' and inserting ``fiscal years 2022, 2023, 
        and 2024''; and
            (2) by striking subparagraphs (D) through (F) and inserting 
        the following:
                    ``(D) $6,500,000 for each of fiscal years 2025 and 
                2026;
                    ``(E) $6,675,000 for each of fiscal years 2027 and 
                2028;
                    ``(F) $6,855,000 for each of fiscal years 2029 and 
                2030;
                    ``(G) $7,040,000 for each of fiscal years 2031 and 
                2032; and
                    ``(H) $7,230,000 for each of fiscal years 2033 and 
                2034.''.
    (b) Cargo Preference.--Section 53105(a) of title 46, United States 
Code, is amended--
            (1) in paragraph (2), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) except for the limitations established under 
        subsection (d), the vessel shall receive priority consideration 
        to carry military or other preference cargoes under section 
        55305 or 55314 of this title, section 2631 of title 10, or any 
        other cargo preference law of the United States, over vessels 
        of the United States that are enrolled in other financial 
        assistance programs established under chapters 532, 534, and 
        536 of this part.''.
    (c) Maritime Security Fleet.--
            (1) Test.--Not later than 180 days after the date of 
        enactment of this Act, the Commander of the United States 
        Transportation Command, in coordination with the Secretary of 
        the Navy and the Maritime Administrator, shall devise a 
        tabletop exercise to test the effective control of the Maritime 
        Security Fleet under chapter 531 of title 46, United States 
        Code, in case of crisis or war.
            (2) Briefing.--After completion of the exercise under 
        paragraph (1), the Commander shall submit to the appropriate 
        committees of Congress a briefing on the results of the 
        tabletop exercise under paragraph (1).
            (3) Annual testing.--Beginning not later than 1 year after 
        the briefing is submitted under paragraph (2), the Commander 
        shall--
                    (A) carry out tabletop drills to test effective 
                control of the Maritime Security Fleet under chapter 
                531 of title 46, United States Code; and
                    (B) provide to the appropriate committees of 
                Congress a briefing after each such drill on the 
                results of such drill.
    (d) Authorization of Appropriations.--Section 53111 of title 46, 
United States Code, is amended--
            (1) in paragraph (3), by striking ``fiscal years 2022, 
        2023, 2024, and 2025'' and inserting ``fiscal years 2022, 2023, 
        and 2024''; and
            (2) by striking paragraphs (4) through (6) and inserting 
        the following:
            ``(4) $390,000,000 for each of fiscal years 2025 and 2026;
            ``(5) $400,500,000 for each of fiscal years 2027 and 2028;
            ``(6) $411,300,000 for each of fiscal years 2029 and 2030;
            ``(7) $422,400,000 for each of fiscal years 2031 and 2032; 
        and
            ``(8) $433,800,000 for each of fiscal years 2033 and 
        2034.''.

SEC. 403. CABLE SECURITY FLEET.

    (a) Annual Payments.--Section 53206(a)(1) of title 46, United 
States Code, is amended by striking ``equal to $5,000,000 for each 
fiscal year 2021 through 2035'' and inserting ``equal to--
                    ``(A) $6,500,000 for each of fiscal years 2025 and 
                2026;
                    ``(B) $8,000,000 for each of fiscal years 2027 and 
                2028;
                    ``(C) $9,500,000 for each of fiscal years 2029 and 
                2030;
                    ``(D) $10,500,000 for each of fiscal years 2031 and 
                2032; and
                    ``(E) $12,000,000 for each of fiscal years 2033 and 
                2034.''.
    (b) Assessment of Undersea Cable Repair Contingencies.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Defense, in 
        coordination with the Maritime Administrator, the Federal 
        Communications Commission, and other relevant Federal agencies, 
        shall submit to the appropriate committees of Congress an 
        assessment on the ability and preparedness of the USNS Zeus and 
        the Cable Security Fleet under chapter 532 of title 46, United 
        States Code, to repair transoceanic submarine fiber optic 
        cables that may be damaged or cut by adversaries.
            (2) Contents.--The assessment under paragraph (1) shall 
        include--
                    (A) a description of preparedness to address a 
                situation in which the cables of partner countries in 
                both the Pacific and Atlantic Oceans are damaged or 
                severed at or around the same time;
                    (B) a determination as to how long it would take 
                for the Cable Security Fleet, in coordination with 
                partner countries, to repair such cables; and
                    (C) the options available to provide connectivity 
                in an emergency or crisis caused by, or related to, the 
                damaging or severing of such cables.
    (c) Authorization of Appropriations.--Section 53209 of title 46, 
United States Code, is amended--
            (1) by striking ``section 53206, $10,000,000 for each of 
        the fiscal years 2021 through 2035.''; and inserting the 
        following: ``section 53206--
            ``(1) $13,000,000 for each of fiscal years 2025 and 2026;
            ``(2) $16,000,000 for each of fiscal years 2027 and 2028;
            ``(3) $19,000,000 for each of fiscal years 2029 and 2030;
            ``(4) $21,000,000 for each of fiscal years 2031 and 2032; 
        and
            ``(5) $24,000,000 for each of fiscal years 2033 and 
        2034.''.

SEC. 404. TANKER SECURITY FLEET.

    (a) Payments.--Section 53406(a) of title 46, United States Code, is 
amended--
            (1) by striking ``$6,000,000'' and inserting 
        ``$9,000,000.''; and
            (2) by striking the last sentence.
    (b) Authorization of Appropriations.--Section 53411 of title 46, 
United States Code, is amended by striking ``, and $120,000,000 for 
fiscal years 2024 through 2035'' and inserting ``, $120,000,000 for 
fiscal year 2024, and $180,000,000 for fiscal years 2025 through 
2035''.

SEC. 405. MODIFICATION TO DUTIES RELATING TO EQUIPMENT AND REPAIR OF 
              VESSELS.

    (a) In General.--Section 466 of the Tariff Act of 1930 (19 U.S.C. 
1466) is amended--
            (1) in subsection (a), in the first sentence, by striking 
        ``50 per centum on the cost thereof in such foreign country'' 
        and inserting ``70 percent of the cost thereof in such foreign 
        country or, in the case of a foreign country of concern (as 
        defined in section 4 of the SHIPS for America Act of 2024), 200 
        percent of the cost thereof in such country''; and
            (2) by adding at the end the following:
    ``(i) During the period beginning on the date of enactment of the 
SHIPS for America Act of 2024 and ending on December 31, 2034, the duty 
imposed under subsection (a) shall not apply to the cost of equipment, 
or any part of equipment, purchased for, or expenses of repair parts or 
materials to be used for, or repairs made in a foreign country, unless 
such country is a foreign country of concern (as defined in section 4 
of the SHIPS for America Act of 2024, on, a vessel engaged in foreign 
trade if the Maritime Administrator confirms that--
            ``(1) the vessel--
                    ``(A) is participating in--
                            ``(i) the Maritime Security Fleet under 
                        chapter 531 of title 46, United States Code;
                            ``(ii) the Cable Security Fleet under 
                        chapter 532 of such title;
                            ``(iii) the Tanker Security Fleet under 
                        chapter 534 of such title; or
                            ``(iv) the Strategic Commercial Fleet under 
                        chapter 536 of such title; or
                    ``(B) has a Voluntary Intermodal Sealift Agreement 
                or Voluntary Tanker Agreement with the Maritime 
                Administrator in effect; and
            ``(2) the owner or master of the vessel certifies to the 
        Maritime Administrator in writing that a good faith effort was 
        made to purchase equipment or carry out repairs in a shipyard 
        of the United States.''.
    (b) Report Required.--Not less than 2 years after the date of 
enactment of this Act, and every 2 years thereafter through December 
31, 2034, the Maritime Administrator shall submit to the appropriate 
committees of Congress a report--
            (1) describing the number of vessels that paid the duties 
        under section 466 of the Tariff Act of 1930 (19 U.S.C. 1466), 
        and the location where the repairs described in such section 
        occurred;
            (2)(A) identifying shipyards of the United States that have 
        capacity to carry out vessel repairs; and
            (B) describing the extent to which vessels of the United 
        States chose to conduct repairs in such shipyards during the 
        period covered by the report;
            (3) evaluating the effectiveness of section 466 of the 
        Tariff Act of 1930 (19 U.S.C. 1466) in encouraging the repair 
        of vessels of the United States in shipyards of the United 
        States; and
            (4) making recommendations for additional regulatory or 
        legislative steps which could be taken to support the United 
        States vessel repair industrial base.

                      Subtitle B--Cargo Preference

SEC. 411. UNITED STATES GOVERNMENT CARGO.

    (a) Sense of Congress.--It is the sense of the Congress that--
            (1) only the Maritime Administrator, acting in the 
        Administrator's capacity as Director of the National Shipping 
        Authority, has the authority to determine the non-availability 
        of qualified capacity of vessels of the United States (referred 
        to in this subsection as ``qualified United States flag 
        capacity'') at fair and reasonable rates for commercial vessels 
        of the United States to meet the requirements of section 55305 
        or 55314 of title 46, United States Code;
            (2) the requirements of section 55305 or 55314 of title 46, 
        United States Code, may only be waived temporarily by the 
        President, the Secretary of Defense, or the Secretary of 
        Transportation during a declared emergency justifying such a 
        temporary waiver, following a determination by the Maritime 
        Administrator, acting in the Maritime Administrator's capacity 
        as Director of the National Shipping Authority, of the non-
        availability of qualified United States flag capacity at fair 
        and reasonable rates for commercial vessels of the United 
        States pursuant to section 55305(d) of title 46, United States 
        Code; and
            (3) nothing in title II of the Food for Peace Act (7 U.S.C. 
        1721 et seq.) authorizes the Administrator of the United States 
        Agency for International Development or the Secretary of 
        Agriculture to waive the requirements of section 55305 or 55314 
        of title 46, United States Code, without first obtaining--
                    (A) delegated authority from the President of the 
                United States;
                    (B) an emergency declaration justifying such a 
                temporary waiver, pursuant to section 55305(d) of title 
                46, United States Code; and
                    (C) a determination by the Maritime Administrator, 
                acting in the Maritime Administrator's capacity as 
                Director of the National Shipping Authority, on the 
                non-availability of qualified United States flag 
                capacity at fair and reasonable rates for commercial 
                vessels of the United States pursuant to section 
                55305(d) of title 46, United States Code.
    (b) Applicable Percentage.--
            (1) In general.--Section 55305(a) of title 46, United 
        States Code, is amended by striking ``at least 50'' and 
        inserting ``100''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date that is 180 days after the date 
        of enactment of this Act.
    (c) Clarification.--Section 55305(d) of title 46, United States 
Code, is amended--
            (1) in paragraph (1), by inserting ``a consultation with 
        the Maritime Security Board'' after ``following''; and
            (2) in paragraph (3)(B), by inserting ``Maritime Security 
        Board and the'' after ``to the''.

SEC. 412. CARGO PREFERENCE IMPLEMENTATION REGULATIONS.

    (a) Regulations and Guidance.--Not later than 180 days after the 
date of enactment of this Act, the Maritime Administrator, 
notwithstanding any other provision of law, regulation, or 
administrative order, shall--
            (1) promulgate regulations under subchapter III of chapter 
        5 of title 5, United States Code, to fully implement and ensure 
        compliance with sections 55305, 55314, 55315, and 55316 of 
        title 46, United States Code;
            (2) issue interagency guidance to other Federal departments 
        and agencies on how to administer the programs that are subject 
        to such sections in accordance with those sections, as 
        applicable; and
            (3) publish such guidance in the Federal Register and on 
        the website of the Maritime Administration.
    (b) Consultation.--The Administrator may consult with the Food Aid 
Consultative Group established by section 205 of the Food for Peace Act 
(7 U.S.C. 1725) in carrying out this section.
    (c) Repeal of Earlier Regulatory Deadline.--Subsection (a) of 
section 3502 of the James M. Inhofe National Defense Authorization Act 
for Fiscal Year 2023 (46 U.S.C. 55305 note; Public Law 117-263), is 
repealed.

SEC. 413. CARGO PREFERENCE OVERSIGHT AND AUDIT.

    Section 55301 of title 46, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``section 55305'' and 
        inserting ``sections 55305, 55314, 55315, and 55316''; and
            (2) by adding at the end the following:
    ``(d) Notification of Violation.--The Maritime Administrator 
shall--
            ``(1) upon receiving any credible information, as 
        determined by the Administrator, that a Federal department or 
        agency that administers a program covered by a report required 
        under subsection (a) was not in compliance with the 
        requirements of section 55305, 55314, 55315, or 55316 of this 
        title (as applicable), notify the Committee on Commerce, 
        Science, and Transportation of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives not later than 14 days after receiving such 
        information; and
            ``(2) upon receiving any credible information, as 
        determined by the Administrator, that a Federal department or 
        agency that administers a program covered by a report required 
        under subsection (a) was not in compliance with the 
        requirements of section 2631 of title 10, United States Code, 
        notify the Committee on Commerce, Science, and Transportation 
        and the Committee on Armed Services of the Senate and the 
        Committee on Transportation and Infrastructure and the 
        Committee on Armed Services of the House of Representatives not 
        later than 14 days after receiving such information.''.

SEC. 414. FINANCING THE TRANSPORTATION OF AGRICULTURAL PRODUCTS.

    (a) In General.--Subchapter II of chapter 553 of title 46, United 
States Code, is amended by inserting after section 55315 the following:
``Sec. 55316. Financing the transportation of agricultural products
    ``(a) Financing of Increased Costs.--The Secretary of 
Transportation shall finance any increased ocean freight costs incurred 
in any fiscal year that result from the application of section 55305 of 
this title to the agricultural export programs specified in section 
55314(b) of this title.
    ``(b) Reimbursement of Increased Costs.--
            ``(1) In general.--The Secretary of Transportation shall 
        reimburse the Secretary of Agriculture, the Commodity Credit 
        Corporation, and the United States Agency for International 
        Development for the amount by which, in any fiscal year--
                    ``(A) the total cost of ocean freight and ocean 
                freight differential for which obligations are incurred 
                by the Secretary of Agriculture, the Corporation, and 
                the United States Agency for International Development 
                on exports of agricultural products under the 
                agricultural export programs specified in section 
                55314(b) of this title; exceeds
                    ``(B) 20 percent of the value of the agricultural 
                products and the cost of the ocean freight and ocean 
                freight differential on which obligations are incurred 
                by the Secretary of Agriculture, the Corporation, and 
                the United States Agency for International Development 
                during that fiscal year.
            ``(2) Agricultural products shipped from inventory.--For 
        purposes of this subsection, agricultural products shipped from 
        the inventory of the Corporation shall be valued as provided in 
        section 412(d) of the Food for Peace Act (7 U.S.C. 1736f(d)).
    ``(c) Interagency Agreement.--
            ``(1) In general.--By not later than 180 days after the 
        date of enactment of the SHIPS for America Act of 2024, the 
        Secretary of Transportation shall enter into an interagency 
        agreement with the head of each agency entitled to 
        reimbursement under subsection (b)(1).
            ``(2) Contents.--Each interagency agreement shall include--
                    ``(A) an explanation of the process the agency 
                shall follow to receive a reimbursement from the 
                Secretary of Transportation under this section;
                    ``(B) a standard methodology for calculating the 
                reimbursement an agency is entitled to under this 
                section; and
                    ``(C) deadlines--
                            ``(i) by which an agency shall submit a 
                        reimbursement request in order to receive 
                        reimbursement; and
                            ``(ii) by which the Secretary of 
                        Transportation shall approve a properly filed 
                        reimbursement request, which date shall not be 
                        more than 90 days after the date on which the 
                        reimbursement request is submitted.
            ``(3) Congressional notification.--The Secretary of 
        Transportation shall notify the appropriate committees of 
        Congress--
                    ``(A) when each interagency agreement required 
                under this subsection is finalized; and
                    ``(B) any time that an interagency agreement 
                required under this subsection is updated.
    ``(d) Agricultural Product Defined.--In this section, the term 
`agricultural product' has the meaning given the term in section 55314 
of title 46, United States Code.
    ``(e) Authorization of Appropriations.--Each fiscal year, there is 
authorized to be appropriated, out of the Maritime Security Trust Fund 
established under section 9512 of the Internal Revenue Code of 1986, an 
amount sufficient to reimburse the Secretary of Transportation for the 
costs incurred under this section, including administrative 
expenses.''.
    (b) Clerical Amendment.--The table of sections for subchapter II of 
chapter 553 of title 46, United States Code, is amended by inserting 
after the item relating to section 55315 the following:

``55316. Financing the transportation of agricultural products.''.

SEC. 415. IMPORTATION FROM CHINA ON AMERICAN SHIPS.

    (a) In General.--Chapter 605 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 60508. Importation on American ships
    ``(a) In General.--Notwithstanding any other provision of law, not 
less than the covered percentage, as described in subsection (b), of 
covered goods by tonnage imported into the United States from a foreign 
port shall be imported on a vessel that is--
            ``(1) a vessel of the United States;
            ``(2) crewed by United States mariners; and
            ``(3) built in the United States.
    ``(b) Percentage.--A covered percentage under this section is the 
following:
            ``(1) One percent in the year that is 5 years after the 
        date of enactment of this section.
            ``(2) Two percent in the year that is 6 years after the 
        date of enactment of this section.
            ``(3) Three percent in the year that is 7 years after the 
        date of enactment of this section.
            ``(4) Four percent in the year that is 8 years after the 
        date of enactment of this section.
            ``(5) Five percent in the year that is 9 years after the 
        date of enactment of this section.
            ``(6) Six percent in the year that is 10 years after the 
        date of enactment of this section.
            ``(7) Seven percent in the year that is 11 years after the 
        date of enactment of this section.
            ``(8) Eight percent in the year that is 12 years after the 
        date of enactment of this section.
            ``(9) Nine percent in the year that is 13 years after the 
        date of enactment of this section.
            ``(10) Ten percent in the year that is 14 years after the 
        date of enactment of this section.
    ``(c) Application.--The requirement under subsection (a) shall be 
applied to any shipper importing goods into the United States that 
originates from a foreign port or place.
    ``(d) Fine for Failure to Comply.--
            ``(1) In general.--On an annual basis, the Maritime 
        Administrator shall issue a fine to any entity failing to 
        comply with the requirements under this section.
            ``(2) Amount.--The amount of a fine under this section 
        shall be in an amount set by the Maritime Administrator that is 
        greater than the difference in cost between--
                    ``(A) the cost of employing a vessel of the United 
                States that is built in the United States and crewed by 
                United States mariners; and
                    ``(B) the cost of employing a foreign vessel, 
                flying a flag of convenience, manufactured outside of 
                the United States.
            ``(3) Use of amounts.--Any amount collected under this 
        subsection shall be deposited in the Maritime Security Trust 
        Fund.
    ``(e) Rulemaking Required.--Not later than 4 years after the date 
of enactment of this section, the Maritime Administrator, in 
coordination with the Secretary of Homeland Security and the Chairman 
of the Federal Maritime Commission, shall promulgate a final rule that 
establishes a system that--
            ``(1) identifies persons and goods that are subject to the 
        requirements of this section;
            ``(2) establishes requirements for such persons and goods 
        that meet the applicable percentages established under 
        subsection (b);
            ``(3) establishes clear enforcement mechanisms to ensure 
        compliance with this section; and
            ``(4) determines the amount of a fine issued under 
        subsection (d).
    ``(f) Definitions.--In this section:
            ``(1) Covered goods.--The term `covered goods' means goods 
        manufactured in the People's Republic of China.
            ``(2) Shipper.--The term `shipper' has the meaning given 
        such term in section 40102 of this title.''.
    (b) Clerical Amendment.--The table of sections for chapter 605 of 
title 46, United States Code, is amended by adding at the end the 
following:

``60508. Importation on American ships.''.

SEC. 416. PRIORITY FOR VESSELS OF THE UNITED STATES.

    (a) In General.--Part D of subtitle V of title 46, United States 
Code, is amended by inserting after chapter 553 the following:

        ``CHAPTER 555--PRIORITY FOR VESSELS OF THE UNITED STATES

``Sec.
``55501. Priority for vessels of the United States.
``Sec. 55501. Priority for vessels of the United States
    ``(a) In General.--A vessel of the United States shall be given 
priority at any port in the United States, ahead of a waiting vessel of 
a foreign country.
    ``(b) Exception.--Notwithstanding subsection (a), if the Secretary 
of Transportation finds that it is in the national interest, the 
Secretary may eliminate this priority at any port. The Secretary shall 
report to the appropriate committees of Congress, as defined in section 
4 of the SHIPS for America Act of 2024, by not later than 30 days after 
an action eliminating priority under this section.''.
    (b) Clerical Amendment.--The table of chapters for subtitle V of 
title 46, United States Code, is amended by adding at the end the 
following:

``555. Priority for vessels of the United States............   55501''.

SEC. 417. MOVING CARGO ON VESSELS OF THE UNITED STATES.

    (a) Assessment Required.--Not later than 180 days after the date of 
enactment of this Act, the Maritime Security Advisor, in consultation 
with the Secretary of Transportation, the Secretary of Commerce, the 
Chairman of the Federal Maritime Commission, and the United States 
Trade Representative, shall--
            (1) conduct an assessment that identifies authorities 
        available under current Federal law, as of the date of such 
        identification, that may be utilized to incentivize the 
        movement of commercial cargo on vessels of the United States in 
        international commerce; and
            (2) makes recommendations to the President to utilize such 
        authorities.
    (b) Inclusions.--The assessment required under subsection (a) shall 
include an evaluation of--
            (1) tax benefits for taxpayers who ship goods aboard 
        vessels of the United States;
            (2) modifications to import and export duties for goods 
        imported or exported aboard vessels of the United States;
            (3) privileges for vessels of the United States that enable 
        vessels of the United States to provide improved service 
        relative to other vessels in international commerce; and
            (4) any other authorities that would incentivize the 
        movement of goods aboard vessels of the United States.
    (c) Report to Congress.--Upon carrying out the assessment required 
under subsection (a), the Maritime Security Advisor shall submit to the 
appropriate committees of Congress--
            (1) a list of the recommendations made under subsection 
        (a)(2); and
            (2) a list of additional actions that could be taken by 
        Congress to further incentivize the movement of commercial 
        cargo on vessels of the United States.
    (d) Definition.--In this section, the term ``vessel of the United 
States'' has the meaning given the term in section 116 of title 46, 
United States Code.

SEC. 418. TRANSPORTATION REQUIREMENTS FOR CERTAIN EXPORTS SPONSORED BY 
              THE SECRETARY OF AGRICULTURE.

    Section 55314 of title 46, United States Code, is amended--
            (1) by inserting before subsection (b) the following:
    ``(a) Applicability.--The requirements under section 55305 of this 
title shall apply with respect to the activities specified in 
subsection (b).'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``titles I, II, 
                or III of'' after ``carried out under'';
                    (B) in paragraph (4), by striking ``agricultural 
                commodities or their products'' and inserting 
                ``agricultural products'';
                    (C) in paragraph (5), by striking ``agricultural 
                commodities or their products'' and inserting 
                ``agricultural products'';
                    (D) in paragraph (6), by striking ``agricultural 
                commodities or their products'' and inserting 
                ``agricultural products'';
                    (E) in paragraph (7), by striking ``agricultural 
                commodities'' and inserting ``agricultural products'';
                    (F) by redesignating paragraphs (4), (5), (6), and 
                (7) as paragraphs (6), (7), (8), and (9), respectively; 
                and
                    (G) by inserting after paragraph (3) the following:
            ``(4) carried out under the Food for Progress Act of 1985 
        (7 U.S.C. 1736o);
            ``(5) carried out under the McGovern-Dole International 
        Food for Education and Child Nutrition Program under section 
        3107 of the Farm Security and Rural Investment Act of 2002 (7 
        U.S.C. 15 1736o-1);''; and
            (3) by adding at the end the following:
    ``(c) Submission to Congress.--The Secretary of Agriculture or the 
Administrator of the United States Agency for International 
Development, as applicable, shall, by October 15 of each year, submit 
to the appropriate committees of Congress (as defined in section 4 of 
the SHIPS for America Act of 2024)--
            ``(1) a written notice of any waiver of the requirements of 
        this section issued during the preceding fiscal year; and
            ``(2) the reasons for granting such waiver and how such 
        waiver meets the requirements of this section and section 
        55305(d).
    ``(d) Agricultural Product Defined.--In this section, the term 
`agricultural product' means any food product, including an 
agricultural commodity (as such term is defined in section 402 of the 
Food for Peace Act (7 U.S.C. 1732)), specialty crop (as such term is 
defined in section 3 of the Specialty Crops Competitiveness Act of 2004 
(7 U.S.C. 1621 note)), or processed food product, exported from the 
United States.''.

SEC. 419. CLARIFYING AMENDMENTS.

    (a) Agricultural Commodities Emergency Assistance Clarification.--
Section 202(a) of the Food for Peace Act (7 U.S.C. 1722(a)) is amended 
by striking ``Notwithstanding'' and inserting ``Subject to the 
requirements of sections 55305 and 55314 of title 46, United States 
Code, and notwithstanding''.
    (b) Administrative Provisions Clarification.--Section 407(b)(2)(A) 
of the Food for Peace Act (7 U.S.C. 1736a(b)(2)(A)) is amended by 
striking ``Notwithstanding'' and inserting ``Subject to the 
requirements of sections 55305 and 55314 of title 46, United States 
Code, and notwithstanding''.
    (c) Emergency Food Security Program Clarification.--Section 
491(c)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2292(c)(1)) 
is amended by inserting ``and the requirements of sections 55305 and 
55314 of title 46, United States Code'' after ``section 492''.

SEC. 420. ENERGIZING AMERICAN SHIPBUILDING.

    (a) National Policy on Strategic Energy Asset Export 
Transportation.--
            (1) Requirement for transportation of exports of natural 
        gas on vessels documented under laws of the united states.--
        Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
        adding at the end the following:
    ``(g) Transportation of Exports of Natural Gas on Vessels 
Documented Under Laws of the United States.--
            ``(1) Condition for approval.--Except as provided in 
        paragraph (7), with respect to an application to export natural 
        gas under subsection (a), the Commission shall include in the 
        order issued for that application the condition that the person 
        transport the natural gas on a vessel that meets the 
        requirements described in paragraph (3).
            ``(2) Purpose.--The purpose of the requirement under 
        paragraph (1) is to ensure that, of all natural gas exported by 
        vessel in a calendar year, the following percentage is exported 
        by a vessel that meets the requirements described in paragraph 
        (3):
                    ``(A) In each of the 7 calendar years following the 
                calendar year in which this subsection is enacted, not 
                less than 2 percent.
                    ``(B) In each of the 8th and 9th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 3 percent.
                    ``(C) In each of the 10th and 11th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 4 percent.
                    ``(D) In each of the 12th and 13th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 6 percent.
                    ``(E) In each of the 14th and 15th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 7 percent.
                    ``(F) In each of the 16th and 17th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 9 percent.
                    ``(G) In each of the 18th and 19th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 11 percent.
                    ``(H) In each of the 20th and 21st calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 13 percent.
                    ``(I) In the 22nd calendar year after the calendar 
                year in which this subsection is enacted and each 
                calendar year thereafter, not less than 15 percent.
            ``(3) Requirements for vessels.--A vessel meets the 
        requirements described in this paragraph--
                    ``(A) with respect to each of the 5 calendar years 
                following the calendar year in which this subsection is 
                enacted--
                            ``(i) if--
                                    ``(I) the vessel is documented 
                                under the laws of the United States; 
                                and
                                    ``(II) with respect to any retrofit 
                                work necessary for the vessel to export 
                                natural gas--
                                            ``(aa) such work is done in 
                                        a shipyard in the United 
                                        States; and
                                            ``(bb) any component of the 
                                        vessel listed in paragraph (4) 
                                        that is installed during the 
                                        course of such work is 
                                        manufactured in the United 
                                        States; or
                            ``(ii) if--
                                    ``(I) the vessel is built in the 
                                United States;
                                    ``(II) the vessel is documented 
                                under the laws of the United States;
                                    ``(III) all major components of the 
                                hull or superstructure of the vessel 
                                are manufactured (including all 
                                manufacturing processes from the 
                                initial melting stage through the 
                                application of coatings for iron or 
                                steel products) in the United States; 
                                and
                                    ``(IV) the components of the vessel 
                                listed in paragraph (4) are 
                                manufactured in the United States; and
                    ``(B) with respect to the 6th calendar year 
                following the calendar year in which this subsection is 
                enacted, and each calendar year thereafter, if the 
                vessel meets the requirements of subparagraph (A)(ii).
            ``(4) Components.--The components of a vessel listed in 
        this paragraph are the following:
                    ``(A) Air circuit breakers.
                    ``(B) Welded shipboard anchor and mooring chain.
                    ``(C) Powered and non-powered valves in Federal 
                Supply Classes 4810 and 4820 used in piping.
                    ``(D) Machine tools in the Federal Supply Classes 
                for metal-working machinery numbered 3405, 3408, 3410 
                through 3419, 3426, 3433, 3438, 3441 through 3443, 
                3445, 3446, 3448, 3449, 3460, and 3461.
                    ``(E) Auxiliary equipment for shipboard services, 
                including pumps.
                    ``(F) Propulsion equipment, including engines, 
                propulsion motors, reduction gears, and propellers.
                    ``(G) Shipboard cranes.
                    ``(H) Spreaders for shipboard cranes.
                    ``(I) Rotating electrical equipment, including 
                electrical alternators and motors.
                    ``(J) Compressors, pumps, and heat exchangers used 
                in managing and re-liquefying boil-off gas from 
                liquefied natural gas.
            ``(5) Waiver authority.--The Commission may waive the 
        requirement under clause (i)(II)(bb) or (ii)(IV), as 
        applicable, of paragraph (3)(A) with respect to a component of 
        a vessel if the Maritime Administrator determines that--
                    ``(A) application of the requirement would--
                            ``(i) result in an increase of 25 percent 
                        or more in the cost of the component of the 
                        vessel; or
                            ``(ii) cause unreasonable delays to be 
                        incurred in building or retrofitting the 
                        vessel; or
                    ``(B) such component is not manufactured in the 
                United States in sufficient and reasonably available 
                quantities of a satisfactory quality.
            ``(6) Opportunities for credentialed merchant mariners.--
        Except as provided in paragraph (7), the Commission shall 
        include, in any order issued under subsection (a) that 
        authorizes a person to export natural gas, a condition that the 
        person provide opportunities for individuals with a merchant 
        mariner credential, as defined in section 2101 of title 46, 
        United States Code, to receive experience and training 
        necessary to become credentialed in working on a vessel 
        transporting natural gas.
            ``(7) Exception.--The Commission may not include in any 
        order issued under subsection (a) authorizing a person to 
        export natural gas to a nation with which there is in effect a 
        free trade agreement requiring national treatment for trade in 
        natural gas a condition described in paragraph (1), or a 
        condition described in paragraph (6), if the United States 
        Trade Representative certifies to the Commission, in writing, 
        that such condition would violate obligations of the United 
        States under such free trade agreement.
            ``(8) Use of federal information.--In carrying out 
        paragraph (1), the Commission--
                    ``(A) shall use information made available by--
                            ``(i) the Energy Information 
                        Administration; or
                            ``(ii) any other Federal agency or entity 
                        the Commission determines appropriate; and
                    ``(B) may use information made available by a 
                private entity only if applicable information described 
                in subparagraph (A) is not available.''.
            (2) Conforming amendment.--Section 3(c) of the Natural Gas 
        Act (15 U.S.C. 717b(c)) is amended by striking ``or the 
        exportation of natural gas'' and inserting ``or, subject to 
        subsection (g), the exportation of natural gas''.
    (b) Crude Oil.--Section 101 of title I of division O of the 
Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a) is amended--
            (1) in subsection (b), by striking ``subsections (c) and 
        (d)'' and inserting ``subsections (c), (d), and (f)''; and
            (2) by adding at the end the following:
    ``(f) Transportation of Exports of Crude Oil on Vessels Documented 
Under Laws of the United States.--
            ``(1) In general.--Except as provided in paragraph (6), as 
        a condition to export crude oil, the President shall require 
        that a person exporting crude oil transport the crude oil on a 
        vessel that meets the requirements described in paragraph (3).
            ``(2) Purpose.--The purpose of the requirement under 
        paragraph (1) is to ensure that, of all crude oil exported by 
        vessel in a calendar year, the following percentage is exported 
        by a vessel that meets the requirements described in paragraph 
        (3):
                    ``(A) In each of the 7 calendar years following the 
                calendar year in which this subsection is enacted, not 
                less than 3 percent.
                    ``(B) In each of the 8th, 9th, and 10th calendar 
                years following the calendar year in which this 
                subsection is enacted, not less than 6 percent.
                    ``(C) In each of the 11th, 12th, and 13th calendar 
                years following the calendar year in which this 
                subsection is enacted, not less than 8 percent.
                    ``(D) In the 14th calendar year following the 
                calendar year in which this subsection is enacted and 
                each calendar year thereafter, not less than 10 
                percent.
            ``(3) Requirements for vessels.--A vessel meets the 
        requirements described in this paragraph--
                    ``(A) with respect to each of the 4 calendar years 
                following the calendar year in which this subsection is 
                enacted--
                            ``(i) if--
                                    ``(I) the vessel is documented 
                                under the laws of the United States; 
                                and
                                    ``(II) with respect to any retrofit 
                                work necessary for the vessel to export 
                                crude oil--
                                            ``(aa) such work is done in 
                                        a shipyard in the United 
                                        States; and
                                            ``(bb) any component of the 
                                        vessel listed in paragraph (4) 
                                        that is installed during the 
                                        course of such work is 
                                        manufactured in the United 
                                        States; or
                            ``(ii) if--
                                    ``(I) the vessel is built in the 
                                United States;
                                    ``(II) the vessel is documented 
                                under the laws of the United States;
                                    ``(III) all major components of the 
                                hull or superstructure of the vessel 
                                are manufactured (including all 
                                manufacturing processes from the 
                                initial melting stage through the 
                                application of coatings for iron or 
                                steel products) in the United States; 
                                and
                                    ``(IV) the components of the vessel 
                                listed in paragraph (4) are 
                                manufactured in the United States; and
                    ``(B) with respect to the 5th calendar year 
                following the calendar year in which this subsection is 
                enacted and each calendar year thereafter, if the 
                vessel meets the requirements of subparagraph (A)(ii).
            ``(4) Components.--The components of a vessel listed in 
        this paragraph are the following:
                    ``(A) Air circuit breakers.
                    ``(B) Welded shipboard anchor and mooring chain.
                    ``(C) Powered and non-powered valves in Federal 
                Supply Classes 4810 and 4820 used in piping.
                    ``(D) Machine tools in the Federal Supply Classes 
                for metal-working machinery numbered 3405, 3408, 3410 
                through 3419, 3426, 3433, 3438, 3441 through 3443, 
                3445, 3446, 3448, 3449, 3460, and 3461.
                    ``(E) Auxiliary equipment for shipboard services, 
                including pumps.
                    ``(F) Propulsion equipment, including engines, 
                propulsion motors, reduction gears, and propellers.
                    ``(G) Shipboard cranes.
                    ``(H) Spreaders for shipboard cranes.
                    ``(I) Rotating electrical equipment, including 
                electrical alternators and motors.
            ``(5) Waiver authority.--The President may waive the 
        requirement under clause (i)(II)(bb) or clause (ii)(IV), as 
        applicable, of paragraph (3)(A) with respect to a component of 
        a vessel if the Maritime Administrator determines that--
                    ``(A) application of the requirement would--
                            ``(i) result in an increase of 25 percent 
                        or more in the cost of the component of the 
                        vessel; or
                            ``(ii) cause unreasonable delays to be 
                        incurred in building or retrofitting the 
                        vessel; or
                    ``(B) such component is not manufactured in the 
                United States in sufficient and reasonably available 
                quantities of a satisfactory quality.
            ``(6) Exception.--The President may not, under paragraph 
        (1), condition the export of crude oil to a nation with which 
        there is in effect a free trade agreement requiring national 
        treatment for trade in crude oil if the United States Trade 
        Representative certifies to the President, in writing, that 
        such condition would violate obligations of the United States 
        under such free trade agreement.
            ``(7) Opportunities for credentialed merchant mariners.--
        The Maritime Administrator shall ensure that each exporter of 
        crude oil by vessel provides opportunities for individuals with 
        a merchant mariner credential, as defined in section 2101 of 
        title 46, United States Code, to receive experience and 
        training necessary to become credentialed in working on such 
        vessels.
            ``(8) Use of federal information.--In carrying out 
        paragraph (1), the President--
                    ``(A) shall use information made available by--
                            ``(i) the Energy Information 
                        Administration; or
                            ``(ii) any other Federal agency or entity 
                        the Commission determines appropriate; and
                    ``(B) may use information made available by a 
                private entity only if applicable information described 
                in subparagraph (A) is not available.''.
    (c) Energy Information Administration Information.--The Secretary 
of Energy, acting through the Administrator of the Energy Information 
Administration (referred to in this section as the ``Secretary''), 
shall collect, and make readily available to the public on the internet 
website of the Energy Information Administration, information on 
exports by vessel of natural gas and crude oil, including--
            (1) forecasts for, and data on, those exports for the 
        calendar year following the calendar year in which this Act is 
        enacted and each calendar year thereafter; and
            (2) forecasts for those exports for multiyear periods after 
        the date of enactment of this Act, as determined appropriate by 
        the Secretary.

SEC. 421. SHIP AMERICA OFFICE.

    (a) In General.--Chapter 553 of title 46, United States Code, is 
amended by adding at the end the following:

                  ``Subchapter IV--Ship America Office

``Sec. 55341. Establishment of Ship America Office
    ``(a) Establishment.--The Maritime Administrator shall establish 
within the Maritime Administration an office to be known as the `Ship 
America Office'. The Maritime Administrator shall appoint the head of 
the Ship America Office (in this section referred to as the `Ship 
America Associate Administrator').
    ``(b) Duties.--The Ship America Associate Administrator shall have 
the following duties:
            ``(1) Providing assistance to private sector entities, 
        Federal financial assistance recipients, Federal agencies, 
        Federal contractors, and owners and operators of oceangoing 
        vessels of the United States to facilitate the movement of 
        commercial and government cargo on vessels of the United States 
        in international commerce.
            ``(2) Maximizing compliance across Federal agencies with 
        this chapter, section 2631 of title 10, United States Code, and 
        any other cargo preference law of the United States.
            ``(3) Providing training and assistance to Federal 
        employees, in all Federal agencies responsible for shipping 
        preference cargo, on the legal obligations under this chapter, 
        section 2631 of title 10, United States Code, and any other 
        cargo preference law of the United States.
            ``(4) Supporting the efforts of the executive branch to 
        develop and sustain a fleet of vessels of the United States and 
        maritime industrial base to meet the sealift needs of Federal 
        agencies.
            ``(5) Where practicable, making accessible, and regularly 
        updating, the publicly available contact information for 
        oceangoing vessels of the United States for the purposes of 
        moving international commerce.
            ``(6) Publishing, and regularly updating, centralized 
        information on the commercial benefits available to private 
        sector entities for moving commercial cargo on oceangoing 
        vessels of the United States.
            ``(7) Preparing the reports under subsection (c).
    ``(c) Reports Required.--Not later than 1 year after the date of 
enactment of this section, and biennially thereafter, the Maritime 
Administrator, acting through the Ship America Associate Administrator, 
shall report to the appropriate congressional committees (as defined in 
section 4 of the SHIPS for America Act of 2024) and the Maritime 
Security Board on--
            ``(1) the opportunities and challenges faced by commercial 
        entities to move cargo on oceangoing vessels of the United 
        States; and
            ``(2) recommendations to increase international commerce 
        moving on vessels of the United States.''.
    (b) Conforming Amendments.--The table of sections for chapter 553 
of title 46, United States Code, is amended by adding at the end the 
following:

                  ``subchapter iv--ship america office

``55341. Establishment of Ship America Office.''.

                     Subtitle C--Regulatory Reform

SEC. 431. ALTERNATE STANDARDS.

    (a) In General.--Chapter 33 of title 46, United States Code, is 
amended--
            (1) by redesignating sections 3317 and 3318 as sections 
        3318 and 3319, respectively; and
            (2) by inserting after section 3316 the following:
``Sec. 3317. Alternate standards
    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, the Secretary, in consultation with the 
Maritime Administrator, shall establish alternate standards to allow 
self-propelled vessels providing oceangoing transportation that are not 
documented under chapter 121 of this title to receive a certificate of 
inspection if the vessel will become a documented vessel.
    ``(b) Requirements.--Under the program established under subsection 
(a), a self-propelled vessel used to provide oceangoing transportation 
that is not documented under chapter 121 of this title shall be 
eligible for a certificate of inspection if the Secretary determines 
that--
            ``(1) the owner of the vessel has agreed to apply to have 
        the vessel documented under chapter 121 upon receiving the 
        certificate;
            ``(2) at the time of the receipt of such certificate, the 
        vessel is eligible for documentation under such chapter;
            ``(3) the vessel is classed by and designed in accordance 
        with the rules of a classification society accepted by the 
        Secretary;
            ``(4) the vessel complies with applicable international 
        agreements and associated guidelines, as determined by the 
        country in which the vessel was documented immediately before 
        becoming documented under chapter 121;
            ``(5) the vessel has been assessed for cybersecurity and 
        surveillance risks; and
            ``(6) the country in which the vessel was documented 
        immediately before becoming documented under chapter 121 has 
        not been identified by the Secretary as inadequately enforcing 
        international vessel regulations as to that vessel.
    ``(c) Continued Eligibility for Certificate.--This section does not 
apply to a vessel after any date on which the vessel fails to comply 
with the applicable international agreements and associated guidelines 
referred to in subsection (b)(4).
    ``(d) Reliance on Classification Society.--
            ``(1) In general.--The Secretary may rely on a 
        certification from the American Bureau of Shipping or, subject 
        to paragraph (2), another classification society accepted by 
        the Secretary to establish that a vessel is in compliance with 
        the requirements of paragraphs (3), (4), and (6) of subsection 
        (b) and of subsection (c).
            ``(2) Foreign classification society.--The Secretary may 
        accept certification from a foreign classification society 
        under paragraph (1) only--
                    ``(A) to the extent that the government of the 
                foreign country in which the society is headquartered 
                provides access on a reciprocal basis to the American 
                Bureau of Shipping; and
                    ``(B) if the foreign classification society has 
                offices and maintains records in the United States.
    ``(e) Rulemaking Procedure.--The Secretary may initiate a 
rulemaking procedure to implement this standard.
    ``(f) Savings Provision.--Nothing in this section shall be 
interpreted to affect requirements related to merchant seamen 
credentials under part E of subtitle II of this title or the 
requirements related to manning of vessels under part F of such 
subtitle.''.
    (b) Clerical Amendment.--The table of sections for chapter 33 of 
title 46, United States Code, is amended by striking the items relating 
to sections 3317 and 3318 and inserting the following:

``3317. Alternate standards.
``3318. Fees.
``3319. Penalties.''.

SEC. 432. RULEMAKING COMMITTEE ON COMMERCIAL MARITIME REGULATIONS AND 
              STANDARDS.

    (a) Definitions.--In this section:
            (1) Covered regulation.--The term ``covered regulation''--
                    (A) means a commercial regulation or standard 
                issued by the Coast Guard relating to the operation of 
                vessels in foreign commerce, including--
                            (i) vessel design and engineering 
                        standards;
                            (ii) merchant mariner training and 
                        credentialing; or
                            (iii) vessel operating and environmental 
                        standards; and
                    (B) does not include any commercial regulation or 
                standard issued by the Coast Guard that exclusively 
                applies to vessels in domestic commerce.
            (2) Rulemaking committee.--The term ``rulemaking 
        committee'' means the committee established under subsection 
        (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the department in which the Coast Guard is operating.
    (b) Establishment of Rulemaking Committee.--There is established, 
in the department in which the Coast Guard is operating, a rulemaking 
committee on commercial maritime regulations and standards to--
            (1) review, and develop findings and recommendations 
        regarding, the covered regulations; and
            (2) provide to the Secretary a report on opportunities to 
        review and update regulations governing vessel design and 
        engineering, vessel and facility operation and environmental 
        standards, and merchant mariner credentialing, in order to--
                    (A) revitalize the merchant marine; and
                    (B) better align, and limit redundancies between, 
                the regulatory standards of the Coast Guard and the 
                International Maritime Organization and international 
                treaty requirements.
    (c) Members.--
            (1) Composition of rulemaking committee.--The Secretary 
        shall appoint the following as members of the rulemaking 
        committee:
                    (A) Each of the following Federal officers or 
                employees, or their designees:
                            (i) The Maritime Security Advisor.
                            (ii) The Maritime Administrator.
                            (iii) The Commandant of the Coast Guard.
                            (iv) The Secretary of Commerce.
                            (v) The Administrator of the Environmental 
                        Protection Agency.
                            (vi) The Secretary of the Navy.
                            (vii) The Chair of the Federal Maritime 
                        Commission.
                            (viii) The chief United States delegate to 
                        the International Maritime Organization.
                    (B) Representatives from recognized classification 
                societies, including the American Bureau of Shipping.
                    (C) Representatives of industry, including--
                            (i) owners and operators of vessels in 
                        domestic and foreign commerce of the United 
                        States;
                            (ii) shipbuilders; and
                            (iii) other representatives of industry the 
                        Secretary determines appropriate.
                    (D) Individuals with a merchant mariner credential, 
                as defined in section 2101 of title 46, United States 
                Code.
                    (E) Representatives of maritime labor 
                organizations.
                    (F) Experts in maritime safety and regulatory 
                matters.
                    (G) Other stakeholders the Secretary determines 
                appropriate.
            (2) Period of appointment; vacancies.--
                    (A) In general.--A member of the rulemaking 
                committee shall be appointed for the life of the 
                rulemaking committee.
                    (B) Vacancies.--A vacancy in the rulemaking 
                committee--
                            (i) shall not affect the powers of the 
                        rulemaking committee; and
                            (ii) shall be filled in the same manner as 
                        the original appointment.
            (3) Chairperson and vice chairperson.--The Secretary shall 
        select a Chairperson and Vice Chairperson from among the 
        members of the rulemaking committee.
    (d) Meetings.--
            (1) Initial meeting.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall convene the 
        rulemaking committee for the first meeting of the rulemaking 
        committee.
            (2) Quorum.--A majority of the members of the rulemaking 
        committee shall constitute a quorum, but a lesser number of 
        members may hold hearings.
    (e) Duties of Committee.--
            (1) Considerations.--The rulemaking committee shall 
        consider each of the following:
                    (A) How the covered regulations interact with and 
                compare to the treaty requirements and regulations 
                established by the International Maritime Organization, 
                including comparisons and interactions on the basis 
                of--
                            (i) safety;
                            (ii) cost;
                            (iii) enforceability and compliance; and
                            (iv) international competitiveness.
                    (B) The benefits and challenges vessel owners and 
                operators and United States mariners encounter when 
                complying with both regulations of the International 
                Maritime Organization and the covered regulations.
                    (C) The role that covered regulations play in 
                enhancing the size and strength of the merchant marine 
                and the domestic and international fleet of the United 
                States.
                    (D) Recommended changes to covered regulations, and 
                regulatory frameworks, to better promote alignment with 
                international standards and the standards of countries 
                that are allies and partners, with a focus on--
                            (i) increasing opportunities for qualified 
                        mariners that enter the merchant marine and 
                        reducing the barriers that lead qualified 
                        mariners to leave the merchant marine;
                            (ii) increasing the number of vessels 
                        documented under the laws of the United States 
                        that are operating in domestic and foreign 
                        commerce;
                            (iii) enhancing United States leadership 
                        within the International Maritime Organization 
                        and other international treaty organizations 
                        with a focus on the maritime industry;
                            (iv) streamlining regulatory processes and 
                        processing timelines to minimize duplicative 
                        reviews and eliminate preventable delays; and
                            (v) maintaining and enhancing the safety 
                        and security of the merchant marine.
                    (E) Recommended changes to covered regulations and 
                regulatory frameworks that govern mariner education 
                training requirements, which may include--
                            (i) expanding the pool of qualified 
                        instructors for mariner training programs;
                            (ii) streamlining requirements related to 
                        training facility size and design to improve 
                        operational efficiencies at mariner training 
                        facilities, including requirements related to 
                        classroom size and design;
                            (iii) standardizing and streamlining 
                        training course and curriculum approval and 
                        evaluation to provide more certainty to mariner 
                        training programs; and
                            (iv) enhancing opportunities for mariner 
                        training programs to flexibly integrate sea-
                        time into course instruction, consistent with 
                        treaty requirements and regulations established 
                        by the International Maritime Organization.
                    (F) Any other matters the Secretary determines 
                appropriate.
            (2) Report.--Not later than 18 months after the date of 
        enactment of this Act, the rulemaking committee shall submit to 
        the Secretary a report that includes the findings and 
        recommended changes to covered regulations of the rulemaking 
        committee, as required under paragraph (1).
    (f) Powers of Rulemaking Committee.--
            (1) Hearings.--The rulemaking committee may hold such 
        hearings, sit and act at such times and places, take such 
        testimony, and receive such evidence as the rulemaking 
        committee considers advisable to carry out this section.
            (2) Information from federal agencies.--
                    (A) In general.--The rulemaking committee may 
                secure directly from a Federal department or agency 
                such information as the rulemaking committee considers 
                necessary to carry out this section.
                    (B) Furnishing information.--On request of the 
                Chairperson of the rulemaking committee, the head of 
                the department or agency shall furnish the information 
                to the rulemaking committee.
    (g) Rulemaking Committee Personnel Matters.--
            (1) No compensation.--A member of the rulemaking committee 
        shall not be compensated for service on the rulemaking 
        committee.
            (2) Travel expenses.--A member of the rulemaking committee 
        shall be allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the rulemaking committee.
    (h) Administration.--Except as specified otherwise in this section, 
the rulemaking committee shall be treated as a committee established 
under chapter 151 of title 46, United States Code, for purposes of 
section 15109 of such title.
    (i) Termination.--The rulemaking committee shall terminate on the 
earlier of--
            (1) the date that is 90 days after the date on which the 
        rulemaking committee submits the report under subsection 
        (e)(2); or
            (2) the date that is 7 years after the date on which the 
        rulemaking committee is established.
    (j) Duties of the Secretary.--The Secretary shall--
            (1) not later than 30 days after receiving the rulemaking 
        committee's report under subsection (e)(2), submit to the 
        appropriate committees of Congress, and make publicly 
        available, a copy of such report and the Secretary's views on 
        the recommendations of the committee; and
            (2) not later than 90 days after submitting the report 
        under paragraph (1)--
                    (A) initiate a rulemaking activity and make such 
                policy and guidance updates determined necessary by the 
                Secretary to address the consensus recommendations 
                reached by the rulemaking committee under subsection 
                (e);
                    (B) submit a report to the appropriate committees 
                of Congress identifying the recommendations of the 
                rulemaking committee that require legislative changes; 
                and
                    (C) submit a report to the Secretary of State 
                identifying recommendations of the rulemaking committee 
                that require changes to treaty requirements and 
                regulations established by the International Maritime 
                Organization, including recommendations that should 
                inform the policy of the United States as a member of 
                the International Maritime Organization.

SEC. 433. AMENDMENTS TO SHIPOWNERS' LIMITATION OF LIABILITY ACT OF 
              1851.

    (a) In General.--Section 30523 of title 46, United States Code, is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Limit of Owner Liability.--
            ``(1) In general.--Except as provided in section 30524 of 
        this title, the liability of--
                    ``(A) the owner of a vessel of the United States 
                for any claim, debt, or liability described in 
                subsection (b) shall not exceed the value of the vessel 
                and pending freight; and
                    ``(B) the owner of a foreign vessel for any claim, 
                debt, or liability described in subsection (b) shall 
                not exceed the amount that is 10 times the value of the 
                vessel and pending freight.
            ``(2) Multiple owners.--If a vessel has more than one 
        owner, the proportionate share of the liability under paragraph 
        (1) of any one such owner shall not exceed that owner's 
        proportionate interest in the vessel and pending freight.''; 
        and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Claims Not Subject to Limitation.--Subsection (a) does not 
apply to--
            ``(1) a claim for wages; or
            ``(2) with respect to the liability of an owner of a 
        foreign vessel, a claim, debt, or liability arising from 
        personal injury or wrongful death of a person who was not a 
        crewmember or passenger of the foreign vessel at the time the 
        injury (including fatal injury, if applicable) occurred.''.
    (b) Amendment to Cessation of Certain Actions.--Section 30529(c) of 
title 46, United States Code, is amended by striking ``the matter in 
question'' and inserting ``a matter subject to limitation under section 
30523''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to any liability subject to section 30523(a) of title 46, 
United States Code, that arises on or after March 25, 2024.

                         TITLE V--SHIPBUILDING

             Subtitle A--Shipbuilding Financial Incentives

SEC. 501. SHIPBUILDING FINANCIAL INCENTIVES.

    (a) In General.--Part C of subtitle V of title 46, United States 
Code, is amended by inserting after chapter 537 the following:

            ``CHAPTER 538--SHIPBUILDING FINANCIAL INCENTIVES

``Sec. 53801. Shipbuilding financial incentives
    ``(a) Establishment.--The Maritime Administrator shall establish a 
program that, in accordance with the requirements of this section, 
provides Federal financial assistance to covered entities to--
            ``(1) aid in the construction of a vessel that shall be 
        documented under the laws of the United States; or
            ``(2) incentivize a qualified shipyard investment.
    ``(b) Definitions.--In this section:
            ``(1) Appropriate committees of congress.--The term 
        `appropriate committees of Congress' means the Committee on 
        Commerce, Science, and Transportation and the Committee on 
        Appropriations of the Senate and the Committee on Armed 
        Services and the Committee on Appropriations of the House of 
        Representatives.
            ``(2) Covered entity.--The term `covered entity' means--
                    ``(A) any proposed vessel purchaser who is a 
                citizen of the United States; or
                    ``(B) any shipyard of the United States with the 
                ability, experience, financial resources, and other 
                qualifications to construct or repair a military vessel 
                or a vessel to be used in the foreign commerce of the 
                United States.
            ``(3) Foreign commerce.--The term `foreign commerce' 
        means--
                    ``(A) commerce or trade between the United States, 
                its territories or possessions, or the District of 
                Columbia, and a foreign country; and
                    ``(B) commerce or trade between foreign countries.
            ``(4) Foreign country of concern; foreign entity of 
        concern.--The terms `foreign country of concern' and `foreign 
        entity of concern' have the meanings given such terms in 
        section 4 of the SHIPS for America Act of 2024.
            ``(5) Qualified shipyard investment.--The term `qualified 
        shipyard investment' means an investment to construct, 
        modernize, or expand--
                    ``(A) a shipyard of the United States that 
                constructs or repairs civilian or military vessels; or
                    ``(B) a manufacturing facility--
                            ``(i) that is--
                                    ``(I) a component supplier;
                                    ``(II) a subcomponent supplier;
                                    ``(III) a manufacturing equipment 
                                supplier; or
                                    ``(IV) a steel plate manufacturing 
                                facility;
                            ``(ii) that is based in the United States; 
                        and
                            ``(iii)(I) at which at least 50 percent of 
                        the products produced will be sold to shipyards 
                        of the United States or used to construct 
                        vessels of the United States; or
                            ``(II) at which the investment will more 
                        than double the facility's capacity to produce 
                        products to be sold to shipyards of the United 
                        Sates or used to construct vessels of the 
                        United States, as determined by the 
                        Administrator.
    ``(c) Procedure.--
            ``(1) Application.--A covered entity desiring financial 
        assistance under this section shall submit an application to 
        the Maritime Administrator.
            ``(2) Eligibility.--In order for a covered entity to 
        qualify for financial assistance under this section, the 
        covered entity shall--
                    ``(A) for financial assistance related to 
                construction of a vessel of the United States as 
                described in subsection (a)(1)--
                            ``(i) enter into an agreement with the 
                        Maritime Administrator establishing that the 
                        vessel that is constructed with Federal 
                        financial assistance shall be, for a period of 
                        not less than 10 years, documented under the 
                        laws of the United States; and
                            ``(ii) agree to carry out all construction 
                        in a shipyard of the United States as the 
                        result of competitive bidding, after due 
                        advertisement, with the right reserved by the 
                        Administrator to disapprove any or all bids;
                    ``(B) for financial assistance related to qualified 
                shipyard investments as described in subsection (a)(2), 
                use the financial assistance award amounts to 
                incentivize investments in--
                            ``(i) facilities or equipment related to 
                        shipbuilding or ship repair; or
                            ``(ii) maritime component suppliers, 
                        subcomponent suppliers, and steel plate 
                        manufacturing facilities with over 50 percent 
                        maritime use in each such investment; and
                    ``(C) make commitments to worker and community 
                investment, including through--
                            ``(i) programs to expand employment 
                        opportunity for economically disadvantaged 
                        individuals; and
                            ``(ii) securing commitments from regional 
                        educational and training entities and 
                        institutions of higher education to provide 
                        workforce training, including programming for 
                        training and job placement of economically 
                        disadvantaged individuals.
            ``(3) Review of applications.--
                    ``(A) Considerations for review.--With respect to 
                the review by the Maritime Administrator of an 
                application submitted--
                            ``(i) the Maritime Administrator may not 
                        approve an application for construction of a 
                        vessel as described in subsection (a)(1) unless 
                        the Administrator--
                                    ``(I) determines that a vessel 
                                funded through the program--
                                            ``(aa) will aid in the 
                                        promotion and development of 
                                        foreign commerce; and
                                            ``(bb) will be suitable for 
                                        use by the United States for 
                                        national defense or military 
                                        purposes in time of war or 
                                        national emergency;
                                    ``(II) confirms that the vessel 
                                purchaser that received funding under 
                                this section possesses the ability, 
                                experience, financial resources, and 
                                other qualifications necessary for the 
                                operation and maintenance of the 
                                proposed new vessel;
                                    ``(III) confirms that any shipyard 
                                selected to construct a vessel under 
                                this section possesses the ability, 
                                experience, financial resources, 
                                equipment, and other qualifications 
                                necessary to properly to construct the 
                                proposed vessel;
                                    ``(IV) confirms that any newly 
                                constructed vessel has dedicated space 
                                for the training of cadets of the 
                                United States Merchant Marine Academy 
                                (consistent with the requirements of 
                                section 51307(b)), State maritime 
                                academies (consistent with the 
                                requirements of section 51507), or 
                                other workforce training programs 
                                identified by the Administrator; and
                                    ``(V) has notified the appropriate 
                                committees of Congress not later than 
                                15 days before making any commitment to 
                                provide Federal financial assistance to 
                                any covered entity;
                            ``(ii) the Maritime Administrator may not 
                        approve an application to incentivize qualified 
                        shipyard investments as described in subsection 
                        (a)(2) unless the Administrator--
                                    ``(I) confirms that the covered 
                                entity has received an incentive 
                                offered by a governmental entity to a 
                                covered entity for the purposes of 
                                supporting a qualified shipyard 
                                investment within that jurisdiction;
                                    ``(II) ensures that the covered 
                                entity has an executable plan to 
                                sustain the facility without additional 
                                Federal financial assistance under this 
                                subsection for the facility;
                                    ``(III) determines that the project 
                                to which the application relates is in 
                                the economic and national security 
                                interests of the United States; and
                                    ``(IV) receives detailed 
                                information on--
                                            ``(aa) the customers, or 
                                        categories of customers, which 
                                        the covered entity plans to 
                                        serve;
                                            ``(bb) the type of 
                                        expenditures which the covered 
                                        entity plans to make; and
                                            ``(cc) the workforce 
                                        positions that the covered 
                                        entity plans to employ, 
                                        including any required 
                                        recruitment, training, and 
                                        hiring; and
                            ``(iii) the Maritime Administrator may 
                        consider--
                                    ``(I) whether the covered entity 
                                has previously received financial 
                                assistance under this section;
                                    ``(II) the price for the 
                                construction or repair of a vessel that 
                                has been negotiated between a shipyard 
                                and proposed vessel purchaser, and 
                                whether the negotiated price is fair 
                                and reasonable;
                                    ``(III) whether the covered entity 
                                commits to use equipment, materials, 
                                and supplies that are produced in the 
                                United States, and utilize, to the 
                                maximum extent practicable, 
                                subcontractors and suppliers that are 
                                based in the United States; and
                                    ``(IV) whether the covered entity 
                                commits to utilizing new or emerging 
                                technologies.
                    ``(B) Records.--The Maritime Administrator may 
                request records and information from the applicant to 
                review the status of a covered entity. The applicant 
                shall provide the records and information requested by 
                the Administrator.
                    ``(C) Priority.--In providing Federal financial 
                assistance to covered entities under this section, the 
                Maritime Administrator may--
                            ``(i) for an application for construction 
                        of a vessel as described in subsection (a)(1), 
                        give priority to applicants that--
                                    ``(I) propose the construction of 
                                vessels of higher transport capability 
                                and productivity;
                                    ``(II) commit to have modifications 
                                done in the United States to a vessel 
                                constructed with such financial 
                                assistance; or
                                    ``(III) propose the construction or 
                                modification of a vessel to meet the 
                                national security needs of the United 
                                States; and
                            ``(ii) for an application to incentivize a 
                        qualified shipyard investment as described in 
                        subsection (a)(2), give priority to applicants 
                        that--
                                    ``(I) propose to expand production 
                                capacity to enable more military or 
                                commercial vessels to be constructed or 
                                repaired in the United States;
                                    ``(II) commit to using new or 
                                emerging technologies or vessel design 
                                processes that increase production 
                                times or lower production costs; or
                                    ``(III) have experience making 
                                qualified shipyard investments or 
                                operating shipyards for commercial or 
                                military oceangoing vessels.
            ``(4) National defense features.--
                    ``(A) In general.--Upon receiving an application 
                for the construction of a vessel under this section, 
                the Maritime Administrator shall submit to the 
                Secretary of the Navy the plans and specifications for 
                the proposed vessel for review.
                    ``(B) Recommendations.--Not later than 30 days 
                after the date of receiving the plans and 
                specifications for a vessel as provided for under 
                subparagraph (A), the Secretary of the Navy may make 
                recommendations to the Maritime Administrator for the 
                design of the vessel, which would enable the economical 
                and speedy conversion of the vessel into a vessel 
                suitable for use of the United States Government in 
                times of war or national emergency.
                    ``(C) Requirement to implement recommendations.--If 
                the Maritime Administrator agrees with such 
                recommendations, the Maritime Administrator may require 
                the covered entity to carry out such recommendations as 
                a condition of receiving Federal financial assistance 
                under this section with respect to that vessel.
            ``(5) Relationship to other financial assistance 
        programs.--A covered entity may not receive financial 
        assistance under this section for a vessel which is enrolled in 
        the Strategic Commercial Fleet Program.
    ``(d) Award Amounts.--
            ``(1) Construction of a vessel of the united states.--For 
        financial assistance related to construction of a vessel of the 
        United States, as described in subsection (a)(1), the Maritime 
        Administrator shall determine the appropriate amount and 
        funding for each type of financial assistance award made under 
        this section based on the difference in the cost of 
        constructing the proposed vessel within the United States over 
        the fair and reasonable estimate of cost of the construction of 
        that type of vessel if it were constructed under similar plans 
        and specifications (excluding national defense features as 
        described in subsection (c)(4)) in a foreign shipbuilding 
        center that is deemed by the Administrator to furnish a fair 
        and representative example for the determination of the 
        estimated foreign cost of construction of vessels of the type 
        proposed to be constructed.
            ``(2) Qualified shipyard investments.--For financial 
        assistance provided to incentivize qualified shipyard 
        investments as described in subsection (a)(2), the Maritime 
        Administrator shall determine the appropriate amount for each 
        financial assistance award made to a covered entity to maximize 
        private sector investments and to expand shipyard and ship 
        building capacity of the United States.
            ``(3) Use of funds.--A covered entity that receives a 
        financial assistance award under this section may only use the 
        financial assistance award amounts to--
                    ``(A) finance the construction of a vessel to be 
                built in the United States and documented under the 
                laws of the United States;
                    ``(B) support site development, construction, and 
                modernization for qualified shipyard investments;
                    ``(C) pay reasonable costs related to the operating 
                expenses for a qualified shipyard investment, including 
                specialized workforce, essential materials, and complex 
                equipment maintenance, as determined by the 
                Administrator; or
                    ``(D) support workforce development for a shipyard 
                of the United States.
    ``(e) Applications for Reconstruction, Conditioning, or 
Repowering.--The Maritime Administrator may, if determined to be in the 
national and economic security interests of the United States and 
consistent with the requirements of this section, consider an 
application as described in subsection (a)(1), and award financial 
assistance under this section, for the reconstruction, reconditioning, 
or repowering of an existing vessel in a shipyard of the United States.
    ``(f) Pilot Program for Vessels in Domestic Commerce.--
            ``(1) In general.--The Maritime Administrator may, if 
        determined to be in the national and economic security 
        interests of the United States and consistent with all other 
        requirements of this section (except the requirement under 
        subsection (c)(3)(A)(i)(I)(aa)), establish a pilot program to 
        consider an application as described in subsection (a)(1), and 
        award financial assistance under this section for the 
        construction of a vessel for use in service other than the 
        foreign commerce.
            ``(2) Eligible vessels.--In addition to all other 
        requirements of this section (except the requirement under 
        subsection (c)(3)(A)(i)(I)(aa)), a vessel qualifying for 
        funding through the pilot program under this subsection shall 
        only be eligible if the Administrator certifies that the vessel 
        of the United States that will be constructed--
                    ``(A) will operate in an emerging industry or a new 
                trade lane and will not compete with existing vessels 
                of the United States; or
                    ``(B)(i) will replace an existing vessel of the 
                United States that is or will be acquired by the 
                Administrator to be placed in the National Defense 
                Reserve Fleet, pursuant to section 57101; and
                    ``(ii) will operate for not longer than 21 years 
                and upon disposition will be placed in the National 
                Defense Reserve Fleet, pursuant to section 57101.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to alter the requirements under section 
        55102.
    ``(g) Clawback.--
            ``(1) Target dates.--For all awards to covered entities 
        under this section, the Administrator shall, before the award 
        is made, determine target dates by which the vessel's 
        construction or a qualified shipyard investment shall be 
        completed.
            ``(2) Progressive recovery for delays.--Subject to 
        paragraph (3), if a covered entity does not meet such target 
        dates, the Administrator shall progressively recover up to the 
        full amount of an award provided to a covered entity under this 
        section.
            ``(3) Waiver.--In the case of delays that do not meet such 
        target dates, the Administrator may waive elements of the 
        progressive recovery described in paragraph (2) that is 
        incorporated in each award after--
                    ``(A) making a formal determination that 
                circumstances beyond the ability of the covered entity 
                to foresee or control are responsible for delays; and
                    ``(B) submitting congressional notification.
            ``(4) Congressional notification.--The Administrator shall 
        notify the appropriate committees of Congress--
                    ``(A) of the target dates described in paragraph 
                (1) for each award; and
                    ``(B) of any waivers provided under paragraph (3) 
                not later than 15 days after the date on which such a 
                waiver was provided.
    ``(h) Voluntary Intermodal Sealift Agreement.--
            ``(1) In general.--The Maritime Administrator shall require 
        any vessel that is constructed with financial assistance under 
        this section to enter into a Voluntary Intermodal Sealift 
        Agreement or a Voluntary Tanker Agreement with the Maritime 
        Administrator.
            ``(2) Condition.--The owner of any vessel that is 
        constructed with financial assistance under this section and 
        that has a Voluntary Intermodal Sealift Agreement or Voluntary 
        Tanker Agreement with the Maritime Administrator shall agree to 
        provide effective control of such vessel to the United States 
        during--
                    ``(A) a national emergency declared by Presidential 
                proclamation; or
                    ``(B) a period for which the President has 
                proclaimed that the security of the national defense 
                makes it advisable.
            ``(3) Compensation.--During a period described in paragraph 
        (1), the owner of a vessel described in such paragraph shall be 
        compensated for the use of the vessel by the United States at 
        the rate the Administrator considers just compensation for the 
        use of the vessel.
    ``(i) Clarification.--The provision by the Administrator of Federal 
financial assistance for a project described in this section shall not 
be considered to be a major Federal action under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or an 
undertaking for the purposes of division A of subtitle III of title 54, 
United States Code.
    ``(j) Buy America.--Section 54101(d)(2) shall apply to any funds 
obligated by the Administrator under this section.
    ``(k) GAO Review.--The Comptroller General of the United States 
shall--
            ``(1) not later than 2 years after the date of disbursement 
        of the first financial award under this section, and biennially 
        thereafter for 10 years, conduct a review of the program under 
        this section; and
            ``(2) submit to the appropriate committees of Congress the 
        results of each review.
    ``(l) Prohibition on Use of Funds.--
            ``(1) In general.--No funds made available under this 
        section may--
                    ``(A) be used to construct, modify, or improve a 
                facility outside of the United States; or
                    ``(B) be provided to a foreign entity of concern or 
                to support a foreign entity of concern.
            ``(2) Stock buybacks.--An entity receiving financial 
        assistance under this section may not engage in any stock 
        buyback for a period of 5 years after receiving such 
        assistance.
    ``(m) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator, out of the Maritime Security Trust 
Fund established under section 9512 of the Internal Revenue Code of 
1986, $250,000,000 for each of fiscal years 2025 through 2034 to 
provide financial assistance to covered entities under this section, to 
remain available until expended.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part C of subtitle V of title 46, United States Code, and at the 
beginning of subtitle V of such title, are each amended by inserting 
after the item relating to chapter 537 the following new item:

``538. Shipbuilding financial incentives....................   53801''.
    (c) Conforming Amendment.--Title V of the Act of June 29, 1936 (49 
Stat. 1995; chapter 858) is repealed.

SEC. 502. ASSISTANCE FOR SMALL SHIPYARDS.

    Section 54101 of title 46, United States Code, is amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) long-term industrial base growth that 
                supports the national security and economic security 
                needs of the merchant marine of the United States.''; 
                and
            (2) in subsection (i)--
                    (A) by inserting ``out of the Maritime Security 
                Trust Fund established under section 9512 of the 
                Internal Revenue Code of 1986'' before ``to the 
                Administrator of the Maritime Administration''; and
                    (B) by striking ``for fiscal year 2021 to carry out 
                this section $20,000,000'' and inserting ``$100,000,000 
                for each of fiscal years 2025 through 2034''.

SEC. 503. FEDERAL SHIP FINANCING (TITLE XI) PROGRAM.

    (a) Establishment of Revolving Loan Fund.--Section 53702 of title 
46, United States Code, is amended by adding at the end the following:
    ``(c) Establishment of Revolving Loan Fund.--Not later than 30 days 
after the date of enactment of the SHIPS for America Act of 2024, the 
Secretary shall establish a revolving loan fund to be administered by 
the National Surface Transportation and Innovation Finance Bureau 
established under section 116 of title 49. Any funds appropriated to 
carry out this chapter shall be deposited in the fund, along with any 
proceeds generated from the loan guarantee program under this chapter 
including any fees collected under section 53713 or 53714. The 
Secretary or Administrator shall make a guarantee of payments or 
commitment to guarantee payments under subsection (a) or for the 
Secretary to make direct loan obligations under subsection (b) out of 
the revolving loan fund.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated, out of the Maritime Security Trust Fund established under 
section 9512 of the Internal Revenue Code of 1986, $100,000,000 for 
fiscal year 2025 to be available until expended to the revolving loan 
fund established under subsection (c).''.
    (b) Funding Limits.--Section 53704 of title 46, United States Code, 
is amended--
            (1) in subsection (a), by striking ``facilities.'' and 
        inserting ``facilities, and not less than 50 percent of 
        obligations guaranteed under this chapter shall be for projects 
        that do not receive any payments or Federal financial 
        assistance from financial assistance programs established under 
        this part.''; and
            (2) in subsection (c), by adding at the end the following:
            ``(5) Vessel of national interest.--The Administrator shall 
        ensure that the system of risk categories under paragraph (2) 
        takes into consideration whether a project subject to a 
        guarantee under this chapter is a project to construct, 
        reconstruct, or recondition a Vessel of National Interest.''.
    (c) Eligible Purposes of Obligations.--Section 53706(a)(8) of title 
46, United States Code, is amended--
            (1) by striking ``States.'' and inserting ``States that is 
        required--''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(A) for the vessel to be a vessel of the United 
                States;
                    ``(B) for the vessel to be issued a coastwise 
                endorsement under chapter 121;
                    ``(C) to convert a civilian vessel of the United 
                States to a more useful military configuration;
                    ``(D) for any vessel under contract to the Federal 
                Government; or
                    ``(E) for any United States-built vessel 
                participating in--
                            ``(i) the Maritime Security Program or the 
                        Emergency Preparedness Program under chapter 
                        531;
                            ``(ii) the Cable Security Fleet under 
                        chapter 532;
                            ``(iii) the Tanker Security Fleet under 
                        chapter 534;
                            ``(iv) the Strategic Commercial Fleet under 
                        chapter 536;
                            ``(v) the Shipbuilding Financial Incentive 
                        under chapter 538; or
                            ``(vi) the National Defense Reserve Fleet 
                        under section 57100.''.
    (d) Buy America.--Section 53733 of title 46, United States Code, is 
amended by adding at the end the following:
    ``(f) Buy America.--Section 54101(d)(2) shall apply to any funds 
obligated by the Administrator under this section.''.

SEC. 504. CONSTRUCTION RESERVE FUND.

    (a) Definitions.--Section 53301(a) of title 46, United States Code, 
is amended--
            (1) in paragraph (1), by striking ``a new vessel'' and 
        inserting ``an eligible vessel'';
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by striking ``New 
                vessel'' and inserting ``Eligible vessel'';
                    (B) in the matter preceding subparagraph (A), by 
                striking ``new vessel'' and inserting ``eligible 
                vessel''; and
                    (C) in subparagraph (A)--
                            (i) in clause (i), by striking ``after 
                        December 31, 1939'';
                            (ii) in clause (ii), by striking ``and'' 
                        after the semicolon;
                            (iii) by redesignating clause (iii) as 
                        clause (iv); and
                            (iv) by inserting after clause (ii), the 
                        following:
                            ``(iii) operated in foreign commerce or 
                        domestic commerce of the United States or in 
                        the fisheries; and''; and
            (3) by adding at the end the following:
            ``(3) Foreign commerce.--The term `foreign commerce' 
        means--
                    ``(A) commerce or trade between the United States, 
                its territories or possessions, or the District of 
                Columbia, and a foreign country; and
                    ``(B) commerce or trade between foreign 
                countries.''.
    (b) Authority for Construction Reserve Funds.--Section 53302(a) of 
title 46, United States Code, is amended by striking ``or acquisition 
of a new vessel'' and inserting ``repowering, or acquisition of an 
eligible vessel''.
    (c) Persons Eligible to Establish Funds.--Section 53303 of title 
46, United States Code, is amended--
            (1) by striking the matter preceding paragraph (1) and 
        inserting the following: ``A citizen of the United States may 
        make an agreement with the Secretary of Transportation under 
        this chapter to establish a construction reserve fund if that 
        citizen--'';
            (2) in paragraph (1), by striking ``in the foreign or 
        domestic commerce of the United States'' and inserting 
        ``documented under the laws of the United States and operating 
        in foreign commerce or domestic commerce of the United 
        States'';
            (3) in paragraph (2), by striking ``being operated in the 
        foreign or domestic commerce of the United States'' and 
        inserting ``documented under the laws of the United States and 
        operating in foreign commerce or domestic commerce of the 
        United States'';
            (4) in paragraph (3), by striking ``in the foreign or 
        domestic commerce of the United States'' and inserting 
        ``documented under the laws of the United States and operating 
        in foreign commerce or domestic commerce of the United 
        States'';
            (5) in paragraph (4)--
                    (A) by striking ``being operated in the foreign or 
                domestic commerce of the United States'' and inserting 
                ``documented under the laws of the United States and 
                operating in foreign commerce or domestic commerce of 
                the United States''; and
                    (B) by striking ``or'' after the semicolon;
            (6) in paragraph (5)--
                    (A) by striking ``in the foreign or domestic 
                commerce of the United States'' and inserting 
                ``documented under the laws of the United States to 
                operate in foreign commerce or domestic commerce of the 
                United States''; and
                    (B) by striking the period at the end and inserting 
                ``; or''; and
            (7) by adding at the end the following:
            ``(6) commits, as a part of the agreement with the 
        Secretary under this chapter, to construct, reconstruct, 
        recondition, repower, or acquire, and operate, an eligible 
        vessel by not later than 5 years after the date on which the 
        construction reserve fund is established.''.
    (d) Vessel Ownership.--Section 53304 of title 46, United States 
Code, is amended by striking ``constructed or acquired'' each place the 
term appears and inserting ``constructed, reconstructed, reconditioned, 
repowered, or acquired''.
    (e) Basis for Determining Gain or Loss.--Section 53307 of title 46, 
United States Code, is amended--
            (1) in the section heading, by striking ``new vessels'' and 
        inserting ``eligible vessels'';
            (2) by striking ``a new vessel'' and inserting ``an 
        eligible vessel'';
            (3) by striking ``the new vessel'' and inserting ``the 
        eligible vessel'';
            (4) by inserting ``repowered,'' after ``reconditioned,''; 
        and
            (5) by inserting ``repowering,'' after ``reconditioning,''.
    (f) Obligation of Deposits.--Section 53310 of title 46, United 
States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``a new vessel'' each place the 
                term appears and inserting ``an eligible vessel''; and
                    (B) in paragraph (1)(A), by striking ``or 
                reconditioning'' and inserting ``, repowering, or 
                reconditioning''; and
            (2) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) Additional Requirements for Certain Vessels.--In addition to 
the requirements of subsection (a)(1), for an eligible vessel not 
constructed under the construction-differential program or not bought 
from the Secretary of Transportation, construction shall commence with 
reasonable dispatch after the date of the construction contract, as 
determined by the Secretary of Transportation and certified by such 
Secretary to the Secretary of the Treasury.
    ``(c) Extensions.--The Secretary of Transportation may grant 
extensions of the period within which the deposits must be expended or 
obligated, except that such extensions may not be for a total of more 
than 15 years for the expenditure or obligation of deposits.''.
    (g) Taxation of Deposits on Failure of Conditions.--Section 
53311(3) of title 46, United States Code, is amended by striking ``to 
the extent of 5 percent of completion''.
    (h) Clerical Amendment.--The table of sections for chapter 533 of 
title 46, United States Code, is amended by striking the item relating 
to section 53307 and inserting the following:

``53307. Basis for determining gain or loss and for depreciating 
                            eligible vessels.''.

SEC. 505. CAPITAL CONSTRUCTION FUND.

    (a) In General.--Chapter 535 of subtitle V of title 46, United 
States Code, is amended--
            (1) in section 53501--
                    (A) by redesignating paragraphs (2), (3), (4), (5), 
                (6), (7), (8), and (9), as paragraphs (3), (5), (7), 
                (8), (9), (10), (11), and (12), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) Cargo handling equipment.--The term `cargo handling 
        equipment' means any vehicle or land-based equipment (excluding 
        marine container chassis, but including cargo-handling 
        equipment that emits less than 1 gram of CO2(kWh)), and the 
        associated marine terminal or port landside infrastructure, 
        used at a marine terminal to lift or move cargo--
                    ``(A) manufactured in the United States (including 
                any territory or possession of the United States); or
                    ``(B) manufactured outside of the United States, if 
                such equipment is not produced in the United States in 
                sufficient and reasonably available quantities or of a 
                satisfactory quality as determined by the Secretary.'';
                    (C) by inserting after paragraph (3), as 
                redesignated by subparagraph (A), the following:
            ``(4) Foreign commerce.--The term `foreign commerce' 
        means--
                    ``(A) commerce or trade between the United States, 
                its territories or possessions, or the District of 
                Columbia, and a foreign country; and
                    ``(B) commerce or trade between foreign 
                countries.'';
                    (D) by inserting after paragraph (5), as 
                redesignated by subparagraph (A), the following:
            ``(6) Marine terminal.--The term `marine terminal' means 
        wharves, bulkheads, quays, piers, docks, and other berthing 
        locations and adjacent storage or adjacent areas and structures 
        associated with the primary movement of cargo or materials from 
        vessel to shore, or from shore to vessel, including structures 
        which are devoted to receiving, handling, holding, 
        consolidating, loading, or delivery of waterborne shipments, 
        including areas devoted to the maintenance of the terminal or 
        equipment.'' ;
                    (E) in paragraph (3)(A)(iii), as redesignated by 
                subparagraph (A), by striking ``foreign or domestic 
                trade of the United States'' and inserting ``foreign 
                commerce or domestic trade of the United States''; and
                    (F) in paragraph (8)(A)(iii), as redesignated by 
                subparagraph (A), by striking ``foreign or domestic 
                trade of the United States'' and inserting ``foreign 
                commerce or domestic trade of the United States'';
            (2) in section 53503--
                    (A) by striking subsection (a) and inserting the 
                following:
    ``(a) In General.--
            ``(1) Citizen agreements.--A citizen of the United States 
        may make an agreement with the Secretary under this chapter to 
        establish a capital construction fund for a vessel if that 
        citizen--
                    ``(A) owns or leases an eligible vessel; or
                    ``(B) commits, as a part of such agreement, to 
                build and operate an eligible vessel not later than 5 
                years after establishing the capital construction fund.
            ``(2) Operator agreements.--An operator of a United States 
        marine terminal may make an agreement with the Secretary under 
        this chapter to establish a capital construction fund for the 
        marine terminal.''; and
                    (B) by striking subsection (b), and inserting the 
                following:
    ``(b) Allowable Purpose.--The purpose of the agreement shall be to 
provide--
            ``(1) replacement vessels, additional vessels, or 
        reconstructed vessels, built in the United States and 
        documented under the laws of the United States, for operation 
        in the foreign commerce or domestic trade of the United States 
        or in the fisheries of the United States; or
            ``(2) replacement cargo handling equipment, additional 
        cargo handling equipment, or reconstructed cargo handling 
        equipment for operation at marine terminals in the United 
        States.'';
            (3) in section 53504(b), by inserting ``or United States 
        marine terminal'' after ``agreement vessel'';
            (4) by striking section 53505 and inserting the following:
``Sec. 53505. Ceiling on deposits
    ``(a) Maximum Deposits.--The amount deposited in a capital 
construction fund for a taxable year may not exceed the amount 
specified in the agreement under section 53503(a), which shall be an 
amount that is related to a commitment to invest the revenue from the 
capital construction fund into funding the construction of new vessels 
or funding cargo handling equipment.
    ``(b) Revenue.--For the purposes of subsection (a), the revenue 
from the capital construction fund may include--
            ``(1) income attributable to the operation of the agreement 
        vessel in foreign commerce or domestic trade or fisheries or 
        the operation of a marine terminal in the United States;
            ``(2) the amount allowable as a deduction under section 167 
        of the Internal Revenue Code of 1986 for the taxable year with 
        respect to the agreement vessels or cargo handling equipment;
            ``(3) the net proceeds from the disposition of an agreement 
        vessel or cargo handling equipment or insurance or indemnity 
        attributable to the vessel or cargo handling equipment; and
            ``(4) the receipts from the investment or reinvestment of 
        amounts held in the fund.
    ``(c) Reductions for Lessees.--For a lessee, the maximum amount 
that may be deposited for an agreement vessel under subsection (a) for 
any period shall be reduced by any amount the owner is required or 
permitted, under the capital construction fund agreement, to deposit 
for that period for the vessel under subsection (a).'';
            (5) in section 53506--
                    (A) in subsection (a), by striking ``Except as 
                provided in subsection (b), amounts in the fund may be 
                invested only in interest-bearing securities approved 
                by the Secretary.''; and
                    (B) in subsection (b), by striking ``With the 
                approval of the Secretary, an agreed percentage (but 
                not more than 60 percent) of the assets of the fund'' 
                and inserting ``An agreed percentage of the assets of 
                the fund'';
            (6) in section 53509--
                    (A) by striking subsection (a), and inserting the 
                following:
    ``(a) In General.--Subject to subsections (b) and (c), a withdrawal 
from a capital construction fund is a qualified withdrawal if it is 
made under the terms of the agreement and is for--
            ``(1) the acquisition, construction, repowering, or 
        reconstruction of--
                    ``(A) a qualified vessel or a barge or container 
                that is part of the complement of a qualified vessel; 
                or
                    ``(B) cargo handling equipment; or
            ``(2) the payment of the principal on indebtedness incurred 
        in the acquisition, construction, repowering, or reconstruction 
        of--
                    ``(A) a qualified vessel or a barge or container 
                that is part of the complement of a qualified vessel; 
                or
                    ``(B) cargo handling equipment.'';
                    (B) by redesignating subsection (c) as subsection 
                (e); and
                    (C) by inserting after subsection (b) the 
                following:
    ``(c) Fully Automated Cargo Handling Equipment.--No withdrawals may 
be made from a capital construction fund to purchase fully automated 
cargo handling equipment that is remotely operated or remotely 
monitored with or without the exercise of human intervention or 
control, if the Secretary determines such equipment would result in a 
net loss of jobs within a marine terminal.
    ``(d) Prohibition on Certain Cranes.--No withdrawals may be made 
from a capital construction fund to purchase cranes manufactured in the 
People's Republic of China or by foreign entities of concern (as 
defined in section 4 of the SHIPS for America Act of 2024).'';
            (7) in section 53510--
                    (A) in subsection (b), by inserting ``cargo 
                handling equipment,'' after ``barge,'' both places the 
                term appears;
                    (B) in subsection (c), by inserting ``cargo 
                handling equipment,'' after ``barge,'' both places the 
                term appears; and
                    (C) in subsection (d), by inserting ``cargo 
                handling equipment,'' after ``barges,'';
            (8) in section 53511(e)(1), by striking the table contained 
        therein and inserting the following:
``If the amount remains in the fund The applicable percentage is-
        at the close of the-
        16th taxable year.................................. 20 percent 
        17th taxable year.................................. 40 percent 
        18th taxable year.................................. 60 percent 
        19th taxable year.................................. 80 percent 
        20th taxable year................................100 percent'';
        and
            (9) in section 53512(b)(1), by adding ``cargo handling 
        equipment,'' after ``advanced''.
    (b) Cargo Handling Equipment Availability.--The Secretary shall 
annually publish in the Federal Register a request for information 
regarding the availability of cargo handling equipment manufactured in 
the United States and shall share the results of such request for 
information with capital construction fund holders.

SEC. 506. ANTICIPATED COMMERCIAL VESSEL CONSTRUCTION SURVEY.

    (a) In General.--Chapter 501 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 50115. Anticipated commercial vessel construction survey
    ``(a) Definition.--In this section, `commercial vessel of the 
United States' means a vessel that is documented under the laws of the 
United States, not less than 6,000 deadweight tons, and operated in the 
domestic trade of the United States or foreign commerce, and may 
include--
            ``(1) a bulk carrier vessel;
            ``(2) a tanker vessel;
            ``(3) a roll-on/roll-off vessel;
            ``(4) a liquefied natural gas tanker vessel;
            ``(5) a container vessel;
            ``(6) a multi-purpose vessel;
            ``(7) a cable vessel (as defined in section 53201);
            ``(8) a heavy-lift vessel; or
            ``(9) any other type of vessel determined appropriate by 
        the Administrator, in consultation with the Maritime Security 
        Board.
    ``(b) In General.--Not later than 180 days after the date of 
enactment of this section, and annually thereafter, the Maritime 
Administrator shall conduct a survey of owners, agents, or operators of 
commercial vessels of the United States to identify plans for the 
construction, maintenance, and modernization of commercial vessels of 
the United States.
    ``(c) Purpose.--The purpose of the survey conducted under this 
section is to inform the maritime industrial base of the future need 
for the construction of commercial vessels.
    ``(d) Inclusions.--In conducting the survey under this section, the 
Maritime Administrator shall collect the following information from 
owners, agents, or operators of commercial vessels of the United States 
who participate in the survey:
            ``(1) The number of commercial vessels of the United States 
        the participant is looking to construct during the 10-year 
        period beginning on the date on which the participant takes the 
        survey.
            ``(2) The capabilities of the vessels described in 
        paragraph (1) that the participant is seeking in constructing 
        such vessels.
            ``(3) Estimated timelines for when the participant aims to 
        place each such vessel into service.
            ``(4) The number of major repairs of commercial vessels of 
        the United States and overhauls of such commercial vessels the 
        participant is looking to carry out during the 10-year period 
        described in paragraph (1).
            ``(5) The major components that a shipbuilder would need 
        from industrial base suppliers to support the construction, 
        overhaul, or repair of commercial vessels of the United States 
        during such 10-year period.
            ``(6) Estimates for the capital expenditures the 
        participant is planning to make for the construction, overhaul, 
        or repair of commercial vessels of the United States during 
        such 10-year period.
            ``(7) Any additional information the Maritime Administrator 
        determines appropriate.
    ``(e) Participation.--The Administrator may not require any owner, 
agent, or operator of a commercial vessel of the United States to 
participate in the survey unless that owner, agency, or operator is 
participating in a financial assistance program established under part 
C of this subtitle.
    ``(f) Release of Findings.--
            ``(1) Distribution.--Each year, the Maritime Administrator 
        may release the findings of the survey with shipyards in the 
        United States and other maritime industrial base stakeholders 
        the results of the survey conducted under this section for such 
        year in such a manner as the Administrator determines 
        appropriate.
            ``(2) Proprietary information.--Notwithstanding any other 
        provision of law, including section 552 of title 5, United 
        States Code, at the request of a survey participant, the 
        Maritime Administrator shall withhold proprietary information 
        provided as a part of a survey conducted under this section.
            ``(3) Coordination.--To the maximum extent practicable, the 
        Maritime Administrator shall seek to conduct the annual surveys 
        under this section and publish the results of such surveys on a 
        similar timeline as the timeline for the annual naval vessel 
        construction plans under section 231(a)(1) of title 10 and 
        other shipbuilding construction surveys published by other 
        Federal agencies.''.
    (b) Clerical Amendment.--The table of sections for chapter 501 of 
title 46, United States Code, is amended by inserting after the item 
relating to section 50114 the following:

``50115. Anticipated commercial vessel construction survey.''.

SEC. 507. STREAMLINED ENVIRONMENTAL REVIEW.

    Section 41001(6) of the Fixing America's Surface Transportation Act 
(42 U.S.C. 4370m(6)) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``the maritime industry'' after 
                ``waterways,'';
                    (B) by redesignating clauses (iii) and (iv) as 
                clauses (iv) and (v), respectively; and
                    (C) by inserting after clause (ii) the following:
                            ``(iii) is covered by a programmatic plan 
                        or environmental review developed for a project 
                        related to the maritime industry;''; and
            (2) by adding at the end the following:
                    ``(D) Maritime industry.--For the purposes of 
                subparagraph (A), the term `construction of 
                infrastructure' for the maritime industry includes 
                construction of--
                            ``(i) shipyards and ship repair facilities;
                            ``(ii) port terminals and other port 
                        facilities;
                            ``(iii) manufacturing facilities for 
                        equipment and technology instrumental to the 
                        facilitation of maritime trade and commerce, as 
                        defined by the Council; and
                            ``(iv) other industrial base facilities 
                        that support the Navy or the merchant marine of 
                        the United States.''.

SEC. 508. ELIGIBILITY FOR LOAN GUARANTEES.

    Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 
16513(b)) is amended by inserting at the end the following:
            ``(14) Marine transportation systems, including commercial 
        vessels of the United States, shipyards, marine terminals, and 
        port facilities.''.

SEC. 509. REPORTS.

    (a) Report on National Defense Reserve Fleet.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, and every 2 years thereafter, the 
        Maritime Administrator, in consultation with the Commander of 
        the United States Transportation Command and the Secretary of 
        the Navy, and in accordance with paragraph (2), shall submit to 
        the appropriate committees of Congress and the Maritime 
        Security Board a report--
                    (A) outlining a plan for using the shipbuilding 
                financial incentives program authorized under section 
                53801 of title 46, United States Code, as added by 
                section 501, and the financial incentive programs under 
                subpart C of subtitle V of title 46, United States 
                Code, to supplement the size and readiness of the 
                National Defense Reserve Fleet and to improve national 
                shipbuilding and shipping infrastructure; and
                    (B) describing ways in which an expanded and 
                creative view of the make-up of vessels with Voluntary 
                Intermodal Sealift Agreements or Voluntary Tanker 
                Agreements and the shipbuilding financial incentives 
                program authorized under such section can be used to 
                ensure government access to other vessels that are 
                critical to national security, such as icebreakers, oil 
                and natural gas tankers, floating dry docks, salvage 
                vessels, dredges, ocean tugs, offshore construction 
                vessels, multi-use workboats, and commercial shipping 
                vessels using small nuclear reactors.
            (2) Additional consultation.--In preparing the report under 
        paragraph (1), the Maritime Administrator shall also consult 
        with the Secretary of Commerce and the Secretary of Energy with 
        respect to shipping vessels or mobile maritime power plants 
        using small nuclear reactors.
    (b) Report on De-risking Maritime Sector.--Not later than 180 days 
after the date of enactment of this Act, and every 2 years thereafter, 
the Secretary of Defense and the Secretary of Homeland Security, in 
coordination with the Secretaries of Treasury and State, the Maritime 
Administrator, the United States Trade Representative, and the Director 
of the Office of Management and Budget, shall submit to the appropriate 
committees of Congress and the Maritime Security Board a report 
outlining a comprehensive strategy for de-risking the United States 
maritime domain from the People's Republic of China and other 
asymmetric or emerging maritime threats.
    (c) Report on Restricting Flow of Capital to CCP.--Not later than 
180 days after the date of enactment of this Act, the Secretary of 
Transportation, the Secretary of Defense, the Secretary of Commerce, 
the Secretary of State, and the Secretary of the Treasury shall submit 
to the appropriate committees of Congress and the Maritime Security 
Board a report on ways and means for restricting the flow of capital 
from the United States to Chinese Communist Party maritime industries, 
which shall include recommendations for promoting the flow of capital 
within and between the United States and treaty allies of the United 
States. The report shall also include a survey of banks, pension funds, 
and large financial institutions, with recommendations for ways the 
United States can incentivize domestic financial investments in the 
maritime industry.

SEC. 510. EXPORT CONTROL REPORT.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of State shall submit to Congress a report assessing methods 
to reduce the use of export controls and other restrictions under the 
Arms Export Control Act (22 U.S.C. 2751 et seq.) and the International 
Traffic in Arms Regulations under subchapter M of chapter I of title 
22, Code of Federal Regulations, or successor regulations, that limit 
the ability of foreign-owned marine industrial base companies to 
participate in the United States shipbuilding industry, specifically 
including shipbuilding for the Federal Government, while ensuring 
appropriate safeguards for United States-based firms and American 
workers.

               Subtitle B--Department of Defense Programs

SEC. 511. ASSESSMENT OF THE USE OF COMMERCIAL BEST PRACTICES FOR NAVY 
              SHIPBUILDING.

    (a) Assessment.--
            (1) In general.--The Secretary of the Navy, in coordination 
        with the Secretary of Transportation and the Secretary of the 
        Department in which the Coast Guard is operating, shall--
                    (A) conduct an assessment of best practices used in 
                the construction and repair of commercial, oceangoing 
                maritime vessels; and
                    (B) identify--
                            (i) opportunities for the Navy and Coast 
                        Guard to leverage those best practices to make 
                        ship construction and repair efforts of 
                        combatant and non-combatant vessels more 
                        efficient; and
                            (ii) advanced technologies that can be 
                        leveraged to improve the overall readiness and 
                        dominance of the United States maritime fleet 
                        (both commercial and military), to specifically 
                        include small modular reactors for ship power 
                        and propulsion.
            (2) Elements.--The assessment required by paragraph (1) 
        shall include the following:
                    (A) An evaluation of the best practices described 
                in subparagraph (A) of such paragraph, including best 
                practices used by commercial shipyards in foreign 
                allied countries, consideration of commercial design 
                standards, and the vessel construction manager model 
                used to construct the National Security Multi Mission 
                Vessel Program, that could improve the efficiency of 
                shipbuilding and repair by the Navy and Coast Guard.
                    (B) An identification of commercial-grade 
                components and capabilities being used in state-of-the-
                art commercial, oceangoing maritime vessels and an 
                assessment of whether the Navy and Coast Guard could 
                better use commercial off-the-shelf components or 
                capabilities to reduce costs, improve efficiencies, or 
                enhance capabilities in the construction of new naval 
                vessels and cutters, and in repair of naval vessels and 
                cutters.
                    (C) A determination as to whether shipbuilding and 
                acquisition programs of the Navy and Coast Guard use 
                modern best practices from the commercial maritime 
                industry in terms of contracting, ship design, 
                construction, overhaul, and maintenance.
                    (D) An identification of technologies and 
                procedures that are used in commercial shipbuilding 
                that, if used by the Navy and Coast Guard, would 
                improve the efficiency of designing and constructing 
                new naval vessels.
                    (E) An identification of technologies and 
                procedures that are used in commercial shipbuilding and 
                repair that, if used by the Navy and Coast Guard, would 
                improve the efficiency of repairing naval vessels.
                    (F) An identification of opportunities to improve 
                commonality in ship design, ship components, and 
                shipbuilding procedures between commercial, oceangoing 
                maritime vessels, naval vessels, and cutters that could 
                lead to improved efficiencies and a more resilient 
                industrial base to support shipbuilding and repair for 
                military and civil maritime vessels.
                    (G) An identification of advanced nuclear 
                technologies that are under development for use in 
                commercial shipbuilding that, if used by the Navy and 
                Coast Guard, would improve the operational capability 
                of naval vessels and cutters.
                    (H) An identification of the barriers preventing or 
                making prohibitive the use of small modular reactors in 
                naval or commercial, oceangoing maritime vessels, 
                including--
                            (i) ambiguity in regulations governing 
                        nuclear propulsion restricting the commercial 
                        maritime industry from utilizing nuclear 
                        propulsion or collaborating between United 
                        States and foreign entities under export 
                        controls requirements, including section 744.5 
                        of title 15, Code of Federal Regulations (or a 
                        similar successor regulation); and
                            (ii) a lack of clarity in the meaning of 
                        ``maritime (civil) nuclear propulsion plant 
                        projects'' contained in the Export 
                        Administration Regulations and ``Naval Nuclear 
                        Propulsion'' contained in the International 
                        Traffic in Arms Regulations (Cat VI).
                    (I) An evaluation of education and technology 
                development best practices used by commercial shipyards 
                in foreign allied countries, and an identification of 
                education and technology development opportunities, 
                that could improve the efficiency of shipbuilding and 
                repair by the Navy and Coast Guard.
                    (J) An evaluation of whether adoption of the best 
                practices evaluated under subparagraph (A) for the 
                construction and repair of naval vessels and cutters 
                would support the domestic commercial maritime 
                shipbuilding industry, the commercial maritime 
                industrial base, and the merchant marine of the United 
                States.
    (b) Briefing.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Navy shall provide to the 
congressional defense committees a briefing on--
            (1) the results of the assessment required by subsection 
        (a); and
            (2) a plan to execute any measures pursuant to such 
        assessment.
    (c) Strategy Required.--Not later than 1 year after the date of 
enactment of this Act, and biennially thereafter, the Secretary of the 
Navy and Secretary of the Department in which the Coast Guard is 
operating shall--
            (1) provide to the appropriate committees of Congress 
        strategies describing how measures identified as a result of 
        the assessment required by subsection (a) will be incorporated 
        into shipbuilding programs for the Navy and Coast Guard; and
            (2) publish a public version of the strategies.
    (d) Congressional Defense Committees Defined.--In this section, the 
term ``congressional defense committees'' has the meaning given that 
term in section 101(a) of title 10, United States Code.

SEC. 512. PLAN OF ACTION FOR USE OF DEFENSE PRODUCTION ACT OF 1950 
              AUTHORITIES.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the appropriate 
committees of Congress a report on a plan of action for any use of 
authorities available under title III of the Defense Production Act of 
1950 (50 U.S.C. 4531 et seq.)--
            (1) to establish or enhance a domestic production 
        capability for the construction of militarily useful, 
        commercial maritime vessels that can be operated in foreign 
        commerce or the domestic commerce of the United States;
            (2) to establish, improve, or enhance the defense shipyard 
        industrial base; or
            (3) to establish, improve, or enhance maritime port 
        infrastructure of the United States, including containers and 
        ship-to-shore cranes that were built in the United States and 
        are owned by citizens of the United States.
    (b) Coordination.--The President shall develop the plan of action 
required by subsection (a) in consultation with--
            (1) the maritime security advisor (as established by this 
        Act);
            (2) the Maritime Security Board (as established by this 
        Act);
            (3) an advisory committee established under section 708(d) 
        of the Defense Production Act of 1950 (50 U.S.C. 4558(d)); and
            (4) such stakeholders in the private sector as the 
        President considers appropriate.
    (c) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committee on Armed Services, the Committee on 
        Commerce, Science, and Transportation, and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Armed Services, the Committee on 
        Transportation and Infrastructure, and the Committee on 
        Appropriations of the House of Representatives.

SEC. 513. STRATEGY ON DEVELOPMENT OF NAVAL REARM-AT-SEA CAPABILITY.

    (a) Strategy Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of the Navy shall 
        submit to the congressional defense committees a strategy for 
        delivering a rearm-at-sea capability to the surface fleet of 
        the Navy.
            (2) Elements.--Such strategy required under paragraph (1) 
        shall include each of the following:
                    (A) A plan to develop, by not later than 3 years 
                after the date of the enactment of this Act, the 
                capability to employ transportable rearming mechanism 
                equipment to load missile canisters into MK 41 vertical 
                launch system cells on Navy destroyers, including--
                            (i) an identification of the current and 
                        planned investments of the Navy in technology 
                        development to achieve such capability; and
                            (ii) the anticipated cost and schedule for 
                        such investments.
                    (B) A plan for the key milestone events and 
                associated dates in the development of such capability.
                    (C) A plan to coordinate with allies of the United 
                States that use variants of the MK 41 vertical launch 
                system manufactured by the United States to jointly 
                procure rearm-at-sea capabilities.
                    (D) An identification of any courses of action the 
                Secretary of the Navy is considering other than the 
                plans referred to in subparagraphs (A) through (C) to 
                address the gap between the rearm-at-sea capabilities 
                of the United States and the capabilities of other 
                countries, including the use of uncrewed technologies, 
                and other commercial off-the-shelf components or 
                capabilities.
                    (E) Such other matters as the Secretary determines 
                appropriate.
    (b) Briefing.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of the Navy shall provide to the 
congressional defense committees a written briefing on the development 
of the strategy required under subsection (a).

SEC. 514. MILITARY SEALIFT COMMAND.

    (a) Authority to Offer Increased Paid Leave Accrual.--The Secretary 
of the Navy is authorized to offer government merchant mariners 
employed by Military Sealift Command paid leave accrual at a faster 
rate than provided pursuant to the standard General Schedule (GS) 
system to make government seafaring jobs more competitive with the 
commercial sector.
    (b) Report on Recruiting and Retention Efforts.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        Secretary of the Navy, in coordination with the Commander of 
        the Military Sealift Command and the Maritime Security Board, 
        and in consultation with the Commander of United States 
        Transportation Command, the Commander of United States Fleet 
        Forces Command, and the Assistant Secretary of the Navy for 
        Research, Development and Acquisition, shall submit to the 
        appropriate committees of Congress a report on efforts to 
        improve recruitment and retention of Military Sealift Command 
        Mariners.
            (2) Elements.--The report required under paragraph (1) 
        shall consider--
                    (A) opportunities to enhance the integration of 
                Military Sealift Commander civilian mariners into the 
                military command structure;
                    (B) providing training on the roles and 
                significance of Military Sealift Command civilian 
                mariner workforce to relevant military commands; and
                    (C) authorities required to improve recruitment and 
                retention of civilian mariners in Military Sealift 
                Command.
    (c) Report on Extending Charter Durations.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of the Navy 
shall submit to the appropriate committees of Congress a report 
assessing the merits of extending the maximum charter durations of 
commercial and specialty vessels for the Military Sealift Command.

         Subtitle C--Shipbuilding Innovation and Infrastructure

SEC. 521. UNITED STATES CENTER FOR MARITIME INNOVATION.

    (a) In General.--Section 50307(e) of title 46, United States Code, 
is amended--
            (1) in paragraph (1), by inserting ``through the 
        establishment, management, and coordination of geographically 
        and topically diverse maritime incubators'' after ``maritime 
        transportation system''; and
            (2) by striking paragraphs (2), (3), and (4), and inserting 
        the following:
            ``(2) Cooperative agreement.--The cooperative agreement 
        shall be with an organization or persons with substantial 
        experience in the maritime industry, as determined by the 
        Secretary, in consultation with the Maritime Security Board.
            ``(3) Selection.--The Center shall be--
                    ``(A) selected through a competitive process of 
                eligible entities, and if a private entity, a domestic 
                entity;
                    ``(B) based in the United States with technical 
                expertise in emerging marine technologies and practices 
                related to the maritime transportation system; and
                    ``(C) located in close proximity to eligible 
                entities with expertise in United States emerging 
                maritime technologies and practices.
            ``(4) Coordination.--The Secretary of Transportation shall 
        coordinate with the Maritime Security Board and other agencies 
        critical for science, research, and regulation of emerging 
        marine technologies for the maritime sector, including the 
        Department of Defense, the Department of Energy, the 
        Environmental Protection Agency, the National Science 
        Foundation, the Coast Guard, the National Oceanic and 
        Atmospheric Association, and the Marine Board of the National 
        Academies when establishing the Center.
            ``(5) Responsibilities.--The Center shall carry out the 
        following activities:
                    ``(A) Establish and support maritime incubators in 
                accordance with paragraph (6).
                    ``(B) Accelerate the adoption or integration of 
                commercial technologies within the maritime industry to 
                transform the capacity and capabilities of the merchant 
                marine of the United States.
                    ``(C) Serve as the principal liaison between the 
                Maritime Security Board and maritime incubators.
                    ``(D) Carry out programs, projects, and other 
                activities to strengthen the merchant marine of the 
                United States and the maritime industrial base.
                    ``(E) Coordinate and harmonize the activities of 
                other organizations and elements of the maritime 
                industry on matters relating to commercial 
                technologies, dual use technologies, and the innovation 
                of such technologies.
                    ``(F) Coordinate and advise efforts among elements 
                of the maritime industry on matters relating to the 
                development, procurement, and fielding of 
                nontraditional capabilities and connect entities 
                developing those capabilities with the relevant 
                incubators.
                    ``(G) Coordinate with maritime industry 
                stakeholders to identify operational challenges that 
                have the potential to be addressed through the use of 
                nontraditional capabilities, including dual-use 
                technologies that are being developed and financed in 
                the commercial sector.
                    ``(H) Coordinate with maritime industry 
                stakeholders and relevant Federal agencies to enhance 
                the capacity and performance of seaports of the United 
                States, including through hardening security, enhancing 
                preparedness, and developing United States-based supply 
                chains for port technologies and equipment.
                    ``(I) Coordinate with other research and 
                development programs and centers focused on modes of 
                transportation besides maritime to develop intermodal 
                interoperability with the maritime industry.
                    ``(J) Develop a standard design for commercial 
                vessels and components and features of commercial 
                vessels to be manufactured in the United States, using 
                mature, proven designs, which--
                            ``(i) includes, to the maximum extent 
                        practicable, included parts, components, and 
                        material manufactured in and sourced from the 
                        United States;
                            ``(ii) does not include any parts, 
                        components, or materials manufactured by 
                        foreign entities of concern or which are 
                        produced in foreign countries of concern (as 
                        such terms are defined in section 4 of the 
                        SHIPS for America Act of 2024); and
                            ``(iii) includes priorities for design 
                        identified in consultation with the Secretary 
                        of the Navy, as necessary for strategic 
                        sealift, informed by requirements to sustain a 
                        wartime economy and military operations.
                    ``(K) Lead engagement with industry, academia, 
                labor organizations, and other nongovernmental entities 
                to develop--
                            ``(i) innovative, commercial, and dual-use 
                        manufacturing technologies and processes to 
                        construct, rehabilitate, or repair maritime 
                        vessels of the Armed Forces or the merchant 
                        marine of the United States;
                            ``(ii) additional naval architecture 
                        programs at institutions of higher education in 
                        the United States and to expand existing naval 
                        architecture programs;
                            ``(iii) next-generation propulsion 
                        technologies for the merchant marine of the 
                        United States, to include small modular 
                        reactors, low-emission propulsion technologies, 
                        and other renewable energy solutions;
                            ``(iv) new and innovative hardware, 
                        software, and systems for remote or autonomous 
                        operations at ports, intermodal facilities, or 
                        aboard oceangoing vessels;
                            ``(v) technology and infrastructure 
                        solutions that enhance the safe operation of 
                        oceangoing vessels to protect lives, property, 
                        and the environment;
                            ``(vi) solutions to recruit, train, and 
                        retain a skilled workforce capable of 
                        supporting a vibrant and growing United States 
                        maritime industry; and
                            ``(vii) the capacity of international 
                        allies and partners of the United States, with 
                        respect to manufacturing technologies and 
                        processes, to construct, rehabilitate, or 
                        repair maritime vessels.
                    ``(L) Work with academic and private sector 
                response training centers and Centers of Excellence for 
                Domestic Maritime Workforce Training and Education to 
                develop maritime strategies applicable to various 
                segments of the United States maritime industry, 
                including the inland, deep water, and coastal fleets.
                    ``(M) Establish programs and initiatives to share--
                            ``(i) shipbuilding best practices and 
                        maritime technology between vessels of the 
                        Department of Defense and commercial vessels of 
                        the United States; and
                            ``(ii) port technology and logistics best 
                        practices between the Department of Defense and 
                        commercial port operators and port authorities 
                        within the United States.
                    ``(N) Carry out such other activities as the 
                Maritime Security Board determines appropriate.
            ``(6) Establishment of maritime incubators.--
                    ``(A) Establishment.--The Center shall, in 
                consultation with the Maritime Security Board, seek 
                out, identify, and support the development of and 
                experimentation with commercial technologies that have 
                the potential to be implemented within the maritime 
                industry, through the establishment of a series of 
                maritime incubators.
                    ``(B) Reflection.--Each incubator shall reflect the 
                unique nature of the region's capabilities and academic 
                and investor base.
                    ``(C) Selection.--Incubators shall be--
                            ``(i) selected through a competitive 
                        process of eligible entities, and if a private 
                        entity, a domestic entity;
                            ``(ii) based in the United States with 
                        technical expertise in emerging marine 
                        technologies and practices related to the 
                        maritime transportation system;
                            ``(iii) based within a United States 
                        maritime security investment zone as defined in 
                        section 1400Z-3 of the Internal Revenue Code of 
                        1986 (as added by section 708 of this Act); and
                            ``(iv) topic-specific, according to 
                        regional maritime expertise in United States 
                        emerging maritime technologies and practices, 
                        to include designated incubators focused on--
                                    ``(I) clean energy and alternative 
                                fuels;
                                    ``(II) ports and shoreside 
                                infrastructure;
                                    ``(III) vessel design and naval 
                                architecture;
                                    ``(IV) shipbuilding and next 
                                generation manufacturing; and
                                    ``(V) other areas for maritime 
                                innovation and technology, as 
                                determined by the Center in 
                                coordination with the Maritime Security 
                                Board.
                    ``(D) Incubator responsibilities.--Each maritime 
                incubator shall--
                            ``(i) serve as the principal liaison 
                        between the Center and individuals and entities 
                        that can contribute to innovation within the 
                        maritime industry, including other maritime 
                        incubators under this subsection, 
                        entrepreneurs, startups, commercial technology 
                        companies, and venture capital sources; and
                            ``(ii) establish and support multi-
                        stakeholder research and innovation 
                        partnerships, as described in subparagraph (G).
                    ``(E) Report.--Each incubator shall submit 
                quarterly activity and status reports to the Center.
                    ``(F) Review and termination.--
                            ``(i) In general.--The Maritime 
                        Administrator may, in consultation with the 
                        Maritime Security Board, terminate an agreement 
                        with an eligible entity selected to lead a 
                        maritime incubator if the Administrator 
                        certifies that the eligible entity is failing 
                        to meet the requirements of this section.
                            ``(ii) Reselection.--If the Administrator 
                        terminates an agreement with an eligible entity 
                        to lead a maritime incubator, the Center shall 
                        initiate a new selection process as required 
                        under subparagraph (C) to select a new eligible 
                        entity.
                            ``(iii) Review of eligible entities.--Not 
                        later than 5 years after the establishment of 
                        maritime incubators under this paragraph, and 
                        every 5 years thereafter, the Administrator, in 
                        coordination with the Maritime Security Board, 
                        shall conduct a review of all eligible entities 
                        selected to lead a maritime incubator and 
                        confirm the entity is adequately fulfilling the 
                        requirements of this section.
                    ``(G) Multi-stakeholder partnerships.--
                            ``(i) In general.--The maritime incubators 
                        established under this subsection shall 
                        establish and support multi-stakeholder 
                        research and innovation partnerships that--
                                    ``(I) have the potential to 
                                generate technologies, processes, 
                                products, or other solutions that 
                                support the United States maritime 
                                industry;
                                    ``(II) have as an objective the 
                                technology transfer or 
                                commercialization of the work product 
                                generated by the partnership, which may 
                                include work product that incorporates 
                                intellectual property developed by the 
                                Federal Government and licensed to the 
                                partnership in accordance with clause 
                                (iii); and
                                    ``(III) incentivize and expand 
                                geographically diverse participation in 
                                graduate and undergraduate institutions 
                                of higher education, community college, 
                                and other workforce programs relevant 
                                to the maritime industry.
                            ``(ii) Support provided.--Support provided 
                        by the maritime incubator to a multi-
                        stakeholder research and innovation partnership 
                        under this subsection may include--
                                    ``(I) providing funding or other 
                                resources to the partnership;
                                    ``(II) participating in the 
                                partnership;
                                    ``(III) providing technical and 
                                technological advice and guidance to 
                                the partnership;
                                    ``(IV) suggesting and introducing 
                                other participants for inclusion in the 
                                partnership;
                                    ``(V) providing the partnership 
                                with insight into desired solutions for 
                                defense and security needs;
                                    ``(VI) providing access to Ready 
                                Reserve ships for testing new 
                                technologies and conducting research, 
                                as the maritime incubator determines 
                                appropriate, in coordination with the 
                                Center and the Administrator; and
                                    ``(VII) such other forms of support 
                                as the Center, in consultation with 
                                maritime incubators and Maritime 
                                Security Board, determines appropriate.
                            ``(iii) Availability of intellectual 
                        property.--To the extent the Center determines 
                        appropriate, the Center, in coordination with 
                        the maritime incubators, shall seek to actively 
                        inform potential participants in multi-
                        stakeholder research and innovation 
                        partnerships of the availability of 
                        intellectual property developed by the Federal 
                        Government that may be licensed to the 
                        partnership.
            ``(7) Report.--Not later than 180 days after the date of 
        enactment of the SHIPS for America Act of 2024, and annually 
        thereafter, the Center shall submit to the Maritime Security 
        Board and the appropriate congressional committees a report on 
        the activities, advances, outcomes, and work product of the 
        maritime incubators and the multi-stakeholder research and 
        innovation partnerships supported under this subsection.
            ``(8) Authorization of appropriations.--In addition to the 
        funding contributed under subsection (a)(4), there is 
        authorized to be appropriated, out of the Maritime Security 
        Trust Fund established under section 9512 of the Internal 
        Revenue Code of 1986, $50,000,000 for each of fiscal years 2025 
        through 2034.
            ``(9) Definitions.--In this subsection:
                    ``(A) Multi-stakeholder research and innovation 
                partnership.--The term `multi-stakeholder research and 
                innovation partnership' means a partnership composed of 
                any combination of 2 or more of the following:
                            ``(i) Institutions of higher education (as 
                        defined in section 102 of the Higher Education 
                        Act of 1965 (20 U.S.C. 1002)) with research and 
                        innovation capability.
                            ``(ii) Nonprofit organizations that provide 
                        policy, research, outreach, operations, 
                        organizational, management, testing, 
                        evaluation, technology transfer, legal, 
                        financial, or advocacy expertise.
                            ``(iii) For-profit commercial enterprises 
                        that may be publicly or privately owned, early 
                        stage or mature, and incorporated or operating 
                        by another ownership structure.
                            ``(iv) Centers of excellence for domestic 
                        maritime workforce training and education 
                        (established under section 51706).
                            ``(v) Maritime labor organizations.
                            ``(vi) Departments or agencies of the 
                        Federal Government with expertise, operations, 
                        or resources related to the objectives of the 
                        multi-stakeholder research and innovation 
                        partnership.
                            ``(vii) State maritime academies (as 
                        defined in section 51102(4)).
                            ``(viii) The United States Merchant Marine 
                        Academy.
                            ``(ix) National research laboratories with 
                        expertise, operations, or resources related to 
                        the objectives of the partnership.
                    ``(B) Nontraditional capability.--The term 
                `nontraditional capability' means a solution to an 
                operational challenge that can significantly leverage 
                commercial innovation or external capital with minimal 
                dependencies on fielded systems.
                    ``(C) Maritime industry.--The term `maritime 
                industry' includes--
                            ``(i) shipbuilders and ship repair 
                        facilities;
                            ``(ii) ship owners;
                            ``(iii) port operators;
                            ``(iv) personnel of the merchant marine of 
                        the United States;
                            ``(v) manufacturers of equipment and 
                        technology instrumental to the facilitation of 
                        maritime trade and commerce; and
                            ``(vi) other members of the industrial base 
                        that support the Navy or the merchant marine of 
                        the United States.''.
    (b) Transition.--A Center for Maritime Innovation established by 
the Secretary of Transportation through a cooperative agreement 
pursuant to section 50307 of title 46, United States Code, as of the 
day before the date of enactment of this Act shall--
            (1) be deemed to be the United States Center for Maritime 
        Innovation under section 50307 of title 46, United States Code, 
        as of the date of enactment of this Act, with all the 
        authorities granted by such section; and
            (2) coordinate activities of the Center with the Maritime 
        Security Board pursuant to subsection (e)(4) of such section, 
        as amended by this Act.

SEC. 522. NATIONAL SHIPBUILDING RESEARCH PROGRAM.

    Section 50105(c) of title 46, United States Code, is amended to 
read as follows:
    ``(c) National Shipbuilding Research Program.--
            ``(1) In general.--The Maritime Administrator shall 
        establish and carry out, in coordination with Naval Sea Systems 
        Command, the National Shipbuilding Research Program.
            ``(2) Purposes.--The purpose of the National Shipbuilding 
        Research Program shall be to develop plans for the economical 
        construction of vessels and their propelling machinery, of most 
        modern economical types, giving thorough consideration to all 
        well-recognized means of propulsion and taking into account the 
        benefits from standardized production where practicable and 
        desirable.
            ``(3) Activities.--The National Shipbuilding Research 
        Program shall--
                    ``(A) support technology transfers and industry 
                networking;
                    ``(B) select and execute research and development 
                projects, which may include--
                            ``(i) advancing best practices in 
                        shipbuilding and ship repair, including 
                        alternative project management and project 
                        financing arrangements for shipyards, such as 
                        public-private financing;
                            ``(ii) improving efficiency across the 
                        shipyard industrial base of the United States; 
                        and
                            ``(iii) developing, maturing, and 
                        implementing industry-relevant shipbuilding and 
                        sustainment technologies;
                    ``(C) carry out ad hoc initiatives focused on 
                specific target areas in shipbuilding and ship repair; 
                and
                    ``(D) carry out additional activities as determined 
                by the Maritime Administrator or the Secretary of 
                Defense.''.

SEC. 523. ASSESSMENT ON MARINE INFRASTRUCTURE READINESS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Maritime Administrator shall submit to 
Congress a report on the status and resources and authorities needed to 
execute and complete necessary vessels, harborcraft, port, shipyard, 
and other infrastructure improvements to ensure the national security 
interests of the United States and support the domestic and foreign 
commerce of the United States.
    (b) Contents.--The report under subsection (a) shall include--
            (1) consideration of existing literature and reporting from 
        Federal and non-Federal sources;
            (2) an assessment of the number of commercial shipping 
        vessels by class required to sustain a peace-time and wartime 
        national economy;
            (3) an assessment of opportunities to leverage private 
        sector funding to enhance the capability of marine 
        infrastructure of the United States;
            (4) an evaluation of future infrastructure needs to support 
        alternative fuels for vessels and harborcraft;
            (5) an assessment of an ability to construct and repair 
        seaports and shipyards during national security emergencies, 
        including readiness to construct temporary facilities, and 
        carry out marine salvage and firefighting operations; and
            (6) an evaluation of the possible effects on the commercial 
        operations of United States ports and other critical 
        infrastructure of prohibiting any entity that owns or operates 
        a port or terminal in the United States from using or sharing 
        data with--
                    (A) LOGINK;
                    (B) any logistics platform controlled by, 
                affiliated with, or subject to the jurisdiction of the 
                Chinese Communist Party or the Government of the 
                People's Republic of China; or
                    (C) any logistics platform that shares data with a 
                system described in subparagraph (A) or (B).
    (c) Definitions.--
            (1) Critical infrastructure.--The term ``critical 
        infrastructure'' has the meaning given the term in section 
        721(a) of the Defense Production Act of 1950 (50 U.S.C. 
        4565(a)).
            (2) LOGNIK.--The term ``LOGINK'' means the public, open, 
        shared logistics information network known as the National 
        Public Information Platform for Transportation and Logistics by 
        the Ministry of Transport of the People's Republic of China.

                    TITLE VI--WORKFORCE DEVELOPMENT

                    Subtitle A--Workforce Incentives

SEC. 601. PUBLIC SERVICE LOAN FORGIVENESS FOR MERCHANT MARINES.

    Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(m)) is amended--
            (1) in paragraph (3)(B)(i), by inserting ``the United 
        States Merchant Marine (as described in paragraph (5)), a 
        United States shipyard,'' after ``law enforcement,''; and
            (2) by adding at the end the following:
            ``(5) Full-time job in united states merchant marine.--For 
        purposes of loan cancellation under this subsection, a full-
        time job in the United States Merchant Marine shall mean 
        possession of a Merchant Mariner Credential authorized by the 
        Coast Guard and employment on board a vessel of the United 
        States for not less than 150 days in a calendar year.''.

SEC. 602. ELIGIBILITY FOR EDUCATIONAL ASSISTANCE.

    (a) In General.--Chapter 521 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 52102. Eligibility for educational assistance
    ``(a) Eligibility.--A covered individual shall be treated as an 
individual described in section 3311(b)(1) of title 38, United States 
Code, for purposes of entitlement to educational assistance under 
chapter 33 of such title.
    ``(b) Covered Individual.--
            ``(1) In general.--In this section, the term `covered 
        individual' means an individual who--
                    ``(A) served as a full-time, credentialed United 
                States Merchant Mariner for not less than 10 years;
                    ``(B) as a result of such service received the 
                Merchant Marine Expeditionary Medal or another award 
                for service in a designated combat zone after the date 
                of enactment of this section; and
                    ``(C) is not eligible under any other provision of 
                law for benefits under laws administered by the 
                Secretary of Veterans Affairs.
            ``(2) Full-time, credentialed united states merchant 
        mariner.--For purposes of paragraph (1), serving as a `full-
        time, credentialed United States Merchant Mariner' means 
        possession of a Merchant Mariner Credential authorized by the 
        Coast Guard and employment on board a vessel of the United 
        States for not less than 150 days in a calendar year.
    ``(c) Reimbursement.--There is authorized to be appropriated to the 
Secretary of Veterans Affairs such sums as may be necessary to carry 
out this section from the Maritime Security Trust Fund established 
under section 9512 of chapter 98 of the Internal Revenue Code of 
1986.''.
    (b) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, is amended by adding at the end the 
following:

``52102. Eligibility for educational assistance.''.

SEC. 603. ELIGIBILITY OF MARINERS TO ATTEND NAVAL POSTGRADUATE SCHOOL.

    (a) In General.--Section 8545 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(3) The Secretary may permit an officer or unlicensed 
        mariner of the United States Merchant Marine to receive 
        instruction at the Naval Postgraduate School.'';
            (2) in subsection (b)(1), by adding at the end the 
        following new sentence: ``The Secretary of Transportation shall 
        bear the cost of the instruction received by officers and 
        unlicensed mariners of the United States Merchant Marine 
        detailed for that instruction.''; and
            (3) in subsection (c), by inserting ``, and officers and 
        unlicensed mariners of the United States Merchant Marine,'' 
        after ``Coast Guard''.
    (b) Report Required.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Transportation, in consultation 
with the Secretary of Defense, shall submit to Congress a report 
assessing what matters relating to military training it would be 
beneficial for mariners to study at the Naval Postgraduate School.

SEC. 604. REIMBURSEMENT OF QUALIFYING SPOUSE RELICENSING COSTS AND 
              BUSINESS COSTS.

    (a) In General.--Chapter 521 of title 46, United States Code, as 
amended by section 602, is further amended by adding at the end the 
following:
``Sec. 52103. Reimbursement of qualifying spouse relicensing costs and 
              business costs
    ``(a) In General.--The Secretary of Transportation shall establish 
a program to reimburse an individual serving in the merchant marine of 
the United States for qualified relicensing costs and qualified 
business costs of the spouse of that individual when the individual 
relocates to a new jurisdiction or geographic area as the result of a 
reassignment as a result of service as a commissioned officer in the 
Navy Reserve (including the Strategic Sealift Officer Program, Navy 
Reserve), the Coast Guard Reserve, or any other reserve component of 
the Armed Services of the United States.
    ``(b) Limitations.--
            ``(1) Relicensing.--Reimbursement provided to a member 
        under this subsection for qualified relicensing costs may not 
        exceed $1,000 in connection with each relocation described in 
        paragraph (1).
            ``(2) Business costs.--Reimbursement provided to a member 
        under this subsection for qualified business costs may not 
        exceed $1,000 in connection with each relocation described in 
        paragraph (1).
            ``(3) Deadline.--No reimbursement may be provided under 
        this subsection for qualified relicensing costs or qualified 
        business costs paid or incurred after December 31, 2034.
    ``(c) Qualified Relicensing Costs.--In this section, the term 
`qualified relicensing costs' means costs, including exam, continuing 
education courses, business license, permit, and registration fees, 
incurred by the spouse of an individual serving in the merchant marine 
of the United States if--
            ``(1) the spouse was licensed or certified in a profession, 
        or owned a business, during the individual's previous 
        assignment and requires a new professional license or 
        certification, or business license or permit, to engage in that 
        profession in a new jurisdiction because of the individual's 
        relocation described in paragraph (1); and
            ``(2) the costs were incurred or paid to secure or maintain 
        the professional license or certification, or business license 
        or permit, from the new jurisdiction in connection with such 
        relocation.
    ``(d) Qualified Business Costs.--In this section, the term 
`qualified business costs' means costs, including moving services for 
equipment, equipment removal, new equipment purchases, information 
technology expenses, and inspection fees, incurred by the spouse of an 
individual serving in the merchant marine of the United States if--
            ``(1) the spouse owned a business during the individual's 
        previous assignment and the costs result from the individual's 
        relocation described in paragraph (1); and
            ``(2) the costs were incurred or paid to move such business 
        to a new location in connection with such relocation.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $500,000 for each of fiscal years 2025 through 2034.''.
    (b) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, as amended by section 602, is further 
amended by adding at the end the following:

``52103. Reimbursement of qualifying spouse relicensing costs and 
                            business costs.''.

SEC. 605. NONCOMPETITIVE ELIGIBILITY FOR FEDERAL EMPLOYMENT.

    (a) Amendment.--Chapter 521 of title 46, United States Code, as 
amended by sections 602 and 604, is amended by adding at the end the 
following:
``Sec. 52104. Noncompetitive eligibility for Federal employment
    ``(a) Definition of Agency.--In this section, the term `agency'--
            ``(1) has the meaning given the term `Executive agency' in 
        section 105 of title 5, United States Code;
            ``(2) includes the United States Postal Service and the 
        Postal Regulatory Commission; and
            ``(3) does not include the Government Accountability 
        Office.
    ``(b) Appointment Authority.--The head of an agency may appoint 
noncompetitively--
            ``(1) a graduate of the United States Merchant Marine 
        Academy who has met all of the requirements of their cadet 
        commitment agreement under section 51306 of title 46, United 
        States Code; or
            ``(2) a credentialed United States Merchant Mariner with an 
        officer or rating endorsement who has completed not less than 7 
        years of service aboard a vessel of the United States.''.
    (b) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, as amended by sections 602 and 604, is 
amended by adding at the end the following:

``52104. Noncompetitive eligibility for Federal employment.''.

SEC. 606. UNITED STATES MERCHANT MARINE CAREER RETENTION PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) it takes years of training and experience, and costly 
        license trainings, to earn mariner qualifications;
            (2) with just around 12,000 merchant mariners of the United 
        States operating oceangoing vessels, compared with China's more 
        than 1,700,000 seafarers, the United States may not have a 
        sufficient number of mariners to fully power the strategic 
        sealift vessels necessary in a future prolonged conflict;
            (3) the United States requires a qualified workforce of 
        sufficient size that is ready and available to crew vessels of 
        the United States for national defense or national emergency; 
        and
            (4) a workforce committed to take all measures possible to 
        expand, develop, and protect the domestic maritime workforce 
        should--
                    (A) support a retention program to permit 
                credentialed merchant mariners to maintain recency 
                through a coordinated Federal program, in coordination 
                with maritime labor organizations; and
                    (B) implement civil service, workplace, and hiring 
                protections.
    (b) Amendment.--Chapter 521 of title 46, United States Code, as 
amended by sections 602, 604, and 605, is further amended by adding at 
the end the following:
``Sec. 52105. United States Merchant Marine Career Retention Program
    ``(a) Establishment.--The Maritime Administrator shall establish a 
program, to be known as the `United States Merchant Marine Career 
Retention Program', to ensure that a qualified workforce of sufficient 
size is ready to crew strategic sealift vessels in the event of a 
national defense or national emergency activation. Through the United 
States Merchant Marine Career Retention Program, the Maritime 
Administrator shall establish and administer mechanisms to register 
merchant mariners and mariner employers to participate in the Program.
    ``(b) Implementation.--The Maritime Administrator shall--
            ``(1) appoint a board of directors to oversee the United 
        States Merchant Marine Career Retention Program;
            ``(2) appoint and facilitate a working group to recommend 
        policies, procedures, and a prioritization matrix for the 
        United States Merchant Marine Career Retention Program, which 
        shall be composed of representatives from major stakeholders, 
        including maritime labor organizations, credentialed United 
        States Merchant Mariners, vessel owners, vessel operators, the 
        United States Merchant Marine Academy, State maritime 
        academies, United States Military Sealift Command, and other 
        likely employers of members of the United States Merchant 
        Marine Career Retention Program; and
            ``(3) submit to Congress an annual evaluation of the United 
        States Merchant Marine Career Retention Program.
    ``(c) Membership in United States Merchant Marine Career Retention 
Program.--
            ``(1) In general.--There shall be 2 paths to enrollment in 
        the United States Merchant Marine Career Retention Program as 
        described in paragraphs (2) and (3).
            ``(2) Members who work ashore who hold mariner 
        qualifications.--
                    ``(A) Opportunities.--The United States Merchant 
                Marine Career Retention Program shall provide 
                individuals who hold Coast Guard issued mariner 
                qualifications who work ashore with an opportunity to 
                maintain, or potentially upgrade, their mariner 
                qualifications and credentials by--
                            ``(i) providing qualified service at sea on 
                        vessels of the United States; and
                            ``(ii) participating in compulsory 
                        training.
                    ``(B) Structure.--The United States Merchant Marine 
                Career Retention Program shall be open for enrollment 
                to both licensed and unlicensed mariners and provide 
                members with an 8-3-1 schedule as follows:
                            ``(i) 8 months shoreside employment.
                            ``(ii) 3 months sailing employment designed 
                        to ensure that members meet the minimum sea-
                        time requirement to maintain the credentials 
                        required by the Standards of Training, 
                        Certification, and Watchkeeping certification, 
                        or, depending on mariner and employer 
                        requirements, more frequent, but shorter-
                        duration sailing assignments.
                            ``(iii) 1 month vacation, which is in 
                        addition to vacation provided by the shoreside 
                        employer.
                    ``(C) Ashore employers.--
                            ``(i) Employer obligations.--The employer 
                        of a member of the United States Merchant 
                        Marine Career Retention Program described under 
                        this paragraph shall grant the member--
                                    ``(I) an unpaid leave of absence 
                                for the duration of the member's 
                                training, sailing, and vacation with 
                                the United States Merchant Marine 
                                Career Retention Program; and
                                    ``(II) the same or an equivalent 
                                position with the employer when the 
                                member returns from training, sailing, 
                                or vacation with the United States 
                                Merchant Marine Career Retention 
                                Program.
                    ``(D) Sea day assignments.--The United States 
                Merchant Marine Career Retention Program shall, with 
                respect to members described under this paragraph--
                            ``(i) maintain records of each member's 
                        qualifications, sea time, and availability, and 
                        prioritize assignments on these and other 
                        factors with the goal of maximizing the United 
                        States Merchant Marine Career Retention Program 
                        readiness to support strategic sealift;
                            ``(ii) maintain a `job call' program office 
                        that coordinates how jobs become available for 
                        members from State maritime academies, vessel 
                        operating companies, maritime labor 
                        organizations, United States Military Sealift 
                        Command, and other organizations responsible 
                        for crewing vessels of the United States of 
                        qualifying tonnage or horsepower;
                            ``(iii) establish partnerships with State 
                        maritime academies and the United States 
                        Military Sealift Command that aim to establish 
                        reliable crewing jobs with job cycles that 
                        maximize the readiness of United States 
                        Merchant Marine Career Retention Program;
                            ``(iv) dispatch members to fill available 
                        jobs, prioritizing maximizing readiness for 
                        strategic sealift, taking into consideration 
                        mariner availability and credentials, sea time 
                        requirements to maintain merchant mariner 
                        credentials, predicted program demand for 
                        specific ratings, and expected expansion or 
                        contraction of the program's membership; and
                            ``(v) coordinate with vessel operators and 
                        labor organizations to ensure that members in 
                        the United States Merchant Marine Career 
                        Retention Program are given opportunities to 
                        fulfill their sea time and maintain the 
                        credentials required by the Standards of 
                        Training, Certification, and, Watchkeeping 
                        certification.
                    ``(E) USERRA protections.--Members of the United 
                States Merchant Marine Career Retention Program 
                described under this paragraph shall be entitled to 
                protections and obligations under chapter 43 of title 
                38 (commonly known as the `Uniformed Services 
                Employment and Reemployment Rights Act').
                    ``(F) Requirement.--A member in the United States 
                Merchant Marine Career Retention Program described 
                under this paragraph may not fail to accept a sea day 
                assignment and remain in good standing with the 
                Program, unless a hardship exemption is provided by the 
                Maritime Administrator under subsection (e).
            ``(3) Members serving on foreign vessels.--
                    ``(A) In general.--The United States Merchant 
                Marine Career Retention Program shall be open for 
                enrollment to individuals who--
                            ``(i) hold Coast Guard issued merchant 
                        mariner credentials required by the Standards 
                        of Training, Certification, and Watchkeeping 
                        Certification;
                            ``(ii) have completed their service 
                        obligations with respect to any previous 
                        enrollment in a Federal or State maritime 
                        academy, if applicable; and
                            ``(iii) are serving on a foreign vessel (as 
                        defined in section 110) that is not owned by a 
                        foreign entity of concern (as that term is 
                        defined in section 4 of the SHIPS for America 
                        Act of 2024) or a vessel registered under a 
                        registry of a foreign country of concern or 
                        operated under the authority of a foreign 
                        country of concern (as that term is defined in 
                        such section 4).
                    ``(B) Requirement.--Members of the United States 
                Merchant Marine Career Retention Program described 
                under this paragraph shall maintain--
                            ``(i) Standards of Training, Certification, 
                        and Watchkeeping Certification currency;
                            ``(ii) a valid merchant mariner credential, 
                        unlimited as to horsepower or tonnage, issued 
                        by the United States Coast Guard as an officer 
                        in the merchant marine of the United States, 
                        accompanied by the appropriate national and 
                        international endorsements and certifications 
                        required by the Coast Guard for service aboard 
                        vessels on domestic and international voyages, 
                        without limitation;
                            ``(iii) a valid transportation worker 
                        identification credential;
                            ``(iv) a Coast Guard medical certificate; 
                        and
                            ``(v) classes and certifications described 
                        in subparagraph (C).
                    ``(C) Certifications.--The Administrator shall 
                publish a list of classes and certifications required 
                for individuals described in subparagraph (A) to be 
                eligible for the United States Merchant Marine Career 
                Retention Program.
                    ``(D) Rule of construction.--Nothing in 
                subparagraph (A) shall be construed to allow the United 
                States Coast Guard to prevent or delay a merchant 
                mariner who is otherwise eligible from attaining a more 
                advanced rank or credential for Merchant Mariners 
                sailing on foreign vessels.
                    ``(E) USERRA protections.--Members of the United 
                States Merchant Marine Career Retention Program 
                described under this paragraph shall be entitled to 
                protections and obligations under chapter 43 of title 
                38 (commonly known as the `Uniformed Services 
                Employment and Reemployment Rights Act').
    ``(d) Enforcement.--The Maritime Administrator shall ensure all 
members of the Merchant Marine Career Retention Program remain in good 
standing with the requirements of the Program.
            ``(1) Enforcement.--Subject to paragraph (2), members found 
        to be in noncompliance with the requirements of the Program 
        shall--
                    ``(A) have their reservist status terminated; and
                    ``(B) forfeit the protections provided under 
                chapter 43 of title 38 (commonly known as the 
                `Uniformed Services Employment and Reemployment Rights 
                Act').
            ``(2) Exception.--In cases where the Maritime Administrator 
        determines a hardship exists, which prevents the mariner from 
        meeting the requirements of the Program, the requirements of 
        paragraph (1) shall not apply.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $2,000,000 for each of fiscal years 2025 through 2034.''.
    (c) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, as amended by sections 602, 604, and 605, 
is amended by adding at the end the following:

``52105. United States Merchant Marine Career Retention Program.''.

                     Subtitle B--Workforce Pipeline

SEC. 611. MARITIME AND SHIPBUILDING RECRUITING CAMPAIGN.

    (a) Purposes.--The purposes of this section are to--
            (1) address the shortage of workers in the maritime sector 
        and stimulate growth in the United States Merchant Marine and 
        shipbuilding industries by providing funding for a 
        comprehensive marketing, recruiting, and public relations 
        campaign; and
            (2) expand and nurture a robust maritime workforce that 
        enhances the national security and strategic sealift readiness 
        of the United States.
    (b) In General.--The Maritime Administrator, in consultation with 
the Maritime Security Board, through contracts described in subsection 
(c), shall develop and deploy branding, content, advertising buys, and 
local and national engagement strategies to implement the campaigns 
described in subsection (d).
    (c) Contracts.--The contracts described in this subsection shall be 
made to reputable marketing, recruiting, and public relations firms 
through a competitive bidding process.
    (d) Campaigns.--The Maritime Administrator, in coordination with 
the Secretary of Labor and in consultation with the Secretary of 
Defense, shall carry out targeted campaigns under this section to--
            (1) promote the virtues of work in the merchant marine of 
        the United States for the purpose of sailing in international 
        trade, including Military Sealift Command mariner positions, 
        and the critical need for skilled workers in the maritime 
        industry, and to attract workers to such industry; and
            (2) promote the virtues of work in the shipbuilding 
        industry of the United States, highlighting the critical need 
        for skilled workers in the shipbuilding industry, and to 
        attract workers to such industry.
    (e) Campaign Objectives.--The campaigns under this section shall 
focus on the following objectives:
            (1) Emphasize the importance of maritime and shipbuilding 
        work for national security.
            (2) Showcase the numerous opportunities available in the 
        maritime industry and the shipbuilding industry.
            (3) Highlight the shortage of workers in the maritime 
        industry and the shipbuilding industry.
            (4) Seek out new and non-traditional audiences and 
        platforms to bring workers from different backgrounds and with 
        different skill sets into the maritime industry and 
        shipbuilding industry.
            (5) Promote the excitement, benefits, and appeal of a 
        career in the maritime industry and the shipbuilding industry.
            (6) Inform potential workers of the points of entry 
        available to join and receive training for such a career, 
        including--
                    (A) the United States Merchant Marine Academy;
                    (B) State and regional maritime academies described 
                in chapter 515 of title 46, United States Code;
                    (C) merchant mariner and shipbuilding labor 
                organization training facilities;
                    (D) merchant mariner and shipbuilding 
                apprenticeship programs approved by the Secretary of 
                Labor;
                    (E) shipbuilding industry training programs;
                    (F) certain community colleges and private 
                institutions of higher education;
                    (G) maritime training high schools; and
                    (H) Centers of Excellence for Domestic Maritime 
                Workforce Training and Education designated by the 
                Maritime Administration.
            (7) Inform potential workers of sources of financial 
        assistance for training for individuals interested in joining 
        the maritime industry and the shipbuilding industry.
            (8) Attract workers to the maritime and shipbuilding 
        industries.
            (9) Highlight successes in the United States maritime and 
        shipbuilding industries.
    (f) Target Audience.--Each campaign under this section shall target 
a diverse audience, including--
            (1) potential workers interested in maritime industry 
        careers or shipbuilding industry careers;
            (2) educational institutions and their students considering 
        vocational training in the maritime industry and shipbuilding 
        industry, including kindergarten through grade 12 levels;
            (3) veterans and individuals seeking career transitions; 
        and
            (4) the general public to raise awareness about the 
        importance of the maritime and shipbuilding industries.
    (g) Reporting and Accountability.--
            (1) Quarterly report.--Not later than 30 days after the 
        last day of each quarter of each fiscal year during which a 
        campaign is carried out under this section, the firm selected 
        under subsection (b) shall submit a report with respect to such 
        quarter to the Maritime Administrator and the appropriate 
        committees of Congress detailing the progress, outreach, and 
        impact of each campaign carried out under this section during 
        such quarter and the effectiveness of each such campaign in 
        increasing applications for employment in the maritime and 
        shipbuilding industries of the United States.
            (2) Final report.--The firm selected under subsection (b) 
        shall submit a comprehensive final report not later than 60 
        days after the conclusion of all campaigns carried out under 
        this section.
    (h) Effective Date.--The Maritime Administrator shall initiate the 
competitive bidding process described in subsection (b) not later than 
180 days after the date that appropriations are first made available 
for this section.
    (i) Authorization of Appropriations.--
            (1) FY 2025-2028.--There are authorized to be appropriated 
        out of the Maritime Security Trust Fund, established under 
        section 9512 of the Internal Revenue Code of 1986 to the 
        Maritime Administrator, for each of fiscal year 2025, 2026, 
        2027, and 2028, $15,000,000 to carry out this section, of 
        which--
                    (A) $10,000,000 shall be for the program 
                established under subsection (d)(1) (work in the United 
                States Merchant Marine); and
                    (B) $5,000,000 shall be for the program established 
                under subsection (d)(2) (work in the shipbuilding 
                industry).
            (2) FY 2029-2034.--There are authorized to be appropriated 
        out of the Maritime Security Trust Fund, established under 
        section 9512 of the Internal Revenue Code of 1986 to the 
        Maritime Administrator, for each of fiscal year 2029, 2030, 
        2031, 2032, 2033, and 2034, $25,000,000 to carry out this 
        section, of which--
                    (A) $15,000,000 shall be for the program 
                established under subsection (d)(1) (work in the United 
                States Merchant Marine); and
                    (B) $10,000,000 shall be for the program 
                established under subsection (d)(2) (work in the 
                shipbuilding industry).

SEC. 612. CENTERS OF EXCELLENCE FOR DOMESTIC MARITIME WORKFORCE 
              TRAINING AND EDUCATION.

    Section 51706 of title 46, United States Code, is amended--
            (1) in subsection (c)(1)(B)(iii), by striking ``nonprofit 
        entity'' and inserting ``entity''; and
            (2) by adding to the end the following:
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $25,000,000 for each of fiscal years 2025 through 2034.''.

SEC. 613. MARITIME CAREER AND TECHNICAL EDUCATION ADVISORY COMMITTEE.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Maritime Administrator.
            (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Maritime Career and Technical Education Advisory 
        Committee established under subsection (b).
    (b) Advisory Committee Plan and Establishment.--
            (1) Plan.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall develop a plan, 
        and notify Congress of such plan, to establish a Maritime 
        Career and Technical Education Advisory Committee to--
                    (A) bring representatives of maritime industrial 
                base employers and education providers together to 
                identify joint opportunities to train needed workers 
                for maritime careers; and
                    (B) develop and disperse best practices and 
                recommendations for the improvement of shipbuilding 
                education and training programs, naval architecture 
                education programs, and merchant marine training and 
                certification programs.
            (2) Establishment.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall establish the 
        Advisory Committee.
    (c) Membership.--
            (1) Administrator.--The Advisory Committee shall include 
        the Administrator (or a delegate of the Administrator) who 
        shall serve as Chair of the Advisory Committee.
            (2) Representatives.--The Advisory Committee shall be 
        composed of representatives from each of the following, to be 
        appointed the Administrator:
                    (A) Maritime education, including representatives 
                from--
                            (i) the Centers of Excellence for Domestic 
                        Maritime Workforce Training and Education 
                        designated by the Maritime Administration, 
                        taking into consideration--
                                    (I) geographic diversity;
                                    (II) the rate of employment after 
                                graduation;
                                    (III) training or skillset 
                                diversity; and
                                    (IV) other qualities as determined 
                                by the Administrator;
                            (ii) the United States Naval Sea Cadet 
                        Corps; and
                            (iii) kindergarten through grade 12 
                        maritime education programs designated by the 
                        Maritime Administration.
                    (B) The maritime workforce, including 
                representatives from--
                            (i) skilled workers representing a wide 
                        swath of the career and technical maritime 
                        industry both onshore and offshore;
                            (ii) career and technical education 
                        certified instructors; and
                            (iii) maritime labor organizations.
                    (C) Maritime industry, including representatives 
                from--
                            (i) shipbuilding, ship repair, and shipyard 
                        industry stakeholders;
                            (ii) maritime industrial base coalitions;
                            (iii) shipping industry stakeholders; and
                            (iv) owners and operators of vessels of the 
                        United States.
                    (D) Technical nonprofit organizations with 
                expertise in the maritime industry, including 
                representatives from--
                            (i) think tanks;
                            (ii) recognized classification societies; 
                        and
                            (iii) professional societies.
                    (E) The Federal Government, including 
                representatives from--
                            (i) the Department of Education;
                            (ii) the Department of Labor;
                            (iii) the Department of Transportation;
                            (iv) the Department of the Navy;
                            (v) the United States Coast Guard;
                            (vi) the National Oceanic and Atmospheric 
                        Administration;
                            (vii) the Army Corps of Engineers; and
                            (viii) the Federal Maritime Commission
    (d) Meetings.--
            (1) In general.--The Advisory Committee shall meet not less 
        often than annually.
            (2) Quorum established.--Two thirds of all members 
        appointed by the Administrator under subsection (c) shall 
        constitute a quorum for a meeting of the Advisory Committee.
            (3) Working groups.--The Advisory Committee shall include 
        working groups that shall meet not less often than quarterly 
        each year.
    (e) FACA.--Chapter 10 of title 5, United States Code, shall apply 
to the Advisory Committee.
    (f) Development of Curricula.--Consistent with the purposes of the 
Advisory Committee established in subsection (b) and applicable law 
(including regulations), the Advisory Committee shall recommend 
curricula for key skills for maritime professionals and make such 
curricula publicly available to institutions of higher education, 
career and technical education schools, and State maritime academies.
    (g) Reporting.--The Advisory Committee shall submit to the 
appropriate committees of Congress and the Maritime Security Board and 
publish on the website of the Maritime Administration, an annual report 
that includes best practices and policy recommendations, as described 
in subsection (b).
    (h) Rule of Construction.--Nothing in this section shall be 
construed to create new regulatory authority or supersede existing law 
(including regulations) as of the day before the date of enactment of 
this Act, relating to shipbuilding education and training programs, 
naval architecture education programs, and merchant marine training and 
certification programs.

SEC. 614. MILITARY CANDIDATES TO MARINER CAREERS RECRUITMENT EXCHANGE.

    (a) Duties of Secretary of Defense.--The Secretary of Defense 
shall--
            (1) encourage and incentivize military recruiters to 
        recommend the United States Department of Transportation 
        Maritime Administration to potential recruits who do not 
        qualify for military service in the Armed Forces; and
            (2) establish a mechanism for military recruiters to 
        introduce recruits described in paragraph (1) who are 
        interested in maritime service to representatives from the 
        Maritime Administration, in accordance with the procedures 
        established under subsection (b).
    (b) Duties of the Maritime Administrator.--The Maritime 
Administrator shall--
            (1) establish a mechanism to receive recruitment referrals 
        from military recruiters;
            (2) provide hand-off services to connect recruits with 
        educational resources and institutions, recognized Maritime 
        Centers of Excellence, eligible maritime industry employers, 
        and other maritime industry career services, as appropriate;
            (3) track the number of referrals from the Department of 
        Defense; and
            (4) track the number of recruits who enroll in maritime 
        industry programs, to the extent practicable.
    (c) Reporting Requirement.--
            (1) Briefing on the implementation strategy.--Not later 
        than 90 days after the date of enactment of this Act, the 
        Maritime Administrator, in coordination with the Secretary of 
        Defense, shall submit a briefing to the appropriate committees 
        of Congress about a strategy for implementing the activities 
        required under this section, including--
                    (A) a timeline for implementation; and
                    (B) the identification of the Department of Defense 
                recruiter incentives and training required for maximum 
                utility in carrying out such activities.
            (2) Annual report on program efficacy.--One year after the 
        date of enactment of this Act, and annually thereafter, the 
        Maritime Administrator, in coordination with the Secretary of 
        Defense, shall submit a report to the appropriate committees of 
        Congress on the efficacy and utility of the activities carried 
        out under this section, including--
                    (A) the number of Department of Defense referrals 
                to the Maritime Administration;
                    (B) the number of Maritime Administration hand-offs 
                to the maritime industry;
                    (C) an assessment of the efficacy of the activities 
                carried out under this section; and
                    (D) challenges and recommendations relating to such 
                activities.

SEC. 615. MARITIME WORKER DATA COLLECTION.

    (a) Publication of Report.--The Maritime Administrator shall 
publish an biennial report on the state of the merchant mariner 
workforce.
    (b) Completion of Report.--The Maritime Administrator shall 
complete the biennial report required under subsection (a) or enter 
into a contract with another entity to complete the report.
    (c) Content of Report.--The biennial report required under 
subsection (a) shall include, at minimum--
            (1) a count of United States Merchant Mariners with valid 
        merchant mariner credentials and credentials in continuity 
        endorsement;
            (2) a count of inactive but credentialed and formerly 
        credentialed United States Merchant Mariners, to the extent 
        practicable, and an evaluation of--
                    (A) the challenges to identifying such individuals;
                    (B) opportunities to partner with Federal, State, 
                local, and non-government entities to identify such 
                individuals; and
                    (C) an action plan of how to implement the 
                opportunities described under subparagraph (B);
            (3) a count of United States mariners and foreign workers 
        employed on vessels, rigs, platforms, and other vehicles or 
        structures off the coast of the United States and an evaluation 
        of the percentage of United States and foreign workers employed 
        on--
                    (A) coastwise-endorsed vessels; and
                    (B) vessels of the United States which do not have 
                a coastwise endorsement;
            (4) a listing of actively operating vessels of the United 
        States;
            (5) a report of merchant mariner requirements needed in the 
        event of a national defense sealift operation and any gaps 
        identified in quantity and quality, and other variables of 
        concern, as determined by the Administrator;
            (6) a general outlook for the future of the merchant 
        mariner industry and potential gaps or surpluses of merchant 
        mariners;
            (7) identification of any concerns in the credentialing of 
        merchant mariners, which may include general processing issues, 
        shortage of training providers or instructors, and barriers to 
        entry due to costs to the economically disadvantaged; and
            (8) recommendations, based on data collected, on ways to--
                    (A) improve retention of existing merchant 
                mariners;
                    (B) create expedited pathways for mariners with 
                expired credentials to renew their credentials; and
                    (C) encourage new merchant mariners to enter the 
                industry.
    (d) Accessibility of Data.--
            (1) In general.--Except as provided in paragraph (2), the 
        Maritime Administrator, and any authorized agent of the 
        Maritime Administrator, shall have full access to available 
        Coast Guard mariner credentialing data, in a manner that 
        ensures the protection of personally identifiable information, 
        in order to complete the report required under subsection (a).
            (2) Exception.--The Maritime Administrator, and any 
        authorized agent of the Maritime Administrator, may not have 
        access to confidential medical information pursuant to 
        paragraph (1).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $1,000,000 for each of the fiscal years 2025 through 2029.

SEC. 616. MILITARY TO MARITIME TRANSITION.

    (a) Recommendations Required.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense, in 
consultation with the Secretary of the Navy, the Secretary of the Air 
Force, the Secretary of the Army, the Secretary of the department in 
which the Coast Guard is operating, the Maritime Security Board, the 
Department of Veterans Affairs, and the Department of Labor, shall 
submit a report to the appropriate committees of Congress containing--
            (1) recommendations about how to increase and improve 
        opportunities for transitioning servicemembers to secure 
        employment in the maritime industry at sea and shoreside; and
            (2) a plan to implement those recommendations.
    (b) Considerations.--In carrying out subsection (a), the Secretary 
of Defense shall--
            (1) identify barriers that servicemembers face when trying 
        to transition to the United States maritime industry, including 
        the merchant marines, shipbuilding, ship repair, and shipping;
            (2) consider opportunities to improve, expedite, and 
        alleviate the burdens on servicemembers transitioning to the 
        maritime industry, including efforts to--
                    (A) inform transitioning servicemembers of 
                employment opportunities in the United States maritime 
                industry;
                    (B) assist transitioning servicemembers in 
                determining how their military credentials and 
                experience translate to credentialed civilian 
                employment in the maritime industry;
                    (C) increase the establishment and uptake of 
                accelerated or bridge programs to assist separating 
                members of the Armed Forces in translating military 
                credentials and experience into maritime industry 
                credentials and employment;
                    (D) increase the availability and accessibility of 
                preparatory activities under the SkillBridge program 
                established under section 1143(e) of title 10, United 
                States Code, in the United States maritime industry;
                    (E) incorporate the maritime industry in the 
                Transition Assistance Program, as described in chapter 
                58 of title 10, United States Code; and
                    (F) enhance the activities carried out pursuant to 
                the Military to Mariners Act of 2022 (section 11514 of 
                division K of the James M. Inhofe National Defense 
                Authorization Act for Fiscal Year 2023 (Public Law 117-
                263)); and
            (3) specifically consider the transition of servicemembers 
        to employment in the shipbuilding and ship repair maritime 
        industries.

SEC. 617. EARLY MARITIME EDUCATION AND YOUTH INVOLVEMENT.

    (a) Secretary of the Navy Budget Request.--In the Secretary of the 
Navy's annual budget submission to Congress, the Secretary of the Navy 
shall include, as a distinct item, the funding request for the United 
States Naval Sea Cadet Corps.
    (b) Engagement With Elementary School and Secondary School 
Students.--The Maritime Administrator shall encourage designated 
Centers of Excellence for Domestic Maritime Workforce Training and 
Education to engage with students in kindergarten through grade 12.

SEC. 618. INTERNATIONAL SCHOLARSHIP FOR MARINER AND NAVAL ARCHITECTURE 
              EXCHANGES.

    (a) In General.--The Maritime Administrator shall establish an 
international exchange program for mariners, naval architects, and 
marine engineers between the United States and countries described in 
subsection (b).
    (b) Eligible Participants.--In carrying out the program under this 
section, the Administrator shall limit participation to United States 
citizens and citizens of--
            (1) member countries of NATO;
            (2) treaty allies of the United States; and
            (3) major non-NATO allies of the United States.
    (c) Placements.--In carrying out the program under this section, 
the Administrator shall seek corporate and government partners for 
placement of eligible participants of the program.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986, $2,000,000 to carry 
out this section for each of fiscal years 2025 through 2034.

 Subtitle C--United States Merchant Marine Academy and State Maritime 
                               Academies

SEC. 621. AUTHORIZATION OF APPROPRIATIONS FOR UNITED STATES MERCHANT 
              MARINE ACADEMY INFRASTRUCTURE AND FACILITIES 
              MODERNIZATION.

    (a) Findings.--Congress finds the following:
            (1) The United States Merchant Marine Academy plays a 
        critical role in training service-obligated licensed merchant 
        mariners to operate commercial vessels, in peacetime and during 
        times of conflict.
            (2) The United States Merchant Marine Academy is 1 of the 5 
        Federal service academies and plays a critical role in 
        maintaining a domestic, commercial maritime industry, with each 
        graduate having a commitment to serve not less than 8 years in 
        the foreign and domestic commerce and the national defense of 
        the United States, which may include service on a merchant 
        vessel documented under chapter 121 of title 46, and graduates 
        make up more than 80 percent of the United States Navy's 
        Strategic Sealift Officer Program.
            (3) The United States defense readiness and economic 
        security relies on a strong investment in training and 
        cultivating United States Merchant Marine officers at the 
        United States Merchant Marine Academy.
            (4) Most of the facilities at the United States Merchant 
        Marine Academy date back to the Academy's founding, have not 
        been modernized since, and are not conducive to the immersive 
        training and demanding coursework today's Midshipmen are 
        required to complete.
            (5) Rehabilitating and modernizing the campus 
        infrastructure at the United States Merchant Marine Academy is 
        necessary to ensuring current and future generations of 
        Midshipmen receive a first-class education.
    (b) Sense of the Senate.--It is the sense of the Senate--
            (1) to ensure that the United States continues to have a 
        sufficient number of service-obligated licensed merchant 
        mariners to meet current and future economic and national 
        security needs, the Maritime Administration and the Department 
        of Transportation have a responsibility to provide suitable 
        academic, training, and dormitory facilities at the United 
        States Merchant Marine Academy by rapidly implementing a 
        comprehensive plan for campus-wide modernization in accordance 
        with section 51329 of title 46, United States Code, (referred 
        to in this section as the ``Campus Modernization Plan'') and 
        providing sufficient accountability and oversight to ensure 
        that milestones in such plan are met;
            (2) in developing the comprehensive Campus Modernization 
        Plan for the United States Merchant Marine Academy, the 
        Maritime Administration, and the Department of Transportation 
        should utilize, to the maximum extent practicable, the 
        ``Merchant Marine Academy Full Speed Ahead Plan'' developed by 
        the Maritime Security Infrastructure Council as summarized in 
        the Congressional Record, dated February 28, 2024;
            (3) given the conditions of the United States Merchant 
        Marine Academy as of the date of enactment of this section, a 
        comprehensive, campus-wide modernization is needed to 
        significantly upgrade or replace facilities throughout the 
        campus; and
            (4) the Maritime Administration and the Department of 
        Transportation should identify opportunities to utilize design-
        build contracts to increase delivery times and reduce costs.
    (c) Campus Modernization Plan.--Chapter 513 of title 46, United 
States Code, is amended by adding at the end the following:
``Sec. 51329. 10-year Campus Modernization Plan
    ``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall develop and begin to 
implement a comprehensive Campus Modernization Plan (referred to in 
this section as the `Campus Modernization Plan'), informed by the 
`United States Merchant Marine Academy Full Speed Ahead Plan' developed 
by the Maritime Security Infrastructure Council as summarized in the 
Congressional Record, dated February 28, 2024, to carry out a campus-
wide modernization at the United States Merchant Marine Academy.
    ``(b) Objectives.--In carrying out the Campus Modernization Plan 
authorized under subsection (a), the Administrator shall prioritize the 
following objectives:
            ``(1) Promoting modern education best practices by 
        constructing learning facilities that leverage state-of-the art 
        technologies and learning best practices.
            ``(2) Providing Midshipmen with access to facilities needed 
        to pass the United States Coast Guard License Exam for Third 
        Mate or Third Assistant Engineer Unlimited.
            ``(3) Ensuring Midshipmen have access to facilities 
        sufficient to enable Midshipmen to maintain physical readiness 
        standards required of United States Navy officers.
            ``(4) Developing campus infrastructure to ensure the 
        Academy attracts a diverse pool of applicants.
            ``(5) Providing facilities that enable industry engagement 
        and continuing education opportunities.
            ``(6) Maintaining a safe and secure campus environment for 
        all Midshipmen, which shall include any facilities or 
        infrastructure needed to meet the requirements of sections 
        51326, 51327, or 51328 of this title.
            ``(7) Implementing, to the extent practicable, the 
        facilities and infrastructure recommendations in chapter 4 of 
        the report titled `Organizational Assessment of the United 
        States Merchant Marine Academy: A Path Forward' issued by the 
        National Academy of Public Administration in November 2021.
    ``(c) Inclusions.--In meeting the objectives of subsection (b), the 
Campus Modernization Plan authorized under subsection (a) shall 
include--
            ``(1) construction of new facilities or significant 
        renovation of existing facilities to provide--
                    ``(A) Standards of Training, Certification, and 
                Watchkeeping applications laboratories;
                    ``(B) a Safety Of Life At Sea training pool;
                    ``(C) engineering powerplant laboratories;
                    ``(D) athletic facilities that meet the needs of 
                both male and female students;
                    ``(E) enhanced waterfront facilities, to include a 
                new pier;
                    ``(F) a visitor welcome center and main campus 
                security office building;
                    ``(G) housing facilities for senior staff and 
                faculty; and
                    ``(H) sufficient parking facilities for faculty, 
                staff, and campus visitors;
            ``(2) upgrades to all classrooms and laboratories with 
        modern information technology infrastructure;
            ``(3) a campus-wide upgrade and retrofit of--
                    ``(A) the electric distribution power grid;
                    ``(B) the sanitary sewer system piping;
                    ``(C) the storm drainage system; and
                    ``(D) the drinking water system, including 
                development of a separate and redundant fire 
                suppression system; and
            ``(4) renovations of existing campus facilities to ensure 
        all campus facilities--
                    ``(A) are structurally sound;
                    ``(B) have reliable heating and air conditioning 
                systems;
                    ``(C) have functioning plumbing and electrical 
                systems;
                    ``(D) are protected from the elements, including 
                through roof replacements and window repairs or 
                replacements, as needed;
                    ``(E) are accessible in accordance with the 
                Americans with Disabilities Act of 1990; and
                    ``(F) have working fire alarm and fire suppression 
                systems.
    ``(d) Requirements.--For the duration of the Campus Modernization 
Plan authorized under subsection (a), the Administrator shall ensure 
that the Academy remains fully operational.
    ``(e) Use of a Federal Construction Agent.--Consistent with the 
requirements of section 3515(d)(3) of the James M. Inhofe National 
Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263), 
the Administrator shall seek to enter into an agreement with a Federal 
construction agent to carry out the Campus Modernization Plan 
authorized under subsection (a).
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Transportation, out of the Maritime 
Security Trust Fund established under section 9512 of the Internal 
Revenue Code of 1986, for fiscal years 2025 through 2034, for the 
phased rehabilitation, modernization, and construction of facilities 
and infrastructure at the United States Merchant Marine Academy, in 
accordance with this section, including the Campus Modernization Plan 
authorized in subsection (a), $1,020,000,000 of which--
            ``(1) $54,000,000 is authorized to be appropriated for 
        fiscal year 2025 for design and planning purposes, which shall 
        be used for the development of a design-build plan for the 
        phased rehabilitation, modernization, and construction of 
        facilities and infrastructure at the United States Merchant 
        Marine Academy in accordance with the Campus Modernization 
        Plan; and
            ``(2) for fiscal years 2026 through 2034, $107,333,333 is 
        authorized to be appropriated for each year for construction 
        and contingency purchases necessary to execute the Campus 
        Modernization Plan.''.
    (d) Clerical Amendment.--The table of sections for chapter 513 of 
title 46, United States Code, is amended by adding at the end the 
following:

``51329. 10-Year Campus Modernization Plan.''.

SEC. 622. UNITED STATES MERCHANT MARINE ACADEMY.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the United States Merchant Marine Academy, one of our 
        Nation's 5 Federal service academies, is vital to our national 
        security, and modernizing the Academy's aging infrastructure 
        and investing in faculty and students must be congressional 
        priorities;
            (2) sufficient funding must be provided to enable the 
        maximum student enrollment that the campus infrastructure of 
        the United States Merchant Marine Academy can support; and
            (3) considering the Academy's role as a co-equal military 
        service academy, the United States Merchant Marine Academy 
        should be included in the rotation of presidential attendance 
        at graduations.
    (b) Authorization of Appropriations.--Section 51301 of title 46, 
United States Code, is amended by adding at the end the following:
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Transportation $125,000,000 for each 
of fiscal years 2025 through 2034 for Academy operations.''.
    (c) Report on Enrollment.--Not later than 180 days after the date 
of enactment of this Act, the Maritime Administrator shall submit a 
report to the appropriate committees of Congress identifying the 
additional resources needed to increase enrollment at the United States 
Merchant Marine Academy.

SEC. 623. RETIREMENT SERVICE CREDIT FOR SERVICE AS A MIDSHIPMAN AT THE 
              UNITED STATES MERCHANT MARINE ACADEMY.

    (a) Civil Service Retirement System.--Section 8331(13) of title 5, 
United States Code, is amended, in the flush text following 
subparagraph (C), by inserting ``or the United States Merchant Marine 
Academy'' after ``Naval Academy''.
    (b) Federal Employees' Retirement System.--Section 8401(31) of 
title 5, United States Code, is amended, in the flush text following 
subparagraph (C), by inserting ``or the United States Merchant Marine 
Academy'' after ``Naval Academy''.
    (c) Applicability.--The amendments made by this section shall apply 
to--
            (1) any annuity, the eligibility for which is based on a 
        separation occurring before, on, or after the date of enactment 
        of this Act; and
            (2) any period of service as a midshipman at the United 
        States Merchant Marine Academy occurring before, on, or after 
        the date of enactment of this Act.

SEC. 624. STATE MARITIME ACADEMIES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Maritime Administrator shall submit a report 
to Congress containing the results of a study to evaluate the 
additional resources needed to allow State maritime academies to 
increase enrollment and produce additional mariners.
    (b) Need for Additional State Maritime Academies.--Such study shall 
consider whether there is a need for additional State maritime 
academies in States that do not operate a maritime academy.
    (c) Authorization of Appropriations.--Section 51501 of title 46, 
United States Code, is amended by adding at the end the following:
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund established under 
section 9512 of the Internal Revenue Code of 1986, $10,000,000 for 
assistance to State maritime academies under subsection (a) for each of 
fiscal years 2025 through 2034.''.

SEC. 625. MILITARY TO MARINER ENROLLMENT AT A STATE MARITIME ACADEMY.

    Section 51506 of title 46, United States Code, is amended--
            (1) in subsection (a)(2), by inserting before the semicolon 
        the following: ``, which shall include standards for a program 
        described in subsection (c)'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following:
    ``(c) Merchant Mariner Expedited Preparation Program.--
            ``(1) In general.--A State maritime academy shall offer a 
        program for eligible individuals described in paragraph (2) 
        through which the eligible individuals--
                    ``(A) complete a merchant marine officer 
                preparation program approved by the Secretary, and the 
                requirements for the issuance of a license under 
                section 7101 of this title, in less than 3 years; and
                    ``(B) are not required to earn a baccalaureate or 
                other degree from the State maritime academy.
            ``(2) Eligible individuals.--An eligible individual 
        described in paragraph (1) is an individual who--
                    ``(A)(i) is an honorably discharged veteran of the 
                Armed Forces; or
                    ``(ii) is a member of the National Guard or 
                Reserves with not less than 6 years of service; and
                    ``(B) has earned a baccalaureate degree from an 
                institution of higher education (as defined in section 
                102 of the Higher Education Act of 1965 (20 U.S.C. 
                1002)) before entering the State maritime academy 
                program.''.

SEC. 626. ENFORCEMENT OF SERVICE OBLIGATION REQUIREMENTS.

    (a) In General.--The Maritime Administrator shall ensure that--
            (1) each citizen who is appointed as a cadet at the United 
        States Merchant Marine Academy and signs a cadet commitment 
        agreement under section 51306 of title 46, United States Code, 
        meets the service obligation requirements of that agreement; 
        and
            (2) each individual that signs a student incentive payment 
        agreement under section 51509 of title 46, United States Code, 
        meets the service obligation requirements under that agreement.
    (b) Reporting Requirement.--The Maritime Administrator shall 
establish an electronic system through which each individual with a 
service obligation under such section 51306 or 51509 (referred to in 
this section as a ``service-obligated mariner'') shall annually 
demonstrate that they are meeting their service obligation or have a 
valid deferment consistent with section 51310 of title 46, United 
States Code, or section 51510 of title 46, United States Code, as 
applicable.
    (c) Notification of Violation.--The Maritime Administrator shall 
transmit a written notice to each service-obligated mariner who fails 
to meet the reporting requirement of subsection (b), notifying such 
individual of the applicable penalties established under section 51306 
of title 46, United States Code, or section 51509 of title 46, United 
States Code, for failure to carry out the applicable service 
requirements, including cost recovery.
    (d) Report to Congress.--Not later than 180 days after the date of 
enactment of this section, and annually thereafter, the Maritime 
Administrator shall submit to the appropriate committees of Congress a 
report on the status of all service-obligated mariners, which shall 
include--
            (1) information about how each service-obligated mariner is 
        meeting their service obligation requirement, which shall be 
        based on the results of the data collected under subsection 
        (b);
            (2) the number of service-obligated mariners who have not 
        met their service obligation and have not complied with the 
        reporting requirement under subsection (b); and
            (3) the number of actions taken by the Maritime 
        Administrator under sections 51306(b), 51306(d), 51306(f), and 
        51509(g) to recover costs from service-obligated mariners who 
        have not demonstrated that they have met their service 
        obligation requirements.

SEC. 627. FUEL FUNDING FOR TRAINING SHIPS OPERATED BY STATE MARITIME 
              ACADEMIES.

    (a) Conforming Amendment.--Section 51504 of title 46, United States 
Code, is amended by striking subsection (f) and inserting the 
following:
    ``(f) Fuel Costs.--Subject to the availability of appropriations, 
the Secretary shall pay to each State maritime academy the costs of 
fuel used by a vessel provided under this section while used for 
training in accordance with section 51512.''.
    (b) Amendment.--Chapter 515 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 51512. Funding for training ships operated by State maritime 
              academies
    ``(a) Fuel Funding.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the Secretary shall pay to each State maritime 
        academy the costs of fuel used by a vessel that is loaned to 
        the State maritime academy in accordance with section 51504 
        while used for training.
            ``(2) Maximum amounts.--The amount of the payment to a 
        State maritime academy under subsection (a) may not exceed 
        $20,000,000 for each of fiscal years 2025 through 2034.
            ``(3) Prohibition.--Maritime academies that receive funding 
        under subsection (a) may not--
                    ``(A) profit from charging cadets to go to sea for 
                their licensing when using federally provided fuel; or
                    ``(B) utilize the vessel as housing for students 
                outside of seasonal training cruises, unless students 
                elect voluntarily to live aboard the vessel.
            ``(4) Requirement.--Each State maritime academy that 
        receives fuel costs under this section shall offer billets for 
        liaison officers from each military service during the time 
        such vessel is provided to that State maritime academy.
    ``(b) Crew.--
            ``(1) In general.--Each State maritime academy shall make 
        crew positions available on a vessel that is loaned to the 
        State maritime academy for mariners enrolled in the United 
        States Merchant Marine Career Retention Program established 
        under section 52105.
            ``(2) Crew funding.--For each crew slot filled by a mariner 
        enrolled in the career retention program, as provided for under 
        paragraph (1), the Secretary shall pay the crew costs for that 
        mariner, subject to the availability of appropriations.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986, $120,000,000 to 
carry out this section for each of fiscal years 2025 through 2034.''.
    (c) Clerical Amendment.--The table of sections for chapter 515 of 
title 46, United States Code, is amended by adding at the end the 
following:

``51512. Fuel funding for training ships operated by State maritime 
                            academies.''.

SEC. 628. STATE MARITIME ACADEMY SEA TERM SCHOLARSHIP PROGRAMS.

    (a) In General.--Chapter 515 of title 46, United States Code, as 
amended by section 627, is further amended by adding at the end the 
following:
``Sec. 51513. State Maritime Academy Sea Term Scholarship Programs
    ``(a) In General.--The Maritime Administrator shall work with 
private entities in the maritime industry to establish a scholarship 
program--
            ``(1) for students at State maritime academies to offset 
        expenses associated with completion of a summer sea term to 
        receive sea-time required to earn a Coast Guard license; and
            ``(2) which is entirely or predominantly funded through 
        contributions from a private entity.
    ``(b) Contributed Funds.--The Maritime Administrator shall enter 
into a cooperative agreement, or other agreement, with private entities 
in the maritime industry to accept funding from private entities for 
the purpose of establishing such a scholarship program. The cooperative 
agreement may include any terms considered necessary by the Maritime 
Administrator.
    ``(c) Privileges.--The Maritime Administrator may provide certain 
privileges to a private entity who contributes funds for a scholarship 
program under this section, including opportunities to provide 
information about employment opportunities with the private entity to 
students enrolled in the scholarship program.
    ``(d) Structure.--In establishing a scholarship program to offset 
expenses associated with a summer sea term--
            ``(1) the Maritime Administrator may enter into an 
        agreement with a student at a State maritime academy that has 
        an agreement with the Secretary of Transportation under section 
        51505 of this title, to offset expenses associated with 
        completion of a summer sea term; or
            ``(2) the Maritime Administrator may enter into an 
        agreement with a State maritime academy that has an agreement 
        with the Secretary of Transportation under section 51505 of 
        this title, to offset expenses for all students who participate 
        in a summer sea term program.
    ``(e) Relationship to Financial Assistance Programs.--Recognizing 
the need for licensed merchant mariners, the Maritime Administrator 
shall encourage participants of the financial assistance programs under 
part C of this subtitle, to enter into agreements under this section to 
establish scholarship programs to offset expenses associated with 
summer sea term.
    ``(f) Requirements for Students.--Any student who benefits from a 
scholarship program under this section shall enter into an agreement 
with the Maritime Administrator which requires the student to--
            ``(1) complete the course of instruction at the academy the 
        individual is attending;
            ``(2) obtain a merchant mariner license, without limitation 
        as to tonnage or horsepower, from the Coast Guard as an officer 
        in the merchant marine of the United States, accompanied by the 
        appropriate national and international endorsements and 
        certification required by the Coast Guard for service aboard 
        vessels on domestic and international voyages, without 
        limitation, within 3 months of completion of the course of 
        instruction at the academy the individual is attending;
            ``(3) serve in a position that supports the foreign and 
        domestic commerce and the national defense of the United States 
        for at least 1 year after graduation from the academy--
                    ``(A) as a merchant marine officer on a documented 
                vessel or a vessel owned and operated by the United 
                States Government or by a State; or
                    ``(B) as a commissioned officer on active duty in 
                an Armed Force of the United States, as a commissioned 
                officer in the National Oceanic and Atmospheric 
                Administration, or in other maritime-related Federal 
                employment which serves the national security interests 
                of the United States, as determined by the Maritime 
                Administrator; and
            ``(4) report to the Maritime Administrator on compliance 
        with this subsection.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986, $2,500,000 to carry 
out this section for each of fiscal years 2025 through 2034.''.
    (b) Clerical Amendment.--The table of sections for chapter 515 of 
title 46, United States Code, as amended by section 627, is further 
amended by adding at the end the following:

``51513. State Maritime Academy Sea Term Scholarship Programs.''.

SEC. 629. NAVAL JOINT EXERCISE INVOLVEMENT FOR TRAINING SHIPS OPERATED 
              BY STATE MARITIME ACADEMIES.

    (a) In General.--The Secretary of the Navy, in coordination with 
the Maritime Administrator, shall, to the extent practicable, include 
in national and international maritime warfare exercises not less than 
1 training vessel used by a State maritime academy and maintained 
pursuant to section 51504 of title 46, United States Code, in order to 
provide an opportunity to integrate merchant mariners with naval and 
military operations.
    (b) Participants.--Subject to guidance issued by the Secretary of 
the Navy and Maritime Administrator, an individual may participate in 
the exercise aboard that training ship if the individual is--
            (1) a licensed merchant mariner; or
            (2) a student from the United States Merchant Marine 
        Academy, a State maritime academy, a Center of Excellence for 
        Domestic Maritime Workforce Training and Education, or a 
        merchant marine center established under section 147 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3197), as 
        added by section 612 of this Act.
    (c) Priority.--In selecting participants under subsection (b) the 
Administrator shall give priority to students described in paragraph 
(2) of subsection (b).
    (d) Vessels.--In coordination with the Secretary of the Navy, the 
Maritime Administrator shall rotate training vessels to ensure that 
each training vessel described in subsection (a) has an equal 
opportunity to participate in such exercises.

            Subtitle D--Maritime Credentialing Modernization

SEC. 631. MERCHANT MARINER CREDENTIALING MODERNIZATION.

    (a) Merchant Mariner Credentialing Modernization.--The Secretary of 
the department in which the Coast Guard is operating shall carry out 
necessary system and process changes to carry out the activities 
described in paragraphs (1) through (4).
            (1) Licensing, certification, and documentation database.--
        Replacement of the merchant mariner licensing, certification, 
        and documentation database such that the database allows for--
                    (A) the electronic submission of merchant mariner 
                credential applications (including sea service, 
                professional qualifications, course completion data, 
                safety and suitability, and medical records) and course 
                approval requests;
                    (B) direct submission of sea service information 
                from employers and course completion data from training 
                providers and other stakeholders to provide data 
                securely and directly so that documentation does not 
                need to be submitted later by the merchant mariner; and
                    (C) the electronic processing and evaluation of 
                information for the issuance of credentials and course 
                approvals, including the capability for the Secretary 
                to complete remote evaluation of the information 
                submitted.
            (2) System for data exchange.--Implementation of a system 
        that provides for the exchange of data with government agencies 
        and industry stakeholders, which provides the Maritime 
        Administration and other agencies, as appropriate, anonymized 
        and aggregated data showing the following:
                    (A) The total amount of sea service for individuals 
                with a valid merchant mariner credential.
                    (B) The number of credentialed mariners by 
                individual rating and the capability to filter data by 
                endorsements.
                    (C) Demographic information, including age, gender, 
                ethnicity, and address or location.
                    (D) National Maritime Center processing times.
                    (E) The number of Coast Guard approved training 
                providers, and, for each such training provider, the 
                number of courses taken by individuals who have, or who 
                are applying for, a merchant mariner credential from 
                that training provider.
            (3) Public facing portal.--Implementation of a system that 
        includes a public facing portal in the .gov domain instead of 
        the .mil domain to accept merchant mariner applicant 
        information, including credential applications, course 
        completion data, and course approval requests, that complies 
        with the requirements for cybersecurity and privacy information 
        of electronic systems in the .gov domain.
            (4) Examination processes.--Upgrading the examination 
        processes for merchant mariner examinations, by--
                    (A) implementing an examination regime that 
                provides for electronic and third party administration 
                of examinations;
                    (B) reassessing the content of tests through the 
                development of job task analysis for all credentials; 
                and
                    (C) implementing a robust system to analyze 
                examination data.
    (b) Report.--The Secretary of the department in which the Coast 
Guard is operating shall submit--
            (1) an annual report to the Committee on Commerce, Science, 
        and Transportation, the Committee on Appropriations, and the 
        Committee on Armed Services of the Senate, and the Committee on 
        Transportation and Infrastructure, the Committee on 
        Appropriations, and the Committee on Armed Services of the 
        House of Representatives, on the progress of the system and 
        process changes required under subsection (a); and
            (2) a final report to those Committees 1 year after full 
        operating capability of the complete system, comprised of all 4 
        systems required under subsection (a).
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $20,000,000 for fiscal year 2025, to remain available until 
expended.

SEC. 632. REVISING MERCHANT MARINER DECK TRAINING REQUIREMENTS.

    (a) General Definitions.--Section 2101 of title 46, United States 
Code, is amended--
            (1) by redesignating paragraphs (20) through (56) as 
        paragraphs (21) through (57), respectively; and
            (2) by inserting after paragraph (19) the following:
            ``(20) `merchant mariner credential' means a merchant 
        mariner license, certificate, or document that the Secretary is 
        authorized to issue pursuant to this title.''.
    (b) Examinations.--Section 7116 of title 46, United States Code, is 
amended by striking subsection (c).
    (c) Merchant Mariners Documents.--
            (1) General requirements.--Section 7306 of title 46, United 
        States Code, is amended to read as follows:
``Sec. 7306. General requirements and classifications for members of 
              deck departments
    ``(a) In General.--The Secretary may issue a merchant mariner 
credential, to members of the deck department in the following classes:
            ``(1) Able Seaman-Unlimited.
            ``(2) Able Seaman-Limited.
            ``(3) Able Seaman-Special.
            ``(4) Able Seaman-Offshore Supply Vessels.
            ``(5) Able Seaman-Sail.
            ``(6) Able Seaman-Fishing Industry.
            ``(7) Ordinary Seaman.
    ``(b) Classification of Credentials.--The Secretary may classify 
the merchant mariner credential issued under subsection (a) based on--
            ``(1) the tonnage and means of propulsion of vessels;
            ``(2) the waters on which vessels are to be operated; or
            ``(3) other appropriate standards.
    ``(c) Considerations.--In issuing the credential under subsection 
(a), the Secretary may consider the following qualifications of the 
merchant mariner:
            ``(1) Age.
            ``(2) Character.
            ``(3) Habits of life.
            ``(4) Experience.
            ``(5) Professional qualifications demonstrated by 
        satisfactory completion of applicable examinations or other 
        educational requirements.
            ``(6) Physical condition, including sight and hearing.
            ``(7) Other requirements established by the Secretary, 
        including career patterns and service appropriate to the 
        particular service, industry, or job functions the individual 
        is engaged.''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is amended by striking the 
        item relating to section 7306 and inserting the following:

``7306. General requirements and classifications for members of deck 
                            departments.''.
            (3) General requirements for members of engine 
        departments.--Section 7313(b) of title 46, United States Code, 
        is amended by striking ``and coal passer''.
            (4) Training.--Section 7315 of title 46, United States 
        Code, is amended--
                    (A) by amending subsection (a) to read as follows:
    ``(a) Graduation from a nautical school program approved by the 
Secretary may be substituted for the service requirements under 
sections 7307 through 7311a and 7314.'';
                    (B) in subsection (b)--
                            (i) by striking ``one-third'' and inserting 
                        ``one-half''; and
                            (ii) by striking ``7307-7311 of this 
                        title'' and inserting ``7307-7311a and 7314''; 
                        and
                    (C) by striking subsection (c).
    (d) Reduction of Lengths of Certain Periods of Service.--
            (1) In general.--Title 46, United States Code, is amended--
                    (A) in section 7307, by striking ``3 years'' and 
                inserting ``18 months'';
                    (B) in section 7308, by striking ``18 months'' and 
                inserting ``12 months''; and
                    (C) in section 7309, by striking ``12 months'' and 
                inserting ``6 months''.
            (2) Temporary reduction of lengths of certain periods of 
        service.--Section 3534(j) of the National Defense Authorization 
        Act for Fiscal Year 2024 (Public Law 118-31) is repealed.
    (e) Merchant Mariner Credentials.--Section 7510 of title 46, United 
States Code, is amended by striking subsection (d).
    (f) Implementation.--The Secretary of the department in which the 
Coast Guard is operating shall implement the amended requirements under 
subsections (c)(3), (c)(4), and (d)(1) of this section without regard 
to chapters 5 and 6 of title 5, United States Code, and Executive 
Orders 12866 and 13563 (5 U.S.C. 601 note).

SEC. 633. INSPECTIONS FOR TRANSPORTATION SECURITY.

    (a) In General.--Chapter 81 of part F of subtitle II of title 46, 
United States Code, is amended by adding at the end the following:
``Sec. 8109. Inspections for transportation security
    ``(a) In General.--
            ``(1) Inspection.--The Secretary shall periodically, but 
        not less than once annually, inspect each covered facility to 
        verify that the owner or operator of the covered facility has a 
        valid exemption under subsection (c) of section 30 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1356(c)).
            ``(2) Covered facility.--In this subsection, the term 
        `covered facility' means a vessel, rig, platform, or other 
        vehicle or structure that, but for an exemption under 
        subsection (c) of section 30 of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1356(c)) would otherwise be subject to the 
        regulations under subsection (a)(3) of such section.
    ``(b) Transportation Security Card.--During an inspection under 
this section, the Secretary shall confirm that all crew members that 
are required to have a transportation worker identification credential 
pursuant to section 70105 have such a credential.''.
    (b) Clerical Amendment.--The table of sections for chapter 81 of 
title 46, United States Code, is amended by adding at the end the 
following:

``8109. Inspections for transportation security.''.

SEC. 634. TECHNICAL AMENDMENTS RELATING TO REFERENCES TO SEAMEN.

    (a) Merchant Mariner Credentials.--The heading for part E of 
subtitle II of title 46, United States Code, is amended by striking 
``merchant seamen licenses, certificates, and documents'' and inserting 
``merchant mariner credentials''.
    (b) Able Seafarers--Unlimited.--
            (1) In general.--The section heading for section 7307 of 
        title 46, United States Code, is amended by striking ``seamen'' 
        and inserting ``seafarers''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is further amended in the 
        item relating to section 7307 by striking ``seamen'' and 
        inserting ``seafarers''.
    (c) Able Seamen--Limited.--
            (1) In general.--The section heading for section 7308 of 
        title 46, United States Code, is amended by striking ``seamen'' 
        and inserting ``seafarers''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is further amended in the 
        item relating to section 7308 by striking ``seamen'' and 
        inserting ``seafarers''.
    (d) Able Seafarers--Special.--
            (1) In general.--The section heading for section 7309 of 
        title 46, United States Code, is amended by striking ``seamen'' 
        and inserting ``seafarers''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is further amended in the 
        item relating to section 7309 by striking ``seamen'' and 
        inserting ``seafarers''.
    (e) Able Seafarers--Offshore Supply Vessels.--
            (1) In general.--The section heading for section 7310 of 
        title 46, United States Code, is amended by striking ``seamen'' 
        and inserting ``seafarers''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is further amended in the 
        item relating to section 7310 by striking ``seamen'' and 
        inserting ``seafarers''.
    (f) Able Seafarers--Sail.--
            (1) In general.--The section heading for section 7311 of 
        title 46, United States Code, is amended by striking ``seamen'' 
        and inserting ``seafarers''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is further amended in the 
        item relating to section 7311 by striking ``seamen'' and 
        inserting ``seafarers''.
    (g) Able Seamen--Fishing Industry.--
            (1) In general.--The section heading for section 7311a of 
        title 46, United States Code, is amended by striking ``seamen'' 
        and inserting ``seafarers''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is further amended in the 
        item relating to section 7311a by striking ``seamen'' and 
        inserting ``seafarers''.
    (h) Parts E and F.--Parts E and F of subtitle II of title 46, 
United States Code, is amended--
            (1) by striking ``seaman'' and inserting ``seafarer'' each 
        place it appears; and
            (2) by striking ``seamen'' and inserting ``seafarers'' each 
        place it appears.
    (i) Clerical Amendments.--The table of sections for subtitle II of 
title 46, United States Code, is amended in the item relating to part E 
by striking ``MERCHANT SEAMEN LICENSES, CERTIFICATES, AND DOCUMENTS'' 
and inserting ``MERCHANT MARINER CREDENTIALS''.

SEC. 635. RENEWAL OF MERCHANT MARINER LICENSES AND DOCUMENTS.

    Section 7507 of title 46, United States Code, is amended by adding 
at the end the following:
    ``(d) Renewal.--With respect to any renewal of a valid merchant 
mariner credential issued under this part that is not an extension 
under subsection (a) or (b), the validity period of such credential 
shall begin the day after the expiration of the current credential.''.

SEC. 636. MERCHANT SEAMEN LICENSES, CERTIFICATES, AND DOCUMENTS; 
              MANNING OF VESSELS.

    (a) Citizenship or Noncitizen Nationality.--
            (1) In general.--Section 7102 of title 46, United States 
        Code, is amended--
                    (A) in the section heading, by inserting ``or 
                noncitizen nationality'' after ``Citizenship''; and
                    (B) by inserting ``or noncitizen nationals (as such 
                term is described in section 308 of the Immigration and 
                Nationality Act (8 U.S.C. 1408))'' after ``citizens of 
                the United States''.
            (2) Clerical amendment.--The table of sections for chapter 
        71 of title 46, United States Code, is amended by striking the 
        item relating to section 7102 and inserting the following:

``7102. Citizenship or noncitizen nationality.''.
    (b) Citizenship or Noncitizen Nationality Notation on Merchant 
Mariners' Documents.--
            (1) In general.--Section 7304 of title 46, United States 
        Code, is amended--
                    (A) in the section heading, by inserting ``or 
                noncitizen nationality'' after ``Citizenship''; and
                    (B) by inserting ``or noncitizen national (as such 
                term is described in section 308 of the Immigration and 
                Nationality Act (8 U.S.C. 1408))'' after ``citizen of 
                the United States''.
            (2) Clerical amendment.--The table of sections for chapter 
        73 of title 46, United States Code, is amended by striking the 
        item relating to section 7304 and inserting the following:

``7304. Citizenship or noncitizen nationality notation on merchant 
                            mariners' documents.''.
    (c) Citizenship or Noncitizen Nationality.--
            (1) In general.--Section 8103 of title 46, United States 
        Code, is amended--
                    (A) in the section heading by inserting ``or 
                noncitizen nationality'' after ``Citizenship'';
                    (B) in subsection (a), by inserting ``or noncitizen 
                national'' after ``citizen of the United States'';
                    (C) in subsection (b)--
                            (i) in paragraph (1)(A)(i), by inserting 
                        ``or noncitizen national'' after ``citizen of 
                        the United States''; and
                            (ii) in paragraph (3)--
                                    (I) in the matter preceding 
                                subparagraph (A), by inserting ``or 
                                noncitizen nationality'' after 
                                ``citizenship''; and
                                    (II) in subparagraph (C), by 
                                inserting ``or noncitizen nationals'' 
                                after ``citizens of the United 
                                States'';
                    (D) in subsection (c), by inserting ``or noncitizen 
                nationals'' after ``citizens of the United States'';
                    (E) in subsection (d)--
                            (i) in paragraph (1), by inserting ``or 
                        noncitizen nationals'' after ``citizens of the 
                        United States''; and
                            (ii) in paragraph (2), by inserting ``or 
                        noncitizen national'' after ``citizen of the 
                        United States'' each place it appears;
                    (F) in subsection (e), in the matter preceding 
                paragraph (1), by inserting ``or noncitizen national'' 
                after ``citizen of the United States'' each place it 
                appears;
                    (G) in subsection (i)(1)(A), by inserting ``or 
                noncitizen national'' after ``citizen of the United 
                States'';
                    (H) in subsection (k)(1)(A), by inserting ``or 
                noncitizen national'' after ``citizen of the United 
                States''; and
                    (I) by adding at the end the following:
    ``(l) Noncitizen National Defined.--In this section, the term 
`noncitizen national' means an individual described in section 308 of 
the Immigration and Nationality Act (8 U.S.C. 1408).''.
            (2) Clerical amendment.--The table of sections for chapter 
        81 of title 46, United States Code, is amended by striking the 
        item relating to section 8103 and inserting the following:

``8103. Citizenship or noncitizen nationality and Navy Reserve 
                            requirements.''.
    (d) Command of Documented Vessels.--Section 12131(a) of title 46, 
United States Code, is amended by inserting ``or noncitizen national 
(as such term is described in section 308 of the Immigration and 
Nationality Act (8 U.S.C. 1408))'' after ``citizen of the United 
States''.
    (e) Invalidation of Certificates of Documentation.--Section 
12135(2) of title 46, United States Code, is amended by inserting ``or 
noncitizen national (as such term is described in section 308 of the 
Immigration and Nationality Act (8 U.S.C. 1408))'' after ``citizen of 
the United States''.

SEC. 637. REACTIVATION OF EXPIRED LICENSE.

    (a) In General.--Chapter 75 of subtitle II of part E, of title 46, 
United States Code, is amended by adding at the end the following:
``Sec. 7512. Authority for reactivation of United States Merchant 
              Mariner credentials
    ``(a) Licenses and Certificates of Registry.--Notwithstanding 
sections 7106 and 7107, the Secretary of the department in which the 
Coast Guard is operating may renew for not more than 2 years an expired 
license or certificate of registry issued for an individual under 
chapter 71 if the Secretary determines that the renewal is in response 
to a national emergency declared by Congress or declared under section 
201 of the National Emergencies Act (50 U.S.C. 1621), as deemed 
necessary by the Secretary.
    ``(b) Merchant Mariner Documents.--Notwithstanding section 7302(g), 
the Secretary may renew for not more than 2 years an expiring merchant 
mariner's document issued for an individual under chapter 73 if the 
Secretary determines that the renewal is in response to a national 
emergency proclaimed by the President or declared by Congress, as 
deemed necessary by the Secretary.
    ``(c) Manner of Renewal.--Any renewal granted under this section 
may be granted to individual seamen or a specifically identified group 
of seamen.''.
    (b) Clerical Amendment.--The table of sections for chapter 75 of 
title 46, United States Code, is amended by adding at the end the 
following:

``7512. Authority for reactivation of United States Merchant Mariner 
                            credentials.''.

       TITLE VII--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

SEC. 701. ESTABLISHMENT OF THE MARITIME SECURITY TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. MARITIME SECURITY TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Maritime Security 
Trust Fund', consisting of such amounts as may be--
            ``(1) appropriated to such Trust Fund as provided in this 
        section, or
            ``(2) credited to such Trust Fund as provided in section 
        9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Trust Fund amounts equivalent to--
            ``(1) the taxes received in the Treasury under--
                    ``(A) section 1352 (relating to alternative tax on 
                qualifying shipping activities),
                    ``(B) section 60301 of title 46, United States Code 
                (relating to regular tonnage taxes),
                    ``(C) section 60302 of title 46, United States Code 
                (relating to special tonnage taxes), and
                    ``(D) section 60303 of title 46, United States Code 
                (relating to light money),
            ``(2) the amount received in the Treasury and attributable 
        to revenue collected from duties imposed--
                    ``(A) under section 466 of the Tariff Act of 1930 
                (19 U.S.C. 1466) (relating to equipment and repair of 
                vessels),
                    ``(B) on and after July 6, 2018, with respect to 
                articles of the People's Republic of China pursuant to 
                section 301 of the Trade Act of 1974 (19 U.S.C. 2411), 
                notice of which was published in the Federal Register 
                on June 20, 2018 (83 Fed. Reg. 28710), and
                    ``(C) under section 60502 of title 46, United 
                States Code (relating to discriminating duty on goods 
                imported in foreign vessels or from contiguous 
                countries),
            ``(3) any penalties paid with respect to a vessel pursuant 
        to--
                    ``(A) section 436 of the Tariff Act of 1930 (19 
                U.S.C. 1436),
                    ``(B) section 453 of the Tariff Act of 1930 (19 
                U.S.C. 1453),
                    ``(C) section 454 of the Tariff Act of 1930 (19 
                U.S.C. 1454),
                    ``(D) section 464 of the Tariff Act of 1930 (19 
                U.S.C. 1464),
                    ``(E) section 497 of the Tariff Act of 1930 (19 
                U.S.C. 1497),
                    ``(F) section 584 of the Tariff Act of 1930 (19 
                U.S.C. 1584),
                    ``(G) section 592 of the Tariff Act of 1930 (19 
                U.S.C. 1592),
                    ``(H) section 593A of the Tariff Act of 1930 (19 
                U.S.C. 1593a),
                    ``(I) section 7 of the Act of June 19, 1886 (24 
                Stat. 81, chapter 421; 19 U.S.C. 1706a),
                    ``(J) section 2107 of title 46, United States Code,
                    ``(K) section 2302 of title 46, United States Code,
                    ``(L) section 3318 of title 46, United States Code,
                    ``(M) section 3718 of title 46, United States Code,
                    ``(N) section 4106 of title 46, United States Code,
                    ``(O) section 5116 of title 46, United States Code,
                    ``(P) section 11303 of title 46, United States 
                Code,
                    ``(Q) section 11501 of title 46, United States 
                Code,
                    ``(R) section 12151 of title 46, United States 
                Code,
                    ``(S) section 12507 of title 46, United States 
                Code,
                    ``(T) section 14701 of title 46, United States 
                Code,
                    ``(U) section 30707 of title 46, United States 
                Code, with respect to the portion of the fine that goes 
                to the United States Government under subsection (c) of 
                such section 30707,
                    ``(V) section 31309 of title 46, United States 
                Code,
                    ``(W) section 31330 of title 46, United States 
                Code,
                    ``(X) section 41107 of title 46, United States 
                Code,
                    ``(Y) section 41108 of title 46, United States 
                Code,
                    ``(Z) section 42108 of title 46, United States 
                Code,
                    ``(AA) section 44104 of title 46, United States 
                Code,
                    ``(BB) section 70052 of title 46, United States 
                Code,
                    ``(CC) section 70119 of title 46, United States 
                Code,
                    ``(DD) section 70506 of title 46, United States 
                Code, and
                    ``(EE) section 80509 of title 46, United States 
                Code, and
            ``(4) any revenue generated in connection with the seizure 
        and forfeiture of a maritime vessel under--
                    ``(A) section 3 of the Act of August 5, 1935 (49 
                Stat. 518, chapter 438; 19 U.S.C. 1703),
                    ``(B) section 70052 of title 46, United States 
                Code, and
                    ``(C) section 70507 of title 46, United States 
                Code.
    ``(c) Expenditures From Trust Fund.--Amounts in the Maritime 
Security Trust Fund shall be available, as provided by appropriation 
Acts, for making expenditures before October 1, 2035, to meet those 
obligations of the United States heretofore and hereafter incurred 
which are authorized to be paid out of the Maritime Security Trust Fund 
under the SHIPS for America Act of 2024''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. Maritime Security Trust Fund.''.

SEC. 702. UNITED STATES VESSEL INVESTMENT CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48E the following new section:

``SEC. 48F. UNITED STATES VESSEL INVESTMENT CREDIT.

    ``(a) In General.--For purposes of section 46, the United States 
Vessel Investment credit for any taxable year is an amount equal to the 
applicable percentage of any qualified investment for such taxable year 
with respect to any qualified vessel.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage with respect to any qualified vessel shall be an 
amount equal to the sum of--
            ``(1) 33 percent, plus
            ``(2) in the case of any qualified vessel for which the 
        owner of such vessel will, as part of the agreement described 
        in subsection (d)(1)(F) and for the duration of such agreement, 
        obtain protection and indemnity insurance with respect to such 
        vessel from an insurance company that is domiciled and 
        headquartered in the United States and is an underwriter that 
        is approved by the Maritime Administrator, 5 percent, plus
            ``(3) in the case of any qualified vessel which is 
        classified by and designed in accordance with the rules of the 
        American Bureau of Shipping or any other classification society 
        headquartered in the United States and recognized by the 
        Secretary of the department in which the Coast Guard is 
        operating in accordance with section 3316 of title 46, United 
        States Code, 2 percent.
    ``(c) Qualified Investment.--For purposes of subsection (a), the 
qualified investment with respect to any qualified vessel is equal to 
the amount paid or incurred by the taxpayer in connection with the 
construction, repowering, or reconstruction of such vessel--
            ``(1) in a shipyard of the United States, and
            ``(2) by an entity which is not a foreign entity of 
        concern.
    ``(d) Qualified Vessel.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified vessel' means a cargo vessel--
                    ``(A) which is a United States flag vessel (as 
                defined in section 1355),
                    ``(B) which, in the case of any repowering or 
                reconstruction of such vessel, was originally 
                constructed in the United States,
                    ``(C) which operates in providing transportation in 
                the United States foreign trade (as such term is 
                defined in section 1355(a)),
                    ``(D) which is not a passenger vessel, as defined 
                in section 2101 of title 46, United States Code,
                    ``(E) which is--
                            ``(i) a bulk carrier vessel,
                            ``(ii) a tanker vessel,
                            ``(iii) a roll-on/roll-off vessel,
                            ``(iv) a container vessel,
                            ``(v) a multi-purpose vessel,
                            ``(vi) a cable vessel,
                            ``(vii) a heavy-lift vessel, or
                            ``(viii) any other type of vessel 
                        determined appropriate by the Maritime 
                        Administrator, in consultation with the 
                        Maritime Security Board,
                    ``(F) which, pursuant to an agreement between the 
                taxpayer and the Maritime Administrator, operates as a 
                vessel of the United States for a period of not less 
                than 10 years, and
                    ``(G) the construction of which begins before 
                January 1, 2032.
            ``(2) Exclusion related to foreign entities of concern.--
        The term `qualified vessel' shall not include a vessel which--
                    ``(A) is, or was previously, owned or operated by a 
                foreign entity of concern,
                    ``(B) was constructed, repowered, or reconstructed 
                in a shipyard which is owned or operated by a foreign 
                entity of concern, or
                    ``(C) was registered as a vessel of a foreign 
                country of concern at any time prior to being placed in 
                service by the taxpayer.
    ``(e) Definitions.--
            ``(1) Vessels.--For purposes of subsection (d)(1)(E), any 
        term used in such paragraph which is also used in chapter 536 
        of title 46, United States Code, shall have the same meaning as 
        when used in such chapter.
            ``(2) Foreign entity of concern; foreign country of 
        concern.--For purposes of this section, the terms `foreign 
        entity of concern' and `foreign country of concern' have the 
        same meaning given such terms under section 4 of the SHIPS for 
        America Act of 2024.
    ``(f) Certain Progress Expenditure Rules Made Applicable.--Rules 
similar to the rules of subsections (c)(4) and (d) of section 46 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of subsection (a).
    ``(g) Regulations.--The Secretary, in consultation with the 
Maritime Administrator, shall issue such regulations or other guidance 
as may be necessary or appropriate to carry out the purposes of this 
section, including any regulations or guidance which may be necessary 
or appropriate to recapture the benefit of any credit determined under 
this section with respect to any qualified vessel, or any increase in 
the applicable percentage under subsection (b) with respect to any 
qualified vessel, in the case of any taxpayer which fails to comply 
with the terms of the agreement described in subsection (d)(1)(F) with 
respect to such qualified vessel.''.
    (b) Conforming Amendments.--
            (1) Section 46 of the Internal Revenue Code of 1986, as 
        amended by section 13702(b)(1) of Public Law 117-169, is 
        amended--
                    (A) in paragraph (6), by striking ``and'' at the 
                end,
                    (B) in paragraph (7), by striking the period at the 
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
            ``(8) the United States Vessel Investment credit.''.
            (2) Section 49(a)(1)(C) of such Code, as amended by section 
        13702(b)(2) of Public Law 117-169, is amended--
                    (A) in clause (vii), by striking ``and'' at the 
                end,
                    (B) in clause (viii), by striking the period at the 
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
                            ``(ix) with respect to any qualified vessel 
                        (as defined in section 48F(d)), the portion of 
                        the basis of such vessel attributable to 
                        amounts paid or incurred by the taxpayer in 
                        connection with the construction, repowering, 
                        or reconstruction of such vessel.''.
            (3) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48E the following new item:

``Sec. 48F. United States Vessel Investment credit.''.
    (c) Recapture for Failure to Operate as a Vessel of the United 
States.--Section 50(a) of the Internal Revenue Code of 1986 is 
amended--
            (1) in paragraph (4), by striking ``or any applicable 
        transaction to which paragraph (3)(A) applies'' and inserting 
        ``any applicable transaction to which paragraph (3)(A) applies, 
        or any violation to which paragraph (6)(A) applies'',
            (2) by redesignating paragraph (6) as paragraph (7),
            (3) by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) Failure to operate qualified vessel as a vessel of 
        the united states.--
                    ``(A) In general.--If an applicable taxpayer 
                violates any of the requirements of the agreement 
                described in section 48F(d)(1)(F) during the duration 
                of such agreement with respect to any investment credit 
                property which is eligible for the United States Vessel 
                Investment credit under section 48F(a), then the tax 
                under this chapter for the taxable year in which such 
                violation occurs shall be increased by 100 percent of 
                the aggregate decrease in the credits allowed under 
                section 38 for all prior taxable years which would have 
                resulted solely from reducing to zero any credit 
                determined under section 46 which is attributable to 
                the United States Vessel Investment credit under 
                section 48F(a) with respect to such property.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the applicable taxpayer demonstrates to the 
                satisfaction of the Secretary and the Maritime 
                Administrator that the taxpayer is in compliance with 
                the agreement described in section 48F(d)(1)(F) within 
                30 days of a determination and notice by the Secretary.
                    ``(C) Regulations and guidance.--The Secretary 
                shall issue such regulations or other guidance as the 
                Secretary determines necessary or appropriate to carry 
                out the purposes of this paragraph, including 
                regulations or other guidance which provide for 
                requirements for recordkeeping or information reporting 
                for purposes of administering the requirements of this 
                paragraph.'', and
            (4) in paragraph (7) (as redesignated by paragraph (2))--
                    (A) in subparagraph (C), by striking ``or (3)'' and 
                inserting ``(3), or (4)'', and
                    (B) by striking subparagraph (E) and inserting the 
                following:
                    ``(E) Applicable taxpayer.--For purposes of this 
                subsection, the term `applicable taxpayer' means any 
                taxpayer who has been allowed--
                            ``(i) for purposes of paragraph (3), a 
                        credit under section 48D(a) for any prior 
                        taxable year, or
                            ``(ii) for purposes of paragraph (6), a 
                        credit under section 48F(a) for any prior 
                        taxable year.''.
    (d) Elective Payment and Transfer of Credit.--
            (1) Elective payment.--Section 6417 of the Internal Revenue 
        Code of 1986 is amended--
                    (A) in subsection (b), by adding at the end the 
                following:
            ``(13) The United States Vessel Investment credit under 
        section 48F.'', and
                    (B) in subsection (d)(1)--
                            (i) in subparagraph (E), by striking ``(C), 
                        or (D)'' each place it appears and inserting 
                        ``(C), (D), or (E)'',
                            (ii) by redesignating subparagraph (E) (as 
                        amended by clause (i)) as subparagraph (F), and
                            (iii) by inserting after subparagraph (D) 
                        the following:
                    ``(E) Election with respect to united states vessel 
                investment credit.--If a taxpayer other than an entity 
                described in subparagraph (A) makes an election under 
                this subparagraph with respect to any taxable year in 
                which such taxpayer has made a qualified investment 
                with respect to any qualified vessel (as defined in 
                section 48F), such taxpayer shall be treated as an 
                applicable entity for purposes of this section for such 
                taxable year, but only with respect to the credit 
                described in subsection (b)(13).''.
            (2) Transfer.--Section 6418(f)(1)(A) of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following:
                            ``(xii) The United States Vessel Investment 
                        credit under section 48F.''.
    (e) Exception Relating to Alternative Tax on Qualifying Shipping 
Activities.--Section 1357(c) of the Internal Revenue Code of 1986 is 
amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraph (2) or (4)'', and
            (2) by adding at the end the following:
            ``(4) Exception for united states vessel investment 
        credit.--Paragraph (1) shall not apply with respect to any 
        credit allowed to the taxpayer under section 48F.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2024.

SEC. 703. CERTAIN PAYMENTS FOR MARITIME SECURITY EXCLUDED FROM GROSS 
              INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139I the following new subsection:

``SEC. 139J. MARITIME SECURITY PAYMENTS.

    ``(a) In General.--Gross income shall not include any payment made 
pursuant to--
            ``(1) section 53106 of title 46, United States Code,
            ``(2) section 53801 of such title,
            ``(3) section 53206 of such title,
            ``(4) section 53406 of such title,
            ``(5) section 53604 of such title,
            ``(6) section 54101 of such title, or
            ``(7) section 54301 of such title.
    ``(b) Denial of Double Benefit.--No deduction or credit shall be 
allowed for, or by reason of, any expenditure to the extent of the 
amount excluded under subsection (a) for any payment which was provided 
with respect to such expenditure. The adjusted basis of any property 
shall be reduced by the amount excluded under subsection (a) which was 
provided with respect to such property.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139I the following new item:

``Sec. 139J. Maritime security payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 704. ELIMINATION OF 30-DAY LIMITATION ON DOMESTIC OPERATIONS.

    (a) In General.--Section 1355 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (f), by striking paragraph (4), and
            (2) in subsection (g)(2), by striking subparagraph (D).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

SEC. 705. QUALIFYING SHIPPING ACTIVITIES.

    Section 1356(b) of the Internal Revenue Code of 1986 (relating to 
qualifying shipping activities) is amended by striking ``activities in 
operating'' and inserting ``the carriage of goods (as defined in 
section 1 of the Carriage of Goods by Sea Act (46 U.S.C. 30701 note)) 
by''.

SEC. 706. QUALIFYING VESSEL.

    Section 1355(a) of the Internal Revenue Code of 1986 is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) Qualifying vessel.--The term `qualifying vessel' 
        means a vessel which is--
                    ``(A) self-propelled (or a combination self-
                propelled and non-self-propelled),
                    ``(B) a United States flag vessel or a United 
                States-owned foreign flag vessel,
                    ``(C) not less than 6,000 deadweight tons, and
                    ``(D) used exclusively in the United States foreign 
                trade during the period that the election under this 
                subchapter is in effect.'', and
            (2) by adding at the end the following:
            ``(8) United states-owned foreign flag vessel.--The term 
        `United States-owned foreign flag vessel' means any vessel 
        which--
                    ``(A) is documented under the laws of a country 
                (other than the United States) or a foreign registry 
                which is not a foreign country of concern (as defined 
                by section 4 of the SHIPS for America Act of 2024),
                    ``(B) is owned by a person which--
                            ``(i)(I) is a citizen of the United States 
                        (as determined under section 50501 of title 46, 
                        United States Code), or
                            ``(II) is controlled (within the meaning of 
                        section 954(d)(3)) by a citizen of the United 
                        States (as so determined), and
                            ``(ii) owns a fleet of United States flag 
                        vessels, and
                    ``(C) has in effect a Voluntary Intermodal Sealift 
                Agreement or Voluntary Tanker Agreement with the 
                Maritime Administrator.''.

SEC. 707. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by section 702(a), is 
amended by inserting after section 48F the following new section:

``SEC. 48G. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.

    ``(a) In General.--For purposes of section 46, the shipyard 
investment tax credit for any taxable year is an amount equal to 25 
percent of the qualified investment for such taxable year with respect 
to any qualified shipyard facility of a taxpayer described in section 
48D(c)(1).
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment with respect to any qualified shipyard 
        facility for any taxable year is the basis of any qualified 
        property placed in service by the taxpayer during such taxable 
        year which is part of a qualified shipyard facility.
            ``(2) Qualified property.--The term `qualified property' 
        shall have the same meaning given such term in section 
        48D(b)(2), except that subparagraph (A)(iv) of such section 
        shall be applied by substituting `qualified shipyard facility' 
        for `advanced manufacturing facility'.
            ``(3) Qualified shipyard facility.--For purposes of this 
        section, the term `qualified shipyard facility' means a 
        facility--
                    ``(A) which is located within the United States 
                (including any territory or possession of the United 
                States), and
                    ``(B) for which the primary purpose is--
                            ``(i) constructing or repairing commercial 
                        or military oceangoing vessels,
                            ``(ii) manufacturing components which are 
                        critical (as determined by the Secretary, in 
                        consultation with the Secretary of the Navy and 
                        the Maritime Administrator) to the operation of 
                        commercial or military oceangoing vessels, or
                            ``(iii) manufacturing equipment which is 
                        used to produce or repair commercial or 
                        military oceangoing vessels.
            ``(4) Certain progress expenditure rules made applicable.--
        Rules similar to the rules of subsections (c)(4) and (d) of 
        section 46 (as in effect on the day before the date of the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of subsection (a).
    ``(c) Denial of Double Benefit.--This section shall not apply to 
any property placed in service by the taxpayer during the taxable year 
if a credit was allowed under section 48F to such taxpayer during such 
taxable year.
    ``(d) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section.
    ``(e) Termination of Credit.--The credit allowed under this section 
shall not apply to property placed in service after December 31, 
2031.''.
    (b) Conforming Amendments.--
            (1) Section 46 of the Internal Revenue Code of 1986, as 
        amended by section 702(b)(1), is amended--
                    (A) in paragraph (7), by striking ``and'' at the 
                end,
                    (B) in paragraph (8), by striking the period at the 
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
            ``(9) the shipyard investment tax credit.''.
            (2) Section 49(a)(1)(C) of such Code, as amended by section 
        702(b)(2), is amended--
                    (A) in clause (viii), by striking ``and'' at the 
                end,
                    (B) in clause (ix), by striking the period at the 
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
                            ``(x) the basis of any qualified property 
                        (as defined in subsection (b)(2) of section 
                        48G) which is part of a qualified shipyard 
                        facility (as defined in subsection (b)(3) of 
                        such section).''.
            (3) Section 50(a)(2)(E) of such Code, as amended by section 
        13702(b) of Public Law 117-169, is amended by striking ``or 
        48E(e)'' and inserting ``48E(e), or 48G(b)(4)''.
            (4) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code, as amended by section 
        702(b)(3), is amended by inserting after the item relating to 
        section 48F the following new item:

``Sec. 48G. Shipyard investment tax credit.''.
    (c) Elective Payment and Transfer of Credit.--
            (1) Elective payment.--Section 6417 of the Internal Revenue 
        Code of 1986, as amended by section 702, is amended--
                    (A) in subsection (b), by adding at the end the 
                following:
            ``(14) The shipyard investment tax credit under section 
        48G.'', and
                    (B) in subsection (d)(1)--
                            (i) in subparagraph (F), by striking ``(D), 
                        or (E)'' each place it appears and inserting 
                        ``(D), (E), or (F)'',
                            (ii) by redesignating subparagraph (F) (as 
                        amended by clause (i)) as subparagraph (G), and
                            (iii) by inserting after subparagraph (E) 
                        the following:
                    ``(F) Election with respect to the shipyard 
                investment tax credit.--If a taxpayer other than an 
                entity described in subparagraph (A) makes an election 
                under this subparagraph with respect to any taxable 
                year in which such taxpayer has placed in service any 
                qualified property which is part of a qualified 
                shipyard facility (as defined in section 48G), such 
                taxpayer shall be treated as an applicable entity for 
                purposes of this section for such taxable year, but 
                only with respect to the credit described in subsection 
                (b)(14).''.
            (2) Transfer.--Section 6418(f)(1)(A) of the Internal 
        Revenue Code of 1986, as amended by section 702, is amended by 
        adding at the end the following:
                            ``(xiii) The shipyard investment tax credit 
                        under section 48G.''.
    (d) Exception Relating to Alternative Tax on Qualifying Shipping 
Activities.--Paragraph (4) of section 1357(c) of the Internal Revenue 
Code of 1986, as added by section 702(e), is amended to read as 
follows:
            ``(4) Exception for united states vessel investment credit 
        and shipyard investment tax credit.--Paragraph (1) shall not 
        apply with respect to any credit allowed to the taxpayer under 
        section 48F or 48G.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2024.

SEC. 708. TAX INCENTIVES RELATING TO MERCHANT MARINE CAPITAL 
              CONSTRUCTION FUNDS.

    (a) In General.--Section 7518 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--The amount deposited in a fund 
        established under chapter 535 of title 46 of the United States 
        Code (hereinafter in this section referred to as a `capital 
        construction fund') for a taxable year may not exceed the 
        amount specified in the agreement under section 53503(a) of 
        such title, which shall be an amount that is related to a 
        commitment to invest the revenue from the capital construction 
        fund into funding the construction of new vessels or funding 
        cargo handling equipment.'',
                    (B) in paragraph (2), by striking ``paragraph 
                (1)(B)'' each place it appears and inserting 
                ``paragraph (1)'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) Revenue.--For the purposes of paragraph (1), the 
        revenue from the capital construction fund may include--
                    ``(A) income attributable to the operation of any 
                agreement vessel in foreign commerce or domestic trade 
                or fisheries or the operation of a marine terminal in 
                the United States,
                    ``(B) the net proceeds from the disposition of an 
                agreement vessel or cargo handling equipment or 
                insurance or indemnity attributable to the vessel or 
                cargo handling equipment,
                    ``(C) the receipts from the investment or 
                reinvestment of amounts held in the fund, and
                    ``(D) the amount allowable as a deduction under 
                section 167 for the taxable year with respect to the 
                agreement vessels or cargo handling equipment.'',
            (2) in subsection (b)(2), by striking ``Amounts in any 
        capital construction fund'' and all that follows through ``(not 
        in excess of 60 percent)'' and inserting ``An agreed 
        percentage'',
            (3) in subsection (e)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--A qualified withdrawal from the fund is 
        one made in accordance with the terms of the agreement but only 
        if it is for--
                    ``(A) the acquisition, construction, repowering, or 
                reconstruction of--
                            ``(i) a qualified vessel or a barge or 
                        container that is part of the complement of a 
                        qualified vessel, or
                            ``(ii) cargo handling equipment, or
                    ``(B) the payment of the principal on indebtedness 
                incurred in the acquisition, construction, repowering, 
                or reconstruction of--
                            ``(i) a qualified vessel or a barge or 
                        container that is part of the complement of a 
                        qualified vessel, or
                            ``(ii) cargo handling equipment.
                Except to the extent provided in regulations prescribed 
                by the Secretary, subparagraph (A), and so much of 
                subparagraph (B) as relates only to barges and 
                containers, shall apply only with respect to barges and 
                containers constructed in the United States.'',
                    (B) by redesignating paragraph (2) as paragraph 
                (4), and
                    (C) by inserting after paragraph (1) the following:
            ``(2) Fully automated cargo handling equipment.--No 
        withdrawals may be made from a capital construction fund to 
        purchase fully automated cargo handling equipment that is 
        remotely operated or remotely monitored with or without the 
        exercise of human intervention or control, if the Secretary 
        determines such equipment would result in a net loss of jobs 
        within a marine terminal.
            ``(3) Prohibition on people's republic of china cranes.--No 
        withdrawals may be made from a capital construction fund to 
        purchase cranes manufactured in the People's Republic of 
        China.'',
            (4) in subsection (f)--
                    (A) in paragraph (2), by inserting ``cargo handling 
                equipment,'' after ``barge,'' both places the term 
                appears,
                    (B) in paragraph (3), by inserting ``cargo handling 
                equipment,'' after ``barge,'' both places the term 
                appears, and
                    (C) in paragraph (4), by inserting ``cargo handling 
                equipment,'' after ``barges,'',
            (5) in subsection (g)--
                    (A) in the flush matter at the end of paragraph 
                (2), by inserting ``cargo handling equipment,'' after 
                ``advanced'', and
                    (B) in paragraph (5)(A)--
                            (i) in the heading, by striking ``25 
                        years'' and inserting ``15 years'',
                            (ii) by striking ``26th, 27th, 28th, 29th, 
                        or 30th taxable year'' and inserting 
                        ``following specified taxable year'', and
                            (iii) by striking the table contained 
                        therein and inserting the following:
``If the amount remains in the fund The applicable percentage is-
        at the close of the-
        16th taxable year.................................. 20 percent 
        17th taxable year.................................. 40 percent 
        18th taxable year.................................. 60 percent 
        19th taxable year.................................. 80 percent 
        20th taxable year................................100 percent'',
        and
            (6) in subsection (i), by striking ``as in effect on the 
        date of the enactment of this section''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.

SEC. 709. EXEMPTION OF STUDENT INCENTIVE PAYMENT AGREEMENTS FROM GROSS 
              INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986, as amended by section 703, is further 
amended by inserting after section 139J the following new section:

``SEC. 139K. STUDENT INCENTIVE PAYMENT AGREEMENTS.

    ``In the case of an individual who has entered into an agreement 
described in section 51509 of title 46, United States Code, gross 
income does not include any student incentive payments made to such 
individual pursuant to such agreement.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986, as 
amended by section 703, is further amended by inserting after the item 
relating to section 139J the following new item:

``Sec. 139K. Student incentive payment agreements.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to payments made after December 31, 2024.

SEC. 710. MARITIME FUEL TAX PARITY.

    Section 4041(g) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new sentence: ``For purposes of 
subsection (a)(2), the exemption under paragraph (1) shall also apply 
to fuel sold for use or used by a vessel which is both described in 
section 4042(c)(1) and actually engaged in trade between the Atlantic 
(including the Gulf of Mexico) or Pacific ports of the United States 
(including any territory or possession of the United States).''.
                                 <all>
```