I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Shipbuilding and Harbor Infrastructure for Prosperity 


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1 and Security for America Act of 2024’’ or the ‘‘SHIPS 

2 for America Act of 2024’’. 

3 (b) TABLE OF CONTENTS.—The table of contents of 

4 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. 


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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. 


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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. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) Strategic sealift, made up of Government 

4 and commercial vessels and mariners, is a critical 


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1 capability for executing the maritime defense strat2 egy and the wartime and peacetime economy of the 

3 United States. 

4 (2) Ensuring a modern and ready capability 

5 will require significant investment, policy 

6 prioritization, and the innovation of the people of the 

7 United States. 

8 (3) The worldwide ocean economy is worth be9 tween $3,000,000,000,000 and $6,000,000,000,000, 

10 according to the United Nations Conference on 

11 Trade and Development. Yet, vessels of the United 

12 States carry less than 2 percent of United States 

13 international commercial cargoes by weight. 

14 (4) The United States has fewer than 200 

15 oceangoing vessels of the United States, of which 

16 only approximately 80 vessels participate in inter17 national commerce, compared with more than 5,500 

18 Chinese documented vessels. 

19 (5) With oceans on both sides, the United 

20 States has always been a maritime Nation. Through21 out history, the strength of a maritime Nation has 

22 been directly tied to the strength of its maritime in23 dustry, and the United States won 2 world wars on 

24 the back of a strong maritime industry. 


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1 (6) Decades of neglect by the United States 

2 Government and private industry has weakened the 

3 shipbuilding capacity and maritime workforce of the 

4 United States, contributing to a declining fleet of 

5 shipping vessels of the United States to bring 

6 United States goods to market and support the 

7 United States military during wartime. 

8 (7) Today, there are just 20 shipbuilders in the 

9 United States capable of building oceangoing ves10 sels—down from more than 80 at the end of the 

11 Second World War. 

12 (8) During World War II, the United States 

13 merchant marine powered the Allies to victory with 

14 more than 10,000 oceangoing vessels of the United 

15 States. Today there are just 80 vessels of the United 

16 States engaged in international trade. 

17 (9) The People’s Republic of China has made 

18 investments in the maritime industry a strategic pri19 ority over the past 20 years. 

20 (10) As of 2023, shipyards in the United States 

21 had fewer than 5 shipbuilding orders for oceangoing 

22 vessels, while shipyards in the People’s Republic of 

23 China had more than 1,700 orders, according to 

24 BRS Group. According to the Office of Naval Intel25 ligence, the People’s Republic of China became the 


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1 world’s top shipbuilding and shipping nation, boast2 ing 230 times more shipbuilding capacity than the 

3 United States. 

4 (11) With just 12,000 United States merchant 

5 mariners operating oceangoing vessels, the United 

6 States may not have a sufficient number of mariners 

7 to fully power the strategic sealift vessels necessary 

8 in a future prolonged conflict. 

9 (12) The American Civil Society of Engineers 

10 assesses that the United States has a national main11 tenance backlog amounting to $125,000,000,000 for 

12 bridges, $163,000,000,000 for ports, and 

13 $6,800,000,000 for inland waterways. 

14 (13) The maritime industry is inherently inter15 national. Eighty percent of United States goods are 

16 imported by sea, of which 98 percent come into the 

17 United States on foreign documented vessels. Only 2 

18 percent of such goods come into the United States 

19 on vessels of the United States, leaving the United 

20 States economy disproportionately dependent on 

21 oceangoing trade controlled by often adversarial for22 eign nations. The Nation’s ability to provide services 

23 in both international and interstate commerce is 

24 critical to national and economic defense. 


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1 (14) Since November 2023, vessels engaged in 

2 international commerce have been threatened by the 

3 Houthis, which has threatened global supply chains, 

4 increased costs, and required naval force protection 

5 operations in the Red Sea through the United 

6 States-led Operation Prosperity Guardian that 

7 formed in December 2023. 

8 (15) A fleet of commercial shipping vessels of 

9 the United States, crewed with citizen mariners, that 

10 is competitive in domestic and international trade, 

11 and commercial fleets participating in the United 

12 States peacetime economy enhance the United 

13 States military’s readiness, allow the United States 

14 to more strategically compete with China, and un15 derwrites the security and survival of the United 

16 States in times of crisis and war. 

17 SEC. 3. SENSE OF CONGRESS. 

18 It is the sense of Congress that the United States 

19 must— 

20 (1) create a more favorable domestic and global 

21 maritime environment for vessels of the United 

22 States engaged in international commerce, ship23 building, ship repair, maritime logistics, the mari24 time workforce, and naval power, contributing to as25 sured access to the world’s oceans free from coercion 


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1 from strategic competitors and asymmetric adver2 saries; 

3 (2) increase domestic shipbuilding and ship re4 pair capacity, with programs and policies that enable 

5 the growth of United States shipyards and the mari6 time industrial base, enhance military sealift capac7 ity, expand the United States maritime workforce, 

8 and enhance national security; 

9 (3) revitalize the international fleet of vessels of 

10 the United States and foster a comparative advan11 tage for the United States through targeted incen12 tives and regulatory reforms to make the fleet com13 petitive with international carriers and to gain a sus14 tainable share of the global maritime market in 

15 order to bolster supply chains, strengthen economic 

16 security, and lower prices; 

17 (4) take all measures necessary to ensure that 

18 sufficient military, civil, and commercial resources 

19 will be available with assured access to meet defense 

20 deployment needs and essential economic activities 

21 for our Nation in times of crisis, war, or peace; 

22 (5) recognize that a vibrant commercial ship23 building industry provides redundancies and creates 

24 economies of scale that improve military, Coast 

25 Guard, and Government shipbuilding and support 


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1 military operations through strategic sealift to de2 fend the freedom of the seas; 

3 (6) ensure better coordination between Federal 

4 agencies, including the Maritime Administration, the 

5 United States Coast Guard, the Department of De6 fense, the Federal Maritime Commission, and all 

7 other Federal agencies with a maritime nexus, to 

8 protect, regulate, and support the United States 

9 maritime industry, resolve disputes, and implement 

10 a whole-of-Government national maritime strategy; 

11 (7) establish reliable long-term demand signals 

12 for, and investments in, oceangoing commercial ves13 sels that are built in the United States, documented 

14 under the laws of the United States, and crewed by 

15 United States mariners; 

16 (8) evaluate past and present maritime efforts 

17 to take actions to revitalize the United States mari18 time industry; 

19 (9) strengthen the United States intercoastal 

20 and domestic trade fleet, which is the foundation 

21 upon which a revitalized United States-documented 

22 shipping and domestic shipbuilding industry will be 

23 built; 


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1 (10) recognize the important role that the sup2 port craft, passenger, and fishing vessel fleet play in 

3 the United States maritime industry; 

4 (11) encourage the shipping of commercial 

5 cargo on vessels of the United States, with the aim 

6 of growing the size and carrying capacity of the 

7 international fleet of vessels of the United States; 

8 (12) grow the shipping capacity of vessels of 

9 the United States and guarantee United States Gov10 ernment cargo during peacetime; 

11 (13) develop a whole-of-Government effort to 

12 expand, develop, and protect the maritime work13 force; 

14 (14) recognize the need for more workers in the 

15 maritime sector and stimulate growth in the United 

16 States maritime and shipbuilding industries, includ17 ing by increasing access to early maritime education, 

18 commissioning national marketing campaigns to 

19 demonstrate how United States shipbuilding, United 

20 States-documented shipping, and maritime workers 

21 are critical to national security, and implementing 

22 workforce accelerator programs; 

23 (15) remove barriers to training mariners, in24 cluding reevaluating Coast Guard training require25 ments regarding faculty credentials, instructional faVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 cility designs, sea time requirements, and other iden2 tified barriers, consistent with international treaty 

3 obligations; 

4 (16) expand and nurture a robust mariner 

5 workforce that enhances the national security and 

6 strategic sealift readiness of the United States by in7 creasing the number of United States mariners and 

8 improving existing pathways and establishing new 

9 pathways for new, current, and former merchant 

10 mariners to go to sea; 

11 (17) recognize that the United States Merchant 

12 Marine Academy and our State maritime academies 

13 are critical to training the next generation of li14 censed officers and engineers on vessels of the 

15 United States; 

16 (18) invest and innovate in domestic ship17 building, ship repair, and the shipping capabilities 

18 and capacity of vessels of the United States to ad19 vance the power and influence of the maritime in20 dustry of the United States; 

21 (19) drive multi-stakeholder research, develop22 ment, assessment, and deployment of emerging ma23 rine technologies and best practices related to the 

24 maritime transportation system to ensure United 


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1 States leadership in next-generation shipbuilding, 

2 ship repair, and maritime logistics; 

3 (20) drive modern business and manufacturing 

4 approaches, such as innovative maritime logistics, 

5 clean fuels, and advanced nuclear energy, human6 machine teaming, additive manufacturing, and other 

7 advanced technologies; 

8 (21) review and update regulations governing 

9 vessel design and engineering, vessel and facility op10 eration, and merchant mariner credentialing, in 

11 order to revitalize the United States maritime indus12 try; 

13 (22) seek mutually beneficial relationships with 

14 treaty allies and strategic partners to grow the do15 mestic shipping and shipbuilding industries of the 

16 United States and to share the burden of providing 

17 freedom of navigation on the high seas, while de18 risking the United States maritime domain from the 

19 People’s Republic of China, foreign countries of con20 cern, and asymmetric or emerging maritime threats; 

21 (23) harden critical maritime infrastructure and 

22 networks, and incrementally replace infrastructure 

23 built by foreign adversaries with domestic-built and 

24 allied-built infrastructure; and 


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1 (24) promote the values of the United States 

2 for quality of life, worker safety, environmental stew3 ardship, maritime independence, freedom of the 

4 seas, and the resilience of our oceans, seas, and in5 land waterways. 

6 SEC. 4. DEFINITIONS. 

7 In this Act: 

8 (1) APPROPRIATE COMMITTEES OF CON9 GRESS.—The term ‘‘appropriate committees of Con10 gress’’ means— 

11 (A) the Committee on Armed Services, the 

12 Committee on Commerce, Science, and Trans13 portation, and the Committee on Appropria14 tions of the Senate; and 

15 (B) the Committee on Armed Services, the 

16 Committee on Transportation and Infrastruc17 ture, and the Committee on Appropriations of 

18 the House of Representatives. 

19 (2) DOMESTIC COMMERCE.—The term ‘‘domes20 tic commerce’’ means the transportation of goods or 

21 passengers between places in the United States. 

22 (3) FOREIGN COMMERCE.—The term ‘‘foreign 

23 commerce’’ means— 


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1 (A) commerce or trade between the United 

2 States, its territories or possessions, or the Dis3 trict of Columbia, and a foreign country; and 

4 (B) commerce or trade between foreign 

5 countries. 

6 (4) FOREIGN COUNTRY OF CONCERN.—The 

7 term ‘‘foreign country of concern’’ means— 

8 (A) a country that is a covered nation (as 

9 defined in section 4872(d) of title 10, United 

10 States Code); and 

11 (B) any country that the Maritime Admin12 istrator, in consultation with the Secretary of 

13 Defense, the Secretary of State, the Director of 

14 National Intelligence, and the Chair of the Fed15 eral Maritime Commission, determines to be en16 gaged in conduct that is detrimental to the na17 tional security or foreign policy of the United 

18 States. 

19 (5) FOREIGN ENTITY.—The term ‘‘foreign enti20 ty’’— 

21 (A) means— 

22 (i) a government of a foreign country 

23 or a foreign political party; 

24 (ii) a natural person who is not a law25 ful permanent resident of the United 


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1 States, a citizen of the United States, or 

2 any other protected individual (as such 

3 term is defined in section 274B(a)(3) of 

4 the Immigration and Nationality Act (8 

5 U.S.C. 1324b(a)(3))); or 

6 (iii) a partnership, association, cor7 poration, organization, or other combina8 tion of persons organized under the laws of 

9 or having its principal place of business in 

10 a foreign country; and 

11 (B) includes— 

12 (i) any person owned by, controlled 

13 by, or subject to the jurisdiction or direc14 tion of an entity listed in subparagraph 

15 (A); 

16 (ii) any person, wherever located, who 

17 acts as an agent, representative, or em18 ployee of an entity listed in subparagraph 

19 (A); 

20 (iii) any person who acts in any other 

21 capacity at the order, request, or under the 

22 direction or control, of an entity listed in 

23 subparagraph (A), or of a person whose 

24 activities are directly or indirectly super25 vised, directed, controlled, financed, or 


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1 subsidized in whole or in majority part by 

2 an entity listed in subparagraph (A); 

3 (iv) any person who directly or indi4 rectly through any contract, arrangement, 

5 understanding, relationship, or otherwise, 

6 owns 25 percent or more of the equity in7 terests of an entity listed in subparagraph 

8 (A); 

9 (v) any person with significant re10 sponsibility to control, manage, or direct 

11 an entity listed in subparagraph (A); 

12 (vi) any person, wherever located, who 

13 is a citizen or resident of a country con14 trolled by an entity listed in subparagraph 

15 (A); or 

16 (vii) any corporation, partnership, as17 sociation, or other organization organized 

18 under the laws of a country controlled by 

19 an entity listed in subparagraph (A). 

20 (6) FOREIGN ENTITY OF CONCERN.—The term 

21 ‘‘foreign entity of concern’’ means any foreign entity 

22 that is— 

23 (A) designated as a foreign terrorist orga24 nization by the Secretary of State under section 


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1 219 of the Immigration and Nationality Act (8 

2 U.S.C. 1189); 

3 (B) included on the list of specially des4 ignated nationals and blocked persons main5 tained by the Office of Foreign Assets Control 

6 of the Department of the Treasury; 

7 (C) owned by, controlled by, or subject to 

8 the jurisdiction or direction of a government of 

9 a foreign country of concern; 

10 (D) alleged by the Attorney General to 

11 have been involved in activities for which a con12 viction was obtained under— 

13 (i) chapter 37 of title 18, United 

14 States Code (commonly known as the ‘‘Es15 pionage Act’’) (18 U.S.C. 792 et seq.); 

16 (ii) section 951 or 1030 of title 18, 

17 United States Code; 

18 (iii) chapter 90 of title 18, United 

19 States Code (commonly known as the 

20 ‘‘Economic Espionage Act of 1996’’); 

21 (iv) the Arms Export Control Act (22 

22 U.S.C. 2751 et seq.); 

23 (v) section 224, 225, 226, 227, or 236 

24 of the Atomic Energy Act of 1954 (42 


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1 U.S.C. 2274, 2275, 2276, 2277, and 

2 2284); 

3 (vi) the Export Control Reform Act of 

4 2018 (50 U.S.C. 4801 et seq.); or 

5 (vii) the International Emergency 

6 Economic Powers Act (50 U.S.C. 1701 et 

7 seq.); 

8 (E) designated by the Federal Maritime 

9 Commission as a controlled carrier under chap10 ter 407 of title 46, United States Code; 

11 (F) found by the Federal Maritime Com12 mission to be practicing unfavorable conditions 

13 in foreign trade under chapter 421 or 423 of 

14 title 46, United States Code; or 

15 (G) determined by the Maritime Adminis16 trator, in consultation with the Secretary of De17 fense, the Secretary of State, the Director of 

18 National Intelligence, and the Chair of the Fed19 eral Maritime Commission, to be engaged in un20 authorized conduct that is detrimental to the 

21 national security or foreign policy of the United 

22 States. 

23 (7) VESSEL OF THE UNITED STATES.—The 

24 term ‘‘vessel of the United States’’ has the meaning 


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1 given that term in section 116 of title 46, United 

2 States Code. 

3 TITLE I—OVERSIGHT AND 

4 ACCOUNTABILITY 

5 SEC. 101. MARITIME SECURITY ADVISOR; MARITIME SECU6 RITY BOARD. 

7 (a) AMENDMENTS.—Chapter 504 of part A of sub8 title V of title 46, United States Code, is amended— 

9 (1) by striking the chapter heading and insert10 ing the following: ‘‘OVERSIGHT AND AC11 COUNTABILITY’’; and 

12 (2) by striking section 50401 and inserting the 

13 following: 

14 ‘‘§ 50401. Maritime Security Advisor; Maritime Secu15 rity Board 

16 ‘‘(a) MARITIME SECURITY ADVISOR.— 

17 ‘‘(1) IN GENERAL.—Not later than 60 days 

18 after the date of enactment of this section, the 

19 President shall appoint a Special Advisor to the 

20 President (to be known as the ‘Maritime Security 

21 Advisor’) for coordinating national maritime affairs 

22 and policy, including developing, updating, and im23 plementing the National Maritime Strategy as re24 quired under section 50114 of this title. 


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1 ‘‘(2) DUTIES.—The Maritime Security Advisor 

2 appointed under paragraph (1) shall serve as the 

3 Chair of the Maritime Security Board, shall be the 

4 principal advisor to the President on all issues re5 lated to the maritime industry, shipbuilding, and 

6 ship repair, and shall be responsible for developing, 

7 updating, and implementing the National Maritime 

8 Strategy under section 50114 of this title within and 

9 across the Federal Government. 

10 ‘‘(3) NATIONAL SECURITY COUNCIL.—The Mar11 itime Security Advisor shall have a seat on the Na12 tional Security Council. 

13 ‘‘(4) OFFICE OF THE MARITIME SECURITY AD14 VISOR.— 

15 ‘‘(A) IN GENERAL.—There is established in 

16 the Executive Office of the President, an Office 

17 of the Maritime Security Advisor. The Maritime 

18 Security Advisor described in this subsection 

19 shall be the head of such Office. 

20 ‘‘(B) EMPLOYEES; CONTRACTS.—In car21 rying out the functions under this section, the 

22 Maritime Security Advisor is authorized to— 

23 ‘‘(i) appoint such officers and employ24 ees as the Maritime Security Advisor may 

25 deem necessary to perform the functions 


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1 now or hereafter vested in the Maritime 

2 Security Advisor and to prescribe their du3 ties; and 

4 ‘‘(ii) enter into contracts and other 

5 arrangements for studies, analyses, and 

6 other services with public agencies and 

7 with private persons, organizations, or in8 stitutions, and make such payments as the 

9 Maritime Security Advisor deems necessary 

10 to carry out the provisions of this section. 

11 ‘‘(b) MARITIME SECURITY BOARD.—Not later than 

12 90 days after the date of enactment of this section, the 

13 President shall establish a board, to be known as the ‘Mar14 itime Security Board’ (in this section referred to as the 

15 ‘Board’). 

16 ‘‘(1) COMPOSITION.— 

17 ‘‘(A) IN GENERAL.—The Board shall be 

18 comprised of the following individuals and rep19 resentatives: 

20 ‘‘(i) The Maritime Security Advisor 

21 described in subsection (a). 

22 ‘‘(ii) The Maritime Administrator. 

23 ‘‘(iii) The Commandant of the Coast 

24 Guard. 

25 ‘‘(iv) The Secretary of the Navy. 


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1 ‘‘(v) The Commander of the United 

2 States Transportation Command. 

3 ‘‘(vi) The Chair of the Federal Mari4 time Commission. 

5 ‘‘(vii) The Assistant Secretary of the 

6 Army for Civil Works. 

7 ‘‘(viii) The Commander of the Mili8 tary Sealift Command. 

9 ‘‘(ix) The Commander of Naval Sea 

10 Systems Command. 

11 ‘‘(x) The chief United States delegate 

12 to the International Maritime Organiza13 tion. 

14 ‘‘(xi) The Under Secretary of Com15 merce for Oceans and Atmosphere. 

16 ‘‘(xii) The Commissioner for Customs 

17 and Border Protection. 

18 ‘‘(xiii) The Director of the Office of 

19 Management and Budget, or their des20 ignee. 

21 ‘‘(xiv) The Secretary of Transpor22 tation, or their designee. 

23 ‘‘(xv) The Secretary of Homeland Se24 curity, or their designee. 


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1 ‘‘(xvi) The Secretary of State, or their 

2 designee. 

3 ‘‘(xvii) The Secretary of Labor, or 

4 their designee. 

5 ‘‘(xviii) The Secretary of Agriculture, 

6 or their designee. 

7 ‘‘(xix) The Secretary of Commerce, or 

8 their designee. 

9 ‘‘(xx) The Secretary of the Treasury, 

10 or their designee. 

11 ‘‘(xxi) The Administrator of the Envi12 ronmental Protection Agency, or their des13 ignee. 

14 ‘‘(xxii) The United States Trade Rep15 resentative, or their designee. 

16 ‘‘(xxiii) The Administrator of the 

17 United States Agency for International 

18 Development, or their designee. 

19 ‘‘(xxiv) From the Department of De20 fense— 

21 ‘‘(I) the Secretary of Defense, or 

22 their designee; 

23 ‘‘(II) a representative of the 

24 Army, as appointed by the Secretary 

25 of Defense; 


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1 ‘‘(III) a representative of the Air 

2 Force, as appointed by the Secretary 

3 of Defense; and 

4 ‘‘(IV) a representative of the 

5 Navy, as appointed by the Secretary 

6 of Defense. 

7 ‘‘(B) NONVOTING MEMBERS.—The individ8 uals and representatives listed in clauses (xiii) 

9 through (xxiv) shall be nonvoting members. 

10 ‘‘(C) CHAIR.—The Maritime Security Ad11 visor shall serve as the Chair of the Board. 

12 ‘‘(2) DUTIES.—Consistent with the National 

13 Maritime Strategy under section 50114 of this title, 

14 the Board shall carry out the following duties: 

15 ‘‘(A) Supporting the development of the 

16 marine transportation system of the United 

17 States, including— 

18 ‘‘(i) assessing the adequacy of the ma19 rine transportation system (including 

20 ports, waterways, channels, and their inter21 modal connections); 

22 ‘‘(ii) promoting the integration of the 

23 marine transportation system with other 

24 modes of transportation and other uses of 

25 the marine environment; and 


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1 ‘‘(iii) coordinating, improving the co2 ordination of, and making recommenda3 tions with regard to Federal policies that 

4 impact the marine transportation system. 

5 ‘‘(B) Establishing policy priorities relating 

6 to, and conducting independent oversight over, 

7 the financial assistance programs under part C 

8 of subtitle V of this title, including— 

9 ‘‘(i) not later than 1 year after the 

10 date of enactment of the SHIPS for Amer11 ica Act of 2024 and annually thereafter, 

12 establishing targets for the number, type, 

13 and requirements of vessels to be included 

14 in each of— 

15 ‘‘(I) the Maritime Security Fleet 

16 (consistent with the most recent Mo17 bility Capability Requirements Study 

18 produced by United States Transpor19 tation Command); 

20 ‘‘(II) the Cable Security Fleet; 

21 ‘‘(III) the Tanker Security Fleet 

22 (consistent with the most recent Mo23 bility Capability Requirements Study 

24 produced by United States Transpor25 tation Command); 


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1 ‘‘(IV) the Strategic Commercial 

2 Fleet; and 

3 ‘‘(V) the Shipbuilding Financial 

4 Incentives Program; 

5 ‘‘(ii) submitting annual recommenda6 tions to the appropriate committees of 

7 Congress for any needed changes in the 

8 authorized number of vessels eligible to 

9 participate in the programs under part C 

10 of subtitle V of this title; and 

11 ‘‘(iii) conducting oversight of the ad12 ministration of such financial assistance 

13 programs to ensure such programs support 

14 the strategic sealift objectives and policy of 

15 the United States, as established in section 

16 59101 of this title. 

17 ‘‘(C) Supporting the Maritime Adminis18 trator in all efforts to conduct independent 

19 oversight of passenger and cargo preference re20 quirements and supporting efforts to enable 

21 cargo to be carried on vessels of the United 

22 States, including— 

23 ‘‘(i) conducting oversight and coordi24 nating interagency efforts to comply with 

25 cargo preference requirements established 


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1 under chapter 553 of this title and section 

2 2631 of title 10; 

3 ‘‘(ii) independently verifying that all 

4 Federal agencies follow the requirements 

5 for cargoes procured, furnished, or fi6 nanced by the United States Government 

7 under section 55305 of this title, and noti8 fying the appropriate committees of Con9 gress of any identified violations of the re10 quirements of such section; 

11 ‘‘(iii) conducting outreach among non12 governmental stakeholders, including pri13 vate industry, to encourage more cargo to 

14 be moved on vessels of the United States; 

15 ‘‘(iv) developing recommendations for 

16 regulations to be issued by Federal agen17 cies to preference the movement of cargo 

18 on vessels of the United States; and 

19 ‘‘(v) submitting recommendations to 

20 the appropriate committees of Congress for 

21 changes to laws relating to passenger and 

22 cargo preferences for the purpose of estab23 lishing a more robust fleet of vessels of the 

24 United States. 


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1 ‘‘(D) Conducting independent oversight 

2 and developing guidance and recommendations 

3 related to the enforcement of the requirements 

4 of chapters 121 and 551 of this title. 

5 ‘‘(E) Coordinating national efforts to de6 velop a robust maritime workforce that en7 hances the national security and strategic sea8 lift readiness of the United States, including— 

9 ‘‘(i) coordinating and conducting over10 sight of interagency efforts and partner11 ships with the maritime industry and 

12 qualified labor organizations to recruit, 

13 train, and retain qualified licensed and un14 licensed merchant mariners; and 

15 ‘‘(ii) coordinating and conducting 

16 oversight of interagency efforts and part17 nerships with the shipbuilding industry to 

18 recruit, train, and retain qualified workers 

19 in the shipbuilding industry of the United 

20 States. 

21 ‘‘(F) Establishing national priorities for re22 search and development of next-generation tech23 nologies to enhance United States leadership in 

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1 cluding through the Center for Maritime Inno2 vation established under section 50307. 

3 ‘‘(G) Coordinating interagency efforts to 

4 ensure vessels of the United States operating in 

5 international commerce are privileged in regula6 tion, taxation, fees, insurance, and policy com7 pared to foreign vessels conducting trade with 

8 a United States-domiciled entity, while remain9 ing consistent with the international obligations 

10 of the United States. 

11 ‘‘(H) Coordinating efforts to protect ves12 sels of the United States operating in inter13 national or domestic commerce from physical 

14 and cybersecurity threats. 

15 ‘‘(I) Conducting oversight of the use of 

16 funds from the Maritime Security Trust Fund 

17 established under section 9512 of the Internal 

18 Revenue Code of 1986, and making rec19 ommendations to Congress for expenditures 

20 from the Trust Fund. 

21 ‘‘(J) Conducting studies on subjects re22 lated to the maritime industry and international 

23 shipping, and undertaking other efforts related 

24 to strengthening the maritime security of the 

25 United States. 


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1 ‘‘(K) Carrying out other duties, as as2 signed by the President in consultation with the 

3 Maritime Security Advisor, related to the mari4 time industry, shipbuilding, ship repair, stra5 tegic sealift, and the marine transportation sys6 tem of the United States. 

7 ‘‘(3) MEETINGS.—The Board shall meet not 

8 less frequently than quarterly. 

9 ‘‘(4) STAFF.—The Board may hire staff to sup10 port its activities. 

11 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated $5,000,000 for each of 

13 fiscal years 2025 through 2034, from the Maritime Secu14 rity Trust Fund established under section 9512 of the In15 ternal Revenue Code of 1986 to the Maritime Security 

16 Board to staff the Board and carry out the duties de17 scribed in this section. 

18 ‘‘(d) REPORT TO CONGRESS.— 

19 ‘‘(1) IN GENERAL.—Not later than 180 days 

20 after the President establishes the Maritime Security 

21 Board under this section, and annually thereafter, 

22 the Board shall submit a report to the appropriate 

23 committees of Congress describing— 


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1 ‘‘(A) the actions that the Board has taken 

2 to carry out the duties required of the Board 

3 under subsection (b)(2); and 

4 ‘‘(B) a list of recommended actions that 

5 the Board recommends Congress take to en6 hance the strength of the United States mari7 time industry and support the economic and na8 tional security needs of the United States. 

9 ‘‘(2) APPROPRIATE COMMITTEES OF CON10 GRESS.—In this section, the term ‘appropriate com11 mittees of Congress’ has the meaning given that 

12 term in section 4 of the SHIPS for America Act of 

13 2024.’’. 

14 (b) CLARIFICATION; TRANSITION.— 

15 (1) CLARIFICATION.—The activities of the 

16 United States Committee on the Marine Transpor17 tation System shall be carried out by the Maritime 

18 Security Board. 

19 (2) TRANSITION.—The Secretary of Transpor20 tation, shall take such steps as may be necessary for 

21 the orderly transition from the United States Com22 mittee on the Marine Transportation System sup23 ported pursuant to section 50401 of title 46, United 

24 States Code, as in effect on the day the before the 


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1 date of enactment of this Act, to the Maritime Secu2 rity Board. 

3 (c) NATIONAL MARITIME STRATEGY.—Section 

4 50114 of title 46, United States Code, is amended— 

5 (1) by striking subsection (a), and inserting the 

6 following: 

7 ‘‘(a) IN GENERAL.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 the Maritime Security Advisor, in consultation with 

10 the Maritime Security Board, shall develop a Na11 tional Maritime Strategy and submit that National 

12 Maritime Strategy to the appropriate committees of 

13 Congress (as that term is defined in section 4 of the 

14 SHIPS for America Act of 2024). 

15 ‘‘(2) TRANSITION.—Notwithstanding paragraph 

16 (1), if a national maritime strategy has been devel17 oped and submitted in accordance with this section, 

18 as in effect on the day before the date of enactment 

19 of the SHIPS for America Act of 2024, in the 1- 

20 year period before such date of enactment, the Mari21 time Security Advisor shall implement and update 

22 that national maritime strategy and shall not de23 velop a new national maritime strategy.’’; and 

24 (2) by striking subsections (c) and (d) and in25 serting the following: 


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1 ‘‘(c) IMPLEMENTATION.—Upon the release of a strat2 egy under this section, the Maritime Security Advisor, in 

3 consultation with the Maritime Security Board, shall be 

4 responsible for implementing the contents and rec5 ommendations of the strategy. 

6 ‘‘(d) UPDATE.—The Maritime Security Advisor, in 

7 coordination with the Maritime Security Board, shall sub8 mit to the appropriate committees of Congress (as that 

9 term is defined in section 4 of the SHIPS for America 

10 Act of 2024) an update to the strategy developed under 

11 subsection (a) not less often than every 5 years. 

12 ‘‘(e) PUBLIC AVAILABILITY; IMPLEMENTATION

13 PLAN.—Not later than 6 months after the submission of 

14 a strategy or update under subsection (a), the Maritime 

15 Security Advisor, in consultation with the Maritime Secu16 rity Board, shall make publicly available on an appropriate 

17 website each strategy or updated strategy and an imple18 mentation plan for such strategy or update.’’. 

19 SEC. 102. MARITIME TRANSPORTATION SYSTEM NATIONAL 

20 ADVISORY COMMITTEE. 

21 Section 50402 is amended— 

22 (1) in subsection (b), by striking ‘‘Secretary of 

23 Transportation’’ and inserting ‘‘Maritime Security 

24 Advisor and Maritime Security Board’’; and 

25 (2) in subsection (c)— 


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1 (A) in paragraph (1), by striking ‘‘by the 

2 Secretary of Transportation’’; 

3 (B) by striking paragraph (3) and insert4 ing the following: 

5 ‘‘(3) REPRESENTATION.—Members of the Com6 mittee shall be appointed as follows: 

7 ‘‘(A) The Maritime Security Advisor shall 

8 appoint the following members of the Com9 mittee: 

10 ‘‘(i) At least one member to represent 

11 the Environmental Protection Agency. 

12 ‘‘(ii) At least one member to represent 

13 the Department of Commerce. 

14 ‘‘(iii) At least one member to rep15 resent the Corps of Engineers. 

16 ‘‘(iv) At least one member to rep17 resent the Coast Guard. 

18 ‘‘(v) At least one member to represent 

19 Customs and Border Protection. 

20 ‘‘(vi) At least one member to rep21 resent the Maritime Administration. 

22 ‘‘(vii) At least one member to rep23 resent the Department of Agriculture. 

24 ‘‘(viii) At least one member to rep25 resent the State Department. 


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1 ‘‘(ix) At least one member to rep2 resent State and local governmental enti3 ties. 

4 ‘‘(B) Additional members shall represent 

5 private sector entities that reflect a cross-sec6 tion of maritime industries, including 

7 credentialed United States merchant mariners, 

8 port and water stakeholders, academia, and 

9 labor, of whom— 

10 ‘‘(i) 3 shall be appointed by the ma11 jority leader of the Senate; 

12 ‘‘(ii) 3 shall be appointed by the mi13 nority leader of the Senate; 

14 ‘‘(iii) 3 shall be appointed by the 

15 Speaker of the House of Representatives; 

16 and 

17 ‘‘(iv) 3 shall be appointed by the mi18 nority leader of the House of Representa19 tives. 

20 ‘‘(C) The Maritime Security Advisor may 

21 appoint additional members of the Committee, 

22 including additional representatives from the 

23 United States Merchant Marine Academy, State 

24 maritime academies, or other Federal agencies, 

25 as the Secretary considers appropriate.’’; and 


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1 (C) in paragraph (4), by redesignating 

2 subparagraphs (A) and (B) as clauses (i) and 

3 (ii), respectively, and adjusting the margins ac4 cordingly; 

5 (D) by redesignating paragraph (4) as sub6 paragraph (A) and adjusting the margins ac7 cordingly; 

8 (E) by inserting after paragraph (3) the 

9 following: 

10 ‘‘(4) RESTRICTIONS ON MEMBERS.—’’; and 

11 (F) at the end of paragraph (4), as so des12 ignated, by inserting the following: 

13 ‘‘(B) RESTRICTIONS ON ADDITIONAL MEM14 BERS.—Members appointed under this para15 graph that are not representing Federal agen16 cies— 

17 ‘‘(i) shall remain on the Committee 

18 for a term of 3 years from the date that 

19 the member is appointed; and 

20 ‘‘(ii) may not serve more than 2 con21 secutive terms.’’. 

22 SEC. 103. DIRECT HIRE AUTHORITY. 

23 (a) MARITIME ADMINISTRATION DIRECT HIRE AU24 THORITY.— 


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1 (1) IN GENERAL.—The Maritime Administrator 

2 may appoint, without regard to the provisions of sec3 tions 3309 through 3319 of title 5, United States 

4 Code, candidates needed for positions within the 

5 Maritime Administration for which— 

6 (A) public notice has been given; 

7 (B) the Administrator has determined that 

8 a critical hiring need exists; and 

9 (C) the Administrator has consulted with 

10 the Director of the Office of Personnel Manage11 ment regarding— 

12 (i) the positions for which the Admin13 istrator plans to recruit; 

14 (ii) the quantity of candidates Admin15 istrator is seeking; and 

16 (iii) the assessment and selection poli17 cies the Administrator plans to utilize. 

18 (2) DEFINITION OF CRITICAL HIRING NEED.— 

19 In this subsection, the term ‘‘critical hiring need’’ 

20 means personnel necessary for the implementation of 

21 this Act and associated work. 

22 (b) COAST GUARD DIRECT HIRE AUTHORITY.— 

23 (1) IN GENERAL.—The Secretary of the depart24 ment in which the Coast Guard is operating may ap25 point, without regard to the provisions of sections 


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1 3309 through 3319 of title 5, United States Code, 

2 candidates needed for positions within offices under 

3 the Assistant Commandant for Prevention Policy of 

4 the Coast Guard, for which— 

5 (A) public notice has been given; 

6 (B) the Secretary has determined that a 

7 critical hiring need exists; and 

8 (C) the Secretary has consulted with the 

9 Director of the Office of Personnel Management 

10 regarding— 

11 (i) the positions for which the Sec12 retary plans to recruit; 

13 (ii) the quantity of candidates Sec14 retary is seeking; and 

15 (iii) the assessment and selection poli16 cies the Secretary plans to utilize. 

17 (2) DEFINITION OF CRITICAL HIRING NEED.— 

18 In this subsection, the term ‘‘critical hiring need’’ 

19 means personnel necessary for the implementation of 

20 this Act and associated work. 

21 SEC. 104. IMPLEMENTATION PLAN. 

22 (a) IMPLEMENTATION PLAN REQUIRED.—Not later 

23 than 60 days after the date of enactment of this Act, the 

24 Maritime Administrator and the Secretary of the depart25 ment in which the Coast Guard is operating shall each 


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1 submit to the appropriate committees of Congress and the 

2 Maritime Security Board a separate implementation plan 

3 for carrying out this Act, and the amendments made by 

4 this Act. 

5 (b) ELEMENTS.—Each implementation plan required 

6 under subsection (a) shall include, for each action required 

7 of the Maritime Administrator and the Secretary of the 

8 department in which the Coast Guard is operating (as ap9 plicable) in this Act, including the amendments made by 

10 this Act— 

11 (1) an identification of all administrative re12 structuring requirements; 

13 (2) an identification of each office or division 

14 within the Maritime Administration or Coast Guard 

15 principally responsible for each relevant section of 

16 this Act; 

17 (3) an identification of additional personnel 

18 needed to sufficiently implement this Act, a hiring 

19 plan, and a training plan; 

20 (4) an identification of any barrier (including 

21 any policy, law, or regulation) to implementation of 

22 any section of this Act, and recommendations to ad23 dress those barriers; 


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1 (5) a descriptive implementation timeline, tak2 ing into account the administrative needs of the 

3 Maritime Administration or the Coast Guard; and 

4 (6) any additional components determined ap5 propriate by the Maritime Administrator or such 

6 Secretary to ensure the success of implementation of 

7 this Act. 

8 (c) BRIEFING.—Not later than 15 days after submit9 ting each implementation plan required under subsection 

10 (a), the Maritime Administrator and the Secretary of the 

11 department in which the Coast Guard is operating shall 

12 provide a briefing to the appropriate committees of Con13 gress on the status of that implementation plan required 

14 under subsection (a). 

15 (d) BIANNUAL UPDATE.—Not less frequently than 

16 biannually following the submission of the plans under 

17 subsection (a) and for 2 years thereafter, the Maritime 

18 Administrator and the Secretary of the department in 

19 which the Coast Guard is operating shall submit to the 

20 appropriate committees of Congress separate reports con21 taining any updates on the implementation of such plans. 

22 (e) GAO REVIEW.—The Comptroller General of the 

23 United States shall— 

24 (1) not later than 2 years after the date of en25 actment of this Act, and biennially thereafter for 10 


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1 years, conduct a review of the activities carried out 

2 in accordance with this Act, and the amendments 

3 made by this Act; and 

4 (2) submit to the appropriate committees of 

5 Congress the results of each review. 

6 SEC. 105. FEDERAL MARITIME COMMISSION REPORT ON 

7 VESSELS OF THE UNITED STATES. 

8 (a) IN GENERAL.—The Federal Maritime Commis9 sion shall annually submit a report to the Maritime Secu10 rity Board and the appropriate committees of Congress 

11 evaluating the competitiveness of vessels of the United 

12 States in foreign commerce. The Maritime Security Board 

13 shall utilize the findings of such report to inform the Na14 tional Maritime Strategy under section 50114 of title 46, 

15 United States Code, and other activities of the Board. 

16 (b) CONTENTS.—The report shall include— 

17 (1) metrics concerning carriage of foreign com18 merce on vessels of the United States; 

19 (2) information about the price parity of car20 riage of foreign commerce on vessels of the United 

21 States versus foreign vessels (as defined in section 

22 110 of title 46, United States Code) by market; 

23 (3) identification of markets of opportunity for 

24 the United States to compete in foreign commerce 


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1 where rates are in relative parity to vessels of the 

2 United States; 

3 (4) markets in which United States interests 

4 paid above average rates for foreign commerce, in5 cluding with foreign and domestic carriers; and 

6 (5) an assessment of the foreign vessel reg7 istries of peer competitor countries to determine— 

8 (A) the roles of the governments of peer 

9 competitor countries in their vessel registry 

10 processes, including policy practices that may 

11 provide a disadvantage to the United States; 

12 (B) the sizes of the fleets of foreign vessels 

13 registered with such countries, including how 

14 many of such foreign vessels are domestically 

15 built and how many are built in other countries; 

16 and 

17 (C) the price parity of vessels of the 

18 United States, as compared to foreign vessels 

19 registered with peer competitor countries that 

20 are operating in global markets identified as a 

21 priority by the Federal Maritime Commission. 


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1 TITLE II—MARITIME SECURITY 

2 TRUST FUND 

3 SEC. 201. APPORTIONMENT OF THE MARITIME SECURITY 

4 TRUST FUND. 

5 (a) IN GENERAL.—Chapter 505 of title 46, United 

6 States Code, is amended by adding at the end the fol7 lowing: 

8 ‘‘§ 50505. Apportionment of the Maritime Security 

9 Trust Fund 

10 ‘‘(a) ADMINISTRATIVE EXPENSES.—There is author11 ized to be appropriated from the Maritime Security Trust 

12 Fund— 

13 ‘‘(1) $30,000,000 to the Secretary of Transpor14 tation for administrative expenses of the Maritime 

15 Administration to administer subtitle V, for each of 

16 fiscal years 2025 through 2034; 

17 ‘‘(2) $30,000,000 to the Secretary of the de18 partment in which the Coast Guard is operating for 

19 administrative expenses of the Coast Guard to ad20 minister subtitle II, for each of fiscal years 2025 

21 through 2034; and 

22 ‘‘(3) $2,000,000 to the Federal Maritime Com23 mission for administrative expenses of the Federal 

24 Maritime Commission to administer subtitle IV. 


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1 ‘‘(b) MERCHANT MARINE OF THE UNITED

2 STATES.—Amounts in the Maritime Security Trust Fund 

3 shall be available for programs or activities associated with 

4 maintaining the merchant marine of the United States, 

5 which shall include— 

6 ‘‘(1) the United States Merchant Marine Acad7 emy, as authorized under chapter 513; 

8 ‘‘(2) the State maritime academy support pro9 gram under chapter 515; 

10 ‘‘(3) the National Security Multi-Mission Vessel 

11 program, as authorized under section 3505 of the 

12 National Defense Authorization Act for Fiscal Year 

13 2017 (Public Law 114–328; 130 Stat. 2776); 

14 ‘‘(4) fuel funding for training ships operated by 

15 the State maritime academies, as authorized under 

16 section 51504; 

17 ‘‘(5) the Strategic Commercial Fleet, as author18 ized under chapter 536; 

19 ‘‘(6) the loan guarantee program, as authorized 

20 under section 53702; 

21 ‘‘(7) the Shipbuilding Financial Incentives Pro22 gram, as authorized under section 53801; 

23 ‘‘(8) assistance to small shipyards and for mari24 time training programs, as authorized under section 

25 54101; 


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1 ‘‘(9) the port infrastructure development pro2 gram, as authorized under section 54301; 

3 ‘‘(10) financing the transportation of agricul4 tural products, as authorized under section 55316; 

5 ‘‘(11) the United States Center for Maritime 

6 Innovation, as authorized under section 50307; 

7 ‘‘(12) reimbursement of qualifying spouse reli8 censing costs and business costs, as authorized 

9 under section 52103; 

10 ‘‘(13) the United States Merchant Marine Ca11 reer Retention Program, as authorized under section 

12 52105; 

13 ‘‘(14) the maritime and shipbuilding recruiting 

14 campaign, as authorized under section 611 of the 

15 SHIPS for America Act of 2024; 

16 ‘‘(15) the Centers of Excellence for Domestic 

17 Maritime Workforce Training and Education, as au18 thorized under section 51706; 

19 ‘‘(16) maritime worker data collection, as au20 thorized under section 615 of the SHIPS for Amer21 ica Act of 2024; 

22 ‘‘(17) international scholarships for mariner 

23 and naval architecture exchanges, as authorized 

24 under section 618 of the SHIPS for America Act of 

25 2024; and 


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1 ‘‘(18) merchant mariner credentialing mod2 ernization, as authorized under section 631 of the 

3 SHIPS for America Act of 2024.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 for chapter 505 of title 46, United States Code, is amend6 ed by adding at the end the following: 

‘‘50505. Apportionment of the Maritime Security Trust Fund.’’. 

7 SEC. 202. REGULAR TONNAGE TAXES; PRESIDENTIAL SUS8 PENSION OF TONNAGE TAXES AND LIGHT 

9 MONEY. 

10 (a) REGULAR TONNAGE TAXES.—Section 60301(b) 

11 of title 46, United States Code, is amended by striking 

12 ‘‘, for fiscal years 2006 through 2010, and 6 cents per 

13 ton, not to exceed a total of 30 cents per ton per year, 

14 for each fiscal year thereafter,’’. 

15 (b) PRESIDENTIAL SUSPENSION OF TONNAGE TAXES

16 AND LIGHT MONEY.—Section 60304 of title 46, United 

17 States Code, is amended to read as follows: 

18 ‘‘§ 60304. Presidential suspension of tonnage taxes 

19 and light money 

20 ‘‘(a) IN GENERAL.—Except as provided in subsection 

21 (b), if the President is satisfied that the government of 

22 a foreign country does not impose discriminating or coun23 tervailing duties to the disadvantage of the United States, 

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1 nage taxes and light money under sections 60302 and 

2 60303 of this title on vessels of that country. 

3 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 

4 any vessel that— 

5 ‘‘(1) is owned or operated by a foreign entity of 

6 concern (as that term is defined in section 4 of the 

7 SHIPS for America Act of 2024); 

8 ‘‘(2) is a vessel registered under a registry of a 

9 foreign country of concern (as that term is defined 

10 in section 4 of the SHIPS for America Act of 2024); 

11 or 

12 ‘‘(3) was a vessel registered under a registry of 

13 a foreign country of concern (as that term is defined 

14 in section 4 of the SHIPS for America Act of 2024) 

15 at any time during the 3 years preceding the date 

16 of the determination of the application of subsection 

17 (a).’’. 

18 TITLE III—SEALIFT CAPABILITY 

19 SEC. 301. SEALIFT CAPABILITY. 

20 (a) IN GENERAL.—Subtitle V of title 46, United 

21 States Code, is amended by adding at the end the fol22 lowing: 

23 ‘‘PART H—STRATEGIC SEALIFT 

‘‘Sec. 

‘‘59101. Objectives and policy. 

‘‘59102. Procurement, maintenance, and operation. 

‘‘59103. Sealift prioritization. 

‘‘59104. International agreements. 


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‘‘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. 

1 ‘‘§ 59101. Objectives and policy 

2 ‘‘(a) OBJECTIVES.—It is necessary for the national 

3 defense and economic security of the United States that 

4 the United States have a fleet of vessels of the United 

5 States capable of providing and supporting strategic sea6 lift— 

7 ‘‘(1) sufficient to meet defense deployment and 

8 essential economic activities for the United States in 

9 times of crisis or war; 

10 ‘‘(2) sufficient to respond unilaterally to na11 tional security threats in geographic areas not cov12 ered by alliance commitments and ensure economic 

13 security resilience for United States trade; and 

14 ‘‘(3) built, operated, and maintained during 

15 peace, crisis, and war primarily in the United States 

16 to protect and ensure national security resiliency 

17 and avoid foreign coercion of critical supply chains. 

18 ‘‘(b) POLICY.—It is the policy of the United States 

19 to encourage and aid the development and maintenance 

20 of a fleet of vessels of the United States with strategic 

21 sealift capabilities satisfying the objectives described in 

22 subsection (a). 

23 ‘‘(c) STRATEGY REQUIRED.— 


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1 ‘‘(1) IN GENERAL.—The Maritime Security 

2 Board shall annually develop a strategy to leverage 

3 the financial assistance programs established under 

4 part C of this subtitle to expand the fleet of vessels 

5 of the United States to meet the minimum number 

6 of vessels needed to accomplish the objectives de7 scribed under subsection (a). 

8 ‘‘(2) STRATEGY COMPONENTS.—The strategy 

9 developed by the Maritime Security Board shall in10 clude— 

11 ‘‘(A) annual goals for the number of ves12 sels that will be brought into the fleet of vessels 

13 of the United States capable of providing stra14 tegic sealift utilizing the Maritime Security 

15 Fleet under chapter 531 of this title, the Cable 

16 Security Fleet under chapter 532 of this title, 

17 the Tanker Security Fleet under chapter 534 of 

18 this title, the Strategic Commercial Fleet under 

19 chapter 536 of this title, and the Shipbuilding 

20 Financial Incentives program, consistent with 

21 the most recent Mobility Capability Require22 ments Study produced by United States Trans23 portation Command; and 

24 ‘‘(B) an assessment of domestic ship25 building capacity and a strategy to increase the 


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1 capacity of the domestic shipbuilding industry 

2 utilizing the Shipbuilding Financial Incentives 

3 program. 

4 ‘‘(3) NATIONAL MARITIME STRATEGY.—The 

5 strategy developed by the Maritime Security Board 

6 under paragraph (1) shall be consistent with the Na7 tional Maritime Strategy developed under section 

8 50114. 

9 ‘‘(d) REPORT REQUIRED.— 

10 ‘‘(1) IN GENERAL.—Upon completion, the Mari11 time Security Board shall transmit to the appro12 priate committees of Congress a summary of the 

13 strategy developed under subsection (c), with a clas14 sified annex as necessary. 

15 ‘‘(2) DEFINITION.—In this part, the term ‘ap16 propriate committees of Congress’ has the meaning 

17 given that term in section 4 of the SHIPS for Amer18 ica Act of 2024. 

19 ‘‘§ 59102. Procurement, maintenance, and operation 

20 ‘‘(a) STATEMENT OF POLICY.—The Maritime Admin21 istrator, in coordination with the Secretary of Defense and 

22 the Secretary of Homeland Security, shall build, acquire, 

23 maintain, coordinate, support, and operate a sufficient 

24 and privileged fleet of vessels of the United States with 

25 commercial and military sealift capability. 


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1 ‘‘(b) SUPPLEMENTAL CAPABILITY.—In developing 

2 sealift capability under this part, the Secretary of Trans3 portation and the Secretary of Defense shall continue to 

4 operate a sufficient Maritime Security Fleet under chapter 

5 531 of this title, a Cable Security Fleet under chapter 532 

6 of this title, a Tanker Security Fleet under chapter 534 

7 of this title, the Strategic Commercial Fleet under chapter 

8 536 of this title, a Military Sealift Command of the De9 partment of the Navy, and a Ready Reserve Force compo10 nent of the National Defense Reserve Fleet under section 

11 57100 of this title, to provide capacity and resiliency for 

12 unilateral United States strategic sealift in peace, crisis, 

13 and war. 

14 ‘‘(c) JUDICIAL REVIEW.—No court shall have juris15 diction to review decisions made by the Maritime Adminis16 trator, the Secretary of Defense, or the Secretary of 

17 Homeland Security with respect to this section. 

18 ‘‘§ 59103. Sealift prioritization 

19 ‘‘(a) IN GENERAL.—In building, acquiring, maintain20 ing, coordinating, supporting, and operating a fleet of ves21 sels capable of providing sealift capacity during wartime 

22 and crisis, the Maritime Administrator, in coordination 

23 with the Secretary of Defense, shall ensure the availability 

24 of vessels, in the following order of priority: 

25 ‘‘(1) Commercial vessels of the United States. 


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1 ‘‘(2) Vessels of the United States that are 

2 owned and operated by the United States Govern3 ment. 

4 ‘‘(3) Vessels of countries that are defense treaty 

5 allies of the United States. 

6 ‘‘(4) Vessels of countries that are strategic 

7 partners of the United States. 

8 ‘‘(b) JUDICIAL REVIEW.—No court shall have juris9 diction to review decisions made by the Maritime Adminis10 trator or the Secretary of Defense with respect to this sec11 tion. 

12 ‘‘§ 59104. International agreements 

13 ‘‘(a) IN GENERAL.—To support the Secretary of De14 fense and the Secretary of Transportation in building, ac15 quiring, maintaining, coordinating, supporting, and oper16 ating a fleet with sealift capability under this part, the 

17 Maritime Administrator, in coordination with the Sec18 retary of State and the Secretary of Defense, shall identify 

19 opportunities to establish and update agreements with 

20 treaty allies and strategic partners of the United States 

21 to— 

22 ‘‘(1) meet wartime sealift requirements of such 

23 allies and partners; 

24 ‘‘(2) augment the strategic sealift capabilities of 

25 the United States during crisis and war; and 


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1 ‘‘(3) support the maritime industries of both 

2 the United States and treaty allies and strategic 

3 partners. 

4 ‘‘(b) REPORT.—Not later than March 1, 2025, the 

5 Maritime Administrator, in coordination with the Sec6 retary of State and the Secretary of Defense, shall provide 

7 to Congress an evaluation of the status of agreements de8 scribed in subsection (a), including— 

9 ‘‘(1) an assessment of international agreements 

10 described in such subsection and recommendations 

11 for updating such agreements to reflect the global 

12 security environment; and 

13 ‘‘(2) an assessment of the extent to which such 

14 international agreements include the vessels owned 

15 by citizens of these treaty allies and strategic part16 ners. 

17 ‘‘§ 59105. Briefing on shipbuilding capacity 

18 ‘‘(a) IN GENERAL.—Not later than March 1, 2025, 

19 the Secretary of Transportation and the Secretary of De20 fense shall brief the appropriate committees of Congress 

21 on the capacity of the United States shipbuilding industry 

22 to meet peacetime and wartime requirements to build, 

23 maintain, and repair a fleet of vessels of the United States 

24 capable of providing strategic sealift. 

25 ‘‘(b) CONTENTS.— 


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1 ‘‘(1) IN GENERAL.—In briefing the appropriate 

2 committees of Congress under subsection (a), the 

3 Secretary of Transportation and the Secretary of 

4 Defense shall include an assessment and rec5 ommendations for improving the critical shipbuilding 

6 infrastructure, workforce recruitment, development, 

7 and retention, and critical supply chains and critical 

8 repair parts of the United States, including ways in 

9 which allies and partners can contribute or share 

10 best practices. 

11 ‘‘(2) IMPLEMENTATION.—The Maritime Secu12 rity Advisor shall, in addition to the assessment 

13 under paragraph (1), provide an assessment on the 

14 effects of the Goldwater-Nichols Department of De15 fense Reorganization Act of 1986 (Public Law 99– 

16 433) and how implementation of such Act may af17 fect shipbuilding processes of the Department of the 

18 Navy. 

19 ‘‘§ 59106. Briefing on privileging fleet 

20 ‘‘(a) IN GENERAL.—Not later than March 1, 2025, 

21 the Secretary of Transportation, in coordination with the 

22 Secretary of Homeland Security, the Secretary of State, 

23 the Secretary of Commerce, and the Federal Maritime 

24 Commission, shall brief the appropriate committees of 

25 Congress on available options for establishing privileges 


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1 for vessels of the United States operating in foreign com2 merce. 

3 ‘‘(b) CONTENTS.—In briefing Congress under sub4 section (a), the Secretary of Transportation shall provide 

5 recommendations for potential incentives for civil, com6 mercial, and government entities, including allies and 

7 partners, to ship goods on vessels of the United States. 

8 ‘‘§ 59107. Report on privilege 

9 ‘‘(a) IN GENERAL.—Not later than March 1, 2025, 

10 the Secretary of Transportation, in coordination with the 

11 Secretary of Commerce, the Chair of the Federal Maritime 

12 Commission, and the Director of the Office of Manage13 ment and Budget, shall submit to the appropriate commit14 tees of Congress a report including ways to ensure vessels 

15 of the United States operating in foreign commerce are 

16 privileged in regulation, taxation, fees, insurance, and pol17 icy compared to foreign vessels conducting trade with a 

18 United States domiciled entity, while remaining consistent 

19 with the international obligations of the United States. 

20 ‘‘(b) CONTENTS.—In submitting the report under 

21 subsection (a), the Secretary of Transportation shall in22 clude options for regulating trade with foreign vessels in 

23 order to sustain and grow the Maritime Security Fleet 

24 under chapter 531 of this title, the Cable Security Fleet 

25 under chapter 532 of this title, the Tanker Security Fleet 


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1 under chapter 534 of this title, the Strategic Commercial 

2 Fleet under chapter 536 of this title, and other vessels 

3 of the United States operating in foreign commerce. 

4 ‘‘§ 59108. Report on requirements for sealift force de5 ployment 

6 ‘‘(a) IN GENERAL.—Not later than March 1, 2025, 

7 the Secretary of Defense shall submit to the appropriate 

8 committees of Congress a report— 

9 ‘‘(1) on the military sealift requirements of the 

10 Armed Forces of the United States; and 

11 ‘‘(2) in consultation with the Secretary of 

12 Transportation, containing recommendations for how 

13 to maintain, improve, or expand the Maritime Secu14 rity Fleet under chapter 531 of this title, the Cable 

15 Security Fleet under chapter 532 of this title, the 

16 Tanker Security Fleet under chapter 534 of this 

17 title, the Strategic Commercial Fleet under chapter 

18 536 of this title, and the Ready Reserve Force com19 ponent of the National Defense Reserve Fleet under 

20 section 57100 of this title, to meet the military sea21 lift needs of the United States. 

22 ‘‘(b) CONTENTS.—The report under subsection (a) 

23 shall include an assessment of, and recommendations for 

24 how to enable, making the Ready Reserve Force compo25 nent of the National Defense Reserve Fleet under section 


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1 57100 of this title active in trade through a public-private 

2 partnership that enables financing, building, manning, op3 erating, maintaining, and repairing the vessels of such 

4 Fleet, while guaranteeing assured effective control and 

5 surge capacity in times of crisis or war. 

6 ‘‘§ 59109. Assessment on marine infrastructure readi7 ness 

8 ‘‘(a) IN GENERAL.—Not later than March 1, 2026, 

9 and every 2 years thereafter, the Secretaries of Defense, 

10 Homeland Security, Commerce, and Transportation shall 

11 provide the appropriate committees of Congress an assess12 ment on— 

13 ‘‘(1) the readiness and sufficiency of the marine 

14 infrastructure, shipping industry, and shipbuilding 

15 industry of the United States, and vessels of the 

16 United States, to meet the economic and national se17 curity strategic sealift needs of the United States 

18 and operate in a contested environment; 

19 ‘‘(2) the vulnerability of the economy of the 

20 United States to coercion or control from strategic 

21 competitors of the United States through the ocean22 going trades; and 

23 ‘‘(3)(A) critical infrastructure and cybersecurity 

24 vulnerabilities in— 


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1 ‘‘(i) the maritime transportation system of 

2 the United States, including ports, shipyards, 

3 repair yards, inland waterways, and vessels of 

4 the United States; and 

5 ‘‘(ii) foreign investment in marine infra6 structure; and 

7 ‘‘(B) how to reduce the risks of such 

8 vulnerabilities. 

9 ‘‘(b) SECRETARY OF STATE.—Not later than March 

10 1, 2026, and every 2 years thereafter, the Secretary of 

11 State shall provide the appropriate committees of Con12 gress an assessment on— 

13 ‘‘(1) arrangements and agreements between the 

14 United States and countries that are defense treaty 

15 allies for access to the global marine transportation 

16 infrastructure, such as ports, harbors, and water17 ways; and 

18 ‘‘(2) assurances, arrangements, and agreements 

19 between the United States and countries that are 

20 defense treaty allies to augment United States sea21 lift capabilities in times of crisis and war.’’. 

22 (b) CLERICAL AMENDMENT.—The table of chapters 

23 for subtitle V of title 46, United States Code, is amended 

24 by adding at the end the following: 

‘‘PART H—STRATEGIC SEALIFT’’. 


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1 SEC. 302. NATIONAL FREIGHT STRATEGIC PLAN. 

2 Section 70102(b) of title 49, United States Code, is 

3 amended— 

4 (1) in paragraph (16), by striking ‘‘and’’ after 

5 the semicolon; 

6 (2) in paragraph (17), by striking the period at 

7 the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(18) consideration of United States strategic 

10 sealift objectives and strategies established under 

11 section 59101 of title 46; and 

12 ‘‘(19) consideration of maritime networks in 

13 multimodal freight corridors.’’. 

14 SEC. 303. FOREIGN SHIPPING PRACTICES; CONTROLLED 

15 CARRIERS. 

16 (a) FOREIGN SHIPPING PRACTICES.—Section 

17 42301(b) of title 46, United States Code, is amended— 

18 (1) in paragraph (2), by inserting ‘‘or pas19 sengers’’ after ‘‘transportation of cargo’’; and 

20 (2) in paragraph (5), by inserting ‘‘or pas21 sengers’’ after ‘‘carriage of cargo’’. 

22 (b) CONTROLLED CARRIERS.—Chapter 407 of title 

23 46, United States Code, is amended— 

24 (1) in section 40701— 

25 (A) in subsection (a)— 


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1 (i) in paragraph (1), by striking ‘‘or’’ 

2 at the end; 

3 (ii) in paragraph (2), by striking the 

4 period at the end and inserting ‘‘; or’’; and 

5 (iii) by adding at the end the fol6 lowing: 

7 ‘‘(3) arrange or provide passenger transpor8 tation at a fare that is below a just and reasonable 

9 level.’’; 

10 (B) in subsection (b), by striking ‘‘rule, or 

11 regulation’’ and inserting ‘‘rule, regulation, or 

12 fare’’; 

13 (C) in subsection (c), by striking ‘‘rule, or 

14 regulation’’ and inserting ‘‘rule, regulation, or 

15 fare’’; and 

16 (D) in subsection (d), by striking ‘‘rule, or 

17 regulation’’ and inserting ‘‘rule, regulation, or 

18 fare’’; 

19 (2) in section 40702(b)— 

20 (A) in the matter preceding paragraph (1), 

21 by striking ‘‘rule, or regulation’’ and inserting 

22 ‘‘rule, regulation, or fare’’; 

23 (B) in paragraph (1), by striking ‘‘rate or 

24 charge’’ and inserting ‘‘rate, charge, or fare’’; 

25 and 


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1 (C) in paragraph (2), by striking ‘‘rule, or 

2 regulation’’ and inserting ‘‘rule, regulation, or 

3 fare’’; 

4 (3) in section 40703, by striking ‘‘a rate, 

5 charge,’’ and inserting ‘‘a rate, fare, charge,’’; and 

6 (4) in section 40704— 

7 (A) in subsection (a), by striking ‘‘rule, or 

8 regulation’’ and inserting ‘‘rule, regulation, or 

9 fare’’; 

10 (B) in subsection (b), by striking ‘‘rule, or 

11 regulation’’ and inserting ‘‘rule, regulation, or 

12 fare’’; 

13 (C) in subsection (c), by striking ‘‘rule, or 

14 regulation’’ and inserting ‘‘rule, regulation, or 

15 fare’’ each place the term appears; 

16 (D) in subsection (d)— 

17 (i) in paragraph (1), by striking ‘‘rule, 

18 or regulation’’ and inserting ‘‘rule, regula19 tion, or fare’’ each place the term appears; 

20 and 

21 (ii) in paragraph (2), by striking 

22 ‘‘rule, or regulation’’ and inserting ‘‘rule, 

23 regulation, or fare’’ each place the term 

24 appears; and 


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1 (E) in subsection (e), by striking ‘‘rule, or 

2 regulation’’ and inserting ‘‘rule, regulation, or 

3 fare’’ each place the term appears. 

4 TITLE IV—VESSELS OF THE 

5 UNITED STATES IN INTER6 NATIONAL COMMERCE 

7 Subtitle A—Strategic Sealift 

8 Programs 

9 SEC. 401. STRATEGIC COMMERCIAL FLEET. 

10 (a) IN GENERAL.—Part C of subtitle V of title 46, 

11 United States Code, is amended by inserting after chapter 

12 535 the following: 

13 ‘‘CHAPTER 536—STRATEGIC COMMERCIAL 

14 FLEET 

‘‘Sec. 

‘‘53601. Definitions. 

‘‘53602. Establishment of Strategic Commercial Fleet. 

‘‘53603. Operating agreements. 

‘‘53604. Payments. 

‘‘53605. National security requirements. 

‘‘53606. Regulations. 

15 ‘‘§ 53601. Definitions 

16 ‘‘In this chapter: 

17 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis18 trator’ means the Maritime Administrator. 

19 ‘‘(2) APPROPRIATE COMMITTEES OF CON20 GRESS.—The term ‘appropriate committees of Con21 gress’ means— 


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1 ‘‘(A) the Committee on Armed Services, 

2 the Committee on Commerce, Science, and 

3 Transportation, and the Committee on Appro4 priations of the Senate; and 

5 ‘‘(B) the Committee on Armed Services, 

6 the Committee on Transportation and Infra7 structure, and the Committee on Appropriations 

8 of the House of Representatives. 

9 ‘‘(3) COASTWISE TRADE.—The term ‘coastwise 

10 trade’ means commerce or trade that is subject to 

11 the requirements of section 55102. 

12 ‘‘(4) COVERED ENTITY.—The term ‘covered en13 tity’ means— 

14 ‘‘(A) any owner or operator of a vessel eli15 gible under section 53602(d); or 

16 ‘‘(B) a bid team consisting of— 

17 ‘‘(i) an entity eligible under subpara18 graph (A); 

19 ‘‘(ii) any shipyard of the United 

20 States with the ability, experience, finan21 cial resources, and other qualifications nec22 essary for the construction or repair of a 

23 vessel eligible for inclusion in the Strategic 

24 Commercial Fleet; and 


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1 ‘‘(iii) any other legal entity that is not 

2 a foreign entity of concern. 

3 ‘‘(5) FLEET.—The term ‘Fleet’ means the Stra4 tegic Commercial Fleet established under section 

5 53602. 

6 ‘‘(6) FOREIGN COMMERCE.—The term ‘foreign 

7 commerce’ means— 

8 ‘‘(A) commerce or trade between the 

9 United States, its territories or possessions, or 

10 the District of Columbia, and a foreign country; 

11 and 

12 ‘‘(B) commerce or trade between foreign 

13 countries. 

14 ‘‘(7) FOREIGN COUNTRY OF CONCERN; FOREIGN

15 ENTITY OF CONCERN.—The terms ‘foreign country 

16 of concern’ and ‘foreign entity of concern’ have the 

17 meanings given such terms in section 4 of the 

18 SHIPS for America Act of 2024. 

19 ‘‘(8) QUALIFIED FOREIGN BUILT VESSEL.—The 

20 term ‘qualified foreign built vessel’— 

21 ‘‘(A) means a vessel that— 

22 ‘‘(i) is not more than 14 years of age; 

23 and 

24 ‘‘(ii) was constructed (or recon25 structed) outside the United States; and 


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1 ‘‘(B) does not include a vessel that, prior 

2 to entry into the Fleet— 

3 ‘‘(i) was owned or operated by a for4 eign entity of concern; 

5 ‘‘(ii) is a vessel of a foreign country of 

6 concern; 

7 ‘‘(iii) was constructed by a shipyard 

8 that was owned or operated by a foreign 

9 entity of concern or located in a foreign 

10 country of concern; or 

11 ‘‘(iv) was registered as a vessel of a 

12 foreign country of concern at any time 

13 during the 3 years prior to entry into the 

14 Fleet. 

15 ‘‘(9) UNITED STATES BUILT VESSEL.—The 

16 term ‘United States built vessel’ means a vessel that 

17 is constructed in the United States (and, if recon18 structed, reconstructed in the United States). 

19 ‘‘(10) UNITED STATES CITIZEN TRUST.—The 

20 term ‘United States citizen trust’ has the meaning 

21 given such term in section 53201. 

22 ‘‘§ 53602. Establishment of Strategic Commercial 

23 Fleet 

24 ‘‘(a) IN GENERAL.—The Administrator, in consulta25 tion with the Secretary of Defense, shall establish a fleet, 


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1 to be known as the ‘Strategic Commercial Fleet’, of active, 

2 commercially viable, militarily useful, privately owned ves3 sels to meet national defense and other security require4 ments and maintain a United States presence in inter5 national commercial shipping. 

6 ‘‘(b) NUMBER OF VESSELS.—The Administrator 

7 shall seek to select eligible vessels described in subsection 

8 (d) for the Fleet through an annual competitive selection 

9 process in accordance with the annual target number for 

10 the Fleet recommended by the Maritime Security Board 

11 under section 50401(b)(2)(B)(i). Through such annual se12 lection process, the Administrator shall— 

13 ‘‘(1) select for inclusion in the Fleet not fewer 

14 than 10 vessels in the 12-month period that begins 

15 on the date that is 2 years after the date of enact16 ment of this section; 

17 ‘‘(2) increase the number of vessels selected for 

18 inclusion in the Fleet annually such that not later 

19 than 5 years after such date of enactment, not fewer 

20 than 20 vessels are selected for such inclusion annu21 ally; and 

22 ‘‘(3) ensure that the total number of vessels in23 cluded in the fleet shall be not more than 250 ves24 sels at any point in time. 

25 ‘‘(c) SOLICITATION; ENTRY INTO FLEET.— 


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1 ‘‘(1) SOLICITATION.— 

2 ‘‘(A) IN GENERAL.—The Administrator 

3 shall solicit applications from covered entities to 

4 competitively select vessels that are eligible 

5 under subsection (d) and meet the requirements 

6 of this subsection for inclusion in the Fleet. 

7 ‘‘(B) PUBLIC SOLICITATION REQUIRE8 MENTS.—In soliciting applications under sub9 paragraph (A), the Administrator shall— 

10 ‘‘(i) publish a notice in the Federal 

11 Register, which, at a minimum, identifies 

12 the requirements for the number of vessels 

13 as established by the Administrator and 

14 the Maritime Security Board under sub15 section (b); and 

16 ‘‘(ii) allow applicants not less than 30 

17 days to submit an application for entry 

18 into the Fleet. 

19 ‘‘(2) ELIGIBLE APPLICATIONS.—The Adminis20 trator shall solicit and accept applications in sepa21 rate processes for each of the following: 

22 ‘‘(A) NEWLY CONSTRUCTED VESSELS.— 

23 ‘‘(i) IN GENERAL.—A covered entity 

24 may submit an application for the Fleet 

25 that involves the construction of a United 


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1 States built vessel and operation of such 

2 vessel as a vessel of the United States in 

3 foreign commerce. 

4 ‘‘(ii) INTERIM VESSEL.—An applica5 tion described in clause (i) from a covered 

6 entity may include a proposal for the use 

7 of an interim vessel, if such proposal pro8 vides that— 

9 ‘‘(I) the covered entity will oper10 ate a qualified foreign-built vessel as a 

11 vessel of the United States in foreign 

12 commerce as part of the Fleet until 

13 the United States built vessel de14 scribed in such clause enters the 

15 Fleet, in accordance with the mile16 stones established within the oper17 ating agreement under section 

18 53603(c)(1); 

19 ‘‘(II) when the United States 

20 built vessel enters the Fleet or the 

21 covered entity fails to meet milestones 

22 established in the operating agree23 ment, the qualified foreign-built vessel 

24 shall be removed from the Fleet; and 


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1 ‘‘(III) the covered entity may 

2 then transfer and register the quali3 fied foreign-built vessel under a reg4 istry of any foreign country that is 

5 not a foreign country of concern. 

6 ‘‘(B) QUALIFIED FOREIGN-BUILT VES7 SELS.— 

8 ‘‘(i) IN GENERAL.—Through fiscal 

9 year 2029, a covered entity may submit an 

10 application for the Fleet that involves the 

11 operation of a qualified foreign-built vessel 

12 as a vessel of the United States in foreign 

13 commerce. 

14 ‘‘(ii) EXCEPTION.—After fiscal year 

15 2029, the Administrator may not enter 

16 into a new agreement or renew an existing 

17 agreement to bring a qualified foreign-built 

18 vessel into the Fleet unless— 

19 ‘‘(I) the vessel is operating as an 

20 interim vessel under subparagraph 

21 (A)(ii); or 

22 ‘‘(II) the Administrator and Sec23 retary of Defense, in consultation with 

24 the Maritime Security Board, jointly 

25 certify to the appropriate committees 


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1 of Congress that adding additional 

2 qualified foreign-built vessels to the 

3 Fleet is necessary for the national se4 curity of the United States until re5 placed by a newly constructed vessel 

6 to meet the schedule under subsection 

7 (b). 

8 ‘‘(3) PROCEDURE.— 

9 ‘‘(A) IN GENERAL.—A covered entity shall 

10 submit an eligible application under paragraph 

11 (2) as at such time, in such manner, and con12 taining such information as the Administrator 

13 may require. Such application shall include— 

14 ‘‘(i) a proposed annual operating sup15 port payment, which may cover the dif16 ference in operating costs associated with 

17 operating a vessel of the United States as 

18 compared to a fair and reasonable estimate 

19 of the cost of operating that type of vessel 

20 under the laws of a foreign country; 

21 ‘‘(ii) in the case of an application de22 scribed in paragraph (2)(A), a proposed 

23 annual capital support payment, which 

24 may cover the difference in capital costs 

25 associated with constructing a vessel in the 


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1 United States as compared to a fair and 

2 reasonable estimate of the cost of the con3 struction of that type of vessel in a foreign 

4 shipyard; and 

5 ‘‘(iii) any other support payments 

6 needed to make a vessel commercially via7 ble in foreign commerce. 

8 ‘‘(B) BID TEAM.—In the case of an eligible 

9 entity that is a bid team described in section 

10 53601(3)(B), such team shall jointly submit an 

11 application under this subsection for inclusion 

12 in the Fleet. 

13 ‘‘(4) ACCEPTANCE INTO FLEET.— 

14 ‘‘(A) IN GENERAL.—The Administrator 

15 shall evaluate eligible applications submitted 

16 under this subsection in order to, in accordance 

17 with this paragraph, select applications that 

18 meet the requirements of this section for ac19 ceptance in the Fleet. 

20 ‘‘(B) CITIZENSHIP PREFERENCE.—In se21 lecting applications to meet the requirements of 

22 this section, the Administrator shall ensure, to 

23 the extent sufficient qualified applications are 

24 received under this subsection, that not less 

25 than 25 percent of vessels selected for the Fleet 


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1 shall be owned or operated by a covered entity 

2 that is, or a bid team led by, a citizen of the 

3 United States under section 50501. 

4 ‘‘(C) PRIORITY.—In evaluating eligible ap5 plications for selection in the Fleet and subject 

6 to subparagraph (B), the Administrator shall 

7 give priority to— 

8 ‘‘(i) applications that represent the 

9 best value to the Federal Government; and 

10 ‘‘(ii) applications for vessels, or for 

11 vessels providing services, that are deter12 mined by the Maritime Security Board to 

13 have capabilities critical to the national 

14 and economic security of the United 

15 States. 

16 ‘‘(D) RELATIONSHIP TO THE TANKER SE17 CURITY FLEET.—If the most recent Mobility 

18 Capability Requirements Study produced by 

19 United States Transportation Command identi20 fies a need for a fleet of tanker vessels that are 

21 vessels of the United States that exceeds the 

22 size of the Tanker Security Fleet established 

23 under chapter 534 of this title, the Adminis24 trator, in coordination with the Maritime Secu25 rity Board, may select for inclusion in the Fleet 


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1 a number of tanker vessels that is consistent 

2 with the requirements of the Study. 

3 ‘‘(E) CONSIDERATIONS FOR REVIEW.—In 

4 evaluating eligible applications submitted under 

5 this subsection for selection in the Fleet, the 

6 Administrator shall— 

7 ‘‘(i) ensure that any vessel so selected 

8 will be suitable for use by the United 

9 States for national defense or military pur10 poses in time of war or national emer11 gency; 

12 ‘‘(ii) ensure that any vessel so selected 

13 will aid in the promotion and development 

14 of foreign commerce; 

15 ‘‘(iii) confirm that— 

16 ‘‘(I) the proposed use of the ves17 sel in commercial service is reason18 able; and 

19 ‘‘(II) the owner or operator of 

20 the vessel possesses the ability, experi21 ence, financial resources, and other 

22 qualifications necessary for the oper23 ation and maintenance of the vessel; 

24 ‘‘(iv) confirm that a shipyard selected 

25 to construct a vessel under this section 


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1 possesses the ability, experience, financial 

2 resources, equipment, and other qualifica3 tions necessary to properly construct the 

4 vessel; 

5 ‘‘(v) ensure the price for the construc6 tion (if applicable) and operation of a ves7 sel under this section is fair and reason8 able; 

9 ‘‘(vi) consider whether the covered en10 tity commits to— 

11 ‘‘(I) use equipment, materials, 

12 and supplies that are produced in the 

13 United States; and 

14 ‘‘(II) utilize, to the maximum ex15 tent practicable, subcontractors and 

16 suppliers that are based in the United 

17 States; 

18 ‘‘(vii) consider whether the covered 

19 entity commits to repair, repower, and re20 condition a vessel under this section in a 

21 shipyard of the United States; and 

22 ‘‘(viii) consider whether the covered 

23 entity has made commitments to worker 

24 and community investment, including 

25 through— 


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1 ‘‘(I) programs to expand employ2 ment opportunity for economically dis3 advantaged individuals; or 

4 ‘‘(II) securing commitments from 

5 regional educational and training enti6 ties and institutions of higher edu7 cation, as defined in section 102 of 

8 the Higher Education Act of 1965 (20 

9 U.S.C. 1002), to provide workforce 

10 training, including programming for 

11 training and job placement of eco12 nomically disadvantaged individuals. 

13 ‘‘(5) TIMING.— 

14 ‘‘(A) QUALIFIED FOREIGN VESSEL.—Not 

15 later than 180 days after entering into an oper16 ating agreement under section 53603 with a 

17 covered entity for inclusion of a qualified for18 eign-built vessel into the Fleet, such vessel shall 

19 be placed into service as part of the Fleet. 

20 ‘‘(B) NEWLY CONSTRUCTED VESSEL.—Not 

21 later than 36 months after entering into an op22 erating agreement under section 53603 with a 

23 covered entity for inclusion of a newly con24 structed United States built vessel described in 


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1 paragraph (2)(A), such vessel shall be placed 

2 into service as part of the Fleet. 

3 ‘‘(C) DELAYED ADMISSION.—The Adminis4 trator may delay the entry of a vessel selected 

5 to participate in the Fleet for— 

6 ‘‘(i) a delay in the construction of 

7 such vessel; or 

8 ‘‘(ii) difficulty of the owner or oper9 ator of such vessel in recruiting United 

10 States mariners as required under section 

11 53603(b)(1)(A). 

12 ‘‘(d) VESSEL ELIGIBILITY.—A vessel is eligible to be 

13 included in the Fleet if— 

14 ‘‘(1) the vessel— 

15 ‘‘(A) is a vessel of the United States; or 

16 ‘‘(B) is not a vessel of the United States, 

17 but— 

18 ‘‘(i) the owner of the vessel has dem19 onstrated an intent to have the vessel doc20 umented under chapter 121 of this title if 

21 it is included in the Fleet; and 

22 ‘‘(ii) at the time an operating agree23 ment is entered into under section 53603, 

24 the vessel is eligible for documentation 

25 under chapter 121 of this title; 


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1 ‘‘(2) the vessel is a United States built vessel 

2 or a qualified foreign-built vessel; 

3 ‘‘(3) the vessel is— 

4 ‘‘(A) a bulk carrier vessel; 

5 ‘‘(B) a tanker vessel; 

6 ‘‘(C) a roll-on/roll-off vessel; 

7 ‘‘(D) a liquefied natural gas tanker vessel; 

8 ‘‘(E) a container vessel; 

9 ‘‘(F) a multi-purpose vessel; 

10 ‘‘(G) a cable vessel (as defined in section 

11 53201 of this title); 

12 ‘‘(H) a heavy-lift vessel; or 

13 ‘‘(I) any other type of vessel determined 

14 appropriate by the Administrator, in consulta15 tion with the Maritime Security Board; 

16 ‘‘(4) the vessel is operated (or will be operated) 

17 in providing transportation in foreign commerce; 

18 ‘‘(5) the vessel meets the requirements of para19 graph (1), (2), (3), or (4) of subsection (e); 

20 ‘‘(6) the vessel— 

21 ‘‘(A) is suitable for use by the United 

22 States for national defense or military purposes 

23 in time of war or national emergency, as deter24 mined by the Secretary of Defense; 


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1 ‘‘(B) is commercially viable, as determined 

2 by the Administrator; and 

3 ‘‘(C) has dedicated space for the training 

4 of— 

5 ‘‘(i) cadets of the Merchant Marine 

6 Academy consistent with the requirements 

7 of section 51307(b); 

8 ‘‘(ii) students of a State maritime 

9 academy, consistent with the requirements 

10 of section 51507; or 

11 ‘‘(iii) participants in another work12 force training program identified by the 

13 Administrator; and 

14 ‘‘(7) the vessel will, for the period of an oper15 ating agreement under section 53603 that applies to 

16 the vessel, meet any other requirement determined 

17 appropriate by the Administrator. 

18 ‘‘(e) REQUIREMENTS REGARDING CITIZENSHIP OF

19 OWNERS, CHARTERERS, AND OPERATORS.— 

20 ‘‘(1) VESSEL OWNED AND OPERATED BY SEC21 TION 50501 CITIZENS.—A vessel meets the require22 ments of this paragraph if, during the period of an 

23 operating agreement under this chapter that applies 

24 to the vessel, the vessel will be owned and operated 


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1 by 1 or more persons that are citizens of the United 

2 States under section 50501. 

3 ‘‘(2) VESSEL OWNED BY SECTION 50501 CITIZEN

4 OR UNITED STATES CITIZEN TRUST AND CHAR5 TERED TO DOCUMENTATION CITIZEN.—A vessel 

6 meets the requirements of this paragraph if— 

7 ‘‘(A) during the period of an operating 

8 agreement under this chapter that applies to 

9 the vessel, the vessel will be— 

10 ‘‘(i) owned by a person that is a cit11 izen of the United States under section 

12 50501 of this title or that is a United 

13 States citizen trust; and 

14 ‘‘(ii) demise chartered to a person— 

15 ‘‘(I) that is eligible to document 

16 the vessel under chapter 121 of this 

17 title; 

18 ‘‘(II) the chairman of the board 

19 of directors, chief executive officer, 

20 and a majority of the members of the 

21 board of directors of which are citi22 zens of the United States under sec23 tion 50501 of this title, and are ap24 pointed and subjected to removal only 


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1 upon approval by the Administrator; 

2 and 

3 ‘‘(III) that certifies to the Ad4 ministrator that there are no treaties, 

5 statutes, regulations, or other laws 

6 that would prohibit the covered entity 

7 for the vessel from performing its ob8 ligations under an operating agree9 ment under this chapter; 

10 ‘‘(B) in the case of a vessel that will be de11 mise chartered to a person that is owned or 

12 controlled by another person that is not a cit13 izen of the United States under section 50501 

14 of this title, the other person enters into an 

15 agreement with the Administrator not to influ16 ence the operation of the vessel in a manner 

17 that will adversely affect the interests of the 

18 United States; and 

19 ‘‘(C) the Administrator and the Secretary 

20 of Defense notify the appropriate committees of 

21 Congress that they concur with the certification 

22 required under subparagraph (A)(ii)(III) and 

23 have reviewed and agree that there are no other 

24 legal, operational, or other impediments that 

25 would prohibit the covered entity for the vessel 


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1 from performing its obligations under an oper2 ating agreement under this chapter. 

3 ‘‘(3) VESSEL OWNED AND OPERATED BY DE4 FENSE CONTRACTOR.—A vessel meets the require5 ments of this paragraph if— 

6 ‘‘(A) during the period of an operating 

7 agreement under this chapter that applies to 

8 the vessel, the vessel will be owned and oper9 ated by a person that— 

10 ‘‘(i) is eligible to document a vessel 

11 under chapter 121 of this title; 

12 ‘‘(ii) operates or manages other 

13 United States-documented vessels for the 

14 Secretary of Defense, or charters other 

15 vessels to the Secretary of Defense; 

16 ‘‘(iii) has entered into a special secu17 rity agreement for purposes of this para18 graph with the Secretary of Defense; 

19 ‘‘(iv) makes the certification described 

20 in paragraph (2)(A)(ii)(III); and 

21 ‘‘(v) in the case of a vessel described 

22 in paragraph (2)(B), enters into an agree23 ment referred to in that paragraph; and 

24 ‘‘(B) the Administrator and the Secretary 

25 of Defense notify the appropriate committees of 


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1 Congress that they concur with the certification 

2 required under subparagraph (A)(iv), and have 

3 reviewed and agree that there are no other 

4 legal, operational, or other impediments that 

5 would prohibit the covered entity for the vessel 

6 from performing its obligations under an oper7 ating agreement under this chapter. 

8 ‘‘(4) VESSEL OWNED BY DOCUMENTATION CIT9 IZEN AND CHARTERED TO SECTION 50501 CITIZEN.— 

10 A vessel meets the requirements of this paragraph if, 

11 during the period of an operating agreement under 

12 this chapter that applies to the vessel, the vessel will 

13 be— 

14 ‘‘(A) owned by a person that is eligible to 

15 document a vessel under chapter 121; and 

16 ‘‘(B) demise chartered to a person that is 

17 a citizen of the United States under section 

18 50501. 

19 ‘‘§ 53603. Operating agreements 

20 ‘‘(a) IN GENERAL.—The Administrator shall require, 

21 as a condition of including any vessel in the Fleet, that 

22 the covered entity for the vessel enter into an operating 

23 agreement under this section. 

24 ‘‘(b) REQUIREMENTS.— 


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1 ‘‘(1) IN GENERAL.—An operating agreement re2 quired under subsection (a) shall require the vessel 

3 subject to such agreement to meet the following re4 quirements: 

5 ‘‘(A) During the period in which the vessel 

6 is operating under the agreement— 

7 ‘‘(i) the vessel will be crewed by only 

8 United States mariners; 

9 ‘‘(ii) the vessel shall be operated with10 in the Fleet exclusively in foreign com11 merce and not in coastwise trade; and 

12 ‘‘(iii) the covered entity will have in 

13 effect an emergency preparedness agree14 ment described in section 53605 for the 

15 period of such agreement. 

16 ‘‘(B) Beginning on the first day of the op17 erating agreement, the vessel will be perma18 nently ineligible for a coastwise endorsement 

19 under section 12112 of this title or to otherwise 

20 participate in the coastwise trade, even if the 

21 operating agreement is terminated or not re22 newed. 

23 ‘‘(2) COORDINATION WITH COAST GUARD RE24 GARDING COASTWISE TRADE PROHIBITION.—The 

25 Administrator shall coordinate with the Secretary of 


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1 the Department in which the Coast Guard is oper2 ating to ensure that any vessel that is, or was, cov3 ered by an operating agreement under this chapter 

4 is permanently ineligible for a coastwise endorse5 ment under section 12112 of this title or to other6 wise participate in the coastwise trade, as required 

7 under paragraph (1)(B). 

8 ‘‘(c) MILESTONES AND PAYMENTS.—The operating 

9 agreement shall— 

10 ‘‘(1) prescribe specific milestones for project 

11 completeness, as agreed upon between the Adminis12 trator and the covered entity; and 

13 ‘‘(2) specify the schedule of operating support 

14 payments, and as applicable, capital support pay15 ments and other incentives and payments, based on 

16 completion of such milestones and consistent with 

17 the eligible application submitted by the covered en18 tity under section 53602(c)(3)(A), as agreed to by 

19 the Administrator and the covered entity. 

20 ‘‘(d) INCENTIVES.— 

21 ‘‘(1) STATE OF THE ART TECHNOLOGY INCEN22 TIVES.—An operating agreement required under 

23 subsection (a) may include incentives to support the 

24 testing or adoption of state of the art technology, in25 cluding artificial intelligence, advanced shipbuilding 


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1 techniques, automation, modern propulsion systems, 

2 environmental performance, crew safety, military 

3 features, and other technologies identified by the 

4 Maritime Security Board to be relevant in advancing 

5 the military and economic security of the United 

6 States. 

7 ‘‘(2) PERFORMANCE INCENTIVES.—The oper8 ating agreement may include incentive payments for 

9 eligible entities that exceed the milestones estab10 lished under subsection (c)(1). 

11 ‘‘(e) LENGTH OF OPERATING AGREEMENT.— 

12 ‘‘(1) IN GENERAL.—An operating agreement to 

13 participate in the Fleet shall be for a period of 7 

14 years. 

15 ‘‘(2) RENEWAL OF AGREEMENT.— 

16 ‘‘(A) IN GENERAL.—A covered entity for a 

17 vessel participating in the Fleet under an oper18 ating agreement under this section may apply 

19 to renew such operating agreement. 

20 ‘‘(B) RENEWAL LIMITATION.—An oper21 ating agreement under this section may be re22 newed not more than 2 times. 

23 ‘‘(3) TERMINATION PAYMENT.— 

24 ‘‘(A) NO-FAULT TERMINATION DURING

25 CONTRACT.—Subject to subparagraph (B), a 


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1 covered entity for a vessel operating under an 

2 operating agreement under this section shall re3 ceive a termination payment if any of the fol4 lowing applies: 

5 ‘‘(i) NO-FAULT TERMINATION.—Cap6 ital support payments provided to a cov7 ered entity under an operating agreement 

8 are terminated during a contract term. 

9 ‘‘(ii) NO-FAULT NON-RENEWAL.—An 

10 operating agreement is not selected to be 

11 renewed under paragraph (2). 

12 ‘‘(B) ADMINISTRATOR DETERMINATION

13 FOR MATERIAL LACK OF COMPLIANCE.—In any 

14 case in which the Administrator determines 

15 under subsection (f) that a covered entity for a 

16 vessel operating under an operating agreement 

17 under this section materially fails to comply 

18 with the terms of the operating agreement and, 

19 due to such failure to comply, the operating 

20 agreement is terminated or not selected for re21 newal, the Administrator may determine that 

22 the covered entity is not entitled to a termi23 nation payment and subparagraph (A) shall not 

24 apply. 


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1 ‘‘(C) TERMINATION PAYMENT DEFINED.— 

2 In this paragraph, the term ‘termination pay3 ment’ means a payment in an amount that 

4 equals 50 percent of— 

5 ‘‘(i) the percentage of the remaining 

6 useful life of the vessel, calculated using 21 

7 years as the maximum useful life of the 

8 vessel; multiplied by 

9 ‘‘(ii) the difference in the cost of con10 structing the vessel in the United States 

11 and the cost of constructing the vessel in 

12 a foreign country, to the extent such cost 

13 difference was not recovered by the covered 

14 entity through payments received under 

15 any operating agreement under this sec16 tion. 

17 ‘‘(f) TERMINATION BY ADMINISTRATOR FOR LACK OF

18 PROGRAM PARTICIPANT COMPLIANCE.—If a covered enti19 ty for a vessel operating under an operating agreement 

20 under this section materially fails to comply with the 

21 terms of the operating agreement— 

22 ‘‘(1) the Administrator shall notify the covered 

23 entity and provide a reasonable opportunity to com24 ply with the operating agreement; and 


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1 ‘‘(2) if the covered entity fails to achieve such 

2 compliance, the Administrator— 

3 ‘‘(A) shall terminate the operating agree4 ment; 

5 ‘‘(B) shall not renew the operating agree6 ment under subsection (e)(2); and 

7 ‘‘(C) may take steps to recover an amount 

8 equal to the payments and incentives provided 

9 to the covered entity under this chapter. 

10 ‘‘(g) NONRENEWAL FOR LACK OF FUNDS.—If, by the 

11 first day of a fiscal year, sufficient funds have not been 

12 appropriated under the authority provided by this chapter 

13 for that fiscal year, then the Administrator shall notify 

14 the appropriate committees of Congress that operating 

15 agreements authorized under this chapter for which suffi16 cient funds are not available will not be renewed for that 

17 fiscal year if sufficient funds are not appropriated by the 

18 60th day of that fiscal year. 

19 ‘‘(h) RELEASE OF VESSELS FROM OBLIGATIONS.— 

20 ‘‘(1) IN GENERAL.—A vessel covered by an op21 erating agreement under this chapter is released 

22 from any further obligation under the operating 

23 agreement, except for the requirements of subsection 

24 (b)(1)(B), if— 


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1 ‘‘(A) the Administrator terminated or did 

2 not renew the operating agreement under sub3 section (f); or 

4 ‘‘(B) funds are not appropriated to the Ad5 ministrator for payments under the operating 

6 agreement under this chapter for any fiscal 

7 year by the 60th day of that fiscal year. 

8 ‘‘(2) AUTHORITY TO TRANSFER VESSEL.— 

9 ‘‘(A) IN GENERAL.—After a vessel is re10 leased from obligations under paragraph (1), 

11 the covered entity may transfer and register 

12 such vessel under a foreign registry that— 

13 ‘‘(i) is acceptable to the Administrator 

14 and the Secretary of Defense, and allows 

15 the requisitioning of the vessel for title or 

16 use, notwithstanding section 56101 of this 

17 title; and 

18 ‘‘(ii) is not a foreign country of con19 cern. 

20 ‘‘(B) EMERGENCY ACQUISITION OF VES21 SELS.—If chapter 563 of this title is applicable 

22 to a vessel after registration in a foreign reg23 istry described in subparagraph (A), then the 

24 vessel is available to be requisitioned by the 


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1 Secretary of Transportation pursuant to such 

2 chapter. 

3 ‘‘(i) JUDICIAL REVIEW.—No court shall have juris4 diction to review the Administrator’s decision with respect 

5 to the award or non-award of an operating agreement 

6 issued under this chapter. 

7 ‘‘§ 53604. Payments 

8 ‘‘(a) IN GENERAL.—An operating agreement under 

9 this chapter shall require that the Administrator make 

10 payments to the covered entity, in accordance with the 

11 milestones established under section 53603(c)(1) and the 

12 operating agreement under section 53603 and subject to 

13 the availability of appropriations under subsection (e). 

14 ‘‘(b) LIMITATIONS.—Notwithstanding any other pro15 vision of this chapter, the Administrator shall not make 

16 any payment under this chapter for a vessel— 

17 ‘‘(1) with respect to any day for which— 

18 ‘‘(A) the vessel is not operated or main19 tained in accordance with an operating agree20 ment under this chapter; 

21 ‘‘(B) the vessel is under a charter to the 

22 United States Government; or 


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1 ‘‘(C) except as provided under subsection 

2 (c), the vessel is engaged in transporting mili3 tary or other preference cargoes under section 

4 55302(a), 55304, 55305, or 55314 of this title, 

5 section 2631 of title 10, or any other cargo 

6 preference law of the United States; or 

7 ‘‘(2) that participates in the coastwise trade in 

8 violation of the operating agreement and section 

9 53603(b)(1)(B). 

10 ‘‘(c) PREFERENCE CARGOS.—The Administrator 

11 may waive the requirement of subsection (b)(1)(C) to the 

12 extent, in the manner, and on the terms the Administrator 

13 prescribes, only if— 

14 ‘‘(1) the Administrator, acting in the Adminis15 trator’s capacity as Director of the National Ship16 ping Authority, makes a determination of the non17 availability of qualified vessels of the United States 

18 that are not enrolled in the Strategic Commercial 

19 Fleet; 

20 ‘‘(2) the Administrator ensures reasonable no21 tice has been provided to the owners and operators 

22 of qualified vessels of the United States that are not 

23 enrolled in the Strategic Commercial Fleet; and 

24 ‘‘(3) by not later than 7 days after issuing a 

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1 fies the appropriate committees of Congress and 

2 posts such waiver on a public website of the Mari3 time Administration. 

4 ‘‘(d) OPERATING AGREEMENT IS OBLIGATION OF

5 UNITED STATES GOVERNMENT.—An operating agree6 ment under this chapter constitutes a contractual obliga7 tion of the United States Government to pay the amounts 

8 provided for in the agreement, subject to the availability 

9 of appropriations under subsection (e). 

10 ‘‘(e) APPROPRIATIONS FROM THE MARITIME SECU11 RITY TRUST FUND.— 

12 ‘‘(1) IN GENERAL.—There is authorized to be 

13 appropriated to the Administrator for payments to 

14 covered entities under this section, out of the Mari15 time Security Trust Fund established under section 

16 9512 of the Internal Revenue Code of 1986— 

17 ‘‘(A) for fiscal year 2025, $150,000,000; 

18 ‘‘(B) for fiscal year 2026, $300,000,000; 

19 ‘‘(C) for fiscal year 2027, $550,000,000; 

20 ‘‘(D) for fiscal year 2028, $800,000,000; 

21 ‘‘(E) for fiscal year 2029, $1,000,000,000; 

22 ‘‘(F) for fiscal year 2030, $1,200,000,000; 

23 ‘‘(G) for fiscal year 2031, $1,400,000,000; 

24 ‘‘(H) for fiscal year 2032, $1,600,000,000; 


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1 ‘‘(I) for fiscal year 2033, $1,900,000,000; 

2 and 

3 ‘‘(J) for fiscal year 2034, $2,100,000,000. 

4 ‘‘(2) AVAILABILITY.—Amounts made available 

5 under paragraph (1) shall remain available until ex6 pended. 

7 ‘‘(f) CLARIFICATION.—The provision by the Adminis8 trator of a payment under this section shall not be consid9 ered to be a major Federal action under the National En10 vironmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 

11 or an undertaking for the purposes of division A of subtitle 

12 III of title 54, United States Code. 

13 ‘‘(g) BUY AMERICA.—Section 54101(d)(2) shall 

14 apply to any funds obligated by the Administrator under 

15 this section. 

16 ‘‘§ 53605. National security requirements 

17 ‘‘(a) EMERGENCY PREPAREDNESS AGREEMENT RE18 QUIRED.—The Administrator, in coordination with the 

19 Secretary of Defense, shall establish an emergency pre20 paredness program under this section under which the 

21 program participant for an operating agreement under 

22 this chapter shall agree, as a condition of the operating 

23 agreement, to enter into an emergency preparedness 

24 agreement with the Administrator. The Administrator 

25 shall negotiate and enter into an emergency preparedness 


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1 agreement with each program participant as promptly as 

2 practicable after the program participant has entered into 

3 the operating agreement. 

4 ‘‘(b) USE OF EXISTING PROGRAM.—The Adminis5 trator may use an existing emergency preparedness pro6 gram, as of the date of enactment of the SHIPS for Amer7 ica Act of 2024, to satisfy the requirements of subsection 

8 (a). 

9 ‘‘(c) TERMS OF AGREEMENT.—The terms of an 

10 emergency preparedness agreement under this section 

11 shall— 

12 ‘‘(1) provide that upon request by the Secretary 

13 of Defense during time of war or national emer14 gency, or whenever determined by the Secretary of 

15 Defense to be necessary for national security or con16 tingency operation (as that term is defined in section 

17 101 of title 10), the program participant shall make 

18 available commercial transportation resources (in19 cluding services) described in subsection (e) to the 

20 Secretary of Defense; 

21 ‘‘(2) shall include such additional terms as may 

22 be established by the Administrator and the Sec23 retary of Defense; and 

24 ‘‘(3) shall allow for the modification or addition 

25 of terms upon agreement by the Administrator and 


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1 the program participant and the approval by the 

2 Secretary of Defense. 

3 ‘‘(d) PARTICIPATION AFTER EXPIRATION OF OPER4 ATING AGREEMENT.—The Administrator may not require, 

5 through an emergency preparedness agreement or an op6 erating agreement, that a program participant covered by 

7 an operating agreement continue to participate in an 

8 emergency preparedness agreement after the operating 

9 agreement has expired according to its terms or is other10 wise no longer in effect. After the expiration of an emer11 gency preparedness agreement, a program participant 

12 may voluntarily continue to participate in the agreement. 

13 ‘‘(e) RESOURCES MADE AVAILABLE.—The commer14 cial transportation resources to be made available under 

15 an emergency preparedness agreement shall include ves16 sels or capacity in vessels, terminal facilities, management 

17 services, and other related services, or any agreed portion 

18 of such nonvessel resources for activation as the Secretary 

19 of Defense may determine to be necessary, seeking to min20 imize disruption of the program participant’s service to 

21 commercial customers. 

22 ‘‘(f) COMPENSATION.— 

23 ‘‘(1) IN GENERAL.—The Administrator shall in24 clude in each emergency preparedness agreement 

25 provisions approved by the Secretary of Defense 


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1 under which the Secretary of Defense shall pay fair 

2 and reasonable compensation for all commercial 

3 transportation resources provided pursuant to this 

4 section. 

5 ‘‘(2) SPECIFIC REQUIREMENTS.—Compensation 

6 under this subsection— 

7 ‘‘(A) shall not be less than the program 

8 participant’s commercial market charges for 

9 like transportation resources; 

10 ‘‘(B) shall be fair and reasonable consid11 ering all circumstances; 

12 ‘‘(C) shall be provided from the time that 

13 a vessel or resource is required by the Secretary 

14 of Defense until the time it is redelivered to the 

15 program participant and is available to reenter 

16 commercial service; and 

17 ‘‘(D) shall be in addition to and shall not 

18 in any way reflect amounts payable under sec19 tion 53604 of this title. 

20 ‘‘(g) TEMPORARY REPLACEMENT VESSELS.—Not21 withstanding section 55302(a), 55304, 55305, or 55314 

22 of this title, section 2631 of title 10, or any other cargo 

23 preference law of the United States— 

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1 ity in a foreign vessel, as a temporary replacement 

2 for a vessel of the United States or vessel of the 

3 United States capacity that is activated by the Sec4 retary of Defense under an emergency preparedness 

5 agreement or a primary Department of Defense sea6 lift-approved readiness program; and 

7 ‘‘(2) such replacement vessel or vessel capacity 

8 shall be eligible during the replacement period to 

9 transport preference cargoes subject to sections 

10 55302(a), 55304, 55305, and 55314 of this title and 

11 section 2631 of title 10, to the same extent as the 

12 eligibility of the vessel or vessel capacity replaced. 

13 ‘‘(h) REDELIVERY AND LIABILITY OF THE UNITED

14 STATES FOR DAMAGES.— 

15 ‘‘(1) IN GENERAL.—All commercial transpor16 tation resources activated under an emergency pre17 paredness agreement shall, upon termination of the 

18 period of activation, be redelivered to the program 

19 participant in the same good order and condition as 

20 when received, less ordinary wear and tear, or the 

21 Secretary of Defense shall fully compensate the pro22 gram participant for any necessary repair or replace23 ment. 

24 ‘‘(2) LIMITATION ON UNITED STATES LIABIL25 ITY.—Except as may be expressly agreed in an 


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1 emergency preparedness agreement, or as otherwise 

2 provided by law, the Government shall not be liable 

3 for disruption of a program participant’s commercial 

4 business or other consequential damages to the pro5 gram participant arising from the activation of com6 mercial transportation resources under an emer7 gency preparedness agreement. 

8 ‘‘§ 53606. Regulations 

9 ‘‘The Administrator and the Secretary of Defense 

10 may each prescribe rules as necessary to carry out their 

11 respective responsibilities under this chapter.’’. 

12 (b) CONFIRMING AMENDMENTS.—Section 51307(b) 

13 of title 46, United States Code, is amended— 

14 (1) in paragraph (1)— 

15 (A) in the matter preceding subparagraph 

16 (A)— 

17 (i) by striking ‘‘, or the’’ and inserting 

18 ‘‘, the’’; and 

19 (ii) by inserting ‘‘, or the Strategic 

20 Commercial Fleet under chapter 536 of 

21 this title’’ before ‘‘to—’’; and 

22 (B) in subparagraph (A), by striking ‘‘or 

23 Tanker Security Fleet vessel’’ and inserting 

24 ‘‘Tanker Security Fleet vessel, or Strategic 

25 Commercial Fleet vessel’’; and 


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1 (2) in paragraph (2), by striking ‘‘or 534’’ and 

2 inserting ‘‘534, or 536’’. 

3 (c) CLERICAL AMENDMENT.—The table of chapters 

4 for subtitle V of title 46, United States Code, is amended 

5 by adding at the end the following: 

‘‘536. Strategic Commercial Fleet ........................................................... 53601’’. 

6 SEC. 402. MARITIME SECURITY PROGRAM. 

7 (a) ANNUAL PAYMENTS.—Section 53106(a)(1) of 

8 title 46, United States Code, is amended— 

9 (1) in subparagraph (C), by striking ‘‘fiscal 

10 years 2022, 2023, 2024, and 2025’’ and inserting 

11 ‘‘fiscal years 2022, 2023, and 2024’’; and 

12 (2) by striking subparagraphs (D) through (F) 

13 and inserting the following: 

14 ‘‘(D) $6,500,000 for each of fiscal years 

15 2025 and 2026; 

16 ‘‘(E) $6,675,000 for each of fiscal years 

17 2027 and 2028; 

18 ‘‘(F) $6,855,000 for each of fiscal years 

19 2029 and 2030; 

20 ‘‘(G) $7,040,000 for each of fiscal years 

21 2031 and 2032; and 

22 ‘‘(H) $7,230,000 for each of fiscal years 

23 2033 and 2034.’’. 

24 (b) CARGO PREFERENCE.—Section 53105(a) of title 

25 46, United States Code, is amended— 


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1 (1) in paragraph (2), by striking ‘‘and’’ after 

2 the semicolon; 

3 (2) in paragraph (3), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(4) except for the limitations established under 

7 subsection (d), the vessel shall receive priority con8 sideration to carry military or other preference car9 goes under section 55305 or 55314 of this title, sec10 tion 2631 of title 10, or any other cargo preference 

11 law of the United States, over vessels of the United 

12 States that are enrolled in other financial assistance 

13 programs established under chapters 532, 534, and 

14 536 of this part.’’. 

15 (c) MARITIME SECURITY FLEET.— 

16 (1) TEST.—Not later than 180 days after the 

17 date of enactment of this Act, the Commander of 

18 the United States Transportation Command, in co19 ordination with the Secretary of the Navy and the 

20 Maritime Administrator, shall devise a tabletop exer21 cise to test the effective control of the Maritime Se22 curity Fleet under chapter 531 of title 46, United 

23 States Code, in case of crisis or war. 

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1 mit to the appropriate committees of Congress a 

2 briefing on the results of the tabletop exercise under 

3 paragraph (1). 

4 (3) ANNUAL TESTING.—Beginning not later 

5 than 1 year after the briefing is submitted under 

6 paragraph (2), the Commander shall— 

7 (A) carry out tabletop drills to test effec8 tive control of the Maritime Security Fleet 

9 under chapter 531 of title 46, United States 

10 Code; and 

11 (B) provide to the appropriate committees 

12 of Congress a briefing after each such drill on 

13 the results of such drill. 

14 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

15 53111 of title 46, United States Code, is amended— 

16 (1) in paragraph (3), by striking ‘‘fiscal years 

17 2022, 2023, 2024, and 2025’’ and inserting ‘‘fiscal 

18 years 2022, 2023, and 2024’’; and 

19 (2) by striking paragraphs (4) through (6) and 

20 inserting the following: 

21 ‘‘(4) $390,000,000 for each of fiscal years 2025 

22 and 2026; 

23 ‘‘(5) $400,500,000 for each of fiscal years 2027 

24 and 2028; 


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1 ‘‘(6) $411,300,000 for each of fiscal years 2029 

2 and 2030; 

3 ‘‘(7) $422,400,000 for each of fiscal years 2031 

4 and 2032; and 

5 ‘‘(8) $433,800,000 for each of fiscal years 2033 

6 and 2034.’’. 

7 SEC. 403. CABLE SECURITY FLEET. 

8 (a) ANNUAL PAYMENTS.—Section 53206(a)(1) of 

9 title 46, United States Code, is amended by striking 

10 ‘‘equal to $5,000,000 for each fiscal year 2021 through 

11 2035’’ and inserting ‘‘equal to— 

12 ‘‘(A) $6,500,000 for each of fiscal years 

13 2025 and 2026; 

14 ‘‘(B) $8,000,000 for each of fiscal years 

15 2027 and 2028; 

16 ‘‘(C) $9,500,000 for each of fiscal years 

17 2029 and 2030; 

18 ‘‘(D) $10,500,000 for each of fiscal years 

19 2031 and 2032; and 

20 ‘‘(E) $12,000,000 for each of fiscal years 

21 2033 and 2034.’’. 

22 (b) ASSESSMENT OF UNDERSEA CABLE REPAIR

23 CONTINGENCIES.— 

24 (1) IN GENERAL.—Not later than 180 days 

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1 retary of Defense, in coordination with the Maritime 

2 Administrator, the Federal Communications Com3 mission, and other relevant Federal agencies, shall 

4 submit to the appropriate committees of Congress 

5 an assessment on the ability and preparedness of the 

6 USNS Zeus and the Cable Security Fleet under 

7 chapter 532 of title 46, United States Code, to re8 pair transoceanic submarine fiber optic cables that 

9 may be damaged or cut by adversaries. 

10 (2) CONTENTS.—The assessment under para11 graph (1) shall include— 

12 (A) a description of preparedness to ad13 dress a situation in which the cables of partner 

14 countries in both the Pacific and Atlantic 

15 Oceans are damaged or severed at or around 

16 the same time; 

17 (B) a determination as to how long it 

18 would take for the Cable Security Fleet, in co19 ordination with partner countries, to repair 

20 such cables; and 

21 (C) the options available to provide 

22 connectivity in an emergency or crisis caused 

23 by, or related to, the damaging or severing of 

24 such cables. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 53209 of title 46, United States Code, is amended— 

3 (1) by striking ‘‘section 53206, $10,000,000 for 

4 each of the fiscal years 2021 through 2035.’’; and 

5 inserting the following: ‘‘section 53206— 

6 ‘‘(1) $13,000,000 for each of fiscal years 2025 

7 and 2026; 

8 ‘‘(2) $16,000,000 for each of fiscal years 2027 

9 and 2028; 

10 ‘‘(3) $19,000,000 for each of fiscal years 2029 

11 and 2030; 

12 ‘‘(4) $21,000,000 for each of fiscal years 2031 

13 and 2032; and 

14 ‘‘(5) $24,000,000 for each of fiscal years 2033 

15 and 2034.’’. 

16 SEC. 404. TANKER SECURITY FLEET. 

17 (a) PAYMENTS.—Section 53406(a) of title 46, United 

18 States Code, is amended— 

19 (1) by striking ‘‘$6,000,000’’ and inserting 

20 ‘‘$9,000,000.’’; and 

21 (2) by striking the last sentence. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

23 53411 of title 46, United States Code, is amended by 

24 striking ‘‘, and $120,000,000 for fiscal years 2024 

25 through 2035’’ and inserting ‘‘, $120,000,000 for fiscal 


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1 year 2024, and $180,000,000 for fiscal years 2025 

2 through 2035’’. 

3 SEC. 405. MODIFICATION TO DUTIES RELATING TO EQUIP4 MENT AND REPAIR OF VESSELS. 

5 (a) IN GENERAL.—Section 466 of the Tariff Act of 

6 1930 (19 U.S.C. 1466) is amended— 

7 (1) in subsection (a), in the first sentence, by 

8 striking ‘‘50 per centum on the cost thereof in such 

9 foreign country’’ and inserting ‘‘70 percent of the 

10 cost thereof in such foreign country or, in the case 

11 of a foreign country of concern (as defined in section 

12 4 of the SHIPS for America Act of 2024), 200 per13 cent of the cost thereof in such country’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(i) During the period beginning on the date of enact16 ment of the SHIPS for America Act of 2024 and ending 

17 on December 31, 2034, the duty imposed under subsection 

18 (a) shall not apply to the cost of equipment, or any part 

19 of equipment, purchased for, or expenses of repair parts 

20 or materials to be used for, or repairs made in a foreign 

21 country, unless such country is a foreign country of con22 cern (as defined in section 4 of the SHIPS for America 

23 Act of 2024, on, a vessel engaged in foreign trade if the 

24 Maritime Administrator confirms that— 

25 ‘‘(1) the vessel— 


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1 ‘‘(A) is participating in— 

2 ‘‘(i) the Maritime Security Fleet 

3 under chapter 531 of title 46, United 

4 States Code; 

5 ‘‘(ii) the Cable Security Fleet under 

6 chapter 532 of such title; 

7 ‘‘(iii) the Tanker Security Fleet under 

8 chapter 534 of such title; or 

9 ‘‘(iv) the Strategic Commercial Fleet 

10 under chapter 536 of such title; or 

11 ‘‘(B) has a Voluntary Intermodal Sealift 

12 Agreement or Voluntary Tanker Agreement 

13 with the Maritime Administrator in effect; and 

14 ‘‘(2) the owner or master of the vessel certifies 

15 to the Maritime Administrator in writing that a 

16 good faith effort was made to purchase equipment or 

17 carry out repairs in a shipyard of the United 

18 States.’’. 

19 (b) REPORT REQUIRED.—Not less than 2 years after 

20 the date of enactment of this Act, and every 2 years there21 after through December 31, 2034, the Maritime Adminis22 trator shall submit to the appropriate committees of Con23 gress a report— 

24 (1) describing the number of vessels that paid 

25 the duties under section 466 of the Tariff Act of 


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1 1930 (19 U.S.C. 1466), and the location where the 

2 repairs described in such section occurred; 

3 (2)(A) identifying shipyards of the United 

4 States that have capacity to carry out vessel repairs; 

5 and 

6 (B) describing the extent to which vessels of the 

7 United States chose to conduct repairs in such ship8 yards during the period covered by the report; 

9 (3) evaluating the effectiveness of section 466 

10 of the Tariff Act of 1930 (19 U.S.C. 1466) in en11 couraging the repair of vessels of the United States 

12 in shipyards of the United States; and 

13 (4) making recommendations for additional reg14 ulatory or legislative steps which could be taken to 

15 support the United States vessel repair industrial 

16 base. 

17 Subtitle B—Cargo Preference 

18 SEC. 411. UNITED STATES GOVERNMENT CARGO. 

19 (a) SENSE OF CONGRESS.—It is the sense of the Con20 gress that— 

21 (1) only the Maritime Administrator, acting in 

22 the Administrator’s capacity as Director of the Na23 tional Shipping Authority, has the authority to de24 termine the non-availability of qualified capacity of 

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1 section as ‘‘qualified United States flag capacity’’) 

2 at fair and reasonable rates for commercial vessels 

3 of the United States to meet the requirements of 

4 section 55305 or 55314 of title 46, United States 

5 Code; 

6 (2) the requirements of section 55305 or 55314 

7 of title 46, United States Code, may only be waived 

8 temporarily by the President, the Secretary of De9 fense, or the Secretary of Transportation during a 

10 declared emergency justifying such a temporary 

11 waiver, following a determination by the Maritime 

12 Administrator, acting in the Maritime Administra13 tor’s capacity as Director of the National Shipping 

14 Authority, of the non-availability of qualified United 

15 States flag capacity at fair and reasonable rates for 

16 commercial vessels of the United States pursuant to 

17 section 55305(d) of title 46, United States Code; 

18 and 

19 (3) nothing in title II of the Food for Peace Act 

20 (7 U.S.C. 1721 et seq.) authorizes the Administrator 

21 of the United States Agency for International Devel22 opment or the Secretary of Agriculture to waive the 

23 requirements of section 55305 or 55314 of title 46, 

24 United States Code, without first obtaining— 


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1 (A) delegated authority from the President 

2 of the United States; 

3 (B) an emergency declaration justifying 

4 such a temporary waiver, pursuant to section 

5 55305(d) of title 46, United States Code; and 

6 (C) a determination by the Maritime Ad7 ministrator, acting in the Maritime Administra8 tor’s capacity as Director of the National Ship9 ping Authority, on the non-availability of quali10 fied United States flag capacity at fair and rea11 sonable rates for commercial vessels of the 

12 United States pursuant to section 55305(d) of 

13 title 46, United States Code. 

14 (b) APPLICABLE PERCENTAGE.— 

15 (1) IN GENERAL.—Section 55305(a) of title 46, 

16 United States Code, is amended by striking ‘‘at least 

17 50’’ and inserting ‘‘100’’. 

18 (2) EFFECTIVE DATE.—The amendment made 

19 by paragraph (1) shall take effect on the date that 

20 is 180 days after the date of enactment of this Act. 

21 (c) CLARIFICATION.—Section 55305(d) of title 46, 

22 United States Code, is amended— 

23 (1) in paragraph (1), by inserting ‘‘a consulta24 tion with the Maritime Security Board’’ after ‘‘fol25 lowing’’; and 


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1 (2) in paragraph (3)(B), by inserting ‘‘Maritime 

2 Security Board and the’’ after ‘‘to the’’. 

3 SEC. 412. CARGO PREFERENCE IMPLEMENTATION REGULA4 TIONS. 

5 (a) REGULATIONS AND GUIDANCE.—Not later than 

6 180 days after the date of enactment of this Act, the Mari7 time Administrator, notwithstanding any other provision 

8 of law, regulation, or administrative order, shall— 

9 (1) promulgate regulations under subchapter 

10 III of chapter 5 of title 5, United States Code, to 

11 fully implement and ensure compliance with sections 

12 55305, 55314, 55315, and 55316 of title 46, United 

13 States Code; 

14 (2) issue interagency guidance to other Federal 

15 departments and agencies on how to administer the 

16 programs that are subject to such sections in accord17 ance with those sections, as applicable; and 

18 (3) publish such guidance in the Federal Reg19 ister and on the website of the Maritime Administra20 tion. 

21 (b) CONSULTATION.—The Administrator may consult 

22 with the Food Aid Consultative Group established by sec23 tion 205 of the Food for Peace Act (7 U.S.C. 1725) in 

24 carrying out this section. 


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1 (c) REPEAL OF EARLIER REGULATORY DEADLINE.— 

2 Subsection (a) of section 3502 of the James M. Inhofe 

3 National Defense Authorization Act for Fiscal Year 2023 

4 (46 U.S.C. 55305 note; Public Law 117–263), is repealed. 

5 SEC. 413. CARGO PREFERENCE OVERSIGHT AND AUDIT. 

6 Section 55301 of title 46, United States Code, is 

7 amended— 

8 (1) in subsection (a)(2), by striking ‘‘section 

9 55305’’ and inserting ‘‘sections 55305, 55314, 

10 55315, and 55316’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(d) NOTIFICATION OF VIOLATION.—The Maritime 

13 Administrator shall— 

14 ‘‘(1) upon receiving any credible information, as 

15 determined by the Administrator, that a Federal de16 partment or agency that administers a program cov17 ered by a report required under subsection (a) was 

18 not in compliance with the requirements of section 

19 55305, 55314, 55315, or 55316 of this title (as ap20 plicable), notify the Committee on Commerce, 

21 Science, and Transportation of the Senate and the 

22 Committee on Transportation and Infrastructure of 

23 the House of Representatives not later than 14 days 

24 after receiving such information; and 


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1 ‘‘(2) upon receiving any credible information, as 

2 determined by the Administrator, that a Federal de3 partment or agency that administers a program cov4 ered by a report required under subsection (a) was 

5 not in compliance with the requirements of section 

6 2631 of title 10, United States Code, notify the 

7 Committee on Commerce, Science, and Transpor8 tation and the Committee on Armed Services of the 

9 Senate and the Committee on Transportation and 

10 Infrastructure and the Committee on Armed Serv11 ices of the House of Representatives not later than 

12 14 days after receiving such information.’’. 

13 SEC. 414. FINANCING THE TRANSPORTATION OF AGRICUL14 TURAL PRODUCTS. 

15 (a) IN GENERAL.—Subchapter II of chapter 553 of 

16 title 46, United States Code, is amended by inserting after 

17 section 55315 the following: 

18 ‘‘§ 55316. Financing the transportation of agricultural 

19 products 

20 ‘‘(a) FINANCING OF INCREASED COSTS.—The Sec21 retary of Transportation shall finance any increased ocean 

22 freight costs incurred in any fiscal year that result from 

23 the application of section 55305 of this title to the agricul24 tural export programs specified in section 55314(b) of this 

25 title. 


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1 ‘‘(b) REIMBURSEMENT OF INCREASED COSTS.— 

2 ‘‘(1) IN GENERAL.—The Secretary of Transpor3 tation shall reimburse the Secretary of Agriculture, 

4 the Commodity Credit Corporation, and the United 

5 States Agency for International Development for the 

6 amount by which, in any fiscal year— 

7 ‘‘(A) the total cost of ocean freight and 

8 ocean freight differential for which obligations 

9 are incurred by the Secretary of Agriculture, 

10 the Corporation, and the United States Agency 

11 for International Development on exports of ag12 ricultural products under the agricultural ex13 port programs specified in section 55314(b) of 

14 this title; exceeds 

15 ‘‘(B) 20 percent of the value of the agricul16 tural products and the cost of the ocean freight 

17 and ocean freight differential on which obliga18 tions are incurred by the Secretary of Agri19 culture, the Corporation, and the United States 

20 Agency for International Development during 

21 that fiscal year. 

22 ‘‘(2) AGRICULTURAL PRODUCTS SHIPPED FROM

23 INVENTORY.—For purposes of this subsection, agri24 cultural products shipped from the inventory of the 

25 Corporation shall be valued as provided in section 


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1 412(d) of the Food for Peace Act (7 U.S.C. 

2 1736f(d)). 

3 ‘‘(c) INTERAGENCY AGREEMENT.— 

4 ‘‘(1) IN GENERAL.—By not later than 180 days 

5 after the date of enactment of the SHIPS for Amer6 ica Act of 2024, the Secretary of Transportation 

7 shall enter into an interagency agreement with the 

8 head of each agency entitled to reimbursement under 

9 subsection (b)(1). 

10 ‘‘(2) CONTENTS.—Each interagency agreement 

11 shall include— 

12 ‘‘(A) an explanation of the process the 

13 agency shall follow to receive a reimbursement 

14 from the Secretary of Transportation under this 

15 section; 

16 ‘‘(B) a standard methodology for calcu17 lating the reimbursement an agency is entitled 

18 to under this section; and 

19 ‘‘(C) deadlines— 

20 ‘‘(i) by which an agency shall submit 

21 a reimbursement request in order to re22 ceive reimbursement; and 

23 ‘‘(ii) by which the Secretary of Trans24 portation shall approve a properly filed re25 imbursement request, which date shall not 


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1 be more than 90 days after the date on 

2 which the reimbursement request is sub3 mitted. 

4 ‘‘(3) CONGRESSIONAL NOTIFICATION.—The 

5 Secretary of Transportation shall notify the appro6 priate committees of Congress— 

7 ‘‘(A) when each interagency agreement re8 quired under this subsection is finalized; and 

9 ‘‘(B) any time that an interagency agree10 ment required under this subsection is updated. 

11 ‘‘(d) AGRICULTURAL PRODUCT DEFINED.—In this 

12 section, the term ‘agricultural product’ has the meaning 

13 given the term in section 55314 of title 46, United States 

14 Code. 

15 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—Each 

16 fiscal year, there is authorized to be appropriated, out of 

17 the Maritime Security Trust Fund established under sec18 tion 9512 of the Internal Revenue Code of 1986, an 

19 amount sufficient to reimburse the Secretary of Transpor20 tation for the costs incurred under this section, including 

21 administrative expenses.’’. 

22 (b) CLERICAL AMENDMENT.—The table of sections 

23 for subchapter II of chapter 553 of title 46, United States 

24 Code, is amended by inserting after the item relating to 

25 section 55315 the following: 

‘‘55316. Financing the transportation of agricultural products.’’. 


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1 SEC. 415. IMPORTATION FROM CHINA ON AMERICAN SHIPS. 

2 (a) IN GENERAL.—Chapter 605 of title 46, United 

3 States Code, is amended by adding at the end the fol4 lowing: 

5 ‘‘§ 60508. Importation on American ships 

6 ‘‘(a) IN GENERAL.—Notwithstanding any other pro7 vision of law, not less than the covered percentage, as de8 scribed in subsection (b), of covered goods by tonnage im9 ported into the United States from a foreign port shall 

10 be imported on a vessel that is— 

11 ‘‘(1) a vessel of the United States; 

12 ‘‘(2) crewed by United States mariners; and 

13 ‘‘(3) built in the United States. 

14 ‘‘(b) PERCENTAGE.—A covered percentage under this 

15 section is the following: 

16 ‘‘(1) One percent in the year that is 5 years 

17 after the date of enactment of this section. 

18 ‘‘(2) Two percent in the year that is 6 years 

19 after the date of enactment of this section. 

20 ‘‘(3) Three percent in the year that is 7 years 

21 after the date of enactment of this section. 

22 ‘‘(4) Four percent in the year that is 8 years 

23 after the date of enactment of this section. 

24 ‘‘(5) Five percent in the year that is 9 years 

25 after the date of enactment of this section. 


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1 ‘‘(6) Six percent in the year that is 10 years 

2 after the date of enactment of this section. 

3 ‘‘(7) Seven percent in the year that is 11 years 

4 after the date of enactment of this section. 

5 ‘‘(8) Eight percent in the year that is 12 years 

6 after the date of enactment of this section. 

7 ‘‘(9) Nine percent in the year that is 13 years 

8 after the date of enactment of this section. 

9 ‘‘(10) Ten percent in the year that is 14 years 

10 after the date of enactment of this section. 

11 ‘‘(c) APPLICATION.—The requirement under sub12 section (a) shall be applied to any shipper importing goods 

13 into the United States that originates from a foreign port 

14 or place. 

15 ‘‘(d) FINE FOR FAILURE TO COMPLY.— 

16 ‘‘(1) IN GENERAL.—On an annual basis, the 

17 Maritime Administrator shall issue a fine to any en18 tity failing to comply with the requirements under 

19 this section. 

20 ‘‘(2) AMOUNT.—The amount of a fine under 

21 this section shall be in an amount set by the Mari22 time Administrator that is greater than the dif23 ference in cost between— 


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1 ‘‘(A) the cost of employing a vessel of the 

2 United States that is built in the United States 

3 and crewed by United States mariners; and 

4 ‘‘(B) the cost of employing a foreign vessel, 

5 flying a flag of convenience, manufactured out6 side of the United States. 

7 ‘‘(3) USE OF AMOUNTS.—Any amount collected 

8 under this subsection shall be deposited in the Mari9 time Security Trust Fund. 

10 ‘‘(e) RULEMAKING REQUIRED.—Not later than 4 

11 years after the date of enactment of this section, the Mari12 time Administrator, in coordination with the Secretary of 

13 Homeland Security and the Chairman of the Federal Mar14 itime Commission, shall promulgate a final rule that es15 tablishes a system that— 

16 ‘‘(1) identifies persons and goods that are sub17 ject to the requirements of this section; 

18 ‘‘(2) establishes requirements for such persons 

19 and goods that meet the applicable percentages es20 tablished under subsection (b); 

21 ‘‘(3) establishes clear enforcement mechanisms 

22 to ensure compliance with this section; and 

23 ‘‘(4) determines the amount of a fine issued 

24 under subsection (d). 

25 ‘‘(f) DEFINITIONS.—In this section: 


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1 ‘‘(1) COVERED GOODS.—The term ‘covered 

2 goods’ means goods manufactured in the People’s 

3 Republic of China. 

4 ‘‘(2) SHIPPER.—The term ‘shipper’ has the 

5 meaning given such term in section 40102 of this 

6 title.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 605 of title 46, United States Code, is amend9 ed by adding at the end the following: 

‘‘60508. Importation on American ships.’’. 

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

11 (a) IN GENERAL.—Part D of subtitle V of title 46, 

12 United States Code, is amended by inserting after chapter 

13 553 the following: 

14 ‘‘CHAPTER 555—PRIORITY FOR VESSELS 

15 OF THE UNITED STATES 

‘‘Sec. 

‘‘55501. Priority for vessels of the United States. 

16 ‘‘§ 55501. Priority for vessels of the United States 

17 ‘‘(a) IN GENERAL.—A vessel of the United States 

18 shall be given priority at any port in the United States, 

19 ahead of a waiting vessel of a foreign country. 

20 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a), 

21 if the Secretary of Transportation finds that it is in the 

22 national interest, the Secretary may eliminate this priority 

23 at any port. The Secretary shall report to the appropriate 


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1 committees of Congress, as defined in section 4 of the 

2 SHIPS for America Act of 2024, by not later than 30 

3 days after an action eliminating priority under this sec4 tion.’’. 

5 (b) CLERICAL AMENDMENT.—The table of chapters 

6 for subtitle V of title 46, United States Code, is amended 

7 by adding at the end the following: 

‘‘555. Priority for vessels of the United States ....................................... 55501’’. 

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

9 STATES. 

10 (a) ASSESSMENT REQUIRED.—Not later than 180 

11 days after the date of enactment of this Act, the Maritime 

12 Security Advisor, in consultation with the Secretary of 

13 Transportation, the Secretary of Commerce, the Chairman 

14 of the Federal Maritime Commission, and the United 

15 States Trade Representative, shall— 

16 (1) conduct an assessment that identifies au17 thorities available under current Federal law, as of 

18 the date of such identification, that may be utilized 

19 to incentivize the movement of commercial cargo on 

20 vessels of the United States in international com21 merce; and 

22 (2) makes recommendations to the President to 

23 utilize such authorities. 

24 (b) INCLUSIONS.—The assessment required under 

25 subsection (a) shall include an evaluation of— 


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1 (1) tax benefits for taxpayers who ship goods 

2 aboard vessels of the United States; 

3 (2) modifications to import and export duties 

4 for goods imported or exported aboard vessels of the 

5 United States; 

6 (3) privileges for vessels of the United States 

7 that enable vessels of the United States to provide 

8 improved service relative to other vessels in inter9 national commerce; and 

10 (4) any other authorities that would incentivize 

11 the movement of goods aboard vessels of the United 

12 States. 

13 (c) REPORT TO CONGRESS.—Upon carrying out the 

14 assessment required under subsection (a), the Maritime 

15 Security Advisor shall submit to the appropriate commit16 tees of Congress— 

17 (1) a list of the recommendations made under 

18 subsection (a)(2); and 

19 (2) a list of additional actions that could be 

20 taken by Congress to further incentivize the move21 ment of commercial cargo on vessels of the United 

22 States. 

23 (d) DEFINITION.—In this section, the term ‘‘vessel 

24 of the United States’’ has the meaning given the term in 

25 section 116 of title 46, United States Code. 


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1 SEC. 418. TRANSPORTATION REQUIREMENTS FOR CERTAIN 

2 EXPORTS SPONSORED BY THE SECRETARY 

3 OF AGRICULTURE. 

4 Section 55314 of title 46, United States Code, is 

5 amended— 

6 (1) by inserting before subsection (b) the fol7 lowing: 

8 ‘‘(a) APPLICABILITY.—The requirements under sec9 tion 55305 of this title shall apply with respect to the ac10 tivities specified in subsection (b).’’; 

11 (2) in subsection (b)— 

12 (A) in paragraph (1), by inserting ‘‘titles I, 

13 II, or III of’’ after ‘‘carried out under’’; 

14 (B) in paragraph (4), by striking ‘‘agricul15 tural commodities or their products’’ and in16 serting ‘‘agricultural products’’; 

17 (C) in paragraph (5), by striking ‘‘agricul18 tural commodities or their products’’ and in19 serting ‘‘agricultural products’’; 

20 (D) in paragraph (6), by striking ‘‘agricul21 tural commodities or their products’’ and in22 serting ‘‘agricultural products’’; 

23 (E) in paragraph (7), by striking ‘‘agricul24 tural commodities’’ and inserting ‘‘agricultural 

25 products’’; 


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1 (F) by redesignating paragraphs (4), (5), 

2 (6), and (7) as paragraphs (6), (7), (8), and 

3 (9), respectively; and 

4 (G) by inserting after paragraph (3) the 

5 following: 

6 ‘‘(4) carried out under the Food for Progress 

7 Act of 1985 (7 U.S.C. 1736o); 

8 ‘‘(5) carried out under the McGovern-Dole 

9 International Food for Education and Child Nutri10 tion Program under section 3107 of the Farm Secu11 rity and Rural Investment Act of 2002 (7 U.S.C. 15 

12 1736o–1);’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(c) SUBMISSION TO CONGRESS.—The Secretary of 

15 Agriculture or the Administrator of the United States 

16 Agency for International Development, as applicable, 

17 shall, by October 15 of each year, submit to the appro18 priate committees of Congress (as defined in section 4 of 

19 the SHIPS for America Act of 2024)— 

20 ‘‘(1) a written notice of any waiver of the re21 quirements of this section issued during the pre22 ceding fiscal year; and 

23 ‘‘(2) the reasons for granting such waiver and 

24 how such waiver meets the requirements of this sec25 tion and section 55305(d). 


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1 ‘‘(d) AGRICULTURAL PRODUCT DEFINED.—In this 

2 section, the term ‘agricultural product’ means any food 

3 product, including an agricultural commodity (as such 

4 term is defined in section 402 of the Food for Peace Act 

5 (7 U.S.C. 1732)), specialty crop (as such term is defined 

6 in section 3 of the Specialty Crops Competitiveness Act 

7 of 2004 (7 U.S.C. 1621 note)), or processed food product, 

8 exported from the United States.’’. 

9 SEC. 419. CLARIFYING AMENDMENTS. 

10 (a) AGRICULTURAL COMMODITIES EMERGENCY AS11 SISTANCE CLARIFICATION.—Section 202(a) of the Food 

12 for Peace Act (7 U.S.C. 1722(a)) is amended by striking 

13 ‘‘Notwithstanding’’ and inserting ‘‘Subject to the require14 ments of sections 55305 and 55314 of title 46, United 

15 States Code, and notwithstanding’’. 

16 (b) ADMINISTRATIVE PROVISIONS CLARIFICATION.— 

17 Section 407(b)(2)(A) of the Food for Peace Act (7 U.S.C. 

18 1736a(b)(2)(A)) is amended by striking ‘‘Notwith19 standing’’ and inserting ‘‘Subject to the requirements of 

20 sections 55305 and 55314 of title 46, United States Code, 

21 and notwithstanding’’. 

22 (c) EMERGENCY FOOD SECURITY PROGRAM CLARI23 FICATION.—Section 491(c)(1) of the Foreign Assistance 

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1 ing ‘‘and the requirements of sections 55305 and 55314 

2 of title 46, United States Code’’ after ‘‘section 492’’. 

3 SEC. 420. ENERGIZING AMERICAN SHIPBUILDING. 

4 (a) NATIONAL POLICY ON STRATEGIC ENERGY

5 ASSET EXPORT TRANSPORTATION.— 

6 (1) REQUIREMENT FOR TRANSPORTATION OF

7 EXPORTS OF NATURAL GAS ON VESSELS DOCU8 MENTED UNDER LAWS OF THE UNITED STATES.— 

9 Section 3 of the Natural Gas Act (15 U.S.C. 717b) 

10 is amended by adding at the end the following: 

11 ‘‘(g) TRANSPORTATION OF EXPORTS OF NATURAL

12 GAS ON VESSELS DOCUMENTED UNDER LAWS OF THE

13 UNITED STATES.— 

14 ‘‘(1) CONDITION FOR APPROVAL.—Except as 

15 provided in paragraph (7), with respect to an appli16 cation to export natural gas under subsection (a), 

17 the Commission shall include in the order issued for 

18 that application the condition that the person trans19 port the natural gas on a vessel that meets the re20 quirements described in paragraph (3). 

21 ‘‘(2) PURPOSE.—The purpose of the require22 ment under paragraph (1) is to ensure that, of all 

23 natural gas exported by vessel in a calendar year, 

24 the following percentage is exported by a vessel that 

25 meets the requirements described in paragraph (3): 


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1 ‘‘(A) In each of the 7 calendar years fol2 lowing the calendar year in which this sub3 section is enacted, not less than 2 percent. 

4 ‘‘(B) In each of the 8th and 9th calendar 

5 years following the calendar year in which this 

6 subsection is enacted, not less than 3 percent. 

7 ‘‘(C) In each of the 10th and 11th cal8 endar years following the calendar year in 

9 which this subsection is enacted, not less than 

10 4 percent. 

11 ‘‘(D) In each of the 12th and 13th cal12 endar years following the calendar year in 

13 which this subsection is enacted, not less than 

14 6 percent. 

15 ‘‘(E) In each of the 14th and 15th cal16 endar years following the calendar year in 

17 which this subsection is enacted, not less than 

18 7 percent. 

19 ‘‘(F) In each of the 16th and 17th cal20 endar years following the calendar year in 

21 which this subsection is enacted, not less than 

22 9 percent. 

23 ‘‘(G) In each of the 18th and 19th cal24 endar years following the calendar year in 


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1 which this subsection is enacted, not less than 

2 11 percent. 

3 ‘‘(H) In each of the 20th and 21st cal4 endar years following the calendar year in 

5 which this subsection is enacted, not less than 

6 13 percent. 

7 ‘‘(I) In the 22nd calendar year after the 

8 calendar year in which this subsection is en9 acted and each calendar year thereafter, not 

10 less than 15 percent. 

11 ‘‘(3) REQUIREMENTS FOR VESSELS.—A vessel 

12 meets the requirements described in this para13 graph— 

14 ‘‘(A) with respect to each of the 5 calendar 

15 years following the calendar year in which this 

16 subsection is enacted— 

17 ‘‘(i) if— 

18 ‘‘(I) the vessel is documented 

19 under the laws of the United States; 

20 and 

21 ‘‘(II) with respect to any retrofit 

22 work necessary for the vessel to ex23 port natural gas— 


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1 ‘‘(aa) such work is done in a 

2 shipyard in the United States; 

3 and 

4 ‘‘(bb) any component of the 

5 vessel listed in paragraph (4) 

6 that is installed during the 

7 course of such work is manufac8 tured in the United States; or 

9 ‘‘(ii) if— 

10 ‘‘(I) the vessel is built in the 

11 United States; 

12 ‘‘(II) the vessel is documented 

13 under the laws of the United States; 

14 ‘‘(III) all major components of 

15 the hull or superstructure of the ves16 sel are manufactured (including all 

17 manufacturing processes from the ini18 tial melting stage through the applica19 tion of coatings for iron or steel prod20 ucts) in the United States; and 

21 ‘‘(IV) the components of the ves22 sel listed in paragraph (4) are manu23 factured in the United States; and 

24 ‘‘(B) with respect to the 6th calendar year 

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1 section is enacted, and each calendar year 

2 thereafter, if the vessel meets the requirements 

3 of subparagraph (A)(ii). 

4 ‘‘(4) COMPONENTS.—The components of a ves5 sel listed in this paragraph are the following: 

6 ‘‘(A) Air circuit breakers. 

7 ‘‘(B) Welded shipboard anchor and moor8 ing chain. 

9 ‘‘(C) Powered and non-powered valves in 

10 Federal Supply Classes 4810 and 4820 used in 

11 piping. 

12 ‘‘(D) Machine tools in the Federal Supply 

13 Classes for metal-working machinery numbered 

14 3405, 3408, 3410 through 3419, 3426, 3433, 

15 3438, 3441 through 3443, 3445, 3446, 3448, 

16 3449, 3460, and 3461. 

17 ‘‘(E) Auxiliary equipment for shipboard 

18 services, including pumps. 

19 ‘‘(F) Propulsion equipment, including en20 gines, propulsion motors, reduction gears, and 

21 propellers. 

22 ‘‘(G) Shipboard cranes. 

23 ‘‘(H) Spreaders for shipboard cranes. 

24 ‘‘(I) Rotating electrical equipment, includ25 ing electrical alternators and motors. 


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1 ‘‘(J) Compressors, pumps, and heat ex2 changers used in managing and re-liquefying 

3 boil-off gas from liquefied natural gas. 

4 ‘‘(5) WAIVER AUTHORITY.—The Commission 

5 may waive the requirement under clause (i)(II)(bb) 

6 or (ii)(IV), as applicable, of paragraph (3)(A) with 

7 respect to a component of a vessel if the Maritime 

8 Administrator determines that— 

9 ‘‘(A) application of the requirement 

10 would— 

11 ‘‘(i) result in an increase of 25 per12 cent or more in the cost of the component 

13 of the vessel; or 

14 ‘‘(ii) cause unreasonable delays to be 

15 incurred in building or retrofitting the ves16 sel; or 

17 ‘‘(B) such component is not manufactured 

18 in the United States in sufficient and reason19 ably available quantities of a satisfactory qual20 ity. 

21 ‘‘(6) OPPORTUNITIES FOR CREDENTIALED MER22 CHANT MARINERS.—Except as provided in para23 graph (7), the Commission shall include, in any 

24 order issued under subsection (a) that authorizes a 

25 person to export natural gas, a condition that the 


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1 person provide opportunities for individuals with a 

2 merchant mariner credential, as defined in section 

3 2101 of title 46, United States Code, to receive ex4 perience and training necessary to become 

5 credentialed in working on a vessel transporting nat6 ural gas. 

7 ‘‘(7) EXCEPTION.—The Commission may not 

8 include in any order issued under subsection (a) au9 thorizing a person to export natural gas to a nation 

10 with which there is in effect a free trade agreement 

11 requiring national treatment for trade in natural gas 

12 a condition described in paragraph (1), or a condi13 tion described in paragraph (6), if the United States 

14 Trade Representative certifies to the Commission, in 

15 writing, that such condition would violate obligations 

16 of the United States under such free trade agree17 ment. 

18 ‘‘(8) USE OF FEDERAL INFORMATION.—In car19 rying out paragraph (1), the Commission— 

20 ‘‘(A) shall use information made available 

21 by— 

22 ‘‘(i) the Energy Information Adminis23 tration; or 


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1 ‘‘(ii) any other Federal agency or enti2 ty the Commission determines appropriate; 

3 and 

4 ‘‘(B) may use information made available 

5 by a private entity only if applicable informa6 tion described in subparagraph (A) is not avail7 able.’’. 

8 (2) CONFORMING AMENDMENT.—Section 3(c) 

9 of the Natural Gas Act (15 U.S.C. 717b(c)) is 

10 amended by striking ‘‘or the exportation of natural 

11 gas’’ and inserting ‘‘or, subject to subsection (g), the 

12 exportation of natural gas’’. 

13 (b) CRUDE OIL.—Section 101 of title I of division 

14 O of the Consolidated Appropriations Act, 2016 (42 

15 U.S.C. 6212a) is amended— 

16 (1) in subsection (b), by striking ‘‘subsections 

17 (c) and (d)’’ and inserting ‘‘subsections (c), (d), and 

18 (f)’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(f) TRANSPORTATION OF EXPORTS OF CRUDE OIL

21 ON VESSELS DOCUMENTED UNDER LAWS OF THE

22 UNITED STATES.— 

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (6), as a condition to export crude oil, the 

25 President shall require that a person exporting crude 


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1 oil transport the crude oil on a vessel that meets the 

2 requirements described in paragraph (3). 

3 ‘‘(2) PURPOSE.—The purpose of the require4 ment under paragraph (1) is to ensure that, of all 

5 crude oil exported by vessel in a calendar year, the 

6 following percentage is exported by a vessel that 

7 meets the requirements described in paragraph (3): 

8 ‘‘(A) In each of the 7 calendar years fol9 lowing the calendar year in which this sub10 section is enacted, not less than 3 percent. 

11 ‘‘(B) In each of the 8th, 9th, and 10th cal12 endar years following the calendar year in 

13 which this subsection is enacted, not less than 

14 6 percent. 

15 ‘‘(C) In each of the 11th, 12th, and 13th 

16 calendar years following the calendar year in 

17 which this subsection is enacted, not less than 

18 8 percent. 

19 ‘‘(D) In the 14th calendar year following 

20 the calendar year in which this subsection is en21 acted and each calendar year thereafter, not 

22 less than 10 percent. 

23 ‘‘(3) REQUIREMENTS FOR VESSELS.—A vessel 

24 meets the requirements described in this para25 graph— 


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1 ‘‘(A) with respect to each of the 4 calendar 

2 years following the calendar year in which this 

3 subsection is enacted— 

4 ‘‘(i) if— 

5 ‘‘(I) the vessel is documented 

6 under the laws of the United States; 

7 and 

8 ‘‘(II) with respect to any retrofit 

9 work necessary for the vessel to ex10 port crude oil— 

11 ‘‘(aa) such work is done in a 

12 shipyard in the United States; 

13 and 

14 ‘‘(bb) any component of the 

15 vessel listed in paragraph (4) 

16 that is installed during the 

17 course of such work is manufac18 tured in the United States; or 

19 ‘‘(ii) if— 

20 ‘‘(I) the vessel is built in the 

21 United States; 

22 ‘‘(II) the vessel is documented 

23 under the laws of the United States; 

24 ‘‘(III) all major components of 

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1 sel are manufactured (including all 

2 manufacturing processes from the ini3 tial melting stage through the applica4 tion of coatings for iron or steel prod5 ucts) in the United States; and 

6 ‘‘(IV) the components of the ves7 sel listed in paragraph (4) are manu8 factured in the United States; and 

9 ‘‘(B) with respect to the 5th calendar year 

10 following the calendar year in which this sub11 section is enacted and each calendar year there12 after, if the vessel meets the requirements of 

13 subparagraph (A)(ii). 

14 ‘‘(4) COMPONENTS.—The components of a ves15 sel listed in this paragraph are the following: 

16 ‘‘(A) Air circuit breakers. 

17 ‘‘(B) Welded shipboard anchor and moor18 ing chain. 

19 ‘‘(C) Powered and non-powered valves in 

20 Federal Supply Classes 4810 and 4820 used in 

21 piping. 

22 ‘‘(D) Machine tools in the Federal Supply 

23 Classes for metal-working machinery numbered 

24 3405, 3408, 3410 through 3419, 3426, 3433, 


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1 3438, 3441 through 3443, 3445, 3446, 3448, 

2 3449, 3460, and 3461. 

3 ‘‘(E) Auxiliary equipment for shipboard 

4 services, including pumps. 

5 ‘‘(F) Propulsion equipment, including en6 gines, propulsion motors, reduction gears, and 

7 propellers. 

8 ‘‘(G) Shipboard cranes. 

9 ‘‘(H) Spreaders for shipboard cranes. 

10 ‘‘(I) Rotating electrical equipment, includ11 ing electrical alternators and motors. 

12 ‘‘(5) WAIVER AUTHORITY.—The President may 

13 waive the requirement under clause (i)(II)(bb) or 

14 clause (ii)(IV), as applicable, of paragraph (3)(A) 

15 with respect to a component of a vessel if the Mari16 time Administrator determines that— 

17 ‘‘(A) application of the requirement 

18 would— 

19 ‘‘(i) result in an increase of 25 per20 cent or more in the cost of the component 

21 of the vessel; or 

22 ‘‘(ii) cause unreasonable delays to be 

23 incurred in building or retrofitting the ves24 sel; or 


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1 ‘‘(B) such component is not manufactured 

2 in the United States in sufficient and reason3 ably available quantities of a satisfactory qual4 ity. 

5 ‘‘(6) EXCEPTION.—The President may not, 

6 under paragraph (1), condition the export of crude 

7 oil to a nation with which there is in effect a free 

8 trade agreement requiring national treatment for 

9 trade in crude oil if the United States Trade Rep10 resentative certifies to the President, in writing, that 

11 such condition would violate obligations of the 

12 United States under such free trade agreement. 

13 ‘‘(7) OPPORTUNITIES FOR CREDENTIALED MER14 CHANT MARINERS.—The Maritime Administrator 

15 shall ensure that each exporter of crude oil by vessel 

16 provides opportunities for individuals with a mer17 chant mariner credential, as defined in section 2101 

18 of title 46, United States Code, to receive experience 

19 and training necessary to become credentialed in 

20 working on such vessels. 

21 ‘‘(8) USE OF FEDERAL INFORMATION.—In car22 rying out paragraph (1), the President— 

23 ‘‘(A) shall use information made available 

24 by— 


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1 ‘‘(i) the Energy Information Adminis2 tration; or 

3 ‘‘(ii) any other Federal agency or enti4 ty the Commission determines appropriate; 

5 and 

6 ‘‘(B) may use information made available 

7 by a private entity only if applicable informa8 tion described in subparagraph (A) is not avail9 able.’’. 

10 (c) ENERGY INFORMATION ADMINISTRATION INFOR11 MATION.—The Secretary of Energy, acting through the 

12 Administrator of the Energy Information Administration 

13 (referred to in this section as the ‘‘Secretary’’), shall col14 lect, and make readily available to the public on the inter15 net website of the Energy Information Administration, in16 formation on exports by vessel of natural gas and crude 

17 oil, including— 

18 (1) forecasts for, and data on, those exports for 

19 the calendar year following the calendar year in 

20 which this Act is enacted and each calendar year 

21 thereafter; and 

22 (2) forecasts for those exports for multiyear pe23 riods after the date of enactment of this Act, as de24 termined appropriate by the Secretary. 


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1 SEC. 421. SHIP AMERICA OFFICE. 

2 (a) IN GENERAL.—Chapter 553 of title 46, United 

3 States Code, is amended by adding at the end the fol4 lowing: 

5 ‘‘Subchapter IV—Ship America Office 

6 ‘‘§ 55341. Establishment of Ship America Office 

7 ‘‘(a) ESTABLISHMENT.—The Maritime Adminis8 trator shall establish within the Maritime Administration 

9 an office to be known as the ‘Ship America Office’. The 

10 Maritime Administrator shall appoint the head of the Ship 

11 America Office (in this section referred to as the ‘Ship 

12 America Associate Administrator’). 

13 ‘‘(b) DUTIES.—The Ship America Associate Adminis14 trator shall have the following duties: 

15 ‘‘(1) Providing assistance to private sector enti16 ties, Federal financial assistance recipients, Federal 

17 agencies, Federal contractors, and owners and oper18 ators of oceangoing vessels of the United States to 

19 facilitate the movement of commercial and govern20 ment cargo on vessels of the United States in inter21 national commerce. 

22 ‘‘(2) Maximizing compliance across Federal 

23 agencies with this chapter, section 2631 of title 10, 

24 United States Code, and any other cargo preference 

25 law of the United States. 


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1 ‘‘(3) Providing training and assistance to Fed2 eral employees, in all Federal agencies responsible 

3 for shipping preference cargo, on the legal obliga4 tions under this chapter, section 2631 of title 10, 

5 United States Code, and any other cargo preference 

6 law of the United States. 

7 ‘‘(4) Supporting the efforts of the executive 

8 branch to develop and sustain a fleet of vessels of 

9 the United States and maritime industrial base to 

10 meet the sealift needs of Federal agencies. 

11 ‘‘(5) Where practicable, making accessible, and 

12 regularly updating, the publicly available contact in13 formation for oceangoing vessels of the United 

14 States for the purposes of moving international com15 merce. 

16 ‘‘(6) Publishing, and regularly updating, cen17 tralized information on the commercial benefits 

18 available to private sector entities for moving com19 mercial cargo on oceangoing vessels of the United 

20 States. 

21 ‘‘(7) Preparing the reports under subsection 

22 (c). 

23 ‘‘(c) REPORTS REQUIRED.—Not later than 1 year 

24 after the date of enactment of this section, and biennially 

25 thereafter, the Maritime Administrator, acting through 


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1 the Ship America Associate Administrator, shall report to 

2 the appropriate congressional committees (as defined in 

3 section 4 of the SHIPS for America Act of 2024) and 

4 the Maritime Security Board on— 

5 ‘‘(1) the opportunities and challenges faced by 

6 commercial entities to move cargo on oceangoing 

7 vessels of the United States; and 

8 ‘‘(2) recommendations to increase international 

9 commerce moving on vessels of the United States.’’. 

10 (b) CONFORMING AMENDMENTS.—The table of sec11 tions for chapter 553 of title 46, United States Code, is 

12 amended by adding at the end the following: 

‘‘SUBCHAPTER IV—SHIP AMERICA OFFICE

‘‘55341. Establishment of Ship America Office.’’. 

13 Subtitle C—Regulatory Reform 

14 SEC. 431. ALTERNATE STANDARDS. 

15 (a) IN GENERAL.—Chapter 33 of title 46, United 

16 States Code, is amended— 

17 (1) by redesignating sections 3317 and 3318 as 

18 sections 3318 and 3319, respectively; and 

19 (2) by inserting after section 3316 the fol20 lowing: 

21 ‘‘§ 3317. Alternate standards 

22 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

23 date of enactment of this section, the Secretary, in con24 sultation with the Maritime Administrator, shall establish 


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1 alternate standards to allow self-propelled vessels pro2 viding oceangoing transportation that are not documented 

3 under chapter 121 of this title to receive a certificate of 

4 inspection if the vessel will become a documented vessel. 

5 ‘‘(b) REQUIREMENTS.—Under the program estab6 lished under subsection (a), a self-propelled vessel used to 

7 provide oceangoing transportation that is not documented 

8 under chapter 121 of this title shall be eligible for a certifi9 cate of inspection if the Secretary determines that— 

10 ‘‘(1) the owner of the vessel has agreed to apply 

11 to have the vessel documented under chapter 121 

12 upon receiving the certificate; 

13 ‘‘(2) at the time of the receipt of such certifi14 cate, the vessel is eligible for documentation under 

15 such chapter; 

16 ‘‘(3) the vessel is classed by and designed in ac17 cordance with the rules of a classification society ac18 cepted by the Secretary; 

19 ‘‘(4) the vessel complies with applicable inter20 national agreements and associated guidelines, as 

21 determined by the country in which the vessel was 

22 documented immediately before becoming docu23 mented under chapter 121; 

24 ‘‘(5) the vessel has been assessed for cybersecu25 rity and surveillance risks; and 


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1 ‘‘(6) the country in which the vessel was docu2 mented immediately before becoming documented 

3 under chapter 121 has not been identified by the 

4 Secretary as inadequately enforcing international 

5 vessel regulations as to that vessel. 

6 ‘‘(c) CONTINUED ELIGIBILITY FOR CERTIFICATE.— 

7 This section does not apply to a vessel after any date on 

8 which the vessel fails to comply with the applicable inter9 national agreements and associated guidelines referred to 

10 in subsection (b)(4). 

11 ‘‘(d) RELIANCE ON CLASSIFICATION SOCIETY.— 

12 ‘‘(1) IN GENERAL.—The Secretary may rely on 

13 a certification from the American Bureau of Ship14 ping or, subject to paragraph (2), another classifica15 tion society accepted by the Secretary to establish 

16 that a vessel is in compliance with the requirements 

17 of paragraphs (3), (4), and (6) of subsection (b) and 

18 of subsection (c). 

19 ‘‘(2) FOREIGN CLASSIFICATION SOCIETY.—The 

20 Secretary may accept certification from a foreign 

21 classification society under paragraph (1) only— 

22 ‘‘(A) to the extent that the government of 

23 the foreign country in which the society is 

24 headquartered provides access on a reciprocal 

25 basis to the American Bureau of Shipping; and 


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1 ‘‘(B) if the foreign classification society 

2 has offices and maintains records in the United 

3 States. 

4 ‘‘(e) RULEMAKING PROCEDURE.—The Secretary may 

5 initiate a rulemaking procedure to implement this stand6 ard. 

7 ‘‘(f) SAVINGS PROVISION.—Nothing in this section 

8 shall be interpreted to affect requirements related to mer9 chant seamen credentials under part E of subtitle II of 

10 this title or the requirements related to manning of vessels 

11 under part F of such subtitle.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 for chapter 33 of title 46, United States Code, is amended 

14 by striking the items relating to sections 3317 and 3318 

15 and inserting the following: 

‘‘3317. Alternate standards. 

‘‘3318. Fees. 

‘‘3319. Penalties.’’. 

16 SEC. 432. RULEMAKING COMMITTEE ON COMMERCIAL 

17 MARITIME REGULATIONS AND STANDARDS. 

18 (a) DEFINITIONS.—In this section: 

19 (1) COVERED REGULATION.—The term ‘‘cov20 ered regulation’’— 

21 (A) means a commercial regulation or 

22 standard issued by the Coast Guard relating to 

23 the operation of vessels in foreign commerce, in24 cluding— 


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1 (i) vessel design and engineering 

2 standards; 

3 (ii) merchant mariner training and 

4 credentialing; or 

5 (iii) vessel operating and environ6 mental standards; and 

7 (B) does not include any commercial regu8 lation or standard issued by the Coast Guard 

9 that exclusively applies to vessels in domestic 

10 commerce. 

11 (2) RULEMAKING COMMITTEE.—The term 

12 ‘‘rulemaking committee’’ means the committee es13 tablished under subsection (b). 

14 (3) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of the department in which the Coast 

16 Guard is operating. 

17 (b) ESTABLISHMENT OF RULEMAKING COM18 MITTEE.—There is established, in the department in 

19 which the Coast Guard is operating, a rulemaking com20 mittee on commercial maritime regulations and standards 

21 to— 

22 (1) review, and develop findings and rec23 ommendations regarding, the covered regulations; 

24 and 


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1 (2) provide to the Secretary a report on oppor2 tunities to review and update regulations governing 

3 vessel design and engineering, vessel and facility op4 eration and environmental standards, and merchant 

5 mariner credentialing, in order to— 

6 (A) revitalize the merchant marine; and 

7 (B) better align, and limit redundancies 

8 between, the regulatory standards of the Coast 

9 Guard and the International Maritime Organi10 zation and international treaty requirements. 

11 (c) MEMBERS.— 

12 (1) COMPOSITION OF RULEMAKING COM13 MITTEE.—The Secretary shall appoint the following 

14 as members of the rulemaking committee: 

15 (A) Each of the following Federal officers 

16 or employees, or their designees: 

17 (i) The Maritime Security Advisor. 

18 (ii) The Maritime Administrator. 

19 (iii) The Commandant of the Coast 

20 Guard. 

21 (iv) The Secretary of Commerce. 

22 (v) The Administrator of the Environ23 mental Protection Agency. 

24 (vi) The Secretary of the Navy. 


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1 (vii) The Chair of the Federal Mari2 time Commission. 

3 (viii) The chief United States delegate 

4 to the International Maritime Organiza5 tion. 

6 (B) Representatives from recognized classi7 fication societies, including the American Bu8 reau of Shipping. 

9 (C) Representatives of industry, includ10 ing— 

11 (i) owners and operators of vessels in 

12 domestic and foreign commerce of the 

13 United States; 

14 (ii) shipbuilders; and 

15 (iii) other representatives of industry 

16 the Secretary determines appropriate. 

17 (D) Individuals with a merchant mariner 

18 credential, as defined in section 2101 of title 

19 46, United States Code. 

20 (E) Representatives of maritime labor or21 ganizations. 

22 (F) Experts in maritime safety and regu23 latory matters. 

24 (G) Other stakeholders the Secretary de25 termines appropriate. 


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1 (2) PERIOD OF APPOINTMENT; VACANCIES.— 

2 (A) IN GENERAL.—A member of the rule3 making committee shall be appointed for the 

4 life of the rulemaking committee. 

5 (B) VACANCIES.—A vacancy in the rule6 making committee— 

7 (i) shall not affect the powers of the 

8 rulemaking committee; and 

9 (ii) shall be filled in the same manner 

10 as the original appointment. 

11 (3) CHAIRPERSON AND VICE CHAIRPERSON.— 

12 The Secretary shall select a Chairperson and Vice 

13 Chairperson from among the members of the rule14 making committee. 

15 (d) MEETINGS.— 

16 (1) INITIAL MEETING.—Not later than 180 

17 days after the date of enactment of this Act, the 

18 Secretary shall convene the rulemaking committee 

19 for the first meeting of the rulemaking committee. 

20 (2) QUORUM.—A majority of the members of 

21 the rulemaking committee shall constitute a quorum, 

22 but a lesser number of members may hold hearings. 

23 (e) DUTIES OF COMMITTEE.— 

24 (1) CONSIDERATIONS.—The rulemaking com25 mittee shall consider each of the following: 


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1 (A) How the covered regulations interact 

2 with and compare to the treaty requirements 

3 and regulations established by the International 

4 Maritime Organization, including comparisons 

5 and interactions on the basis of— 

6 (i) safety; 

7 (ii) cost; 

8 (iii) enforceability and compliance; 

9 and 

10 (iv) international competitiveness. 

11 (B) The benefits and challenges vessel 

12 owners and operators and United States mari13 ners encounter when complying with both regu14 lations of the International Maritime Organiza15 tion and the covered regulations. 

16 (C) The role that covered regulations play 

17 in enhancing the size and strength of the mer18 chant marine and the domestic and inter19 national fleet of the United States. 

20 (D) Recommended changes to covered reg21 ulations, and regulatory frameworks, to better 

22 promote alignment with international standards 

23 and the standards of countries that are allies 

24 and partners, with a focus on— 


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1 (i) increasing opportunities for quali2 fied mariners that enter the merchant ma3 rine and reducing the barriers that lead 

4 qualified mariners to leave the merchant 

5 marine; 

6 (ii) increasing the number of vessels 

7 documented under the laws of the United 

8 States that are operating in domestic and 

9 foreign commerce; 

10 (iii) enhancing United States leader11 ship within the International Maritime Or12 ganization and other international treaty 

13 organizations with a focus on the maritime 

14 industry; 

15 (iv) streamlining regulatory processes 

16 and processing timelines to minimize dupli17 cative reviews and eliminate preventable 

18 delays; and 

19 (v) maintaining and enhancing the 

20 safety and security of the merchant ma21 rine. 

22 (E) Recommended changes to covered reg23 ulations and regulatory frameworks that govern 

24 mariner education training requirements, which 

25 may include— 


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1 (i) expanding the pool of qualified in2 structors for mariner training programs; 

3 (ii) streamlining requirements related 

4 to training facility size and design to im5 prove operational efficiencies at mariner 

6 training facilities, including requirements 

7 related to classroom size and design; 

8 (iii) standardizing and streamlining 

9 training course and curriculum approval 

10 and evaluation to provide more certainty to 

11 mariner training programs; and 

12 (iv) enhancing opportunities for mar13 iner training programs to flexibly integrate 

14 sea-time into course instruction, consistent 

15 with treaty requirements and regulations 

16 established by the International Maritime 

17 Organization. 

18 (F) Any other matters the Secretary deter19 mines appropriate. 

20 (2) REPORT.—Not later than 18 months after 

21 the date of enactment of this Act, the rulemaking 

22 committee shall submit to the Secretary a report 

23 that includes the findings and recommended changes 

24 to covered regulations of the rulemaking committee, 

25 as required under paragraph (1). 


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1 (f) POWERS OF RULEMAKING COMMITTEE.— 

2 (1) HEARINGS.—The rulemaking committee 

3 may hold such hearings, sit and act at such times 

4 and places, take such testimony, and receive such 

5 evidence as the rulemaking committee considers ad6 visable to carry out this section. 

7 (2) INFORMATION FROM FEDERAL AGENCIES.— 

8 (A) IN GENERAL.—The rulemaking com9 mittee may secure directly from a Federal de10 partment or agency such information as the 

11 rulemaking committee considers necessary to 

12 carry out this section. 

13 (B) FURNISHING INFORMATION.—On re14 quest of the Chairperson of the rulemaking 

15 committee, the head of the department or agen16 cy shall furnish the information to the rule17 making committee. 

18 (g) RULEMAKING COMMITTEE PERSONNEL MAT19 TERS.— 

20 (1) NO COMPENSATION.—A member of the 

21 rulemaking committee shall not be compensated for 

22 service on the rulemaking committee. 

23 (2) TRAVEL EXPENSES.—A member of the rule24 making committee shall be allowed travel expenses, 

25 including per diem in lieu of subsistence, at rates 


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1 authorized for employees of agencies under sub2 chapter I of chapter 57 of title 5, United States 

3 Code, while away from their homes or regular places 

4 of business in the performance of services for the 

5 rulemaking committee. 

6 (h) ADMINISTRATION.—Except as specified otherwise 

7 in this section, the rulemaking committee shall be treated 

8 as a committee established under chapter 151 of title 46, 

9 United States Code, for purposes of section 15109 of such 

10 title. 

11 (i) TERMINATION.—The rulemaking committee shall 

12 terminate on the earlier of— 

13 (1) the date that is 90 days after the date on 

14 which the rulemaking committee submits the report 

15 under subsection (e)(2); or 

16 (2) the date that is 7 years after the date on 

17 which the rulemaking committee is established. 

18 (j) DUTIES OF THE SECRETARY.—The Secretary 

19 shall— 

20 (1) not later than 30 days after receiving the 

21 rulemaking committee’s report under subsection 

22 (e)(2), submit to the appropriate committees of Con23 gress, and make publicly available, a copy of such 

24 report and the Secretary’s views on the rec25 ommendations of the committee; and 


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1 (2) not later than 90 days after submitting the 

2 report under paragraph (1)— 

3 (A) initiate a rulemaking activity and 

4 make such policy and guidance updates deter5 mined necessary by the Secretary to address the 

6 consensus recommendations reached by the 

7 rulemaking committee under subsection (e); 

8 (B) submit a report to the appropriate 

9 committees of Congress identifying the rec10 ommendations of the rulemaking committee 

11 that require legislative changes; and 

12 (C) submit a report to the Secretary of 

13 State identifying recommendations of the rule14 making committee that require changes to trea15 ty requirements and regulations established by 

16 the International Maritime Organization, in17 cluding recommendations that should inform 

18 the policy of the United States as a member of 

19 the International Maritime Organization. 

20 SEC. 433. AMENDMENTS TO SHIPOWNERS’ LIMITATION OF 

21 LIABILITY ACT OF 1851. 

22 (a) IN GENERAL.—Section 30523 of title 46, United 

23 States Code, is amended— 

24 (1) by striking subsection (a) and inserting the 

25 following: 


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1 ‘‘(a) LIMIT OF OWNER LIABILITY.— 

2 ‘‘(1) IN GENERAL.—Except as provided in sec3 tion 30524 of this title, the liability of— 

4 ‘‘(A) the owner of a vessel of the United 

5 States for any claim, debt, or liability described 

6 in subsection (b) shall not exceed the value of 

7 the vessel and pending freight; and 

8 ‘‘(B) the owner of a foreign vessel for any 

9 claim, debt, or liability described in subsection 

10 (b) shall not exceed the amount that is 10 times 

11 the value of the vessel and pending freight. 

12 ‘‘(2) MULTIPLE OWNERS.—If a vessel has more 

13 than one owner, the proportionate share of the liabil14 ity under paragraph (1) of any one such owner shall 

15 not exceed that owner’s proportionate interest in the 

16 vessel and pending freight.’’; and 

17 (2) by striking subsection (c) and inserting the 

18 following: 

19 ‘‘(c) CLAIMS NOT SUBJECT TO LIMITATION.—Sub20 section (a) does not apply to— 

21 ‘‘(1) a claim for wages; or 

22 ‘‘(2) with respect to the liability of an owner of 

23 a foreign vessel, a claim, debt, or liability arising 

24 from personal injury or wrongful death of a person 

25 who was not a crewmember or passenger of the forVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 eign vessel at the time the injury (including fatal in2 jury, if applicable) occurred.’’. 

3 (b) AMENDMENT TO CESSATION OF CERTAIN AC4 TIONS.—Section 30529(c) of title 46, United States Code, 

5 is amended by striking ‘‘the matter in question’’ and in6 serting ‘‘a matter subject to limitation under section 

7 30523’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 subsections (a) and (b) shall apply to any liability subject 

10 to section 30523(a) of title 46, United States Code, that 

11 arises on or after March 25, 2024. 

12 TITLE V—SHIPBUILDING 

13 Subtitle A—Shipbuilding Financial 

14 Incentives 

15 SEC. 501. SHIPBUILDING FINANCIAL INCENTIVES. 

16 (a) IN GENERAL.—Part C of subtitle V of title 46, 

17 United States Code, is amended by inserting after chapter 

18 537 the following: 

19 ‘‘CHAPTER 538—SHIPBUILDING 

20 FINANCIAL INCENTIVES 

21 ‘‘§ 53801. Shipbuilding financial incentives 

22 ‘‘(a) ESTABLISHMENT.—The Maritime Adminis23 trator shall establish a program that, in accordance with 

24 the requirements of this section, provides Federal financial 

25 assistance to covered entities to— 


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1 ‘‘(1) aid in the construction of a vessel that 

2 shall be documented under the laws of the United 

3 States; or 

4 ‘‘(2) incentivize a qualified shipyard investment. 

5 ‘‘(b) DEFINITIONS.—In this section: 

6 ‘‘(1) APPROPRIATE COMMITTEES OF CON7 GRESS.—The term ‘appropriate committees of Con8 gress’ means the Committee on Commerce, Science, 

9 and Transportation and the Committee on Appro10 priations of the Senate and the Committee on 

11 Armed Services and the Committee on Appropria12 tions of the House of Representatives. 

13 ‘‘(2) COVERED ENTITY.—The term ‘covered en14 tity’ means— 

15 ‘‘(A) any proposed vessel purchaser who is 

16 a citizen of the United States; or 

17 ‘‘(B) any shipyard of the United States 

18 with the ability, experience, financial resources, 

19 and other qualifications to construct or repair a 

20 military vessel or a vessel to be used in the for21 eign commerce of the United States. 

22 ‘‘(3) FOREIGN COMMERCE.—The term ‘foreign 

23 commerce’ means— 

24 ‘‘(A) commerce or trade between the 

25 United States, its territories or possessions, or 


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1 the District of Columbia, and a foreign country; 

2 and 

3 ‘‘(B) commerce or trade between foreign 

4 countries. 

5 ‘‘(4) FOREIGN COUNTRY OF CONCERN; FOREIGN

6 ENTITY OF CONCERN.—The terms ‘foreign country 

7 of concern’ and ‘foreign entity of concern’ have the 

8 meanings given such terms in section 4 of the 

9 SHIPS for America Act of 2024. 

10 ‘‘(5) QUALIFIED SHIPYARD INVESTMENT.—The 

11 term ‘qualified shipyard investment’ means an in12 vestment to construct, modernize, or expand— 

13 ‘‘(A) a shipyard of the United States that 

14 constructs or repairs civilian or military vessels; 

15 or 

16 ‘‘(B) a manufacturing facility— 

17 ‘‘(i) that is— 

18 ‘‘(I) a component supplier; 

19 ‘‘(II) a subcomponent supplier; 

20 ‘‘(III) a manufacturing equip21 ment supplier; or 

22 ‘‘(IV) a steel plate manufacturing 

23 facility; 

24 ‘‘(ii) that is based in the United 

25 States; and 


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1 ‘‘(iii)(I) at which at least 50 percent 

2 of the products produced will be sold to 

3 shipyards of the United States or used to 

4 construct vessels of the United States; or 

5 ‘‘(II) at which the investment will 

6 more than double the facility’s capacity to 

7 produce products to be sold to shipyards of 

8 the United Sates or used to construct ves9 sels of the United States, as determined by 

10 the Administrator. 

11 ‘‘(c) PROCEDURE.— 

12 ‘‘(1) APPLICATION.—A covered entity desiring 

13 financial assistance under this section shall submit 

14 an application to the Maritime Administrator. 

15 ‘‘(2) ELIGIBILITY.—In order for a covered enti16 ty to qualify for financial assistance under this sec17 tion, the covered entity shall— 

18 ‘‘(A) for financial assistance related to con19 struction of a vessel of the United States as de20 scribed in subsection (a)(1)— 

21 ‘‘(i) enter into an agreement with the 

22 Maritime Administrator establishing that 

23 the vessel that is constructed with Federal 

24 financial assistance shall be, for a period of 


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1 not less than 10 years, documented under 

2 the laws of the United States; and 

3 ‘‘(ii) agree to carry out all construc4 tion in a shipyard of the United States as 

5 the result of competitive bidding, after due 

6 advertisement, with the right reserved by 

7 the Administrator to disapprove any or all 

8 bids; 

9 ‘‘(B) for financial assistance related to 

10 qualified shipyard investments as described in 

11 subsection (a)(2), use the financial assistance 

12 award amounts to incentivize investments in— 

13 ‘‘(i) facilities or equipment related to 

14 shipbuilding or ship repair; or 

15 ‘‘(ii) maritime component suppliers, 

16 subcomponent suppliers, and steel plate 

17 manufacturing facilities with over 50 per18 cent maritime use in each such investment; 

19 and 

20 ‘‘(C) make commitments to worker and 

21 community investment, including through— 

22 ‘‘(i) programs to expand employment 

23 opportunity for economically disadvantaged 

24 individuals; and 


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1 ‘‘(ii) securing commitments from re2 gional educational and training entities 

3 and institutions of higher education to pro4 vide workforce training, including pro5 gramming for training and job placement 

6 of economically disadvantaged individuals. 

7 ‘‘(3) REVIEW OF APPLICATIONS.— 

8 ‘‘(A) CONSIDERATIONS FOR REVIEW.— 

9 With respect to the review by the Maritime Ad10 ministrator of an application submitted— 

11 ‘‘(i) the Maritime Administrator may 

12 not approve an application for construction 

13 of a vessel as described in subsection 

14 (a)(1) unless the Administrator— 

15 ‘‘(I) determines that a vessel 

16 funded through the program— 

17 ‘‘(aa) will aid in the pro18 motion and development of for19 eign commerce; and 

20 ‘‘(bb) will be suitable for use 

21 by the United States for national 

22 defense or military purposes in 

23 time of war or national emer24 gency; 


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1 ‘‘(II) confirms that the vessel 

2 purchaser that received funding under 

3 this section possesses the ability, expe4 rience, financial resources, and other 

5 qualifications necessary for the oper6 ation and maintenance of the pro7 posed new vessel; 

8 ‘‘(III) confirms that any shipyard 

9 selected to construct a vessel under 

10 this section possesses the ability, expe11 rience, financial resources, equipment, 

12 and other qualifications necessary to 

13 properly to construct the proposed 

14 vessel; 

15 ‘‘(IV) confirms that any newly 

16 constructed vessel has dedicated space 

17 for the training of cadets of the 

18 United States Merchant Marine Acad19 emy (consistent with the requirements 

20 of section 51307(b)), State maritime 

21 academies (consistent with the re22 quirements of section 51507), or other 

23 workforce training programs identified 

24 by the Administrator; and 


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1 ‘‘(V) has notified the appropriate 

2 committees of Congress not later than 

3 15 days before making any commit4 ment to provide Federal financial as5 sistance to any covered entity; 

6 ‘‘(ii) the Maritime Administrator may 

7 not approve an application to incentivize 

8 qualified shipyard investments as described 

9 in subsection (a)(2) unless the Adminis10 trator— 

11 ‘‘(I) confirms that the covered 

12 entity has received an incentive of13 fered by a governmental entity to a 

14 covered entity for the purposes of sup15 porting a qualified shipyard invest16 ment within that jurisdiction; 

17 ‘‘(II) ensures that the covered en18 tity has an executable plan to sustain 

19 the facility without additional Federal 

20 financial assistance under this sub21 section for the facility; 

22 ‘‘(III) determines that the project 

23 to which the application relates is in 

24 the economic and national security in25 terests of the United States; and 


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1 ‘‘(IV) receives detailed informa2 tion on— 

3 ‘‘(aa) the customers, or cat4 egories of customers, which the 

5 covered entity plans to serve; 

6 ‘‘(bb) the type of expendi7 tures which the covered entity 

8 plans to make; and 

9 ‘‘(cc) the workforce positions 

10 that the covered entity plans to 

11 employ, including any required 

12 recruitment, training, and hiring; 

13 and 

14 ‘‘(iii) the Maritime Administrator may 

15 consider— 

16 ‘‘(I) whether the covered entity 

17 has previously received financial as18 sistance under this section; 

19 ‘‘(II) the price for the construc20 tion or repair of a vessel that has 

21 been negotiated between a shipyard 

22 and proposed vessel purchaser, and 

23 whether the negotiated price is fair 

24 and reasonable; 


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1 ‘‘(III) whether the covered entity 

2 commits to use equipment, materials, 

3 and supplies that are produced in the 

4 United States, and utilize, to the max5 imum extent practicable, subcontrac6 tors and suppliers that are based in 

7 the United States; and 

8 ‘‘(IV) whether the covered entity 

9 commits to utilizing new or emerging 

10 technologies. 

11 ‘‘(B) RECORDS.—The Maritime Adminis12 trator may request records and information 

13 from the applicant to review the status of a cov14 ered entity. The applicant shall provide the 

15 records and information requested by the Ad16 ministrator. 

17 ‘‘(C) PRIORITY.—In providing Federal fi18 nancial assistance to covered entities under this 

19 section, the Maritime Administrator may— 

20 ‘‘(i) for an application for construc21 tion of a vessel as described in subsection 

22 (a)(1), give priority to applicants that— 

23 ‘‘(I) propose the construction of 

24 vessels of higher transport capability 

25 and productivity; 


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1 ‘‘(II) commit to have modifica2 tions done in the United States to a 

3 vessel constructed with such financial 

4 assistance; or 

5 ‘‘(III) propose the construction 

6 or modification of a vessel to meet the 

7 national security needs of the United 

8 States; and 

9 ‘‘(ii) for an application to incentivize a 

10 qualified shipyard investment as described 

11 in subsection (a)(2), give priority to appli12 cants that— 

13 ‘‘(I) propose to expand produc14 tion capacity to enable more military 

15 or commercial vessels to be con16 structed or repaired in the United 

17 States; 

18 ‘‘(II) commit to using new or 

19 emerging technologies or vessel design 

20 processes that increase production 

21 times or lower production costs; or 

22 ‘‘(III) have experience making 

23 qualified shipyard investments or op24 erating shipyards for commercial or 

25 military oceangoing vessels. 


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1 ‘‘(4) NATIONAL DEFENSE FEATURES.— 

2 ‘‘(A) IN GENERAL.—Upon receiving an ap3 plication for the construction of a vessel under 

4 this section, the Maritime Administrator shall 

5 submit to the Secretary of the Navy the plans 

6 and specifications for the proposed vessel for re7 view. 

8 ‘‘(B) RECOMMENDATIONS.—Not later than 

9 30 days after the date of receiving the plans 

10 and specifications for a vessel as provided for 

11 under subparagraph (A), the Secretary of the 

12 Navy may make recommendations to the Mari13 time Administrator for the design of the vessel, 

14 which would enable the economical and speedy 

15 conversion of the vessel into a vessel suitable 

16 for use of the United States Government in 

17 times of war or national emergency. 

18 ‘‘(C) REQUIREMENT TO IMPLEMENT REC19 OMMENDATIONS.—If the Maritime Adminis20 trator agrees with such recommendations, the 

21 Maritime Administrator may require the cov22 ered entity to carry out such recommendations 

23 as a condition of receiving Federal financial as24 sistance under this section with respect to that 

25 vessel. 


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1 ‘‘(5) RELATIONSHIP TO OTHER FINANCIAL AS2 SISTANCE PROGRAMS.—A covered entity may not re3 ceive financial assistance under this section for a 

4 vessel which is enrolled in the Strategic Commercial 

5 Fleet Program. 

6 ‘‘(d) AWARD AMOUNTS.— 

7 ‘‘(1) CONSTRUCTION OF A VESSEL OF THE

8 UNITED STATES.—For financial assistance related to 

9 construction of a vessel of the United States, as de10 scribed in subsection (a)(1), the Maritime Adminis11 trator shall determine the appropriate amount and 

12 funding for each type of financial assistance award 

13 made under this section based on the difference in 

14 the cost of constructing the proposed vessel within 

15 the United States over the fair and reasonable esti16 mate of cost of the construction of that type of ves17 sel if it were constructed under similar plans and 

18 specifications (excluding national defense features as 

19 described in subsection (c)(4)) in a foreign ship20 building center that is deemed by the Administrator 

21 to furnish a fair and representative example for the 

22 determination of the estimated foreign cost of con23 struction of vessels of the type proposed to be con24 structed. 


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1 ‘‘(2) QUALIFIED SHIPYARD INVESTMENTS.— 

2 For financial assistance provided to incentivize 

3 qualified shipyard investments as described in sub4 section (a)(2), the Maritime Administrator shall de5 termine the appropriate amount for each financial 

6 assistance award made to a covered entity to maxi7 mize private sector investments and to expand ship8 yard and ship building capacity of the United 

9 States. 

10 ‘‘(3) USE OF FUNDS.—A covered entity that re11 ceives a financial assistance award under this section 

12 may only use the financial assistance award amounts 

13 to— 

14 ‘‘(A) finance the construction of a vessel to 

15 be built in the United States and documented 

16 under the laws of the United States; 

17 ‘‘(B) support site development, construc18 tion, and modernization for qualified shipyard 

19 investments; 

20 ‘‘(C) pay reasonable costs related to the 

21 operating expenses for a qualified shipyard in22 vestment, including specialized workforce, es23 sential materials, and complex equipment main24 tenance, as determined by the Administrator; or 


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1 ‘‘(D) support workforce development for a 

2 shipyard of the United States. 

3 ‘‘(e) APPLICATIONS FOR RECONSTRUCTION, CONDI4 TIONING, OR REPOWERING.—The Maritime Administrator 

5 may, if determined to be in the national and economic se6 curity interests of the United States and consistent with 

7 the requirements of this section, consider an application 

8 as described in subsection (a)(1), and award financial as9 sistance under this section, for the reconstruction, recondi10 tioning, or repowering of an existing vessel in a shipyard 

11 of the United States. 

12 ‘‘(f) PILOT PROGRAM FOR VESSELS IN DOMESTIC

13 COMMERCE.— 

14 ‘‘(1) IN GENERAL.—The Maritime Adminis15 trator may, if determined to be in the national and 

16 economic security interests of the United States and 

17 consistent with all other requirements of this section 

18 (except the requirement under subsection 

19 (c)(3)(A)(i)(I)(aa)), establish a pilot program to con20 sider an application as described in subsection 

21 (a)(1), and award financial assistance under this 

22 section for the construction of a vessel for use in 

23 service other than the foreign commerce. 

24 ‘‘(2) ELIGIBLE VESSELS.—In addition to all 

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1 quirement under subsection (c)(3)(A)(i)(I)(aa)), a 

2 vessel qualifying for funding through the pilot pro3 gram under this subsection shall only be eligible if 

4 the Administrator certifies that the vessel of the 

5 United States that will be constructed— 

6 ‘‘(A) will operate in an emerging industry 

7 or a new trade lane and will not compete with 

8 existing vessels of the United States; or 

9 ‘‘(B)(i) will replace an existing vessel of 

10 the United States that is or will be acquired by 

11 the Administrator to be placed in the National 

12 Defense Reserve Fleet, pursuant to section 

13 57101; and 

14 ‘‘(ii) will operate for not longer than 21 

15 years and upon disposition will be placed in the 

16 National Defense Reserve Fleet, pursuant to 

17 section 57101. 

18 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

19 this subsection shall be construed to alter the re20 quirements under section 55102. 

21 ‘‘(g) CLAWBACK.— 

22 ‘‘(1) TARGET DATES.—For all awards to cov23 ered entities under this section, the Administrator 

24 shall, before the award is made, determine target 


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1 dates by which the vessel’s construction or a quali2 fied shipyard investment shall be completed. 

3 ‘‘(2) PROGRESSIVE RECOVERY FOR DELAYS.— 

4 Subject to paragraph (3), if a covered entity does 

5 not meet such target dates, the Administrator shall 

6 progressively recover up to the full amount of an 

7 award provided to a covered entity under this sec8 tion. 

9 ‘‘(3) WAIVER.—In the case of delays that do 

10 not meet such target dates, the Administrator may 

11 waive elements of the progressive recovery described 

12 in paragraph (2) that is incorporated in each award 

13 after— 

14 ‘‘(A) making a formal determination that 

15 circumstances beyond the ability of the covered 

16 entity to foresee or control are responsible for 

17 delays; and 

18 ‘‘(B) submitting congressional notification. 

19 ‘‘(4) CONGRESSIONAL NOTIFICATION.—The Ad20 ministrator shall notify the appropriate committees 

21 of Congress— 

22 ‘‘(A) of the target dates described in para23 graph (1) for each award; and 


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1 ‘‘(B) of any waivers provided under para2 graph (3) not later than 15 days after the date 

3 on which such a waiver was provided. 

4 ‘‘(h) VOLUNTARY INTERMODAL SEALIFT AGREE5 MENT.— 

6 ‘‘(1) IN GENERAL.—The Maritime Adminis7 trator shall require any vessel that is constructed 

8 with financial assistance under this section to enter 

9 into a Voluntary Intermodal Sealift Agreement or a 

10 Voluntary Tanker Agreement with the Maritime Ad11 ministrator. 

12 ‘‘(2) CONDITION.—The owner of any vessel that 

13 is constructed with financial assistance under this 

14 section and that has a Voluntary Intermodal Sealift 

15 Agreement or Voluntary Tanker Agreement with the 

16 Maritime Administrator shall agree to provide effec17 tive control of such vessel to the United States dur18 ing— 

19 ‘‘(A) a national emergency declared by 

20 Presidential proclamation; or 

21 ‘‘(B) a period for which the President has 

22 proclaimed that the security of the national de23 fense makes it advisable. 

24 ‘‘(3) COMPENSATION.—During a period de25 scribed in paragraph (1), the owner of a vessel deVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 scribed in such paragraph shall be compensated for 

2 the use of the vessel by the United States at the rate 

3 the Administrator considers just compensation for 

4 the use of the vessel. 

5 ‘‘(i) CLARIFICATION.—The provision by the Adminis6 trator of Federal financial assistance for a project de7 scribed in this section shall not be considered to be a 

8 major Federal action under the National Environmental 

9 Policy Act of 1969 (42 U.S.C. 4321 et seq.) or an under10 taking for the purposes of division A of subtitle III of title 

11 54, United States Code. 

12 ‘‘(j) BUY AMERICA.—Section 54101(d)(2) shall apply 

13 to any funds obligated by the Administrator under this 

14 section. 

15 ‘‘(k) GAO REVIEW.—The Comptroller General of the 

16 United States shall— 

17 ‘‘(1) not later than 2 years after the date of 

18 disbursement of the first financial award under this 

19 section, and biennially thereafter for 10 years, con20 duct a review of the program under this section; and 

21 ‘‘(2) submit to the appropriate committees of 

22 Congress the results of each review. 

23 ‘‘(l) PROHIBITION ON USE OF FUNDS.— 

24 ‘‘(1) IN GENERAL.—No funds made available 

25 under this section may— 


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1 ‘‘(A) be used to construct, modify, or im2 prove a facility outside of the United States; or 

3 ‘‘(B) be provided to a foreign entity of con4 cern or to support a foreign entity of concern. 

5 ‘‘(2) STOCK BUYBACKS.—An entity receiving fi6 nancial assistance under this section may not engage 

7 in any stock buyback for a period of 5 years after 

8 receiving such assistance. 

9 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 

10 is authorized to be appropriated to the Administrator, out 

11 of the Maritime Security Trust Fund established under 

12 section 9512 of the Internal Revenue Code of 1986, 

13 $250,000,000 for each of fiscal years 2025 through 2034 

14 to provide financial assistance to covered entities under 

15 this section, to remain available until expended.’’. 

16 (b) CLERICAL AMENDMENT.—The table of chapters 

17 at the beginning of part C of subtitle V of title 46, United 

18 States Code, and at the beginning of subtitle V of such 

19 title, are each amended by inserting after the item relating 

20 to chapter 537 the following new item: 

‘‘538. Shipbuilding financial incentives ................................................... 53801’’. 

21 (c) CONFORMING AMENDMENT.—Title V of the Act 

22 of June 29, 1936 (49 Stat. 1995; chapter 858) is repealed. 

23 SEC. 502. ASSISTANCE FOR SMALL SHIPYARDS. 

24 Section 54101 of title 46, United States Code, is 

25 amended— 


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1 (1) in subsection (b)(1)— 

2 (A) in subparagraph (A), by striking ‘‘; 

3 and’’ and inserting a semicolon; 

4 (B) in subparagraph (B), by striking the 

5 period and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(C) long-term industrial base growth that 

8 supports the national security and economic se9 curity needs of the merchant marine of the 

10 United States.’’; and 

11 (2) in subsection (i)— 

12 (A) by inserting ‘‘out of the Maritime Se13 curity Trust Fund established under section 

14 9512 of the Internal Revenue Code of 1986’’ 

15 before ‘‘to the Administrator of the Maritime 

16 Administration’’; and 

17 (B) by striking ‘‘for fiscal year 2021 to 

18 carry out this section $20,000,000’’ and insert19 ing ‘‘$100,000,000 for each of fiscal years 2025 

20 through 2034’’. 

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

22 (a) ESTABLISHMENT OF REVOLVING LOAN FUND.— 

23 Section 53702 of title 46, United States Code, is amended 

24 by adding at the end the following: 


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1 ‘‘(c) ESTABLISHMENT OF REVOLVING LOAN

2 FUND.—Not later than 30 days after the date of enact3 ment of the SHIPS for America Act of 2024, the Sec4 retary shall establish a revolving loan fund to be adminis5 tered by the National Surface Transportation and Innova6 tion Finance Bureau established under section 116 of title 

7 49. Any funds appropriated to carry out this chapter shall 

8 be deposited in the fund, along with any proceeds gen9 erated from the loan guarantee program under this chap10 ter including any fees collected under section 53713 or 

11 53714. The Secretary or Administrator shall make a guar12 antee of payments or commitment to guarantee payments 

13 under subsection (a) or for the Secretary to make direct 

14 loan obligations under subsection (b) out of the revolving 

15 loan fund. 

16 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

17 is authorized to be appropriated, out of the Maritime Se18 curity Trust Fund established under section 9512 of the 

19 Internal Revenue Code of 1986, $100,000,000 for fiscal 

20 year 2025 to be available until expended to the revolving 

21 loan fund established under subsection (c).’’. 

22 (b) FUNDING LIMITS.—Section 53704 of title 46, 

23 United States Code, is amended— 

24 (1) in subsection (a), by striking ‘‘facilities.’’ 

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1 cent of obligations guaranteed under this chapter 

2 shall be for projects that do not receive any pay3 ments or Federal financial assistance from financial 

4 assistance programs established under this part.’’; 

5 and 

6 (2) in subsection (c), by adding at the end the 

7 following: 

8 ‘‘(5) VESSEL OF NATIONAL INTEREST.—The 

9 Administrator shall ensure that the system of risk 

10 categories under paragraph (2) takes into consider11 ation whether a project subject to a guarantee under 

12 this chapter is a project to construct, reconstruct, or 

13 recondition a Vessel of National Interest.’’. 

14 (c) ELIGIBLE PURPOSES OF OBLIGATIONS.—Section 

15 53706(a)(8) of title 46, United States Code, is amended— 

16 (1) by striking ‘‘States.’’ and inserting ‘‘States 

17 that is required—’’; and 

18 (2) by adding at the end the following new sub19 paragraphs: 

20 ‘‘(A) for the vessel to be a vessel of the 

21 United States; 

22 ‘‘(B) for the vessel to be issued a coastwise 

23 endorsement under chapter 121; 


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1 ‘‘(C) to convert a civilian vessel of the 

2 United States to a more useful military configu3 ration; 

4 ‘‘(D) for any vessel under contract to the 

5 Federal Government; or 

6 ‘‘(E) for any United States-built vessel 

7 participating in— 

8 ‘‘(i) the Maritime Security Program 

9 or the Emergency Preparedness Program 

10 under chapter 531; 

11 ‘‘(ii) the Cable Security Fleet under 

12 chapter 532; 

13 ‘‘(iii) the Tanker Security Fleet under 

14 chapter 534; 

15 ‘‘(iv) the Strategic Commercial Fleet 

16 under chapter 536; 

17 ‘‘(v) the Shipbuilding Financial Incen18 tive under chapter 538; or 

19 ‘‘(vi) the National Defense Reserve 

20 Fleet under section 57100.’’. 

21 (d) BUY AMERICA.—Section 53733 of title 46, 

22 United States Code, is amended by adding at the end the 

23 following: 


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1 ‘‘(f) BUY AMERICA.—Section 54101(d)(2) shall apply 

2 to any funds obligated by the Administrator under this 

3 section.’’. 

4 SEC. 504. CONSTRUCTION RESERVE FUND. 

5 (a) DEFINITIONS.—Section 53301(a) of title 46, 

6 United States Code, is amended— 

7 (1) in paragraph (1), by striking ‘‘a new vessel’’ 

8 and inserting ‘‘an eligible vessel’’; 

9 (2) in paragraph (2)— 

10 (A) in the paragraph heading, by striking 

11 ‘‘NEW VESSEL’’ and inserting ‘‘ELIGIBLE VES12 SEL’’; 

13 (B) in the matter preceding subparagraph 

14 (A), by striking ‘‘new vessel’’ and inserting ‘‘eli15 gible vessel’’; and 

16 (C) in subparagraph (A)— 

17 (i) in clause (i), by striking ‘‘after De18 cember 31, 1939’’; 

19 (ii) in clause (ii), by striking ‘‘and’’ 

20 after the semicolon; 

21 (iii) by redesignating clause (iii) as 

22 clause (iv); and 

23 (iv) by inserting after clause (ii), the 

24 following: 


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1 ‘‘(iii) operated in foreign commerce or 

2 domestic commerce of the United States or 

3 in the fisheries; and’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(3) FOREIGN COMMERCE.—The term ‘foreign 

6 commerce’ means— 

7 ‘‘(A) commerce or trade between the 

8 United States, its territories or possessions, or 

9 the District of Columbia, and a foreign country; 

10 and 

11 ‘‘(B) commerce or trade between foreign 

12 countries.’’. 

13 (b) AUTHORITY FOR CONSTRUCTION RESERVE

14 FUNDS.—Section 53302(a) of title 46, United States 

15 Code, is amended by striking ‘‘or acquisition of a new ves16 sel’’ and inserting ‘‘repowering, or acquisition of an eligi17 ble vessel’’. 

18 (c) PERSONS ELIGIBLE TO ESTABLISH FUNDS.— 

19 Section 53303 of title 46, United States Code, is amend20 ed— 

21 (1) by striking the matter preceding paragraph 

22 (1) and inserting the following: ‘‘A citizen of the 

23 United States may make an agreement with the Sec24 retary of Transportation under this chapter to estab25 lish a construction reserve fund if that citizen—’’; 


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1 (2) in paragraph (1), by striking ‘‘in the foreign 

2 or domestic commerce of the United States’’ and in3 serting ‘‘documented under the laws of the United 

4 States and operating in foreign commerce or domes5 tic commerce of the United States’’; 

6 (3) in paragraph (2), by striking ‘‘being oper7 ated in the foreign or domestic commerce of the 

8 United States’’ and inserting ‘‘documented under 

9 the laws of the United States and operating in for10 eign commerce or domestic commerce of the United 

11 States’’; 

12 (4) in paragraph (3), by striking ‘‘in the foreign 

13 or domestic commerce of the United States’’ and in14 serting ‘‘documented under the laws of the United 

15 States and operating in foreign commerce or domes16 tic commerce of the United States’’; 

17 (5) in paragraph (4)— 

18 (A) by striking ‘‘being operated in the for19 eign or domestic commerce of the United 

20 States’’ and inserting ‘‘documented under the 

21 laws of the United States and operating in for22 eign commerce or domestic commerce of the 

23 United States’’; and 

24 (B) by striking ‘‘or’’ after the semicolon; 

25 (6) in paragraph (5)— 


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1 (A) by striking ‘‘in the foreign or domestic 

2 commerce of the United States’’ and inserting 

3 ‘‘documented under the laws of the United 

4 States to operate in foreign commerce or do5 mestic commerce of the United States’’; and 

6 (B) by striking the period at the end and 

7 inserting ‘‘; or’’; and 

8 (7) by adding at the end the following: 

9 ‘‘(6) commits, as a part of the agreement with 

10 the Secretary under this chapter, to construct, re11 construct, recondition, repower, or acquire, and op12 erate, an eligible vessel by not later than 5 years 

13 after the date on which the construction reserve 

14 fund is established.’’. 

15 (d) VESSEL OWNERSHIP.—Section 53304 of title 46, 

16 United States Code, is amended by striking ‘‘constructed 

17 or acquired’’ each place the term appears and inserting 

18 ‘‘constructed, reconstructed, reconditioned, repowered, or 

19 acquired’’. 

20 (e) BASIS FOR DETERMINING GAIN OR LOSS.—Sec21 tion 53307 of title 46, United States Code, is amended— 

22 (1) in the section heading, by striking ‘‘new 

23 vessels’’ and inserting ‘‘eligible vessels’’; 

24 (2) by striking ‘‘a new vessel’’ and inserting 

25 ‘‘an eligible vessel’’; 


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1 (3) by striking ‘‘the new vessel’’ and inserting 

2 ‘‘the eligible vessel’’; 

3 (4) by inserting ‘‘repowered,’’ after ‘‘recondi4 tioned,’’; and 

5 (5) by inserting ‘‘repowering,’’ after ‘‘recondi6 tioning,’’. 

7 (f) OBLIGATION OF DEPOSITS.—Section 53310 of 

8 title 46, United States Code, is amended— 

9 (1) in subsection (a)— 

10 (A) by striking ‘‘a new vessel’’ each place 

11 the term appears and inserting ‘‘an eligible ves12 sel’’; and 

13 (B) in paragraph (1)(A), by striking ‘‘or 

14 reconditioning’’ and inserting ‘‘, repowering, or 

15 reconditioning’’; and 

16 (2) by striking subsections (b) and (c) and in17 serting the following: 

18 ‘‘(b) ADDITIONAL REQUIREMENTS FOR CERTAIN

19 VESSELS.—In addition to the requirements of subsection 

20 (a)(1), for an eligible vessel not constructed under the con21 struction-differential program or not bought from the Sec22 retary of Transportation, construction shall commence 

23 with reasonable dispatch after the date of the construction 

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1 tation and certified by such Secretary to the Secretary of 

2 the Treasury. 

3 ‘‘(c) EXTENSIONS.—The Secretary of Transportation 

4 may grant extensions of the period within which the depos5 its must be expended or obligated, except that such exten6 sions may not be for a total of more than 15 years for 

7 the expenditure or obligation of deposits.’’. 

8 (g) TAXATION OF DEPOSITS ON FAILURE OF CONDI9 TIONS.—Section 53311(3) of title 46, United States Code, 

10 is amended by striking ‘‘to the extent of 5 percent of com11 pletion’’. 

12 (h) CLERICAL AMENDMENT.—The table of sections 

13 for chapter 533 of title 46, United States Code, is amend14 ed by striking the item relating to section 53307 and in15 serting the following: 

‘‘53307. Basis for determining gain or loss and for depreciating eligible vessels.’’. 

16 SEC. 505. CAPITAL CONSTRUCTION FUND. 

17 (a) IN GENERAL.—Chapter 535 of subtitle V of title 

18 46, United States Code, is amended— 

19 (1) in section 53501— 

20 (A) by redesignating paragraphs (2), (3), 

21 (4), (5), (6), (7), (8), and (9), as paragraphs 

22 (3), (5), (7), (8), (9), (10), (11), and (12), re23 spectively; 


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1 (B) by inserting after paragraph (1) the 

2 following: 

3 ‘‘(2) CARGO HANDLING EQUIPMENT.—The term 

4 ‘cargo handling equipment’ means any vehicle or 

5 land-based equipment (excluding marine container 

6 chassis, but including cargo-handling equipment that 

7 emits less than 1 gram of CO2(kWh)), and the asso8 ciated marine terminal or port landside infrastruc9 ture, used at a marine terminal to lift or move 

10 cargo— 

11 ‘‘(A) manufactured in the United States 

12 (including any territory or possession of the 

13 United States); or 

14 ‘‘(B) manufactured outside of the United 

15 States, if such equipment is not produced in the 

16 United States in sufficient and reasonably 

17 available quantities or of a satisfactory quality 

18 as determined by the Secretary.’’; 

19 (C) by inserting after paragraph (3), as re20 designated by subparagraph (A), the following: 

21 ‘‘(4) FOREIGN COMMERCE.—The term ‘foreign 

22 commerce’ means— 

23 ‘‘(A) commerce or trade between the 

24 United States, its territories or possessions, or 


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1 the District of Columbia, and a foreign country; 

2 and 

3 ‘‘(B) commerce or trade between foreign 

4 countries.’’; 

5 (D) by inserting after paragraph (5), as 

6 redesignated by subparagraph (A), the fol7 lowing: 

8 ‘‘(6) MARINE TERMINAL.—The term ‘marine 

9 terminal’ means wharves, bulkheads, quays, piers, 

10 docks, and other berthing locations and adjacent 

11 storage or adjacent areas and structures associated 

12 with the primary movement of cargo or materials 

13 from vessel to shore, or from shore to vessel, includ14 ing structures which are devoted to receiving, han15 dling, holding, consolidating, loading, or delivery of 

16 waterborne shipments, including areas devoted to 

17 the maintenance of the terminal or equipment.’’ ; 

18 (E) in paragraph (3)(A)(iii), as redesig19 nated by subparagraph (A), by striking ‘‘foreign 

20 or domestic trade of the United States’’ and in21 serting ‘‘foreign commerce or domestic trade of 

22 the United States’’; and 

23 (F) in paragraph (8)(A)(iii), as redesig24 nated by subparagraph (A), by striking ‘‘foreign 

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1 serting ‘‘foreign commerce or domestic trade of 

2 the United States’’; 

3 (2) in section 53503— 

4 (A) by striking subsection (a) and insert5 ing the following: 

6 ‘‘(a) IN GENERAL.— 

7 ‘‘(1) CITIZEN AGREEMENTS.—A citizen of the 

8 United States may make an agreement with the Sec9 retary under this chapter to establish a capital con10 struction fund for a vessel if that citizen— 

11 ‘‘(A) owns or leases an eligible vessel; or 

12 ‘‘(B) commits, as a part of such agree13 ment, to build and operate an eligible vessel not 

14 later than 5 years after establishing the capital 

15 construction fund. 

16 ‘‘(2) OPERATOR AGREEMENTS.—An operator of 

17 a United States marine terminal may make an 

18 agreement with the Secretary under this chapter to 

19 establish a capital construction fund for the marine 

20 terminal.’’; and 

21 (B) by striking subsection (b), and insert22 ing the following: 

23 ‘‘(b) ALLOWABLE PURPOSE.—The purpose of the 

24 agreement shall be to provide— 


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1 ‘‘(1) replacement vessels, additional vessels, or 

2 reconstructed vessels, built in the United States and 

3 documented under the laws of the United States, for 

4 operation in the foreign commerce or domestic trade 

5 of the United States or in the fisheries of the United 

6 States; or 

7 ‘‘(2) replacement cargo handling equipment, ad8 ditional cargo handling equipment, or reconstructed 

9 cargo handling equipment for operation at marine 

10 terminals in the United States.’’; 

11 (3) in section 53504(b), by inserting ‘‘or United 

12 States marine terminal’’ after ‘‘agreement vessel’’; 

13 (4) by striking section 53505 and inserting the 

14 following: 

15 ‘‘§ 53505. Ceiling on deposits 

16 ‘‘(a) MAXIMUM DEPOSITS.—The amount deposited in 

17 a capital construction fund for a taxable year may not ex18 ceed the amount specified in the agreement under section 

19 53503(a), which shall be an amount that is related to a 

20 commitment to invest the revenue from the capital con21 struction fund into funding the construction of new vessels 

22 or funding cargo handling equipment. 

23 ‘‘(b) REVENUE.—For the purposes of subsection (a), 

24 the revenue from the capital construction fund may in25 clude— 


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1 ‘‘(1) income attributable to the operation of the 

2 agreement vessel in foreign commerce or domestic 

3 trade or fisheries or the operation of a marine ter4 minal in the United States; 

5 ‘‘(2) the amount allowable as a deduction under 

6 section 167 of the Internal Revenue Code of 1986 

7 for the taxable year with respect to the agreement 

8 vessels or cargo handling equipment; 

9 ‘‘(3) the net proceeds from the disposition of an 

10 agreement vessel or cargo handling equipment or in11 surance or indemnity attributable to the vessel or 

12 cargo handling equipment; and 

13 ‘‘(4) the receipts from the investment or rein14 vestment of amounts held in the fund. 

15 ‘‘(c) REDUCTIONS FOR LESSEES.—For a lessee, the 

16 maximum amount that may be deposited for an agreement 

17 vessel under subsection (a) for any period shall be reduced 

18 by any amount the owner is required or permitted, under 

19 the capital construction fund agreement, to deposit for 

20 that period for the vessel under subsection (a).’’; 

21 (5) in section 53506— 

22 (A) in subsection (a), by striking ‘‘Except 

23 as provided in subsection (b), amounts in the 

24 fund may be invested only in interest-bearing 

25 securities approved by the Secretary.’’; and 


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1 (B) in subsection (b), by striking ‘‘With 

2 the approval of the Secretary, an agreed per3 centage (but not more than 60 percent) of the 

4 assets of the fund’’ and inserting ‘‘An agreed 

5 percentage of the assets of the fund’’; 

6 (6) in section 53509— 

7 (A) by striking subsection (a), and insert8 ing the following: 

9 ‘‘(a) IN GENERAL.—Subject to subsections (b) and 

10 (c), a withdrawal from a capital construction fund is a 

11 qualified withdrawal if it is made under the terms of the 

12 agreement and is for— 

13 ‘‘(1) the acquisition, construction, repowering, 

14 or reconstruction of— 

15 ‘‘(A) a qualified vessel or a barge or con16 tainer that is part of the complement of a quali17 fied vessel; or 

18 ‘‘(B) cargo handling equipment; or 

19 ‘‘(2) the payment of the principal on indebted20 ness incurred in the acquisition, construction, 

21 repowering, or reconstruction of— 

22 ‘‘(A) a qualified vessel or a barge or con23 tainer that is part of the complement of a quali24 fied vessel; or 

25 ‘‘(B) cargo handling equipment.’’; 


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1 (B) by redesignating subsection (c) as sub2 section (e); and 

3 (C) by inserting after subsection (b) the 

4 following: 

5 ‘‘(c) FULLY AUTOMATED CARGO HANDLING EQUIP6 MENT.—No withdrawals may be made from a capital con7 struction fund to purchase fully automated cargo handling 

8 equipment that is remotely operated or remotely mon9 itored with or without the exercise of human intervention 

10 or control, if the Secretary determines such equipment 

11 would result in a net loss of jobs within a marine terminal. 

12 ‘‘(d) PROHIBITION ON CERTAIN CRANES.—No with13 drawals may be made from a capital construction fund to 

14 purchase cranes manufactured in the People’s Republic of 

15 China or by foreign entities of concern (as defined in sec16 tion 4 of the SHIPS for America Act of 2024).’’; 

17 (7) in section 53510— 

18 (A) in subsection (b), by inserting ‘‘cargo 

19 handling equipment,’’ after ‘‘barge,’’ both 

20 places the term appears; 

21 (B) in subsection (c), by inserting ‘‘cargo 

22 handling equipment,’’ after ‘‘barge,’’ both 

23 places the term appears; and 

24 (C) in subsection (d), by inserting ‘‘cargo 

25 handling equipment,’’ after ‘‘barges,’’; 


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1 (8) in section 53511(e)(1), by striking the table 

2 contained therein and inserting the following: 

‘‘If the amount remains in the 

fund at the close of theThe applicable percentage is16th taxable year .........................................................................20 percent

17th taxable year .........................................................................40 percent

18th taxable year .........................................................................60 percent

19th taxable year .........................................................................80 percent

20th taxable year ......................................................................... 100 percent’’; 

3 and 

4 (9) in section 53512(b)(1), by adding ‘‘cargo 

5 handling equipment,’’ after ‘‘advanced’’. 

6 (b) CARGO HANDLING EQUIPMENT AVAILABILITY.— 

7 The Secretary shall annually publish in the Federal Reg8 ister a request for information regarding the availability 

9 of cargo handling equipment manufactured in the United 

10 States and shall share the results of such request for infor11 mation with capital construction fund holders. 

12 SEC. 506. ANTICIPATED COMMERCIAL VESSEL CONSTRUC13 TION SURVEY. 

14 (a) IN GENERAL.—Chapter 501 of title 46, United 

15 States Code, is amended by adding at the end the fol16 lowing: 

17 ‘‘§ 50115. Anticipated commercial vessel construction 

18 survey 

19 ‘‘(a) DEFINITION.—In this section, ‘commercial ves20 sel of the United States’ means a vessel that is docu21 mented under the laws of the United States, not less than 

22 6,000 deadweight tons, and operated in the domestic trade 


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1 of the United States or foreign commerce, and may in2 clude— 

3 ‘‘(1) a bulk carrier vessel; 

4 ‘‘(2) a tanker vessel; 

5 ‘‘(3) a roll-on/roll-off vessel; 

6 ‘‘(4) a liquefied natural gas tanker vessel; 

7 ‘‘(5) a container vessel; 

8 ‘‘(6) a multi-purpose vessel; 

9 ‘‘(7) a cable vessel (as defined in section 

10 53201); 

11 ‘‘(8) a heavy-lift vessel; or 

12 ‘‘(9) any other type of vessel determined appro13 priate by the Administrator, in consultation with the 

14 Maritime Security Board. 

15 ‘‘(b) IN GENERAL.—Not later than 180 days after 

16 the date of enactment of this section, and annually there17 after, the Maritime Administrator shall conduct a survey 

18 of owners, agents, or operators of commercial vessels of 

19 the United States to identify plans for the construction, 

20 maintenance, and modernization of commercial vessels of 

21 the United States. 

22 ‘‘(c) PURPOSE.—The purpose of the survey con23 ducted under this section is to inform the maritime indus24 trial base of the future need for the construction of com25 mercial vessels. 


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1 ‘‘(d) INCLUSIONS.—In conducting the survey under 

2 this section, the Maritime Administrator shall collect the 

3 following information from owners, agents, or operators 

4 of commercial vessels of the United States who participate 

5 in the survey: 

6 ‘‘(1) The number of commercial vessels of the 

7 United States the participant is looking to construct 

8 during the 10-year period beginning on the date on 

9 which the participant takes the survey. 

10 ‘‘(2) The capabilities of the vessels described in 

11 paragraph (1) that the participant is seeking in con12 structing such vessels. 

13 ‘‘(3) Estimated timelines for when the partici14 pant aims to place each such vessel into service. 

15 ‘‘(4) The number of major repairs of commer16 cial vessels of the United States and overhauls of 

17 such commercial vessels the participant is looking to 

18 carry out during the 10-year period described in 

19 paragraph (1). 

20 ‘‘(5) The major components that a shipbuilder 

21 would need from industrial base suppliers to support 

22 the construction, overhaul, or repair of commercial 

23 vessels of the United States during such 10-year pe24 riod. 


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1 ‘‘(6) Estimates for the capital expenditures the 

2 participant is planning to make for the construction, 

3 overhaul, or repair of commercial vessels of the 

4 United States during such 10-year period. 

5 ‘‘(7) Any additional information the Maritime 

6 Administrator determines appropriate. 

7 ‘‘(e) PARTICIPATION.—The Administrator may not 

8 require any owner, agent, or operator of a commercial ves9 sel of the United States to participate in the survey unless 

10 that owner, agency, or operator is participating in a finan11 cial assistance program established under part C of this 

12 subtitle. 

13 ‘‘(f) RELEASE OF FINDINGS.— 

14 ‘‘(1) DISTRIBUTION.—Each year, the Maritime 

15 Administrator may release the findings of the survey 

16 with shipyards in the United States and other mari17 time industrial base stakeholders the results of the 

18 survey conducted under this section for such year in 

19 such a manner as the Administrator determines ap20 propriate. 

21 ‘‘(2) PROPRIETARY INFORMATION.—Notwith22 standing any other provision of law, including sec23 tion 552 of title 5, United States Code, at the re24 quest of a survey participant, the Maritime Adminis25 trator shall withhold proprietary information proVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00197 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 vided as a part of a survey conducted under this sec2 tion. 

3 ‘‘(3) COORDINATION.—To the maximum extent 

4 practicable, the Maritime Administrator shall seek to 

5 conduct the annual surveys under this section and 

6 publish the results of such surveys on a similar 

7 timeline as the timeline for the annual naval vessel 

8 construction plans under section 231(a)(1) of title 

9 10 and other shipbuilding construction surveys pub10 lished by other Federal agencies.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for chapter 501 of title 46, United States Code, is amend13 ed by inserting after the item relating to section 50114 

14 the following: 

‘‘50115. Anticipated commercial vessel construction survey.’’. 

15 SEC. 507. STREAMLINED ENVIRONMENTAL REVIEW. 

16 Section 41001(6) of the Fixing America’s Surface 

17 Transportation Act (42 U.S.C. 4370m(6)) is amended— 

18 (1) in subparagraph (A)— 

19 (A) in the matter preceding clause (i), by 

20 inserting ‘‘the maritime industry’’ after ‘‘water21 ways,’’; 

22 (B) by redesignating clauses (iii) and (iv) 

23 as clauses (iv) and (v), respectively; and 

24 (C) by inserting after clause (ii) the fol25 lowing: 


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1 ‘‘(iii) is covered by a programmatic 

2 plan or environmental review developed for 

3 a project related to the maritime indus4 try;’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(D) MARITIME INDUSTRY.—For the pur7 poses of subparagraph (A), the term ‘construc8 tion of infrastructure’ for the maritime industry 

9 includes construction of— 

10 ‘‘(i) shipyards and ship repair facili11 ties; 

12 ‘‘(ii) port terminals and other port fa13 cilities; 

14 ‘‘(iii) manufacturing facilities for 

15 equipment and technology instrumental to 

16 the facilitation of maritime trade and com17 merce, as defined by the Council; and 

18 ‘‘(iv) other industrial base facilities 

19 that support the Navy or the merchant 

20 marine of the United States.’’. 

21 SEC. 508. ELIGIBILITY FOR LOAN GUARANTEES. 

22 Section 1703(b) of the Energy Policy Act of 2005 

23 (42 U.S.C. 16513(b)) is amended by inserting at the end 

24 the following: 


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1 ‘‘(14) Marine transportation systems, including 

2 commercial vessels of the United States, shipyards, 

3 marine terminals, and port facilities.’’. 

4 SEC. 509. REPORTS. 

5 (a) REPORT ON NATIONAL DEFENSE RESERVE

6 FLEET.— 

7 (1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this Act, and every 

9 2 years thereafter, the Maritime Administrator, in 

10 consultation with the Commander of the United 

11 States Transportation Command and the Secretary 

12 of the Navy, and in accordance with paragraph (2), 

13 shall submit to the appropriate committees of Con14 gress and the Maritime Security Board a report— 

15 (A) outlining a plan for using the ship16 building financial incentives program authorized 

17 under section 53801 of title 46, United States 

18 Code, as added by section 501, and the finan19 cial incentive programs under subpart C of sub20 title V of title 46, United States Code, to sup21 plement the size and readiness of the National 

22 Defense Reserve Fleet and to improve national 

23 shipbuilding and shipping infrastructure; and 

24 (B) describing ways in which an expanded 

25 and creative view of the make-up of vessels with 


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1 Voluntary Intermodal Sealift Agreements or 

2 Voluntary Tanker Agreements and the ship3 building financial incentives program authorized 

4 under such section can be used to ensure gov5 ernment access to other vessels that are critical 

6 to national security, such as icebreakers, oil and 

7 natural gas tankers, floating dry docks, salvage 

8 vessels, dredges, ocean tugs, offshore construc9 tion vessels, multi-use workboats, and commer10 cial shipping vessels using small nuclear reac11 tors. 

12 (2) ADDITIONAL CONSULTATION.—In preparing 

13 the report under paragraph (1), the Maritime Ad14 ministrator shall also consult with the Secretary of 

15 Commerce and the Secretary of Energy with respect 

16 to shipping vessels or mobile maritime power plants 

17 using small nuclear reactors. 

18 (b) REPORT ON DE-RISKING MARITIME SECTOR.— 

19 Not later than 180 days after the date of enactment of 

20 this Act, and every 2 years thereafter, the Secretary of 

21 Defense and the Secretary of Homeland Security, in co22 ordination with the Secretaries of Treasury and State, the 

23 Maritime Administrator, the United States Trade Rep24 resentative, and the Director of the Office of Management 

25 and Budget, shall submit to the appropriate committees 


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1 of Congress and the Maritime Security Board a report 

2 outlining a comprehensive strategy for de-risking the 

3 United States maritime domain from the People’s Repub4 lic of China and other asymmetric or emerging maritime 

5 threats. 

6 (c) REPORT ON RESTRICTING FLOW OF CAPITAL TO

7 CCP.—Not later than 180 days after the date of enact8 ment of this Act, the Secretary of Transportation, the Sec9 retary of Defense, the Secretary of Commerce, the Sec10 retary of State, and the Secretary of the Treasury shall 

11 submit to the appropriate committees of Congress and the 

12 Maritime Security Board a report on ways and means for 

13 restricting the flow of capital from the United States to 

14 Chinese Communist Party maritime industries, which 

15 shall include recommendations for promoting the flow of 

16 capital within and between the United States and treaty 

17 allies of the United States. The report shall also include 

18 a survey of banks, pension funds, and large financial insti19 tutions, with recommendations for ways the United States 

20 can incentivize domestic financial investments in the mari21 time industry. 

22 SEC. 510. EXPORT CONTROL REPORT. 

23 Not later than 1 year after the date of enactment 

24 of this Act, the Secretary of State shall submit to Con25 gress a report assessing methods to reduce the use of exVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00202 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 port controls and other restrictions under the Arms Ex2 port Control Act (22 U.S.C. 2751 et seq.) and the Inter3 national Traffic in Arms Regulations under subchapter M 

4 of chapter I of title 22, Code of Federal Regulations, or 

5 successor regulations, that limit the ability of foreign6 owned marine industrial base companies to participate in 

7 the United States shipbuilding industry, specifically in8 cluding shipbuilding for the Federal Government, while 

9 ensuring appropriate safeguards for United States-based 

10 firms and American workers. 

11 Subtitle B—Department of Defense 

12 Programs 

13 SEC. 511. ASSESSMENT OF THE USE OF COMMERCIAL BEST 

14 PRACTICES FOR NAVY SHIPBUILDING. 

15 (a) ASSESSMENT.— 

16 (1) IN GENERAL.—The Secretary of the Navy, 

17 in coordination with the Secretary of Transportation 

18 and the Secretary of the Department in which the 

19 Coast Guard is operating, shall— 

20 (A) conduct an assessment of best prac21 tices used in the construction and repair of 

22 commercial, oceangoing maritime vessels; and 

23 (B) identify— 

24 (i) opportunities for the Navy and 

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1 tices to make ship construction and repair 

2 efforts of combatant and non-combatant 

3 vessels more efficient; and 

4 (ii) advanced technologies that can be 

5 leveraged to improve the overall readiness 

6 and dominance of the United States mari7 time fleet (both commercial and military), 

8 to specifically include small modular reac9 tors for ship power and propulsion. 

10 (2) ELEMENTS.—The assessment required by 

11 paragraph (1) shall include the following: 

12 (A) An evaluation of the best practices de13 scribed in subparagraph (A) of such paragraph, 

14 including best practices used by commercial 

15 shipyards in foreign allied countries, consider16 ation of commercial design standards, and the 

17 vessel construction manager model used to con18 struct the National Security Multi Mission Ves19 sel Program, that could improve the efficiency 

20 of shipbuilding and repair by the Navy and 

21 Coast Guard. 

22 (B) An identification of commercial-grade 

23 components and capabilities being used in state24 of-the-art commercial, oceangoing maritime ves25 sels and an assessment of whether the Navy 


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1 and Coast Guard could better use commercial 

2 off-the-shelf components or capabilities to re3 duce costs, improve efficiencies, or enhance ca4 pabilities in the construction of new naval ves5 sels and cutters, and in repair of naval vessels 

6 and cutters. 

7 (C) A determination as to whether ship8 building and acquisition programs of the Navy 

9 and Coast Guard use modern best practices 

10 from the commercial maritime industry in 

11 terms of contracting, ship design, construction, 

12 overhaul, and maintenance. 

13 (D) An identification of technologies and 

14 procedures that are used in commercial ship15 building that, if used by the Navy and Coast 

16 Guard, would improve the efficiency of design17 ing and constructing new naval vessels. 

18 (E) An identification of technologies and 

19 procedures that are used in commercial ship20 building and repair that, if used by the Navy 

21 and Coast Guard, would improve the efficiency 

22 of repairing naval vessels. 

23 (F) An identification of opportunities to 

24 improve commonality in ship design, ship com25 ponents, and shipbuilding procedures between 


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1 commercial, oceangoing maritime vessels, naval 

2 vessels, and cutters that could lead to improved 

3 efficiencies and a more resilient industrial base 

4 to support shipbuilding and repair for military 

5 and civil maritime vessels. 

6 (G) An identification of advanced nuclear 

7 technologies that are under development for use 

8 in commercial shipbuilding that, if used by the 

9 Navy and Coast Guard, would improve the 

10 operational capability of naval vessels and cut11 ters. 

12 (H) An identification of the barriers pre13 venting or making prohibitive the use of small 

14 modular reactors in naval or commercial, ocean15 going maritime vessels, including— 

16 (i) ambiguity in regulations governing 

17 nuclear propulsion restricting the commer18 cial maritime industry from utilizing nu19 clear propulsion or collaborating between 

20 United States and foreign entities under 

21 export controls requirements, including 

22 section 744.5 of title 15, Code of Federal 

23 Regulations (or a similar successor regula24 tion); and 


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1 (ii) a lack of clarity in the meaning of 

2 ‘‘maritime (civil) nuclear propulsion plant 

3 projects’’ contained in the Export Adminis4 tration Regulations and ‘‘Naval Nuclear 

5 Propulsion’’ contained in the International 

6 Traffic in Arms Regulations (Cat VI). 

7 (I) An evaluation of education and tech8 nology development best practices used by com9 mercial shipyards in foreign allied countries, 

10 and an identification of education and tech11 nology development opportunities, that could 

12 improve the efficiency of shipbuilding and re13 pair by the Navy and Coast Guard. 

14 (J) An evaluation of whether adoption of 

15 the best practices evaluated under subpara16 graph (A) for the construction and repair of 

17 naval vessels and cutters would support the do18 mestic commercial maritime shipbuilding indus19 try, the commercial maritime industrial base, 

20 and the merchant marine of the United States. 

21 (b) BRIEFING.—Not later than 180 days after the 

22 date of the enactment of this Act, the Secretary of the 

23 Navy shall provide to the congressional defense commit24 tees a briefing on— 


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1 (1) the results of the assessment required by 

2 subsection (a); and 

3 (2) a plan to execute any measures pursuant to 

4 such assessment. 

5 (c) STRATEGY REQUIRED.—Not later than 1 year 

6 after the date of enactment of this Act, and biennially 

7 thereafter, the Secretary of the Navy and Secretary of the 

8 Department in which the Coast Guard is operating shall— 

9 (1) provide to the appropriate committees of 

10 Congress strategies describing how measures identi11 fied as a result of the assessment required by sub12 section (a) will be incorporated into shipbuilding 

13 programs for the Navy and Coast Guard; and 

14 (2) publish a public version of the strategies. 

15 (d) CONGRESSIONAL DEFENSE COMMITTEES DE16 FINED.—In this section, the term ‘‘congressional defense 

17 committees’’ has the meaning given that term in section 

18 101(a) of title 10, United States Code. 

19 SEC. 512. PLAN OF ACTION FOR USE OF DEFENSE PRODUC20 TION ACT OF 1950 AUTHORITIES. 

21 (a) IN GENERAL.—Not later than 180 days after the 

22 date of the enactment of this Act, the President shall sub23 mit to the appropriate committees of Congress a report 

24 on a plan of action for any use of authorities available 


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1 under title III of the Defense Production Act of 1950 (50 

2 U.S.C. 4531 et seq.)— 

3 (1) to establish or enhance a domestic produc4 tion capability for the construction of militarily use5 ful, commercial maritime vessels that can be oper6 ated in foreign commerce or the domestic commerce 

7 of the United States; 

8 (2) to establish, improve, or enhance the de9 fense shipyard industrial base; or 

10 (3) to establish, improve, or enhance maritime 

11 port infrastructure of the United States, including 

12 containers and ship-to-shore cranes that were built 

13 in the United States and are owned by citizens of 

14 the United States. 

15 (b) COORDINATION.—The President shall develop the 

16 plan of action required by subsection (a) in consultation 

17 with— 

18 (1) the maritime security advisor (as estab19 lished by this Act); 

20 (2) the Maritime Security Board (as established 

21 by this Act); 

22 (3) an advisory committee established under 

23 section 708(d) of the Defense Production Act of 

24 1950 (50 U.S.C. 4558(d)); and 


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1 (4) such stakeholders in the private sector as 

2 the President considers appropriate. 

3 (c) APPROPRIATE COMMITTEES OF CONGRESS DE4 FINED.—In this section, the term ‘‘appropriate commit5 tees of Congress’’ means— 

6 (1) the Committee on Armed Services, the 

7 Committee on Commerce, Science, and Transpor8 tation, and the Committee on Appropriations of the 

9 Senate; and 

10 (2) the Committee on Armed Services, the 

11 Committee on Transportation and Infrastructure, 

12 and the Committee on Appropriations of the House 

13 of Representatives. 

14 SEC. 513. STRATEGY ON DEVELOPMENT OF NAVAL REARM15 AT-SEA CAPABILITY. 

16 (a) STRATEGY REQUIRED.— 

17 (1) IN GENERAL.—Not later than 180 days 

18 after the date of the enactment of this Act, the Sec19 retary of the Navy shall submit to the congressional 

20 defense committees a strategy for delivering a 

21 rearm-at-sea capability to the surface fleet of the 

22 Navy. 

23 (2) ELEMENTS.—Such strategy required under 

24 paragraph (1) shall include each of the following: 


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1 (A) A plan to develop, by not later than 3 

2 years after the date of the enactment of this 

3 Act, the capability to employ transportable re4 arming mechanism equipment to load missile 

5 canisters into MK 41 vertical launch system 

6 cells on Navy destroyers, including— 

7 (i) an identification of the current and 

8 planned investments of the Navy in tech9 nology development to achieve such capa10 bility; and 

11 (ii) the anticipated cost and schedule 

12 for such investments. 

13 (B) A plan for the key milestone events 

14 and associated dates in the development of such 

15 capability. 

16 (C) A plan to coordinate with allies of the 

17 United States that use variants of the MK 41 

18 vertical launch system manufactured by the 

19 United States to jointly procure rearm-at-sea 

20 capabilities. 

21 (D) An identification of any courses of ac22 tion the Secretary of the Navy is considering 

23 other than the plans referred to in subpara24 graphs (A) through (C) to address the gap be25 tween the rearm-at-sea capabilities of the 


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1 United States and the capabilities of other 

2 countries, including the use of uncrewed tech3 nologies, and other commercial off-the-shelf 

4 components or capabilities. 

5 (E) Such other matters as the Secretary 

6 determines appropriate. 

7 (b) BRIEFING.—Not later than 90 days after the date 

8 of the enactment of this Act, the Secretary of the Navy 

9 shall provide to the congressional defense committees a 

10 written briefing on the development of the strategy re11 quired under subsection (a). 

12 SEC. 514. MILITARY SEALIFT COMMAND. 

13 (a) AUTHORITY TO OFFER INCREASED PAID LEAVE

14 ACCRUAL.—The Secretary of the Navy is authorized to 

15 offer government merchant mariners employed by Military 

16 Sealift Command paid leave accrual at a faster rate than 

17 provided pursuant to the standard General Schedule (GS) 

18 system to make government seafaring jobs more competi19 tive with the commercial sector. 

20 (b) REPORT ON RECRUITING AND RETENTION EF21 FORTS.— 

22 (1) IN GENERAL.—Not later than 180 days 

23 after the date of the enactment of this Act, and an24 nually thereafter, the Secretary of the Navy, in co25 ordination with the Commander of the Military SeaVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00212 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 lift Command and the Maritime Security Board, and 

2 in consultation with the Commander of United 

3 States Transportation Command, the Commander of 

4 United States Fleet Forces Command, and the As5 sistant Secretary of the Navy for Research, Develop6 ment and Acquisition, shall submit to the appro7 priate committees of Congress a report on efforts to 

8 improve recruitment and retention of Military Sealift 

9 Command Mariners. 

10 (2) ELEMENTS.—The report required under 

11 paragraph (1) shall consider— 

12 (A) opportunities to enhance the integra13 tion of Military Sealift Commander civilian 

14 mariners into the military command structure; 

15 (B) providing training on the roles and sig16 nificance of Military Sealift Command civilian 

17 mariner workforce to relevant military com18 mands; and 

19 (C) authorities required to improve recruit20 ment and retention of civilian mariners in Mili21 tary Sealift Command. 

22 (c) REPORT ON EXTENDING CHARTER DURA23 TIONS.—Not later than 90 days after the date of the en24 actment of this Act, the Secretary of the Navy shall sub25 mit to the appropriate committees of Congress a report 


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1 assessing the merits of extending the maximum charter 

2 durations of commercial and specialty vessels for the Mili3 tary Sealift Command. 

4 Subtitle C—Shipbuilding 

5 Innovation and Infrastructure 

6 SEC. 521. UNITED STATES CENTER FOR MARITIME INNOVA7 TION. 

8 (a) IN GENERAL.—Section 50307(e) of title 46, 

9 United States Code, is amended— 

10 (1) in paragraph (1), by inserting ‘‘through the 

11 establishment, management, and coordination of 

12 geographically and topically diverse maritime incuba13 tors’’ after ‘‘maritime transportation system’’; and 

14 (2) by striking paragraphs (2), (3), and (4), 

15 and inserting the following: 

16 ‘‘(2) COOPERATIVE AGREEMENT.—The coopera17 tive agreement shall be with an organization or per18 sons with substantial experience in the maritime in19 dustry, as determined by the Secretary, in consulta20 tion with the Maritime Security Board. 

21 ‘‘(3) SELECTION.—The Center shall be— 

22 ‘‘(A) selected through a competitive proc23 ess of eligible entities, and if a private entity, 

24 a domestic entity; 


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1 ‘‘(B) based in the United States with tech2 nical expertise in emerging marine technologies 

3 and practices related to the maritime transpor4 tation system; and 

5 ‘‘(C) located in close proximity to eligible 

6 entities with expertise in United States emerg7 ing maritime technologies and practices. 

8 ‘‘(4) COORDINATION.—The Secretary of Trans9 portation shall coordinate with the Maritime Secu10 rity Board and other agencies critical for science, re11 search, and regulation of emerging marine tech12 nologies for the maritime sector, including the De13 partment of Defense, the Department of Energy, the 

14 Environmental Protection Agency, the National 

15 Science Foundation, the Coast Guard, the National 

16 Oceanic and Atmospheric Association, and the Ma17 rine Board of the National Academies when estab18 lishing the Center. 

19 ‘‘(5) RESPONSIBILITIES.—The Center shall 

20 carry out the following activities: 

21 ‘‘(A) Establish and support maritime incu22 bators in accordance with paragraph (6). 

23 ‘‘(B) Accelerate the adoption or integration 

24 of commercial technologies within the maritime 

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1 ties of the merchant marine of the United 

2 States. 

3 ‘‘(C) Serve as the principal liaison between 

4 the Maritime Security Board and maritime in5 cubators. 

6 ‘‘(D) Carry out programs, projects, and 

7 other activities to strengthen the merchant ma8 rine of the United States and the maritime in9 dustrial base. 

10 ‘‘(E) Coordinate and harmonize the activi11 ties of other organizations and elements of the 

12 maritime industry on matters relating to com13 mercial technologies, dual use technologies, and 

14 the innovation of such technologies. 

15 ‘‘(F) Coordinate and advise efforts among 

16 elements of the maritime industry on matters 

17 relating to the development, procurement, and 

18 fielding of nontraditional capabilities and con19 nect entities developing those capabilities with 

20 the relevant incubators. 

21 ‘‘(G) Coordinate with maritime industry 

22 stakeholders to identify operational challenges 

23 that have the potential to be addressed through 

24 the use of nontraditional capabilities, including 


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1 dual-use technologies that are being developed 

2 and financed in the commercial sector. 

3 ‘‘(H) Coordinate with maritime industry 

4 stakeholders and relevant Federal agencies to 

5 enhance the capacity and performance of sea6 ports of the United States, including through 

7 hardening security, enhancing preparedness, 

8 and developing United States-based supply 

9 chains for port technologies and equipment. 

10 ‘‘(I) Coordinate with other research and 

11 development programs and centers focused on 

12 modes of transportation besides maritime to de13 velop intermodal interoperability with the mari14 time industry. 

15 ‘‘(J) Develop a standard design for com16 mercial vessels and components and features of 

17 commercial vessels to be manufactured in the 

18 United States, using mature, proven designs, 

19 which— 

20 ‘‘(i) includes, to the maximum extent 

21 practicable, included parts, components, 

22 and material manufactured in and sourced 

23 from the United States; 

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1 eign entities of concern or which are pro2 duced in foreign countries of concern (as 

3 such terms are defined in section 4 of the 

4 SHIPS for America Act of 2024); and 

5 ‘‘(iii) includes priorities for design 

6 identified in consultation with the Sec7 retary of the Navy, as necessary for stra8 tegic sealift, informed by requirements to 

9 sustain a wartime economy and military 

10 operations. 

11 ‘‘(K) Lead engagement with industry, aca12 demia, labor organizations, and other non13 governmental entities to develop— 

14 ‘‘(i) innovative, commercial, and dual15 use manufacturing technologies and proc16 esses to construct, rehabilitate, or repair 

17 maritime vessels of the Armed Forces or 

18 the merchant marine of the United States; 

19 ‘‘(ii) additional naval architecture pro20 grams at institutions of higher education 

21 in the United States and to expand exist22 ing naval architecture programs; 

23 ‘‘(iii) next-generation propulsion tech24 nologies for the merchant marine of the 

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1 actors, low-emission propulsion tech2 nologies, and other renewable energy solu3 tions; 

4 ‘‘(iv) new and innovative hardware, 

5 software, and systems for remote or auton6 omous operations at ports, intermodal fa7 cilities, or aboard oceangoing vessels; 

8 ‘‘(v) technology and infrastructure so9 lutions that enhance the safe operation of 

10 oceangoing vessels to protect lives, prop11 erty, and the environment; 

12 ‘‘(vi) solutions to recruit, train, and 

13 retain a skilled workforce capable of sup14 porting a vibrant and growing United 

15 States maritime industry; and 

16 ‘‘(vii) the capacity of international al17 lies and partners of the United States, 

18 with respect to manufacturing technologies 

19 and processes, to construct, rehabilitate, or 

20 repair maritime vessels. 

21 ‘‘(L) Work with academic and private sec22 tor response training centers and Centers of 

23 Excellence for Domestic Maritime Workforce 

24 Training and Education to develop maritime 

25 strategies applicable to various segments of the 


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1 United States maritime industry, including the 

2 inland, deep water, and coastal fleets. 

3 ‘‘(M) Establish programs and initiatives to 

4 share— 

5 ‘‘(i) shipbuilding best practices and 

6 maritime technology between vessels of the 

7 Department of Defense and commercial 

8 vessels of the United States; and 

9 ‘‘(ii) port technology and logistics best 

10 practices between the Department of De11 fense and commercial port operators and 

12 port authorities within the United States. 

13 ‘‘(N) Carry out such other activities as the 

14 Maritime Security Board determines appro15 priate. 

16 ‘‘(6) ESTABLISHMENT OF MARITIME INCUBA17 TORS.— 

18 ‘‘(A) ESTABLISHMENT.—The Center shall, 

19 in consultation with the Maritime Security 

20 Board, seek out, identify, and support the de21 velopment of and experimentation with commer22 cial technologies that have the potential to be 

23 implemented within the maritime industry, 

24 through the establishment of a series of mari25 time incubators. 


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1 ‘‘(B) REFLECTION.—Each incubator shall 

2 reflect the unique nature of the region’s capa3 bilities and academic and investor base. 

4 ‘‘(C) SELECTION.—Incubators shall be— 

5 ‘‘(i) selected through a competitive 

6 process of eligible entities, and if a private 

7 entity, a domestic entity; 

8 ‘‘(ii) based in the United States with 

9 technical expertise in emerging marine 

10 technologies and practices related to the 

11 maritime transportation system; 

12 ‘‘(iii) based within a United States 

13 maritime security investment zone as de14 fined in section 1400Z–3 of the Internal 

15 Revenue Code of 1986 (as added by sec16 tion 708 of this Act); and 

17 ‘‘(iv) topic-specific, according to re18 gional maritime expertise in United States 

19 emerging maritime technologies and prac20 tices, to include designated incubators fo21 cused on— 

22 ‘‘(I) clean energy and alternative 

23 fuels; 

24 ‘‘(II) ports and shoreside infra25 structure; 


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1 ‘‘(III) vessel design and naval ar2 chitecture; 

3 ‘‘(IV) shipbuilding and next gen4 eration manufacturing; and 

5 ‘‘(V) other areas for maritime in6 novation and technology, as deter7 mined by the Center in coordination 

8 with the Maritime Security Board. 

9 ‘‘(D) INCUBATOR RESPONSIBILITIES.— 

10 Each maritime incubator shall— 

11 ‘‘(i) serve as the principal liaison be12 tween the Center and individuals and enti13 ties that can contribute to innovation with14 in the maritime industry, including other 

15 maritime incubators under this subsection, 

16 entrepreneurs, startups, commercial tech17 nology companies, and venture capital 

18 sources; and 

19 ‘‘(ii) establish and support multi20 stakeholder research and innovation part21 nerships, as described in subparagraph 

22 (G). 

23 ‘‘(E) REPORT.—Each incubator shall sub24 mit quarterly activity and status reports to the 

25 Center. 


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1 ‘‘(F) REVIEW AND TERMINATION.— 

2 ‘‘(i) IN GENERAL.—The Maritime Ad3 ministrator may, in consultation with the 

4 Maritime Security Board, terminate an 

5 agreement with an eligible entity selected 

6 to lead a maritime incubator if the Admin7 istrator certifies that the eligible entity is 

8 failing to meet the requirements of this 

9 section. 

10 ‘‘(ii) RESELECTION.—If the Adminis11 trator terminates an agreement with an el12 igible entity to lead a maritime incubator, 

13 the Center shall initiate a new selection 

14 process as required under subparagraph 

15 (C) to select a new eligible entity. 

16 ‘‘(iii) REVIEW OF ELIGIBLE ENTI17 TIES.—Not later than 5 years after the es18 tablishment of maritime incubators under 

19 this paragraph, and every 5 years there20 after, the Administrator, in coordination 

21 with the Maritime Security Board, shall 

22 conduct a review of all eligible entities se23 lected to lead a maritime incubator and 

24 confirm the entity is adequately fulfilling 

25 the requirements of this section. 


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1 ‘‘(G) MULTI-STAKEHOLDER PARTNER2 SHIPS.— 

3 ‘‘(i) IN GENERAL.—The maritime in4 cubators established under this subsection 

5 shall establish and support multi-stake6 holder research and innovation partner7 ships that— 

8 ‘‘(I) have the potential to gen9 erate technologies, processes, prod10 ucts, or other solutions that support 

11 the United States maritime industry; 

12 ‘‘(II) have as an objective the 

13 technology transfer or commercializa14 tion of the work product generated by 

15 the partnership, which may include 

16 work product that incorporates intel17 lectual property developed by the Fed18 eral Government and licensed to the 

19 partnership in accordance with clause 

20 (iii); and 

21 ‘‘(III) incentivize and expand 

22 geographically diverse participation in 

23 graduate and undergraduate institu24 tions of higher education, community 


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1 college, and other workforce programs 

2 relevant to the maritime industry. 

3 ‘‘(ii) SUPPORT PROVIDED.—Support 

4 provided by the maritime incubator to a 

5 multi-stakeholder research and innovation 

6 partnership under this subsection may in7 clude— 

8 ‘‘(I) providing funding or other 

9 resources to the partnership; 

10 ‘‘(II) participating in the part11 nership; 

12 ‘‘(III) providing technical and 

13 technological advice and guidance to 

14 the partnership; 

15 ‘‘(IV) suggesting and introducing 

16 other participants for inclusion in the 

17 partnership; 

18 ‘‘(V) providing the partnership 

19 with insight into desired solutions for 

20 defense and security needs; 

21 ‘‘(VI) providing access to Ready 

22 Reserve ships for testing new tech23 nologies and conducting research, as 

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1 propriate, in coordination with the 

2 Center and the Administrator; and 

3 ‘‘(VII) such other forms of sup4 port as the Center, in consultation 

5 with maritime incubators and Mari6 time Security Board, determines ap7 propriate. 

8 ‘‘(iii) AVAILABILITY OF INTELLEC9 TUAL PROPERTY.—To the extent the Cen10 ter determines appropriate, the Center, in 

11 coordination with the maritime incubators, 

12 shall seek to actively inform potential par13 ticipants in multi-stakeholder research and 

14 innovation partnerships of the availability 

15 of intellectual property developed by the 

16 Federal Government that may be licensed 

17 to the partnership. 

18 ‘‘(7) REPORT.—Not later than 180 days after 

19 the date of enactment of the SHIPS for America 

20 Act of 2024, and annually thereafter, the Center 

21 shall submit to the Maritime Security Board and the 

22 appropriate congressional committees a report on 

23 the activities, advances, outcomes, and work product 

24 of the maritime incubators and the multi-stakeholder 


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1 research and innovation partnerships supported 

2 under this subsection. 

3 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—In 

4 addition to the funding contributed under subsection 

5 (a)(4), there is authorized to be appropriated, out of 

6 the Maritime Security Trust Fund established under 

7 section 9512 of the Internal Revenue Code of 1986, 

8 $50,000,000 for each of fiscal years 2025 through 

9 2034. 

10 ‘‘(9) DEFINITIONS.—In this subsection: 

11 ‘‘(A) MULTI-STAKEHOLDER RESEARCH

12 AND INNOVATION PARTNERSHIP.—The term 

13 ‘multi-stakeholder research and innovation part14 nership’ means a partnership composed of any 

15 combination of 2 or more of the following: 

16 ‘‘(i) Institutions of higher education 

17 (as defined in section 102 of the Higher 

18 Education Act of 1965 (20 U.S.C. 1002)) 

19 with research and innovation capability. 

20 ‘‘(ii) Nonprofit organizations that pro21 vide policy, research, outreach, operations, 

22 organizational, management, testing, eval23 uation, technology transfer, legal, financial, 

24 or advocacy expertise. 


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1 ‘‘(iii) For-profit commercial enter2 prises that may be publicly or privately 

3 owned, early stage or mature, and incor4 porated or operating by another ownership 

5 structure. 

6 ‘‘(iv) Centers of excellence for domes7 tic maritime workforce training and edu8 cation (established under section 51706). 

9 ‘‘(v) Maritime labor organizations. 

10 ‘‘(vi) Departments or agencies of the 

11 Federal Government with expertise, oper12 ations, or resources related to the objec13 tives of the multi-stakeholder research and 

14 innovation partnership. 

15 ‘‘(vii) State maritime academies (as 

16 defined in section 51102(4)). 

17 ‘‘(viii) The United States Merchant 

18 Marine Academy. 

19 ‘‘(ix) National research laboratories 

20 with expertise, operations, or resources re21 lated to the objectives of the partnership. 

22 ‘‘(B) NONTRADITIONAL CAPABILITY.—The 

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1 nal capital with minimal dependencies on field2 ed systems. 

3 ‘‘(C) MARITIME INDUSTRY.—The term 

4 ‘maritime industry’ includes— 

5 ‘‘(i) shipbuilders and ship repair fa6 cilities; 

7 ‘‘(ii) ship owners; 

8 ‘‘(iii) port operators; 

9 ‘‘(iv) personnel of the merchant ma10 rine of the United States; 

11 ‘‘(v) manufacturers of equipment and 

12 technology instrumental to the facilitation 

13 of maritime trade and commerce; and 

14 ‘‘(vi) other members of the industrial 

15 base that support the Navy or the mer16 chant marine of the United States.’’. 

17 (b) TRANSITION.—A Center for Maritime Innovation 

18 established by the Secretary of Transportation through a 

19 cooperative agreement pursuant to section 50307 of title 

20 46, United States Code, as of the day before the date of 

21 enactment of this Act shall— 

22 (1) be deemed to be the United States Center 

23 for Maritime Innovation under section 50307 of title 

24 46, United States Code, as of the date of enactment 


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1 of this Act, with all the authorities granted by such 

2 section; and 

3 (2) coordinate activities of the Center with the 

4 Maritime Security Board pursuant to subsection 

5 (e)(4) of such section, as amended by this Act. 

6 SEC. 522. NATIONAL SHIPBUILDING RESEARCH PROGRAM. 

7 Section 50105(c) of title 46, United States Code, is 

8 amended to read as follows: 

9 ‘‘(c) NATIONAL SHIPBUILDING RESEARCH PRO10 GRAM.— 

11 ‘‘(1) IN GENERAL.—The Maritime Adminis12 trator shall establish and carry out, in coordination 

13 with Naval Sea Systems Command, the National 

14 Shipbuilding Research Program. 

15 ‘‘(2) PURPOSES.—The purpose of the National 

16 Shipbuilding Research Program shall be to develop 

17 plans for the economical construction of vessels and 

18 their propelling machinery, of most modern economi19 cal types, giving thorough consideration to all well20 recognized means of propulsion and taking into ac21 count the benefits from standardized production 

22 where practicable and desirable. 

23 ‘‘(3) ACTIVITIES.—The National Shipbuilding 

24 Research Program shall— 


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1 ‘‘(A) support technology transfers and in2 dustry networking; 

3 ‘‘(B) select and execute research and devel4 opment projects, which may include— 

5 ‘‘(i) advancing best practices in ship6 building and ship repair, including alter7 native project management and project fi8 nancing arrangements for shipyards, such 

9 as public-private financing; 

10 ‘‘(ii) improving efficiency across the 

11 shipyard industrial base of the United 

12 States; and 

13 ‘‘(iii) developing, maturing, and imple14 menting industry-relevant shipbuilding and 

15 sustainment technologies; 

16 ‘‘(C) carry out ad hoc initiatives focused 

17 on specific target areas in shipbuilding and ship 

18 repair; and 

19 ‘‘(D) carry out additional activities as de20 termined by the Maritime Administrator or the 

21 Secretary of Defense.’’. 

22 SEC. 523. ASSESSMENT ON MARINE INFRASTRUCTURE 

23 READINESS. 

24 (a) IN GENERAL.—Not later than 180 days after the 

25 date of enactment of this Act, the Maritime Administrator 


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1 shall submit to Congress a report on the status and re2 sources and authorities needed to execute and complete 

3 necessary vessels, harborcraft, port, shipyard, and other 

4 infrastructure improvements to ensure the national secu5 rity interests of the United States and support the domes6 tic and foreign commerce of the United States. 

7 (b) CONTENTS.—The report under subsection (a) 

8 shall include— 

9 (1) consideration of existing literature and re10 porting from Federal and non-Federal sources; 

11 (2) an assessment of the number of commercial 

12 shipping vessels by class required to sustain a peace13 time and wartime national economy; 

14 (3) an assessment of opportunities to leverage 

15 private sector funding to enhance the capability of 

16 marine infrastructure of the United States; 

17 (4) an evaluation of future infrastructure needs 

18 to support alternative fuels for vessels and 

19 harborcraft; 

20 (5) an assessment of an ability to construct and 

21 repair seaports and shipyards during national secu22 rity emergencies, including readiness to construct 

23 temporary facilities, and carry out marine salvage 

24 and firefighting operations; and 


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1 (6) an evaluation of the possible effects on the 

2 commercial operations of United States ports and 

3 other critical infrastructure of prohibiting any entity 

4 that owns or operates a port or terminal in the 

5 United States from using or sharing data with— 

6 (A) LOGINK; 

7 (B) any logistics platform controlled by, af8 filiated with, or subject to the jurisdiction of 

9 the Chinese Communist Party or the Govern10 ment of the People’s Republic of China; or 

11 (C) any logistics platform that shares data 

12 with a system described in subparagraph (A) or 

13 (B). 

14 (c) DEFINITIONS.— 

15 (1) CRITICAL INFRASTRUCTURE.—The term 

16 ‘‘critical infrastructure’’ has the meaning given the 

17 term in section 721(a) of the Defense Production 

18 Act of 1950 (50 U.S.C. 4565(a)). 

19 (2) LOGNIK.—The term ‘‘LOGINK’’ means 

20 the public, open, shared logistics information net21 work known as the National Public Information 

22 Platform for Transportation and Logistics by the 

23 Ministry of Transport of the People’s Republic of 

24 China. 


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1 TITLE VI—WORKFORCE 

2 DEVELOPMENT 

3 Subtitle A—Workforce Incentives 

4 SEC. 601. PUBLIC SERVICE LOAN FORGIVENESS FOR MER5 CHANT MARINES. 

6 Section 455(m) of the Higher Education Act of 1965 

7 (20 U.S.C. 1087e(m)) is amended— 

8 (1) in paragraph (3)(B)(i), by inserting ‘‘the 

9 United States Merchant Marine (as described in 

10 paragraph (5)), a United States shipyard,’’ after 

11 ‘‘law enforcement,’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(5) FULL-TIME JOB IN UNITED STATES MER14 CHANT MARINE.—For purposes of loan cancellation 

15 under this subsection, a full-time job in the United 

16 States Merchant Marine shall mean possession of a 

17 Merchant Mariner Credential authorized by the 

18 Coast Guard and employment on board a vessel of 

19 the United States for not less than 150 days in a 

20 calendar year.’’. 

21 SEC. 602. ELIGIBILITY FOR EDUCATIONAL ASSISTANCE. 

22 (a) IN GENERAL.—Chapter 521 of title 46, United 

23 States Code, is amended by adding at the end the fol24 lowing: 


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1 ‘‘§ 52102. Eligibility for educational assistance 

2 ‘‘(a) ELIGIBILITY.—A covered individual shall be 

3 treated as an individual described in section 3311(b)(1) 

4 of title 38, United States Code, for purposes of entitle5 ment to educational assistance under chapter 33 of such 

6 title. 

7 ‘‘(b) COVERED INDIVIDUAL.— 

8 ‘‘(1) IN GENERAL.—In this section, the term 

9 ‘covered individual’ means an individual who— 

10 ‘‘(A) served as a full-time, credentialed 

11 United States Merchant Mariner for not less 

12 than 10 years; 

13 ‘‘(B) as a result of such service received 

14 the Merchant Marine Expeditionary Medal or 

15 another award for service in a designated com16 bat zone after the date of enactment of this sec17 tion; and 

18 ‘‘(C) is not eligible under any other provi19 sion of law for benefits under laws administered 

20 by the Secretary of Veterans Affairs. 

21 ‘‘(2) FULL-TIME, CREDENTIALED UNITED

22 STATES MERCHANT MARINER.—For purposes of 

23 paragraph (1), serving as a ‘full-time, credentialed 

24 United States Merchant Mariner’ means possession 

25 of a Merchant Mariner Credential authorized by the 

26 Coast Guard and employment on board a vessel of 


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1 the United States for not less than 150 days in a 

2 calendar year. 

3 ‘‘(c) REIMBURSEMENT.—There is authorized to be 

4 appropriated to the Secretary of Veterans Affairs such 

5 sums as may be necessary to carry out this section from 

6 the Maritime Security Trust Fund established under sec7 tion 9512 of chapter 98 of the Internal Revenue Code of 

8 1986.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for chapter 521 of title 46, United States Code, is amend11 ed by adding at the end the following: 

‘‘52102. Eligibility for educational assistance.’’. 

12 SEC. 603. ELIGIBILITY OF MARINERS TO ATTEND NAVAL 

13 POSTGRADUATE SCHOOL. 

14 (a) IN GENERAL.—Section 8545 of title 10, United 

15 States Code, is amended— 

16 (1) in subsection (a), by adding at the end the 

17 following new paragraph: 

18 ‘‘(3) The Secretary may permit an officer or 

19 unlicensed mariner of the United States Merchant 

20 Marine to receive instruction at the Naval Post21 graduate School.’’; 

22 (2) in subsection (b)(1), by adding at the end 

23 the following new sentence: ‘‘The Secretary of 

24 Transportation shall bear the cost of the instruction 

25 received by officers and unlicensed mariners of the 


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1 United States Merchant Marine detailed for that in2 struction.’’; and 

3 (3) in subsection (c), by inserting ‘‘, and offi4 cers and unlicensed mariners of the United States 

5 Merchant Marine,’’ after ‘‘Coast Guard’’. 

6 (b) REPORT REQUIRED.—Not later than 180 days 

7 after the date of enactment of this Act, the Secretary of 

8 Transportation, in consultation with the Secretary of De9 fense, shall submit to Congress a report assessing what 

10 matters relating to military training it would be beneficial 

11 for mariners to study at the Naval Postgraduate School. 

12 SEC. 604. REIMBURSEMENT OF QUALIFYING SPOUSE RELI13 CENSING COSTS AND BUSINESS COSTS. 

14 (a) IN GENERAL.—Chapter 521 of title 46, United 

15 States Code, as amended by section 602, is further amend16 ed by adding at the end the following: 

17 ‘‘§ 52103. Reimbursement of qualifying spouse reli18 censing costs and business costs 

19 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

20 shall establish a program to reimburse an individual serv21 ing in the merchant marine of the United States for quali22 fied relicensing costs and qualified business costs of the 

23 spouse of that individual when the individual relocates to 

24 a new jurisdiction or geographic area as the result of a 

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1 cer in the Navy Reserve (including the Strategic Sealift 

2 Officer Program, Navy Reserve), the Coast Guard Re3 serve, or any other reserve component of the Armed Serv4 ices of the United States. 

5 ‘‘(b) LIMITATIONS.— 

6 ‘‘(1) RELICENSING.—Reimbursement provided 

7 to a member under this subsection for qualified reli8 censing costs may not exceed $1,000 in connection 

9 with each relocation described in paragraph (1). 

10 ‘‘(2) BUSINESS COSTS.—Reimbursement pro11 vided to a member under this subsection for quali12 fied business costs may not exceed $1,000 in connec13 tion with each relocation described in paragraph (1). 

14 ‘‘(3) DEADLINE.—No reimbursement may be 

15 provided under this subsection for qualified reli16 censing costs or qualified business costs paid or in17 curred after December 31, 2034. 

18 ‘‘(c) QUALIFIED RELICENSING COSTS.—In this sec19 tion, the term ‘qualified relicensing costs’ means costs, in20 cluding exam, continuing education courses, business li21 cense, permit, and registration fees, incurred by the 

22 spouse of an individual serving in the merchant marine 

23 of the United States if— 

24 ‘‘(1) the spouse was licensed or certified in a 

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1 ual’s previous assignment and requires a new profes2 sional license or certification, or business license or 

3 permit, to engage in that profession in a new juris4 diction because of the individual’s relocation de5 scribed in paragraph (1); and 

6 ‘‘(2) the costs were incurred or paid to secure 

7 or maintain the professional license or certification, 

8 or business license or permit, from the new jurisdic9 tion in connection with such relocation. 

10 ‘‘(d) QUALIFIED BUSINESS COSTS.—In this section, 

11 the term ‘qualified business costs’ means costs, including 

12 moving services for equipment, equipment removal, new 

13 equipment purchases, information technology expenses, 

14 and inspection fees, incurred by the spouse of an indi15 vidual serving in the merchant marine of the United 

16 States if— 

17 ‘‘(1) the spouse owned a business during the in18 dividual’s previous assignment and the costs result 

19 from the individual’s relocation described in para20 graph (1); and 

21 ‘‘(2) the costs were incurred or paid to move 

22 such business to a new location in connection with 

23 such relocation. 

24 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

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1 rity Trust Fund, established under section 9512 of the 

2 Internal Revenue Code of 1986 to carry out this section, 

3 $500,000 for each of fiscal years 2025 through 2034.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 for chapter 521 of title 46, United States Code, as amend6 ed by section 602, is further amended by adding at the 

7 end the following: 

‘‘52103. Reimbursement of qualifying spouse relicensing costs and business 

costs.’’. 

8 SEC. 605. NONCOMPETITIVE ELIGIBILITY FOR FEDERAL 

9 EMPLOYMENT. 

10 (a) AMENDMENT.—Chapter 521 of title 46, United 

11 States Code, as amended by sections 602 and 604, is 

12 amended by adding at the end the following: 

13 ‘‘§ 52104. Noncompetitive eligibility for Federal em14 ployment 

15 ‘‘(a) DEFINITION OF AGENCY.—In this section, the 

16 term ‘agency’— 

17 ‘‘(1) has the meaning given the term ‘Executive 

18 agency’ in section 105 of title 5, United States Code; 

19 ‘‘(2) includes the United States Postal Service 

20 and the Postal Regulatory Commission; and 

21 ‘‘(3) does not include the Government Account22 ability Office. 

23 ‘‘(b) APPOINTMENT AUTHORITY.—The head of an 

24 agency may appoint noncompetitively— 


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1 ‘‘(1) a graduate of the United States Merchant 

2 Marine Academy who has met all of the require3 ments of their cadet commitment agreement under 

4 section 51306 of title 46, United States Code; or 

5 ‘‘(2) a credentialed United States Merchant 

6 Mariner with an officer or rating endorsement who 

7 has completed not less than 7 years of service 

8 aboard a vessel of the United States.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for chapter 521 of title 46, United States Code, as amend11 ed by sections 602 and 604, is amended by adding at the 

12 end the following: 

‘‘52104. Noncompetitive eligibility for Federal employment.’’. 

13 SEC. 606. UNITED STATES MERCHANT MARINE CAREER RE14 TENTION PROGRAM. 

15 (a) SENSE OF CONGRESS.—It is the sense of Con16 gress that— 

17 (1) it takes years of training and experience, 

18 and costly license trainings, to earn mariner quali19 fications; 

20 (2) with just around 12,000 merchant mariners 

21 of the United States operating oceangoing vessels, 

22 compared with China’s more than 1,700,000 sea23 farers, the United States may not have a sufficient 

24 number of mariners to fully power the strategic sea25 lift vessels necessary in a future prolonged conflict; 


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1 (3) the United States requires a qualified work2 force of sufficient size that is ready and available to 

3 crew vessels of the United States for national de4 fense or national emergency; and 

5 (4) a workforce committed to take all measures 

6 possible to expand, develop, and protect the domestic 

7 maritime workforce should— 

8 (A) support a retention program to permit 

9 credentialed merchant mariners to maintain 

10 recency through a coordinated Federal pro11 gram, in coordination with maritime labor orga12 nizations; and 

13 (B) implement civil service, workplace, and 

14 hiring protections. 

15 (b) AMENDMENT.—Chapter 521 of title 46, United 

16 States Code, as amended by sections 602, 604, and 605, 

17 is further amended by adding at the end the following: 

18 ‘‘§ 52105. United States Merchant Marine Career Re19 tention Program 

20 ‘‘(a) ESTABLISHMENT.—The Maritime Adminis21 trator shall establish a program, to be known as the 

22 ‘United States Merchant Marine Career Retention Pro23 gram’, to ensure that a qualified workforce of sufficient 

24 size is ready to crew strategic sealift vessels in the event 

25 of a national defense or national emergency activation. 


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1 Through the United States Merchant Marine Career Re2 tention Program, the Maritime Administrator shall estab3 lish and administer mechanisms to register merchant 

4 mariners and mariner employers to participate in the Pro5 gram. 

6 ‘‘(b) IMPLEMENTATION.—The Maritime Adminis7 trator shall— 

8 ‘‘(1) appoint a board of directors to oversee the 

9 United States Merchant Marine Career Retention 

10 Program; 

11 ‘‘(2) appoint and facilitate a working group to 

12 recommend policies, procedures, and a prioritization 

13 matrix for the United States Merchant Marine Ca14 reer Retention Program, which shall be composed of 

15 representatives from major stakeholders, including 

16 maritime labor organizations, credentialed United 

17 States Merchant Mariners, vessel owners, vessel op18 erators, the United States Merchant Marine Acad19 emy, State maritime academies, United States Mili20 tary Sealift Command, and other likely employers of 

21 members of the United States Merchant Marine Ca22 reer Retention Program; and 

23 ‘‘(3) submit to Congress an annual evaluation 

24 of the United States Merchant Marine Career Re25 tention Program. 


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1 ‘‘(c) MEMBERSHIP IN UNITED STATES MERCHANT

2 MARINE CAREER RETENTION PROGRAM.— 

3 ‘‘(1) IN GENERAL.—There shall be 2 paths to 

4 enrollment in the United States Merchant Marine 

5 Career Retention Program as described in para6 graphs (2) and (3). 

7 ‘‘(2) MEMBERS WHO WORK ASHORE WHO HOLD

8 MARINER QUALIFICATIONS.— 

9 ‘‘(A) OPPORTUNITIES.—The United States 

10 Merchant Marine Career Retention Program 

11 shall provide individuals who hold Coast Guard 

12 issued mariner qualifications who work ashore 

13 with an opportunity to maintain, or potentially 

14 upgrade, their mariner qualifications and cre15 dentials by— 

16 ‘‘(i) providing qualified service at sea 

17 on vessels of the United States; and 

18 ‘‘(ii) participating in compulsory 

19 training. 

20 ‘‘(B) STRUCTURE.—The United States 

21 Merchant Marine Career Retention Program 

22 shall be open for enrollment to both licensed 

23 and unlicensed mariners and provide members 

24 with an 8–3–1 schedule as follows: 

25 ‘‘(i) 8 months shoreside employment. 


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1 ‘‘(ii) 3 months sailing employment de2 signed to ensure that members meet the 

3 minimum sea-time requirement to main4 tain the credentials required by the Stand5 ards of Training, Certification, and 

6 Watchkeeping certification, or, depending 

7 on mariner and employer requirements, 

8 more frequent, but shorter-duration sailing 

9 assignments. 

10 ‘‘(iii) 1 month vacation, which is in 

11 addition to vacation provided by the shore12 side employer. 

13 ‘‘(C) ASHORE EMPLOYERS.— 

14 ‘‘(i) EMPLOYER OBLIGATIONS.—The 

15 employer of a member of the United States 

16 Merchant Marine Career Retention Pro17 gram described under this paragraph shall 

18 grant the member— 

19 ‘‘(I) an unpaid leave of absence 

20 for the duration of the member’s 

21 training, sailing, and vacation with 

22 the United States Merchant Marine 

23 Career Retention Program; and 

24 ‘‘(II) the same or an equivalent 

25 position with the employer when the 


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1 member returns from training, sailing, 

2 or vacation with the United States 

3 Merchant Marine Career Retention 

4 Program. 

5 ‘‘(D) SEA DAY ASSIGNMENTS.—The United 

6 States Merchant Marine Career Retention Pro7 gram shall, with respect to members described 

8 under this paragraph— 

9 ‘‘(i) maintain records of each mem10 ber’s qualifications, sea time, and avail11 ability, and prioritize assignments on these 

12 and other factors with the goal of maxi13 mizing the United States Merchant Marine 

14 Career Retention Program readiness to 

15 support strategic sealift; 

16 ‘‘(ii) maintain a ‘job call’ program of17 fice that coordinates how jobs become 

18 available for members from State maritime 

19 academies, vessel operating companies, 

20 maritime labor organizations, United 

21 States Military Sealift Command, and 

22 other organizations responsible for crewing 

23 vessels of the United States of qualifying 

24 tonnage or horsepower; 


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1 ‘‘(iii) establish partnerships with State 

2 maritime academies and the United States 

3 Military Sealift Command that aim to es4 tablish reliable crewing jobs with job cycles 

5 that maximize the readiness of United 

6 States Merchant Marine Career Retention 

7 Program; 

8 ‘‘(iv) dispatch members to fill avail9 able jobs, prioritizing maximizing readiness 

10 for strategic sealift, taking into consider11 ation mariner availability and credentials, 

12 sea time requirements to maintain mer13 chant mariner credentials, predicted pro14 gram demand for specific ratings, and ex15 pected expansion or contraction of the pro16 gram’s membership; and 

17 ‘‘(v) coordinate with vessel operators 

18 and labor organizations to ensure that 

19 members in the United States Merchant 

20 Marine Career Retention Program are 

21 given opportunities to fulfill their sea time 

22 and maintain the credentials required by 

23 the Standards of Training, Certification, 

24 and, Watchkeeping certification. 


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1 ‘‘(E) USERRA PROTECTIONS.—Members 

2 of the United States Merchant Marine Career 

3 Retention Program described under this para4 graph shall be entitled to protections and obli5 gations under chapter 43 of title 38 (commonly 

6 known as the ‘Uniformed Services Employment 

7 and Reemployment Rights Act’). 

8 ‘‘(F) REQUIREMENT.—A member in the 

9 United States Merchant Marine Career Reten10 tion Program described under this paragraph 

11 may not fail to accept a sea day assignment 

12 and remain in good standing with the Program, 

13 unless a hardship exemption is provided by the 

14 Maritime Administrator under subsection (e). 

15 ‘‘(3) MEMBERS SERVING ON FOREIGN VES16 SELS.— 

17 ‘‘(A) IN GENERAL.—The United States 

18 Merchant Marine Career Retention Program 

19 shall be open for enrollment to individuals 

20 who— 

21 ‘‘(i) hold Coast Guard issued mer22 chant mariner credentials required by the 

23 Standards of Training, Certification, and 

24 Watchkeeping Certification; 


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1 ‘‘(ii) have completed their service obli2 gations with respect to any previous enroll3 ment in a Federal or State maritime acad4 emy, if applicable; and 

5 ‘‘(iii) are serving on a foreign vessel 

6 (as defined in section 110) that is not 

7 owned by a foreign entity of concern (as 

8 that term is defined in section 4 of the 

9 SHIPS for America Act of 2024) or a ves10 sel registered under a registry of a foreign 

11 country of concern or operated under the 

12 authority of a foreign country of concern 

13 (as that term is defined in such section 4). 

14 ‘‘(B) REQUIREMENT.—Members of the 

15 United States Merchant Marine Career Reten16 tion Program described under this paragraph 

17 shall maintain— 

18 ‘‘(i) Standards of Training, Certifi19 cation, and Watchkeeping Certification 

20 currency; 

21 ‘‘(ii) a valid merchant mariner creden22 tial, unlimited as to horsepower or ton23 nage, issued by the United States Coast 

24 Guard as an officer in the merchant ma25 rine of the United States, accompanied by 


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1 the appropriate national and international 

2 endorsements and certifications required 

3 by the Coast Guard for service aboard ves4 sels on domestic and international voyages, 

5 without limitation; 

6 ‘‘(iii) a valid transportation worker 

7 identification credential; 

8 ‘‘(iv) a Coast Guard medical certifi9 cate; and 

10 ‘‘(v) classes and certifications de11 scribed in subparagraph (C). 

12 ‘‘(C) CERTIFICATIONS.—The Adminis13 trator shall publish a list of classes and certifi14 cations required for individuals described in 

15 subparagraph (A) to be eligible for the United 

16 States Merchant Marine Career Retention Pro17 gram. 

18 ‘‘(D) RULE OF CONSTRUCTION.—Nothing 

19 in subparagraph (A) shall be construed to allow 

20 the United States Coast Guard to prevent or 

21 delay a merchant mariner who is otherwise eli22 gible from attaining a more advanced rank or 

23 credential for Merchant Mariners sailing on for24 eign vessels. 


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1 ‘‘(E) USERRA PROTECTIONS.—Members 

2 of the United States Merchant Marine Career 

3 Retention Program described under this para4 graph shall be entitled to protections and obli5 gations under chapter 43 of title 38 (commonly 

6 known as the ‘Uniformed Services Employment 

7 and Reemployment Rights Act’). 

8 ‘‘(d) ENFORCEMENT.—The Maritime Administrator 

9 shall ensure all members of the Merchant Marine Career 

10 Retention Program remain in good standing with the re11 quirements of the Program. 

12 ‘‘(1) ENFORCEMENT.—Subject to paragraph 

13 (2), members found to be in noncompliance with the 

14 requirements of the Program shall— 

15 ‘‘(A) have their reservist status terminated; 

16 and 

17 ‘‘(B) forfeit the protections provided under 

18 chapter 43 of title 38 (commonly known as the 

19 ‘Uniformed Services Employment and Reem20 ployment Rights Act’). 

21 ‘‘(2) EXCEPTION.—In cases where the Maritime 

22 Administrator determines a hardship exists, which 

23 prevents the mariner from meeting the requirements 

24 of the Program, the requirements of paragraph (1) 

25 shall not apply. 


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1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

2 is authorized to be appropriated out of the Maritime Secu3 rity Trust Fund established under section 9512 of the In4 ternal Revenue Code of 1986 to carry out this section, 

5 $2,000,000 for each of fiscal years 2025 through 2034.’’. 

6 (c) CLERICAL AMENDMENT.—The table of sections 

7 for chapter 521 of title 46, United States Code, as amend8 ed by sections 602, 604, and 605, is amended by adding 

9 at the end the following: 

‘‘52105. United States Merchant Marine Career Retention Program.’’. 

10 Subtitle B—Workforce Pipeline 

11 SEC. 611. MARITIME AND SHIPBUILDING RECRUITING CAM12 PAIGN. 

13 (a) PURPOSES.—The purposes of this section are 

14 to— 

15 (1) address the shortage of workers in the mar16 itime sector and stimulate growth in the United 

17 States Merchant Marine and shipbuilding industries 

18 by providing funding for a comprehensive marketing, 

19 recruiting, and public relations campaign; and 

20 (2) expand and nurture a robust maritime 

21 workforce that enhances the national security and 

22 strategic sealift readiness of the United States. 

23 (b) IN GENERAL.—The Maritime Administrator, in 

24 consultation with the Maritime Security Board, through 

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1 ploy branding, content, advertising buys, and local and na2 tional engagement strategies to implement the campaigns 

3 described in subsection (d). 

4 (c) CONTRACTS.—The contracts described in this 

5 subsection shall be made to reputable marketing, recruit6 ing, and public relations firms through a competitive bid7 ding process. 

8 (d) CAMPAIGNS.—The Maritime Administrator, in 

9 coordination with the Secretary of Labor and in consulta10 tion with the Secretary of Defense, shall carry out tar11 geted campaigns under this section to— 

12 (1) promote the virtues of work in the merchant 

13 marine of the United States for the purpose of sail14 ing in international trade, including Military Sealift 

15 Command mariner positions, and the critical need 

16 for skilled workers in the maritime industry, and to 

17 attract workers to such industry; and 

18 (2) promote the virtues of work in the ship19 building industry of the United States, highlighting 

20 the critical need for skilled workers in the ship21 building industry, and to attract workers to such in22 dustry. 

23 (e) CAMPAIGN OBJECTIVES.—The campaigns under 

24 this section shall focus on the following objectives: 


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1 (1) Emphasize the importance of maritime and 

2 shipbuilding work for national security. 

3 (2) Showcase the numerous opportunities avail4 able in the maritime industry and the shipbuilding 

5 industry. 

6 (3) Highlight the shortage of workers in the 

7 maritime industry and the shipbuilding industry. 

8 (4) Seek out new and non-traditional audiences 

9 and platforms to bring workers from different back10 grounds and with different skill sets into the mari11 time industry and shipbuilding industry. 

12 (5) Promote the excitement, benefits, and ap13 peal of a career in the maritime industry and the 

14 shipbuilding industry. 

15 (6) Inform potential workers of the points of 

16 entry available to join and receive training for such 

17 a career, including— 

18 (A) the United States Merchant Marine 

19 Academy; 

20 (B) State and regional maritime academies 

21 described in chapter 515 of title 46, United 

22 States Code; 

23 (C) merchant mariner and shipbuilding 

24 labor organization training facilities; 


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1 (D) merchant mariner and shipbuilding 

2 apprenticeship programs approved by the Sec3 retary of Labor; 

4 (E) shipbuilding industry training pro5 grams; 

6 (F) certain community colleges and private 

7 institutions of higher education; 

8 (G) maritime training high schools; and 

9 (H) Centers of Excellence for Domestic 

10 Maritime Workforce Training and Education 

11 designated by the Maritime Administration. 

12 (7) Inform potential workers of sources of fi13 nancial assistance for training for individuals inter14 ested in joining the maritime industry and the ship15 building industry. 

16 (8) Attract workers to the maritime and ship17 building industries. 

18 (9) Highlight successes in the United States 

19 maritime and shipbuilding industries. 

20 (f) TARGET AUDIENCE.—Each campaign under this 

21 section shall target a diverse audience, including— 

22 (1) potential workers interested in maritime in23 dustry careers or shipbuilding industry careers; 

24 (2) educational institutions and their students 

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1 dustry and shipbuilding industry, including kinder2 garten through grade 12 levels; 

3 (3) veterans and individuals seeking career 

4 transitions; and 

5 (4) the general public to raise awareness about 

6 the importance of the maritime and shipbuilding in7 dustries. 

8 (g) REPORTING AND ACCOUNTABILITY.— 

9 (1) QUARTERLY REPORT.—Not later than 30 

10 days after the last day of each quarter of each fiscal 

11 year during which a campaign is carried out under 

12 this section, the firm selected under subsection (b) 

13 shall submit a report with respect to such quarter to 

14 the Maritime Administrator and the appropriate 

15 committees of Congress detailing the progress, out16 reach, and impact of each campaign carried out 

17 under this section during such quarter and the effec18 tiveness of each such campaign in increasing appli19 cations for employment in the maritime and ship20 building industries of the United States. 

21 (2) FINAL REPORT.—The firm selected under 

22 subsection (b) shall submit a comprehensive final re23 port not later than 60 days after the conclusion of 

24 all campaigns carried out under this section. 


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1 (h) EFFECTIVE DATE.—The Maritime Administrator 

2 shall initiate the competitive bidding process described in 

3 subsection (b) not later than 180 days after the date that 

4 appropriations are first made available for this section. 

5 (i) AUTHORIZATION OF APPROPRIATIONS.— 

6 (1) FY 2025–2028.—There are authorized to be 

7 appropriated out of the Maritime Security Trust 

8 Fund, established under section 9512 of the Internal 

9 Revenue Code of 1986 to the Maritime Adminis10 trator, for each of fiscal year 2025, 2026, 2027, and 

11 2028, $15,000,000 to carry out this section, of 

12 which— 

13 (A) $10,000,000 shall be for the program 

14 established under subsection (d)(1) (work in the 

15 United States Merchant Marine); and 

16 (B) $5,000,000 shall be for the program 

17 established under subsection (d)(2) (work in the 

18 shipbuilding industry). 

19 (2) FY 2029–2034.—There are authorized to be 

20 appropriated out of the Maritime Security Trust 

21 Fund, established under section 9512 of the Internal 

22 Revenue Code of 1986 to the Maritime Adminis23 trator, for each of fiscal year 2029, 2030, 2031, 

24 2032, 2033, and 2034, $25,000,000 to carry out 

25 this section, of which— 


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1 (A) $15,000,000 shall be for the program 

2 established under subsection (d)(1) (work in the 

3 United States Merchant Marine); and 

4 (B) $10,000,000 shall be for the program 

5 established under subsection (d)(2) (work in the 

6 shipbuilding industry). 

7 SEC. 612. CENTERS OF EXCELLENCE FOR DOMESTIC MARI8 TIME WORKFORCE TRAINING AND EDU9 CATION. 

10 Section 51706 of title 46, United States Code, is 

11 amended— 

12 (1) in subsection (c)(1)(B)(iii), by striking 

13 ‘‘nonprofit entity’’ and inserting ‘‘entity’’; and 

14 (2) by adding to the end the following: 

15 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

16 is authorized to be appropriated out of the Maritime Secu17 rity Trust Fund, established under section 9512 of the 

18 Internal Revenue Code of 1986 to carry out this section, 

19 $25,000,000 for each of fiscal years 2025 through 2034.’’. 

20 SEC. 613. MARITIME CAREER AND TECHNICAL EDUCATION 

21 ADVISORY COMMITTEE. 

22 (a) DEFINITIONS.—In this section: 

23 (1) ADMINISTRATOR.—The term ‘‘Adminis24 trator’’ means the Maritime Administrator. 


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1 (2) ADVISORY COMMITTEE.—The term ‘‘Advi2 sory Committee’’ means the Maritime Career and 

3 Technical Education Advisory Committee established 

4 under subsection (b). 

5 (b) ADVISORY COMMITTEE PLAN AND ESTABLISH6 MENT.— 

7 (1) PLAN.—Not later than 180 days after the 

8 date of enactment of this Act, the Administrator 

9 shall develop a plan, and notify Congress of such 

10 plan, to establish a Maritime Career and Technical 

11 Education Advisory Committee to— 

12 (A) bring representatives of maritime in13 dustrial base employers and education providers 

14 together to identify joint opportunities to train 

15 needed workers for maritime careers; and 

16 (B) develop and disperse best practices and 

17 recommendations for the improvement of ship18 building education and training programs, naval 

19 architecture education programs, and merchant 

20 marine training and certification programs. 

21 (2) ESTABLISHMENT.—Not later than 1 year 

22 after the date of enactment of this Act, the Adminis23 trator shall establish the Advisory Committee. 

24 (c) MEMBERSHIP.— 


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1 (1) ADMINISTRATOR.—The Advisory Committee 

2 shall include the Administrator (or a delegate of the 

3 Administrator) who shall serve as Chair of the Advi4 sory Committee. 

5 (2) REPRESENTATIVES.—The Advisory Com6 mittee shall be composed of representatives from 

7 each of the following, to be appointed the Adminis8 trator: 

9 (A) Maritime education, including rep10 resentatives from— 

11 (i) the Centers of Excellence for Do12 mestic Maritime Workforce Training and 

13 Education designated by the Maritime Ad14 ministration, taking into consideration— 

15 (I) geographic diversity; 

16 (II) the rate of employment after 

17 graduation; 

18 (III) training or skillset diversity; 

19 and 

20 (IV) other qualities as deter21 mined by the Administrator; 

22 (ii) the United States Naval Sea 

23 Cadet Corps; and 


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1 (iii) kindergarten through grade 12 

2 maritime education programs designated 

3 by the Maritime Administration. 

4 (B) The maritime workforce, including 

5 representatives from— 

6 (i) skilled workers representing a wide 

7 swath of the career and technical maritime 

8 industry both onshore and offshore; 

9 (ii) career and technical education cer10 tified instructors; and 

11 (iii) maritime labor organizations. 

12 (C) Maritime industry, including represent13 atives from— 

14 (i) shipbuilding, ship repair, and ship15 yard industry stakeholders; 

16 (ii) maritime industrial base coali17 tions; 

18 (iii) shipping industry stakeholders; 

19 and 

20 (iv) owners and operators of vessels of 

21 the United States. 

22 (D) Technical nonprofit organizations with 

23 expertise in the maritime industry, including 

24 representatives from— 

25 (i) think tanks; 


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1 (ii) recognized classification societies; 

2 and 

3 (iii) professional societies. 

4 (E) The Federal Government, including 

5 representatives from— 

6 (i) the Department of Education; 

7 (ii) the Department of Labor; 

8 (iii) the Department of Transpor9 tation; 

10 (iv) the Department of the Navy; 

11 (v) the United States Coast Guard; 

12 (vi) the National Oceanic and Atmos13 pheric Administration; 

14 (vii) the Army Corps of Engineers; 

15 and 

16 (viii) the Federal Maritime Commis17 sion 

18 (d) MEETINGS.— 

19 (1) IN GENERAL.—The Advisory Committee 

20 shall meet not less often than annually. 

21 (2) QUORUM ESTABLISHED.—Two thirds of all 

22 members appointed by the Administrator under sub23 section (c) shall constitute a quorum for a meeting 

24 of the Advisory Committee. 


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1 (3) WORKING GROUPS.—The Advisory Com2 mittee shall include working groups that shall meet 

3 not less often than quarterly each year. 

4 (e) FACA.—Chapter 10 of title 5, United States 

5 Code, shall apply to the Advisory Committee. 

6 (f) DEVELOPMENT OF CURRICULA.—Consistent with 

7 the purposes of the Advisory Committee established in 

8 subsection (b) and applicable law (including regulations), 

9 the Advisory Committee shall recommend curricula for key 

10 skills for maritime professionals and make such curricula 

11 publicly available to institutions of higher education, ca12 reer and technical education schools, and State maritime 

13 academies. 

14 (g) REPORTING.—The Advisory Committee shall sub15 mit to the appropriate committees of Congress and the 

16 Maritime Security Board and publish on the website of 

17 the Maritime Administration, an annual report that in18 cludes best practices and policy recommendations, as de19 scribed in subsection (b). 

20 (h) RULE OF CONSTRUCTION.—Nothing in this sec21 tion shall be construed to create new regulatory authority 

22 or supersede existing law (including regulations) as of the 

23 day before the date of enactment of this Act, relating to 

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1 chitecture education programs, and merchant marine 

2 training and certification programs. 

3 SEC. 614. MILITARY CANDIDATES TO MARINER CAREERS 

4 RECRUITMENT EXCHANGE. 

5 (a) DUTIES OF SECRETARY OF DEFENSE.—The Sec6 retary of Defense shall— 

7 (1) encourage and incentivize military recruiters 

8 to recommend the United States Department of 

9 Transportation Maritime Administration to potential 

10 recruits who do not qualify for military service in the 

11 Armed Forces; and 

12 (2) establish a mechanism for military recruit13 ers to introduce recruits described in paragraph (1) 

14 who are interested in maritime service to representa15 tives from the Maritime Administration, in accord16 ance with the procedures established under sub17 section (b). 

18 (b) DUTIES OF THE MARITIME ADMINISTRATOR.— 

19 The Maritime Administrator shall— 

20 (1) establish a mechanism to receive recruit21 ment referrals from military recruiters; 

22 (2) provide hand-off services to connect recruits 

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1 time industry employers, and other maritime indus2 try career services, as appropriate; 

3 (3) track the number of referrals from the De4 partment of Defense; and 

5 (4) track the number of recruits who enroll in 

6 maritime industry programs, to the extent prac7 ticable. 

8 (c) REPORTING REQUIREMENT.— 

9 (1) BRIEFING ON THE IMPLEMENTATION

10 STRATEGY.—Not later than 90 days after the date 

11 of enactment of this Act, the Maritime Adminis12 trator, in coordination with the Secretary of De13 fense, shall submit a briefing to the appropriate 

14 committees of Congress about a strategy for imple15 menting the activities required under this section, 

16 including— 

17 (A) a timeline for implementation; and 

18 (B) the identification of the Department of 

19 Defense recruiter incentives and training re20 quired for maximum utility in carrying out such 

21 activities. 

22 (2) ANNUAL REPORT ON PROGRAM EFFICACY.— 

23 One year after the date of enactment of this Act, 

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1 fense, shall submit a report to the appropriate com2 mittees of Congress on the efficacy and utility of the 

3 activities carried out under this section, including— 

4 (A) the number of Department of Defense 

5 referrals to the Maritime Administration; 

6 (B) the number of Maritime Administra7 tion hand-offs to the maritime industry; 

8 (C) an assessment of the efficacy of the ac9 tivities carried out under this section; and 

10 (D) challenges and recommendations relat11 ing to such activities. 

12 SEC. 615. MARITIME WORKER DATA COLLECTION. 

13 (a) PUBLICATION OF REPORT.—The Maritime Ad14 ministrator shall publish an biennial report on the state 

15 of the merchant mariner workforce. 

16 (b) COMPLETION OF REPORT.—The Maritime Ad17 ministrator shall complete the biennial report required 

18 under subsection (a) or enter into a contract with another 

19 entity to complete the report. 

20 (c) CONTENT OF REPORT.—The biennial report re21 quired under subsection (a) shall include, at minimum— 

22 (1) a count of United States Merchant Mari23 ners with valid merchant mariner credentials and 

24 credentials in continuity endorsement; 


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1 (2) a count of inactive but credentialed and for2 merly credentialed United States Merchant Mari3 ners, to the extent practicable, and an evaluation 

4 of— 

5 (A) the challenges to identifying such indi6 viduals; 

7 (B) opportunities to partner with Federal, 

8 State, local, and non-government entities to 

9 identify such individuals; and 

10 (C) an action plan of how to implement the 

11 opportunities described under subparagraph 

12 (B); 

13 (3) a count of United States mariners and for14 eign workers employed on vessels, rigs, platforms, 

15 and other vehicles or structures off the coast of the 

16 United States and an evaluation of the percentage of 

17 United States and foreign workers employed on— 

18 (A) coastwise-endorsed vessels; and 

19 (B) vessels of the United States which do 

20 not have a coastwise endorsement; 

21 (4) a listing of actively operating vessels of the 

22 United States; 

23 (5) a report of merchant mariner requirements 

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1 ity, and other variables of concern, as determined by 

2 the Administrator; 

3 (6) a general outlook for the future of the mer4 chant mariner industry and potential gaps or sur5 pluses of merchant mariners; 

6 (7) identification of any concerns in the 

7 credentialing of merchant mariners, which may in8 clude general processing issues, shortage of training 

9 providers or instructors, and barriers to entry due to 

10 costs to the economically disadvantaged; and 

11 (8) recommendations, based on data collected, 

12 on ways to— 

13 (A) improve retention of existing merchant 

14 mariners; 

15 (B) create expedited pathways for mari16 ners with expired credentials to renew their cre17 dentials; and 

18 (C) encourage new merchant mariners to 

19 enter the industry. 

20 (d) ACCESSIBILITY OF DATA.— 

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the Maritime Administrator, and any au23 thorized agent of the Maritime Administrator, shall 

24 have full access to available Coast Guard mariner 

25 credentialing data, in a manner that ensures the 


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1 protection of personally identifiable information, in 

2 order to complete the report required under sub3 section (a). 

4 (2) EXCEPTION.—The Maritime Administrator, 

5 and any authorized agent of the Maritime Adminis6 trator, may not have access to confidential medical 

7 information pursuant to paragraph (1). 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated out of the Maritime Secu10 rity Trust Fund, established under section 9512 of the 

11 Internal Revenue Code of 1986 to carry out this section, 

12 $1,000,000 for each of the fiscal years 2025 through 

13 2029. 

14 SEC. 616. MILITARY TO MARITIME TRANSITION. 

15 (a) RECOMMENDATIONS REQUIRED.—Not later than 

16 180 days after the date of enactment of this Act, the Sec17 retary of Defense, in consultation with the Secretary of 

18 the Navy, the Secretary of the Air Force, the Secretary 

19 of the Army, the Secretary of the department in which 

20 the Coast Guard is operating, the Maritime Security 

21 Board, the Department of Veterans Affairs, and the De22 partment of Labor, shall submit a report to the appro23 priate committees of Congress containing— 

24 (1) recommendations about how to increase and 

25 improve opportunities for transitioning 


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1 servicemembers to secure employment in the mari2 time industry at sea and shoreside; and 

3 (2) a plan to implement those recommenda4 tions. 

5 (b) CONSIDERATIONS.—In carrying out subsection 

6 (a), the Secretary of Defense shall— 

7 (1) identify barriers that servicemembers face 

8 when trying to transition to the United States mari9 time industry, including the merchant marines, ship10 building, ship repair, and shipping; 

11 (2) consider opportunities to improve, expedite, 

12 and alleviate the burdens on servicemembers 

13 transitioning to the maritime industry, including ef14 forts to— 

15 (A) inform transitioning servicemembers of 

16 employment opportunities in the United States 

17 maritime industry; 

18 (B) assist transitioning servicemembers in 

19 determining how their military credentials and 

20 experience translate to credentialed civilian em21 ployment in the maritime industry; 

22 (C) increase the establishment and uptake 

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1 lating military credentials and experience into 

2 maritime industry credentials and employment; 

3 (D) increase the availability and accessi4 bility of preparatory activities under the 

5 SkillBridge program established under section 

6 1143(e) of title 10, United States Code, in the 

7 United States maritime industry; 

8 (E) incorporate the maritime industry in 

9 the Transition Assistance Program, as de10 scribed in chapter 58 of title 10, United States 

11 Code; and 

12 (F) enhance the activities carried out pur13 suant to the Military to Mariners Act of 2022 

14 (section 11514 of division K of the James M. 

15 Inhofe National Defense Authorization Act for 

16 Fiscal Year 2023 (Public Law 117–263)); and 

17 (3) specifically consider the transition of 

18 servicemembers to employment in the shipbuilding 

19 and ship repair maritime industries. 

20 SEC. 617. EARLY MARITIME EDUCATION AND YOUTH IN21 VOLVEMENT. 

22 (a) SECRETARY OF THE NAVY BUDGET REQUEST.— 

23 In the Secretary of the Navy’s annual budget submission 

24 to Congress, the Secretary of the Navy shall include, as 


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1 a distinct item, the funding request for the United States 

2 Naval Sea Cadet Corps. 

3 (b) ENGAGEMENT WITH ELEMENTARY SCHOOL AND

4 SECONDARY SCHOOL STUDENTS.—The Maritime Admin5 istrator shall encourage designated Centers of Excellence 

6 for Domestic Maritime Workforce Training and Education 

7 to engage with students in kindergarten through grade 12. 

8 SEC. 618. INTERNATIONAL SCHOLARSHIP FOR MARINER 

9 AND NAVAL ARCHITECTURE EXCHANGES. 

10 (a) IN GENERAL.—The Maritime Administrator shall 

11 establish an international exchange program for mariners, 

12 naval architects, and marine engineers between the United 

13 States and countries described in subsection (b). 

14 (b) ELIGIBLE PARTICIPANTS.—In carrying out the 

15 program under this section, the Administrator shall limit 

16 participation to United States citizens and citizens of— 

17 (1) member countries of NATO; 

18 (2) treaty allies of the United States; and 

19 (3) major non-NATO allies of the United 

20 States. 

21 (c) PLACEMENTS.—In carrying out the program 

22 under this section, the Administrator shall seek corporate 

23 and government partners for placement of eligible partici24 pants of the program. 


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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated out of the Maritime Secu3 rity Trust Fund, established under section 9512 of the 

4 Internal Revenue Code of 1986, $2,000,000 to carry out 

5 this section for each of fiscal years 2025 through 2034. 

6 Subtitle C—United States Mer7 chant Marine Academy and 

8 State Maritime Academies 

9 SEC. 621. AUTHORIZATION OF APPROPRIATIONS FOR 

10 UNITED STATES MERCHANT MARINE ACAD11 EMY INFRASTRUCTURE AND FACILITIES 

12 MODERNIZATION. 

13 (a) FINDINGS.—Congress finds the following: 

14 (1) The United States Merchant Marine Acad15 emy plays a critical role in training service-obligated 

16 licensed merchant mariners to operate commercial 

17 vessels, in peacetime and during times of conflict. 

18 (2) The United States Merchant Marine Acad19 emy is 1 of the 5 Federal service academies and 

20 plays a critical role in maintaining a domestic, com21 mercial maritime industry, with each graduate hav22 ing a commitment to serve not less than 8 years in 

23 the foreign and domestic commerce and the national 

24 defense of the United States, which may include 

25 service on a merchant vessel documented under 


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1 chapter 121 of title 46, and graduates make up 

2 more than 80 percent of the United States Navy’s 

3 Strategic Sealift Officer Program. 

4 (3) The United States defense readiness and 

5 economic security relies on a strong investment in 

6 training and cultivating United States Merchant Ma7 rine officers at the United States Merchant Marine 

8 Academy. 

9 (4) Most of the facilities at the United States 

10 Merchant Marine Academy date back to the Acad11 emy’s founding, have not been modernized since, and 

12 are not conducive to the immersive training and de13 manding coursework today’s Midshipmen are re14 quired to complete. 

15 (5) Rehabilitating and modernizing the campus 

16 infrastructure at the United States Merchant Ma17 rine Academy is necessary to ensuring current and 

18 future generations of Midshipmen receive a first19 class education. 

20 (b) SENSE OF THE SENATE.—It is the sense of the 

21 Senate— 

22 (1) to ensure that the United States continues 

23 to have a sufficient number of service-obligated li24 censed merchant mariners to meet current and fu25 ture economic and national security needs, the MariVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00274 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 time Administration and the Department of Trans2 portation have a responsibility to provide suitable 

3 academic, training, and dormitory facilities at the 

4 United States Merchant Marine Academy by rapidly 

5 implementing a comprehensive plan for campus-wide 

6 modernization in accordance with section 51329 of 

7 title 46, United States Code, (referred to in this sec8 tion as the ‘‘Campus Modernization Plan’’) and pro9 viding sufficient accountability and oversight to en10 sure that milestones in such plan are met; 

11 (2) in developing the comprehensive Campus 

12 Modernization Plan for the United States Merchant 

13 Marine Academy, the Maritime Administration, and 

14 the Department of Transportation should utilize, to 

15 the maximum extent practicable, the ‘‘Merchant Ma16 rine Academy Full Speed Ahead Plan’’ developed by 

17 the Maritime Security Infrastructure Council as 

18 summarized in the Congressional Record, dated Feb19 ruary 28, 2024; 

20 (3) given the conditions of the United States 

21 Merchant Marine Academy as of the date of enact22 ment of this section, a comprehensive, campus-wide 

23 modernization is needed to significantly upgrade or 

24 replace facilities throughout the campus; and 


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1 (4) the Maritime Administration and the De2 partment of Transportation should identify opportu3 nities to utilize design-build contracts to increase de4 livery times and reduce costs. 

5 (c) CAMPUS MODERNIZATION PLAN.—Chapter 513 

6 of title 46, United States Code, is amended by adding at 

7 the end the following: 

8 ‘‘§ 51329. 10-year Campus Modernization Plan 

9 ‘‘(a) IN GENERAL.—Not later than 180 days after 

10 the date of enactment of this section, the Secretary shall 

11 develop and begin to implement a comprehensive Campus 

12 Modernization Plan (referred to in this section as the 

13 ‘Campus Modernization Plan’), informed by the ‘United 

14 States Merchant Marine Academy Full Speed Ahead Plan’ 

15 developed by the Maritime Security Infrastructure Council 

16 as summarized in the Congressional Record, dated Feb17 ruary 28, 2024, to carry out a campus-wide modernization 

18 at the United States Merchant Marine Academy. 

19 ‘‘(b) OBJECTIVES.—In carrying out the Campus 

20 Modernization Plan authorized under subsection (a), the 

21 Administrator shall prioritize the following objectives: 

22 ‘‘(1) Promoting modern education best prac23 tices by constructing learning facilities that leverage 

24 state-of-the art technologies and learning best prac25 tices. 


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1 ‘‘(2) Providing Midshipmen with access to fa2 cilities needed to pass the United States Coast 

3 Guard License Exam for Third Mate or Third As4 sistant Engineer Unlimited. 

5 ‘‘(3) Ensuring Midshipmen have access to fa6 cilities sufficient to enable Midshipmen to maintain 

7 physical readiness standards required of United 

8 States Navy officers. 

9 ‘‘(4) Developing campus infrastructure to en10 sure the Academy attracts a diverse pool of appli11 cants. 

12 ‘‘(5) Providing facilities that enable industry 

13 engagement and continuing education opportunities. 

14 ‘‘(6) Maintaining a safe and secure campus en15 vironment for all Midshipmen, which shall include 

16 any facilities or infrastructure needed to meet the 

17 requirements of sections 51326, 51327, or 51328 of 

18 this title. 

19 ‘‘(7) Implementing, to the extent practicable, 

20 the facilities and infrastructure recommendations in 

21 chapter 4 of the report titled ‘Organizational Assess22 ment of the United States Merchant Marine Acad23 emy: A Path Forward’ issued by the National Acad24 emy of Public Administration in November 2021. 


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1 ‘‘(c) INCLUSIONS.—In meeting the objectives of sub2 section (b), the Campus Modernization Plan authorized 

3 under subsection (a) shall include— 

4 ‘‘(1) construction of new facilities or significant 

5 renovation of existing facilities to provide— 

6 ‘‘(A) Standards of Training, Certification, 

7 and Watchkeeping applications laboratories; 

8 ‘‘(B) a Safety Of Life At Sea training 

9 pool; 

10 ‘‘(C) engineering powerplant laboratories; 

11 ‘‘(D) athletic facilities that meet the needs 

12 of both male and female students; 

13 ‘‘(E) enhanced waterfront facilities, to in14 clude a new pier; 

15 ‘‘(F) a visitor welcome center and main 

16 campus security office building; 

17 ‘‘(G) housing facilities for senior staff and 

18 faculty; and 

19 ‘‘(H) sufficient parking facilities for fac20 ulty, staff, and campus visitors; 

21 ‘‘(2) upgrades to all classrooms and laboratories 

22 with modern information technology infrastructure; 

23 ‘‘(3) a campus-wide upgrade and retrofit of— 

24 ‘‘(A) the electric distribution power grid; 

25 ‘‘(B) the sanitary sewer system piping; 


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1 ‘‘(C) the storm drainage system; and 

2 ‘‘(D) the drinking water system, including 

3 development of a separate and redundant fire 

4 suppression system; and 

5 ‘‘(4) renovations of existing campus facilities to 

6 ensure all campus facilities— 

7 ‘‘(A) are structurally sound; 

8 ‘‘(B) have reliable heating and air condi9 tioning systems; 

10 ‘‘(C) have functioning plumbing and elec11 trical systems; 

12 ‘‘(D) are protected from the elements, in13 cluding through roof replacements and window 

14 repairs or replacements, as needed; 

15 ‘‘(E) are accessible in accordance with the 

16 Americans with Disabilities Act of 1990; and 

17 ‘‘(F) have working fire alarm and fire sup18 pression systems. 

19 ‘‘(d) REQUIREMENTS.—For the duration of the Cam20 pus Modernization Plan authorized under subsection (a), 

21 the Administrator shall ensure that the Academy remains 

22 fully operational. 

23 ‘‘(e) USE OF A FEDERAL CONSTRUCTION AGENT.— 

24 Consistent with the requirements of section 3515(d)(3) of 

25 the James M. Inhofe National Defense Authorization Act 


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1 for Fiscal Year 2023 (Public Law 117–263), the Adminis2 trator shall seek to enter into an agreement with a Federal 

3 construction agent to carry out the Campus Modernization 

4 Plan authorized under subsection (a). 

5 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to the Department of 

7 Transportation, out of the Maritime Security Trust Fund 

8 established under section 9512 of the Internal Revenue 

9 Code of 1986, for fiscal years 2025 through 2034, for the 

10 phased rehabilitation, modernization, and construction of 

11 facilities and infrastructure at the United States Merchant 

12 Marine Academy, in accordance with this section, includ13 ing the Campus Modernization Plan authorized in sub14 section (a), $1,020,000,000 of which— 

15 ‘‘(1) $54,000,000 is authorized to be appro16 priated for fiscal year 2025 for design and planning 

17 purposes, which shall be used for the development of 

18 a design-build plan for the phased rehabilitation, 

19 modernization, and construction of facilities and in20 frastructure at the United States Merchant Marine 

21 Academy in accordance with the Campus Moderniza22 tion Plan; and 

23 ‘‘(2) for fiscal years 2026 through 2034, 

24 $107,333,333 is authorized to be appropriated for 

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1 chases necessary to execute the Campus Moderniza2 tion Plan.’’. 

3 (d) CLERICAL AMENDMENT.—The table of sections 

4 for chapter 513 of title 46, United States Code, is amend5 ed by adding at the end the following: 

‘‘51329. 10-Year Campus Modernization Plan.’’. 

6 SEC. 622. UNITED STATES MERCHANT MARINE ACADEMY. 

7 (a) SENSE OF CONGRESS.—It is the sense of Con8 gress that— 

9 (1) the United States Merchant Marine Acad10 emy, one of our Nation’s 5 Federal service acad11 emies, is vital to our national security, and modern12 izing the Academy’s aging infrastructure and invest13 ing in faculty and students must be congressional 

14 priorities; 

15 (2) sufficient funding must be provided to en16 able the maximum student enrollment that the cam17 pus infrastructure of the United States Merchant 

18 Marine Academy can support; and 

19 (3) considering the Academy’s role as a co20 equal military service academy, the United States 

21 Merchant Marine Academy should be included in the 

22 rotation of presidential attendance at graduations. 

23 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

24 51301 of title 46, United States Code, is amended by add25 ing at the end the following: 


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1 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Department of 

3 Transportation $125,000,000 for each of fiscal years 2025 

4 through 2034 for Academy operations.’’. 

5 (c) REPORT ON ENROLLMENT.—Not later than 180 

6 days after the date of enactment of this Act, the Maritime 

7 Administrator shall submit a report to the appropriate 

8 committees of Congress identifying the additional re9 sources needed to increase enrollment at the United States 

10 Merchant Marine Academy. 

11 SEC. 623. RETIREMENT SERVICE CREDIT FOR SERVICE AS 

12 A MIDSHIPMAN AT THE UNITED STATES MER13 CHANT MARINE ACADEMY. 

14 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 

15 8331(13) of title 5, United States Code, is amended, in 

16 the flush text following subparagraph (C), by inserting ‘‘or 

17 the United States Merchant Marine Academy’’ after 

18 ‘‘Naval Academy’’. 

19 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 

20 Section 8401(31) of title 5, United States Code, is amend21 ed, in the flush text following subparagraph (C), by insert22 ing ‘‘or the United States Merchant Marine Academy’’ 

23 after ‘‘Naval Academy’’. 

24 (c) APPLICABILITY.—The amendments made by this 

25 section shall apply to— 


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1 (1) any annuity, the eligibility for which is 

2 based on a separation occurring before, on, or after 

3 the date of enactment of this Act; and 

4 (2) any period of service as a midshipman at 

5 the United States Merchant Marine Academy occur6 ring before, on, or after the date of enactment of 

7 this Act. 

8 SEC. 624. STATE MARITIME ACADEMIES. 

9 (a) IN GENERAL.—Not later than 180 days after the 

10 date of enactment of this Act, the Maritime Administrator 

11 shall submit a report to Congress containing the results 

12 of a study to evaluate the additional resources needed to 

13 allow State maritime academies to increase enrollment and 

14 produce additional mariners. 

15 (b) NEED FOR ADDITIONAL STATE MARITIME ACAD16 EMIES.—Such study shall consider whether there is a need 

17 for additional State maritime academies in States that do 

18 not operate a maritime academy. 

19 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

20 51501 of title 46, United States Code, is amended by add21 ing at the end the following: 

22 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

23 is authorized to be appropriated out of the Maritime Secu24 rity Trust Fund established under section 9512 of the In25 ternal Revenue Code of 1986, $10,000,000 for assistance 


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1 to State maritime academies under subsection (a) for each 

2 of fiscal years 2025 through 2034.’’. 

3 SEC. 625. MILITARY TO MARINER ENROLLMENT AT A STATE 

4 MARITIME ACADEMY. 

5 Section 51506 of title 46, United States Code, is 

6 amended— 

7 (1) in subsection (a)(2), by inserting before the 

8 semicolon the following: ‘‘, which shall include stand9 ards for a program described in subsection (c)’’; 

10 (2) by redesignating subsection (c) as sub11 section (d); and 

12 (3) by inserting after subsection (b) the fol13 lowing: 

14 ‘‘(c) MERCHANT MARINER EXPEDITED PREPARA15 TION PROGRAM.— 

16 ‘‘(1) IN GENERAL.—A State maritime academy 

17 shall offer a program for eligible individuals de18 scribed in paragraph (2) through which the eligible 

19 individuals— 

20 ‘‘(A) complete a merchant marine officer 

21 preparation program approved by the Secretary, 

22 and the requirements for the issuance of a li23 cense under section 7101 of this title, in less 

24 than 3 years; and 


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1 ‘‘(B) are not required to earn a bacca2 laureate or other degree from the State mari3 time academy. 

4 ‘‘(2) ELIGIBLE INDIVIDUALS.—An eligible indi5 vidual described in paragraph (1) is an individual 

6 who— 

7 ‘‘(A)(i) is an honorably discharged veteran 

8 of the Armed Forces; or 

9 ‘‘(ii) is a member of the National Guard or 

10 Reserves with not less than 6 years of service; 

11 and 

12 ‘‘(B) has earned a baccalaureate degree 

13 from an institution of higher education (as de14 fined in section 102 of the Higher Education 

15 Act of 1965 (20 U.S.C. 1002)) before entering 

16 the State maritime academy program.’’. 

17 SEC. 626. ENFORCEMENT OF SERVICE OBLIGATION RE18 QUIREMENTS. 

19 (a) IN GENERAL.—The Maritime Administrator shall 

20 ensure that— 

21 (1) each citizen who is appointed as a cadet at 

22 the United States Merchant Marine Academy and 

23 signs a cadet commitment agreement under section 

24 51306 of title 46, United States Code, meets the 


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1 service obligation requirements of that agreement; 

2 and 

3 (2) each individual that signs a student incen4 tive payment agreement under section 51509 of title 

5 46, United States Code, meets the service obligation 

6 requirements under that agreement. 

7 (b) REPORTING REQUIREMENT.—The Maritime Ad8 ministrator shall establish an electronic system through 

9 which each individual with a service obligation under such 

10 section 51306 or 51509 (referred to in this section as a 

11 ‘‘service-obligated mariner’’) shall annually demonstrate 

12 that they are meeting their service obligation or have a 

13 valid deferment consistent with section 51310 of title 46, 

14 United States Code, or section 51510 of title 46, United 

15 States Code, as applicable. 

16 (c) NOTIFICATION OF VIOLATION.—The Maritime 

17 Administrator shall transmit a written notice to each serv18 ice-obligated mariner who fails to meet the reporting re19 quirement of subsection (b), notifying such individual of 

20 the applicable penalties established under section 51306 

21 of title 46, United States Code, or section 51509 of title 

22 46, United States Code, for failure to carry out the appli23 cable service requirements, including cost recovery. 

24 (d) REPORT TO CONGRESS.—Not later than 180 days 

25 after the date of enactment of this section, and annually 


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1 thereafter, the Maritime Administrator shall submit to the 

2 appropriate committees of Congress a report on the status 

3 of all service-obligated mariners, which shall include— 

4 (1) information about how each service-obli5 gated mariner is meeting their service obligation re6 quirement, which shall be based on the results of the 

7 data collected under subsection (b); 

8 (2) the number of service-obligated mariners 

9 who have not met their service obligation and have 

10 not complied with the reporting requirement under 

11 subsection (b); and 

12 (3) the number of actions taken by the Mari13 time Administrator under sections 51306(b), 

14 51306(d), 51306(f), and 51509(g) to recover costs 

15 from service-obligated mariners who have not dem16 onstrated that they have met their service obligation 

17 requirements. 

18 SEC. 627. FUEL FUNDING FOR TRAINING SHIPS OPERATED 

19 BY STATE MARITIME ACADEMIES. 

20 (a) CONFORMING AMENDMENT.—Section 51504 of 

21 title 46, United States Code, is amended by striking sub22 section (f) and inserting the following: 

23 ‘‘(f) FUEL COSTS.—Subject to the availability of ap24 propriations, the Secretary shall pay to each State mari25 time academy the costs of fuel used by a vessel provided 


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1 under this section while used for training in accordance 

2 with section 51512.’’. 

3 (b) AMENDMENT.—Chapter 515 of title 46, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘§ 51512. Funding for training ships operated by 

7 State maritime academies 

8 ‘‘(a) FUEL FUNDING.— 

9 ‘‘(1) IN GENERAL.—Subject to the availability 

10 of appropriations, the Secretary shall pay to each 

11 State maritime academy the costs of fuel used by a 

12 vessel that is loaned to the State maritime academy 

13 in accordance with section 51504 while used for 

14 training. 

15 ‘‘(2) MAXIMUM AMOUNTS.—The amount of the 

16 payment to a State maritime academy under sub17 section (a) may not exceed $20,000,000 for each of 

18 fiscal years 2025 through 2034. 

19 ‘‘(3) PROHIBITION.—Maritime academies that 

20 receive funding under subsection (a) may not— 

21 ‘‘(A) profit from charging cadets to go to 

22 sea for their licensing when using federally pro23 vided fuel; or 

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1 less students elect voluntarily to live aboard the 

2 vessel. 

3 ‘‘(4) REQUIREMENT.—Each State maritime 

4 academy that receives fuel costs under this section 

5 shall offer billets for liaison officers from each mili6 tary service during the time such vessel is provided 

7 to that State maritime academy. 

8 ‘‘(b) CREW.— 

9 ‘‘(1) IN GENERAL.—Each State maritime acad10 emy shall make crew positions available on a vessel 

11 that is loaned to the State maritime academy for 

12 mariners enrolled in the United States Merchant 

13 Marine Career Retention Program established under 

14 section 52105. 

15 ‘‘(2) CREW FUNDING.—For each crew slot filled 

16 by a mariner enrolled in the career retention pro17 gram, as provided for under paragraph (1), the Sec18 retary shall pay the crew costs for that mariner, 

19 subject to the availability of appropriations. 

20 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

21 is authorized to be appropriated out of the Maritime Secu22 rity Trust Fund, established under section 9512 of the 

23 Internal Revenue Code of 1986, $120,000,000 to carry 

24 out this section for each of fiscal years 2025 through 

25 2034.’’. 


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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 515 of title 46, United States Code, is amend3 ed by adding at the end the following: 

‘‘51512. Fuel funding for training ships operated by State maritime academies.’’. 

4 SEC. 628. STATE MARITIME ACADEMY SEA TERM SCHOLAR5 SHIP PROGRAMS. 

6 (a) IN GENERAL.—Chapter 515 of title 46, United 

7 States Code, as amended by section 627, is further amend8 ed by adding at the end the following: 

9 ‘‘§ 51513. State Maritime Academy Sea Term Scholar10 ship Programs 

11 ‘‘(a) IN GENERAL.—The Maritime Administrator 

12 shall work with private entities in the maritime industry 

13 to establish a scholarship program— 

14 ‘‘(1) for students at State maritime academies 

15 to offset expenses associated with completion of a 

16 summer sea term to receive sea-time required to 

17 earn a Coast Guard license; and 

18 ‘‘(2) which is entirely or predominantly funded 

19 through contributions from a private entity. 

20 ‘‘(b) CONTRIBUTED FUNDS.—The Maritime Admin21 istrator shall enter into a cooperative agreement, or other 

22 agreement, with private entities in the maritime industry 

23 to accept funding from private entities for the purpose of 

24 establishing such a scholarship program. The cooperative 


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1 agreement may include any terms considered necessary by 

2 the Maritime Administrator. 

3 ‘‘(c) PRIVILEGES.—The Maritime Administrator may 

4 provide certain privileges to a private entity who contrib5 utes funds for a scholarship program under this section, 

6 including opportunities to provide information about em7 ployment opportunities with the private entity to students 

8 enrolled in the scholarship program. 

9 ‘‘(d) STRUCTURE.—In establishing a scholarship pro10 gram to offset expenses associated with a summer sea 

11 term— 

12 ‘‘(1) the Maritime Administrator may enter into 

13 an agreement with a student at a State maritime 

14 academy that has an agreement with the Secretary 

15 of Transportation under section 51505 of this title, 

16 to offset expenses associated with completion of a 

17 summer sea term; or 

18 ‘‘(2) the Maritime Administrator may enter into 

19 an agreement with a State maritime academy that 

20 has an agreement with the Secretary of Transpor21 tation under section 51505 of this title, to offset ex22 penses for all students who participate in a summer 

23 sea term program. 

24 ‘‘(e) RELATIONSHIP TO FINANCIAL ASSISTANCE

25 PROGRAMS.—Recognizing the need for licensed merchant 


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1 mariners, the Maritime Administrator shall encourage 

2 participants of the financial assistance programs under 

3 part C of this subtitle, to enter into agreements under this 

4 section to establish scholarship programs to offset ex5 penses associated with summer sea term. 

6 ‘‘(f) REQUIREMENTS FOR STUDENTS.—Any student 

7 who benefits from a scholarship program under this sec8 tion shall enter into an agreement with the Maritime Ad9 ministrator which requires the student to— 

10 ‘‘(1) complete the course of instruction at the 

11 academy the individual is attending; 

12 ‘‘(2) obtain a merchant mariner license, without 

13 limitation as to tonnage or horsepower, from the 

14 Coast Guard as an officer in the merchant marine 

15 of the United States, accompanied by the appro16 priate national and international endorsements and 

17 certification required by the Coast Guard for service 

18 aboard vessels on domestic and international voy19 ages, without limitation, within 3 months of comple20 tion of the course of instruction at the academy the 

21 individual is attending; 

22 ‘‘(3) serve in a position that supports the for23 eign and domestic commerce and the national de24 fense of the United States for at least 1 year after 

25 graduation from the academy— 


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1 ‘‘(A) as a merchant marine officer on a 

2 documented vessel or a vessel owned and oper3 ated by the United States Government or by a 

4 State; or 

5 ‘‘(B) as a commissioned officer on active 

6 duty in an Armed Force of the United States, 

7 as a commissioned officer in the National Oce8 anic and Atmospheric Administration, or in 

9 other maritime-related Federal employment 

10 which serves the national security interests of 

11 the United States, as determined by the Mari12 time Administrator; and 

13 ‘‘(4) report to the Maritime Administrator on 

14 compliance with this subsection. 

15 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

16 is authorized to be appropriated out of the Maritime Secu17 rity Trust Fund, established under section 9512 of the 

18 Internal Revenue Code of 1986, $2,500,000 to carry out 

19 this section for each of fiscal years 2025 through 2034.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for chapter 515 of title 46, United States Code, as amend22 ed by section 627, is further amended by adding at the 

23 end the following: 

‘‘51513. State Maritime Academy Sea Term Scholarship Programs.’’. 


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1 SEC. 629. NAVAL JOINT EXERCISE INVOLVEMENT FOR 

2 TRAINING SHIPS OPERATED BY STATE MARI3 TIME ACADEMIES. 

4 (a) IN GENERAL.—The Secretary of the Navy, in co5 ordination with the Maritime Administrator, shall, to the 

6 extent practicable, include in national and international 

7 maritime warfare exercises not less than 1 training vessel 

8 used by a State maritime academy and maintained pursu9 ant to section 51504 of title 46, United States Code, in 

10 order to provide an opportunity to integrate merchant 

11 mariners with naval and military operations. 

12 (b) PARTICIPANTS.—Subject to guidance issued by 

13 the Secretary of the Navy and Maritime Administrator, 

14 an individual may participate in the exercise aboard that 

15 training ship if the individual is— 

16 (1) a licensed merchant mariner; or 

17 (2) a student from the United States Merchant 

18 Marine Academy, a State maritime academy, a Cen19 ter of Excellence for Domestic Maritime Workforce 

20 Training and Education, or a merchant marine cen21 ter established under section 147 of the Workforce 

22 Innovation and Opportunity Act (29 U.S.C. 3197), 

23 as added by section 612 of this Act. 

24 (c) PRIORITY.—In selecting participants under sub25 section (b) the Administrator shall give priority to stu26 dents described in paragraph (2) of subsection (b). 


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1 (d) VESSELS.—In coordination with the Secretary of 

2 the Navy, the Maritime Administrator shall rotate train3 ing vessels to ensure that each training vessel described 

4 in subsection (a) has an equal opportunity to participate 

5 in such exercises. 

6 Subtitle D—Maritime 

7 Credentialing Modernization 

8 SEC. 631. MERCHANT MARINER CREDENTIALING MOD9 ERNIZATION. 

10 (a) MERCHANT MARINER CREDENTIALING MOD11 ERNIZATION.—The Secretary of the department in which 

12 the Coast Guard is operating shall carry out necessary 

13 system and process changes to carry out the activities de14 scribed in paragraphs (1) through (4). 

15 (1) LICENSING, CERTIFICATION, AND DOCU16 MENTATION DATABASE.—Replacement of the mer17 chant mariner licensing, certification, and docu18 mentation database such that the database allows 

19 for— 

20 (A) the electronic submission of merchant 

21 mariner credential applications (including sea 

22 service, professional qualifications, course com23 pletion data, safety and suitability, and medical 

24 records) and course approval requests; 


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1 (B) direct submission of sea service infor2 mation from employers and course completion 

3 data from training providers and other stake4 holders to provide data securely and directly so 

5 that documentation does not need to be sub6 mitted later by the merchant mariner; and 

7 (C) the electronic processing and evalua8 tion of information for the issuance of creden9 tials and course approvals, including the capa10 bility for the Secretary to complete remote eval11 uation of the information submitted. 

12 (2) SYSTEM FOR DATA EXCHANGE.—Implemen13 tation of a system that provides for the exchange of 

14 data with government agencies and industry stake15 holders, which provides the Maritime Administration 

16 and other agencies, as appropriate, anonymized and 

17 aggregated data showing the following: 

18 (A) The total amount of sea service for in19 dividuals with a valid merchant mariner creden20 tial. 

21 (B) The number of credentialed mariners 

22 by individual rating and the capability to filter 

23 data by endorsements. 

24 (C) Demographic information, including 

25 age, gender, ethnicity, and address or location. 


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1 (D) National Maritime Center processing 

2 times. 

3 (E) The number of Coast Guard approved 

4 training providers, and, for each such training 

5 provider, the number of courses taken by indi6 viduals who have, or who are applying for, a 

7 merchant mariner credential from that training 

8 provider. 

9 (3) PUBLIC FACING PORTAL.—Implementation 

10 of a system that includes a public facing portal in 

11 the .gov domain instead of the .mil domain to accept 

12 merchant mariner applicant information, including 

13 credential applications, course completion data, and 

14 course approval requests, that complies with the re15 quirements for cybersecurity and privacy information 

16 of electronic systems in the .gov domain. 

17 (4) EXAMINATION PROCESSES.—Upgrading the 

18 examination processes for merchant mariner exami19 nations, by— 

20 (A) implementing an examination regime 

21 that provides for electronic and third party ad22 ministration of examinations; 

23 (B) reassessing the content of tests 

24 through the development of job task analysis 

25 for all credentials; and 


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1 (C) implementing a robust system to ana2 lyze examination data. 

3 (b) REPORT.—The Secretary of the department in 

4 which the Coast Guard is operating shall submit— 

5 (1) an annual report to the Committee on Com6 merce, Science, and Transportation, the Committee 

7 on Appropriations, and the Committee on Armed 

8 Services of the Senate, and the Committee on 

9 Transportation and Infrastructure, the Committee 

10 on Appropriations, and the Committee on Armed 

11 Services of the House of Representatives, on the 

12 progress of the system and process changes required 

13 under subsection (a); and 

14 (2) a final report to those Committees 1 year 

15 after full operating capability of the complete sys16 tem, comprised of all 4 systems required under sub17 section (a). 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated out of the Maritime Secu20 rity Trust Fund, established under section 9512 of the 

21 Internal Revenue Code of 1986 to carry out this section, 

22 $20,000,000 for fiscal year 2025, to remain available until 

23 expended. 


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1 SEC. 632. REVISING MERCHANT MARINER DECK TRAINING 

2 REQUIREMENTS. 

3 (a) GENERAL DEFINITIONS.—Section 2101 of title 

4 46, United States Code, is amended— 

5 (1) by redesignating paragraphs (20) through 

6 (56) as paragraphs (21) through (57), respectively; 

7 and 

8 (2) by inserting after paragraph (19) the fol9 lowing: 

10 ‘‘(20) ‘merchant mariner credential’ means a 

11 merchant mariner license, certificate, or document 

12 that the Secretary is authorized to issue pursuant to 

13 this title.’’. 

14 (b) EXAMINATIONS.—Section 7116 of title 46, 

15 United States Code, is amended by striking subsection (c). 

16 (c) MERCHANT MARINERS DOCUMENTS.— 

17 (1) GENERAL REQUIREMENTS.—Section 7306 

18 of title 46, United States Code, is amended to read 

19 as follows: 

20 ‘‘§ 7306. General requirements and classifications for 

21 members of deck departments 

22 ‘‘(a) IN GENERAL.—The Secretary may issue a mer23 chant mariner credential, to members of the deck depart24 ment in the following classes: 

25 ‘‘(1) Able Seaman-Unlimited. 

26 ‘‘(2) Able Seaman-Limited. 


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1 ‘‘(3) Able Seaman-Special. 

2 ‘‘(4) Able Seaman-Offshore Supply Vessels. 

3 ‘‘(5) Able Seaman-Sail. 

4 ‘‘(6) Able Seaman-Fishing Industry. 

5 ‘‘(7) Ordinary Seaman. 

6 ‘‘(b) CLASSIFICATION OF CREDENTIALS.—The Sec7 retary may classify the merchant mariner credential issued 

8 under subsection (a) based on— 

9 ‘‘(1) the tonnage and means of propulsion of 

10 vessels; 

11 ‘‘(2) the waters on which vessels are to be oper12 ated; or 

13 ‘‘(3) other appropriate standards. 

14 ‘‘(c) CONSIDERATIONS.—In issuing the credential 

15 under subsection (a), the Secretary may consider the fol16 lowing qualifications of the merchant mariner: 

17 ‘‘(1) Age. 

18 ‘‘(2) Character. 

19 ‘‘(3) Habits of life. 

20 ‘‘(4) Experience. 

21 ‘‘(5) Professional qualifications demonstrated 

22 by satisfactory completion of applicable examinations 

23 or other educational requirements. 

24 ‘‘(6) Physical condition, including sight and 

25 hearing. 


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1 ‘‘(7) Other requirements established by the Sec2 retary, including career patterns and service appro3 priate to the particular service, industry, or job 

4 functions the individual is engaged.’’. 

5 (2) CLERICAL AMENDMENT.—The table of sec6 tions for chapter 73 of title 46, United States Code, 

7 is amended by striking the item relating to section 

8 7306 and inserting the following: 

‘‘7306. General requirements and classifications for members of deck departments.’’. 

9 (3) GENERAL REQUIREMENTS FOR MEMBERS

10 OF ENGINE DEPARTMENTS.—Section 7313(b) of title 

11 46, United States Code, is amended by striking 

12 ‘‘and coal passer’’. 

13 (4) TRAINING.—Section 7315 of title 46, 

14 United States Code, is amended— 

15 (A) by amending subsection (a) to read as 

16 follows: 

17 ‘‘(a) Graduation from a nautical school program ap18 proved by the Secretary may be substituted for the service 

19 requirements under sections 7307 through 7311a and 

20 7314.’’; 

21 (B) in subsection (b)— 

22 (i) by striking ‘‘one-third’’ and insert23 ing ‘‘one-half’’; and 


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1 (ii) by striking ‘‘7307–7311 of this 

2 title’’ and inserting ‘‘7307–7311a and 

3 7314’’; and 

4 (C) by striking subsection (c). 

5 (d) REDUCTION OF LENGTHS OF CERTAIN PERIODS

6 OF SERVICE.— 

7 (1) IN GENERAL.—Title 46, United States 

8 Code, is amended— 

9 (A) in section 7307, by striking ‘‘3 years’’ 

10 and inserting ‘‘18 months’’; 

11 (B) in section 7308, by striking ‘‘18 

12 months’’ and inserting ‘‘12 months’’; and 

13 (C) in section 7309, by striking ‘‘12 

14 months’’ and inserting ‘‘6 months’’. 

15 (2) TEMPORARY REDUCTION OF LENGTHS OF

16 CERTAIN PERIODS OF SERVICE.—Section 3534(j) of 

17 the National Defense Authorization Act for Fiscal 

18 Year 2024 (Public Law 118–31) is repealed. 

19 (e) MERCHANT MARINER CREDENTIALS.—Section 

20 7510 of title 46, United States Code, is amended by strik21 ing subsection (d). 

22 (f) IMPLEMENTATION.—The Secretary of the depart23 ment in which the Coast Guard is operating shall imple24 ment the amended requirements under subsections (c)(3), 

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1 ters 5 and 6 of title 5, United States Code, and Executive 

2 Orders 12866 and 13563 (5 U.S.C. 601 note). 

3 SEC. 633. INSPECTIONS FOR TRANSPORTATION SECURITY. 

4 (a) IN GENERAL.—Chapter 81 of part F of subtitle 

5 II of title 46, United States Code, is amended by adding 

6 at the end the following: 

7 ‘‘§ 8109. Inspections for transportation security 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) INSPECTION.—The Secretary shall periodi10 cally, but not less than once annually, inspect each 

11 covered facility to verify that the owner or operator 

12 of the covered facility has a valid exemption under 

13 subsection (c) of section 30 of the Outer Continental 

14 Shelf Lands Act (43 U.S.C. 1356(c)). 

15 ‘‘(2) COVERED FACILITY.—In this subsection, 

16 the term ‘covered facility’ means a vessel, rig, plat17 form, or other vehicle or structure that, but for an 

18 exemption under subsection (c) of section 30 of the 

19 Outer Continental Shelf Lands Act (43 U.S.C. 

20 1356(c)) would otherwise be subject to the regula21 tions under subsection (a)(3) of such section. 

22 ‘‘(b) TRANSPORTATION SECURITY CARD.—During an 

23 inspection under this section, the Secretary shall confirm 

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1 portation worker identification credential pursuant to sec2 tion 70105 have such a credential.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 for chapter 81 of title 46, United States Code, is amended 

5 by adding at the end the following: 

‘‘8109. Inspections for transportation security.’’. 

6 SEC. 634. TECHNICAL AMENDMENTS RELATING TO REF7 ERENCES TO SEAMEN. 

8 (a) MERCHANT MARINER CREDENTIALS.—The head9 ing for part E of subtitle II of title 46, United States 

10 Code, is amended by striking ‘‘MERCHANT SEAMEN LI11 CENSES, CERTIFICATES, AND DOCUMENTS’’ and in12 serting ‘‘MERCHANT MARINER CREDENTIALS’’. 

13 (b) ABLE SEAFARERS—UNLIMITED.— 

14 (1) IN GENERAL.—The section heading for sec15 tion 7307 of title 46, United States Code, is amend16 ed by striking ‘‘seamen’’ and inserting ‘‘sea17 farers’’. 

18 (2) CLERICAL AMENDMENT.—The table of sec19 tions for chapter 73 of title 46, United States Code, 

20 is further amended in the item relating to section 

21 7307 by striking ‘‘seamen’’ and inserting ‘‘sea22 farers’’. 

23 (c) ABLE SEAMEN—LIMITED.— 

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1 ed by striking ‘‘seamen’’ and inserting ‘‘sea2 farers’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions for chapter 73 of title 46, United States Code, 

5 is further amended in the item relating to section 

6 7308 by striking ‘‘seamen’’ and inserting ‘‘sea7 farers’’. 

8 (d) ABLE SEAFARERS—SPECIAL.— 

9 (1) IN GENERAL.—The section heading for sec10 tion 7309 of title 46, United States Code, is amend11 ed by striking ‘‘seamen’’ and inserting ‘‘sea12 farers’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions for chapter 73 of title 46, United States Code, 

15 is further amended in the item relating to section 

16 7309 by striking ‘‘seamen’’ and inserting ‘‘sea17 farers’’. 

18 (e) ABLE SEAFARERS—OFFSHORE SUPPLY VES19 SELS.— 

20 (1) IN GENERAL.—The section heading for sec21 tion 7310 of title 46, United States Code, is amend22 ed by striking ‘‘seamen’’ and inserting ‘‘sea23 farers’’. 

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions for chapter 73 of title 46, United States Code, 


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1 is further amended in the item relating to section 

2 7310 by striking ‘‘seamen’’ and inserting ‘‘sea3 farers’’. 

4 (f) ABLE SEAFARERS—SAIL.— 

5 (1) IN GENERAL.—The section heading for sec6 tion 7311 of title 46, United States Code, is amend7 ed by striking ‘‘seamen’’ and inserting ‘‘sea8 farers’’. 

9 (2) CLERICAL AMENDMENT.—The table of sec10 tions for chapter 73 of title 46, United States Code, 

11 is further amended in the item relating to section 

12 7311 by striking ‘‘seamen’’ and inserting ‘‘sea13 farers’’. 

14 (g) ABLE SEAMEN—FISHING INDUSTRY.— 

15 (1) IN GENERAL.—The section heading for sec16 tion 7311a of title 46, United States Code, is 

17 amended by striking ‘‘seamen’’ and inserting 

18 ‘‘seafarers’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions for chapter 73 of title 46, United States Code, 

21 is further amended in the item relating to section 

22 7311a by striking ‘‘seamen’’ and inserting ‘‘sea23 farers’’. 

24 (h) PARTS E AND F.—Parts E and F of subtitle II 

25 of title 46, United States Code, is amended— 


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1 (1) by striking ‘‘seaman’’ and inserting ‘‘sea2 farer’’ each place it appears; and 

3 (2) by striking ‘‘seamen’’ and inserting ‘‘sea4 farers’’ each place it appears. 

5 (i) CLERICAL AMENDMENTS.—The table of sections 

6 for subtitle II of title 46, United States Code, is amended 

7 in the item relating to part E by striking ‘‘MERCHANT 

8 SEAMEN LICENSES, CERTIFICATES, AND DOCU9 MENTS’’ and inserting ‘‘MERCHANT MARINER CRE10 DENTIALS’’. 

11 SEC. 635. RENEWAL OF MERCHANT MARINER LICENSES 

12 AND DOCUMENTS. 

13 Section 7507 of title 46, United States Code, is 

14 amended by adding at the end the following: 

15 ‘‘(d) RENEWAL.—With respect to any renewal of a 

16 valid merchant mariner credential issued under this part 

17 that is not an extension under subsection (a) or (b), the 

18 validity period of such credential shall begin the day after 

19 the expiration of the current credential.’’. 

20 SEC. 636. MERCHANT SEAMEN LICENSES, CERTIFICATES, 

21 AND DOCUMENTS; MANNING OF VESSELS. 

22 (a) CITIZENSHIP OR NONCITIZEN NATIONALITY.— 

23 (1) IN GENERAL.—Section 7102 of title 46, 

24 United States Code, is amended— 


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1 (A) in the section heading, by inserting 

2 ‘‘or noncitizen nationality’’ after ‘‘Citi3 zenship’’; and 

4 (B) by inserting ‘‘or noncitizen nationals 

5 (as such term is described in section 308 of the 

6 Immigration and Nationality Act (8 U.S.C. 

7 1408))’’ after ‘‘citizens of the United States’’. 

8 (2) CLERICAL AMENDMENT.—The table of sec9 tions for chapter 71 of title 46, United States Code, 

10 is amended by striking the item relating to section 

11 7102 and inserting the following: 

‘‘7102. Citizenship or noncitizen nationality.’’. 

12 (b) CITIZENSHIP OR NONCITIZEN NATIONALITY NO13 TATION ON MERCHANT MARINERS’ DOCUMENTS.— 

14 (1) IN GENERAL.—Section 7304 of title 46, 

15 United States Code, is amended— 

16 (A) in the section heading, by inserting 

17 ‘‘or noncitizen nationality’’ after ‘‘Citi18 zenship’’; and 

19 (B) by inserting ‘‘or noncitizen national 

20 (as such term is described in section 308 of the 

21 Immigration and Nationality Act (8 U.S.C. 

22 1408))’’ after ‘‘citizen of the United States’’. 

23 (2) CLERICAL AMENDMENT.—The table of sec24 tions for chapter 73 of title 46, United States Code, 


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1 is amended by striking the item relating to section 

2 7304 and inserting the following: 

‘‘7304. Citizenship or noncitizen nationality notation on merchant mariners’ documents.’’. 

3 (c) CITIZENSHIP OR NONCITIZEN NATIONALITY.— 

4 (1) IN GENERAL.—Section 8103 of title 46, 

5 United States Code, is amended— 

6 (A) in the section heading by inserting ‘‘or 

7 noncitizen nationality’’ after ‘‘Citizen8 ship’’; 

9 (B) in subsection (a), by inserting ‘‘or non10 citizen national’’ after ‘‘citizen of the United 

11 States’’; 

12 (C) in subsection (b)— 

13 (i) in paragraph (1)(A)(i), by insert14 ing ‘‘or noncitizen national’’ after ‘‘citizen 

15 of the United States’’; and 

16 (ii) in paragraph (3)— 

17 (I) in the matter preceding sub18 paragraph (A), by inserting ‘‘or non19 citizen nationality’’ after ‘‘citizen20 ship’’; and 

21 (II) in subparagraph (C), by in22 serting ‘‘or noncitizen nationals’’ after 

23 ‘‘citizens of the United States’’; 


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1 (D) in subsection (c), by inserting ‘‘or non2 citizen nationals’’ after ‘‘citizens of the United 

3 States’’; 

4 (E) in subsection (d)— 

5 (i) in paragraph (1), by inserting ‘‘or 

6 noncitizen nationals’’ after ‘‘citizens of the 

7 United States’’; and 

8 (ii) in paragraph (2), by inserting ‘‘or 

9 noncitizen national’’ after ‘‘citizen of the 

10 United States’’ each place it appears; 

11 (F) in subsection (e), in the matter pre12 ceding paragraph (1), by inserting ‘‘or noncit13 izen national’’ after ‘‘citizen of the United 

14 States’’ each place it appears; 

15 (G) in subsection (i)(1)(A), by inserting 

16 ‘‘or noncitizen national’’ after ‘‘citizen of the 

17 United States’’; 

18 (H) in subsection (k)(1)(A), by inserting 

19 ‘‘or noncitizen national’’ after ‘‘citizen of the 

20 United States’’; and 

21 (I) by adding at the end the following: 

22 ‘‘(l) NONCITIZEN NATIONAL DEFINED.—In this sec23 tion, the term ‘noncitizen national’ means an individual 

24 described in section 308 of the Immigration and Nation25 ality Act (8 U.S.C. 1408).’’. 


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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions for chapter 81 of title 46, United States Code, 

3 is amended by striking the item relating to section 

4 8103 and inserting the following: 

‘‘8103. Citizenship or noncitizen nationality and Navy Reserve requirements.’’. 

5 (d) COMMAND OF DOCUMENTED VESSELS.—Section 

6 12131(a) of title 46, United States Code, is amended by 

7 inserting ‘‘or noncitizen national (as such term is de8 scribed in section 308 of the Immigration and Nationality 

9 Act (8 U.S.C. 1408))’’ after ‘‘citizen of the United 

10 States’’. 

11 (e) INVALIDATION OF CERTIFICATES OF DOCU12 MENTATION.—Section 12135(2) of title 46, United States 

13 Code, is amended by inserting ‘‘or noncitizen national (as 

14 such term is described in section 308 of the Immigration 

15 and Nationality Act (8 U.S.C. 1408))’’ after ‘‘citizen of 

16 the United States’’. 

17 SEC. 637. REACTIVATION OF EXPIRED LICENSE. 

18 (a) IN GENERAL.—Chapter 75 of subtitle II of part 

19 E, of title 46, United States Code, is amended by adding 

20 at the end the following: 

21 ‘‘§ 7512. Authority for reactivation of United States 

22 Merchant Mariner credentials 

23 ‘‘(a) LICENSES AND CERTIFICATES OF REGISTRY.— 

24 Notwithstanding sections 7106 and 7107, the Secretary 

25 of the department in which the Coast Guard is operating 


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1 may renew for not more than 2 years an expired license 

2 or certificate of registry issued for an individual under 

3 chapter 71 if the Secretary determines that the renewal 

4 is in response to a national emergency declared by Con5 gress or declared under section 201 of the National Emer6 gencies Act (50 U.S.C. 1621), as deemed necessary by the 

7 Secretary. 

8 ‘‘(b) MERCHANT MARINER DOCUMENTS.—Notwith9 standing section 7302(g), the Secretary may renew for not 

10 more than 2 years an expiring merchant mariner’s docu11 ment issued for an individual under chapter 73 if the Sec12 retary determines that the renewal is in response to a na13 tional emergency proclaimed by the President or declared 

14 by Congress, as deemed necessary by the Secretary. 

15 ‘‘(c) MANNER OF RENEWAL.—Any renewal granted 

16 under this section may be granted to individual seamen 

17 or a specifically identified group of seamen.’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections 

19 for chapter 75 of title 46, United States Code, is amended 

20 by adding at the end the following: 

‘‘7512. Authority for reactivation of United States Merchant Mariner credentials.’’. 


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1 TITLE VII—AMENDMENTS TO 

2 THE INTERNAL REVENUE 

3 CODE OF 1986 

4 SEC. 701. ESTABLISHMENT OF THE MARITIME SECURITY 

5 TRUST FUND. 

6 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

7 Internal Revenue Code of 1986 is amended by adding at 

8 the end the following new section: 

9 ‘‘SEC. 9512. MARITIME SECURITY TRUST FUND. 

10 ‘‘(a) CREATION OF TRUST FUND.—There is estab11 lished in the Treasury of the United States a trust fund 

12 to be known as the ‘Maritime Security Trust Fund’, con13 sisting of such amounts as may be— 

14 ‘‘(1) appropriated to such Trust Fund as pro15 vided in this section, or 

16 ‘‘(2) credited to such Trust Fund as provided 

17 in section 9602(b). 

18 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here19 by appropriated to the Trust Fund amounts equivalent 

20 to— 

21 ‘‘(1) the taxes received in the Treasury under— 

22 ‘‘(A) section 1352 (relating to alternative 

23 tax on qualifying shipping activities), 

24 ‘‘(B) section 60301 of title 46, United 

25 States Code (relating to regular tonnage taxes), 


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1 ‘‘(C) section 60302 of title 46, United 

2 States Code (relating to special tonnage taxes), 

3 and 

4 ‘‘(D) section 60303 of title 46, United 

5 States Code (relating to light money), 

6 ‘‘(2) the amount received in the Treasury and 

7 attributable to revenue collected from duties im8 posed— 

9 ‘‘(A) under section 466 of the Tariff Act 

10 of 1930 (19 U.S.C. 1466) (relating to equip11 ment and repair of vessels), 

12 ‘‘(B) on and after July 6, 2018, with re13 spect to articles of the People’s Republic of 

14 China pursuant to section 301 of the Trade Act 

15 of 1974 (19 U.S.C. 2411), notice of which was 

16 published in the Federal Register on June 20, 

17 2018 (83 Fed. Reg. 28710), and 

18 ‘‘(C) under section 60502 of title 46, 

19 United States Code (relating to discriminating 

20 duty on goods imported in foreign vessels or 

21 from contiguous countries), 

22 ‘‘(3) any penalties paid with respect to a vessel 

23 pursuant to— 

24 ‘‘(A) section 436 of the Tariff Act of 1930 

25 (19 U.S.C. 1436), 


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1 ‘‘(B) section 453 of the Tariff Act of 1930 

2 (19 U.S.C. 1453), 

3 ‘‘(C) section 454 of the Tariff Act of 1930 

4 (19 U.S.C. 1454), 

5 ‘‘(D) section 464 of the Tariff Act of 1930 

6 (19 U.S.C. 1464), 

7 ‘‘(E) section 497 of the Tariff Act of 1930 

8 (19 U.S.C. 1497), 

9 ‘‘(F) section 584 of the Tariff Act of 1930 

10 (19 U.S.C. 1584), 

11 ‘‘(G) section 592 of the Tariff Act of 1930 

12 (19 U.S.C. 1592), 

13 ‘‘(H) section 593A of the Tariff Act of 

14 1930 (19 U.S.C. 1593a), 

15 ‘‘(I) section 7 of the Act of June 19, 1886 

16 (24 Stat. 81, chapter 421; 19 U.S.C. 1706a), 

17 ‘‘(J) section 2107 of title 46, United 

18 States Code, 

19 ‘‘(K) section 2302 of title 46, United 

20 States Code, 

21 ‘‘(L) section 3318 of title 46, United 

22 States Code, 

23 ‘‘(M) section 3718 of title 46, United 

24 States Code, 


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1 ‘‘(N) section 4106 of title 46, United 

2 States Code, 

3 ‘‘(O) section 5116 of title 46, United 

4 States Code, 

5 ‘‘(P) section 11303 of title 46, United 

6 States Code, 

7 ‘‘(Q) section 11501 of title 46, United 

8 States Code, 

9 ‘‘(R) section 12151 of title 46, United 

10 States Code, 

11 ‘‘(S) section 12507 of title 46, United 

12 States Code, 

13 ‘‘(T) section 14701 of title 46, United 

14 States Code, 

15 ‘‘(U) section 30707 of title 46, United 

16 States Code, with respect to the portion of the 

17 fine that goes to the United States Government 

18 under subsection (c) of such section 30707, 

19 ‘‘(V) section 31309 of title 46, United 

20 States Code, 

21 ‘‘(W) section 31330 of title 46, United 

22 States Code, 

23 ‘‘(X) section 41107 of title 46, United 

24 States Code, 


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1 ‘‘(Y) section 41108 of title 46, United 

2 States Code, 

3 ‘‘(Z) section 42108 of title 46, United 

4 States Code, 

5 ‘‘(AA) section 44104 of title 46, United 

6 States Code, 

7 ‘‘(BB) section 70052 of title 46, United 

8 States Code, 

9 ‘‘(CC) section 70119 of title 46, United 

10 States Code, 

11 ‘‘(DD) section 70506 of title 46, United 

12 States Code, and 

13 ‘‘(EE) section 80509 of title 46, United 

14 States Code, and 

15 ‘‘(4) any revenue generated in connection with 

16 the seizure and forfeiture of a maritime vessel 

17 under— 

18 ‘‘(A) section 3 of the Act of August 5, 

19 1935 (49 Stat. 518, chapter 438; 19 U.S.C. 

20 1703), 

21 ‘‘(B) section 70052 of title 46, United 

22 States Code, and 

23 ‘‘(C) section 70507 of title 46, United 

24 States Code. 


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1 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 

2 in the Maritime Security Trust Fund shall be available, 

3 as provided by appropriation Acts, for making expendi4 tures before October 1, 2035, to meet those obligations 

5 of the United States heretofore and hereafter incurred 

6 which are authorized to be paid out of the Maritime Secu7 rity Trust Fund under the SHIPS for America Act of 

8 2024’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for subchapter A of chapter 98 of the Internal Revenue 

11 Code of 1986 is amended by adding at the end the fol12 lowing new item: 

‘‘Sec. 9512. Maritime Security Trust Fund.’’. 

13 SEC. 702. UNITED STATES VESSEL INVESTMENT CREDIT. 

14 (a) IN GENERAL.—Subpart E of part IV of sub15 chapter A of chapter 1 of the Internal Revenue Code of 

16 1986 is amended by inserting after section 48E the fol17 lowing new section: 

18 ‘‘SEC. 48F. UNITED STATES VESSEL INVESTMENT CREDIT. 

19 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

20 United States Vessel Investment credit for any taxable 

21 year is an amount equal to the applicable percentage of 

22 any qualified investment for such taxable year with respect 

23 to any qualified vessel. 

24 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

25 subsection (a), the applicable percentage with respect to 


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1 any qualified vessel shall be an amount equal to the sum 

2 of— 

3 ‘‘(1) 33 percent, plus 

4 ‘‘(2) in the case of any qualified vessel for 

5 which the owner of such vessel will, as part of the 

6 agreement described in subsection (d)(1)(F) and for 

7 the duration of such agreement, obtain protection 

8 and indemnity insurance with respect to such vessel 

9 from an insurance company that is domiciled and 

10 headquartered in the United States and is an under11 writer that is approved by the Maritime Adminis12 trator, 5 percent, plus 

13 ‘‘(3) in the case of any qualified vessel which is 

14 classified by and designed in accordance with the 

15 rules of the American Bureau of Shipping or any 

16 other classification society headquartered in the 

17 United States and recognized by the Secretary of 

18 the department in which the Coast Guard is oper19 ating in accordance with section 3316 of title 46, 

20 United States Code, 2 percent. 

21 ‘‘(c) QUALIFIED INVESTMENT.—For purposes of sub22 section (a), the qualified investment with respect to any 

23 qualified vessel is equal to the amount paid or incurred 

24 by the taxpayer in connection with the construction, 

25 repowering, or reconstruction of such vessel— 


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1 ‘‘(1) in a shipyard of the United States, and 

2 ‘‘(2) by an entity which is not a foreign entity 

3 of concern. 

4 ‘‘(d) QUALIFIED VESSEL.— 

5 ‘‘(1) IN GENERAL.—For purposes of this sec6 tion, the term ‘qualified vessel’ means a cargo ves7 sel— 

8 ‘‘(A) which is a United States flag vessel 

9 (as defined in section 1355), 

10 ‘‘(B) which, in the case of any repowering 

11 or reconstruction of such vessel, was originally 

12 constructed in the United States, 

13 ‘‘(C) which operates in providing transpor14 tation in the United States foreign trade (as 

15 such term is defined in section 1355(a)), 

16 ‘‘(D) which is not a passenger vessel, as 

17 defined in section 2101 of title 46, United 

18 States Code, 

19 ‘‘(E) which is— 

20 ‘‘(i) a bulk carrier vessel, 

21 ‘‘(ii) a tanker vessel, 

22 ‘‘(iii) a roll-on/roll-off vessel, 

23 ‘‘(iv) a container vessel, 

24 ‘‘(v) a multi-purpose vessel, 

25 ‘‘(vi) a cable vessel, 


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1 ‘‘(vii) a heavy-lift vessel, or 

2 ‘‘(viii) any other type of vessel deter3 mined appropriate by the Maritime Admin4 istrator, in consultation with the Maritime 

5 Security Board, 

6 ‘‘(F) which, pursuant to an agreement be7 tween the taxpayer and the Maritime Adminis8 trator, operates as a vessel of the United States 

9 for a period of not less than 10 years, and 

10 ‘‘(G) the construction of which begins be11 fore January 1, 2032. 

12 ‘‘(2) EXCLUSION RELATED TO FOREIGN ENTI13 TIES OF CONCERN.—The term ‘qualified vessel’ shall 

14 not include a vessel which— 

15 ‘‘(A) is, or was previously, owned or oper16 ated by a foreign entity of concern, 

17 ‘‘(B) was constructed, repowered, or recon18 structed in a shipyard which is owned or oper19 ated by a foreign entity of concern, or 

20 ‘‘(C) was registered as a vessel of a foreign 

21 country of concern at any time prior to being 

22 placed in service by the taxpayer. 

23 ‘‘(e) DEFINITIONS.— 

24 ‘‘(1) VESSELS.—For purposes of subsection 

25 (d)(1)(E), any term used in such paragraph which 


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1 is also used in chapter 536 of title 46, United States 

2 Code, shall have the same meaning as when used in 

3 such chapter. 

4 ‘‘(2) FOREIGN ENTITY OF CONCERN; FOREIGN

5 COUNTRY OF CONCERN.—For purposes of this sec6 tion, the terms ‘foreign entity of concern’ and ‘for7 eign country of concern’ have the same meaning 

8 given such terms under section 4 of the SHIPS for 

9 America Act of 2024. 

10 ‘‘(f) CERTAIN PROGRESS EXPENDITURE RULES

11 MADE APPLICABLE.—Rules similar to the rules of sub12 sections (c)(4) and (d) of section 46 (as in effect on the 

13 day before the date of the enactment of the Revenue Rec14 onciliation Act of 1990) shall apply for purposes of sub15 section (a). 

16 ‘‘(g) REGULATIONS.—The Secretary, in consultation 

17 with the Maritime Administrator, shall issue such regula18 tions or other guidance as may be necessary or appro19 priate to carry out the purposes of this section, including 

20 any regulations or guidance which may be necessary or 

21 appropriate to recapture the benefit of any credit deter22 mined under this section with respect to any qualified ves23 sel, or any increase in the applicable percentage under 

24 subsection (b) with respect to any qualified vessel, in the 

25 case of any taxpayer which fails to comply with the terms 


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1 of the agreement described in subsection (d)(1)(F) with 

2 respect to such qualified vessel.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Section 46 of the Internal Revenue Code of 

5 1986, as amended by section 13702(b)(1) of Public 

6 Law 117–169, is amended— 

7 (A) in paragraph (6), by striking ‘‘and’’ at 

8 the end, 

9 (B) in paragraph (7), by striking the pe10 riod at the end and inserting ‘‘, and’’, and 

11 (C) by adding at the end the following: 

12 ‘‘(8) the United States Vessel Investment cred13 it.’’. 

14 (2) Section 49(a)(1)(C) of such Code, as 

15 amended by section 13702(b)(2) of Public Law 117– 

16 169, is amended— 

17 (A) in clause (vii), by striking ‘‘and’’ at the 

18 end, 

19 (B) in clause (viii), by striking the period 

20 at the end and inserting ‘‘, and’’, and 

21 (C) by adding at the end the following: 

22 ‘‘(ix) with respect to any qualified ves23 sel (as defined in section 48F(d)), the por24 tion of the basis of such vessel attributable 

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1 payer in connection with the construction, 

2 repowering, or reconstruction of such ves3 sel.’’. 

4 (3) The table of sections for subpart E of part 

5 IV of subchapter A of chapter 1 of such Code is 

6 amended by inserting after the item relating to sec7 tion 48E the following new item: 

‘‘Sec. 48F. United States Vessel Investment credit.’’. 

8 (c) RECAPTURE FOR FAILURE TO OPERATE AS A

9 VESSEL OF THE UNITED STATES.—Section 50(a) of the 

10 Internal Revenue Code of 1986 is amended— 

11 (1) in paragraph (4), by striking ‘‘or any appli12 cable transaction to which paragraph (3)(A) applies’’ 

13 and inserting ‘‘any applicable transaction to which 

14 paragraph (3)(A) applies, or any violation to which 

15 paragraph (6)(A) applies’’, 

16 (2) by redesignating paragraph (6) as para17 graph (7), 

18 (3) by inserting after paragraph (5) the fol19 lowing new paragraph: 

20 ‘‘(6) FAILURE TO OPERATE QUALIFIED VESSEL

21 AS A VESSEL OF THE UNITED STATES.— 

22 ‘‘(A) IN GENERAL.—If an applicable tax23 payer violates any of the requirements of the 

24 agreement described in section 48F(d)(1)(F) 

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1 spect to any investment credit property which is 

2 eligible for the United States Vessel Investment 

3 credit under section 48F(a), then the tax under 

4 this chapter for the taxable year in which such 

5 violation occurs shall be increased by 100 per6 cent of the aggregate decrease in the credits al7 lowed under section 38 for all prior taxable 

8 years which would have resulted solely from re9 ducing to zero any credit determined under sec10 tion 46 which is attributable to the United 

11 States Vessel Investment credit under section 

12 48F(a) with respect to such property. 

13 ‘‘(B) EXCEPTION.—Subparagraph (A) 

14 shall not apply if the applicable taxpayer dem15 onstrates to the satisfaction of the Secretary 

16 and the Maritime Administrator that the tax17 payer is in compliance with the agreement de18 scribed in section 48F(d)(1)(F) within 30 days 

19 of a determination and notice by the Secretary. 

20 ‘‘(C) REGULATIONS AND GUIDANCE.—The 

21 Secretary shall issue such regulations or other 

22 guidance as the Secretary determines necessary 

23 or appropriate to carry out the purposes of this 

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1 keeping or information reporting for purposes 

2 of administering the requirements of this para3 graph.’’, and 

4 (4) in paragraph (7) (as redesignated by para5 graph (2))— 

6 (A) in subparagraph (C), by striking ‘‘or 

7 (3)’’ and inserting ‘‘(3), or (4)’’, and 

8 (B) by striking subparagraph (E) and in9 serting the following: 

10 ‘‘(E) APPLICABLE TAXPAYER.—For pur11 poses of this subsection, the term ‘applicable 

12 taxpayer’ means any taxpayer who has been al13 lowed— 

14 ‘‘(i) for purposes of paragraph (3), a 

15 credit under section 48D(a) for any prior 

16 taxable year, or 

17 ‘‘(ii) for purposes of paragraph (6), a 

18 credit under section 48F(a) for any prior 

19 taxable year.’’. 

20 (d) ELECTIVE PAYMENT AND TRANSFER OF CRED21 IT.— 

22 (1) ELECTIVE PAYMENT.—Section 6417 of the 

23 Internal Revenue Code of 1986 is amended— 

24 (A) in subsection (b), by adding at the end 

25 the following: 


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1 ‘‘(13) The United States Vessel Investment 

2 credit under section 48F.’’, and 

3 (B) in subsection (d)(1)— 

4 (i) in subparagraph (E), by striking 

5 ‘‘(C), or (D)’’ each place it appears and in6 serting ‘‘(C), (D), or (E)’’, 

7 (ii) by redesignating subparagraph 

8 (E) (as amended by clause (i)) as subpara9 graph (F), and 

10 (iii) by inserting after subparagraph 

11 (D) the following: 

12 ‘‘(E) ELECTION WITH RESPECT TO

13 UNITED STATES VESSEL INVESTMENT CRED14 IT.—If a taxpayer other than an entity de15 scribed in subparagraph (A) makes an election 

16 under this subparagraph with respect to any 

17 taxable year in which such taxpayer has made 

18 a qualified investment with respect to any quali19 fied vessel (as defined in section 48F), such 

20 taxpayer shall be treated as an applicable entity 

21 for purposes of this section for such taxable 

22 year, but only with respect to the credit de23 scribed in subsection (b)(13).’’. 


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1 (2) TRANSFER.—Section 6418(f)(1)(A) of the 

2 Internal Revenue Code of 1986 is amended by add3 ing at the end the following: 

4 ‘‘(xii) The United States Vessel In5 vestment credit under section 48F.’’. 

6 (e) EXCEPTION RELATING TO ALTERNATIVE TAX ON

7 QUALIFYING SHIPPING ACTIVITIES.—Section 1357(c) of 

8 the Internal Revenue Code of 1986 is amended— 

9 (1) in paragraph (1), by striking ‘‘paragraph 

10 (2)’’ and inserting ‘‘paragraph (2) or (4)’’, and 

11 (2) by adding at the end the following: 

12 ‘‘(4) EXCEPTION FOR UNITED STATES VESSEL

13 INVESTMENT CREDIT.—Paragraph (1) shall not 

14 apply with respect to any credit allowed to the tax15 payer under section 48F.’’. 

16 (f) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to property placed in service after 

18 December 31, 2024. 

19 SEC. 703. CERTAIN PAYMENTS FOR MARITIME SECURITY 

20 EXCLUDED FROM GROSS INCOME. 

21 (a) IN GENERAL.—Part III of subchapter B of chap22 ter 1 of the Internal Revenue Code of 1986 is amended 

23 by inserting after section 139I the following new sub24 section: 


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1 ‘‘SEC. 139J. MARITIME SECURITY PAYMENTS. 

2 ‘‘(a) IN GENERAL.—Gross income shall not include 

3 any payment made pursuant to— 

4 ‘‘(1) section 53106 of title 46, United States 

5 Code, 

6 ‘‘(2) section 53801 of such title, 

7 ‘‘(3) section 53206 of such title, 

8 ‘‘(4) section 53406 of such title, 

9 ‘‘(5) section 53604 of such title, 

10 ‘‘(6) section 54101 of such title, or 

11 ‘‘(7) section 54301 of such title. 

12 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—No deduction 

13 or credit shall be allowed for, or by reason of, any expendi14 ture to the extent of the amount excluded under sub15 section (a) for any payment which was provided with re16 spect to such expenditure. The adjusted basis of any prop17 erty shall be reduced by the amount excluded under sub18 section (a) which was provided with respect to such prop19 erty.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for part III of subchapter B of chapter 1 of such Code 

22 is amended by inserting after the item relating to section 

23 139I the following new item: 

‘‘Sec. 139J. Maritime security payments.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 704. ELIMINATION OF 30-DAY LIMITATION ON DOMES5 TIC OPERATIONS. 

6 (a) IN GENERAL.—Section 1355 of the Internal Rev7 enue Code of 1986 is amended— 

8 (1) in subsection (f), by striking paragraph (4), 

9 and 

10 (2) in subsection (g)(2), by striking subpara11 graph (D). 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 the date of enactment of this Act. 

15 SEC. 705. QUALIFYING SHIPPING ACTIVITIES. 

16 Section 1356(b) of the Internal Revenue Code of 

17 1986 (relating to qualifying shipping activities) is amend18 ed by striking ‘‘activities in operating’’ and inserting ‘‘the 

19 carriage of goods (as defined in section 1 of the Carriage 

20 of Goods by Sea Act (46 U.S.C. 30701 note)) by’’. 

21 SEC. 706. QUALIFYING VESSEL. 

22 Section 1355(a) of the Internal Revenue Code of 

23 1986 is amended— 

24 (1) by striking paragraph (4) and inserting the 

25 following: 


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1 ‘‘(4) QUALIFYING VESSEL.—The term ‘quali2 fying vessel’ means a vessel which is— 

3 ‘‘(A) self-propelled (or a combination self4 propelled and non-self-propelled), 

5 ‘‘(B) a United States flag vessel or a 

6 United States-owned foreign flag vessel, 

7 ‘‘(C) not less than 6,000 deadweight tons, 

8 and 

9 ‘‘(D) used exclusively in the United States 

10 foreign trade during the period that the election 

11 under this subchapter is in effect.’’, and 

12 (2) by adding at the end the following: 

13 ‘‘(8) UNITED STATES-OWNED FOREIGN FLAG

14 VESSEL.—The term ‘United States-owned foreign 

15 flag vessel’ means any vessel which— 

16 ‘‘(A) is documented under the laws of a 

17 country (other than the United States) or a for18 eign registry which is not a foreign country of 

19 concern (as defined by section 4 of the SHIPS 

20 for America Act of 2024), 

21 ‘‘(B) is owned by a person which— 

22 ‘‘(i)(I) is a citizen of the United 

23 States (as determined under section 50501 

24 of title 46, United States Code), or 


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1 ‘‘(II) is controlled (within the meaning 

2 of section 954(d)(3)) by a citizen of the 

3 United States (as so determined), and 

4 ‘‘(ii) owns a fleet of United States 

5 flag vessels, and 

6 ‘‘(C) has in effect a Voluntary Intermodal 

7 Sealift Agreement or Voluntary Tanker Agree8 ment with the Maritime Administrator.’’. 

9 SEC. 707. CREDIT FOR CONSTRUCTION OF SHIPYARD FA10 CILITIES. 

11 (a) IN GENERAL.—Subpart E of part IV of sub12 chapter A of chapter 1 of the Internal Revenue Code of 

13 1986, as amended by section 702(a), is amended by insert14 ing after section 48F the following new section: 

15 ‘‘SEC. 48G. CREDIT FOR CONSTRUCTION OF SHIPYARD FA16 CILITIES. 

17 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

18 shipyard investment tax credit for any taxable year is an 

19 amount equal to 25 percent of the qualified investment 

20 for such taxable year with respect to any qualified ship21 yard facility of a taxpayer described in section 48D(c)(1). 

22 ‘‘(b) QUALIFIED INVESTMENT.— 

23 ‘‘(1) IN GENERAL.—For purposes of subsection 

24 (a), the qualified investment with respect to any 

25 qualified shipyard facility for any taxable year is the 


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1 basis of any qualified property placed in service by 

2 the taxpayer during such taxable year which is part 

3 of a qualified shipyard facility. 

4 ‘‘(2) QUALIFIED PROPERTY.—The term ‘quali5 fied property’ shall have the same meaning given 

6 such term in section 48D(b)(2), except that subpara7 graph (A)(iv) of such section shall be applied by sub8 stituting ‘qualified shipyard facility’ for ‘advanced 

9 manufacturing facility’. 

10 ‘‘(3) QUALIFIED SHIPYARD FACILITY.—For 

11 purposes of this section, the term ‘qualified shipyard 

12 facility’ means a facility— 

13 ‘‘(A) which is located within the United 

14 States (including any territory or possession of 

15 the United States), and 

16 ‘‘(B) for which the primary purpose is— 

17 ‘‘(i) constructing or repairing commer18 cial or military oceangoing vessels, 

19 ‘‘(ii) manufacturing components which 

20 are critical (as determined by the Sec21 retary, in consultation with the Secretary 

22 of the Navy and the Maritime Adminis23 trator) to the operation of commercial or 

24 military oceangoing vessels, or 


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1 ‘‘(iii) manufacturing equipment which 

2 is used to produce or repair commercial or 

3 military oceangoing vessels. 

4 ‘‘(4) CERTAIN PROGRESS EXPENDITURE RULES

5 MADE APPLICABLE.—Rules similar to the rules of 

6 subsections (c)(4) and (d) of section 46 (as in effect 

7 on the day before the date of the enactment of the 

8 Revenue Reconciliation Act of 1990) shall apply for 

9 purposes of subsection (a). 

10 ‘‘(c) DENIAL OF DOUBLE BENEFIT.—This section 

11 shall not apply to any property placed in service by the 

12 taxpayer during the taxable year if a credit was allowed 

13 under section 48F to such taxpayer during such taxable 

14 year. 

15 ‘‘(d) REGULATIONS.—The Secretary shall issue such 

16 regulations or other guidance as may be necessary or ap17 propriate to carry out the purposes of this section. 

18 ‘‘(e) TERMINATION OF CREDIT.—The credit allowed 

19 under this section shall not apply to property placed in 

20 service after December 31, 2031.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 46 of the Internal Revenue Code of 

23 1986, as amended by section 702(b)(1), is amend24 ed— 


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1 (A) in paragraph (7), by striking ‘‘and’’ at 

2 the end, 

3 (B) in paragraph (8), by striking the pe4 riod at the end and inserting ‘‘, and’’, and 

5 (C) by adding at the end the following: 

6 ‘‘(9) the shipyard investment tax credit.’’. 

7 (2) Section 49(a)(1)(C) of such Code, as 

8 amended by section 702(b)(2), is amended— 

9 (A) in clause (viii), by striking ‘‘and’’ at 

10 the end, 

11 (B) in clause (ix), by striking the period at 

12 the end and inserting ‘‘, and’’, and 

13 (C) by adding at the end the following: 

14 ‘‘(x) the basis of any qualified prop15 erty (as defined in subsection (b)(2) of sec16 tion 48G) which is part of a qualified ship17 yard facility (as defined in subsection 

18 (b)(3) of such section).’’. 

19 (3) Section 50(a)(2)(E) of such Code, as 

20 amended by section 13702(b) of Public Law 117– 

21 169, is amended by striking ‘‘or 48E(e)’’ and insert22 ing ‘‘48E(e), or 48G(b)(4)’’. 

23 (4) The table of sections for subpart E of part 

24 IV of subchapter A of chapter 1 of such Code, as 

25 amended by section 702(b)(3), is amended by insertVerDate Sep 11 2014 22:09 Feb 04, 2025 Jkt 059200 PO 00000 Frm 00335 Fmt 6652 Sfmt 6201 E:\BILLS\H10493.IH H10493

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1 ing after the item relating to section 48F the fol2 lowing new item: 

‘‘Sec. 48G. Shipyard investment tax credit.’’. 

3 (c) ELECTIVE PAYMENT AND TRANSFER OF CRED4 IT.— 

5 (1) ELECTIVE PAYMENT.—Section 6417 of the 

6 Internal Revenue Code of 1986, as amended by sec7 tion 702, is amended— 

8 (A) in subsection (b), by adding at the end 

9 the following: 

10 ‘‘(14) The shipyard investment tax credit under 

11 section 48G.’’, and 

12 (B) in subsection (d)(1)— 

13 (i) in subparagraph (F), by striking 

14 ‘‘(D), or (E)’’ each place it appears and in15 serting ‘‘(D), (E), or (F)’’, 

16 (ii) by redesignating subparagraph 

17 (F) (as amended by clause (i)) as subpara18 graph (G), and 

19 (iii) by inserting after subparagraph 

20 (E) the following: 

21 ‘‘(F) ELECTION WITH RESPECT TO THE

22 SHIPYARD INVESTMENT TAX CREDIT.—If a tax23 payer other than an entity described in sub24 paragraph (A) makes an election under this 

25 subparagraph with respect to any taxable year 


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1 in which such taxpayer has placed in service 

2 any qualified property which is part of a quali3 fied shipyard facility (as defined in section 

4 48G), such taxpayer shall be treated as an ap5 plicable entity for purposes of this section for 

6 such taxable year, but only with respect to the 

7 credit described in subsection (b)(14).’’. 

8 (2) TRANSFER.—Section 6418(f)(1)(A) of the 

9 Internal Revenue Code of 1986, as amended by sec10 tion 702, is amended by adding at the end the fol11 lowing: 

12 ‘‘(xiii) The shipyard investment tax 

13 credit under section 48G.’’. 

14 (d) EXCEPTION RELATING TO ALTERNATIVE TAX ON

15 QUALIFYING SHIPPING ACTIVITIES.—Paragraph (4) of 

16 section 1357(c) of the Internal Revenue Code of 1986, as 

17 added by section 702(e), is amended to read as follows: 

18 ‘‘(4) EXCEPTION FOR UNITED STATES VESSEL

19 INVESTMENT CREDIT AND SHIPYARD INVESTMENT

20 TAX CREDIT.—Paragraph (1) shall not apply with 

21 respect to any credit allowed to the taxpayer under 

22 section 48F or 48G.’’. 

23 (e) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to property placed in service after 

25 December 31, 2024. 


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1 SEC. 708. TAX INCENTIVES RELATING TO MERCHANT MA2 RINE CAPITAL CONSTRUCTION FUNDS. 

3 (a) IN GENERAL.—Section 7518 of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) in subsection (a)— 

6 (A) by striking paragraph (1) and insert7 ing the following: 

8 ‘‘(1) IN GENERAL.—The amount deposited in a 

9 fund established under chapter 535 of title 46 of the 

10 United States Code (hereinafter in this section re11 ferred to as a ‘capital construction fund’) for a tax12 able year may not exceed the amount specified in the 

13 agreement under section 53503(a) of such title, 

14 which shall be an amount that is related to a com15 mitment to invest the revenue from the capital con16 struction fund into funding the construction of new 

17 vessels or funding cargo handling equipment.’’, 

18 (B) in paragraph (2), by striking ‘‘para19 graph (1)(B)’’ each place it appears and insert20 ing ‘‘paragraph (1)’’, and 

21 (C) by adding at the end the following new 

22 paragraph: 

23 ‘‘(4) REVENUE.—For the purposes of para24 graph (1), the revenue from the capital construction 

25 fund may include— 


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1 ‘‘(A) income attributable to the operation 

2 of any agreement vessel in foreign commerce or 

3 domestic trade or fisheries or the operation of 

4 a marine terminal in the United States, 

5 ‘‘(B) the net proceeds from the disposition 

6 of an agreement vessel or cargo handling equip7 ment or insurance or indemnity attributable to 

8 the vessel or cargo handling equipment, 

9 ‘‘(C) the receipts from the investment or 

10 reinvestment of amounts held in the fund, and 

11 ‘‘(D) the amount allowable as a deduction 

12 under section 167 for the taxable year with re13 spect to the agreement vessels or cargo han14 dling equipment.’’, 

15 (2) in subsection (b)(2), by striking ‘‘Amounts 

16 in any capital construction fund’’ and all that fol17 lows through ‘‘(not in excess of 60 percent)’’ and in18 serting ‘‘An agreed percentage’’, 

19 (3) in subsection (e)— 

20 (A) by striking paragraph (1) and insert21 ing the following: 

22 ‘‘(1) IN GENERAL.—A qualified withdrawal 

23 from the fund is one made in accordance with the 

24 terms of the agreement but only if it is for— 


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1 ‘‘(A) the acquisition, construction, 

2 repowering, or reconstruction of— 

3 ‘‘(i) a qualified vessel or a barge or 

4 container that is part of the complement of 

5 a qualified vessel, or 

6 ‘‘(ii) cargo handling equipment, or 

7 ‘‘(B) the payment of the principal on in8 debtedness incurred in the acquisition, con9 struction, repowering, or reconstruction of— 

10 ‘‘(i) a qualified vessel or a barge or 

11 container that is part of the complement of 

12 a qualified vessel, or 

13 ‘‘(ii) cargo handling equipment. 

14 Except to the extent provided in regulations 

15 prescribed by the Secretary, subparagraph (A), 

16 and so much of subparagraph (B) as relates 

17 only to barges and containers, shall apply only 

18 with respect to barges and containers con19 structed in the United States.’’, 

20 (B) by redesignating paragraph (2) as 

21 paragraph (4), and 

22 (C) by inserting after paragraph (1) the 

23 following: 

24 ‘‘(2) FULLY AUTOMATED CARGO HANDLING

25 EQUIPMENT.—No withdrawals may be made from a 


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1 capital construction fund to purchase fully auto2 mated cargo handling equipment that is remotely 

3 operated or remotely monitored with or without the 

4 exercise of human intervention or control, if the Sec5 retary determines such equipment would result in a 

6 net loss of jobs within a marine terminal. 

7 ‘‘(3) PROHIBITION ON PEOPLE’S REPUBLIC OF

8 CHINA CRANES.—No withdrawals may be made from 

9 a capital construction fund to purchase cranes man10 ufactured in the People’s Republic of China.’’, 

11 (4) in subsection (f)— 

12 (A) in paragraph (2), by inserting ‘‘cargo 

13 handling equipment,’’ after ‘‘barge,’’ both 

14 places the term appears, 

15 (B) in paragraph (3), by inserting ‘‘cargo 

16 handling equipment,’’ after ‘‘barge,’’ both 

17 places the term appears, and 

18 (C) in paragraph (4), by inserting ‘‘cargo 

19 handling equipment,’’ after ‘‘barges,’’, 

20 (5) in subsection (g)— 

21 (A) in the flush matter at the end of para22 graph (2), by inserting ‘‘cargo handling equip23 ment,’’ after ‘‘advanced’’, and 

24 (B) in paragraph (5)(A)— 


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1 (i) in the heading, by striking ‘‘25

2 YEARS’’ and inserting ‘‘15 YEARS’’, 

3 (ii) by striking ‘‘26th, 27th, 28th, 

4 29th, or 30th taxable year’’ and inserting 

5 ‘‘following specified taxable year’’, and 

6 (iii) by striking the table contained 

7 therein and inserting the following: 

‘‘If the amount remains in the 

fund at the close of theThe applicable percentage is16th taxable year .........................................................................20 percent

17th taxable year .........................................................................40 percent

18th taxable year .........................................................................60 percent

19th taxable year .........................................................................80 percent

20th taxable year ......................................................................... 100 percent’’, 

8 and 

9 (6) in subsection (i), by striking ‘‘as in effect on 

10 the date of the enactment of this section’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2024. 

14 SEC. 709. EXEMPTION OF STUDENT INCENTIVE PAYMENT 

15 AGREEMENTS FROM GROSS INCOME. 

16 (a) IN GENERAL.—Part III of subchapter B of chap17 ter 1 of the Internal Revenue Code of 1986, as amended 

18 by section 703, is further amended by inserting after sec19 tion 139J the following new section: 

20 ‘‘SEC. 139K. STUDENT INCENTIVE PAYMENT AGREEMENTS. 

21 ‘‘In the case of an individual who has entered into 

22 an agreement described in section 51509 of title 46, 


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1 United States Code, gross income does not include any 

2 student incentive payments made to such individual pursu3 ant to such agreement.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 for part III of subchapter B of chapter 1 of the Internal 

6 Revenue Code of 1986, as amended by section 703, is fur7 ther amended by inserting after the item relating to sec8 tion 139J the following new item: 

‘‘Sec. 139K. Student incentive payment agreements.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply with respect to payments made 

11 after December 31, 2024. 

12 SEC. 710. MARITIME FUEL TAX PARITY. 

13 Section 4041(g) of the Internal Revenue Code of 

14 1986 is amended by adding at the end the following new 

15 sentence: ‘‘For purposes of subsection (a)(2), the exemp16 tion under paragraph (1) shall also apply to fuel sold for 

17 use or used by a vessel which is both described in section 

18 4042(c)(1) and actually engaged in trade between the At19 lantic (including the Gulf of Mexico) or Pacific ports of 

20 the United States (including any territory or possession 

21 of the United States).’’. 

Æ 


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