I 
119TH CONGRESS 
1ST SESSION H. R. 3151 
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 
MAY 1, 2025 
Mr. KELLY of Mississippi (for himself, Mr. GARAMENDI, Mr. WITTMAN, Mr. 
NORCROSS, Mr. HIGGINS of Louisiana, Mr. KHANNA, Ms. ELFRETH, Mr. 
DESJARLAIS, Mr. MCCORMICK, Mr. KRISHNAMOORTHI, Mr. RUTHER-
FORD, Mr. GOODEN, Mr. LALOTA, Ms. PINGREE, Ms. HOYLE of Oregon, 
Mr. MESSMER, Mr. HARIDOPOLOS, Mrs. KIGGANS of Virginia, Mr. 
FIELDS, Mr. CARTER of Louisiana, Mr. DELUZIO, Mr. MOSKOWITZ, Mr. 
BERA, Ms. SCANLON, Mr. HARRIGAN, Mr. GOLDEN of Maine, Mr. 
BERGMAN, Mr. FALLON, Mr. VAN ORDEN, Mr. WIED, Ms. TOKUDA, Mr. 
MOORE of Alabama, Mr. FITZPATRICK, Ms. SCHOLTEN, Mr. MOORE of 
North Carolina, Mr. STRONG, Mr. LUTTRELL, and Mr. ZINKE) intro-
duced the following bill; which was referred to the Committee on Armed 
Services, and in addition to the Committees on Transportation and Infra-
structure, Ways and Means, Energy and Commerce, Foreign Affairs, 
Oversight and Government Reform, Education and Workforce, Financial 
Services, the Judiciary, Natural Resources, Science, Space, and Tech-
nology, 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 ship-
yards of the United States and the U.S. maritime work-
force. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Shipbuilding and Harbor Infrastructure for Prosperity 
and Security for America Act of 2025’’ or the ‘‘SHIPS 
for America Act of 2025’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Sense of Congress. 
Sec. 4. Definitions. 
TITLE I—OVERSIGHT AND ACCOUNTABILITY 
Sec. 101. Maritime Security Advisor; Maritime Security Board. 
Sec. 102. Maritime Transportation System National Advisory Committee. 
Sec. 103. Direct hire authority; Authorization for administrative expenses. 
Sec. 104. Implementation plan. 
Sec. 105. Federal Maritime Commission report on vessels of the United States. 
TITLE II—MARITIME SECURITY TRUST FUND 
Sec. 201. Maritime Security Trust Fund established. 
Sec. 202. Regular tonnage taxes. 
Sec. 203. 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. Fleet testing and briefing requirement. 
Sec. 403. Assessment of undersea cable repair contingencies. 
Sec. 404. Modification to duties relating to equipment and repair of vessels. 
Subtitle B—Cargo Preference 
Sec. 411. United States Government cargo. 
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Sec. 412. Cargo preference implementation regulations. 
Sec. 413. Cargo preference oversight and audit. 
Sec. 414. Financing the transportation of agricultural products and other 
cargo. 
Sec. 415. Importation from China on American ships. 
Sec. 416. Priority for vessels of the United States. 
Sec. 417. Moving cargo on vessels of the United States. 
Sec. 418. Transportation requirements for certain exports sponsored by the 
Secretary of Agriculture. 
Sec. 419. Clarifying amendments. 
Sec. 420. Energizing American shipbuilding. 
Sec. 421. Goods imported on vessels of the United States. 
Sec. 422. 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 ship-
building. 
Sec. 512. Plan of action for use of Defense Production Act of 1950 authorities. 
Sec. 513. 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 maritime 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. 
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Sec. 605. Noncompetitive eligibility for Federal employment. 
Sec. 606. United States Merchant Marine Career Retention Program. 
Subtitle B—Workforce Pipeline 
Sec. 611. Maritime workforce promotion and recruitment. 
Sec. 612. Centers of Excellence for Domestic Maritime Workforce Training and 
Education. 
Sec. 613. Maritime Career and Technical Education Advisory Committee. 
Sec. 614. Military candidates to Mariner Careers Recruitment Exchange. 
Sec. 615. Maritime worker data collection. 
Sec. 616. Military to maritime transition. 
Sec. 617. Early maritime education and youth involvement. 
Sec. 618. International scholarship for mariner and naval architecture ex-
changes. 
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. Enforcement of service obligation requirements. 
Sec. 626. Fuel funding for training ships operated by State maritime acad-
emies. 
Sec. 627. State Maritime Academy Sea Term Scholarship Programs. 
Sec. 628. 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. Renewal of merchant mariner licenses and documents. 
Sec. 635. Merchant seamen licenses, certificates, and documents; manning of 
vessels. 
Sec. 636. Reactivation of expired license. 
TITLE VII—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 
1986 
Sec. 701. United States Vessel Investment credit. 
Sec. 702. Certain payments for maritime security excluded from gross income. 
Sec. 703. Elimination of 30-day limitation on domestic operations. 
Sec. 704. Qualifying shipping activities. 
Sec. 705. Qualifying vessel. 
Sec. 706. Credit for construction of shipyard facilities. 
Sec. 707. Tax incentives relating to merchant marine capital construction 
funds. 
Sec. 708. Exemption of student incentive payment agreements from gross in-
come. 
Sec. 709. Maritime fuel tax parity. 
Sec. 710. Treatment of maritime prosperity zones as opportunity zones. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Strategic sealift, made up of Government 
and commercial vessels and mariners, is a critical 
capability for executing the maritime defense strat-
egy and the wartime and peacetime economy of the 
United States. 
(2) Ensuring a modern and ready capability 
will 
require 
significant 
investment, 
policy 
prioritization, and the innovation of the people of the 
United States. 
(3) The worldwide ocean economy is worth be-
tween $3,000,000,000,000 and $6,000,000,000,000, 
according to the United Nations Conference on 
Trade and Development. Yet, vessels of the United 
States carry less than 2 percent of United States 
international commercial cargoes by weight. 
(4) The United States has fewer than 200 
oceangoing vessels of the United States, of which 
only approximately 80 vessels participate in inter-
national commerce, compared with more than 5,500 
Chinese documented vessels. 
(5) Bracketed by the Atlantic, Pacific, and Arc-
tic oceans, the prosperity and security of the United 
States has always been tied to its position as a mari-
time Nation. Throughout human history, the 
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strength of maritime nations has been directly tied 
to the strength of their maritime industry. The 
United States won two world wars on the back of a 
strong maritime industry. 
(6) Decades of apathy by the United States 
Government has harmed our strategically important 
maritime industry. Our weakened shipbuilding ca-
pacity, undersized maritime workforce, and shrink-
ing fleet of shipping vessels means the United States 
relies on other nations to conduct international com-
merce and lacks the strategic sealift to support the 
United States military during wartime. 
(7) Today, there are just 20 shipbuilders in the 
United States capable of building oceangoing ves-
sels—down from more than 80 at the end of the 
Second World War. 
(8) During World War II, the United States 
Merchant Marine powered the Allies to victory with 
more than 10,000 oceangoing vessels of the United 
States. Today there are just 80 vessels of the United 
States engaged in international trade. 
(9) The People’s Republic of China has made 
investments in the maritime industry a strategic pri-
ority over the past 20 years. 
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(10) As of 2023, shipyards in the United States 
had fewer than 5 shipbuilding orders for oceangoing 
vessels, while shipyards in the People’s Republic of 
China had more than 1,700 orders, according to 
BRS Group. According to the Office of Naval Intel-
ligence, the People’s Republic of China became the 
world’s top shipbuilding and shipping nation, boast-
ing 230 times more shipbuilding capacity than the 
United States. 
(11) With just 12,000 United States merchant 
mariners operating oceangoing vessels, the United 
States may not have a sufficient number of mariners 
to fully power the strategic sealift vessels necessary 
in a future prolonged conflict. 
(12) The American Civil Society of Engineers 
assesses that the United States has a national main-
tenance backlog amounting to $125,000,000,000 for 
bridges, 
$163,000,000,000 
for 
ports, 
and 
$6,800,000,000 for inland waterways. 
(13) The maritime industry is inherently inter-
national. Eighty percent of United States goods are 
imported by sea, of which 98 percent come into the 
United States on foreign documented vessels. Only 2 
percent of such goods come into the United States 
on vessels of the United States, leaving the United 
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States economy disproportionately dependent on 
oceangoing trade controlled by often adversarial for-
eign nations. The Nation’s ability to provide services 
in both international and interstate commerce is 
critical to national and economic defense. 
(14) Since November 2023, vessels engaged in 
international commerce have been threatened by the 
Houthis, which has threatened global supply chains, 
increased costs, and required naval force protection 
operations in the Red Sea through the United 
States-led Operation Prosperity Guardian that 
formed in December 2023. 
(15) A fleet of commercial shipping vessels of 
the United States, crewed with citizen mariners, that 
is competitive in domestic and international trade 
enhances the United States military’s readiness, al-
lows the United States to more strategically compete 
with China, and underwrites the security and sur-
vival of the United States in times of crisis and war. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that the United States 
must— 
(1) create a more favorable domestic and global 
maritime environment for vessels of the United 
States engaged in international commerce, ship-
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building, ship repair, maritime logistics, the mari-
time workforce, and naval power, contributing to as-
sured access to the world’s oceans free from coercion 
from strategic competitors and asymmetric adver-
saries; 
(2) increase domestic shipbuilding and ship re-
pair capacity, with programs and policies that enable 
the growth of United States shipyards and the mari-
time industrial base, enhance military sealift capac-
ity, expand the United States maritime workforce, 
and enhance national security; 
(3) revitalize the international fleet of vessels of 
the United States and foster a comparative advan-
tage for the United States through targeted incen-
tives and regulatory reforms to make the fleet com-
petitive with international carriers and to gain a sus-
tainable share of the global maritime market in 
order to bolster supply chains, strengthen economic 
security, and lower prices, while protecting the 
United States economy from economic coercion; 
(4) take all measures necessary to ensure that 
sufficient military, civil, and commercial resources 
will be available with assured access to meet defense 
deployment needs and essential economic activities 
for our Nation in times of crisis, war, or peace; 
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(5) recognize that a vibrant commercial ship-
building industry provides supply chain resiliencies 
and creates economies of scale that improve military, 
Coast Guard, and Government shipbuilding and sup-
port military operations through strategic sealift to 
defend the freedom of the seas; 
(6) nurture the comparative advantages of the 
United States to innovate to better compete in the 
global maritime marketplace, grow the maritime 
workforce, and create a favorable environment for 
investments to build modern maritime facilities and 
world-class academic institutions; 
(7) ensure better coordination between Federal 
agencies, including the Maritime Administration, the 
United States Coast Guard, the Department of De-
fense, the Federal Maritime Commission, and all 
other Federal agencies with a maritime nexus, to 
protect, regulate, and support the United States 
maritime industry, resolve disputes, and implement 
a whole-of-Government national maritime strategy; 
(8) recognize that, while a strong Navy is the 
surest guarantee of peace, building the Navy, sus-
taining the Navy, and supplying the Navy is founded 
on a robust commercial industrial base; 
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(15) develop a whole-of-Government effort to 
expand, develop, and protect the maritime work-
force; 
(16) recognize the need for more workers in the 
maritime sector and stimulate growth in the United 
States maritime and shipbuilding industries, includ-
ing by increasing access to early maritime education, 
commissioning national marketing campaigns to 
demonstrate how United States shipbuilding, United 
States-documented shipping, and maritime workers 
are critical to national security, and implementing 
workforce accelerator programs; 
(17) remove barriers to training mariners, in-
cluding reevaluating Coast Guard training require-
ments regarding faculty credentials, instructional fa-
cility designs, sea time requirements, and other iden-
tified barriers, consistent with international treaty 
obligations; 
(18) expand and nurture a robust mariner 
workforce that enhances the national security and 
strategic sealift readiness of the United States by in-
creasing the number of United States mariners and 
improving existing pathways and establishing new 
pathways for new, current, and former merchant 
mariners to go to sea; 
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(19) recognize that the United States Merchant 
Marine Academy and our State maritime academies 
are critical to training the next generation of li-
censed officers and engineers on vessels of the 
United States; 
(20) invest and innovate in domestic ship-
building, ship repair, and the shipping capabilities 
and capacity of vessels of the United States to ad-
vance the power and influence of the maritime in-
dustry of the United States; 
(21) drive multi-stakeholder research, develop-
ment, assessment, and deployment of emerging ma-
rine technologies and best practices related to the 
maritime transportation system to ensure United 
States leadership in next-generation shipbuilding, 
ship repair, and maritime logistics; 
(22) drive modern business and manufacturing 
approaches, such as innovative maritime logistics, 
clean fuels, and advanced nuclear energy, human- 
machine teaming, additive manufacturing, and other 
advanced technologies; 
(23) review and update regulations governing 
vessel design and engineering, vessel and facility op-
eration, and merchant mariner credentialing, in 
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order to revitalize the United States maritime indus-
try; 
(24) seek mutually beneficial relationships with 
treaty allies and strategic partners to grow the do-
mestic shipping and shipbuilding industries of the 
United States and to share the burden of providing 
freedom of navigation on the high seas, while de- 
risking the United States maritime domain from the 
People’s Republic of China, foreign countries of con-
cern, and asymmetric or emerging maritime threats; 
(25) harden critical maritime infrastructure and 
networks, and incrementally replace infrastructure 
built by foreign adversaries with domestic-built and 
allied-built infrastructure; and 
(26) promote the values of the United States 
for freedom of the seas, worker safety and quality of 
life, environmental stewardship, and the resilience of 
our oceans, seas, and inland waterways. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) 
APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Commerce, Science, and Trans-
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portation, and the Committee on Appropria-
tions of the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Transportation and Infrastruc-
ture, and the Committee on Appropriations of 
the House of Representatives. 
(2) DOMESTIC COMMERCE.—The term ‘‘domes-
tic commerce’’ means the transportation of goods or 
passengers between places in the United States. 
(3) FOREIGN COMMERCE.—The term ‘‘foreign 
commerce’’ means— 
(A) commerce or trade between the United 
States, its territories or possessions, or the Dis-
trict of Columbia, and a foreign country; and 
(B) commerce or trade between foreign 
countries. 
(4) FOREIGN
COUNTRY
OF
CONCERN.—The 
term ‘‘foreign country of concern’’ means— 
(A) a country that is a covered nation (as 
defined in section 4872(d) of title 10, United 
States Code); and 
(B) any country that the Maritime Admin-
istrator, in consultation with the Secretary of 
Defense, the Secretary of State, the Director of 
National Intelligence, and the Chair of the Fed-
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eral Maritime Commission, determines to be en-
gaged in conduct that is detrimental to the na-
tional security or foreign policy of the United 
States. 
(5) FOREIGN ENTITY.—The term ‘‘foreign enti-
ty’’— 
(A) means— 
(i) a government of a foreign country 
or a foreign political party, as those terms 
are defined in section 1 of the Foreign 
Agents Registration Act of 1938, as 
amended (22 U.S.C. 611); 
(ii) a natural person who is not a law-
ful permanent resident of the United 
States, a citizen of the United States, or 
any other protected individual (as such 
term is defined in section 274B(a)(3) of 
the Immigration and Nationality Act (8 
U.S.C. 1324b(a)(3))); or 
(iii) a partnership, association, cor-
poration, organization, or other combina-
tion of persons organized under the laws of 
or having its principal place of business in 
a foreign country; and 
(B) includes— 
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(i) any person (including an owner or 
operator of a vessel) owned by, controlled 
by, or subject to the direction of an entity 
listed in subparagraph (A); 
(ii) any person, wherever located, who 
acts as an agent, representative, or em-
ployee of an entity listed in subparagraph 
(A); 
(iii) any person who acts in any other 
capacity at the order, request, or under the 
direction or control, of an entity listed in 
subparagraph (A), or of a person whose 
activities are directly or indirectly super-
vised, directed, controlled, financed, or 
subsidized in whole or in major part by an 
entity listed in subparagraph (A); 
(iv) any person who directly or indi-
rectly through any contract, arrangement, 
understanding, relationship, or otherwise, 
owns 25 percent or more of the equity in-
terests of an entity listed in subparagraph 
(A); 
(v) any person with significant re-
sponsibility to control, manage, or direct 
an entity listed in subparagraph (A); 
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(vi) any person, wherever located, who 
is a citizen or resident of a country con-
trolled by an entity listed in subparagraph 
(A); or 
(vii) any corporation, partnership, as-
sociation, or other organization organized 
under the laws of a country controlled by 
an entity listed in subparagraph (A). 
(6) FOREIGN ENTITY OF CONCERN.—The term 
‘‘foreign entity of concern’’ means any foreign entity 
that is— 
(A) designated as a foreign terrorist orga-
nization by the Secretary of State under section 
219 of the Immigration and Nationality Act (8 
U.S.C. 1189); 
(B) included on the list of specially des-
ignated nationals and blocked persons main-
tained by the Office of Foreign Assets Control 
of the Department of the Treasury; 
(C) owned by, controlled by, or subject to 
the jurisdiction or direction of a government of 
a foreign country of concern; 
(D) alleged by the Attorney General to 
have been involved in activities for which a con-
viction was obtained under— 
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(i) chapter 37 of title 18, United 
States Code (commonly known as the ‘‘Es-
pionage Act’’) (18 U.S.C. 792 et seq.); 
(ii) section 951 or 1030 of title 18, 
United States Code; 
(iii) chapter 90 of title 18, United 
States Code (commonly known as the 
‘‘Economic Espionage Act of 1996’’); 
(iv) the Arms Export Control Act (22 
U.S.C. 2751 et seq.); 
(v) section 224, 225, 226, 227, or 236 
of the Atomic Energy Act of 1954 (42 
U.S.C. 2274, 2275, 2276, 2277, and 
2284); 
(vi) the Export Control Reform Act of 
2018 (50 U.S.C. 4801 et seq.); or 
(vii) the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et 
seq.); 
(E) designated by the Federal Maritime 
Commission as a controlled carrier under chap-
ter 407 of title 46, United States Code; 
(F) found by the Federal Maritime Com-
mission to be practicing unfavorable conditions 
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in foreign trade under chapter 421 or 423 of 
title 46, United States Code; or 
(G) determined by the Maritime Adminis-
trator, in consultation with the Secretary of De-
fense, the Secretary of State, the Director of 
National Intelligence, and the Chair of the Fed-
eral Maritime Commission, to be engaged in un-
authorized conduct that is detrimental to the 
national security or foreign policy of the United 
States. 
(7) VESSEL
OF
THE
UNITED
STATES.—The 
term ‘‘vessel of the United States’’ has the meaning 
given that term in section 116 of title 46, United 
States Code. 
TITLE I—OVERSIGHT AND 
ACCOUNTABILITY 
SEC. 101. MARITIME SECURITY ADVISOR; MARITIME SECU-
RITY BOARD. 
(a) AMENDMENTS.—Chapter 504 of part A of sub-
title V of title 46, United States Code, is amended— 
(1) by striking the chapter heading and insert-
ing the following: ‘‘OVERSIGHT AND AC-
COUNTABILITY’’; 
(2) by redesignating section 50401 as section 
50403; and 
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(3) by inserting before section 50402, the fol-
lowing: 
‘‘§ 50401. Maritime Security Advisor; Maritime Secu-
rity Board 
‘‘(a) MARITIME SECURITY ADVISOR.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after the date of enactment of this section, the 
President shall appoint a Special Advisor to the 
President (to be known as the ‘Maritime Security 
Advisor’) for coordinating national maritime affairs 
and policy, including developing, updating, and im-
plementing the National Maritime Strategy as re-
quired under section 50114 of this title. 
‘‘(2) DUTIES.—The Maritime Security Advisor 
appointed under paragraph (1) shall serve as the 
Chair of the Maritime Security Board, shall be the 
principal advisor to the President on all issues re-
lated to the maritime industry, shipbuilding, and 
ship repair, and shall be responsible for developing, 
updating, and implementing the National Maritime 
Strategy under section 50114 of this title within and 
across the Federal Government. 
‘‘(3) OFFICE OF THE MARITIME SECURITY AD-
VISOR.— 
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‘‘(A) IN GENERAL.—There is established in 
the Executive Office of the President, an Office 
of the Maritime Security Advisor. The Maritime 
Security Advisor described in this subsection 
shall be the head of such Office. 
‘‘(B) EMPLOYEES; CONTRACTS.—In car-
rying out the functions under this section, the 
Maritime Security Advisor is authorized to— 
‘‘(i) appoint such officers and employ-
ees as the Maritime Security Advisor may 
deem necessary to perform the functions 
now or hereafter vested in the Maritime 
Security Advisor and to prescribe their du-
ties; and 
‘‘(ii) enter into contracts and other 
arrangements for studies, analyses, and 
other services with public agencies and 
with private persons, organizations, or in-
stitutions, and make such payments as the 
Maritime Security Advisor deems necessary 
to carry out the provisions of this section. 
‘‘(b) MARITIME SECURITY BOARD.—Not later than 
90 days after the date of enactment of this section, the 
President shall establish a board, to be known as the ‘Mar-
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itime Security Board’ (in this section referred to as the 
‘Board’). 
‘‘(1) COMPOSITION.— 
‘‘(A) IN GENERAL.—The Board shall be 
comprised of the following individuals and rep-
resentatives: 
‘‘(i) The Maritime Security Advisor 
described in subsection (a). 
‘‘(ii) The Maritime Administrator. 
‘‘(iii) The Commandant of the Coast 
Guard. 
‘‘(iv) The Secretary of the Navy. 
‘‘(v) The Commander of the United 
States Transportation Command. 
‘‘(vi) The Chair of the Federal Mari-
time Commission. 
‘‘(vii) The Assistant Secretary of the 
Army for Civil Works. 
‘‘(viii) The chief United States dele-
gate to the International Maritime Organi-
zation. 
‘‘(ix) The Under Secretary of Com-
merce for Oceans and Atmosphere. 
‘‘(x) The Commissioner for Customs 
and Border Protection. 
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‘‘(A) Supporting the development of the 
marine transportation system of the United 
States, including— 
‘‘(i) assessing the adequacy of the ma-
rine 
transportation 
system 
(including 
ports, waterways, channels, and their inter-
modal connections); 
‘‘(ii) promoting the integration of the 
marine transportation system with other 
modes of transportation and other uses of 
the marine environment; and 
‘‘(iii) coordinating, improving the co-
ordination of, and making recommenda-
tions with regard to Federal policies that 
impact the marine transportation system. 
‘‘(B) Establishing policy priorities relating 
to, and conducting independent oversight over, 
the financial assistance programs under part C 
of subtitle V of this title, including— 
‘‘(i) not later than 1 year after the 
date of enactment of the SHIPS for Amer-
ica Act of 2025 and annually thereafter, 
establishing targets for the number, type, 
and requirements of vessels to be included 
in each of— 
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‘‘(I) the Maritime Security Fleet 
(consistent with the most recent Mo-
bility Capability Requirements Study 
produced by United States Transpor-
tation Command); 
‘‘(II) the Cable Security Fleet; 
‘‘(III) the Tanker Security Fleet 
(consistent with the most recent Mo-
bility Capability Requirements Study 
produced by United States Transpor-
tation Command); 
‘‘(IV) the Strategic Commercial 
Fleet; and 
‘‘(V) the Shipbuilding Financial 
Incentives Program; 
‘‘(ii) submitting annual recommenda-
tions to the appropriate committees of 
Congress for any needed changes in the 
authorized number of vessels eligible to 
participate in the programs under part C 
of subtitle V of this title; and 
‘‘(iii) conducting oversight of the ad-
ministration of such financial assistance 
programs to ensure such programs support 
the strategic sealift objectives and policy of 
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the United States, as established in section 
59101 of this title. 
‘‘(C) Supporting the Maritime Adminis-
trator in all efforts to conduct independent 
oversight of passenger and cargo preference re-
quirements and supporting efforts to enable 
cargo to be carried on vessels of the United 
States, including— 
‘‘(i) conducting oversight and coordi-
nating interagency efforts to comply with 
cargo preference requirements established 
under chapter 553 of this title and section 
2631 of title 10; 
‘‘(ii) independently verifying that all 
Federal agencies follow the requirements 
for cargoes procured, furnished, or fi-
nanced by the United States Government 
under section 55305 of this title, and noti-
fying the appropriate committees of Con-
gress of any identified violations of the re-
quirements of such section; 
‘‘(iii) conducting outreach among non-
governmental stakeholders, including pri-
vate industry, to encourage more cargo to 
be moved on vessels of the United States; 
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‘‘(iv) developing recommendations for 
regulations to be issued by Federal agen-
cies to preference the movement of cargo 
on vessels of the United States; and 
‘‘(v) submitting recommendations to 
the appropriate committees of Congress for 
changes to laws relating to passenger and 
cargo preferences for the purpose of estab-
lishing a more robust fleet of vessels of the 
United States. 
‘‘(D) Conducting independent oversight 
and developing guidance and recommendations 
related to the enforcement of the requirements 
of chapters 121 and 551 of this title. 
‘‘(E) Coordinating national efforts to de-
velop a robust maritime workforce that en-
hances the national security and strategic sea-
lift readiness of the United States, including— 
‘‘(i) coordinating and conducting over-
sight of interagency efforts and partner-
ships with the maritime industry and 
qualified labor organizations to recruit, 
train, and retain qualified licensed and un-
licensed merchant mariners; and 
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‘‘(ii) coordinating and conducting 
oversight of interagency efforts and part-
nerships with the shipbuilding industry to 
recruit, train, and retain qualified workers 
in the shipbuilding industry of the United 
States. 
‘‘(F) Establishing national priorities for re-
search and development of next-generation tech-
nologies to enhance United States leadership in 
the shipbuilding and maritime industries, in-
cluding through the Center for Maritime Inno-
vation established under section 50307. 
‘‘(G) Coordinating interagency efforts to 
ensure vessels of the United States operating in 
international commerce are privileged in regula-
tion, taxation, fees, insurance, and policy com-
pared to foreign vessels conducting trade with 
a United States-domiciled entity, while remain-
ing consistent with the international obligations 
of the United States. 
‘‘(H) Coordinating efforts to protect ves-
sels of the United States operating in inter-
national or domestic commerce from physical 
and cybersecurity threats. 
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‘‘(I) Conducting oversight of the use of 
funds from the Maritime Security Trust Fund 
established under section 50301(b) of this title, 
and making recommendations to Congress for 
expenditures from the Trust Fund. 
‘‘(J) Conducting studies on subjects re-
lated to the maritime industry and international 
shipping, and undertaking other efforts related 
to strengthening the maritime security of the 
United States. 
‘‘(K) Carrying out other duties, as as-
signed by the President in consultation with the 
Maritime Security Advisor, related to the mari-
time industry, shipbuilding, ship repair, stra-
tegic sealift, and the marine transportation sys-
tem of the United States. 
‘‘(3) DELEGATION.—The Board may task agen-
cies who are represented by individuals on the Board 
(as described under paragraph (1)(A)) to carry out 
any duties of the Board. 
‘‘(4) MEETINGS.—The Board shall meet not 
less frequently than quarterly. 
‘‘(5) STAFF.—The Board may hire staff to sup-
port its activities. 
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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $5,000,000 for each of 
fiscal years 2026 through 2035, from the Maritime Secu-
rity Trust Fund established under section 50301(b) of this 
title, to the Maritime Security Board to staff the Board 
and carry out the duties described in this section. 
‘‘(d) REPORT TO CONGRESS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the President establishes the Maritime Security 
Board under this section, and annually thereafter, 
the Board shall submit a report to the appropriate 
committees of Congress describing— 
‘‘(A) the actions that the Board has taken 
to carry out the duties required of the Board 
under subsection (b)(2); and 
‘‘(B) a list of recommended actions that 
the Board recommends Congress take to en-
hance the strength of the United States mari-
time industry and support the economic and na-
tional security needs of the United States;. 
‘‘(2) APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—In this section, the term ‘appropriate com-
mittees of Congress’ has the meaning given that 
term in section 4 of the SHIPS for America Act of 
2025.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 504 of subtitle V of title 46, United States 
Code, is amended to read as follows: 
‘‘50401. Maritime Security Advisor; Maritime Security Board. 
‘‘50402. Maritime Transportation System National Advisory Committee. 
‘‘50403. United States Committee on the Marine Transportation System.’’. 
(c) 
NATIONAL
MARITIME
STRATEGY.—Section 
50114 of title 46, United States Code, is amended— 
(1) by striking subsection (a), and inserting the 
following: 
‘‘(a) IN GENERAL.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Maritime Security Advisor, in consultation with 
the Maritime Security Board, shall develop a Na-
tional Maritime Strategy and submit that National 
Maritime Strategy to the appropriate committees of 
Congress (as that term is defined in section 4 of the 
SHIPS for America Act of 2025). 
‘‘(2) TRANSITION.—Notwithstanding paragraph 
(1), if a national maritime strategy has been devel-
oped and submitted in accordance with this section, 
as in effect on the day before the date of enactment 
of the SHIPS for America Act of 2025, in the 1- 
year period before such date of enactment, the Mari-
time Security Advisor shall implement and update 
that national maritime strategy and shall not de-
velop a new national maritime strategy.’’; and 
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(2) by striking subsections (c) and (d) and in-
serting the following: 
‘‘(c) IMPLEMENTATION.—Upon the release of a strat-
egy under this section, the Maritime Security Advisor, in 
consultation with the Maritime Security Board, shall be 
responsible for implementing the contents and rec-
ommendations of the strategy. 
‘‘(d) UPDATE.—The Maritime Security Advisor, in 
coordination with the Maritime Security Board, shall sub-
mit to the appropriate committees of Congress (as that 
term is defined in section 4 of the SHIPS for America 
Act of 2025) an update to the strategy developed under 
subsection (a) not less often than every 5 years. 
‘‘(e) 
PUBLIC
AVAILABILITY; 
IMPLEMENTATION 
PLAN.—Not later than 6 months after the submission of 
a strategy or update under subsection (a), the Maritime 
Security Advisor, in consultation with the Maritime Secu-
rity Board, shall make publicly available on an appropriate 
website each strategy or updated strategy and an imple-
mentation plan for such strategy or update.’’. 
SEC. 102. MARITIME TRANSPORTATION SYSTEM NATIONAL 
ADVISORY COMMITTEE. 
Section 50402 is amended— 
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(1) in subsection (b), by striking ‘‘Secretary of 
Transportation’’ and inserting ‘‘Maritime Security 
Advisor and Maritime Security Board’’; and 
(2) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘by the 
Secretary of Transportation’’; 
(B) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) REPRESENTATION.—Members of the Com-
mittee shall be appointed as follows: 
‘‘(A) The Maritime Security Advisor shall 
appoint the following members of the Com-
mittee: 
‘‘(i) At least one member to represent 
the Environmental Protection Agency. 
‘‘(ii) At least one member to represent 
the Department of Commerce. 
‘‘(iii) At least one member to rep-
resent the Corps of Engineers. 
‘‘(iv) At least one member to rep-
resent the Coast Guard. 
‘‘(v) At least one member to represent 
Customs and Border Protection. 
‘‘(vi) At least one member to rep-
resent the Maritime Administration. 
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‘‘(vii) At least one member to rep-
resent the Department of Agriculture. 
‘‘(viii) At least one member to rep-
resent the State Department. 
‘‘(ix) At least one member to rep-
resent State and local governmental enti-
ties. 
‘‘(B) Additional members shall represent 
private sector entities that reflect a cross-sec-
tion 
of 
maritime 
industries, 
including 
credentialed United States merchant mariners, 
port and water stakeholders, academia, and 
labor, of whom— 
‘‘(i) 3 shall be appointed by the ma-
jority leader of the Senate; 
‘‘(ii) 3 shall be appointed by the mi-
nority leader of the Senate; 
‘‘(iii) 3 shall be appointed by the 
Speaker of the House of Representatives; 
and 
‘‘(iv) 3 shall be appointed by the mi-
nority leader of the House of Representa-
tives. 
‘‘(C) The Maritime Security Advisor may 
appoint additional members of the Committee, 
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including additional representatives from the 
United States Merchant Marine Academy, State 
maritime academies, or other Federal agencies, 
as the Secretary considers appropriate.’’; and 
(C) in paragraph (4), by redesignating 
subparagraphs (A) and (B) as clauses (i) and 
(ii), respectively, and adjusting the margins ac-
cordingly; 
(D) by redesignating paragraph (4) as sub-
paragraph (A) and adjusting the margins ac-
cordingly; 
(E) by inserting after paragraph (3) the 
following: 
‘‘(4) RESTRICTIONS ON MEMBERS.—’’; and 
(F) at the end of paragraph (4), as so des-
ignated, by inserting the following: 
‘‘(B) RESTRICTIONS ON ADDITIONAL MEM-
BERS.—Members appointed under this para-
graph that are not representing Federal agen-
cies— 
‘‘(i) shall remain on the Committee 
for a term of 3 years from the date that 
the member is appointed; and 
‘‘(ii) may not serve more than 2 con-
secutive terms.’’. 
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SEC. 103. DIRECT HIRE AUTHORITY; AUTHORIZATION FOR 
ADMINISTRATIVE EXPENSES. 
(a) MARITIME ADMINISTRATION DIRECT HIRE AU-
THORITY.— 
(1) IN GENERAL.—The Maritime Administrator 
may appoint, without regard to the provisions of sec-
tions 3309 through 3319 of title 5, United States 
Code, candidates to positions in the competitive serv-
ice within the Maritime Administration for which— 
(A) public notice has been given; 
(B) the Administrator has determined that 
a critical hiring need exists; and 
(C) the Administrator has consulted with 
the Director of the Office of Personnel Manage-
ment regarding— 
(i) the positions for which the Admin-
istrator plans to recruit; 
(ii) the quantity of candidates the Ad-
ministrator is seeking; and 
(iii) the assessment and selection poli-
cies the Administrator plans to utilize. 
(2) DEFINITION OF CRITICAL HIRING NEED.— 
In this subsection, the term ‘‘critical hiring need’’ 
means personnel necessary for the implementation of 
this Act and associated work. 
(b) COAST GUARD DIRECT HIRE AUTHORITY.— 
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(1) IN GENERAL.—The Secretary of the depart-
ment in which the Coast Guard is operating may ap-
point, without regard to the provisions of sections 
3309 through 3319 of title 5, United States Code, 
candidates to positions in the competitive service 
within offices under the Assistant Commandant for 
Prevention Policy of the Coast Guard, for which— 
(A) public notice has been given; 
(B) the Secretary has determined that a 
critical hiring need exists; and 
(C) the Secretary has consulted with the 
Director of the Office of Personnel Management 
regarding— 
(i) the positions for which the Sec-
retary plans to recruit; 
(ii) the quantity of candidates the 
Secretary is seeking; and 
(iii) the assessment and selection poli-
cies the Secretary plans to utilize. 
(2) DEFINITION OF CRITICAL HIRING NEED.— 
In this subsection, the term ‘‘critical hiring need’’ 
means personnel necessary for the implementation of 
this Act and associated work. 
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(c) COMPETITIVE SERVICE.—In this section the term 
‘‘competitive service’’ has the meaning given the term in 
section 2102 of title 5, United States Code. 
(d) AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE EXPENSES.—There is authorized to be ap-
propriated from the Maritime Security Trust Fund estab-
lished under section 50301(b) of title 46, United States 
Code— 
(1) $30,000,000 to the Secretary of Transpor-
tation for administrative expenses of the Maritime 
Administration to administer subtitle V of title 46, 
United States Code, for each of fiscal years 2026 
through 2035; 
(2) $30,000,000 to the Secretary of the depart-
ment in which the Coast Guard is operating for ad-
ministrative expenses of the Coast Guard to admin-
ister subtitle II of title 46, United States Code, for 
each of fiscal years 2026 through 2035; and 
(3) $2,000,000 to the Federal Maritime Com-
mission for administrative expenses of the Federal 
Maritime Commission to administer subtitle IV of 
title 46, United States Code. 
SEC. 104. IMPLEMENTATION PLAN. 
(a) IMPLEMENTATION PLAN REQUIRED.—Not later 
than 60 days after the date of enactment of this Act, the 
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Maritime Administrator and the Secretary of the depart-
ment in which the Coast Guard is operating shall each 
submit to the appropriate committees of Congress and the 
Maritime Security Board a separate implementation plan 
for carrying out this Act, and the amendments made by 
this Act. 
(b) ELEMENTS.—Each implementation plan required 
under subsection (a) shall include, for each action required 
of the Maritime Administrator and the Secretary of the 
department in which the Coast Guard is operating (as ap-
plicable) in this Act, including the amendments made by 
this Act— 
(1) an identification of all administrative re-
structuring requirements; 
(2) an identification of each office or division 
within the Maritime Administration or Coast Guard 
principally responsible for each relevant section of 
this Act; 
(3) an identification of additional personnel 
needed to sufficiently implement this Act, a hiring 
plan, and a training plan; 
(4) an identification of any barrier (including 
any policy, law, or regulation) to implementation of 
any section of this Act, and recommendations to ad-
dress those barriers; 
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(5) a descriptive implementation timeline, tak-
ing into account the administrative needs of the 
Maritime Administration or the Coast Guard; and 
(6) any additional components determined ap-
propriate by the Maritime Administrator or such 
Secretary to ensure the success of implementation of 
this Act. 
(c) BRIEFING.—Not later than 15 days after submit-
ting each implementation plan required under subsection 
(a), the Maritime Administrator and the Secretary of the 
department in which the Coast Guard is operating shall 
provide a briefing to the appropriate committees of Con-
gress on the status of that implementation plan required 
under subsection (a). 
(d) BIANNUAL UPDATE.—Not less frequently than 
biannually following the submission of the plans under 
subsection (a) and for 2 years thereafter, the Maritime 
Administrator and the Secretary of the department in 
which the Coast Guard is operating shall submit to the 
appropriate committees of Congress separate reports con-
taining any updates on the implementation of such plans. 
(e) GAO REVIEW.—The Comptroller General of the 
United States shall— 
(1) not later than 2 years after the date of en-
actment of this Act, and biennially thereafter for 10 
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years, conduct a review of the activities carried out 
in accordance with this Act, and the amendments 
made by this Act; and 
(2) submit to the appropriate committees of 
Congress the results of each review. 
SEC. 105. FEDERAL MARITIME COMMISSION REPORT ON 
VESSELS OF THE UNITED STATES. 
(a) IN GENERAL.—The Federal Maritime Commis-
sion shall annually submit a report to the Maritime Secu-
rity Board and the appropriate committees of Congress 
evaluating the competitiveness of vessels of the United 
States in foreign commerce. The Maritime Security Board 
shall utilize the findings of such report to inform the Na-
tional Maritime Strategy under section 50114 of title 46, 
United States Code, and other activities of the Board. 
(b) CONTENTS.—The report shall include— 
(1) metrics concerning carriage of foreign com-
merce on vessels of the United States; 
(2) information about the price parity of car-
riage of foreign commerce on vessels of the United 
States versus foreign vessels (as defined in section 
110 of title 46, United States Code) by market; 
(3) identification of markets of opportunity for 
the United States to compete in foreign commerce 
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TITLE II—MARITIME SECURITY 
TRUST FUND 
SEC. 201. MARITIME SECURITY TRUST FUND ESTABLISHED. 
Section 50301 of title 46, United States Code, is 
amended— 
(1) by striking the section heading and insert-
ing ‘‘Funds established’’; 
(2) in subsection (e)— 
(A) in paragraph (2), by redesignating 
subparagraphs (A), (B), and (C), as clauses (i), 
(ii), and (iii), respectively, and adjusting the 
margins accordingly; 
(B) by redesignating paragraphs (1), (2), 
and (3), as subparagraphs (A), (B), and (C), 
respectively, and adjusting the margins accord-
ingly; 
(C) in subparagraph (A), as redesignated 
by subparagraph (B), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘subparagraph (B)’’; 
(D) in subparagraph (B), as redesignated 
by subparagraph (B), in the matter preceding 
clause (i), by striking ‘‘Paragraph (1)’’ and in-
serting ‘‘Subparagraph (A)’’; and 
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(E) in subparagraph (C), as redesignated 
by subparagraph (B), by striking ‘‘Paragraph 
(1)’’ and inserting ‘‘Subparagraph (A)’’; 
(3) in subsection (f), by redesignating para-
graphs (1) through (4) as subparagraphs (A) 
through (D), respectively, and adjusting the margins 
accordingly; 
(4) by redesignating subsections (b) through (g) 
as paragraphs (2) through (7), respectively, and ad-
justing the margins accordingly; 
(5) in subsection (a), by striking ‘‘IN GEN-
ERAL’’ and all that follows through ‘‘There is a’’ and 
inserting the following: 
‘‘(a) VESSEL OPERATIONS REVOLVING FUND.— 
‘‘(1) IN GENERAL.—There is a’’; 
(6) in paragraph (4), by striking ‘‘subsection 
(a)’’ and inserting ‘‘paragraph (1)’’; and 
(7) by adding at the end the following: 
‘‘(b) MARITIME SECURITY TRUST FUND.— 
‘‘(1) IN GENERAL.—There is a ‘Maritime Secu-
rity Trust Fund’ for use in carrying out programs 
or activities associated with supporting the merchant 
marine of the United States and the maritime indus-
trial base, as authorized under the SHIPS for Amer-
ica Act of 2025. 
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‘‘(2) TRANSFER OF AMOUNTS.—The Fund shall 
be credited with amounts equivalent to the receipts 
from each of the following: 
‘‘(A) The taxes received in the Treasury 
under— 
‘‘(i) section 60301 of this title (relat-
ing to regular tonnage taxes); 
‘‘(ii) section 60302 of this title (relat-
ing to special tonnage taxes); and 
‘‘(iii) section 60303 of this title (relat-
ing to light money). 
‘‘(B) The revenue collected from— 
‘‘(i) duties imposed under section 466 
of the Tariff Act of 1930 (19 U.S.C. 1466) 
(relating to equipment and repair of ves-
sels); 
‘‘(ii) duties, fees, or monetary pen-
alties imposed by the United States Trade 
Representative under section 301 of the 
Trade Act of 1974 (19 U.S.C. 2411) pur-
suant to the determination of the Trade 
Representative that the targeting of the 
maritime, logistics, and shipbuilding sec-
tors for dominance by the People’s Repub-
lic of China is unreasonable and burdens 
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or restricts United States commerce, notice 
of which was published in the Federal Reg-
ister on January 23, 2025 (90 Fed. Reg. 
8089); and 
‘‘(iii) duties imposed under section 
60502 of this title (relating to discrimi-
nating duty on goods imported in foreign 
vessels or from contiguous countries). 
‘‘(C) Any penalties paid with respect to a 
vessel pursuant to any of the following sections 
of this title: 
‘‘(i) Section 2017. 
‘‘(ii) Section 2302. 
‘‘(iii) Section 3318. 
‘‘(iv) Section 3718. 
‘‘(v) Section 4106. 
‘‘(vi) Section 5116. 
‘‘(vii) Section 11303. 
‘‘(viii) Section 11501. 
‘‘(ix) Section 12151. 
‘‘(x) Section 12507. 
‘‘(xi) Section 14701. 
‘‘(xii) Section 30707, with respect to 
the portion of the fine that goes to the 
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United States Government under sub-
section (c) of such section. 
‘‘(xiii) Section 31309. 
‘‘(xiv) Section 31330. 
‘‘(xv) Section 41107. 
‘‘(xvi) Section 41108. 
‘‘(xvii) Section 42108. 
‘‘(xviii) Section 44104. 
‘‘(xix) Section 70052. 
‘‘(xx) Section 70119. 
‘‘(xxi) Section 70506. 
‘‘(xxii) Section 80509. 
‘‘(D) Any revenue generated in connection 
with the seizure and forfeiture of a maritime 
vessel under— 
‘‘(i) section 3 of the Act of August 5, 
1935 (49 Stat. 518, chapter 438; 19 
U.S.C. 1703); 
‘‘(ii) section 70052 of this title; and 
‘‘(iii) section 70507 of this title. 
‘‘(3) TOTAL BALANCE.—The total amount in 
the Maritime Security Trust Fund at any time shall 
not exceed $20,000,000,000. 
‘‘(4) EXPENDITURES.—Amounts in the Mari-
time Security Trust Fund shall be available for mak-
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ing expenditures before October 1, 2035, to meet 
those obligations of the United States heretofore and 
hereafter incurred which are authorized to be paid 
out of the Maritime Security Trust Fund under the 
SHIPS for America Act of 2025, including the 
amendments made in such Act.’’. 
SEC. 202. REGULAR TONNAGE TAXES. 
(a) RATE UPDATES.—Section 60301 of title 46, 
United States Code, is amended— 
(1) in subsection (a), by striking ‘‘, for fiscal 
years 2006 through 2010, and 2 cents per ton not 
to exceed a total of 10 cents per ton per year, for 
each fiscal year thereafter’’; and 
(2) in subsection (b), by striking ‘‘, for fiscal 
years 2006 through 2010, and 6 cents per ton, not 
to exceed a total of 30 cents per ton per year, for 
each fiscal year thereafter’’. 
(b) FOREIGN SHIPYARD OF CONCERN.— 
(1) DEFINITION.—The term ‘‘foreign shipyard 
of concern’’ means— 
(A) a shipyard owned by a firm owned or 
controlled by the government of a foreign coun-
try of concern or a foreign entity of concern, 
that has the capacity to produce both military 
and commercial vessels; and 
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(B) a foreign shipyard designated under 
paragraph (2). 
(2) DESIGNATION.— 
(A) IN GENERAL.—Beginning after Octo-
ber 1, 2027, the Maritime Security Advisor, in 
consultation with the Maritime Security Board, 
shall designate certain foreign shipyards that 
pose a threat to the national security or eco-
nomic security of the United States as foreign 
shipyards of concern, in accordance with this 
paragraph. 
(B) NOTICE AND COMMENT.—A proposed 
designation under subparagraph (A) shall be 
subject to notice and comment in the Federal 
Register. 
(C) ANNUAL REVISIONS.—The list of ship-
yards designated under this paragraph shall be 
revised, and new shipyards may be designated, 
not more frequently than once a year. 
(c) PENALTY RATES; INFLATION.—Section 60301 of 
title 46, United States Code, is further amended— 
(1) by redesignating subsection (c) as sub-
section (e); and 
(2) by inserting after subsection (b) the fol-
lowing: 
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‘‘(II) an amount equal to 50 per-
cent or greater of the total number of 
vessels that the entity expects to have 
delivered in the period of 24 months 
after the time of such determination 
are vessels expected to be delivered by 
a shipyard of concern; 
‘‘(B) $3.50 per ton for a vessel that is 
owned or operated by an entity, with respect to 
which— 
‘‘(i) an amount equal to 25 percent or 
more, but less than 50 percent, of the total 
number of vessels ordered at the time of 
the determination of the application of 
subsection (a) or (b) are vessels ordered 
from a shipyard of concern; or 
‘‘(ii) an amount equal to 25 percent 
or more, but less than 50 percent, of the 
total number of vessels that the entity ex-
pects to have delivered in the period of 24 
months after the time of such determina-
tion are vessels expected to be delivered by 
a shipyard of concern; 
‘‘(C) $1.25 per ton for a vessel that is 
owned or operated by an entity with a fleet of 
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vessels, of which an amount equal to 50 percent 
or more of the number of such vessels were con-
structed or underwent any repairs (excluding 
necessary repairs as described in paragraph (1) 
of section 466(d) of the Tariff Act of 1930 (19 
U.S.C. 1466(d)(1))) in a shipyard of concern at 
any time during the 3 years preceding the date 
of the determination of the application of sub-
section (b). 
‘‘(2) HIGHEST
APPLICABLE
RATE.—A vessel 
with respect to which the descriptions in 2 or more 
subparagraphs in paragraph (1) apply, shall be sub-
ject to the highest applicable rate described in that 
paragraph. 
‘‘(3) DEFINITIONS.—In this subsection— 
‘‘(A) the terms ‘foreign country of concern’ 
and ‘foreign entity of concern’ have the mean-
ings given those terms in section 4 of the 
SHIPS for America Act of 2025; and 
‘‘(B) the term ‘foreign shipyard of concern’ 
has the meaning give that term in section 202 
of that Act. 
‘‘(d) INDEX FOR INFLATION.—The taxes imposed 
under this section shall be annually increased to account 
for inflation.’’. 
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SEC. 203. PRESIDENTIAL SUSPENSION OF TONNAGE TAXES 
AND LIGHT MONEY. 
Section 60304 of title 46, United States Code, is 
amended to read as follows: 
‘‘§ 60304. Presidential suspension of tonnage taxes 
and light money 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), if the President is satisfied that the government of 
a foreign country does not impose discriminating or coun-
tervailing duties to the disadvantage of the United States, 
the President may suspend the imposition of special ton-
nage taxes and light money under sections 60302 and 
60303 of this title on vessels of that country. 
‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 
any vessel that— 
‘‘(1) is owned or operated by a foreign entity of 
concern (as that term is defined in section 4 of the 
SHIPS for America Act of 2025); 
‘‘(2) is a vessel registered under a registry of a 
foreign country of concern (as that term is defined 
in section 4 of the SHIPS for America Act of 2025); 
or 
‘‘(3) was a vessel registered under a registry of 
a foreign country of concern (as that term is defined 
in section 4 of the SHIPS for America Act of 2025) 
at any time during the 3 years preceding the date 
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of the determination of the application of subsection 
(a).’’. 
TITLE III—SEALIFT CAPABILITY 
SEC. 301. SEALIFT CAPABILITY. 
(a) IN GENERAL.—Subtitle V of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘PART H—STRATEGIC SEALIFT 
‘‘Sec. 
‘‘59101. Objectives and policy. 
‘‘59102. Procurement, maintenance, and operation. 
‘‘59103. Sealift prioritization. 
‘‘59104. Report on privilege. 
‘‘§ 59101. Objectives and policy 
‘‘(a) OBJECTIVES.—It is necessary for the national 
defense and economic security of the United States that 
the United States have vessels of the United States capa-
ble of providing and supporting strategic sealift— 
‘‘(1) sufficient to meet surge defense deploy-
ment and essential economic activities for the United 
States in times of crisis or war; 
‘‘(2) sufficient to respond unilaterally to na-
tional security threats in geographic areas not cov-
ered by alliance commitments and ensure economic 
security resilience for United States trade; and 
‘‘(3) built, operated, and maintained during all 
times, primarily in the United States to protect and 
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ensure national security resiliency and avoid foreign 
coercion of critical supply chains. 
‘‘(b) POLICY.—It is the policy of the United States 
to encourage and aid the development and maintenance 
of vessels of the United States with strategic sealift capa-
bilities satisfying the objectives described in subsection 
(a). 
‘‘(c) STRATEGY REQUIRED.— 
‘‘(1) IN
GENERAL.—The Maritime Security 
Board shall annually develop a strategy to leverage 
the financial assistance programs established under 
part C of this subtitle to expand the number of ves-
sels of the United States needed to accomplish the 
objectives described under subsection (a). 
‘‘(2) STRATEGY
COMPONENTS.—The strategy 
developed by the Maritime Security Board shall in-
clude— 
‘‘(A) annual goals for the number of ves-
sels that will be brought into the fleet of vessels 
of the United States capable of providing stra-
tegic sealift utilizing the Maritime Security 
Fleet under chapter 531 of this title, the Cable 
Security Fleet under chapter 532 of this title, 
the Tanker Security Fleet under chapter 534 of 
this title, the Strategic Commercial Fleet under 
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chapter 536 of this title, and the Shipbuilding 
Financial Incentives program, consistent with 
the most recent Mobility Capability Require-
ments Study produced by United States Trans-
portation Command; and 
‘‘(B) an assessment of domestic ship-
building capacity and a strategy to increase the 
capacity of the domestic shipbuilding industry 
utilizing the Shipbuilding Financial Incentives 
program. 
‘‘(3) NATIONAL
MARITIME
STRATEGY.—The 
strategy developed by the Maritime Security Board 
under paragraph (1) shall be consistent with the Na-
tional Maritime Strategy developed under section 
50114. 
‘‘(d) REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Upon completion, the Mari-
time Security Board shall transmit to the appro-
priate committees of Congress a summary of the 
strategy developed under subsection (c), with a clas-
sified annex as necessary. 
‘‘(2) DEFINITION.—In this part, the term ‘ap-
propriate committees of Congress’ has the meaning 
given that term in section 4 of the SHIPS for Amer-
ica Act of 2025. 
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‘‘§ 59102. Procurement, maintenance, and operation 
‘‘(a) STATEMENT OF POLICY.—The Maritime Admin-
istrator, in coordination with the Secretary of Defense and 
the Secretary of Homeland Security, shall build, acquire, 
maintain, coordinate, support, and operate a sufficient 
and privileged fleet of vessels of the United States with 
commercial and military sealift capability. 
‘‘(b) SUPPLEMENTAL CAPABILITY.—In developing 
sealift capability under this part, the Secretary of Trans-
portation and the Secretary of Defense shall continue to 
support a sufficient Maritime Security Fleet under chap-
ter 531 of this title, a Cable Security Fleet under chapter 
532 of this title, a Tanker Security Fleet under chapter 
534 of this title, the Strategic Commercial Fleet under 
chapter 536 of this title, a Military Sealift Command of 
the Department of the Navy, and a Ready Reserve Force 
component of the National Defense Reserve Fleet under 
section 57100 of this title, to provide capacity and resil-
iency for unilateral United States strategic sealift in 
peace, crisis, and war. 
‘‘(c) JUDICIAL REVIEW.—No court shall have juris-
diction to review decisions made by the Maritime Adminis-
trator, the Secretary of Defense, or the Secretary of 
Homeland Security with respect to this section. 
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‘‘§ 59103. Sealift prioritization 
‘‘(a) IN GENERAL.—In acquiring, maintaining, co-
ordinating, and supporting a fleet of vessels capable of 
providing sealift capacity during wartime and crisis, the 
Maritime Administrator, in coordination with the Sec-
retary of Defense, shall ensure the availability of vessels, 
in the following order of priority: 
‘‘(1) Commercial vessels of the United States. 
‘‘(2) Vessels of the United States that are 
owned and operated by the United States Govern-
ment. 
‘‘(3) Vessels of countries that are defense treaty 
allies of the United States. 
‘‘(4) Vessels of countries that are strategic 
partners of the United States. 
‘‘(b) JUDICIAL REVIEW.—No court shall have juris-
diction to review decisions made by the Maritime Adminis-
trator or the Secretary of Defense with respect to this sec-
tion. 
‘‘§ 59104. Report on privilege 
‘‘(a) IN GENERAL.—Not later than March 1, 2026, 
the Secretary of Transportation, in coordination with the 
Secretary of Commerce, the Chair of the Federal Maritime 
Commission, and the Director of the Office of Manage-
ment and Budget, shall submit to the appropriate commit-
tees of Congress a report including ways to ensure vessels 
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of the United States operating in foreign commerce are 
privileged in regulation, taxation, fees, insurance, and pol-
icy compared to foreign vessels conducting trade with a 
United States domiciled entity, while remaining consistent 
with the international obligations of the United States. 
‘‘(b) CONTENTS.—In submitting the report under 
subsection (a), the Secretary of Transportation shall in-
clude options for regulating trade with foreign vessels in 
order to sustain and grow the Maritime Security Fleet 
under chapter 531 of this title, the Cable Security Fleet 
under chapter 532 of this title, the Tanker Security Fleet 
under chapter 534 of this title, the Strategic Commercial 
Fleet under chapter 536 of this title, and other vessels 
of the United States operating in foreign commerce.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle V of title 46, United States Code, is amended 
by adding at the end the following: 
‘‘PART H—STRATEGIC SEALIFT’’. 
SEC. 302. NATIONAL FREIGHT STRATEGIC PLAN. 
Section 70102(b) of title 49, United States Code, is 
amended— 
(1) in paragraph (16), by striking ‘‘and’’ after 
the semicolon; 
(2) in paragraph (17), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
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‘‘(18) consideration of United States strategic 
sealift objectives and strategies established under 
section 59101 of title 46; and 
‘‘(19) consideration of maritime networks in 
multimodal freight corridors.’’. 
SEC. 303. FOREIGN SHIPPING PRACTICES; CONTROLLED 
CARRIERS. 
(a) 
FOREIGN
SHIPPING
PRACTICES.—Section 
42301(b) of title 46, United States Code, is amended— 
(1) in paragraph (2), by inserting ‘‘or pas-
sengers’’ after ‘‘transportation of cargo’’; and 
(2) in paragraph (5), by inserting ‘‘or pas-
sengers’’ after ‘‘carriage of cargo’’. 
(b) CONTROLLED CARRIERS.—Chapter 407 of title 
46, United States Code, is amended— 
(1) in section 40701— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘or’’ 
at the end; 
(ii) in paragraph (2), by striking the 
period at the end and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
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‘‘(3) arrange or provide passenger transpor-
tation at a fare that is below a just and reasonable 
level.’’; 
(B) in subsection (b), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’; 
(C) in subsection (c), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’; and 
(D) in subsection (d), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’; 
(2) in section 40702(b)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘rule, or regulation’’ and inserting 
‘‘rule, regulation, or fare’’; 
(B) in paragraph (1), by striking ‘‘rate or 
charge’’ and inserting ‘‘rate, charge, or fare’’; 
and 
(C) in paragraph (2), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’; 
(3) in section 40703, by striking ‘‘a rate, 
charge,’’ and inserting ‘‘a rate, fare, charge,’’; and 
(4) in section 40704— 
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(A) in subsection (a), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’; 
(B) in subsection (b), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’; 
(C) in subsection (c), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’ each place the term appears; 
(D) in subsection (d)— 
(i) in paragraph (1), by striking ‘‘rule, 
or regulation’’ and inserting ‘‘rule, regula-
tion, or fare’’ each place the term appears; 
and 
(ii) in paragraph (2), by striking 
‘‘rule, or regulation’’ and inserting ‘‘rule, 
regulation, or fare’’ each place the term 
appears; and 
(E) in subsection (e), by striking ‘‘rule, or 
regulation’’ and inserting ‘‘rule, regulation, or 
fare’’ each place the term appears. 
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TITLE 
IV—VESSELS 
OF 
THE 
UNITED STATES IN INTER-
NATIONAL COMMERCE 
Subtitle A—Strategic Sealift 
Programs 
SEC. 401. STRATEGIC COMMERCIAL FLEET. 
(a) IN GENERAL.—Part C of subtitle V of title 46, 
United States Code, is amended by inserting after chapter 
535 the following: 
‘‘CHAPTER 536—STRATEGIC COMMERCIAL 
FLEET 
‘‘Sec. 
‘‘53601. Definitions. 
‘‘53602. Establishment of Strategic Commercial Fleet. 
‘‘53603. Operating agreements. 
‘‘53604. Payments. 
‘‘53605. National security requirements. 
‘‘53606. Regulations. 
‘‘§ 53601. Definitions 
‘‘In this chapter: 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Maritime Administrator. 
‘‘(2) APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘appropriate committees of Con-
gress’ means— 
‘‘(A) the Committee on Armed Services, 
the Committee on Commerce, Science, and 
Transportation, and the Committee on Appro-
priations of the Senate; and 
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‘‘(B) the Committee on Armed Services, 
the Committee on Transportation and Infra-
structure, and the Committee on Appropriations 
of the House of Representatives. 
‘‘(3) COASTWISE TRADE.—The term ‘coastwise 
trade’ means commerce or trade that is subject to 
the requirements of section 55102. 
‘‘(4) COVERED ENTITY.—The term ‘covered en-
tity’ means— 
‘‘(A) any owner or operator of a vessel eli-
gible under section 53602(d); or 
‘‘(B) a bid team consisting of— 
‘‘(i) an entity eligible under subpara-
graph (A); 
‘‘(ii) a shipyard in the United States 
with the ability, experience, financial re-
sources, and other qualifications necessary 
for— 
‘‘(I) the construction of a vessel 
eligible for inclusion in the Strategic 
Commercial Fleet; or 
‘‘(II) the repair of such a vessel; 
and 
‘‘(iii) another legal entity that is not 
a foreign entity of concern. 
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‘‘(5) FLEET.—The term ‘Fleet’ means the Stra-
tegic Commercial Fleet established under section 
53602. 
‘‘(6) FOREIGN COMMERCE.—The term ‘foreign 
commerce’ means— 
‘‘(A) commerce or trade between the 
United States, its territories or possessions, or 
the District of Columbia, and a foreign country; 
and 
‘‘(B) commerce or trade between foreign 
countries. 
‘‘(7) FOREIGN COUNTRY OF CONCERN; FOREIGN 
ENTITY OF CONCERN.—The terms ‘foreign country 
of concern’ and ‘foreign entity of concern’ have the 
meanings given such terms in section 4 of the Ship-
building and Harbor Infrastructure for Prosperity 
and Security for America Act of 2025. 
‘‘(8) QUALIFIED FOREIGN BUILT VESSEL.—The 
term ‘qualified foreign built vessel’— 
‘‘(A) means a vessel that— 
‘‘(i) is not more than 14 years of age; 
‘‘(ii) is, prior to entry into the Fleet, 
documented under the laws of the United 
States; and 
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‘‘(iii) was constructed (or recon-
structed) outside the United States; and 
‘‘(B) does not include a vessel that— 
‘‘(i) was owned or operated by a for-
eign entity of concern; 
‘‘(ii) is a vessel of a foreign country of 
concern; 
‘‘(iii) was constructed by a shipyard 
that was owned or operated by a foreign 
entity of concern or located in a foreign 
country of concern; or 
‘‘(iv) was registered as a vessel of a 
foreign country of concern at any time 
during the 3 years prior to entry into the 
Fleet. 
‘‘(9) UNITED
STATES
BUILT
VESSEL.—The 
term ‘United States built vessel’ means a vessel that 
is constructed in the United States (and, if recon-
structed, reconstructed in the United States). 
‘‘(10) UNITED
STATES
CITIZEN
TRUST.—The 
term ‘United States citizen trust’ has the meaning 
given such term in section 53201. 
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‘‘§ 53602. Establishment of Strategic Commercial 
Fleet 
‘‘(a) IN GENERAL.—The Administrator, in consulta-
tion with the Secretary of Defense, shall establish a fleet, 
to be known as the ‘Strategic Commercial Fleet’, of active, 
commercially viable, militarily useful, privately owned ves-
sels to meet national defense and other security require-
ments and maintain a United States presence in inter-
national commercial shipping. 
‘‘(b) NUMBER
OF VESSELS.—The Administrator 
shall seek to select eligible vessels described in subsection 
(d) for the Fleet through an annual competitive selection 
process in accordance with the annual target number for 
the Fleet recommended by the Maritime Security Board 
under section 50401(b)(2)(B)(i). Through such annual se-
lection process, the Administrator shall— 
‘‘(1) select for inclusion in the Fleet not fewer 
than 10 vessels in the 12-month period that begins 
on the date that is 2 years after the date of enact-
ment of this section; 
‘‘(2) increase the number of vessels selected for 
inclusion in the Fleet annually such that not later 
than 5 years after such date of enactment, not fewer 
than 20 vessels are selected for such inclusion annu-
ally; and 
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‘‘(3) ensure that the total number of vessels in-
cluded in the fleet shall be not more than 250 ves-
sels at any point in time. 
‘‘(c) SOLICITATION; ENTRY INTO FLEET.— 
‘‘(1) SOLICITATION.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this section, the 
Administrator shall solicit applications from 
covered entities to competitively select vessels 
that are eligible under subsection (d) and meet 
the requirements of this subsection for inclusion 
in the Fleet. 
‘‘(B) 
PUBLIC
SOLICITATION
REQUIRE-
MENTS.—In soliciting applications under sub-
paragraph (A), the Administrator— 
‘‘(i) shall— 
‘‘(I) publish a notice in the Fed-
eral Register, which, at a minimum, 
identifies the requirements for the 
number of vessels as established by 
the Administrator and the Maritime 
Security Board under subsection (b); 
and 
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‘‘(II) allow applicants not less 
than 30 days to submit an application 
for entry into the Fleet; and 
‘‘(ii) may, in coordination with the 
Maritime Security Board, include in the 
notice in the Federal Register— 
‘‘(I) target numbers for each ves-
sel type that will be selected for inclu-
sion in the Fleet each year; and 
‘‘(II) guidance on proposed an-
nual operating support payments and 
annual capital support payments for 
each vessel type solicited, to ensure— 
‘‘(aa) covered entities submit 
applications that are priced com-
petitively and meet the needs of 
the Fleet; and 
‘‘(bb) there is a competitive 
selection process as described in 
this section. 
‘‘(2) ELIGIBLE APPLICATIONS.—The Adminis-
trator shall solicit and accept applications in sepa-
rate processes for each of the following: 
‘‘(A) NEWLY CONSTRUCTED VESSELS.— 
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‘‘(i) IN GENERAL.—A covered entity 
may submit an application for the Fleet 
that involves the construction of a United 
States built vessel and operation of such 
vessel as a vessel of the United States in 
foreign commerce. 
‘‘(ii) INTERIM
VESSEL.—An applica-
tion described in clause (i) from a covered 
entity may include a proposal for the use 
of an interim vessel, if such proposal pro-
vides that— 
‘‘(I) the covered entity will oper-
ate a qualified foreign-built vessel as a 
vessel of the United States in foreign 
commerce as part of the Fleet until 
the United States built vessel de-
scribed in such clause enters the 
Fleet, in accordance with the mile-
stones established within the oper-
ating 
agreement 
under 
section 
53603(c)(1); 
‘‘(II) when the United States 
built vessel enters the Fleet or the 
covered entity fails to meet milestones 
established in the operating agree-
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ment, the qualified foreign-built vessel 
shall be removed from the Fleet; and 
‘‘(III) the covered entity may 
then transfer and register the quali-
fied foreign-built vessel under a reg-
istry of any foreign country that is 
not a foreign country of concern. 
‘‘(B) QUALIFIED
FOREIGN-BUILT
VES-
SELS.— 
‘‘(i) IN
GENERAL.—Through fiscal 
year 2030, a covered entity may submit an 
application for the Fleet that involves the 
operation of a qualified foreign-built vessel 
as a vessel of the United States in foreign 
commerce. 
‘‘(ii) EXCEPTION.—After fiscal year 
2030, the Administrator may not enter 
into a new agreement to bring a qualified 
foreign-built vessel into the Fleet unless— 
‘‘(I) the vessel is operating as an 
interim vessel under subparagraph 
(A)(ii); or 
‘‘(II) the Administrator and Sec-
retary of Defense, in consultation with 
the Maritime Security Board, jointly 
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certify to the appropriate committees 
of Congress that adding additional 
qualified foreign-built vessels to the 
Fleet is necessary for the national se-
curity of the United States until re-
placed by a newly constructed vessel 
to meet the schedule under subsection 
(b). 
‘‘(3) PROCEDURE.— 
‘‘(A) IN GENERAL.—A covered entity desir-
ing to have a vessel selected for the Fleet shall 
submit an eligible application under paragraph 
(2) as at such time, in such manner, and con-
taining such information as the Administrator 
may require. Such application shall include— 
‘‘(i) a proposed annual operating sup-
port payment, which may cover the dif-
ference in operating costs (including costs 
associated with vessel repair) associated 
with operating the vessel as a vessel of the 
United States as compared to a fair and 
reasonable estimate of the cost of oper-
ating that type of vessel under the laws of 
a foreign country; 
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‘‘(ii) in the case of an application de-
scribed in paragraph (2)(A), a proposed 
annual capital support payment, which 
may cover the difference in capital costs 
associated with constructing the vessel in 
the United States as compared to a fair 
and reasonable estimate of the cost of con-
structing that type of vessel in a foreign 
shipyard; and 
‘‘(iii) any other support payments 
needed to make a vessel commercially via-
ble in foreign commerce. 
‘‘(B) BID TEAM.—In the case of an eligible 
entity that is a bid team described in section 
53601(4)(B), such team shall jointly submit an 
application under this subsection for inclusion 
in the Fleet. 
‘‘(4) ACCEPTANCE INTO FLEET.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall evaluate eligible applications submitted 
under this subsection in order to, in accordance 
with this paragraph, select applications that 
meet the requirements of this section for ac-
ceptance in the Fleet. 
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‘‘(B) CITIZENSHIP
PREFERENCE.—In se-
lecting applications to meet the requirements of 
this section, the Administrator shall ensure, to 
the extent sufficient qualified applications are 
received under this subsection, that not less 
than 25 percent of vessels selected for the Fleet 
shall be owned or operated by a covered entity 
that is, or a bid team led by, a citizen of the 
United States under section 50501. 
‘‘(C) PRIORITY.—In evaluating eligible ap-
plications for selection in the Fleet and subject 
to subparagraph (B), the Administrator shall 
give priority to— 
‘‘(i) applications that represent the 
best value to the Federal Government; and 
‘‘(ii) applications for vessels, or for 
vessels providing services, that are deter-
mined by the Maritime Security Board to 
have capabilities critical to the national 
and economic security of the United 
States. 
‘‘(D) RELATIONSHIP TO THE TANKER SE-
CURITY
FLEET.—If the most recent Mobility 
Capability Requirements Study produced by 
United States Transportation Command identi-
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fies a need for a fleet of tanker vessels that are 
vessels of the United States that exceeds the 
size of the Tanker Security Fleet established 
under chapter 534 of this title, the Adminis-
trator, in coordination with the Maritime Secu-
rity Board, may select for inclusion in the Fleet 
a number of tanker vessels that is consistent 
with the requirements of the Study. 
‘‘(E) CONSIDERATIONS FOR REVIEW.—In 
evaluating eligible applications submitted under 
this subsection for selection in the Fleet, the 
Administrator shall— 
‘‘(i) determine that any vessel so se-
lected will be suitable for use by the 
United States for national defense or mili-
tary purposes in time of war or national 
emergency; 
‘‘(ii) determine that any vessel so se-
lected will aid in the promotion and devel-
opment of foreign commerce; 
‘‘(iii) determine that— 
‘‘(I) the proposed use of the ves-
sel in commercial service is reason-
able; and 
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‘‘(II) the owner or operator of 
the vessel possesses the ability, experi-
ence, financial resources, and other 
qualifications necessary for the oper-
ation and maintenance of the vessel; 
‘‘(iv) determine that a shipyard se-
lected to construct a vessel under this sec-
tion possesses the ability, experience, fi-
nancial resources, equipment, and other 
qualifications necessary to properly con-
struct the vessel; 
‘‘(v) determine that the price for the 
construction (if applicable) and operation 
of a vessel under this section is fair and 
reasonable; 
‘‘(vi) consider whether the covered en-
tity commits to— 
‘‘(I) use equipment, materials, 
and supplies that are produced in the 
United States; and 
‘‘(II) utilize, to the maximum ex-
tent practicable, subcontractors and 
suppliers that are based in the United 
States; 
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‘‘(vii) consider whether the covered 
entity commits to repair, repower, and re-
condition a vessel under this section in a 
shipyard in the United States; and 
‘‘(viii) consider whether the covered 
entity has made commitments to worker 
and 
community 
investment, 
including 
through— 
‘‘(I) programs to expand employ-
ment opportunity for economically dis-
advantaged individuals; or 
‘‘(II) securing commitments from 
regional educational and training enti-
ties and institutions of higher edu-
cation, as defined in section 102 of 
the Higher Education Act of 1965 (20 
U.S.C. 1002), to provide workforce 
training, including programming for 
training and job placement of eco-
nomically disadvantaged individuals. 
‘‘(5) TIMING.— 
‘‘(A) QUALIFIED
FOREIGN
VESSEL.—Not 
later than 180 days after entering into an oper-
ating agreement under section 53603 with a 
covered entity for inclusion of a qualified for-
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eign-built vessel into the Fleet, such vessel shall 
be placed into service as part of the Fleet. 
‘‘(B) NEWLY CONSTRUCTED VESSEL.—Not 
later than 36 months after entering into an op-
erating agreement under section 53603 with a 
covered entity for inclusion of a newly con-
structed United States built vessel described in 
paragraph (2)(A), such vessel shall be placed 
into service as part of the Fleet. 
‘‘(C) DELAYED ADMISSION.—The Adminis-
trator may delay the entry of a vessel selected 
to participate in the Fleet for— 
‘‘(i) a delay in the construction of 
such vessel; or 
‘‘(ii) difficulty of the owner or oper-
ator of such vessel in recruiting United 
States mariners as required under section 
53603(b)(1)(A). 
‘‘(d) VESSEL ELIGIBILITY.—A vessel is eligible to be 
included in the Fleet if— 
‘‘(1) the vessel— 
‘‘(A) is a vessel of the United States; or 
‘‘(B) is not a vessel of the United States, 
but— 
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‘‘(i) the owner of the vessel has dem-
onstrated an intent to have the vessel doc-
umented under chapter 121 of this title if 
it is included in the Fleet; and 
‘‘(ii) by the time an operating agree-
ment is entered into under section 53603, 
the vessel is documented under chapter 
121 of this title; 
‘‘(2) the vessel is a United States built vessel 
or a qualified foreign-built vessel; 
‘‘(3) the vessel is— 
‘‘(A) a bulk carrier vessel; 
‘‘(B) a tanker vessel; 
‘‘(C) a roll-on/roll-off vessel; 
‘‘(D) a liquefied natural gas tanker vessel; 
‘‘(E) a container vessel; 
‘‘(F) a multi-purpose vessel; 
‘‘(G) a cable vessel (as defined in section 
53201 of this title); 
‘‘(H) a heavy-lift vessel; or 
‘‘(I) any other type of vessel determined 
appropriate by the Administrator, in consulta-
tion with the Maritime Security Board; 
‘‘(4) the vessel is operated (or will be operated) 
in providing transportation in foreign commerce; 
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‘‘(5) the vessel meets the requirements of para-
graph (1), (2), (3), or (4) of subsection (e); 
‘‘(6) the vessel— 
‘‘(A) is suitable for use by the United 
States for national defense or military purposes 
in time of war or national emergency, as deter-
mined by the Secretary of Defense; 
‘‘(B) is commercially viable, as determined 
by the Administrator; and 
‘‘(C) has dedicated space for the training 
of— 
‘‘(i) cadets of the Merchant Marine 
Academy consistent with the requirements 
of section 51307(b); 
‘‘(ii) students of a State maritime 
academy, consistent with the requirements 
of section 51507; or 
‘‘(iii) participants in another work-
force training program identified by the 
Administrator; and 
‘‘(7) the vessel will, for the period of an oper-
ating agreement under section 53603 that applies to 
the vessel, meet any other requirement determined 
appropriate by the Administrator. 
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‘‘(e) REQUIREMENTS REGARDING CITIZENSHIP OF 
OWNERS, CHARTERERS, AND OPERATORS.— 
‘‘(1) VESSEL OWNED AND OPERATED BY SEC-
TION 50501 CITIZENS.—A vessel meets the require-
ments of this paragraph if, during the period of an 
operating agreement under this chapter that applies 
to the vessel, the vessel will be owned and operated 
by 1 or more persons that are citizens of the United 
States under section 50501. 
‘‘(2) VESSEL OWNED BY SECTION 50501 CITIZEN 
OR
UNITED
STATES
CITIZEN
TRUST
AND
CHAR-
TERED
TO
DOCUMENTATION
CITIZEN.—A vessel 
meets the requirements of this paragraph if— 
‘‘(A) during the period of an operating 
agreement under this chapter that applies to 
the vessel, the vessel will be— 
‘‘(i) owned by a person that is a cit-
izen of the United States under section 
50501 of this title or that is a United 
States citizen trust; and 
‘‘(ii) demise chartered to a person— 
‘‘(I) that is eligible to document 
the vessel under chapter 121 of this 
title; 
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‘‘(II) the chairman of the board 
of directors, chief executive officer, 
and a majority of the members of the 
board of directors of which are citi-
zens of the United States under sec-
tion 50501 of this title, and are ap-
pointed and subjected to removal only 
upon approval by the Administrator; 
and 
‘‘(III) that certifies to the Ad-
ministrator that there are no treaties, 
statutes, regulations, or other laws 
that would prohibit the covered entity 
for the vessel from performing its ob-
ligations under an operating agree-
ment under this chapter; 
‘‘(B) in the case of a vessel that will be de-
mise chartered to a person that is owned or 
controlled by another person that is not a cit-
izen of the United States under section 50501 
of this title, the other person enters into an 
agreement with the Administrator not to influ-
ence the operation of the vessel in a manner 
that will adversely affect the interests of the 
United States; and 
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‘‘(C) the Administrator and the Secretary 
of Defense notify the appropriate committees of 
Congress that they concur with the certification 
required under subparagraph (A)(ii)(III) and 
have reviewed and agree that there are no other 
legal, operational, or other impediments that 
would prohibit the covered entity for the vessel 
from performing its obligations under an oper-
ating agreement under this chapter. 
‘‘(3) VESSEL OWNED AND OPERATED BY DE-
FENSE CONTRACTOR.—A vessel meets the require-
ments of this paragraph if— 
‘‘(A) during the period of an operating 
agreement under this chapter that applies to 
the vessel, the vessel will be owned and oper-
ated by a person that— 
‘‘(i) is eligible to document a vessel 
under chapter 121 of this title; 
‘‘(ii) 
operates 
or 
manages 
other 
United States-documented vessels for the 
Secretary of Defense, or charters other 
vessels to the Secretary of Defense; 
‘‘(iii) has entered into a special secu-
rity agreement for purposes of this para-
graph with the Secretary of Defense; 
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‘‘(iv) makes the certification described 
in paragraph (2)(A)(ii)(III); and 
‘‘(v) in the case of a vessel described 
in paragraph (2)(B), enters into an agree-
ment referred to in that paragraph; and 
‘‘(B) the Administrator and the Secretary 
of Defense notify the appropriate committees of 
Congress that they concur with the certification 
required under subparagraph (A)(iv), and have 
reviewed and agree that there are no other 
legal, operational, or other impediments that 
would prohibit the covered entity for the vessel 
from performing its obligations under an oper-
ating agreement under this chapter. 
‘‘(4) VESSEL OWNED BY DOCUMENTATION CIT-
IZEN AND CHARTERED TO SECTION 50501 CITIZEN.— 
A vessel meets the requirements of this paragraph if, 
during the period of an operating agreement under 
this chapter that applies to the vessel, the vessel will 
be— 
‘‘(A) owned by a person that is eligible to 
document a vessel under chapter 121; and 
‘‘(B) demise chartered to a person that is 
a citizen of the United States under section 
50501. 
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‘‘§ 53603. Operating agreements 
‘‘(a) IN GENERAL.—The Administrator shall require, 
as a condition of including any vessel in the Fleet, that 
the covered entity for the vessel enter into an operating 
agreement under this section. 
‘‘(b) REQUIREMENTS.— 
‘‘(1) GENERAL REQUIREMENTS.—An operating 
agreement required under subsection (a) shall re-
quire the vessel subject to such agreement to meet 
the following requirements: 
‘‘(A) During the period in which the vessel 
is operating under the agreement— 
‘‘(i) the vessel will be crewed in ac-
cordance with section 8103 of title 46, 
United States Code; 
‘‘(ii) the vessel shall be operated with-
in the Fleet exclusively in foreign com-
merce and not in coastwise trade; 
‘‘(iii) the covered entity will have in 
effect an emergency preparedness agree-
ment described in section 53605 for the 
period of such agreement; and 
‘‘(B) Beginning on the first day of the op-
erating agreement, the vessel will be perma-
nently ineligible for a coastwise endorsement 
under section 12112 of this title or to otherwise 
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participate in the coastwise trade, even if the 
operating agreement is terminated or not re-
newed. 
‘‘(2) VESSEL REPAIR REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the operating agreement 
required under subsection (a) shall— 
‘‘(i) require that the vessel subject to 
such agreement undergo a set percentage, 
agreed to between the Administrator and 
the covered entity, of repair work (exclud-
ing necessary repairs as described in para-
graph (1) of section 466(d) of the Tariff 
Act of 1930 (19 U.S.C. 1466(d)(1))) at a 
shipyard in the United States; and 
‘‘(ii) prohibit the vessel subject to 
such agreement from receiving repairs at a 
shipyard in a foreign country of concern 
(as defined in section 4 of the SHIPS for 
America Act of 2025). 
‘‘(B) EXCEPTION
FOR
INTERIM
VES-
SELS.—The requirements of clauses (i) and (ii) 
of subparagraph (A) shall not apply to interim 
vessels 
included 
in 
the 
fleet 
under 
53602(c)(2)(A)(ii). 
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‘‘(C) AUTHORITY OF THE SECRETARY OF 
TRANSPORTATION.—Notwithstanding any other 
provision of law, the Secretary of Transpor-
tation may modify or waive any requirement of 
subparagraph (A) only if the Secretary, in con-
sultation with the Maritime Security Board— 
‘‘(i) determines that waiving such re-
quirements are in the national security in-
terest of the United States; and 
‘‘(ii) makes such a determination pub-
licly available in writing and submits the 
determination to the appropriate commit-
tees of Congress (as defined in section 4 of 
the Shipbuilding and Harbor Infrastruc-
ture for Prosperity and Security for Amer-
ica Act of 2025). 
‘‘(3) COORDINATION WITH COAST GUARD RE-
GARDING
COASTWISE
TRADE
PROHIBITION.—The 
Administrator shall coordinate with the Secretary of 
the Department in which the Coast Guard is oper-
ating to ensure that any vessel that is, or was, cov-
ered by an operating agreement under this chapter 
is permanently ineligible for a coastwise endorse-
ment under section 12112 of this title or to other-
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wise participate in the coastwise trade, as required 
under paragraph (1)(B). 
‘‘(c) MILESTONES AND PAYMENTS.—The operating 
agreement shall— 
‘‘(1) prescribe specific milestones for project 
completion, as agreed upon between the Adminis-
trator and the covered entity; and 
‘‘(2) specify the schedule of operating support 
payments, and as applicable, capital support pay-
ments and other incentives and payments, based on 
completion of such milestones and consistent with 
the eligible application submitted by the covered en-
tity under section 53602(c)(3)(A), as agreed to by 
the Administrator and the covered entity. 
‘‘(d) INCENTIVES.— 
‘‘(1) STATE OF THE ART TECHNOLOGY INCEN-
TIVES.—An operating agreement required under 
subsection (a) may include incentives to support the 
testing or adoption of state of the art technology, in-
cluding artificial intelligence, advanced shipbuilding 
techniques, automation, modern propulsion systems, 
environmental performance, crew safety, national de-
fense features, and other technologies identified by 
the Maritime Security Board to be relevant in ad-
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vancing the military and economic security of the 
United States. 
‘‘(2) PERFORMANCE
INCENTIVES.—The oper-
ating agreement may include incentive payments for 
eligible entities that exceed the milestones estab-
lished under subsection (c)(1). 
‘‘(e) TERM OF OPERATING AGREEMENT.— 
‘‘(1) IN GENERAL.—An operating agreement to 
participate in the Fleet shall be for a period of 7 
years. 
‘‘(2) RENEWAL OF AGREEMENT.— 
‘‘(A) IN GENERAL.—A covered entity for a 
vessel participating in the Fleet under an oper-
ating agreement under this section may apply 
to renew such operating agreement. 
‘‘(B) RENEWAL
LIMITATION.—An oper-
ating agreement under this section may be re-
newed not more than 2 times. 
‘‘(3) TERMINATION PAYMENT.— 
‘‘(A) NO-FAULT
TERMINATION
DURING 
CONTRACT.—Subject to subparagraph (B), a 
covered entity for a vessel operating under an 
operating agreement under this section shall re-
ceive a termination payment if any of the fol-
lowing applies: 
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‘‘(i) NO-FAULT
TERMINATION.—Cap-
ital support payments provided to a cov-
ered entity under an operating agreement 
are terminated during a contract term. 
‘‘(ii) NO-FAULT
NON-RENEWAL.—An 
operating agreement is not selected to be 
renewed under paragraph (2). 
‘‘(B) 
ADMINISTRATOR
DETERMINATION 
FOR MATERIAL LACK OF COMPLIANCE.—In any 
case in which the Administrator determines 
under subsection (f) that a covered entity for a 
vessel operating under an operating agreement 
under this section materially fails to comply 
with the terms of the operating agreement and, 
due to such failure to comply, the operating 
agreement is terminated or not selected for re-
newal, the Administrator may determine that 
the covered entity is not entitled to a termi-
nation payment and subparagraph (A) shall not 
apply. 
‘‘(C) TERMINATION PAYMENT DEFINED.— 
In this paragraph, the term ‘termination pay-
ment’ means a payment in an amount that 
equals the product of— 
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‘‘(i) the percentage of the remaining 
useful life of the vessel, calculated using 21 
years as the maximum useful life of the 
vessel; multiplied by 
‘‘(ii) the difference in the cost of con-
structing the vessel in the United States 
and the cost of constructing the vessel in 
a foreign country, to the extent such cost 
difference was not recovered by the covered 
entity through payments received under 
any operating agreement under this sec-
tion. 
‘‘(f) TERMINATION BY ADMINISTRATOR FOR LACK OF 
PROGRAM PARTICIPANT COMPLIANCE.—If a covered enti-
ty for a vessel operating under an operating agreement 
under this section materially fails to comply with the 
terms of the operating agreement— 
‘‘(1) the Administrator shall notify the covered 
entity and provide a reasonable opportunity to com-
ply with the operating agreement; and 
‘‘(2) if the covered entity fails to achieve such 
compliance, the Administrator— 
‘‘(A) shall terminate the operating agree-
ment; 
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‘‘(B) shall not renew the operating agree-
ment under subsection (e)(2); and 
‘‘(C) may take steps to recover an amount 
equal to the payments and incentives provided 
to the covered entity under this chapter. 
‘‘(g) NONRENEWAL FOR LACK OF FUNDS.—If, by the 
first day of a fiscal year, sufficient funds have not been 
appropriated under the authority provided by this chapter 
for that fiscal year, then the Administrator shall notify 
the appropriate committees of Congress that operating 
agreements authorized under this chapter for which suffi-
cient funds are not available will not be renewed for that 
fiscal year if sufficient funds are not appropriated by the 
60th day of that fiscal year. 
‘‘(h) RELEASE OF VESSELS FROM OBLIGATIONS.— 
‘‘(1) IN GENERAL.—A vessel covered by an op-
erating agreement under this chapter is released 
from any further obligation under the operating 
agreement, except for the requirements of paragraph 
(2), if— 
‘‘(A) the Administrator terminated or did 
not renew the operating agreement under sub-
section (f); 
‘‘(B) the covered entity elects to not renew 
its operating agreement with the Administrator; 
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‘‘(C) the vessel is ineligible for renewal 
under subsection (e)(2); or 
‘‘(D) funds are not appropriated to the Ad-
ministrator for payments under the operating 
agreement under this chapter for any fiscal 
year by the 60th day of that fiscal year. 
‘‘(2) COASTWISE TRADE.—Consistent with the 
requirements of subsection (b)(1)(B), a vessel re-
leased from obligations under paragraph (1) shall re-
main permanently ineligible for a coastwise endorse-
ment under section 12112 of this title or to other-
wise participate in the coastwise trade. 
‘‘(3) AUTHORITY TO TRANSFER VESSEL.— 
‘‘(A) IN GENERAL.—After a vessel is re-
leased from obligations under paragraph (1), 
the covered entity may transfer and register 
such vessel under a foreign registry that— 
‘‘(i) is acceptable to the Administrator 
and the Secretary of Defense, and allows 
the requisitioning of the vessel for title or 
use, notwithstanding section 56101 of this 
title; and 
‘‘(ii) is not a foreign country of con-
cern. 
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‘‘(B) EMERGENCY
ACQUISITION
OF
VES-
SELS.—If chapter 563 of this title is applicable 
to a vessel after registration in a foreign reg-
istry described in subparagraph (A), then the 
vessel is available to be requisitioned by the 
Secretary of Transportation pursuant to such 
chapter. 
‘‘(i) JUDICIAL REVIEW.—No court shall have juris-
diction to review the Administrator’s decision with respect 
to the award or non-award of an operating agreement 
issued under this chapter. 
‘‘§ 53604. Payments 
‘‘(a) IN GENERAL.—An operating agreement under 
this chapter shall require that the Administrator make 
payments to the covered entity, in accordance with the 
milestones established under section 53603(c)(1) and the 
operating agreement under section 53603 and subject to 
the availability of appropriations under subsection (e). 
‘‘(b) LIMITATIONS.—Notwithstanding any other pro-
vision of this chapter, the Administrator shall not make 
any payment under this chapter for a vessel— 
‘‘(1) with respect to any day for which— 
‘‘(A) the vessel is not operated or main-
tained in accordance with an operating agree-
ment under this chapter; 
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‘‘(B) the vessel is under a charter to the 
United States Government; or 
‘‘(C) except as provided under subsection 
(c), the vessel is engaged in transporting mili-
tary or other preference cargoes under section 
55302(a), 55304, 55305, or 55314 of this title, 
section 2631 of title 10, or any other cargo 
preference law of the United States; or 
‘‘(2) that participates in the coastwise trade in 
violation of the operating agreement and section 
53603(b)(1)(B). 
‘‘(c) PREFERENCE CARGOS.— 
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation may waive the requirement of subsection 
(b)(1)(C) to the extent, in the manner, and on the 
terms the Secretary prescribes, only if— 
‘‘(A) the Administrator, acting in the Ad-
ministrator’s capacity as Director of the Na-
tional Shipping Authority— 
‘‘(i) determines the non-availability of 
qualified vessels of the United States that 
are not enrolled in the Strategic Commer-
cial Fleet; and 
‘‘(ii) notifies the Secretary of such de-
termination; 
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‘‘(B) the Secretary ensures reasonable no-
tice has been provided to the owners and opera-
tors of qualified vessels of the United States 
that are not enrolled in the Strategic Commer-
cial Fleet prior to making the waiver deter-
mination; and 
‘‘(C) by not later than 7 days after issuing 
a waiver under this subsection, the Secretary 
notifies the appropriate committees of Congress 
and posts such waiver on a public website of the 
Maritime Administration. 
‘‘(2) 
NON-DELEGATION.—The 
Secretary 
of 
Transportation shall not delegate the waiver author-
ity provided under paragraph (1). 
‘‘(d) OPERATING AGREEMENT IS OBLIGATION OF 
UNITED STATES GOVERNMENT.—An operating agree-
ment under this chapter constitutes a contractual obliga-
tion of the United States Government to pay the amounts 
provided for in the agreement, subject to the availability 
of appropriations under subsection (e). 
‘‘(e) APPROPRIATIONS FROM THE MARITIME SECU-
RITY TRUST FUND.— 
‘‘(1) IN GENERAL.—There is authorized to be 
appropriated to the Administrator for payments to 
covered entities under this section, out of the Mari-
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time Security Trust Fund established under section 
50301(b) of this title— 
‘‘(A) for fiscal year 2026, $150,000,000; 
‘‘(B) for fiscal year 2027, $300,000,000; 
‘‘(C) for fiscal year 2028, $550,000,000; 
‘‘(D) for fiscal year 2029, $800,000,000; 
‘‘(E) for fiscal year 2030, $1,000,000,000; 
‘‘(F) for fiscal year 2031, $1,200,000,000; 
‘‘(G) for fiscal year 2032, $1,400,000,000; 
‘‘(H) for fiscal year 2033, $1,600,000,000; 
‘‘(I) for fiscal year 2034, $1,900,000,000; 
and 
‘‘(J) for fiscal year 2035, $2,100,000,000. 
‘‘(2) AVAILABILITY.—Amounts made available 
under paragraph (1) shall remain available until ex-
pended. 
‘‘(f) CLARIFICATION.—The provision by the Adminis-
trator of a payment under this section shall not be consid-
ered to be a major Federal action under the National En-
vironmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
or an undertaking for the purposes of division A of subtitle 
III of title 54, United States Code. 
‘‘(g) BUY
AMERICA.—Section 54101(d)(2) shall 
apply to any funds obligated by the Administrator under 
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100 
this section that are used to construct or repair a United 
States-built vessel. 
‘‘§ 53605. National security requirements 
‘‘(a) EMERGENCY PREPAREDNESS AGREEMENT RE-
QUIRED.—The Administrator, in coordination with the 
Secretary of Defense, shall establish an emergency pre-
paredness program under this section under which the 
program participant for an operating agreement under 
this chapter shall agree, as a condition of the operating 
agreement, to enter into an emergency preparedness 
agreement with the Administrator. The Administrator 
shall negotiate and enter into an emergency preparedness 
agreement with each program participant as promptly as 
practicable after the program participant has entered into 
the operating agreement. 
‘‘(b) USE OF EXISTING PROGRAM.—The Adminis-
trator may use an existing emergency preparedness pro-
gram, as of the date of enactment of the Shipbuilding and 
Harbor Infrastructure for Prosperity and Security for 
America Act of 2025, to satisfy the requirements of sub-
section (a). 
‘‘(c) TERMS
OF AGREEMENT.—The terms of an 
emergency preparedness agreement under this section 
shall— 
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101 
‘‘(1) provide that upon request by the Secretary 
of Defense during time of war or national emer-
gency, or whenever determined by the Secretary of 
Defense to be necessary for national security or con-
tingency operation (as that term is defined in section 
101(a) of title 10), the program participant shall 
make available commercial transportation resources 
(including services) described in subsection (e) to the 
Secretary of Defense; 
‘‘(2) shall include such additional terms as may 
be established by the Administrator and the Sec-
retary of Defense; and 
‘‘(3) shall allow for the modification or addition 
of terms upon agreement by the Administrator and 
the program participant and the approval by the 
Secretary of Defense. 
‘‘(d) PARTICIPATION AFTER EXPIRATION OF OPER-
ATING AGREEMENT.—The Administrator may not require, 
through an emergency preparedness agreement or an op-
erating agreement, that a program participant covered by 
an operating agreement continue to participate in an 
emergency preparedness agreement after the operating 
agreement has expired according to its terms or is other-
wise no longer in effect. After the expiration of an emer-
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102 
gency preparedness agreement, a program participant 
may voluntarily continue to participate in the agreement. 
‘‘(e) RESOURCES MADE AVAILABLE.—The commer-
cial transportation resources to be made available under 
an emergency preparedness agreement shall include ves-
sels or capacity in vessels, terminal facilities, management 
services, and other related services, or any agreed portion 
of such nonvessel resources for activation as the Secretary 
of Defense may determine to be necessary, seeking to min-
imize disruption of the program participant’s service to 
commercial customers. 
‘‘(f) COMPENSATION.— 
‘‘(1) IN GENERAL.—The Administrator shall in-
clude in each emergency preparedness agreement 
provisions approved by the Secretary of Defense 
under which the Secretary of Defense shall pay fair 
and reasonable compensation for all commercial 
transportation resources provided pursuant to this 
section. 
‘‘(2) SPECIFIC REQUIREMENTS.—Compensation 
under this subsection— 
‘‘(A) shall not be less than the program 
participant’s commercial market charges for 
like transportation resources; 
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103 
‘‘(B) shall be fair and reasonable consid-
ering all circumstances; 
‘‘(C) shall be provided from the time that 
a vessel or resource is required by the Secretary 
of Defense until the time it is redelivered to the 
program participant and is available to reenter 
commercial service; and 
‘‘(D) shall be in addition to and shall not 
in any way reflect amounts payable under sec-
tion 53604 of this title. 
‘‘(g) TEMPORARY REPLACEMENT VESSELS.—Not-
withstanding section 55302(a), 55304, 55305, or 55314 
of this title, section 2631 of title 10, or any other cargo 
preference law of the United States— 
‘‘(1) a program participant may operate or em-
ploy in foreign commerce a foreign vessel, or capac-
ity in a foreign vessel, as a temporary replacement 
for a vessel of the United States or vessel of the 
United States capacity that is activated by the Sec-
retary of Defense under an emergency preparedness 
agreement or a primary Department of Defense sea-
lift-approved readiness program; and 
‘‘(2) such replacement vessel or vessel capacity 
shall be eligible during the replacement period to 
transport preference cargoes subject to sections 
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104 
55302(a), 55304, 55305, and 55314 of this title and 
section 2631 of title 10, to the same extent as the 
eligibility of the vessel or vessel capacity replaced. 
‘‘(h) REDELIVERY AND LIABILITY OF THE UNITED 
STATES FOR DAMAGES.— 
‘‘(1) IN
GENERAL.—All commercial transpor-
tation resources activated under an emergency pre-
paredness agreement shall, upon termination of the 
period of activation, be redelivered to the program 
participant in the same good order and condition as 
when received, less ordinary wear and tear, or the 
Secretary of Defense shall fully compensate the pro-
gram participant for any necessary repair or replace-
ment. 
‘‘(2) LIMITATION ON UNITED STATES LIABIL-
ITY.—Except as may be expressly agreed in an 
emergency preparedness agreement, or as otherwise 
provided by law, the Government shall not be liable 
for disruption of a program participant’s commercial 
business or other consequential damages to the pro-
gram participant arising from the activation of com-
mercial transportation resources under an emer-
gency preparedness agreement. 
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105 
‘‘§ 53606. Regulations 
‘‘The Administrator and the Secretary of Defense 
may each prescribe rules as necessary to carry out their 
respective responsibilities under this chapter.’’. 
(b) CONFORMING AMENDMENTS.—Section 51307(b) 
of title 46, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A)— 
(i) by striking ‘‘, or the’’ and inserting 
‘‘, the’’; and 
(ii) by inserting ‘‘, or the Strategic 
Commercial Fleet under chapter 536 of 
this title’’ before ‘‘to—’’; and 
(B) in subparagraph (A), by striking ‘‘or 
Tanker Security Fleet vessel’’ and inserting 
‘‘Tanker Security Fleet vessel, or Strategic 
Commercial Fleet vessel’’; and 
(2) in paragraph (2), by striking ‘‘or 534’’ and 
inserting ‘‘534, or 536’’. 
(c) CLERICAL AMENDMENT.—The table of chapters 
for subtitle V of title 46, United States Code, is amended 
by inserting after the item relating to chapter 535 the fol-
lowing: 
‘‘536. Strategic Commercial Fleet ........................................................... 53601’’. 
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106 
SEC. 402. FLEET TESTING AND BRIEFING REQUIREMENT. 
(a) TEST.—Not later than 180 days after the date 
of enactment of this Act, the Commander of the United 
States Transportation Command, in coordination with the 
Secretary of the Navy and the Maritime Administrator, 
shall devise a tabletop exercise to test the effective control 
of the Maritime Security Fleet under chapter 531 of title 
46, United States Code, and the Tanker Security Fleet 
under chapter 534 of such title, in case of crisis or war. 
(b) BRIEFING.—After completion of the tabletop ex-
ercise under subsection (a), the Commander shall submit 
to the appropriate committees of Congress a briefing on 
the results of such tabletop exercise. 
(c) ANNUAL TESTING.—Beginning not later than 1 
year after the briefing is submitted under subsection (b), 
the Commander shall— 
(1) carry out tabletop drills to test effective 
control of the Maritime Security Fleet under chapter 
531 of title 46, United States Code, and the Tanker 
Security Fleet under chapter 534 of such title; and 
(2) provide to the appropriate committees of 
Congress a briefing after each such drill on the re-
sults of such drill. 
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107 
SEC. 403. ASSESSMENT OF UNDERSEA CABLE REPAIR CON-
TINGENCIES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense, 
in coordination with the Maritime Administrator, the Fed-
eral Communications Commission, and other relevant 
Federal agencies, shall submit to the appropriate commit-
tees of Congress an assessment on the ability and pre-
paredness of the USNS Zeus and the Cable Security Fleet 
under chapter 532 of title 46, United States Code, to re-
pair transoceanic submarine fiber optic cables that may 
be damaged or cut by adversaries. 
(b) CONTENTS.—The assessment under subsection 
(a) shall include— 
(1) a description of preparedness to address a 
situation in which the cables of partner countries in 
both the Pacific and Atlantic Oceans are damaged 
or severed at or around the same time; 
(2) a determination as to how long it would 
take for the Cable Security Fleet, in coordination 
with partner countries, to repair such cables; and 
(3) the options available to provide connectivity 
in an emergency or crisis caused by, or related to, 
the damaging or severing of such cables. 
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108 
SEC. 404. MODIFICATION TO DUTIES RELATING TO EQUIP-
MENT AND REPAIR OF VESSELS. 
(a) IN GENERAL.—Section 466 of the Tariff Act of 
1930 (19 U.S.C. 1466) is amended— 
(1) in subsection (a), in the first sentence, by 
striking ‘‘50 per centum on the cost thereof in such 
foreign country’’ and inserting ‘‘70 percent of the 
cost thereof in such foreign country or, in the case 
of a foreign country of concern (as defined in section 
4 of the Shipbuilding and Harbor Infrastructure for 
Prosperity and Security for America Act of 2025), 
200 percent of the cost thereof in such country’’; 
and 
(2) by adding at the end the following: 
‘‘(i) TEMPORARY EXCEPTION FOR REPAIRS MADE IN 
CERTAIN COUNTRIES.— 
‘‘(1) IN GENERAL.—During the period begin-
ning on the date of enactment of the Shipbuilding 
and Harbor Infrastructure for Prosperity and Secu-
rity for America Act of 2025 and ending on Decem-
ber 31, 2035, the duty imposed under subsection (a) 
shall, except as provided by paragraph (2), not apply 
to the cost of equipment, or any part of equipment, 
purchased for, or expenses of repair parts or mate-
rials to be used for, or repairs made in a foreign 
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109 
country on, a vessel engaged in foreign trade if the 
Maritime Administrator confirms that— 
‘‘(A) the vessel— 
‘‘(i) is participating in— 
‘‘(I) the Maritime Security Fleet 
under chapter 531 of title 46, United 
States Code; 
‘‘(II) the Cable Security Fleet 
under chapter 532 of such title; 
‘‘(III) the Tanker Security Fleet 
under chapter 534 of such title; or 
‘‘(IV) the Strategic Commercial 
Fleet under chapter 536 of such title; 
or 
‘‘(ii) has entered into an emergency 
preparedness 
agreement 
under 
section 
53107 or 53407 of title 46, United States 
Code, or a contingency agreement under 
section 53207 of such title, or has other-
wise entered into a voluntary agreement 
and plan of action with the Maritime Ad-
ministrator as authorized under section 
708(c) of the Defense Production Act of 
1950 (50 U.S.C. 4558(c)); and 
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110 
‘‘(B) the owner or master of the vessel cer-
tifies to the Maritime Administrator in writing 
that a good faith effort was made to purchase 
equipment or carry out repairs in a shipyard in 
the United States. 
‘‘(2) INAPPLICABILITY TO FOREIGN COUNTRIES 
OF
CONCERN.—Duty-free treatment under para-
graph (1) does not apply with respect to the cost of 
equipment, or any part of equipment, purchased for 
repairs made in a foreign country of concern (as de-
fined in section 4 of the Shipbuilding and Harbor 
Infrastructure for Prosperity and Security for Amer-
ica Act of 2025) on a vessel engaged in foreign 
trade, or expenses of repair parts or materials to be 
used for such repairs, or other expenses of such re-
pairs.’’. 
(b) REPORT REQUIRED.—Not less than 2 years after 
the date of enactment of this Act, and every 2 years there-
after through December 31, 2035, the Maritime Adminis-
trator shall submit to the appropriate committees of Con-
gress a report— 
(1) describing the number of vessels that paid 
the duties under section 466 of the Tariff Act of 
1930 (19 U.S.C. 1466), and the location where the 
repairs described in such section occurred; 
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111 
(2)(A) identifying shipyards of the United 
States that have capacity to carry out vessel repairs; 
and 
(B) describing the extent to which vessels of the 
United States chose to conduct repairs in such ship-
yards during the period covered by the report; 
(3) evaluating the effectiveness of section 466 
of the Tariff Act of 1930 (19 U.S.C. 1466) in en-
couraging the repair of vessels of the United States 
in shipyards of the United States; and 
(4) making recommendations for additional reg-
ulatory or legislative steps which could be taken to 
support the United States vessel repair industrial 
base. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply with respect to parts, materials, and 
equipment purchased, and repairs to vessels initiated, 
after the date of enactment of this Act. 
Subtitle B—Cargo Preference 
SEC. 411. UNITED STATES GOVERNMENT CARGO. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) only the Maritime Administrator, acting in 
the Administrator’s capacity as Director of the Na-
tional Shipping Authority, has the authority to de-
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112 
termine the non-availability of qualified capacity of 
vessels of the United States (referred to in this sub-
section as ‘‘qualified United States flag capacity’’) 
at fair and reasonable rates for commercial vessels 
of the United States to meet the requirements of 
section 55305 or 55314 of title 46, United States 
Code; 
(2) the requirements of section 55305 or 55314 
of title 46, United States Code, may only be waived 
temporarily by the President, the Secretary of De-
fense, or the Secretary of Transportation during a 
declared emergency justifying such a temporary 
waiver, following a determination by the Maritime 
Administrator, acting in the Maritime Administra-
tor’s capacity as Director of the National Shipping 
Authority, of the non-availability of qualified United 
States flag capacity at fair and reasonable rates for 
commercial vessels of the United States pursuant to 
section 55305(d) of title 46, United States Code; 
and 
(3) nothing in title II of the Food for Peace Act 
(7 U.S.C. 1721 et seq.) authorizes an agency to 
waive the requirements of section 55305 or 55314 of 
title 46, United States Code, without first obtain-
ing— 
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(A) delegated authority from the President 
of the United States; 
(B) an emergency declaration justifying 
such a temporary waiver, pursuant to section 
55305(d) of title 46, United States Code; and 
(C) a determination by the Maritime Ad-
ministrator, acting in the Maritime Administra-
tor’s capacity as Director of the National Ship-
ping Authority, on the non-availability of quali-
fied United States flag capacity at fair and rea-
sonable rates for commercial vessels of the 
United States pursuant to section 55305(d) of 
title 46, United States Code. 
(b) APPLICABLE PERCENTAGE.— 
(1) IN GENERAL.—Section 55305(a) of title 46, 
United States Code, is amended by striking ‘‘at least 
50’’ and inserting ‘‘100’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall take effect on the date that 
is 180 days after the date of enactment of this Act. 
(c) WAIVER.—Section 55305(d)(1) of title 46, United 
States Code, is amended to read as follows: 
‘‘(1) WAIVER AUTHORITY.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, when the President, the 
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Secretary of Defense, or the Secretary of 
Transportation declares the existence of an 
emergency justifying a temporary waiver of this 
section or section 55314 of this title, the Presi-
dent, the Secretary of Defense, or the Secretary 
of Transportation, following a determination by 
the Maritime Administrator, acting in the Ad-
ministrator’s capacity as Director, National 
Shipping Authority, in consultation with the 
Maritime Security Board, of the non-availability 
of qualified United States flag capacity at fair 
and reasonable rates for commercial vessels of 
the United States to meet the requirements of 
this section or section 55314 of this title, may 
waive compliance with such section to the ex-
tent, in the manner, and on the terms the Mari-
time Administrator, acting in such capacity, 
prescribes, and no other waivers of the require-
ments of this section or section 55314 of this 
title shall be authorized. 
‘‘(B) INTERAGENCY AGREEMENT FOR THE 
DETERMINATION OF NON-AVAILABILITY.— 
‘‘(i) IN
GENERAL.—Not later than 
180 days after the date of enactment of 
the SHIPS for America Act of 2025, the 
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Maritime Security Advisor shall facilitate 
an interagency agreement between the 
Maritime Administrator and the head of 
each agency subject to the requirements of 
subsection (a). 
‘‘(ii) CONTENTS.—Each interagency 
agreement shall include— 
‘‘(I) an explanation of the proc-
ess the agency shall follow to request 
a determination of non-availability by 
the Maritime Administrator under 
subparagraph (A); 
‘‘(II) a standard process that the 
Maritime Administrator shall follow 
for making such a determination of 
non-availability; and 
‘‘(III) deadlines— 
‘‘(aa) for when an agency 
shall submit a request for such a 
determination of non-availability 
prior to the transportation of 
equipment, materials, or com-
modities subject to subsection 
(a); and 
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‘‘(bb) for when the Maritime 
Administrator shall make such a 
determination of non-availability 
after receiving a request for a 
temporary waiver under subpara-
graph (A). 
‘‘(iii) 
CONGRESSIONAL
NOTIFICA-
TION.—The Maritime Security Advisor 
shall notify the appropriate committees of 
Congress— 
‘‘(I) 
when 
each 
interagency 
agreement required under this sub-
paragraph is finalized; and 
‘‘(II) any time that an inter-
agency agreement required under this 
subparagraph is updated.’’. 
(d) CLARIFICATION.—Section 55305(d)(3)(B) of title 
46, United States Code, is amended by inserting ‘‘Mari-
time Security Board and the’’ after ‘‘to the’’. 
SEC. 412. CARGO PREFERENCE IMPLEMENTATION REGULA-
TIONS. 
(a) REGULATIONS AND GUIDANCE.—Not later than 
180 days after the date of enactment of this Act, the Mari-
time Administrator, notwithstanding any other provision 
of law, regulation, or administrative order, shall— 
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(1) promulgate regulations under subchapter 
III of chapter 5 of title 5, United States Code, to 
fully implement and ensure compliance with sections 
55305, 55314, 55315, and 55316 of title 46, United 
States Code; 
(2) issue interagency guidance to other Federal 
departments and agencies on how to administer the 
programs that are subject to such sections in accord-
ance with those sections, as applicable; and 
(3) publish such guidance in the Federal Reg-
ister and on the website of the Maritime Administra-
tion. 
(b) CONSULTATION.—The Administrator may consult 
with the Food Aid Consultative Group established by sec-
tion 205 of the Food for Peace Act (7 U.S.C. 1725) in 
carrying out this section. 
(c) REPEAL OF EARLIER REGULATORY DEADLINE.— 
Subsection (a) of section 3502 of the James M. Inhofe 
National Defense Authorization Act for Fiscal Year 2023 
(46 U.S.C. 55305 note; Public Law 117–263), is repealed. 
SEC. 413. CARGO PREFERENCE OVERSIGHT AND AUDIT. 
Section 55301 of title 46, United States Code, is 
amended— 
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(1) in subsection (a)(2), by striking ‘‘section 
55305’’ and inserting ‘‘sections 55305, 55314, 
55315, and 55316’’; and 
(2) by adding at the end the following: 
‘‘(d) NOTIFICATION OF VIOLATION.—The Maritime 
Administrator shall— 
‘‘(1) upon receiving any credible information, as 
determined by the Administrator, that a Federal de-
partment or agency that administers a program cov-
ered by a report required under subsection (a) was 
not in compliance with the requirements of section 
55305, 55314, 55315, or 55316 of this title (as ap-
plicable), notify the Committee on Commerce, 
Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of 
the House of Representatives not later than 14 days 
after receiving such information; and 
‘‘(2) upon receiving any credible information, as 
determined by the Administrator, that a Federal de-
partment or agency that administers a program cov-
ered by a report required under subsection (a) was 
not in compliance with the requirements of section 
2631 of title 10, United States Code, notify the 
Committee on Commerce, Science, and Transpor-
tation and the Committee on Armed Services of the 
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Senate and the Committee on Transportation and 
Infrastructure and the Committee on Armed Serv-
ices of the House of Representatives not later than 
14 days after receiving such information.’’. 
SEC. 414. FINANCING THE TRANSPORTATION OF AGRICUL-
TURAL PRODUCTS AND OTHER CARGO. 
(a) IN GENERAL.—Subchapter II of chapter 553 of 
title 46, United States Code, is amended by inserting after 
section 55315 the following: 
‘‘§ 55316. Financing the transportation of agricultural 
products and other cargo 
‘‘(a) FINANCING OF INCREASED COSTS.—The Sec-
retary of Transportation shall finance any reasonable in-
creased ocean freight costs, as assessed by the Maritime 
Administrator, incurred in any fiscal year by a covered 
agency that result from the application of section 55305 
of this title, including the application of such section to 
the activities specified in section 55314(b) of this title. 
‘‘(b) REIMBURSEMENT OF INCREASED COSTS.— 
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation shall reimburse a covered agency for the 
amount by which, in any fiscal year— 
‘‘(A) the total cost of ocean freight and 
ocean freight differential for which obligations 
are incurred by the covered agency under sec-
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tion 55305 of this title, including pursuant to 
the application of such section to the activities 
specified in section 55314(b) of this title; ex-
ceeds; and 
‘‘(B) 20 percent of the total value of the 
cargo, including agricultural products, trans-
ported under such section 55305, including pur-
suant to the application of such section to such 
activities, and the cost of the ocean freight and 
ocean freight differential, as assessed by the 
Maritime Administrator, on which obligations 
are incurred by the covered agency during that 
fiscal year. 
‘‘(2) AGRICULTURAL PRODUCTS SHIPPED FROM 
INVENTORY.—For purposes of this subsection, agri-
cultural products shipped from the inventory of the 
Corporation shall be valued as provided in section 
412(d) of the Food for Peace Act (7 U.S.C. 
1736f(d)). 
‘‘(c) INTERAGENCY AGREEMENT.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of the SHIPS for Amer-
ica Act of 2025, the Secretary of Transportation 
shall enter into an interagency agreement with the 
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head of each agency entitled to a reimbursement 
under subsection (b)(1). 
‘‘(2) CONTENTS.—Each interagency agreement 
shall include— 
‘‘(A) an explanation of the process the 
agency shall follow to receive a reimbursement 
from the Secretary of Transportation under this 
section; 
‘‘(B) a standard methodology for calcu-
lating the reimbursement an agency is entitled 
to under this section; and 
‘‘(C) deadlines— 
‘‘(i) by which an agency shall submit 
a reimbursement request in order to re-
ceive reimbursement; and 
‘‘(ii) by which the Secretary of Trans-
portation shall approve a properly filed re-
imbursement request, which date shall not 
be more than 90 days after the date on 
which the reimbursement request is sub-
mitted. 
‘‘(3) 
CONGRESSIONAL
NOTIFICATION.—The 
Secretary of Transportation shall notify the appro-
priate committees of Congress— 
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‘‘(A) when each interagency agreement re-
quired under this subsection is finalized; and 
‘‘(B) any time that an interagency agree-
ment required under this subsection is updated. 
‘‘(d) AGRICULTURAL PRODUCT DEFINED.—In this 
section, the term ‘agricultural product’ has the meaning 
given the term in section 55314 of title 46, United States 
Code. 
‘‘(e) AUDIT REQUIRED.— 
‘‘(1) IN GENERAL.—For each fiscal year, the 
Inspector General of the Department of Transpor-
tation shall conduct an audit of all reimbursements 
made by the Secretary of Transportation under this 
section during such fiscal year to ensure all such re-
imbursements were made in accordance with the re-
quirements of this section. 
‘‘(2) DOCUMENTS REQUIRED.—Each agency en-
titled to reimbursement under subsection (b) shall— 
‘‘(A) provide to the Inspector General any 
documents or other information requested by 
the Inspector General in order to complete the 
audit, including the information described in 
subparagraph (B); and 
‘‘(B) require any party that enters into a 
contract with such agency related to the imple-
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mentation of section 55305 of this title, or any 
activities specified in section 55314(b) of this 
title, to provide the agency, as a condition for 
entering into such contract, with information 
relevant for the audit as determined by the In-
spector General. 
‘‘(3) REPORT.—Not later than 90 days after 
the end of each fiscal year, the Inspector General 
shall submit a report detailing the findings of such 
audit with respect to such fiscal year to the appro-
priate committees of Congress and make the report 
publicly available. 
‘‘(f) AUTHORIZATION
OF
APPROPRIATIONS.—For 
each fiscal year, there is authorized to be appropriated, 
out of the Maritime Security Trust Fund established 
under section 50301(b) of this title, an amount sufficient 
to reimburse the Secretary of Transportation for the costs 
incurred under this section, including administrative ex-
penses. 
‘‘(g) DEFINITION OF COVERED AGENCY.—For pur-
poses of this section, the term ‘covered agency’ means any 
agency that administers an activity specified in section 
55314(b) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter II of chapter 553 of title 46, United States 
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Code, is amended by inserting after the item relating to 
section 55315 the following: 
‘‘55316. Financing the transportation of agricultural products and other 
cargo.’’. 
SEC. 415. IMPORTATION FROM CHINA ON AMERICAN SHIPS. 
(a) IN GENERAL.—Chapter 605 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 60508. Importation on American ships 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, not less than the covered percentage, as de-
scribed in subsection (b), of covered goods by tonnage im-
ported into the United States from a foreign port shall 
be imported on a vessel that is— 
‘‘(1) a vessel of the United States; 
‘‘(2) crewed by United States mariners; and 
‘‘(3) built in the United States. 
‘‘(b) PERCENTAGE.—A covered percentage under this 
section is the following: 
‘‘(1) One percent in the year that is 5 years 
after the date of enactment of this section. 
‘‘(2) Two percent in the year that is 6 years 
after the date of enactment of this section. 
‘‘(3) Three percent in the year that is 7 years 
after the date of enactment of this section. 
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‘‘(4) Four percent in the year that is 8 years 
after the date of enactment of this section. 
‘‘(5) Five percent in the year that is 9 years 
after the date of enactment of this section. 
‘‘(6) Six percent in the year that is 10 years 
after the date of enactment of this section. 
‘‘(7) Seven percent in the year that is 11 years 
after the date of enactment of this section. 
‘‘(8) Eight percent in the year that is 12 years 
after the date of enactment of this section. 
‘‘(9) Nine percent in the year that is 13 years 
after the date of enactment of this section. 
‘‘(10) Ten percent in the year that is 14 years 
after the date of enactment of this section. 
‘‘(c) APPLICATION.—The requirement under sub-
section (a) shall be applied to any shipper importing goods 
into the United States that originates from a foreign port 
or place. 
‘‘(d) FINE FOR FAILURE TO COMPLY.— 
‘‘(1) IN GENERAL.—On an annual basis, the 
Maritime Administrator shall issue a fine to any en-
tity failing to comply with the requirements under 
this section. 
‘‘(2) AMOUNT.—The amount of a fine under 
this section shall be in an amount set by the Mari-
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time Administrator that is greater than the dif-
ference in cost between— 
‘‘(A) the cost of employing a vessel of the 
United States that is built in the United States 
and crewed by United States mariners; and 
‘‘(B) the cost of employing a foreign vessel 
that is registered under the laws of a country 
with an open registry and is built outside of the 
United States. 
‘‘(3) USE OF AMOUNTS.—Any amount collected 
under this subsection shall be deposited in the Mari-
time Security Trust Fund. 
‘‘(e) RULEMAKING REQUIRED.—Not later than 4 
years after the date of enactment of this section, the Mari-
time Administrator, in coordination with the Secretary of 
Homeland Security and the Chairman of the Federal Mar-
itime Commission, shall promulgate a final rule that es-
tablishes a system that— 
‘‘(1) identifies persons and goods that are sub-
ject to the requirements of this section; 
‘‘(2) establishes requirements for such persons 
and goods that meet the applicable percentages es-
tablished under subsection (b); 
‘‘(3) establishes clear enforcement mechanisms 
to ensure compliance with this section; and 
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‘‘(4) determines the amount of a fine issued 
under subsection (d). 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COUNTRY WITH AN OPEN REGISTRY.—The 
term ‘country with an open registry’ means a coun-
try that allows vessels to be documented under the 
laws of the country, without regard to the citizen-
ship of the owner of the vessel or the citizenship of 
the crew of the vessel. 
‘‘(2) COVERED
GOODS.—The term ‘covered 
goods’ means goods manufactured in the People’s 
Republic of China. 
‘‘(3) SHIPPER.—The term ‘shipper’ has the 
meaning given such term in section 40102 of this 
title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 605 of title 46, United States Code, is amend-
ed by adding at the end the following: 
‘‘60508. Importation on American ships.’’. 
SEC. 416. PRIORITY FOR VESSELS OF THE UNITED STATES. 
(a) IN GENERAL.—Part D of subtitle V of title 46, 
United States Code, is amended by inserting after chapter 
553 the following: 
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‘‘CHAPTER 555—PRIORITY FOR VESSELS 
OF THE UNITED STATES 
‘‘Sec. 
‘‘55501. Priority for vessels of the United States. 
‘‘§ 55501. Priority for vessels of the United States 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may allow a vessel of the United States to be given priority 
at any port in the United States, ahead of a waiting vessel 
of a foreign country of concern (as defined in section 4 
of the SHIPS for America Act of 2025) or owned by a 
foreign entity of concern (as so defined). 
‘‘(b) EXCEPTION.—Notwithstanding subsection (a), 
if the Secretary of Transportation finds that it is in the 
national interest, the Secretary may eliminate the priority 
under this section at any port. The Secretary shall report 
to the appropriate committees of Congress, as defined in 
section 4 of the SHIPS for America Act of 2025, by not 
later than 30 days after an action eliminating priority 
under this section.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle V of title 46, United States Code, is amended 
by inserting after the item relating to chapter 553 the fol-
lowing: 
‘‘555. Priority for vessels of the United States ....................................... 55501’’. 
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SEC. 417. MOVING CARGO ON VESSELS OF THE UNITED 
STATES. 
(a) ASSESSMENT REQUIRED.—Not later than 180 
days after the date of enactment of this Act, the Maritime 
Security Advisor, in consultation with the Secretary of 
Transportation, the Secretary of Commerce, the Chairman 
of the Federal Maritime Commission, and the United 
States Trade Representative, shall— 
(1) conduct an assessment that identifies au-
thorities available under current Federal law, as of 
the date of such identification, that may be utilized 
to incentivize the movement of commercial cargo on 
vessels of the United States in international com-
merce; 
(2) review methods for greater assurances of 
access, in crisis and conflict, to vessels of inter-
national allies and partners of the United States; 
and 
(3) makes recommendations to the President to 
utilize such authorities. 
(b) INCLUSIONS.—The assessment required under 
subsection (a) shall include an evaluation of— 
(1) tax benefits for taxpayers who ship goods 
aboard vessels of the United States; 
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(2) modifications to import and export duties 
for goods imported or exported aboard vessels of the 
United States; 
(3) privileges for vessels of the United States 
that enable vessels of the United States to provide 
improved service relative to other vessels in inter-
national commerce; and 
(4) any other authorities that would incentivize 
the movement of goods aboard vessels of the United 
States. 
(c) REPORT TO CONGRESS.—Upon carrying out the 
assessment required under subsection (a), the Maritime 
Security Advisor shall submit to the appropriate commit-
tees of Congress— 
(1) a list of the recommendations made under 
subsection (a)(3); and 
(2) a list of additional actions that could be 
taken by Congress to further incentivize the move-
ment of commercial cargo on vessels of the United 
States. 
(d) DEFINITION.—In this section, the term ‘‘vessel 
of the United States’’ has the meaning given the term in 
section 116 of title 46, United States Code. 
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SEC. 418. TRANSPORTATION REQUIREMENTS FOR CERTAIN 
EXPORTS SPONSORED BY THE SECRETARY 
OF AGRICULTURE. 
Section 55314 of title 46, United States Code, is 
amended— 
(1) by inserting before subsection (b) the fol-
lowing: 
‘‘(a) APPLICABILITY.—The requirements under sec-
tion 55305 of this title shall apply with respect to the ac-
tivities specified in subsection (b).’’; 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘Secretary of Agriculture or the 
Commodity Credit Corporation’’ and inserting 
‘‘Federal Government’’; 
(B) in paragraph (1), by inserting ‘‘titles 
I, II, or III of’’ after ‘‘carried out under’’; 
(C) in paragraph (4), by striking ‘‘agricul-
tural commodities or their products’’ and in-
serting ‘‘agricultural products’’; 
(D) in paragraph (5), by striking ‘‘agricul-
tural commodities or their products’’ and in-
serting ‘‘agricultural products’’; 
(E) in paragraph (6), by striking ‘‘agricul-
tural commodities or their products’’ and in-
serting ‘‘agricultural products’’; 
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(F) in paragraph (7), by striking ‘‘agricul-
tural commodities’’ and inserting ‘‘agricultural 
products’’; 
(G) by redesignating paragraphs (4), (5), 
(6), and (7) as paragraphs (6), (7), (8), and 
(9), respectively; and 
(H) by inserting after paragraph (3) the 
following: 
‘‘(4) carried out under the Food for Progress 
Act of 1985 (7 U.S.C. 1736o); 
‘‘(5) carried out under the McGovern-Dole 
International Food for Education and Child Nutri-
tion Program under section 3107 of the Farm Secu-
rity and Rural Investment Act of 2002 (7 U.S.C. 
1736o–1);’’; and 
(3) by adding at the end the following: 
‘‘(c) AGRICULTURAL PRODUCT DEFINED.—In this 
section, the term ‘agricultural product’ means any food 
product, including an agricultural commodity (as such 
term is defined in section 402 of the Food for Peace Act 
(7 U.S.C. 1732)), specialty crop (as such term is defined 
in section 3 of the Specialty Crops Competitiveness Act 
of 2004 (7 U.S.C. 1621 note)), or processed food product, 
exported from the United States.’’. 
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SEC. 419. CLARIFYING AMENDMENTS. 
(a) AGRICULTURAL COMMODITIES EMERGENCY AS-
SISTANCE CLARIFICATION.—Section 202(a) of the Food 
for Peace Act (7 U.S.C. 1722(a)) is amended by striking 
‘‘Notwithstanding’’ and inserting ‘‘Subject to the require-
ments of sections 55305 and 55314 of title 46, United 
States Code, and notwithstanding’’. 
(b) ADMINISTRATIVE PROVISIONS CLARIFICATION.— 
Section 407(b)(2)(A) of the Food for Peace Act (7 U.S.C. 
1736a(b)(2)(A)) is amended by striking ‘‘Notwith-
standing’’ and inserting ‘‘Subject to the requirements of 
sections 55305 and 55314 of title 46, United States Code, 
and notwithstanding’’. 
(c) EMERGENCY FOOD SECURITY PROGRAM CLARI-
FICATION.—Section 491(c)(1) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2292(c)(1)) is amended by insert-
ing ‘‘and the requirements of sections 55305 and 55314 
of title 46, United States Code’’ after ‘‘section 492’’. 
SEC. 420. ENERGIZING AMERICAN SHIPBUILDING. 
(a) NATIONAL
POLICY
ON
STRATEGIC
ENERGY 
ASSET EXPORT TRANSPORTATION.— 
(1) REQUIREMENT
FOR
TRANSPORTATION
OF 
EXPORTS
OF
NATURAL
GAS
ON
VESSELS
DOCU-
MENTED UNDER LAWS OF THE UNITED STATES.— 
Section 3 of the Natural Gas Act (15 U.S.C. 717b) 
is amended by adding at the end the following: 
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‘‘(g) TRANSPORTATION OF EXPORTS OF NATURAL 
GAS ON VESSELS DOCUMENTED UNDER LAWS OF THE 
UNITED STATES.— 
‘‘(1) CONDITION
FOR
APPROVAL.—Except as 
provided in paragraph (7), with respect to an appli-
cation to export natural gas under subsection (a), 
the Commission shall include in the order issued for 
that application the condition that the person trans-
port the natural gas on a vessel that meets the re-
quirements described in paragraph (3). 
‘‘(2) PURPOSE.—The purpose of the require-
ment under paragraph (1) is to ensure that, of all 
natural gas exported by vessel in a calendar year, 
the following percentage is exported by a vessel that 
meets the requirements described in paragraph (3): 
‘‘(A) In each of the 7 calendar years fol-
lowing the calendar year in which this sub-
section is enacted, not less than 2 percent. 
‘‘(B) In each of the 8th and 9th calendar 
years following the calendar year in which this 
subsection is enacted, not less than 3 percent. 
‘‘(C) In each of the 10th and 11th cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
4 percent. 
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‘‘(D) In each of the 12th and 13th cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
6 percent. 
‘‘(E) In each of the 14th and 15th cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
7 percent. 
‘‘(F) In each of the 16th and 17th cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
9 percent. 
‘‘(G) In each of the 18th and 19th cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
11 percent. 
‘‘(H) In each of the 20th and 21st cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
13 percent. 
‘‘(I) In the 22nd calendar year after the 
calendar year in which this subsection is en-
acted and each calendar year thereafter, not 
less than 15 percent. 
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‘‘(3) REQUIREMENTS FOR VESSELS.—A vessel 
meets the requirements described in this para-
graph— 
‘‘(A) with respect to each of the 5 calendar 
years following the calendar year in which this 
subsection is enacted— 
‘‘(i) if— 
‘‘(I) the vessel is documented 
under the laws of the United States; 
and 
‘‘(II) with respect to any retrofit 
work necessary for the vessel to ex-
port natural gas— 
‘‘(aa) such work is done in a 
shipyard in the United States; 
and 
‘‘(bb) any component of the 
vessel listed in paragraph (4) 
that 
is 
installed 
during 
the 
course of such work is manufac-
tured in the United States; or 
‘‘(ii) if— 
‘‘(I) the vessel is built in the 
United States; 
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137 
‘‘(II) the vessel is documented 
under the laws of the United States; 
‘‘(III) all major components of 
the hull or superstructure of the ves-
sel are manufactured (including all 
manufacturing processes from the ini-
tial melting stage through the applica-
tion of coatings for iron or steel prod-
ucts) in the United States; and 
‘‘(IV) the components of the ves-
sel listed in paragraph (4) are manu-
factured in the United States; and 
‘‘(B) with respect to the 6th calendar year 
following the calendar year in which this sub-
section is enacted, and each calendar year 
thereafter, if the vessel meets the requirements 
of subparagraph (A)(ii). 
‘‘(4) COMPONENTS.—The components of a ves-
sel listed in this paragraph are the following: 
‘‘(A) Air circuit breakers. 
‘‘(B) Welded shipboard anchor and moor-
ing chain. 
‘‘(C) Powered and non-powered valves in 
Federal Supply Classes 4810 and 4820 used in 
piping. 
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138 
‘‘(D) Machine tools in the Federal Supply 
Classes for metal-working machinery numbered 
3405, 3408, 3410 through 3419, 3426, 3433, 
3438, 3441 through 3443, 3445, 3446, 3448, 
3449, 3460, and 3461. 
‘‘(E) Auxiliary equipment for shipboard 
services, including pumps. 
‘‘(F) Propulsion equipment, including en-
gines, propulsion motors, reduction gears, and 
propellers. 
‘‘(G) Shipboard cranes. 
‘‘(H) Spreaders for shipboard cranes. 
‘‘(I) Rotating electrical equipment, includ-
ing electrical alternators and motors. 
‘‘(J) Compressors, pumps, and heat ex-
changers used in managing and re-liquefying 
boil-off gas from liquefied natural gas. 
‘‘(5) WAIVER
AUTHORITY.—The Commission 
may waive the requirement under clause (i)(II)(bb) 
or (ii)(IV), as applicable, of paragraph (3)(A) with 
respect to a component of a vessel if the Maritime 
Administrator determines that— 
‘‘(A) 
application 
of 
the 
requirement 
would— 
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139 
‘‘(i) result in an increase of 25 per-
cent or more in the cost of the component 
of the vessel; or 
‘‘(ii) cause unreasonable delays to be 
incurred in building or retrofitting the ves-
sel; or 
‘‘(B) such component is not manufactured 
in the United States in sufficient and reason-
ably available quantities of a satisfactory qual-
ity. 
‘‘(6) OPPORTUNITIES FOR CREDENTIALED MER-
CHANT
MARINERS.—Except as provided in para-
graph (7), the Commission shall include, in any 
order issued under subsection (a) that authorizes a 
person to export natural gas, a condition that the 
person provide opportunities for individuals with a 
merchant mariner credential (as defined in section 
2101 of title 46, United States Code) to receive ex-
perience 
and 
training 
necessary 
to 
become 
credentialed in working on a vessel transporting nat-
ural gas. 
‘‘(7) EXCEPTION.—The Commission may not 
include in any order issued under subsection (a) au-
thorizing a person to export natural gas to a nation 
with which there is in effect a free trade agreement 
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140 
requiring national treatment for trade in natural gas 
a condition described in paragraph (1), or a condi-
tion described in paragraph (6), if the United States 
Trade Representative certifies to the Commission, in 
writing, that such condition would violate obligations 
of the United States under such free trade agree-
ment. 
‘‘(8) USE OF FEDERAL INFORMATION.—In car-
rying out paragraph (1), the Commission— 
‘‘(A) shall use information made available 
by— 
‘‘(i) the Energy Information Adminis-
tration; or 
‘‘(ii) any other Federal agency or enti-
ty the Commission determines appropriate; 
and 
‘‘(B) may use information made available 
by a private entity only if applicable informa-
tion described in subparagraph (A) is not avail-
able.’’. 
(2) CONFORMING
AMENDMENT.—Section 3(c) 
of the Natural Gas Act (15 U.S.C. 717b(c)) is 
amended by striking ‘‘or the exportation of natural 
gas’’ and inserting ‘‘or, subject to subsection (g), the 
exportation of natural gas’’. 
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141 
(b) CRUDE OIL.—Section 101 of title I of division 
O of the Consolidated Appropriations Act, 2016 (42 
U.S.C. 6212a) is amended— 
(1) in subsection (b), by striking ‘‘subsections 
(c) and (d)’’ and inserting ‘‘subsections (c), (d), and 
(f)’’; and 
(2) by adding at the end the following: 
‘‘(f) TRANSPORTATION OF EXPORTS OF CRUDE OIL 
ON
VESSELS
DOCUMENTED
UNDER
LAWS
OF
THE 
UNITED STATES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law and except as provided in paragraph 
(6), as a condition to export crude oil, the President 
shall require that a person exporting crude oil trans-
port the crude oil on a vessel that meets the require-
ments described in paragraph (3). 
‘‘(2) PURPOSE.—The purpose of the require-
ment under paragraph (1) is to ensure that, of all 
crude oil exported by vessel in a calendar year, the 
following percentage is exported by a vessel that 
meets the requirements described in paragraph (3): 
‘‘(A) In each of the 7 calendar years fol-
lowing the calendar year in which this sub-
section is enacted, not less than 3 percent. 
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142 
‘‘(B) In each of the 8th, 9th, and 10th cal-
endar years following the calendar year in 
which this subsection is enacted, not less than 
6 percent. 
‘‘(C) In each of the 11th, 12th, and 13th 
calendar years following the calendar year in 
which this subsection is enacted, not less than 
8 percent. 
‘‘(D) In the 14th calendar year following 
the calendar year in which this subsection is en-
acted and each calendar year thereafter, not 
less than 10 percent. 
‘‘(3) REQUIREMENTS FOR VESSELS.—A vessel 
meets the requirements described in this para-
graph— 
‘‘(A) with respect to each of the 4 calendar 
years following the calendar year in which this 
subsection is enacted— 
‘‘(i) if— 
‘‘(I) the vessel is documented 
under the laws of the United States; 
and 
‘‘(II) with respect to any retrofit 
work necessary for the vessel to ex-
port crude oil— 
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143 
‘‘(aa) such work is done in a 
shipyard in the United States; 
and 
‘‘(bb) any component of the 
vessel listed in paragraph (4) 
that 
is 
installed 
during 
the 
course of such work is manufac-
tured in the United States; or 
‘‘(ii) if— 
‘‘(I) the vessel is built in the 
United States; 
‘‘(II) the vessel is documented 
under the laws of the United States; 
‘‘(III) all major components of 
the hull or superstructure of the ves-
sel are manufactured (including all 
manufacturing processes from the ini-
tial melting stage through the applica-
tion of coatings for iron or steel prod-
ucts) in the United States; and 
‘‘(IV) the components of the ves-
sel listed in paragraph (4) are manu-
factured in the United States; and 
‘‘(B) with respect to the 5th calendar year 
following the calendar year in which this sub-
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144 
section is enacted and each calendar year there-
after, if the vessel meets the requirements of 
subparagraph (A)(ii). 
‘‘(4) COMPONENTS.—The components of a ves-
sel listed in this paragraph are the following: 
‘‘(A) Air circuit breakers. 
‘‘(B) Welded shipboard anchor and moor-
ing chain. 
‘‘(C) Powered and non-powered valves in 
Federal Supply Classes 4810 and 4820 used in 
piping. 
‘‘(D) Machine tools in the Federal Supply 
Classes for metal-working machinery numbered 
3405, 3408, 3410 through 3419, 3426, 3433, 
3438, 3441 through 3443, 3445, 3446, 3448, 
3449, 3460, and 3461. 
‘‘(E) Auxiliary equipment for shipboard 
services, including pumps. 
‘‘(F) Propulsion equipment, including en-
gines, propulsion motors, reduction gears, and 
propellers. 
‘‘(G) Shipboard cranes. 
‘‘(H) Spreaders for shipboard cranes. 
‘‘(I) Rotating electrical equipment, includ-
ing electrical alternators and motors. 
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145 
‘‘(5) WAIVER AUTHORITY.—The President may 
waive the requirement under clause (i)(II)(bb) or 
clause (ii)(IV), as applicable, of paragraph (3)(A) 
with respect to a component of a vessel if the Mari-
time Administrator determines that— 
‘‘(A) 
application 
of 
the 
requirement 
would— 
‘‘(i) result in an increase of 25 per-
cent or more in the cost of the component 
of the vessel; or 
‘‘(ii) cause unreasonable delays to be 
incurred in building or retrofitting the ves-
sel; or 
‘‘(B) such component is not manufactured 
in the United States in sufficient and reason-
ably available quantities of a satisfactory qual-
ity. 
‘‘(6) EXCEPTION.—The President may not, 
under paragraph (1), condition the export of crude 
oil to a nation with which there is in effect a free 
trade agreement requiring national treatment for 
trade in crude oil if the United States Trade Rep-
resentative certifies to the President, in writing, that 
such condition would violate obligations of the 
United States under such free trade agreement. 
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146 
‘‘(7) OPPORTUNITIES FOR CREDENTIALED MER-
CHANT
MARINERS.—The Maritime Administrator 
shall ensure that the owner or operator of a vessel 
transporting crude oil provides opportunities for in-
dividuals with a merchant mariner credential (as de-
fined in section 2101 of title 46, United States 
Code) to receive experience and training necessary to 
become credentialed in working on such vessels. 
‘‘(8) USE OF FEDERAL INFORMATION.—In car-
rying out paragraph (1), the President— 
‘‘(A) shall use information made available 
by— 
‘‘(i) the Energy Information Adminis-
tration; or 
‘‘(ii) any other Federal agency or enti-
ty the Commission determines appropriate; 
and 
‘‘(B) may use information made available 
by a private entity only if applicable informa-
tion described in subparagraph (A) is not avail-
able.’’. 
(c) ENERGY INFORMATION ADMINISTRATION INFOR-
MATION.—The Secretary of Energy, acting through the 
Administrator of the Energy Information Administration 
(referred to in this section as the ‘‘Secretary’’), shall col-
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147 
lect, and make readily available to the public on the inter-
net website of the Energy Information Administration, in-
formation on exports by vessel of natural gas and crude 
oil, including— 
(1) forecasts for, and data on, those exports for 
the calendar year following the calendar year in 
which this Act is enacted and each calendar year 
thereafter; and 
(2) forecasts for those exports for multiyear pe-
riods after the date of enactment of this Act, as de-
termined appropriate by the Secretary. 
SEC. 421. GOODS IMPORTED ON VESSELS OF THE UNITED 
STATES. 
Chapter 605 of title 46, United States Code, is 
amended— 
(1) in section 60502(a)(1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘the vessel’’; 
(B) in subparagraph (A), by striking ‘‘is 
entitled’’ and all that follows through ‘‘imported 
in’’ and inserting the following: ‘‘the cost of im-
porting goods aboard the vessel is comparable 
to or greater than the cost of importing goods 
aboard’’; and 
(C) in subparagraph (B)— 
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(i) by striking ‘‘(i) is owned’’ and in-
serting the following: ‘‘the vessel— 
‘‘(i) is owned’’; and 
(ii) by adjusting the margins of clause 
(ii) appropriately; and 
(2) in section 60503(a), by inserting ‘‘, except 
for the duties imposed under section 60502 of this 
chapter,’’ after ‘‘suspension of discriminating du-
ties’’. 
SEC. 422. SHIP AMERICA OFFICE. 
(a) IN GENERAL.—Chapter 553 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘SUBCHAPTER IV—SHIP AMERICA OFFICE 
‘‘§ 55341. Establishment of Ship America Office 
‘‘(a) ESTABLISHMENT.—The Maritime Adminis-
trator shall establish within the Maritime Administration 
an office to be known as the ‘Ship America Office’. The 
Maritime Administrator shall appoint the head of the Ship 
America Office (in this section referred to as the ‘Ship 
America Associate Administrator’). 
‘‘(b) DUTIES.—The Ship America Associate Adminis-
trator shall have the following duties: 
‘‘(1) Providing assistance to private sector enti-
ties, Federal financial assistance recipients, Federal 
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149 
agencies, Federal contractors, and owners and oper-
ators of oceangoing vessels of the United States to 
facilitate the movement of commercial and govern-
ment cargo on vessels of the United States in inter-
national commerce. 
‘‘(2) Maximizing compliance across Federal 
agencies with this chapter, section 2631 of title 10, 
and any other cargo preference law of the United 
States. 
‘‘(3) Providing training and assistance to Fed-
eral employees, in all Federal agencies responsible 
for shipping preference cargo, on the legal obliga-
tions under this chapter, section 2631 of title 10, 
United States Code, and any other cargo preference 
law of the United States. 
‘‘(4) Developing a ‘Ship America’ verification 
program to develop self-certification industry stand-
ards, in partnership with private sector entities, to 
allow private sector entities to verifiably demonstrate 
that a product was transported to the United States 
aboard a vessel of the United States. 
‘‘(5) Supporting the efforts of the executive 
branch to develop and sustain a fleet of vessels of 
the United States and maritime industrial base to 
meet the sealift needs of Federal agencies. 
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‘‘(6) Where practicable, making accessible, and 
regularly updating, the publicly available contact in-
formation for oceangoing vessels of the United 
States for the purposes of moving international com-
merce. 
‘‘(7) Publishing, and regularly updating, cen-
tralized information on the commercial benefits 
available to private sector entities for moving com-
mercial cargo on oceangoing vessels of the United 
States. 
‘‘(8) Preparing the reports under subsection 
(c). 
‘‘(c) REPORTS REQUIRED.—Not later than 1 year 
after the date of enactment of this section, and biennially 
thereafter, the Maritime Administrator, acting through 
the Ship America Associate Administrator, shall report to 
the appropriate committees of Congress (as defined in sec-
tion 4 of the SHIPS for America Act of 2025) and the 
Maritime Security Board on— 
‘‘(1) the opportunities and challenges faced by 
commercial entities to move cargo on oceangoing 
vessels of the United States; and 
‘‘(2) recommendations to increase international 
commerce moving on vessels of the United States.’’. 
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151 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 553 of title 46, United States Code, is amend-
ed by adding at the end the following: 
‘‘SUBCHAPTER IV—SHIP AMERICA OFFICE 
‘‘55341. Establishment of Ship America Office.’’. 
Subtitle C—Regulatory Reform 
SEC. 431. ALTERNATE STANDARDS. 
(a) IN GENERAL.—Chapter 33 of title 46, United 
States Code, is amended— 
(1) by redesignating sections 3317 and 3318 as 
sections 3318 and 3319, respectively; and 
(2) by inserting after section 3316 the fol-
lowing: 
‘‘§ 3317. Alternate standards 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of the Shipbuilding and Harbor Infra-
structure for Prosperity and Security for America Act of 
2025, the Secretary, in consultation with the Maritime 
Administrator, shall establish alternate standards to allow 
self-propelled vessels providing oceangoing transportation 
that are not documented under chapter 121 of this title 
to receive a certificate of inspection if the vessel will be-
come a documented vessel. 
‘‘(b) REQUIREMENTS.—Under the program estab-
lished under subsection (a), a self-propelled vessel used to 
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152 
provide oceangoing transportation that is not documented 
under chapter 121 of this title shall be eligible for a certifi-
cate of inspection if the Secretary determines that— 
‘‘(1) the owner of the vessel has agreed to apply 
to have the vessel documented under chapter 121 
upon receiving the certificate; 
‘‘(2) at the time of the receipt of such certifi-
cate, the vessel is eligible for documentation under 
such chapter; 
‘‘(3) the vessel is classed by and designed in ac-
cordance with the rules of a classification society ac-
cepted by the Secretary; 
‘‘(4) the vessel complies with applicable inter-
national agreements and associated guidelines, as 
determined by the country in which the vessel was 
documented immediately before becoming docu-
mented under chapter 121, notwithstanding any 
other law including any regulation; 
‘‘(5) the vessel has been assessed for cybersecu-
rity and surveillance risks; and 
‘‘(6) the country in which the vessel was docu-
mented immediately before becoming documented 
under chapter 121 has not been identified by the 
Secretary as inadequately enforcing international 
vessel regulations as to that vessel. 
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153 
‘‘(c) CONTINUED ELIGIBILITY FOR CERTIFICATE.— 
This section does not apply to a vessel after any date on 
which the vessel fails to comply with the applicable inter-
national agreements and associated guidelines referred to 
in subsection (b)(4). 
‘‘(d) RELIANCE ON CLASSIFICATION SOCIETY.— 
‘‘(1) IN GENERAL.—The Secretary may rely on 
a certification from the American Bureau of Ship-
ping or, subject to paragraph (2), another classifica-
tion society accepted by the Secretary to establish 
that a vessel is in compliance with the requirements 
of paragraphs (3), (4), and (6) of subsection (b) and 
of subsection (c). 
‘‘(2) FOREIGN CLASSIFICATION SOCIETY.—The 
Secretary may accept certification from a foreign 
classification society under paragraph (1) only— 
‘‘(A) to the extent that the government of 
the foreign country in which the society is 
headquartered provides access on a reciprocal 
basis to the American Bureau of Shipping; and 
‘‘(B) if the foreign classification society 
has offices and maintains records in the United 
States. 
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154 
‘‘(e) RULEMAKING PROCEDURE.—The Secretary may 
initiate a rulemaking procedure to implement this stand-
ard. 
‘‘(f) SAVINGS PROVISION.—Nothing in this section 
shall be interpreted to affect requirements related to mer-
chant seamen credentials under part E of subtitle II of 
this title or the requirements related to manning of vessels 
under part F of such subtitle.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 33 of title 46, United States Code, is amended 
by striking the items relating to sections 3317 and 3318 
and inserting the following: 
‘‘3317. Alternate standards. 
‘‘3318. Fees. 
‘‘3319. Penalties.’’. 
SEC. 432. RULEMAKING COMMITTEE ON COMMERCIAL 
MARITIME REGULATIONS AND STANDARDS. 
(a) DEFINITIONS.—In this section: 
(1) COVERED
REGULATION.—The term ‘‘cov-
ered regulation’’— 
(A) means a commercial regulation or 
standard issued by the Coast Guard relating to 
the operation of vessels in foreign commerce, in-
cluding— 
(i) vessel design and engineering 
standards; 
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(ii) merchant mariner training and 
credentialing; or 
(iii) vessel operating and environ-
mental standards; and 
(B) does not include any commercial regu-
lation or standard issued by the Coast Guard 
that exclusively applies to vessels in domestic 
commerce. 
(2) 
RULEMAKING
COMMITTEE.—The 
term 
‘‘rulemaking committee’’ means the committee es-
tablished under subsection (b). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the department in which the Coast 
Guard is operating. 
(b) 
ESTABLISHMENT
OF
RULEMAKING
COM-
MITTEE.—There is established, in the department in 
which the Coast Guard is operating, a rulemaking com-
mittee on commercial maritime regulations and standards 
to— 
(1) review, and develop findings and rec-
ommendations regarding, the covered regulations; 
and 
(2) provide to the Secretary a report on oppor-
tunities to review and update regulations governing 
vessel design and engineering, vessel and facility op-
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eration and environmental standards, and merchant 
mariner credentialing, in order to— 
(A) revitalize the merchant marine and the 
commercial maritime industry in the United 
States; and 
(B) better align, and limit redundancies 
between, the regulatory standards of the Coast 
Guard and the International Maritime Organi-
zation and international treaty requirements, 
while protecting United States mariners and 
the United States maritime industry from for-
eign regulations that undermine the maritime 
industrial competitiveness of the United States. 
(c) MEMBERS.— 
(1) 
COMPOSITION
OF
RULEMAKING
COM-
MITTEE.—The Secretary shall appoint the following 
as members of the rulemaking committee: 
(A) Each of the following Federal officers 
or employees, or their designees: 
(i) The Maritime Security Advisor. 
(ii) The Maritime Administrator. 
(iii) The Commandant of the Coast 
Guard. 
(iv) The Secretary of Commerce. 
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(v) The Administrator of the Environ-
mental Protection Agency. 
(vi) The Chair of the Federal Mari-
time Commission. 
(vii) The chief United States delegate 
to the International Maritime Organiza-
tion. 
(B) Representatives from recognized classi-
fication societies, including the American Bu-
reau of Shipping. 
(C) Representatives of industry, includ-
ing— 
(i) owners and operators of vessels in 
domestic and foreign commerce of the 
United States; 
(ii) shipbuilders; and 
(iii) other representatives of industry 
the Secretary determines appropriate. 
(D) Individuals with a merchant mariner 
credential, as defined in section 2101 of title 
46, United States Code. 
(E) Representatives of maritime labor or-
ganizations. 
(F) Experts in maritime safety and regu-
latory matters. 
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(G) Other stakeholders the Secretary de-
termines appropriate. 
(2) PERIOD OF APPOINTMENT; VACANCIES.— 
(A) IN GENERAL.—A member of the rule-
making committee shall be appointed for the 
life of the rulemaking committee. 
(B) VACANCIES.—A vacancy in the rule-
making committee— 
(i) shall not affect the powers of the 
rulemaking committee; and 
(ii) shall be filled in the same manner 
as the original appointment. 
(3) CHAIRPERSON AND VICE CHAIRPERSON.— 
The Secretary shall select a Chairperson and Vice 
Chairperson from among the members of the rule-
making committee. 
(d) MEETINGS.— 
(1) INITIAL
MEETING.—Not later than 180 
days after the date of enactment of this Act, the 
Secretary shall convene the rulemaking committee 
for the first meeting of the rulemaking committee. 
(2) QUORUM.—A majority of the members of 
the rulemaking committee shall constitute a quorum, 
but a lesser number of members may hold hearings. 
(e) DUTIES OF COMMITTEE.— 
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(1) CONSIDERATIONS.—The rulemaking com-
mittee shall consider each of the following: 
(A) How the covered regulations interact 
with and compare to the treaty requirements 
and regulations established by the International 
Maritime Organization, including comparisons 
and interactions on the basis of— 
(i) safety; 
(ii) cost; 
(iii) enforceability and compliance; 
and 
(iv) international competitiveness. 
(B) The benefits and challenges vessel 
owners and operators and United States mari-
ners encounter when complying with both regu-
lations of the International Maritime Organiza-
tion and the covered regulations. 
(C) The role that covered regulations play 
in enhancing the size and strength of the mer-
chant marine and the domestic and inter-
national fleet of the United States. 
(D) Recommended changes to covered reg-
ulations, and regulatory frameworks, to better 
promote alignment with international standards 
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and the standards of countries that are allies 
and partners, with a focus on— 
(i) increasing opportunities for quali-
fied mariners that enter the merchant ma-
rine and reducing the barriers that lead 
qualified mariners to leave the merchant 
marine; 
(ii) increasing the number of vessels 
documented under the laws of the United 
States that are operating in domestic and 
foreign commerce; 
(iii) enhancing United States leader-
ship within the International Maritime Or-
ganization and other international treaty 
organizations with a focus on the maritime 
industry; 
(iv) streamlining regulatory processes 
and processing timelines to minimize dupli-
cative reviews and eliminate preventable 
delays; and 
(v) maintaining and enhancing the 
safety and security of the merchant ma-
rine. 
(E) Recommended changes to covered reg-
ulations and regulatory frameworks that govern 
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mariner education training requirements, which 
may include— 
(i) expanding the pool of qualified in-
structors for mariner training programs; 
(ii) streamlining requirements related 
to training facility size and design to im-
prove operational efficiencies at mariner 
training facilities, including requirements 
related to classroom size and design; 
(iii) standardizing and streamlining 
training course and curriculum approval 
and evaluation to provide more certainty to 
mariner training programs; and 
(iv) enhancing opportunities for mar-
iner training programs to flexibly integrate 
sea-time into course instruction, consistent 
with treaty requirements and regulations 
established by the International Maritime 
Organization. 
(F) Any other matters the Secretary deter-
mines appropriate. 
(2) REPORT.—Not later than 12 months after 
the date of enactment of this Act, the rulemaking 
committee shall submit to the Secretary a report 
that includes the findings and recommended changes 
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to covered regulations of the rulemaking committee, 
as required under paragraph (1). 
(f) POWERS OF RULEMAKING COMMITTEE.— 
(1) HEARINGS.—The rulemaking committee 
may hold such hearings, sit and act at such times 
and places, take such testimony, and receive such 
evidence as the rulemaking committee considers ad-
visable to carry out this section. 
(2) INFORMATION FROM FEDERAL AGENCIES.— 
(A) IN GENERAL.—The rulemaking com-
mittee may secure directly from a Federal de-
partment or agency such information as the 
rulemaking committee considers necessary to 
carry out this section, as permitted by law. 
(B) FURNISHING
INFORMATION.—On re-
quest of the Chairperson of the rulemaking 
committee, the head of the department or agen-
cy shall furnish the information to the rule-
making committee. 
(g) RULEMAKING COMMITTEE PERSONNEL MAT-
TERS.— 
(1) NO
COMPENSATION.—A member of the 
rulemaking committee shall not be compensated for 
service on the rulemaking committee. 
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(2) TRAVEL EXPENSES.—A member of the rule-
making committee shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under sub-
chapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places 
of business in the performance of services for the 
rulemaking committee. 
(h) ADMINISTRATION.—Except as specified otherwise 
in this section, the rulemaking committee shall be treated 
as a committee established under chapter 151 of title 46, 
United States Code, for purposes of section 15109 of such 
title and shall not be considered a temporary organization 
under section 3161 of title 5, United States Code. 
(i) TERMINATION.—The rulemaking committee shall 
terminate on the earlier of— 
(1) the date that is 90 days after the date on 
which the rulemaking committee submits the report 
under subsection (e)(2); or 
(2) the date that is 7 years after the date on 
which the rulemaking committee is established. 
(j) DUTIES
OF
THE SECRETARY.—The Secretary 
shall— 
(1) not later than 30 days after receiving the 
rulemaking committee’s report under subsection 
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(e)(2), submit to the appropriate committees of Con-
gress, and make publicly available, a copy of such 
report and the Secretary’s views on the rec-
ommendations of the committee; and 
(2) not later than 90 days after submitting the 
report under paragraph (1)— 
(A) initiate a rulemaking activity and 
make such policy and guidance updates deter-
mined necessary by the Secretary to address the 
consensus recommendations reached by the 
rulemaking committee under subsection (e); 
(B) submit a report to the appropriate 
committees of Congress identifying the rec-
ommendations of the rulemaking committee 
that require legislative changes; and 
(C) submit a report to the Secretary of 
State identifying recommendations of the rule-
making committee that require changes to trea-
ty requirements and regulations established by 
the International Maritime Organization, in-
cluding recommendations that should inform 
the policy of the United States as a member of 
the International Maritime Organization. 
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SEC. 433. AMENDMENTS TO SHIPOWNERS’ LIMITATION OF 
LIABILITY ACT OF 1851. 
(a) IN GENERAL.—Section 30523 of title 46, United 
States Code, is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) LIMIT OF OWNER LIABILITY.— 
‘‘(1) IN GENERAL.—Except as provided in sec-
tion 30524 of this title, the liability of— 
‘‘(A) the owner of a vessel of the United 
States for any claim, debt, or liability described 
in subsection (b) shall not exceed the value of 
the vessel and pending freight; and 
‘‘(B) the owner of a foreign vessel for any 
claim, debt, or liability described in subsection 
(b) shall not exceed the amount that is 5 times 
the value of the vessel and pending freight. 
‘‘(2) MULTIPLE OWNERS.—If a vessel has more 
than one owner, the proportionate share of the liabil-
ity under paragraph (1) of any one such owner shall 
not exceed that owner’s proportionate interest in the 
vessel and pending freight.’’; and 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) CLAIMS NOT SUBJECT TO LIMITATION.—Sub-
section (a) does not apply to— 
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‘‘(1) a claim for wages; or 
‘‘(2) with respect to the liability of an owner of 
a foreign vessel, a claim, debt, or liability arising 
from personal injury or wrongful death of a person 
who was not a crewmember or passenger of the for-
eign vessel at the time the injury (including fatal in-
jury, if applicable) occurred.’’. 
(b) AMENDMENT TO CESSATION OF CERTAIN AC-
TIONS.—Section 30529(c) of title 46, United States Code, 
is amended by striking ‘‘the matter in question’’ and in-
serting ‘‘a matter subject to consideration for limitation 
under section 30523 or section 30524’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply to any liability subject 
to section 30523(a) of title 46, United States Code, that 
arises on or after the date of enactment of this Act. 
TITLE V—SHIPBUILDING 
Subtitle A—Shipbuilding Financial 
Incentives 
SEC. 501. SHIPBUILDING FINANCIAL INCENTIVES. 
(a) IN GENERAL.—Part C of subtitle V of title 46, 
United States Code, is amended by inserting after chapter 
537 the following: 
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‘‘CHAPTER 538—SHIPBUILDING 
FINANCIAL INCENTIVES 
‘‘§ 53801. Shipbuilding financial incentives 
‘‘(a) ESTABLISHMENT.—The Maritime Adminis-
trator shall establish a program that, in accordance with 
the requirements of this section, provides Federal financial 
assistance to covered entities to— 
‘‘(1) aid in the construction of a vessel that 
shall be documented under the laws of the United 
States; or 
‘‘(2) incentivize a qualified shipyard investment. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘appropriate committees of Con-
gress’ means the Committee on Commerce, Science, 
and Transportation and the Committee on Appro-
priations of the Senate and the Committee on 
Armed Services and the Committee on Appropria-
tions of the House of Representatives. 
‘‘(2) COVERED ENTITY.—The term ‘covered en-
tity’ means— 
‘‘(A) any proposed vessel purchaser who is 
a citizen of the United States; or 
‘‘(B) any shipyard of the United States 
with the ability, experience, financial resources, 
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and other qualifications to construct or repair a 
military vessel or a vessel to be used in the for-
eign commerce of the United States. 
‘‘(3) FOREIGN COMMERCE.—The term ‘foreign 
commerce’ means— 
‘‘(A) commerce or trade between the 
United States, its territories or possessions, or 
the District of Columbia, and a foreign country; 
and 
‘‘(B) commerce or trade between foreign 
countries. 
‘‘(4) FOREIGN COUNTRY OF CONCERN; FOREIGN 
ENTITY OF CONCERN.—The terms ‘foreign country 
of concern’ and ‘foreign entity of concern’ have the 
meanings given such terms in section 4 of the 
SHIPS for America Act of 2025. 
‘‘(5) QUALIFIED SHIPYARD INVESTMENT.—The 
term ‘qualified shipyard investment’ means an in-
vestment to construct, modernize, or expand— 
‘‘(A) a shipyard of the United States that 
constructs or repairs civilian or military vessels; 
or 
‘‘(B) a manufacturing facility— 
‘‘(i) that is— 
‘‘(I) a component supplier; 
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‘‘(II) a subcomponent supplier; or 
‘‘(III) a manufacturing equip-
ment supplier; 
‘‘(ii) that is based in the United 
States; and 
‘‘(iii)(I) at which at least 50 percent 
of the products produced will be sold to 
shipyards of the United States or used to 
construct vessels of the United States; or 
‘‘(II) at which the investment will 
more than double the facility’s capacity to 
produce products to be sold to shipyards of 
the United Sates or used to construct ves-
sels of the United States, as determined by 
the Administrator. 
‘‘(c) PROCEDURE.— 
‘‘(1) APPLICATION.—A covered entity desiring 
financial assistance under this section shall submit 
an application to the Maritime Administrator. 
‘‘(2) REQUIREMENTS.—In order for a covered 
entity to qualify for financial assistance under this 
section, the covered entity shall— 
‘‘(A) for financial assistance related to con-
struction of a vessel of the United States as de-
scribed in subsection (a)(1)— 
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‘‘(i) enter into an agreement with the 
Maritime Administrator establishing that 
the vessel that is constructed with Federal 
financial assistance shall be, for a period of 
not less than 10 years, documented under 
the laws of the United States; and 
‘‘(ii) agree to carry out all construc-
tion in a shipyard of the United States as 
the result of competitive bidding, after due 
advertisement, with the right reserved by 
the Administrator to disapprove any or all 
bids; 
‘‘(B) for financial assistance related to 
qualified shipyard investments as described in 
subsection (a)(2), use the financial assistance 
award amounts to incentivize investments in— 
‘‘(i) facilities or equipment related to 
shipbuilding or ship repair; or 
‘‘(ii) maritime component suppliers 
and subcomponent suppliers with over 50 
percent maritime use in each such invest-
ment; and 
‘‘(C) make commitments to worker and 
community investment, including through— 
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‘‘(i) programs to expand employment 
opportunity for economically disadvantaged 
individuals; and 
‘‘(ii) securing commitments from re-
gional educational and training entities 
and institutions of higher education to pro-
vide workforce training, including pro-
gramming for training and job placement 
of economically disadvantaged individuals. 
‘‘(3) REVIEW OF APPLICATIONS.— 
‘‘(A) CONSIDERATIONS
FOR
REVIEW.— 
With respect to the review by the Maritime Ad-
ministrator of an application submitted— 
‘‘(i) the Maritime Administrator may 
not approve an application for construction 
of a vessel as described in subsection 
(a)(1) unless the Administrator— 
‘‘(I) determines that a vessel 
funded through the program— 
‘‘(aa) will aid in the pro-
motion and development of for-
eign commerce; and 
‘‘(bb) will be suitable for use 
by the United States for national 
defense or military purposes in 
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time of war or national emer-
gency; 
‘‘(II) determines that the vessel 
purchaser applying for funding under 
this section possesses the ability, expe-
rience, financial resources, and other 
qualifications necessary for the oper-
ation and maintenance of the pro-
posed new vessel; 
‘‘(III) determines that the ship-
yard that will construct a vessel under 
this section possesses the ability, expe-
rience, financial resources, equipment, 
and other qualifications necessary to 
properly to construct the proposed 
vessel; 
‘‘(IV) confirms that any newly 
constructed vessel has dedicated space 
for the training of cadets of the 
United States Merchant Marine Acad-
emy (consistent with the requirements 
of section 51307(b)), State maritime 
academies (consistent with the re-
quirements of section 51507), or other 
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