173 
workforce training programs identified 
by the Administrator; and 
‘‘(V) has notified the appropriate 
committees of Congress not later than 
15 days before making any commit-
ment to provide Federal financial as-
sistance to any covered entity; and 
‘‘(ii) the Maritime Administrator may 
not approve an application to incentivize 
qualified shipyard investments as described 
in subsection (a)(2) unless the Adminis-
trator— 
‘‘(I) confirms that the covered 
entity has received an incentive of-
fered by a governmental entity to a 
covered entity for the purposes of sup-
porting a qualified shipyard invest-
ment within that jurisdiction; 
‘‘(II) ensures that the covered en-
tity has an executable plan to sustain 
the facility without additional Federal 
financial assistance under this sub-
section for the facility; 
‘‘(III) determines that the project 
to which the application relates is in 
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174 
the economic and national security in-
terests of the United States; and 
‘‘(IV) receives detailed informa-
tion on— 
‘‘(aa) the customers, or cat-
egories of customers, which the 
covered entity plans to serve; 
‘‘(bb) the type of expendi-
tures which the covered entity 
plans to make; and 
‘‘(cc) the workforce positions 
that the covered entity plans to 
employ, including any required 
recruitment, training, and hiring; 
and 
‘‘(iii) the Maritime Administrator may 
consider— 
‘‘(I) whether the covered entity 
has previously received financial as-
sistance under this section; 
‘‘(II) the price for the construc-
tion or repair of a vessel that has 
been negotiated between a shipyard 
and proposed vessel purchaser, and 
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whether the negotiated price is fair 
and reasonable; 
‘‘(III) whether the covered entity 
commits to use equipment, materials, 
and supplies that are produced in the 
United States, and utilize, to the max-
imum extent practicable, subcontrac-
tors and suppliers that are based in 
the United States; and 
‘‘(IV) whether the covered entity 
commits to utilizing new or emerging 
technologies. 
‘‘(B) RECORDS.—The Maritime Adminis-
trator may request records and information 
from the covered entity. The covered entity 
shall provide the records and information re-
quested by the Administrator. 
‘‘(C) PRIORITY.—In providing Federal fi-
nancial assistance to covered entities under this 
section, the Maritime Administrator may— 
‘‘(i) for an application for construc-
tion of a vessel as described in subsection 
(a)(1), give priority to applicants that— 
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‘‘(I) propose the construction of 
vessels of higher transport capability 
and productivity; 
‘‘(II) commit to have modifica-
tions done in the United States to a 
vessel constructed with such financial 
assistance; or 
‘‘(III) propose the construction 
or modification of a vessel to meet the 
national security needs of the United 
States; and 
‘‘(ii) for an application to incentivize a 
qualified shipyard investment as described 
in subsection (a)(2), give priority to appli-
cants that— 
‘‘(I) propose to expand produc-
tion capacity to enable more military 
or commercial vessels to be con-
structed or repaired in the United 
States; 
‘‘(II) commit to using new or 
emerging technologies or vessel design 
processes that increase production 
times or lower production costs; or 
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‘‘(III) have experience making 
qualified shipyard investments or op-
erating shipyards for commercial or 
military oceangoing vessels. 
‘‘(4) NATIONAL DEFENSE FEATURES.— 
‘‘(A) IN GENERAL.—Upon receiving an ap-
plication for the construction of a vessel under 
this section, the Maritime Administrator shall 
submit to the Secretary of the Navy the plans 
and specifications for the proposed vessel for re-
view. 
‘‘(B) RECOMMENDATIONS.—Not later than 
30 days after the date of receiving the plans 
and specifications for a vessel as provided for 
under subparagraph (A), the Secretary of the 
Navy may make recommendations to the Mari-
time Administrator for the design of the vessel, 
which would enable the economical and speedy 
conversion of the vessel into a vessel suitable 
for use of the United States Government in 
times of war or national emergency. 
‘‘(C) REQUIREMENT TO IMPLEMENT REC-
OMMENDATIONS.—If the Maritime Adminis-
trator agrees with such recommendations, the 
Maritime Administrator shall require the cov-
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178 
ered entity to carry out such recommendations 
as a condition of receiving Federal financial as-
sistance under this section with respect to that 
vessel. 
‘‘(5) RELATIONSHIP TO OTHER FINANCIAL AS-
SISTANCE PROGRAMS.—A covered entity may not re-
ceive financial assistance under this section for a 
vessel which is enrolled in the Strategic Commercial 
Fleet Program. 
‘‘(d) AWARD AMOUNTS.— 
‘‘(1) CONSTRUCTION
OF
A
VESSEL
OF
THE 
UNITED STATES.— 
‘‘(A) IN GENERAL.—For financial assist-
ance related to construction of a vessel of the 
United States, as described in subsection (a)(1), 
the Maritime Administrator shall determine the 
appropriate amount and funding for each finan-
cial assistance award made under this section. 
‘‘(B) DETERMINATION.—In making the 
determination under subparagraph (A), the 
Maritime Administrator shall consider the dif-
ference in the cost of constructing the proposed 
vessel within the United States over the fair 
and reasonable estimate of cost of the construc-
tion of that type of vessel if it were constructed 
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179 
under similar plans and specifications (exclud-
ing national defense features as described in 
subsection (c)(4)) in a foreign shipbuilding cen-
ter that is deemed by the Administrator to fur-
nish a fair and representative example for the 
determination of the estimated foreign cost of 
construction of vessels of the type proposed to 
be constructed. 
‘‘(2) QUALIFIED
SHIPYARD
INVESTMENTS.— 
For financial assistance provided to incentivize 
qualified shipyard investments as described in sub-
section (a)(2), the Maritime Administrator shall de-
termine the appropriate amount for each financial 
assistance award made to a covered entity to maxi-
mize private sector investments and to expand ship-
yard and ship building capacity of the United 
States. 
‘‘(3) USE OF FUNDS.—A covered entity that re-
ceives a financial assistance award under this section 
may only use the financial assistance award amounts 
to— 
‘‘(A)(i) finance the construction of a vessel 
to be built in the United States and docu-
mented under the laws of the United States; or 
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180 
‘‘(ii) support site development, construc-
tion, and modernization for qualified shipyard 
investments; and 
‘‘(B) support workforce development for a 
shipyard or qualified shipyard investment. 
‘‘(e) APPLICATIONS FOR RECONSTRUCTION, CONDI-
TIONING, OR REPOWERING.—The Maritime Administrator 
may, if determined to be in the national and economic se-
curity interests of the United States and consistent with 
the requirements of this section, consider an application 
as described in subsection (a)(1), and award financial as-
sistance under this section, for the reconstruction, recondi-
tioning, or repowering of an existing vessel in a shipyard 
of the United States. 
‘‘(f) PILOT PROGRAM FOR VESSELS IN DOMESTIC 
COMMERCE.— 
‘‘(1) IN
GENERAL.—The Maritime Adminis-
trator may, if determined to be in the national and 
economic security interests of the United States and 
consistent with all other requirements of this section 
(except 
the 
requirement 
under 
subsection 
(c)(3)(A)(i)(I)(aa)), establish a pilot program to con-
sider an application as described in subsection 
(a)(1), and award financial assistance under this 
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181 
section for the construction of a vessel for use in 
service other than the foreign commerce. 
‘‘(2) ELIGIBLE
VESSELS.—In addition to all 
other requirements of this section (except the re-
quirement under subsection (c)(3)(A)(i)(I)(aa)), a 
vessel qualifying for funding through the pilot pro-
gram under this subsection shall only be eligible if 
the Administrator certifies that the vessel of the 
United States that will be constructed— 
‘‘(A)(i) will operate in an emerging indus-
try or a new trade lane; 
‘‘(ii) will not compete with existing vessels 
of the United States; and 
‘‘(iii) will not serve a market already 
served by a vessel of the United States with a 
coastwise endorsement; 
‘‘(B)(i) will replace an existing vessel of 
the United States that is or will be acquired by 
the Administrator to be placed in the National 
Defense Reserve Fleet, pursuant to section 
57101; and 
‘‘(ii) will operate for not longer than 21 
years and upon disposition will be placed in the 
National Defense Reserve Fleet, pursuant to 
section 57101; or 
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182 
‘‘(C) will be an oceanographic research ves-
sel (as defined in section 2101 of this title). 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to alter the re-
quirements under section 55102. 
‘‘(g) CLAWBACK.— 
‘‘(1) MILESTONES.—For all awards to covered 
entities under this section, the Administrator shall, 
before the award is made, determine target mile-
stones by which the vessel’s construction or a quali-
fied shipyard investment shall be completed. 
‘‘(2) PROGRESSIVE RECOVERY FOR DELAYS.— 
Subject to paragraph (3), if a covered entity does 
not meet such target milestones, the Administrator 
shall progressively recover up to the full amount of 
an award provided to a covered entity under this 
section. 
‘‘(3) WAIVER.—In the case of delays that do 
not meet such target milestones, the Administrator 
may waive elements of the progressive recovery de-
scribed in paragraph (2) that is incorporated in each 
award after— 
‘‘(A) making a formal determination that 
circumstances beyond the ability of the covered 
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183 
entity to foresee or control are responsible for 
delays; and 
‘‘(B) submitting congressional notification. 
‘‘(4) CONGRESSIONAL NOTIFICATION.—The Ad-
ministrator shall notify the appropriate committees 
of Congress— 
‘‘(A) of the target dates described in para-
graph (1) for each award; and 
‘‘(B) of any waivers provided under para-
graph (3) not later than 15 days after the date 
on which such a waiver was provided. 
‘‘(h) EMERGENCY PREPAREDNESS.—The Maritime 
Administrator shall require any vessel that is constructed 
with financial assistance under this section to participate 
in an emergency preparedness program that is approved 
by the Secretary of Defense. 
‘‘(i) CLARIFICATION.—The provision by the Adminis-
trator of Federal financial assistance for a project de-
scribed in this section shall not be considered to be a 
major Federal action under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) or an under-
taking for the purposes of division A of subtitle III of title 
54, United States Code. 
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184 
‘‘(j) BUY AMERICA.—Section 54101(d)(2) shall apply 
to any funds obligated by the Administrator under this 
section. 
‘‘(k) GAO REVIEW.—The Comptroller General of the 
United States shall— 
‘‘(1) not later than 2 years after the date of 
disbursement of the first financial award under this 
section, and biennially thereafter for 10 years, con-
duct a review of the program under this section; and 
‘‘(2) submit to the appropriate committees of 
Congress the results of each review. 
‘‘(l) PROHIBITION ON USE OF FUNDS.— 
‘‘(1) IN GENERAL.—No funds made available 
under this section may— 
‘‘(A) be used to construct, modify, or im-
prove a facility outside of the United States; 
‘‘(B) be provided to a foreign entity of con-
cern or to support a foreign entity of concern; 
or 
‘‘(C) be used to purchase materials that 
are procured or sourced from a foreign entity of 
concern, if such funds are for construction of a 
vessel as described in subsection (a)(1). 
‘‘(2) STOCK BUYBACKS.—An entity receiving fi-
nancial assistance under this section may not engage 
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185 
in any stock buyback for a period of 5 years after 
receiving such assistance. 
‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Administrator, out 
of the Maritime Security Trust Fund established under 
section 50301(b) of this title, $250,000,000 for each of 
fiscal years 2026 through 2035 to provide financial assist-
ance to covered entities under this section, to remain avail-
able until expended.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
at the beginning of part C of subtitle V of title 46, United 
States Code, and at the beginning of subtitle V of such 
title, are each amended by inserting after the item relating 
to chapter 537 the following new item: 
‘‘538. Shipbuilding financial incentives ................................................... 53801’’. 
(c) CONFORMING AMENDMENT.—Title V of the Act 
of June 29, 1936 (49 Stat. 1995; chapter 858) is repealed. 
SEC. 502. ASSISTANCE FOR SMALL SHIPYARDS. 
Section 54101 of title 46, United States Code, is 
amended— 
(1) in subsection (b)(1)— 
(A) in subparagraph (A), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (B), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
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186 
‘‘(C) long-term industrial base growth that 
supports the national security and economic se-
curity needs of the merchant marine of the 
United States.’’; and 
(2) in subsection (i)— 
(A) by inserting ‘‘out of the Maritime Se-
curity Trust Fund established under section 
50301(b) of this title’’ before ‘‘to the Adminis-
trator of the Maritime Administration’’; and 
(B) by striking ‘‘for fiscal year 2021 to 
carry out this section $20,000,000’’ and insert-
ing ‘‘$100,000,000 for each of fiscal years 2026 
through 2035’’. 
SEC. 503. FEDERAL SHIP FINANCING (TITLE XI) PROGRAM. 
(a) ESTABLISHMENT OF REVOLVING LOAN FUND.— 
Section 53702 of title 46, United States Code, is amended 
by adding at the end the following: 
‘‘(c) 
ESTABLISHMENT
OF
REVOLVING
LOAN 
FUND.—Not later than 30 days after the date of enact-
ment of the SHIPS for America Act of 2025, the Sec-
retary shall establish a revolving loan fund to be adminis-
tered by the National Surface Transportation and Innova-
tion Finance Bureau established under section 116 of title 
49. Any funds appropriated to carry out this chapter shall 
be deposited in the fund, along with any proceeds gen-
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187 
erated from the loan guarantee program under this chap-
ter including any fees collected under section 53713 or 
53714. The Secretary or Administrator shall make a guar-
antee of payments or commitment to guarantee payments 
under subsection (a) or for the Secretary to make direct 
loan obligations under subsection (b) out of the revolving 
loan fund. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated, out of the Maritime Se-
curity Trust Fund established under section 50301(b) of 
this title, $100,000,000 for fiscal year 2026 to be available 
until expended to the revolving loan fund established 
under subsection (c).’’. 
(b) FUNDING LIMITS.—Section 53704 of title 46, 
United States Code, is amended— 
(1) in subsection (a), by striking ‘‘facilities.’’ 
and inserting ‘‘facilities, and not less than 50 per-
cent of obligations guaranteed under this chapter 
shall be for projects that do not receive any pay-
ments or Federal financial assistance from financial 
assistance programs established under this part.’’; 
and 
(2) in subsection (c), by adding at the end the 
following: 
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‘‘(5) VESSEL
OF
NATIONAL
INTEREST.—The 
Administrator shall ensure that the system of risk 
categories under paragraph (2) takes into consider-
ation whether a project subject to a guarantee under 
this chapter is a project to construct, reconstruct, or 
recondition a Vessel of National Interest.’’. 
(c) ELIGIBLE PURPOSES OF OBLIGATIONS.—Section 
53706(a)(8) of title 46, United States Code, is amended— 
(1) by striking ‘‘States.’’ and inserting ‘‘States 
that is required—’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(A) for the vessel to be a vessel of the 
United States; 
‘‘(B) for the vessel to be issued a coastwise 
endorsement under chapter 121; 
‘‘(C) to convert a civilian vessel of the 
United States to a more useful military configu-
ration; 
‘‘(D) for any vessel under contract to the 
Federal Government; or 
‘‘(E) for any United States-built vessel 
participating in— 
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‘‘(i) the Maritime Security Program 
or the Emergency Preparedness Program 
under chapter 531; 
‘‘(ii) the Cable Security Fleet under 
chapter 532; 
‘‘(iii) the Tanker Security Fleet under 
chapter 534; 
‘‘(iv) the Strategic Commercial Fleet 
under chapter 536; 
‘‘(v) the Shipbuilding Financial Incen-
tive under chapter 538; or 
‘‘(vi) the National Defense Reserve 
Fleet under section 57100.’’. 
(d) BUY AMERICA.—Section 53733 of title 46, 
United States Code, is amended by striking subsection (f) 
and inserting the following: 
‘‘(f) BUY AMERICA.—Section 54101(d)(2) shall apply 
to any funds obligated by the Administrator under this 
section.’’. 
SEC. 504. CONSTRUCTION RESERVE FUND. 
(a) DEFINITIONS.—Section 53301(a) of title 46, 
United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘a new vessel’’ 
and inserting ‘‘an eligible vessel’’; 
(2) in paragraph (2)— 
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(A) in the paragraph heading, by striking 
‘‘NEW VESSEL’’ and inserting ‘‘ELIGIBLE VES-
SEL’’; 
(B) in the matter preceding subparagraph 
(A), by striking ‘‘new vessel’’ and inserting ‘‘eli-
gible vessel’’; and 
(C) in subparagraph (A)— 
(i) in clause (i), by striking ‘‘after De-
cember 31, 1939’’; 
(ii) in clause (ii), by striking ‘‘and’’ 
after the semicolon; 
(iii) by redesignating clause (iii) as 
clause (iv); and 
(iv) by inserting after clause (ii), the 
following: 
‘‘(iii) operated in foreign commerce or 
domestic commerce of the United States or 
in the fisheries; and’’; and 
(3) by adding at the end the following: 
‘‘(3) FOREIGN COMMERCE.—The term ‘foreign 
commerce’ means— 
‘‘(A) commerce or trade between the 
United States, its territories or possessions, or 
the District of Columbia, and a foreign country; 
and 
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‘‘(B) commerce or trade between foreign 
countries.’’. 
(b) AUTHORITY
FOR
CONSTRUCTION
RESERVE 
FUNDS.—Section 53302(a) of title 46, United States 
Code, is amended by striking ‘‘or acquisition of a new ves-
sel’’ and inserting ‘‘repowering, or acquisition of an eligi-
ble vessel’’. 
(c) PERSONS ELIGIBLE TO ESTABLISH FUNDS.— 
Section 53303 of title 46, United States Code, is amend-
ed— 
(1) by striking the matter preceding paragraph 
(1) and inserting the following: ‘‘A citizen of the 
United States may make an agreement with the Sec-
retary of Transportation under this chapter to estab-
lish a construction reserve fund if that citizen—’’; 
(2) in paragraph (1), by striking ‘‘in the foreign 
or domestic commerce of the United States’’ and in-
serting ‘‘documented under the laws of the United 
States and operating in foreign commerce or domes-
tic commerce of the United States’’; 
(3) in paragraph (2), by striking ‘‘being oper-
ated in the foreign or domestic commerce of the 
United States’’ and inserting ‘‘documented under 
the laws of the United States and operating in for-
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192 
eign commerce or domestic commerce of the United 
States’’; 
(4) in paragraph (3), by striking ‘‘in the foreign 
or domestic commerce of the United States’’ and in-
serting ‘‘documented under the laws of the United 
States and operating in foreign commerce or domes-
tic commerce of the United States’’; 
(5) in paragraph (4)— 
(A) by striking ‘‘being operated in the for-
eign or domestic commerce of the United 
States’’ and inserting ‘‘documented under the 
laws of the United States and operating in for-
eign commerce or domestic commerce of the 
United States’’; and 
(B) by striking ‘‘or’’ after the semicolon; 
(6) in paragraph (5)— 
(A) by striking ‘‘in the foreign or domestic 
commerce of the United States’’ and inserting 
‘‘documented under the laws of the United 
States to operate in foreign commerce or do-
mestic commerce of the United States’’; and 
(B) by striking the period at the end and 
inserting ‘‘; or’’; and 
(7) by adding at the end the following: 
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‘‘(6) commits, as a part of the agreement with 
the Secretary under this chapter, to construct, re-
construct, recondition, repower, or acquire, and op-
erate, an eligible vessel by not later than 5 years 
after the date on which the construction reserve 
fund is established.’’. 
(d) VESSEL OWNERSHIP.—Section 53304 of title 46, 
United States Code, is amended by striking ‘‘constructed 
or acquired’’ each place the term appears and inserting 
‘‘constructed, reconstructed, reconditioned, repowered, or 
acquired’’. 
(e) BASIS FOR DETERMINING GAIN OR LOSS.—Sec-
tion 53307 of title 46, United States Code, is amended— 
(1) in the section heading, by striking ‘‘new 
vessels’’ and inserting ‘‘eligible vessels’’; 
(2) by striking ‘‘a new vessel’’ and inserting 
‘‘an eligible vessel’’; 
(3) by striking ‘‘the new vessel’’ and inserting 
‘‘the eligible vessel’’; 
(4) by inserting ‘‘repowered,’’ after ‘‘recondi-
tioned,’’; and 
(5) by inserting ‘‘repowering,’’ after ‘‘recondi-
tioning,’’. 
(f) OBLIGATION OF DEPOSITS.—Section 53310 of 
title 46, United States Code, is amended— 
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(1) in subsection (a)— 
(A) by striking ‘‘a new vessel’’ each place 
the term appears and inserting ‘‘an eligible ves-
sel’’; and 
(B) in paragraph (1)(A), by striking ‘‘or 
reconditioning’’ and inserting ‘‘, repowering, or 
reconditioning’’; and 
(2) by striking subsections (b) and (c) and in-
serting the following: 
‘‘(b) ADDITIONAL REQUIREMENTS
FOR CERTAIN 
VESSELS.—In addition to the requirements of subsection 
(a)(1), for an eligible vessel not constructed under the con-
struction-differential program or not bought from the Sec-
retary of Transportation, construction shall commence 
with reasonable dispatch after the date of the construction 
contract, as determined by the Secretary of Transpor-
tation and certified by such Secretary to the Secretary of 
the Treasury. 
‘‘(c) EXTENSIONS.—The Secretary of Transportation 
may grant extensions of the period within which the depos-
its must be expended or obligated, except that such exten-
sions may not be for a total of more than 15 years for 
the expenditure or obligation of deposits.’’. 
(g) CLERICAL AMENDMENT.—The table of sections 
for chapter 533 of title 46, United States Code, is amend-
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ed by striking the item relating to section 53307 and in-
serting the following: 
‘‘53307. Basis for determining gain or loss and for depreciating eligible ves-
sels.’’. 
SEC. 505. CAPITAL CONSTRUCTION FUND. 
(a) IN GENERAL.—Chapter 535 of subtitle V of title 
46, United States Code, is amended— 
(1) in section 53501— 
(A) by redesignating paragraphs (2), (3), 
(4), (5), (6), (7), (8), and (9), as paragraphs 
(3), (5), (7), (8), (9), (10), (11), and (12), re-
spectively; 
(B) by inserting after paragraph (1) the 
following: 
‘‘(2) CARGO HANDLING EQUIPMENT.—The term 
‘cargo handling equipment’ means any vehicle or 
land-based equipment (excluding marine container 
chassis), and the associated marine terminal or port 
landside infrastructure, used at a marine terminal to 
lift or move cargo— 
‘‘(A) manufactured in the United States 
(including any territory or possession of the 
United States); or 
‘‘(B) manufactured outside of the United 
States, if such equipment is not produced in the 
United States in sufficient and reasonably 
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available quantities or of a satisfactory quality 
as determined by the Secretary.’’; 
(C) by inserting after paragraph (3), as re-
designated by subparagraph (A), the following: 
‘‘(4) FOREIGN COMMERCE.—The term ‘foreign 
commerce’ means— 
‘‘(A) commerce or trade between the 
United States, its territories or possessions, or 
the District of Columbia, and a foreign country; 
and 
‘‘(B) commerce or trade between foreign 
countries.’’; 
(D) by inserting after paragraph (5), as 
redesignated by subparagraph (A), the fol-
lowing: 
‘‘(6) MARINE
TERMINAL.—The term ‘marine 
terminal’ means wharves, bulkheads, quays, piers, 
docks, and other berthing locations and adjacent 
storage or adjacent areas and structures associated 
with the primary movement of cargo or materials 
from vessel to shore, or from shore to vessel, includ-
ing structures which are devoted to receiving, han-
dling, holding, consolidating, loading, or delivery of 
waterborne shipments, including areas devoted to 
the maintenance of the terminal or equipment.’’; and 
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agreement with the Secretary under this chapter to 
establish a capital construction fund for the marine 
terminal.’’; and 
(B) by striking subsection (b), and insert-
ing the following: 
‘‘(b) ALLOWABLE PURPOSE.—The purpose of the 
agreement shall be to provide— 
‘‘(1) replacement vessels, additional vessels, or 
reconstructed vessels, built in the United States and 
documented under the laws of the United States, for 
operation in the foreign commerce or domestic trade 
of the United States or in the fisheries of the United 
States; or 
‘‘(2) replacement cargo handling equipment, ad-
ditional cargo handling equipment, or reconstructed 
cargo handling equipment for operation at marine 
terminals in the United States.’’; 
(3) in section 53504(b), by inserting ‘‘or United 
States marine terminal’’ after ‘‘agreement vessel’’; 
(4) by striking section 53505 and inserting the 
following: 
‘‘§ 53505. Ceiling on deposits 
‘‘(a) MAXIMUM DEPOSITS.—The amount deposited in 
a capital construction fund for a taxable year may not ex-
ceed the amount specified in the agreement under section 
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53503(a), which shall be an amount that is related to a 
commitment to invest the revenue from the capital con-
struction fund into funding the construction of new vessels 
or funding cargo handling equipment. 
‘‘(b) REVENUE.—For the purposes of subsection (a), 
the revenue from the capital construction fund may in-
clude— 
‘‘(1) income attributable to the operation of the 
agreement vessel in foreign commerce or domestic 
trade or fisheries or the operation of a marine ter-
minal in the United States; 
‘‘(2) the amount allowable as a deduction under 
section 167 of the Internal Revenue Code of 1986 
for the taxable year with respect to the agreement 
vessels or cargo handling equipment; 
‘‘(3) the net proceeds from the disposition of an 
agreement vessel or cargo handling equipment or in-
surance or indemnity attributable to the vessel or 
cargo handling equipment; and 
‘‘(4) the receipts from the investment or rein-
vestment of amounts held in the fund. 
‘‘(c) REDUCTIONS FOR LESSEES.—For a lessee, the 
maximum amount that may be deposited for an agreement 
vessel under subsection (a) for any period shall be reduced 
by any amount the owner is required or permitted, under 
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the capital construction fund agreement, to deposit for 
that period for the vessel under subsection (a).’’; 
(5) in section 53506— 
(A) in subsection (a), by striking ‘‘Except 
as provided in subsection (b), amounts in the 
fund may be invested only in interest-bearing 
securities approved by the Secretary.’’; and 
(B) in subsection (b), by striking ‘‘With 
the approval of the Secretary, an agreed per-
centage (but not more than 60 percent) of the 
assets of the fund’’ and inserting ‘‘An agreed 
percentage of the assets of the fund’’; 
(6) in section 53509— 
(A) by striking subsection (a), and insert-
ing the following: 
‘‘(a) IN GENERAL.—Subject to subsections (b) and 
(c), a withdrawal from a capital construction fund is a 
qualified withdrawal if it is made under the terms of the 
agreement and is for— 
‘‘(1) the acquisition, construction, repowering, 
or reconstruction of— 
‘‘(A) a qualified vessel or a barge or con-
tainer that is part of the complement of a quali-
fied vessel; or 
‘‘(B) cargo handling equipment; or 
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‘‘(2) the payment of the principal on indebted-
ness incurred in the acquisition, construction, 
repowering, or reconstruction of— 
‘‘(A) a qualified vessel or a barge or con-
tainer that is part of the complement of a quali-
fied vessel; or 
‘‘(B) cargo handling equipment.’’; 
(B) by redesignating subsection (c) as sub-
section (e); and 
(C) by inserting after subsection (b) the 
following: 
‘‘(c) RESTRICTION.—No withdrawals may be made 
from a capital construction fund to purchase fully auto-
mated cargo handling equipment that is remotely operated 
or remotely monitored with or without the exercise of 
human intervention or control, if the Secretary determines 
such equipment would result in a net loss of jobs within 
a marine terminal. 
‘‘(d) PROHIBITION ON CERTAIN CRANES.—No with-
drawals may be made from a capital construction fund to 
purchase cranes manufactured in the People’s Republic of 
China or by foreign entities of concern (as defined in sec-
tion 4 of the SHIPS for America Act of 2025).’’; 
(7) in section 53510— 
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(A) in subsection (b), by inserting ‘‘cargo 
handling equipment,’’ after ‘‘barge,’’ both 
places the term appears; 
(B) in subsection (c), by inserting ‘‘cargo 
handling equipment,’’ after ‘‘barge,’’ both 
places the term appears; and 
(C) in subsection (d), by inserting ‘‘cargo 
handling equipment,’’ after ‘‘barges,’’; 
(8) in section 53511(e)(1), by striking the table 
contained therein and inserting the following: 
‘‘If the amount remains in the 
fund at the close of the- 
The applicable percentage is- 
16th taxable year .........................................................................20 percent
17th taxable year .........................................................................40 percent
18th taxable year .........................................................................60 percent
19th taxable year .........................................................................80 percent
20th taxable year .........................................................................100 percent’’; 
and 
(9) in section 53512(b)(1), by adding ‘‘cargo 
handling equipment,’’ after ‘‘advanced’’. 
(b) CARGO HANDLING EQUIPMENT AVAILABILITY.— 
The Secretary shall annually publish in the Federal Reg-
ister a request for information regarding the availability 
of cargo handling equipment manufactured in the United 
States and shall share the results of such request for infor-
mation with capital construction fund holders. 
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SEC. 506. ANTICIPATED COMMERCIAL VESSEL CONSTRUC-
TION SURVEY. 
(a) IN GENERAL.—Chapter 501 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 50115. Anticipated commercial vessel construction 
survey 
‘‘(a) DEFINITION.—In this section, ‘commercial ves-
sel of the United States’ means a vessel that is docu-
mented under the laws of the United States, not less than 
6,000 deadweight tons, and operated in the domestic trade 
of the United States or foreign commerce, and may in-
clude— 
‘‘(1) a bulk carrier vessel; 
‘‘(2) a tanker vessel; 
‘‘(3) a roll-on/roll-off vessel; 
‘‘(4) a liquefied natural gas tanker vessel; 
‘‘(5) a container vessel; 
‘‘(6) a multi-purpose vessel; 
‘‘(7) a cable vessel (as defined in section 
53201); 
‘‘(8) a heavy-lift vessel; or 
‘‘(9) any other type of vessel determined appro-
priate by the Administrator, in consultation with the 
Maritime Security Board. 
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‘‘(b) IN GENERAL.—Not later than 180 days after 
the date of enactment of this section, and annually there-
after, the Maritime Administrator shall conduct a survey 
of owners, agents, or operators of commercial vessels of 
the United States to identify plans for the construction, 
maintenance, and modernization of commercial vessels of 
the United States. 
‘‘(c) PURPOSE.—The purpose of the survey con-
ducted under this section is to inform the maritime indus-
trial base of the future need for the construction of com-
mercial vessels. 
‘‘(d) INCLUSIONS.—In conducting the survey under 
this section, the Maritime Administrator shall collect the 
following information from owners, agents, or operators 
of commercial vessels of the United States who participate 
in the survey: 
‘‘(1) The number of commercial vessels of the 
United States the participant is looking to construct 
during the 10-year period beginning on the date on 
which the participant takes the survey. 
‘‘(2) The capabilities of the vessels described in 
paragraph (1) that the participant is seeking in con-
structing such vessels. 
‘‘(3) Estimated timelines for when the partici-
pant aims to place each such vessel into service. 
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‘‘(4) The number of major repairs of commer-
cial vessels of the United States and overhauls of 
such commercial vessels the participant is looking to 
carry out during the 10-year period described in 
paragraph (1). 
‘‘(5) The major components that a shipbuilder 
would need from industrial base suppliers to support 
the construction, overhaul, or repair of commercial 
vessels of the United States during such 10-year pe-
riod. 
‘‘(6) Estimates for the capital expenditures the 
participant is planning to make for the construction, 
overhaul, or repair of commercial vessels of the 
United States during such 10-year period. 
‘‘(7) Any additional information the Maritime 
Administrator determines appropriate. 
‘‘(e) PARTICIPATION.—The Administrator may not 
require any owner, agent, or operator of a commercial ves-
sel of the United States to participate in the survey unless 
that owner, agency, or operator is participating in a finan-
cial assistance program established under part C of this 
subtitle. 
‘‘(f) RELEASE OF FINDINGS.— 
‘‘(1) DISTRIBUTION.—Each year, the Maritime 
Administrator may release the findings of the survey 
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with shipyards in the United States and other mari-
time industrial base stakeholders the results of the 
survey conducted under this section for such year in 
such a manner as the Administrator determines ap-
propriate. 
‘‘(2) PROPRIETARY
INFORMATION.—Notwith-
standing any other provision of law, including sec-
tion 552 of title 5, United States Code, at the re-
quest of a survey participant, the Maritime Adminis-
trator shall withhold proprietary information pro-
vided as a part of a survey conducted under this sec-
tion. 
‘‘(3) COORDINATION.—To the maximum extent 
practicable, the Maritime Administrator shall seek to 
conduct the annual surveys under this section and 
publish the results of such surveys on a similar 
timeline as the timeline for the annual naval vessel 
construction plans under section 231(a)(1) of title 
10 and other shipbuilding construction surveys pub-
lished by other Federal agencies.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 501 of title 46, United States Code, is amend-
ed by inserting after the item relating to section 50114 
the following: 
‘‘50115. Anticipated commercial vessel construction survey.’’. 
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SEC. 507. STREAMLINED ENVIRONMENTAL REVIEW. 
Section 41001(6) of the Fixing America’s Surface 
Transportation Act (42 U.S.C. 4370m(6)) is amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
inserting ‘‘the maritime industry’’ after ‘‘water-
ways,’’; 
(B) by redesignating clauses (iii) and (iv) 
as clauses (iv) and (v), respectively; and 
(C) by inserting after clause (ii) the fol-
lowing: 
‘‘(iii) is covered by a programmatic 
plan or environmental review developed for 
a project related to the maritime indus-
try;’’; and 
(2) by adding at the end the following: 
‘‘(D) MARITIME INDUSTRY.—For the pur-
poses of subparagraph (A), the term ‘construc-
tion of infrastructure’ for the maritime industry 
includes construction of— 
‘‘(i) shipyards and ship repair facili-
ties; 
‘‘(ii) port terminals and other port fa-
cilities; 
‘‘(iii) 
manufacturing 
facilities 
for 
equipment and technology instrumental to 
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the facilitation of maritime trade and com-
merce, as defined by the Council; and 
‘‘(iv) other industrial base facilities 
that support the Navy or the merchant 
marine of the United States.’’. 
SEC. 508. ELIGIBILITY FOR LOAN GUARANTEES. 
Section 1703(b) of the Energy Policy Act of 2005 
(42 U.S.C. 16513(b)) is amended by inserting at the end 
the following: 
‘‘(14) Marine transportation systems, including 
commercial vessels of the United States, shipyards, 
marine terminals, and port facilities.’’. 
SEC. 509. REPORTS. 
(a) REPORT
ON
NATIONAL
DEFENSE
RESERVE 
FLEET.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, and every 
2 years thereafter, the Maritime Administrator, in 
consultation with the Commander of the United 
States Transportation Command and the Secretary 
of the Navy, and in accordance with paragraph (2), 
shall submit to the appropriate committees of Con-
gress and the Maritime Security Board a report— 
(A) outlining a plan for using the ship-
building financial incentives program authorized 
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under section 53801 of title 46, United States 
Code, as added by section 501, and the finan-
cial incentive programs under subpart C of sub-
title V of title 46, United States Code, to sup-
plement the size and readiness of the National 
Defense Reserve Fleet and to improve national 
shipbuilding and shipping infrastructure; and 
(B) describing ways in which an expanded 
and creative view of the make-up of vessels with 
Voluntary Intermodal Sealift Agreements or 
Voluntary Tanker Agreements and the ship-
building financial incentives program authorized 
under such section can be used to ensure gov-
ernment access to other vessels that are critical 
to national security, such as icebreakers, oil and 
natural gas tankers, floating dry docks, salvage 
vessels, dredges, ocean tugs, offshore construc-
tion vessels, multi-use workboats, and commer-
cial shipping vessels using small nuclear reac-
tors. 
(2) ADDITIONAL CONSULTATION.—In preparing 
the report under paragraph (1), the Maritime Ad-
ministrator shall also consult with the Secretary of 
Commerce and the Secretary of Energy with respect 
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to shipping vessels or mobile maritime power plants 
using small nuclear reactors. 
(b) REPORT ON DE-RISKING MARITIME SECTOR.— 
Not later than 180 days after the date of enactment of 
this Act, and every 2 years thereafter, the Secretary of 
Defense and the Secretary of Homeland Security, in co-
ordination with the Secretaries of Treasury and State, the 
Maritime Administrator, the United States Trade Rep-
resentative, and the Director of the Office of Management 
and Budget, shall submit to the appropriate committees 
of Congress and the Maritime Security Board a report 
outlining a comprehensive strategy for de-risking the 
United States maritime domain from the People’s Repub-
lic of China and other asymmetric or emerging maritime 
threats. 
(c) REPORT ON RESTRICTING FLOW OF CAPITAL TO 
CCP.—Not later than 180 days after the date of enact-
ment of this Act, the Secretary of Transportation, the Sec-
retary of Defense, the Secretary of Commerce, the Sec-
retary of State, and the Secretary of the Treasury shall 
submit to the appropriate committees of Congress and the 
Maritime Security Board a report on ways and means for 
restricting the flow of capital from the United States to 
Chinese Communist Party maritime industries, which 
shall include recommendations for promoting the flow of 
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capital within and between the United States and treaty 
allies of the United States. The report shall also include 
a survey of banks, pension funds, and large financial insti-
tutions, with recommendations for ways the United States 
can incentivize domestic financial investments in the mari-
time industry. 
SEC. 510. EXPORT CONTROL REPORT. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of State and the Secretary of 
Commerce shall jointly submit to Congress a report as-
sessing methods to reduce the use of export controls and 
other restrictions under the Arms Export Control Act (22 
U.S.C. 2751 et seq.) and the International Traffic in 
Arms Regulations under subchapter M of chapter I of title 
22, Code of Federal Regulations, and the Export Control 
Reform Act of 2018 (50 U.S.C. 4801 et seq.) and the Ex-
port Administration Regulations under subchapter C of 
chapter VII of title 15, Code of Federal Regulations, or 
successor regulations, that limit the ability of foreign- 
owned marine industrial base companies to participate in 
the United States shipbuilding industry, specifically in-
cluding shipbuilding for the Federal Government, while 
ensuring appropriate safeguards for United States-based 
firms and American workers. 
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Subtitle B—Department of Defense 
Programs 
SEC. 511. ASSESSMENT OF THE USE OF COMMERCIAL BEST 
PRACTICES FOR NAVY SHIPBUILDING. 
(a) ASSESSMENT.— 
(1) IN GENERAL.—The Secretary of the Navy, 
in coordination with the Secretary of Transportation 
and the Secretary of the Department in which the 
Coast Guard is operating, shall— 
(A) conduct an assessment of best prac-
tices used in the construction and repair of 
commercial, oceangoing maritime vessels; and 
(B) identify— 
(i) opportunities for the Navy and 
Coast Guard to leverage those best prac-
tices to make ship construction and repair 
efforts of combatant and non-combatant 
vessels more efficient; and 
(ii) advanced technologies that can be 
leveraged to improve the overall readiness 
and dominance of the United States mari-
time fleet (both commercial and military), 
to specifically include small modular reac-
tors for ship power and propulsion. 
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(2) ELEMENTS.—The assessment required by 
paragraph (1) shall include the following: 
(A) An evaluation of the best practices de-
scribed in subparagraph (A) of such paragraph, 
including best practices used by commercial 
shipyards in foreign allied countries, consider-
ation of commercial design standards, and the 
vessel construction manager model used to con-
struct the National Security Multi Mission Ves-
sel Program, that could improve the efficiency 
of shipbuilding and repair by the Navy and 
Coast Guard. 
(B) An identification of commercial-grade 
components and capabilities being used in state- 
of-the-art commercial, oceangoing maritime ves-
sels and an assessment of whether the Navy 
and Coast Guard could better use commercial 
off-the-shelf components or capabilities to re-
duce costs, improve efficiencies, or enhance ca-
pabilities in the construction of new naval ves-
sels and cutters, and in repair of naval vessels 
and cutters. 
(C) A determination as to whether ship-
building and acquisition programs of the Navy 
and Coast Guard use modern best practices 
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from the commercial maritime industry in 
terms of contracting, ship design, construction, 
overhaul, and maintenance. 
(D) An identification of technologies and 
procedures that are used in commercial ship-
building that, if used by the Navy and Coast 
Guard, would improve the efficiency of design-
ing and constructing new naval vessels. 
(E) An identification of technologies and 
procedures that are used in commercial ship-
building and repair that, if used by the Navy 
and Coast Guard, would improve the efficiency 
of repairing naval vessels. 
(F) An identification of opportunities to 
improve commonality in ship design, ship com-
ponents, and shipbuilding procedures between 
commercial, oceangoing maritime vessels, naval 
vessels, and cutters that could lead to improved 
efficiencies and a more resilient industrial base 
to support shipbuilding and repair for military 
and civil maritime vessels. 
(G) An identification of advanced nuclear 
technologies that are under development for use 
in commercial shipbuilding that, if used by the 
Navy and Coast Guard, would improve the 
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operational capability of naval vessels and cut-
ters. 
(H) An identification of the barriers pre-
venting or making prohibitive the use of small 
modular reactors in naval or commercial, ocean-
going maritime vessels, including— 
(i) ambiguity in regulations governing 
nuclear propulsion restricting the commer-
cial maritime industry from utilizing nu-
clear propulsion or collaborating between 
United States and foreign entities under 
export controls requirements, including 
section 744.5 of title 15, Code of Federal 
Regulations (or a similar successor regula-
tion); and 
(ii) a lack of clarity in the meaning of 
‘‘maritime (civil) nuclear propulsion plant 
projects’’ contained in the Export Adminis-
tration Regulations and ‘‘Naval Nuclear 
Propulsion’’ contained in the International 
Traffic in Arms Regulations (Cat VI). 
(I) An evaluation of education and tech-
nology development best practices used by com-
mercial shipyards in foreign allied countries, 
and an identification of education and tech-
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nology development opportunities, that could 
improve the efficiency of shipbuilding and re-
pair by the Navy and Coast Guard. 
(J) An evaluation of whether adoption of 
the best practices evaluated under subpara-
graph (A) for the construction and repair of 
naval vessels and cutters would support the do-
mestic commercial maritime shipbuilding indus-
try, the commercial maritime industrial base, 
and the merchant marine of the United States. 
(b) BRIEFING.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the 
Navy shall provide to the congressional defense commit-
tees a briefing on— 
(1) the results of the assessment required by 
subsection (a); and 
(2) a plan to execute any measures pursuant to 
such assessment. 
(c) STRATEGY REQUIRED.—Not later than 1 year 
after the date of enactment of this Act, and biennially 
thereafter, the Secretary of the Navy and Secretary of the 
Department in which the Coast Guard is operating shall— 
(1) provide to the appropriate committees of 
Congress strategies describing how measures identi-
fied as a result of the assessment required by sub-
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section (a) will be incorporated into shipbuilding 
programs for the Navy and Coast Guard; and 
(2) publish a public version of the strategies. 
(d) CONGRESSIONAL DEFENSE COMMITTEES DE-
FINED.—In this section, the term ‘‘congressional defense 
committees’’ has the meaning given that term in section 
101(a) of title 10, United States Code. 
SEC. 512. PLAN OF ACTION FOR USE OF DEFENSE PRODUC-
TION ACT OF 1950 AUTHORITIES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the President shall sub-
mit to the appropriate committees of Congress a report 
on a plan of action for any use of authorities available 
under title III of the Defense Production Act of 1950 (50 
U.S.C. 4531 et seq.)— 
(1) to establish or enhance a domestic produc-
tion capability for the construction of militarily use-
ful, commercial maritime vessels that can be oper-
ated in foreign commerce or the domestic commerce 
of the United States; 
(2) to establish, improve, or enhance the de-
fense shipyard industrial base; or 
(3) to establish, improve, or enhance maritime 
port infrastructure of the United States, including 
containers and ship-to-shore cranes that were built 
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in the United States and are owned by citizens of 
the United States. 
(b) COORDINATION.—The President shall develop the 
plan of action required by subsection (a) in consultation 
with— 
(1) the maritime security advisor (as estab-
lished by this Act); 
(2) the Maritime Security Board (as established 
by this Act); 
(3) an advisory committee established under 
section 708(d) of the Defense Production Act of 
1950 (50 U.S.C. 4558(d)); and 
(4) such stakeholders in the private sector as 
the President considers appropriate. 
(c) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate commit-
tees of Congress’’ means— 
(1) the Committee on Armed Services, the 
Committee on Commerce, Science, and Transpor-
tation, and the Committee on Appropriations of the 
Senate; and 
(2) the Committee on Armed Services, the 
Committee on Transportation and Infrastructure, 
and the Committee on Appropriations of the House 
of Representatives. 
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SEC. 513. MILITARY SEALIFT COMMAND. 
(a) AUTHORITY TO OFFER INCREASED PAID LEAVE 
ACCRUAL.—The Secretary of the Navy is authorized to 
offer government merchant mariners employed by Military 
Sealift Command paid leave accrual at a faster rate than 
provided pursuant to the standard General Schedule (GS) 
system to make government seafaring jobs more competi-
tive with the commercial sector. 
(b) REPORT ON RECRUITING AND RETENTION EF-
FORTS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, and an-
nually thereafter, the Secretary of the Navy, in co-
ordination with the Commander of the Military Sea-
lift Command and the Maritime Security Board, and 
in consultation with the Commander of United 
States Transportation Command, the Commander of 
United States Fleet Forces Command, and the As-
sistant Secretary of the Navy for Research, Develop-
ment and Acquisition, shall submit to the appro-
priate committees of Congress a report on efforts to 
improve recruitment and retention of Military Sealift 
Command Mariners. 
(2) ELEMENTS.—The report required under 
paragraph (1) shall consider— 
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(A) opportunities to enhance the integra-
tion of Military Sealift Commander civilian 
mariners into the military command structure; 
(B) providing training on the roles and sig-
nificance of Military Sealift Command civilian 
mariner workforce to relevant military com-
mands; and 
(C) authorities required to improve recruit-
ment and retention of civilian mariners in Mili-
tary Sealift Command. 
(c) REPORT
ON
EXTENDING
CHARTER
DURA-
TIONS.—Not later than 90 days after the date of the en-
actment of this Act, the Secretary of the Navy shall sub-
mit to the appropriate committees of Congress a report 
assessing the merits of extending the maximum charter 
durations of commercial and specialty vessels for the Mili-
tary Sealift Command. 
Subtitle C—Shipbuilding 
Innovation and Infrastructure 
SEC. 521. UNITED STATES CENTER FOR MARITIME INNOVA-
TION. 
(a) IN GENERAL.—Section 50307(e) of title 46, 
United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘through the 
establishment, management, and coordination of 
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geographically and topically diverse maritime incuba-
tors’’ after ‘‘maritime transportation system’’; and 
(2) by striking paragraphs (2), (3), and (4), 
and inserting the following: 
‘‘(2) COOPERATIVE AGREEMENT.—The coopera-
tive agreement shall be with an organization or per-
sons with substantial experience in the maritime in-
dustry, as determined by the Secretary, in consulta-
tion with the Maritime Security Board. 
‘‘(3) SELECTION.—The Center shall be— 
‘‘(A) selected through a competitive proc-
ess of eligible entities, and if a private entity, 
a domestic entity; 
‘‘(B) based in the United States with tech-
nical expertise in emerging marine technologies 
and practices related to the maritime transpor-
tation system; and 
‘‘(C) located in close proximity to eligible 
entities with expertise in United States emerg-
ing maritime technologies and practices. 
‘‘(4) COORDINATION.—The Secretary of Trans-
portation shall coordinate with the Maritime Secu-
rity Board and other agencies critical for science, re-
search, and regulation of emerging marine tech-
nologies for the maritime sector, including the De-
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partment of Defense, the Department of Energy, the 
Environmental Protection Agency, the National 
Science Foundation, the Coast Guard, the National 
Oceanic and Atmospheric Association, and the Ma-
rine Board of the National Academies when estab-
lishing the Center. 
‘‘(5) RESPONSIBILITIES.—The Center shall 
carry out the following activities: 
‘‘(A) Establish and support maritime incu-
bators in accordance with paragraph (6). 
‘‘(B) Accelerate the adoption or integration 
of commercial technologies within the maritime 
industry to transform the capacity and capabili-
ties of the merchant marine of the United 
States. 
‘‘(C) Serve as the principal liaison between 
the Maritime Security Board and maritime in-
cubators. 
‘‘(D) Carry out programs, projects, and 
other activities to strengthen the merchant ma-
rine of the United States and the maritime in-
dustrial base. 
‘‘(E) Coordinate and harmonize the activi-
ties of other organizations and elements of the 
maritime industry on matters relating to com-
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mercial technologies, dual use technologies, and 
the innovation of such technologies. 
‘‘(F) Coordinate and advise efforts among 
elements of the maritime industry on matters 
relating to the development, procurement, and 
fielding of nontraditional capabilities and con-
nect entities developing those capabilities with 
the relevant incubators. 
‘‘(G) Coordinate with maritime industry 
stakeholders to identify operational challenges 
that have the potential to be addressed through 
the use of nontraditional capabilities, including 
dual-use technologies that are being developed 
and financed in the commercial sector. 
‘‘(H) Coordinate with maritime industry 
stakeholders and relevant Federal agencies to 
enhance the capacity and performance of sea-
ports of the United States, including through 
hardening security, enhancing preparedness, 
and developing United States-based supply 
chains for port technologies and equipment. 
‘‘(I) Coordinate with other research and 
development programs and centers focused on 
modes of transportation besides maritime to de-
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velop intermodal interoperability with the mari-
time industry. 
‘‘(J) Develop a standard design for com-
mercial vessels and components and features of 
commercial vessels to be manufactured in the 
United States, using mature, proven designs, 
which— 
‘‘(i) includes, to the maximum extent 
practicable, included parts, components, 
and material manufactured in and sourced 
from the United States; 
‘‘(ii) does not include any parts, com-
ponents, or materials manufactured by for-
eign entities of concern or which are pro-
duced in foreign countries of concern (as 
such terms are defined in section 4 of the 
SHIPS for America Act of 2025); and 
‘‘(iii) includes priorities for design 
identified in consultation with the Sec-
retary of the Navy, as necessary for stra-
tegic sealift, informed by requirements to 
sustain a wartime economy and military 
operations. 
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‘‘(K) Lead engagement with industry, aca-
demia, labor organizations, and other non-
governmental entities to develop— 
‘‘(i) innovative, commercial, and dual- 
use manufacturing technologies and proc-
esses to construct, rehabilitate, or repair 
maritime vessels of the Armed Forces or 
the merchant marine of the United States; 
‘‘(ii) additional naval architecture pro-
grams at institutions of higher education 
in the United States and to expand exist-
ing naval architecture programs; 
‘‘(iii) next-generation propulsion tech-
nologies for the merchant marine of the 
United States, to include small modular re-
actors, low-emission or carbon capture pro-
pulsion technologies, and other renewable 
energy solutions; 
‘‘(iv) new and innovative hardware, 
software, and systems for remote or auton-
omous operations at ports, intermodal fa-
cilities, or aboard oceangoing vessels; 
‘‘(v) technology and infrastructure so-
lutions that enhance the safe operation of 
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oceangoing vessels to protect lives, prop-
erty, and the environment; 
‘‘(vi) solutions to recruit, train, and 
retain a skilled workforce capable of sup-
porting a vibrant and growing United 
States maritime industry; and 
‘‘(vii) the capacity of international al-
lies and partners of the United States, 
with respect to manufacturing technologies 
and processes, to construct, rehabilitate, or 
repair maritime vessels. 
‘‘(L) Work with academic and private sec-
tor response training centers and Centers of 
Excellence for Domestic Maritime Workforce 
Training and Education to develop maritime 
strategies and workforce development plans ap-
plicable to various segments of the United 
States maritime industry, including the inland, 
deep water, and coastal fleets. 
‘‘(M) Establish programs and initiatives to 
share— 
‘‘(i) shipbuilding best practices and 
maritime technology between vessels of the 
Department of Defense and commercial 
vessels of the United States; and 
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‘‘(ii) port technology and logistics best 
practices between the Department of De-
fense and commercial port operators and 
port authorities within the United States. 
‘‘(N) Carry out such other activities as the 
Maritime Security Board determines appro-
priate. 
‘‘(6) ESTABLISHMENT
OF
MARITIME
INCUBA-
TORS.— 
‘‘(A) ESTABLISHMENT.—The Center shall, 
in consultation with the Maritime Security 
Board, seek out, identify, and support the de-
velopment of and experimentation with commer-
cial technologies that have the potential to be 
implemented within the maritime industry, 
through the establishment of a series of mari-
time incubators. 
‘‘(B) REFLECTION.—Each incubator shall 
reflect the unique nature of the region’s capa-
bilities and academic and investor base. 
‘‘(C) SELECTION.—Incubators shall be— 
‘‘(i) selected through a competitive 
process of eligible entities, and if a private 
entity, a domestic entity; 
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‘‘(ii) based in the United States with 
technical expertise in emerging marine 
technologies and practices related to the 
maritime transportation system; 
‘‘(iii) based within a United States 
maritime security investment zone as de-
fined in section 1400Z–3 of the Internal 
Revenue Code of 1986 (as added by sec-
tion 708 of this Act); and 
‘‘(iv) topic-specific, according to re-
gional maritime expertise in United States 
emerging maritime technologies and prac-
tices, to include designated incubators fo-
cused on— 
‘‘(I) clean energy, carbon cap-
ture, and alternative fuels; 
‘‘(II) ports and shoreside infra-
structure; 
‘‘(III) vessel design and naval ar-
chitecture; 
‘‘(IV) shipbuilding and next gen-
eration manufacturing; 
‘‘(V) advanced materials for ship 
construction; and 
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‘‘(VI) other areas for maritime 
innovation and technology, as deter-
mined by the Center in coordination 
with the Maritime Security Board. 
‘‘(D) 
INCUBATOR
RESPONSIBILITIES.— 
Each maritime incubator shall— 
‘‘(i) serve as the principal liaison be-
tween the Center and individuals and enti-
ties that can contribute to innovation with-
in the maritime industry, including other 
maritime incubators under this subsection, 
entrepreneurs, startups, commercial tech-
nology companies, and venture capital 
sources; and 
‘‘(ii) establish and support multi- 
stakeholder research and innovation part-
nerships, as described in subparagraph 
(G). 
‘‘(E) REPORT.—Each incubator shall sub-
mit quarterly activity and status reports to the 
Center. 
‘‘(F) REVIEW AND TERMINATION.— 
‘‘(i) IN GENERAL.—The Maritime Ad-
ministrator may, in consultation with the 
Maritime Security Board, terminate an 
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agreement with an eligible entity selected 
to lead a maritime incubator if the Admin-
istrator certifies that the eligible entity is 
failing to meet the requirements of this 
section. 
‘‘(ii) RESELECTION.—If the Adminis-
trator terminates an agreement with an el-
igible entity to lead a maritime incubator, 
the Center shall initiate a new selection 
process as required under subparagraph 
(C) to select a new eligible entity. 
‘‘(iii) REVIEW
OF
ELIGIBLE
ENTI-
TIES.—Not later than 5 years after the es-
tablishment of maritime incubators under 
this paragraph, and every 5 years there-
after, the Administrator, in coordination 
with the Maritime Security Board, shall 
conduct a review of all eligible entities se-
lected to lead a maritime incubator and 
confirm the entity is adequately fulfilling 
the requirements of this section. 
‘‘(G) 
MULTI-STAKEHOLDER
PARTNER-
SHIPS.— 
‘‘(i) IN GENERAL.—The maritime in-
cubators established under this subsection 
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shall establish and support multi-stake-
holder research and innovation partner-
ships that— 
‘‘(I) have the potential to gen-
erate technologies, processes, prod-
ucts, or other solutions that support 
the United States maritime industry; 
‘‘(II) have as an objective the 
technology transfer or commercializa-
tion of the work product generated by 
the partnership, which may include 
work product that incorporates intel-
lectual property developed by the Fed-
eral Government and licensed to the 
partnership in accordance with clause 
(iii); and 
‘‘(III) incentivize and expand 
geographically diverse participation in 
graduate and undergraduate institu-
tions of higher education, community 
college, and other workforce programs 
relevant to the maritime industry. 
‘‘(ii) SUPPORT
PROVIDED.—Support 
provided by the maritime incubator to a 
multi-stakeholder research and innovation 
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partnership under this subsection may in-
clude— 
‘‘(I) providing funding or other 
resources to the partnership; 
‘‘(II) participating in the part-
nership; 
‘‘(III) providing technical and 
technological advice and guidance to 
the partnership; 
‘‘(IV) suggesting and introducing 
other participants for inclusion in the 
partnership; 
‘‘(V) providing the partnership 
with insight into desired solutions for 
defense and security needs; 
‘‘(VI) providing access to Ready 
Reserve ships for testing new tech-
nologies and conducting research, as 
the maritime incubator determines ap-
propriate, in coordination with the 
Center and the Administrator; and 
‘‘(VII) such other forms of sup-
port as the Center, in consultation 
with maritime incubators and Mari-
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time Security Board, determines ap-
propriate. 
‘‘(iii) AVAILABILITY
OF
INTELLEC-
TUAL PROPERTY.—To the extent the Cen-
ter determines appropriate, the Center, in 
coordination with the maritime incubators, 
shall seek to actively inform potential par-
ticipants in multi-stakeholder research and 
innovation partnerships of the availability 
of intellectual property developed by the 
Federal Government that may be licensed 
to the partnership. 
‘‘(7) REPORT.—Not later than 180 days after 
the date of enactment of the SHIPS for America 
Act of 2025, and annually thereafter, the Center 
shall submit to the Maritime Security Board and the 
appropriate congressional committees a report on 
the activities, advances, outcomes, and work product 
of the maritime incubators and the multi-stakeholder 
research and innovation partnerships supported 
under this subsection. 
‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—In 
addition to the funding contributed under subsection 
(a)(4), there is authorized to be appropriated, out of 
the Maritime Security Trust Fund established under 
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‘‘(1) IN GENERAL.—The term ‘maritime pros-
perity zone’ means any population census tract 
that— 
‘‘(A) contains or is determined by the Mar-
itime Administrator to be a viable site for— 
‘‘(i) a shipyard of the United States, 
‘‘(ii) a port, or 
‘‘(iii) a harbor facility, and 
‘‘(B) is designated as a maritime pros-
perity zone under paragraph (2). 
‘‘(2) DESIGNATION.—A population census tract 
is designated as a maritime prosperity zone under 
this paragraph if— 
‘‘(A) the Maritime Administrator, in con-
sultation with the Secretary of the Navy and 
the Maritime Security Board, nominates the 
tract for designation as a maritime prosperity 
zone and notifies the Secretary in writing of 
such nomination, and 
‘‘(B) the Secretary certifies such nomina-
tion and designates such tract as a qualified 
maritime prosperity zone. 
‘‘(3) NUMBER OF POPULATION CENSUS TRACTS 
DESIGNATED.—Not more than 100 population cen-
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