[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3151 Introduced in House (IH)]
<DOC>
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. Rutherford, 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) introduced the following bill; which was referred to the
Committee on Armed Services, and in addition to the Committees on
Transportation and Infrastructure, Ways and Means, Energy and Commerce,
Foreign Affairs, Oversight and Government Reform, Education and
Workforce, Financial Services, the Judiciary, Natural Resources,
Science, Space, and Technology, and Veterans' Affairs, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To support the national defense and economic security of the United
States by supporting vessels, ports, and shipyards of the United States
and the U.S. maritime workforce.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Shipbuilding and
Harbor Infrastructure for Prosperity and Security for America Act of
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.
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
shipbuilding.
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.
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
exchanges.
Subtitle C--United States Merchant Marine Academy and State Maritime
Academies
Sec. 621. Authorization of appropriations for United States Merchant
Marine Academy infrastructure and
facilities modernization.
Sec. 622. United States Merchant Marine Academy.
Sec. 623. Retirement service credit for service as a midshipman at the
United States Merchant Marine Academy.
Sec. 624. State maritime academies.
Sec. 625. Enforcement of service obligation requirements.
Sec. 626. Fuel funding for training ships operated by State maritime
academies.
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
income.
Sec. 709. Maritime fuel tax parity.
Sec. 710. Treatment of maritime prosperity zones as opportunity zones.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Strategic sealift, made up of Government and commercial
vessels and mariners, is a critical capability for executing
the maritime defense strategy and the wartime and peacetime
economy of the United States.
(2) Ensuring a modern and ready capability will require
significant investment, policy prioritization, and the
innovation of the people of the United States.
(3) The worldwide ocean economy is worth between
$3,000,000,000,000 and $6,000,000,000,000, according to the
United Nations Conference on Trade and Development. Yet,
vessels of the United States carry less than 2 percent of
United States international commercial cargoes by weight.
(4) The United States has fewer than 200 oceangoing vessels
of the United States, of which only approximately 80 vessels
participate in international commerce, compared with more than
5,500 Chinese documented vessels.
(5) Bracketed by the Atlantic, Pacific, and Arctic oceans,
the prosperity and security of the United States has always
been tied to its position as a maritime Nation. Throughout
human history, the 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 capacity, undersized maritime workforce,
and shrinking fleet of shipping vessels means the United States
relies on other nations to conduct international commerce 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 vessels--down from more
than 80 at the end of the Second World War.
(8) During World War II, the United States Merchant Marine
powered the Allies to victory with more than 10,000 oceangoing
vessels of the United States. Today there are just 80 vessels
of the United States engaged in international trade.
(9) The People's Republic of China has made investments in
the maritime industry a strategic priority over the past 20
years.
(10) As of 2023, shipyards in the United States had fewer
than 5 shipbuilding orders for oceangoing vessels, while
shipyards in the People's Republic of China had more than 1,700
orders, according to BRS Group. According to the Office of
Naval Intelligence, the People's Republic of China became the
world's top shipbuilding and shipping nation, boasting 230
times more shipbuilding capacity than the United States.
(11) With just 12,000 United States merchant mariners
operating oceangoing vessels, the United States may not have a
sufficient number of mariners to fully power the strategic
sealift vessels necessary in a future prolonged conflict.
(12) The American Civil Society of Engineers assesses that
the United States has a national maintenance backlog amounting
to $125,000,000,000 for bridges, $163,000,000,000 for ports,
and $6,800,000,000 for inland waterways.
(13) The maritime industry is inherently international.
Eighty percent of United States goods are imported by sea, of
which 98 percent come into the United States on foreign
documented vessels. Only 2 percent of such goods come into the
United States on vessels of the United States, leaving the
United States economy disproportionately dependent on
oceangoing trade controlled by often adversarial foreign
nations. The Nation's ability to provide services in both
international and interstate commerce is critical to national
and economic defense.
(14) Since November 2023, vessels engaged in international
commerce have been threatened by the Houthis, which has
threatened global supply chains, increased costs, and required
naval force protection operations in the Red Sea through the
United States-led Operation Prosperity Guardian that formed in
December 2023.
(15) A fleet of commercial shipping vessels of the United
States, crewed with citizen mariners, that is competitive in
domestic and international trade enhances the United States
military's readiness, allows the United States to more
strategically compete with China, and underwrites the security
and survival of the United States in times of crisis and war.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that the United States must--
(1) create a more favorable domestic and global maritime
environment for vessels of the United States engaged in
international commerce, shipbuilding, ship repair, maritime
logistics, the maritime workforce, and naval power,
contributing to assured access to the world's oceans free from
coercion from strategic competitors and asymmetric adversaries;
(2) increase domestic shipbuilding and ship repair
capacity, with programs and policies that enable the growth of
United States shipyards and the maritime industrial base,
enhance military sealift capacity, expand the United States
maritime workforce, and enhance national security;
(3) revitalize the international fleet of vessels of the
United States and foster a comparative advantage for the United
States through targeted incentives and regulatory reforms to
make the fleet competitive with international carriers and to
gain a sustainable share of the global maritime market in order
to bolster supply chains, strengthen economic security, and
lower prices, 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;
(5) recognize that a vibrant commercial shipbuilding
industry provides supply chain resiliencies and creates
economies of scale that improve military, Coast Guard, and
Government shipbuilding and support military operations through
strategic sealift to defend the freedom of the seas;
(6) 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 Defense, the Federal Maritime
Commission, and all other Federal agencies with a maritime
nexus, to protect, regulate, and support the United States
maritime industry, resolve disputes, and implement a whole-of-
Government national maritime strategy;
(8) recognize that, while a strong Navy is the surest
guarantee of peace, building the Navy, sustaining the Navy, and
supplying the Navy is founded on a robust commercial industrial
base;
(9) establish reliable long-term demand signals for, and
investments in, oceangoing commercial vessels that are built in
the United States, documented under the laws of the United
States, and crewed by United States mariners;
(10) evaluate past and present maritime efforts to take
actions to revitalize the United States maritime industry;
(11) strengthen the United States intercoastal and domestic
trade fleet, which is the foundation upon which a revitalized
United States-documented shipping and domestic shipbuilding
industry will be built;
(12) recognize the important role that the support craft,
passenger, and fishing vessel fleet play in the United States
maritime industry;
(13) encourage the shipping of commercial cargo on vessels
of the United States, with the aim of growing the size and
carrying capacity of the international fleet of vessels of the
United States;
(14) grow the shipping capacity of vessels of the United
States and guarantee United States Government cargo during
peacetime;
(15) develop a whole-of-Government effort to expand,
develop, and protect the maritime workforce;
(16) recognize the need for more workers in the maritime
sector and stimulate growth in the United States maritime and
shipbuilding industries, including by increasing access to
early maritime education, commissioning national marketing
campaigns to demonstrate how United States shipbuilding, United
States-documented shipping, and maritime workers are critical
to national security, and implementing workforce accelerator
programs;
(17) remove barriers to training mariners, including
reevaluating Coast Guard training requirements regarding
faculty credentials, instructional facility designs, sea time
requirements, and other identified barriers, consistent with
international treaty obligations;
(18) expand and nurture a robust mariner workforce that
enhances the national security and strategic sealift readiness
of the United States by increasing the number of United States
mariners and improving existing pathways and establishing new
pathways for new, current, and former merchant mariners to go
to sea;
(19) recognize that the United States Merchant Marine
Academy and our State maritime academies are critical to
training the next generation of licensed officers and engineers
on vessels of the United States;
(20) invest and innovate in domestic shipbuilding, ship
repair, and the shipping capabilities and capacity of vessels
of the United States to advance the power and influence of the
maritime industry of the United States;
(21) drive multi-stakeholder research, development,
assessment, and deployment of emerging marine technologies and
best practices related to the maritime transportation system to
ensure United States leadership in next-generation
shipbuilding, ship repair, and maritime logistics;
(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 operation, and merchant
mariner credentialing, in order to revitalize the United States
maritime industry;
(24) seek mutually beneficial relationships with treaty
allies and strategic partners to grow the domestic shipping and
shipbuilding industries of the United States and to share the
burden of providing freedom of navigation on the high seas,
while de-risking the United States maritime domain from the
People's Republic of China, foreign countries of concern, and
asymmetric or emerging maritime threats;
(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 congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Armed Services, the Committee
on Commerce, Science, and Transportation, and the
Committee on Appropriations of the Senate; and
(B) the Committee on Armed Services, the Committee
on Transportation and Infrastructure, and the Committee
on Appropriations of the House of Representatives.
(2) Domestic commerce.--The term ``domestic commerce''
means the transportation of goods or passengers between places
in the United States.
(3) Foreign commerce.--The term ``foreign commerce''
means--
(A) commerce or trade between the United States,
its territories or possessions, or the District of
Columbia, and a foreign country; and
(B) commerce or trade between foreign countries.
(4) Foreign country of concern.--The term ``foreign country
of concern'' means--
(A) a country that is a covered nation (as defined
in section 4872(d) of title 10, United States Code);
and
(B) any country that the Maritime Administrator, in
consultation with the Secretary of Defense, the
Secretary of State, the Director of National
Intelligence, and the Chair of the Federal Maritime
Commission, determines to be engaged in conduct that is
detrimental to the national security or foreign policy
of the United States.
(5) Foreign entity.--The term ``foreign entity''--
(A) means--
(i) a government of a foreign country or a
foreign political party, 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 lawful
permanent resident of the United States, a
citizen of the United States, or any other
protected individual (as such term is defined
in section 274B(a)(3) of the Immigration and
Nationality Act (8 U.S.C. 1324b(a)(3))); or
(iii) a partnership, association,
corporation, organization, or other combination
of persons organized under the laws of or
having its principal place of business in a
foreign country; and
(B) includes--
(i) any person (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 employee of an
entity listed in subparagraph (A);
(iii) any person who acts in any other
capacity at the order, request, or under the
direction or control, of an entity listed in
subparagraph (A), or of a person whose
activities are directly or indirectly
supervised, directed, controlled, financed, or
subsidized in whole or in major part by an
entity listed in subparagraph (A);
(iv) any person who directly or indirectly
through any contract, arrangement,
understanding, relationship, or otherwise, owns
25 percent or more of the equity interests of
an entity listed in subparagraph (A);
(v) any person with significant
responsibility to control, manage, or direct an
entity listed in subparagraph (A);
(vi) any person, wherever located, who is a
citizen or resident of a country controlled by
an entity listed in subparagraph (A); or
(vii) any corporation, partnership,
association, or other organization organized
under the laws of a country controlled by an
entity listed in subparagraph (A).
(6) Foreign entity of concern.--The term ``foreign entity
of concern'' means any foreign entity that is--
(A) designated as a foreign terrorist organization
by the Secretary of State under section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189);
(B) included on the list of specially designated
nationals and blocked persons maintained by the Office
of Foreign Assets Control of the Department of the
Treasury;
(C) owned by, controlled by, or subject to the
jurisdiction or direction of a government of a foreign
country of concern;
(D) alleged by the Attorney General to have been
involved in activities for which a conviction was
obtained under--
(i) chapter 37 of title 18, United States
Code (commonly known as the ``Espionage Act'')
(18 U.S.C. 792 et seq.);
(ii) section 951 or 1030 of title 18,
United States Code;
(iii) chapter 90 of title 18, United States
Code (commonly known as the ``Economic
Espionage Act of 1996'');
(iv) the Arms Export Control Act (22 U.S.C.
2751 et seq.);
(v) section 224, 225, 226, 227, or 236 of
the Atomic Energy Act of 1954 (42 U.S.C. 2274,
2275, 2276, 2277, and 2284);
(vi) the Export Control Reform Act of 2018
(50 U.S.C. 4801 et seq.); or
(vii) the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.);
(E) designated by the Federal Maritime Commission
as a controlled carrier under chapter 407 of title 46,
United States Code;
(F) found by the Federal Maritime Commission to be
practicing unfavorable conditions in foreign trade
under chapter 421 or 423 of title 46, United States
Code; or
(G) determined by the Maritime Administrator, in
consultation with the Secretary of Defense, the
Secretary of State, the Director of National
Intelligence, and the Chair of the Federal Maritime
Commission, to be engaged in unauthorized conduct that
is detrimental to the national security or foreign
policy of the United States.
(7) Vessel of the united states.--The term ``vessel of the
United States'' has the meaning given that term in section 116
of title 46, United States Code.
TITLE I--OVERSIGHT AND ACCOUNTABILITY
SEC. 101. MARITIME SECURITY ADVISOR; MARITIME SECURITY BOARD.
(a) Amendments.--Chapter 504 of part A of subtitle V of title 46,
United States Code, is amended--
(1) by striking the chapter heading and inserting the
following: ``OVERSIGHT AND ACCOUNTABILITY'';
(2) by redesignating section 50401 as section 50403; and
(3) by inserting before section 50402, the following:
``Sec. 50401. Maritime Security Advisor; Maritime Security Board
``(a) Maritime Security Advisor.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the President shall appoint a
Special Advisor to the President (to be known as the `Maritime
Security Advisor') for coordinating national maritime affairs
and policy, including developing, updating, and implementing
the National Maritime Strategy as required under section 50114
of this title.
``(2) Duties.--The Maritime Security Advisor appointed
under paragraph (1) shall serve as the Chair of the Maritime
Security Board, shall be the principal advisor to the President
on all issues related to the maritime industry, shipbuilding,
and ship repair, and shall be responsible for developing,
updating, and implementing the National Maritime Strategy under
section 50114 of this title within and across the Federal
Government.
``(3) Office of the maritime security advisor.--
``(A) In general.--There is established in the
Executive Office of the President, an Office of the
Maritime Security Advisor. The Maritime Security
Advisor described in this subsection shall be the head
of such Office.
``(B) Employees; contracts.--In carrying out the
functions under this section, the Maritime Security
Advisor is authorized to--
``(i) appoint such officers and employees
as the Maritime Security Advisor may deem
necessary to perform the functions now or
hereafter vested in the Maritime Security
Advisor and to prescribe their duties; and
``(ii) enter into contracts and other
arrangements for studies, analyses, and other
services with public agencies and with private
persons, organizations, or institutions, and
make such payments as the Maritime Security
Advisor deems necessary to carry out the
provisions of this section.
``(b) Maritime Security Board.--Not later than 90 days after the
date of enactment of this section, the President shall establish a
board, to be known as the `Maritime Security Board' (in this section
referred to as the `Board').
``(1) Composition.--
``(A) In general.--The Board shall be comprised of
the following individuals and representatives:
``(i) The Maritime Security Advisor
described in subsection (a).
``(ii) The Maritime Administrator.
``(iii) The Commandant of the Coast Guard.
``(iv) The Secretary of the Navy.
``(v) The Commander of the United States
Transportation Command.
``(vi) The Chair of the Federal Maritime
Commission.
``(vii) The Assistant Secretary of the Army
for Civil Works.
``(viii) The chief United States delegate
to the International Maritime Organization.
``(ix) The Under Secretary of Commerce for
Oceans and Atmosphere.
``(x) The Commissioner for Customs and
Border Protection.
``(xi) The Director of the Office of
Management and Budget, or a designee.
``(xii) The Secretary of Transportation, or
a designee.
``(xiii) The Secretary of Homeland
Security, or a designee.
``(xiv) The Secretary of State, or a
designee.
``(xv) The Secretary of Labor, or a
designee.
``(xvi) The Secretary of Commerce, or a
designee.
``(xvii) The Secretary of the Treasury, or
a designee.
``(xviii) The Administrator of the
Environmental Protection Agency, or a designee.
``(xix) The United States Trade
Representative, or a designee.
``(xx) The head of each agency with a
statutory responsibility for administering the
Food for Peace Act (7 U.S.C. 1691 et seq.), or
a designee.
``(xxi) From the Department of Defense--
``(I) the Secretary of Defense, or
a designee;
``(II) The Commander of the
Military Sealift Command.
``(III) The Commander of Naval Sea
Systems Command.
``(IV) a representative of the
Army, as appointed by the Secretary of
Defense;
``(V) a representative of the Air
Force, as appointed by the Secretary of
Defense; and
``(VI) a representative of the
Navy, as appointed by the Secretary of
Defense.
``(B) Nonvoting members.--The individuals and
representatives listed in clauses (xi) through (xxi)
shall be nonvoting members.
``(C) Chair.--The Maritime Security Advisor shall
serve as the Chair of the Board.
``(2) Duties.--Consistent with the National Maritime
Strategy under section 50114 of this title, the Board shall
carry out the following duties:
``(A) Supporting the development of the marine
transportation system of the United States, including--
``(i) assessing the adequacy of the marine
transportation system (including ports,
waterways, channels, and their intermodal
connections);
``(ii) promoting the integration of the
marine transportation system with other modes
of transportation and other uses of the marine
environment; and
``(iii) coordinating, improving the
coordination of, and making recommendations
with regard to Federal policies that impact the
marine transportation system.
``(B) Establishing policy priorities relating to,
and conducting independent oversight over, the
financial assistance programs under part C of subtitle
V of this title, including--
``(i) not later than 1 year after the date
of enactment of the SHIPS for America Act of
2025 and annually thereafter, establishing
targets for the number, type, and requirements
of vessels to be included in each of--
``(I) the Maritime Security Fleet
(consistent with the most recent
Mobility Capability Requirements Study
produced by United States
Transportation Command);
``(II) the Cable Security Fleet;
``(III) the Tanker Security Fleet
(consistent with the most recent
Mobility Capability Requirements Study
produced by United States
Transportation Command);
``(IV) the Strategic Commercial
Fleet; and
``(V) the Shipbuilding Financial
Incentives Program;
``(ii) submitting annual recommendations to
the appropriate committees of Congress for any
needed changes in the authorized number of
vessels eligible to participate in the programs
under part C of subtitle V of this title; and
``(iii) conducting oversight of the
administration of such financial assistance
programs to ensure such programs support the
strategic sealift objectives and policy of the
United States, as established in section 59101
of this title.
``(C) Supporting the Maritime Administrator in all
efforts to conduct independent oversight of passenger
and cargo preference requirements and supporting
efforts to enable cargo to be carried on vessels of the
United States, including--
``(i) conducting oversight and coordinating
interagency efforts to comply with cargo
preference requirements established under
chapter 553 of this title and section 2631 of
title 10;
``(ii) independently verifying that all
Federal agencies follow the requirements for
cargoes procured, furnished, or financed by the
United States Government under section 55305 of
this title, and notifying the appropriate
committees of Congress of any identified
violations of the requirements of such section;
``(iii) conducting outreach among
nongovernmental stakeholders, including private
industry, to encourage more cargo to be moved
on vessels of the United States;
``(iv) developing recommendations for
regulations to be issued by Federal agencies to
preference the movement of cargo on vessels of
the United States; and
``(v) submitting recommendations to the
appropriate committees of Congress for changes
to laws relating to passenger and cargo
preferences for the purpose of establishing a
more robust fleet of vessels of the United
States.
``(D) Conducting independent oversight and
developing guidance and recommendations related to the
enforcement of the requirements of chapters 121 and 551
of this title.
``(E) Coordinating national efforts to develop a
robust maritime workforce that enhances the national
security and strategic sealift readiness of the United
States, including--
``(i) coordinating and conducting oversight
of interagency efforts and partnerships with
the maritime industry and qualified labor
organizations to recruit, train, and retain
qualified licensed and unlicensed merchant
mariners; and
``(ii) coordinating and conducting
oversight of interagency efforts and
partnerships with the shipbuilding industry to
recruit, train, and retain qualified workers in
the shipbuilding industry of the United States.
``(F) Establishing national priorities for research
and development of next-generation technologies to
enhance United States leadership in the shipbuilding
and maritime industries, including through the Center
for Maritime Innovation established under section
50307.
``(G) Coordinating interagency efforts to ensure
vessels of the United States operating in international
commerce are privileged in regulation, taxation, fees,
insurance, and policy compared to foreign vessels
conducting trade with a United States-domiciled entity,
while remaining consistent with the international
obligations of the United States.
``(H) Coordinating efforts to protect vessels of
the United States operating in international or
domestic commerce from physical and cybersecurity
threats.
``(I) Conducting oversight of the use of funds from
the Maritime Security Trust Fund established under
section 50301(b) of this title, and making
recommendations to Congress for expenditures from the
Trust Fund.
``(J) Conducting studies on subjects related to the
maritime industry and international shipping, and
undertaking other efforts related to strengthening the
maritime security of the United States.
``(K) Carrying out other duties, as assigned by the
President in consultation with the Maritime Security
Advisor, related to the maritime industry,
shipbuilding, ship repair, strategic sealift, and the
marine transportation system of the United States.
``(3) Delegation.--The Board may task agencies 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 support its
activities.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 for each of fiscal years 2026 through 2035,
from the Maritime Security 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 enhance the strength of the
United States maritime industry and support the
economic and national security needs of the United
States;.
``(2) Appropriate committees of congress.--In this section,
the term `appropriate committees of Congress' has the meaning
given that term in section 4 of the SHIPS for America Act of
2025.''.
(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 National Maritime Strategy and submit
that National Maritime Strategy to the appropriate committees
of Congress (as that term is defined in section 4 of the SHIPS
for America Act of 2025).
``(2) Transition.--Notwithstanding paragraph (1), if a
national maritime strategy has been developed and submitted in
accordance with this section, as in effect on the day before
the date of enactment of the SHIPS for America Act of 2025, in
the 1-year period before such date of enactment, the Maritime
Security Advisor shall implement and update that national
maritime strategy and shall not develop a new national maritime
strategy.''; and
(2) by striking subsections (c) and (d) and inserting the
following:
``(c) Implementation.--Upon the release of a strategy under this
section, the Maritime Security Advisor, in consultation with the
Maritime Security Board, shall be responsible for implementing the
contents and recommendations of the strategy.
``(d) Update.--The Maritime Security Advisor, in coordination with
the Maritime Security Board, shall submit to the appropriate committees
of Congress (as that term is defined in section 4 of the SHIPS for
America Act of 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
Security Board, shall make publicly available on an appropriate website
each strategy or updated strategy and an implementation plan for such
strategy or update.''.
SEC. 102. MARITIME TRANSPORTATION SYSTEM NATIONAL ADVISORY COMMITTEE.
Section 50402 is amended--
(1) in subsection (b), by striking ``Secretary of
Transportation'' and inserting ``Maritime Security Advisor and
Maritime Security Board''; and
(2) in subsection (c)--
(A) in paragraph (1), by striking ``by the
Secretary of Transportation'';
(B) by striking paragraph (3) and inserting the
following:
``(3) Representation.--Members of the Committee shall be
appointed as follows:
``(A) The Maritime Security Advisor shall appoint
the following members of the Committee:
``(i) At least one member to represent the
Environmental Protection Agency.
``(ii) At least one member to represent the
Department of Commerce.
``(iii) At least one member to represent
the Corps of Engineers.
``(iv) At least one member to represent the
Coast Guard.
``(v) At least one member to represent
Customs and Border Protection.
``(vi) At least one member to represent the
Maritime Administration.
``(vii) At least one member to represent
the Department of Agriculture.
``(viii) At least one member to represent
the State Department.
``(ix) At least one member to represent
State and local governmental entities.
``(B) Additional members shall represent private
sector entities that reflect a cross-section of
maritime industries, including credentialed United
States merchant mariners, port and water stakeholders,
academia, and labor, of whom--
``(i) 3 shall be appointed by the majority
leader of the Senate;
``(ii) 3 shall be appointed by the minority
leader of the Senate;
``(iii) 3 shall be appointed by the Speaker
of the House of Representatives; and
``(iv) 3 shall be appointed by the minority
leader of the House of Representatives.
``(C) The Maritime Security Advisor may appoint
additional members of the Committee, including
additional representatives from the United States
Merchant Marine Academy, State maritime academies, or
other Federal agencies, as the Secretary considers
appropriate.''; and
(C) in paragraph (4), by redesignating
subparagraphs (A) and (B) as clauses (i) and (ii),
respectively, and adjusting the margins accordingly;
(D) by redesignating paragraph (4) as subparagraph
(A) and adjusting the margins accordingly;
(E) by inserting after paragraph (3) the following:
``(4) Restrictions on members.--''; and
(F) at the end of paragraph (4), as so designated,
by inserting the following:
``(B) Restrictions on additional members.--Members
appointed under this paragraph that are not
representing Federal agencies--
``(i) shall remain on the Committee for a
term of 3 years from the date that the member
is appointed; and
``(ii) may not serve more than 2
consecutive terms.''.
SEC. 103. DIRECT HIRE AUTHORITY; AUTHORIZATION FOR ADMINISTRATIVE
EXPENSES.
(a) Maritime Administration Direct Hire Authority.--
(1) In general.--The Maritime Administrator may appoint,
without regard to the provisions of sections 3309 through 3319
of title 5, United States Code, candidates to positions in the
competitive service within the Maritime Administration for
which--
(A) public notice has been given;
(B) the Administrator has determined that a
critical hiring need exists; and
(C) the Administrator has consulted with the
Director of the Office of Personnel Management
regarding--
(i) the positions for which the
Administrator plans to recruit;
(ii) the quantity of candidates the
Administrator is seeking; and
(iii) the assessment and selection policies
the Administrator plans to utilize.
(2) Definition of critical hiring need.--In this
subsection, the term ``critical hiring need'' means personnel
necessary for the implementation of this Act and associated
work.
(b) Coast Guard Direct Hire Authority.--
(1) In general.--The Secretary of the department in which
the Coast Guard is operating may appoint, without regard to the
provisions of sections 3309 through 3319 of title 5, United
States Code, candidates 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 Secretary
plans to recruit;
(ii) the quantity of candidates the
Secretary is seeking; and
(iii) the assessment and selection policies
the Secretary plans to utilize.
(2) Definition of critical hiring need.--In this
subsection, the term ``critical hiring need'' means personnel
necessary for the implementation of this Act and associated
work.
(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 Administrative Expenses.--
There is authorized to be appropriated from the Maritime Security Trust
Fund established under section 50301(b) of title 46, United States
Code--
(1) $30,000,000 to the Secretary of Transportation 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 department in which
the Coast Guard is operating for administrative expenses of the
Coast Guard to administer 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 Commission 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 Maritime Administrator and the
Secretary of the department in which the Coast Guard is operating shall
each submit to the appropriate committees of Congress and the Maritime
Security Board a separate implementation plan for carrying out this
Act, and the amendments made by this Act.
(b) Elements.--Each implementation plan required under subsection
(a) shall include, for each action required of the Maritime
Administrator and the Secretary of the department in which the Coast
Guard is operating (as applicable) in this Act, including the
amendments made by this Act--
(1) an identification of all administrative restructuring
requirements;
(2) an identification of each office or division within the
Maritime Administration or Coast Guard principally responsible
for each relevant section of this Act;
(3) an identification of additional personnel needed to
sufficiently implement this Act, a hiring plan, and a training
plan;
(4) an identification of any barrier (including any policy,
law, or regulation) to implementation of any section of this
Act, and recommendations to address those barriers;
(5) a descriptive implementation timeline, taking into
account the administrative needs of the Maritime Administration
or the Coast Guard; and
(6) any additional components determined appropriate by the
Maritime Administrator or such Secretary to ensure the success
of implementation of this Act.
(c) Briefing.--Not later than 15 days after submitting each
implementation plan required under subsection (a), the Maritime
Administrator and the Secretary of the department in which the Coast
Guard is operating shall provide a briefing to the appropriate
committees of Congress on the status of that implementation plan
required under subsection (a).
(d) Biannual Update.--Not less frequently than biannually following
the submission of the plans under subsection (a) and for 2 years
thereafter, the Maritime Administrator and the Secretary of the
department in which the Coast Guard is operating shall submit to the
appropriate committees of Congress separate reports containing any
updates on the implementation of such plans.
(e) GAO Review.--The Comptroller General of the United States
shall--
(1) not later than 2 years after the date of enactment of
this Act, and biennially thereafter for 10 years, conduct a
review of the activities carried out in accordance with this
Act, and the amendments made by this Act; and
(2) submit to the appropriate committees of Congress the
results of each review.
SEC. 105. FEDERAL MARITIME COMMISSION REPORT ON VESSELS OF THE UNITED
STATES.
(a) In General.--The Federal Maritime Commission shall annually
submit a report to the Maritime Security Board and the appropriate
committees of Congress evaluating the competitiveness of vessels of the
United States in foreign commerce. The Maritime Security Board shall
utilize the findings of such report to inform the National Maritime
Strategy under section 50114 of title 46, United States Code, and other
activities of the Board.
(b) Contents.--The report shall include--
(1) metrics concerning carriage of foreign commerce on
vessels of the United States;
(2) information about the price parity of carriage of
foreign commerce on vessels of the United States versus foreign
vessels (as defined in section 110 of title 46, United States
Code) by market;
(3) identification of markets of opportunity for the United
States to compete in foreign commerce where rates are in
relative parity to vessels of the United States;
(4) markets in which United States interests paid above
average rates for foreign commerce, including with foreign and
domestic carriers; and
(5) an assessment of the foreign vessel registries of peer
competitor countries to determine--
(A) the roles of the governments of peer competitor
countries in their vessel registry processes, including
policy practices that may provide a disadvantage to the
United States;
(B) the sizes of the fleets of foreign vessels
registered with such countries, including how many of
such foreign vessels are domestically built and how
many are built in other countries; and
(C) the price parity of vessels of the United
States, as compared to foreign vessels registered with
peer competitor countries that are operating in global
markets identified as a priority by the Federal
Maritime Commission.
TITLE II--MARITIME SECURITY TRUST FUND
SEC. 201. MARITIME SECURITY TRUST FUND ESTABLISHED.
Section 50301 of title 46, United States Code, is amended--
(1) by striking the section heading and inserting ``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 accordingly;
(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 inserting
``Subparagraph (A)''; and
(E) in subparagraph (C), as redesignated by
subparagraph (B), by striking ``Paragraph (1)'' and
inserting ``Subparagraph (A)'';
(3) in subsection (f), by redesignating paragraphs (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 adjusting the
margins accordingly;
(5) in subsection (a), by striking ``In General'' 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 Security Trust
Fund' for use in carrying out programs or activities associated
with supporting the merchant marine of the United States and
the maritime industrial base, as authorized under the SHIPS for
America Act of 2025.
``(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 (relating
to regular tonnage taxes);
``(ii) section 60302 of this title
(relating to special tonnage taxes); and
``(iii) section 60303 of this title
(relating 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 vessels);
``(ii) duties, fees, or monetary penalties
imposed by the United States Trade
Representative under section 301 of the Trade
Act of 1974 (19 U.S.C. 2411) pursuant to the
determination of the Trade Representative that
the targeting of the maritime, logistics, and
shipbuilding sectors for dominance by the
People's Republic of China is unreasonable and
burdens or restricts United States commerce,
notice of which was published in the Federal
Register on January 23, 2025 (90 Fed. Reg.
8089); and
``(iii) duties imposed under section 60502
of this title (relating to discriminating 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 United
States Government under subsection (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 Maritime Security Trust
Fund shall be available for making expenditures before October
1, 2035, to meet those obligations of the United States
heretofore and hereafter incurred which are authorized to be
paid out of the Maritime Security Trust Fund under the SHIPS
for America Act of 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 country of concern or a
foreign entity of concern, that has the capacity to
produce both military and commercial vessels; and
(B) a foreign shipyard designated under paragraph
(2).
(2) Designation.--
(A) In general.--Beginning after October 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 economic 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 shipyards
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 subsection (e); and
(2) by inserting after subsection (b) the following:
``(c) Penalty Rate.--
``(1) In general.--In accordance with paragraph (2), and in
addition to the tax imposed on a vessel under subsection (b), a
penalty tax with no annual limit is imposed on a vessel subject
to the tax imposed under subsection (b), at a rate of--
``(A) $5 per ton for a vessel that--
``(i) is owned or operated by a foreign
entity of concern;
``(ii) is a vessel registered under a
registry of a foreign country of concern;
``(iii) was a vessel registered under a
registry of a foreign country of concern at any
time during the 3 years preceding the date of
the determination of the application of
subsection (a) or (b); or
``(iv) is owned or operated by an entity,
with respect to which--
``(I) an amount equal to 50 percent
or greater 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 50
percent 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 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;
``(C) $1.25 per ton for a vessel that is owned or
operated by an entity with a fleet of vessels, of which
an amount equal to 50 percent or more of the number of
such vessels were constructed 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 subsection (b).
``(2) Highest applicable rate.--A vessel with respect to
which the descriptions in 2 or more subparagraphs in paragraph
(1) apply, shall be subject 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 meanings 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.''.
SEC. 203. PRESIDENTIAL SUSPENSION OF TONNAGE TAXES AND LIGHT MONEY.
Section 60304 of title 46, United States Code, is amended to read
as follows:
``Sec. 60304. Presidential suspension of tonnage taxes and light money
``(a) In General.--Except as provided in subsection (b), if the
President is satisfied that the government of a foreign country does
not impose discriminating or countervailing duties to the disadvantage
of the United States, the President may suspend the imposition of
special tonnage taxes and light money under sections 60302 and 60303 of
this title on vessels of that country.
``(b) Exception.--Subsection (a) shall not apply to any vessel
that--
``(1) is owned or operated by a foreign entity of concern
(as that term is defined in section 4 of the SHIPS for America
Act of 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 of the determination of the application of
subsection (a).''.
TITLE III--SEALIFT CAPABILITY
SEC. 301. SEALIFT CAPABILITY.
(a) In General.--Subtitle V of title 46, United States Code, is
amended by adding at the end the following:
``PART H--STRATEGIC SEALIFT
``Sec.
``59101. Objectives and policy.
``59102. Procurement, maintenance, and operation.
``59103. Sealift prioritization.
``59104. Report on privilege.
``Sec. 59101. Objectives and policy
``(a) Objectives.--It is necessary for the national defense and
economic security of the United States that the United States have
vessels of the United States capable of providing and supporting
strategic sealift--
``(1) sufficient to meet surge defense deployment and
essential economic activities for the United States in times of
crisis or war;
``(2) sufficient to respond unilaterally to national
security threats in geographic areas not covered by alliance
commitments and ensure economic security resilience for United
States trade; and
``(3) built, operated, and maintained during all times,
primarily in the United States to protect and ensure national
security resiliency and avoid foreign coercion of critical
supply chains.
``(b) Policy.--It is the policy of the United States to encourage
and aid the development and maintenance of vessels of the United States
with strategic sealift capabilities satisfying the objectives described
in subsection (a).
``(c) Strategy Required.--
``(1) In general.--The Maritime Security Board shall
annually develop a strategy to leverage the financial
assistance programs established under part C of this subtitle
to expand the number of vessels 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 include--
``(A) annual goals for the number of vessels that
will be brought into the fleet of vessels of the United
States capable of providing strategic sealift utilizing
the Maritime Security Fleet under chapter 531 of this
title, the Cable Security Fleet under chapter 532 of
this title, the Tanker Security Fleet under chapter 534
of this title, the Strategic Commercial Fleet under
chapter 536 of this title, and the Shipbuilding
Financial Incentives program, consistent with the most
recent Mobility Capability Requirements Study produced
by United States Transportation Command; and
``(B) an assessment of domestic shipbuilding
capacity and a strategy to increase the capacity of the
domestic shipbuilding industry utilizing the
Shipbuilding Financial Incentives program.
``(3) National maritime strategy.--The strategy developed
by the Maritime Security Board under paragraph (1) shall be
consistent with the National Maritime Strategy developed under
section 50114.
``(d) Report Required.--
``(1) In general.--Upon completion, the Maritime Security
Board shall transmit to the appropriate committees of Congress
a summary of the strategy developed under subsection (c), with
a classified annex as necessary.
``(2) Definition.--In this part, the term `appropriate
committees of Congress' has the meaning given that term in
section 4 of the SHIPS for America Act of 2025.
``Sec. 59102. Procurement, maintenance, and operation
``(a) Statement of Policy.--The Maritime Administrator, in
coordination with the Secretary of Defense and the Secretary of
Homeland Security, shall build, acquire, maintain, coordinate, support,
and operate a sufficient and privileged fleet of vessels of the United
States with commercial and military sealift capability.
``(b) Supplemental Capability.--In developing sealift capability
under this part, the Secretary of Transportation and the Secretary of
Defense shall continue to support a sufficient Maritime Security Fleet
under chapter 531 of this title, a Cable Security Fleet under chapter
532 of this title, a Tanker Security Fleet under chapter 534 of this
title, the Strategic Commercial Fleet under chapter 536 of this title,
a Military Sealift Command of the Department of the Navy, and a Ready
Reserve Force component of the National Defense Reserve Fleet under
section 57100 of this title, to provide capacity and resiliency for
unilateral United States strategic sealift in peace, crisis, and war.
``(c) Judicial Review.--No court shall have jurisdiction to review
decisions made by the Maritime Administrator, the Secretary of Defense,
or the Secretary of Homeland Security with respect to this section.
``Sec. 59103. Sealift prioritization
``(a) In General.--In acquiring, maintaining, coordinating, and
supporting a fleet of vessels capable of providing sealift capacity
during wartime and crisis, the Maritime Administrator, in coordination
with the Secretary of Defense, shall ensure the availability of
vessels, in the following order of priority:
``(1) Commercial vessels of the United States.
``(2) Vessels of the United States that are owned and
operated by the United States Government.
``(3) Vessels of countries that are defense treaty allies
of the United States.
``(4) Vessels of countries that are strategic partners of
the United States.
``(b) Judicial Review.--No court shall have jurisdiction to review
decisions made by the Maritime Administrator or the Secretary of
Defense with respect to this section.
``Sec. 59104. 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 Management and Budget, shall submit to the appropriate
committees of Congress a report including ways to ensure vessels of the
United States operating in foreign commerce are privileged in
regulation, taxation, fees, insurance, and policy compared to foreign
vessels conducting trade with a United States domiciled entity, while
remaining consistent with the international obligations of the United
States.
``(b) Contents.--In submitting the report under subsection (a), the
Secretary of Transportation shall include options for regulating trade
with foreign vessels in order to sustain and grow the Maritime Security
Fleet under chapter 531 of this title, the Cable Security Fleet under
chapter 532 of this title, the Tanker Security Fleet under chapter 534
of this title, the Strategic Commercial Fleet under chapter 536 of this
title, and other vessels of the United States operating in foreign
commerce.''.
(b) Clerical Amendment.--The table of chapters for subtitle V of
title 46, United States Code, is amended by adding at the end the
following:
``Part H--Strategic Sealift''.
SEC. 302. NATIONAL FREIGHT STRATEGIC PLAN.
Section 70102(b) of title 49, United States Code, is amended--
(1) in paragraph (16), by striking ``and'' after the
semicolon;
(2) in paragraph (17), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(18) consideration of United States strategic sealift
objectives and strategies established under section 59101 of
title 46; and
``(19) consideration of maritime networks in multimodal
freight corridors.''.
SEC. 303. FOREIGN SHIPPING PRACTICES; CONTROLLED CARRIERS.
(a) Foreign Shipping Practices.--Section 42301(b) of title 46,
United States Code, is amended--
(1) in paragraph (2), by inserting ``or passengers'' after
``transportation of cargo''; and
(2) in paragraph (5), by inserting ``or passengers'' after
``carriage of cargo''.
(b) Controlled Carriers.--Chapter 407 of title 46, United States
Code, is amended--
(1) in section 40701--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``or'' at
the end;
(ii) in paragraph (2), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(3) arrange or provide passenger transportation at a fare
that is below a just and reasonable level.'';
(B) in subsection (b), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'';
(C) in subsection (c), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare''; and
(D) in subsection (d), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'';
(2) in section 40702(b)--
(A) in the matter preceding paragraph (1), by
striking ``rule, or regulation'' and inserting ``rule,
regulation, or fare'';
(B) in paragraph (1), by striking ``rate or
charge'' and inserting ``rate, charge, or fare''; and
(C) in paragraph (2), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'';
(3) in section 40703, by striking ``a rate, charge,'' and
inserting ``a rate, fare, charge,''; and
(4) in section 40704--
(A) in subsection (a), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'';
(B) in subsection (b), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'';
(C) in subsection (c), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'' each place the term appears;
(D) in subsection (d)--
(i) in paragraph (1), by striking ``rule,
or regulation'' and inserting ``rule,
regulation, or fare'' each place the term
appears; and
(ii) in paragraph (2), by striking ``rule,
or regulation'' and inserting ``rule,
regulation, or fare'' each place the term
appears; and
(E) in subsection (e), by striking ``rule, or
regulation'' and inserting ``rule, regulation, or
fare'' each place the term appears.
TITLE IV--VESSELS OF THE UNITED STATES IN INTERNATIONAL COMMERCE
Subtitle A--Strategic Sealift Programs
SEC. 401. STRATEGIC COMMERCIAL FLEET.
(a) In General.--Part C of subtitle V of title 46, United States
Code, is amended by inserting after chapter 535 the following:
``CHAPTER 536--STRATEGIC COMMERCIAL FLEET
``Sec.
``53601. Definitions.
``53602. Establishment of Strategic Commercial Fleet.
``53603. Operating agreements.
``53604. Payments.
``53605. National security requirements.
``53606. Regulations.
``Sec. 53601. Definitions
``In this chapter:
``(1) Administrator.--The term `Administrator' means the
Maritime Administrator.
``(2) Appropriate committees of congress.--The term
`appropriate committees of Congress' means--
``(A) the Committee on Armed Services, the
Committee on Commerce, Science, and Transportation, and
the Committee on Appropriations of the Senate; and
``(B) the Committee on Armed Services, the
Committee on Transportation and Infrastructure, and the
Committee on Appropriations of the House of
Representatives.
``(3) Coastwise trade.--The term `coastwise trade' means
commerce or trade that is subject to the requirements of
section 55102.
``(4) Covered entity.--The term `covered entity' means--
``(A) any owner or operator of a vessel eligible
under section 53602(d); or
``(B) a bid team consisting of--
``(i) an entity eligible under subparagraph
(A);
``(ii) a shipyard in the United States with
the ability, experience, financial resources,
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.
``(5) Fleet.--The term `Fleet' means the Strategic
Commercial Fleet established under section 53602.
``(6) Foreign commerce.--The term `foreign commerce'
means--
``(A) commerce or trade between the United States,
its territories or possessions, or the District of
Columbia, and a foreign country; and
``(B) commerce or trade between foreign countries.
``(7) Foreign country of concern; foreign entity of
concern.--The terms `foreign country of concern' and `foreign
entity of concern' have the meanings given such terms in
section 4 of the Shipbuilding 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
``(iii) was constructed (or reconstructed)
outside the United States; and
``(B) does not include a vessel that--
``(i) was owned or operated by a foreign
entity of concern;
``(ii) is a vessel of a foreign country of
concern;
``(iii) was constructed by a shipyard that
was owned or operated by a foreign entity of
concern or located in a foreign country of
concern; or
``(iv) was registered as a vessel of a
foreign country of concern at any time during
the 3 years prior to entry into the Fleet.
``(9) United states built vessel.--The term `United States
built vessel' means a vessel that is constructed in the United
States (and, if reconstructed, reconstructed in the United
States).
``(10) United states citizen trust.--The term `United
States citizen trust' has the meaning given such term in
section 53201.
``Sec. 53602. Establishment of Strategic Commercial Fleet
``(a) In General.--The Administrator, in consultation with the
Secretary of Defense, shall establish a fleet, to be known as the
`Strategic Commercial Fleet', of active, commercially viable,
militarily useful, privately owned vessels to meet national defense and
other security requirements and maintain a United States presence in
international commercial shipping.
``(b) Number of Vessels.--The Administrator shall seek to select
eligible vessels described in subsection (d) for the Fleet through an
annual competitive selection process in accordance with the annual
target number for the Fleet recommended by the Maritime Security Board
under section 50401(b)(2)(B)(i). Through such annual selection process,
the Administrator shall--
``(1) select for inclusion in the Fleet not fewer than 10
vessels in the 12-month period that begins on the date that is
2 years after the date of enactment of this section;
``(2) increase the number of vessels selected for inclusion
in the Fleet annually such that not later than 5 years after
such date of enactment, not fewer than 20 vessels are selected
for such inclusion annually; and
``(3) ensure that the total number of vessels included in
the fleet shall be not more than 250 vessels at any point in
time.
``(c) Solicitation; Entry Into Fleet.--
``(1) Solicitation.--
``(A) In general.--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 requirements.--In
soliciting applications under subparagraph (A), the
Administrator--
``(i) shall--
``(I) publish a notice in the
Federal Register, which, at a minimum,
identifies the requirements for the
number of vessels as established by the
Administrator and the Maritime Security
Board under subsection (b); and
``(II) allow applicants not less
than 30 days to submit an application
for entry into the Fleet; and
``(ii) may, in coordination with the
Maritime Security Board, include in the notice
in the Federal Register--
``(I) target numbers for each
vessel type that will be selected for
inclusion in the Fleet each year; and
``(II) guidance on proposed annual
operating support payments and annual
capital support payments for each
vessel type solicited, to ensure--
``(aa) covered entities
submit applications that are
priced competitively and meet
the needs of the Fleet; and
``(bb) there is a
competitive selection process
as described in this section.
``(2) Eligible applications.--The Administrator shall
solicit and accept applications in separate processes for each
of the following:
``(A) Newly constructed vessels.--
``(i) In general.--A covered entity may
submit an application for the Fleet that
involves the construction of a United States
built vessel and operation of such vessel as a
vessel of the United States in foreign
commerce.
``(ii) Interim vessel.--An application
described in clause (i) from a covered entity
may include a proposal for the use of an
interim vessel, if such proposal provides
that--
``(I) the covered entity will
operate a qualified foreign-built
vessel as a vessel of the United States
in foreign commerce as part of the
Fleet until the United States built
vessel described in such clause enters
the Fleet, in accordance with the
milestones established within the
operating agreement under section
53603(c)(1);
``(II) when the United States built
vessel enters the Fleet or the covered
entity fails to meet milestones
established in the operating agreement,
the qualified foreign-built vessel
shall be removed from the Fleet; and
``(III) the covered entity may then
transfer and register the qualified
foreign-built vessel under a registry
of any foreign country that is not a
foreign country of concern.
``(B) Qualified foreign-built vessels.--
``(i) In general.--Through fiscal year
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
Secretary of Defense, in consultation
with the Maritime Security Board,
jointly certify to the appropriate
committees of Congress that adding
additional qualified foreign-built
vessels to the Fleet is necessary for
the national security of the United
States until replaced by a newly
constructed vessel to meet the schedule
under subsection (b).
``(3) Procedure.--
``(A) In general.--A covered entity desiring to
have a vessel selected for the Fleet shall submit an
eligible application under paragraph (2) as at such
time, in such manner, and containing such information
as the Administrator may require. Such application
shall include--
``(i) a proposed annual operating support
payment, which may cover the difference in
operating costs (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 operating that type of vessel under
the laws of a foreign country;
``(ii) in the case of an application
described in paragraph (2)(A), a proposed
annual capital support payment, which may cover
the difference in capital costs associated with
constructing the vessel in the United States as
compared to a fair and reasonable estimate of
the cost of constructing that type of vessel in
a foreign shipyard; and
``(iii) any other support payments needed
to make a vessel commercially viable in foreign
commerce.
``(B) Bid team.--In the case of an eligible entity
that is a bid team described in section 53601(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 acceptance in the Fleet.
``(B) Citizenship preference.--In selecting
applications to meet the requirements of this section,
the Administrator shall ensure, to the extent
sufficient qualified applications are received under
this subsection, that not less than 25 percent of
vessels selected for the Fleet shall be owned or
operated by a covered entity that is, or a bid team led
by, a citizen of the United States under section 50501.
``(C) Priority.--In evaluating eligible
applications for selection in the Fleet and subject to
subparagraph (B), the Administrator shall give priority
to--
``(i) applications that represent the best
value to the Federal Government; and
``(ii) applications for vessels, or for
vessels providing services, that are determined
by the Maritime Security Board to have
capabilities critical to the national and
economic security of the United States.
``(D) Relationship to the tanker security fleet.--
If the most recent Mobility Capability Requirements
Study produced by United States Transportation Command
identifies a need for a fleet of tanker vessels that
are vessels of the United States that exceeds the size
of the Tanker Security Fleet established under chapter
534 of this title, the Administrator, in coordination
with the Maritime Security Board, may select for
inclusion in the Fleet a number of tanker vessels that
is consistent with the requirements of the Study.
``(E) Considerations for review.--In evaluating
eligible applications submitted under this subsection
for selection in the Fleet, the Administrator shall--
``(i) determine that any vessel so selected
will be suitable for use by the United States
for national defense or military purposes in
time of war or national emergency;
``(ii) determine that any vessel so
selected will aid in the promotion and
development of foreign commerce;
``(iii) determine that--
``(I) the proposed use of the
vessel in commercial service is
reasonable; and
``(II) the owner or operator of the
vessel possesses the ability,
experience, financial resources, and
other qualifications necessary for the
operation and maintenance of the
vessel;
``(iv) determine that a shipyard selected
to construct a vessel under this section
possesses the ability, experience, financial
resources, equipment, and other qualifications
necessary to properly construct the vessel;
``(v) 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 entity
commits to--
``(I) use equipment, materials, and
supplies that are produced in the
United States; and
``(II) utilize, to the maximum
extent practicable, subcontractors and
suppliers that are based in the United
States;
``(vii) consider whether the covered entity
commits to repair, repower, and recondition a
vessel under this section in a shipyard 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 employment
opportunity for economically
disadvantaged individuals; or
``(II) securing commitments from
regional educational and training
entities and institutions of higher
education, as defined in section 102 of
the Higher Education Act of 1965 (20
U.S.C. 1002), to provide workforce
training, including programming for
training and job placement of
economically disadvantaged individuals.
``(5) Timing.--
``(A) Qualified foreign vessel.--Not later than 180
days after entering into an operating agreement under
section 53603 with a covered entity for inclusion of a
qualified foreign-built vessel into the Fleet, such
vessel shall be placed into service as part of the
Fleet.
``(B) Newly constructed vessel.--Not later than 36
months after entering into an operating agreement under
section 53603 with a covered entity for inclusion of a
newly constructed United States built vessel described
in paragraph (2)(A), such vessel shall be placed into
service as part of the Fleet.
``(C) Delayed admission.--The Administrator may
delay the entry of a vessel selected to participate in
the Fleet for--
``(i) a delay in the construction of such
vessel; or
``(ii) difficulty of the owner or operator
of such vessel in recruiting United States
mariners as required under section
53603(b)(1)(A).
``(d) Vessel Eligibility.--A vessel is eligible to be included in
the Fleet if--
``(1) the vessel--
``(A) is a vessel of the United States; or
``(B) is not a vessel of the United States, but--
``(i) the owner of the vessel has
demonstrated an intent to have the vessel
documented under chapter 121 of this title if
it is included in the Fleet; and
``(ii) by the time an operating agreement
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 consultation with
the Maritime Security Board;
``(4) the vessel is operated (or will be operated) in
providing transportation in foreign commerce;
``(5) the vessel meets the requirements of paragraph (1),
(2), (3), or (4) of subsection (e);
``(6) the vessel--
``(A) is suitable for use by the United States for
national defense or military purposes in time of war or
national emergency, as determined by the Secretary of
Defense;
``(B) is commercially viable, as determined by the
Administrator; and
``(C) has dedicated space for the training of--
``(i) cadets of the Merchant Marine Academy
consistent with the requirements of section
51307(b);
``(ii) students of a State maritime
academy, consistent with the requirements of
section 51507; or
``(iii) participants in another workforce
training program identified by the
Administrator; and
``(7) the vessel will, for the period of an operating
agreement under section 53603 that applies to the vessel, meet
any other requirement determined appropriate by the
Administrator.
``(e) Requirements Regarding Citizenship of Owners, Charterers, and
Operators.--
``(1) Vessel owned and operated by section 50501
citizens.--A vessel meets the requirements of this paragraph
if, during the period of an operating agreement under this
chapter that applies to the vessel, the vessel will be owned
and operated by 1 or more persons that are citizens of the
United States under section 50501.
``(2) Vessel owned by section 50501 citizen or united
states citizen trust and chartered to documentation citizen.--A
vessel meets the requirements of this paragraph if--
``(A) during the period of an operating agreement
under this chapter that applies to the vessel, the
vessel will be--
``(i) owned by a person that is a citizen
of the United States under section 50501 of
this title or that is a United States citizen
trust; and
``(ii) demise chartered to a person--
``(I) that is eligible to document
the vessel under chapter 121 of this
title;
``(II) the chairman of the board of
directors, chief executive officer, and
a majority of the members of the board
of directors of which are citizens of
the United States under section 50501
of this title, and are appointed and
subjected to removal only upon approval
by the Administrator; and
``(III) that certifies to the
Administrator that there are no
treaties, statutes, regulations, or
other laws that would prohibit the
covered entity for the vessel from
performing its obligations under an
operating agreement under this chapter;
``(B) in the case of a vessel that will be demise
chartered to a person that is owned or controlled by
another person that is not a citizen of the United
States under section 50501 of this title, the other
person enters into an agreement with the Administrator
not to influence the operation of the vessel in a
manner that will adversely affect the interests of the
United States; and
``(C) the Administrator and the Secretary of
Defense notify the appropriate committees of Congress
that they concur with the certification required under
subparagraph (A)(ii)(III) and have reviewed and agree
that there are no other legal, operational, or other
impediments that would prohibit the covered entity for
the vessel from performing its obligations under an
operating agreement under this chapter.
``(3) Vessel owned and operated by defense contractor.--A
vessel meets the requirements of this paragraph if--
``(A) during the period of an operating agreement
under this chapter that applies to the vessel, the
vessel will be owned and operated by a person that--
``(i) is eligible to document a vessel
under chapter 121 of this title;
``(ii) operates or manages other United
States-documented vessels for the Secretary of
Defense, or charters other vessels to the
Secretary of Defense;
``(iii) has entered into a special security
agreement for purposes of this paragraph with
the Secretary of Defense;
``(iv) makes the certification described in
paragraph (2)(A)(ii)(III); and
``(v) in the case of a vessel described in
paragraph (2)(B), enters into an agreement
referred to in that paragraph; and
``(B) the Administrator and the Secretary of
Defense notify the appropriate committees of Congress
that they concur with the certification required under
subparagraph (A)(iv), and have reviewed and agree that
there are no other legal, operational, or other
impediments that would prohibit the covered entity for
the vessel from performing its obligations under an
operating agreement under this chapter.
``(4) Vessel owned by documentation citizen and chartered
to section 50501 citizen.--A vessel meets the requirements of
this paragraph if, during the period of an operating agreement
under this chapter that applies to the vessel, the vessel will
be--
``(A) owned by a person that is eligible to
document a vessel under chapter 121; and
``(B) demise chartered to a person that is a
citizen of the United States under section 50501.
``Sec. 53603. Operating agreements
``(a) In General.--The Administrator shall require, as a condition
of including any vessel in the Fleet, that the covered entity for the
vessel enter into an operating agreement under this section.
``(b) Requirements.--
``(1) General requirements.--An operating agreement
required under subsection (a) shall require the vessel subject
to such agreement to meet the following requirements:
``(A) During the period in which the vessel is
operating under the agreement--
``(i) the vessel will be crewed in
accordance with section 8103 of title 46,
United States Code;
``(ii) the vessel shall be operated within
the Fleet exclusively in foreign commerce and
not in coastwise trade;
``(iii) the covered entity will have in
effect an emergency preparedness agreement
described in section 53605 for the period of
such agreement; and
``(B) Beginning on the first day of the operating
agreement, the vessel will be permanently ineligible
for a coastwise endorsement under section 12112 of this
title or to otherwise participate in the coastwise
trade, even if the operating agreement is terminated or
not renewed.
``(2) Vessel repair requirements.--
``(A) In general.--Subject to subparagraphs (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 (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))) 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 vessels.--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).
``(C) Authority of the secretary of
transportation.--Notwithstanding any other provision of
law, the Secretary of Transportation may modify or
waive any requirement of subparagraph (A) only if the
Secretary, in consultation with the Maritime Security
Board--
``(i) determines that waiving such
requirements are in the national security
interest of the United States; and
``(ii) makes such a determination publicly
available in writing and submits the
determination to the appropriate committees of
Congress (as defined in section 4 of the
Shipbuilding and Harbor Infrastructure for
Prosperity and Security for America Act of
2025).
``(3) Coordination with coast guard regarding coastwise
trade prohibition.--The Administrator shall coordinate with the
Secretary of the Department in which the Coast Guard is
operating to ensure that any vessel that is, or was, covered by
an operating agreement under this chapter is permanently
ineligible for a coastwise endorsement under section 12112 of
this title or to otherwise participate in the coastwise trade,
as required under paragraph (1)(B).
``(c) Milestones and Payments.--The operating agreement shall--
``(1) prescribe specific milestones for project completion,
as agreed upon between the Administrator and the covered
entity; and
``(2) specify the schedule of operating support payments,
and as applicable, capital support payments and other
incentives and payments, based on completion of such milestones
and consistent with the eligible application submitted by the
covered entity under section 53602(c)(3)(A), as agreed to by
the Administrator and the covered entity.
``(d) Incentives.--
``(1) State of the art technology incentives.--An operating
agreement required under subsection (a) may include incentives
to support the testing or adoption of state of the art
technology, including artificial intelligence, advanced
shipbuilding techniques, automation, modern propulsion systems,
environmental performance, crew safety, national defense
features, and other technologies identified by the Maritime
Security Board to be relevant in advancing the military and
economic security of the United States.
``(2) Performance incentives.--The operating agreement may
include incentive payments for eligible entities that exceed
the milestones established under subsection (c)(1).
``(e) 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 operating agreement
under this section may apply to renew such operating
agreement.
``(B) Renewal limitation.--An operating agreement
under this section may be renewed not more than 2
times.
``(3) Termination payment.--
``(A) No-fault termination during contract.--
Subject to subparagraph (B), a covered entity for a
vessel operating under an operating agreement under
this section shall receive a termination payment if any
of the following applies:
``(i) No-fault termination.--Capital
support payments provided to a covered entity
under an operating agreement are terminated
during a contract term.
``(ii) No-fault non-renewal.--An operating
agreement is not selected to be renewed under
paragraph (2).
``(B) Administrator determination for material lack
of compliance.--In any case in which the Administrator
determines under subsection (f) that a covered entity
for a vessel operating under an operating agreement
under this section materially fails to comply with the
terms of the operating agreement and, due to such
failure to comply, the operating agreement is
terminated or not selected for renewal, the
Administrator may determine that the covered entity is
not entitled to a termination payment and subparagraph
(A) shall not apply.
``(C) Termination payment defined.--In this
paragraph, the term `termination payment' means a
payment in an amount that equals the product of--
``(i) the percentage of the remaining
useful life of the vessel, calculated using 21
years as the maximum useful life of the vessel;
multiplied by
``(ii) the difference in the cost of
constructing the vessel in the United States
and the cost of constructing the vessel in a
foreign country, to the extent such cost
difference was not recovered by the covered
entity through payments received under any
operating agreement under this section.
``(f) Termination by Administrator for Lack of Program Participant
Compliance.--If a covered entity for a vessel operating under an
operating agreement under this section materially fails to comply with
the terms of the operating agreement--
``(1) the Administrator shall notify the covered entity and
provide a reasonable opportunity to comply with the operating
agreement; and
``(2) if the covered entity fails to achieve such
compliance, the Administrator--
``(A) shall terminate the operating agreement;
``(B) shall not renew the operating agreement under
subsection (e)(2); and
``(C) may take steps to recover an amount equal to
the payments and incentives provided to the covered
entity under this chapter.
``(g) Nonrenewal for Lack of Funds.--If, by the first day of a
fiscal year, sufficient funds have not been appropriated under the
authority provided by this chapter for that fiscal year, then the
Administrator shall notify the appropriate committees of Congress that
operating agreements authorized under this chapter for which sufficient
funds are not available will not be renewed for that fiscal year if
sufficient funds are not appropriated by the 60th day of that fiscal
year.
``(h) Release of Vessels From Obligations.--
``(1) In general.--A vessel covered by an operating
agreement under this chapter is released from any further
obligation under the operating agreement, except for the
requirements of paragraph (2), if--
``(A) the Administrator terminated or did not renew
the operating agreement under subsection (f);
``(B) the covered entity elects to not renew its
operating agreement with the Administrator;
``(C) the vessel is ineligible for renewal under
subsection (e)(2); or
``(D) funds are not appropriated to the
Administrator for payments under the operating
agreement under this chapter for any fiscal year by the
60th day of that fiscal year.
``(2) Coastwise trade.--Consistent with the requirements of
subsection (b)(1)(B), a vessel released from obligations under
paragraph (1) shall remain permanently ineligible for a
coastwise endorsement under section 12112 of this title or to
otherwise participate in the coastwise trade.
``(3) Authority to transfer vessel.--
``(A) In general.--After a vessel is released from
obligations under paragraph (1), the covered entity may
transfer and register such vessel under a foreign
registry that--
``(i) is acceptable to the Administrator
and the Secretary of Defense, and allows the
requisitioning of the vessel for title or use,
notwithstanding section 56101 of this title;
and
``(ii) is not a foreign country of concern.
``(B) Emergency acquisition of vessels.--If chapter
563 of this title is applicable to a vessel after
registration in a foreign registry described in
subparagraph (A), then the vessel is available to be
requisitioned by the Secretary of Transportation
pursuant to such chapter.
``(i) Judicial Review.--No court shall have jurisdiction to review
the Administrator's decision with respect to the award or non-award of
an operating agreement issued under this chapter.
``Sec. 53604. Payments
``(a) In General.--An operating agreement under this chapter shall
require that the Administrator make payments to the covered entity, in
accordance with the milestones established under section 53603(c)(1)
and the operating agreement under section 53603 and subject to the
availability of appropriations under subsection (e).
``(b) Limitations.--Notwithstanding any other provision of this
chapter, the Administrator shall not make any payment under this
chapter for a vessel--
``(1) with respect to any day for which--
``(A) the vessel is not operated or maintained in
accordance with an operating agreement under this
chapter;
``(B) the vessel is under a charter to the United
States Government; or
``(C) except as provided under subsection (c), the
vessel is engaged in transporting military or other
preference cargoes under section 55302(a), 55304,
55305, or 55314 of this title, section 2631 of title
10, or any other cargo preference law of the United
States; or
``(2) that participates in the coastwise trade in violation
of the operating agreement and section 53603(b)(1)(B).
``(c) Preference Cargos.--
``(1) In general.--The Secretary of Transportation 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
Administrator's capacity as Director of the National
Shipping Authority--
``(i) determines the non-availability of
qualified vessels of the United States that are
not enrolled in the Strategic Commercial Fleet;
and
``(ii) notifies the Secretary of such
determination;
``(B) the Secretary ensures reasonable notice has
been provided to the owners and operators of qualified
vessels of the United States that are not enrolled in
the Strategic Commercial Fleet prior to making the
waiver determination; 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 authority provided under
paragraph (1).
``(d) Operating Agreement Is Obligation of United States
Government.--An operating agreement under this chapter constitutes a
contractual obligation of the United States Government to pay the
amounts provided for in the agreement, subject to the availability of
appropriations under subsection (e).
``(e) Appropriations From the Maritime Security Trust Fund.--
``(1) In general.--There is authorized to be appropriated
to the Administrator for payments to covered entities under
this section, out of the Maritime Security Trust Fund
established under section 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 expended.
``(f) Clarification.--The provision by the Administrator of a
payment under this section shall not be considered to be a major
Federal action under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) or an undertaking for the purposes of division A
of subtitle III of title 54, United States Code.
``(g) Buy America.--Section 54101(d)(2) shall apply to any funds
obligated by the Administrator under this section that are used to
construct or repair a United States-built vessel.
``Sec. 53605. National security requirements
``(a) Emergency Preparedness Agreement Required.--The
Administrator, in coordination with the Secretary of Defense, shall
establish an emergency preparedness program under this section under
which the program participant for an operating agreement under this
chapter shall agree, as a condition of the operating agreement, to
enter into an emergency preparedness agreement with the Administrator.
The Administrator shall negotiate and enter into an emergency
preparedness agreement with each program participant as promptly as
practicable after the program participant has entered into the
operating agreement.
``(b) Use of Existing Program.--The Administrator may use an
existing emergency preparedness program, as of the date of enactment of
the Shipbuilding and Harbor Infrastructure for Prosperity and Security
for America Act of 2025, to satisfy the requirements of subsection (a).
``(c) Terms of Agreement.--The terms of an emergency preparedness
agreement under this section shall--
``(1) provide that upon request by the Secretary of Defense
during time of war or national emergency, or whenever
determined by the Secretary of Defense to be necessary for
national security or contingency operation (as that term is
defined in section 101(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 Secretary of Defense;
and
``(3) shall allow for the modification or addition of terms
upon agreement by the Administrator and the program participant
and the approval by the Secretary of Defense.
``(d) Participation After Expiration of Operating Agreement.--The
Administrator may not require, through an emergency preparedness
agreement or an operating agreement, that a program participant covered
by an operating agreement continue to participate in an emergency
preparedness agreement after the operating agreement has expired
according to its terms or is otherwise no longer in effect. After the
expiration of an emergency preparedness agreement, a program
participant may voluntarily continue to participate in the agreement.
``(e) Resources Made Available.--The commercial transportation
resources to be made available under an emergency preparedness
agreement shall include vessels or capacity in vessels, terminal
facilities, management services, and other related services, or any
agreed portion of such nonvessel resources for activation as the
Secretary of Defense may determine to be necessary, seeking to minimize
disruption of the program participant's service to commercial
customers.
``(f) Compensation.--
``(1) In general.--The Administrator shall include in each
emergency preparedness agreement provisions approved by the
Secretary of Defense under which the Secretary of Defense shall
pay fair and reasonable compensation for all commercial
transportation resources provided pursuant to this section.
``(2) Specific requirements.--Compensation under this
subsection--
``(A) shall not be less than the program
participant's commercial market charges for like
transportation resources;
``(B) shall be fair and reasonable considering all
circumstances;
``(C) shall be provided from the time that a vessel
or resource is required by the Secretary of Defense
until the time it is redelivered to the program
participant and is available to reenter commercial
service; and
``(D) shall be in addition to and shall not in any
way reflect amounts payable under section 53604 of this
title.
``(g) Temporary Replacement Vessels.--Notwithstanding section
55302(a), 55304, 55305, or 55314 of this title, section 2631 of title
10, or any other cargo preference law of the United States--
``(1) a program participant may operate or employ in
foreign commerce a foreign vessel, or capacity in a foreign
vessel, as a temporary replacement for a vessel of the United
States or vessel of the United States capacity that is
activated by the Secretary of Defense under an emergency
preparedness agreement or a primary Department of Defense
sealift-approved readiness program; and
``(2) such replacement vessel or vessel capacity shall be
eligible during the replacement period to transport preference
cargoes subject to sections 55302(a), 55304, 55305, and 55314
of this title and section 2631 of title 10, to the same extent
as the eligibility of the vessel or vessel capacity replaced.
``(h) Redelivery and Liability of the United States for Damages.--
``(1) In general.--All commercial transportation resources
activated under an emergency preparedness agreement shall, upon
termination of the period of activation, be redelivered to the
program participant in the same good order and condition as
when received, less ordinary wear and tear, or the Secretary of
Defense shall fully compensate the program participant for any
necessary repair or replacement.
``(2) Limitation on united states liability.--Except as may
be expressly agreed in an emergency preparedness agreement, or
as otherwise provided by law, the Government shall not be
liable for disruption of a program participant's commercial
business or other consequential damages to the program
participant arising from the activation of commercial
transportation resources under an emergency preparedness
agreement.
``Sec. 53606. Regulations
``The Administrator and the Secretary of Defense may each prescribe
rules as necessary to carry out their respective responsibilities under
this chapter.''.
(b) 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 following:
``536. Strategic Commercial Fleet........................... 53601''.
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 exercise 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 results of such drill.
SEC. 403. ASSESSMENT OF UNDERSEA CABLE REPAIR CONTINGENCIES.
(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 Federal Communications Commission, and
other relevant Federal agencies, shall submit to the appropriate
committees of Congress an assessment on the ability and preparedness of
the USNS Zeus and the Cable Security Fleet under chapter 532 of title
46, United States Code, to repair transoceanic submarine fiber optic
cables that may be damaged or cut by adversaries.
(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.
SEC. 404. MODIFICATION TO DUTIES RELATING TO EQUIPMENT AND REPAIR OF
VESSELS.
(a) In General.--Section 466 of the Tariff Act of 1930 (19 U.S.C.
1466) is amended--
(1) in subsection (a), in the first sentence, by striking
``50 per centum on the cost thereof in such foreign country''
and inserting ``70 percent of the cost thereof in such foreign
country or, in the case of a foreign country of concern (as
defined in section 4 of the 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 beginning on the date
of enactment of the Shipbuilding and Harbor Infrastructure for
Prosperity and Security for America Act of 2025 and ending on
December 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 materials to be used for, or repairs made in
a foreign 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 otherwise entered into a
voluntary agreement and plan of action with the
Maritime Administrator as authorized under
section 708(c) of the Defense Production Act of
1950 (50 U.S.C. 4558(c)); and
``(B) the owner or master of the vessel certifies
to the Maritime Administrator in writing that a good
faith effort was made to purchase equipment or carry
out repairs in a shipyard in the United States.
``(2) Inapplicability to foreign countries of concern.--
Duty-free treatment under paragraph (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
defined in section 4 of the Shipbuilding and Harbor
Infrastructure for Prosperity and Security for America 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 repairs.''.
(b) Report Required.--Not less than 2 years after the date of
enactment of this Act, and every 2 years thereafter through December
31, 2035, the Maritime Administrator shall submit to the appropriate
committees of Congress a report--
(1) describing the number of vessels that paid the duties
under section 466 of the Tariff Act of 1930 (19 U.S.C. 1466),
and the location where the repairs described in such section
occurred;
(2)(A) identifying shipyards of the United States that have
capacity to carry out vessel repairs; and
(B) describing the extent to which vessels of the United
States chose to conduct repairs in such shipyards during the
period covered by the report;
(3) evaluating the effectiveness of section 466 of the
Tariff Act of 1930 (19 U.S.C. 1466) in encouraging the repair
of vessels of the United States in shipyards of the United
States; and
(4) making recommendations for additional regulatory or
legislative steps which could be taken to support the United
States vessel repair industrial base.
(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 Congress that--
(1) only the Maritime Administrator, acting in the
Administrator's capacity as Director of the National Shipping
Authority, has the authority to determine the non-availability
of qualified capacity of vessels of the United States (referred
to in this subsection as ``qualified United States flag
capacity'') at fair and reasonable rates for commercial vessels
of the United States to meet the requirements of section 55305
or 55314 of title 46, United States Code;
(2) the requirements of section 55305 or 55314 of title 46,
United States Code, may only be waived temporarily by the
President, the Secretary of Defense, or the Secretary of
Transportation during a declared emergency justifying such a
temporary waiver, following a determination by the Maritime
Administrator, acting in the Maritime Administrator's capacity
as Director of the National Shipping Authority, of the non-
availability of qualified United States flag capacity at fair
and reasonable rates for commercial vessels of the United
States pursuant to section 55305(d) of title 46, United States
Code; and
(3) nothing in title II of the Food for Peace Act (7 U.S.C.
1721 et seq.) authorizes an agency to waive the requirements of
section 55305 or 55314 of title 46, United States Code, without
first obtaining--
(A) delegated authority from the President of the
United States;
(B) an emergency declaration justifying such a
temporary waiver, pursuant to section 55305(d) of title
46, United States Code; and
(C) a determination by the Maritime Administrator,
acting in the Maritime Administrator's capacity as
Director of the National Shipping Authority, on the
non-availability of qualified United States flag
capacity at fair and reasonable rates for commercial
vessels of the United States pursuant to section
55305(d) of title 46, United States Code.
(b) Applicable Percentage.--
(1) In general.--Section 55305(a) of title 46, United
States Code, is amended by striking ``at least 50'' and
inserting ``100''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 180 days after the date
of enactment of this Act.
(c) 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 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 President, the Secretary of Defense, or the
Secretary of Transportation, following a determination
by the Maritime Administrator, acting in the
Administrator'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
extent, in the manner, and on the terms the Maritime
Administrator, acting in such capacity, prescribes, and
no other waivers of the requirements 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 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 process
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 commodities
subject to subsection (a); and
``(bb) for when the
Maritime Administrator shall
make such a determination of
non-availability after
receiving a request for a
temporary waiver under
subparagraph (A).
``(iii) Congressional notification.--The
Maritime Security Advisor shall notify the
appropriate committees of Congress--
``(I) when each interagency
agreement required under this
subparagraph is finalized; and
``(II) any time that an interagency
agreement required under this
subparagraph is updated.''.
(d) Clarification.--Section 55305(d)(3)(B) of title 46, United
States Code, is amended by inserting ``Maritime Security Board and
the'' after ``to the''.
SEC. 412. CARGO PREFERENCE IMPLEMENTATION REGULATIONS.
(a) Regulations and Guidance.--Not later than 180 days after the
date of enactment of this Act, the Maritime Administrator,
notwithstanding any other provision of law, regulation, or
administrative order, shall--
(1) promulgate regulations under subchapter III of chapter
5 of title 5, United States Code, to fully implement and ensure
compliance with sections 55305, 55314, 55315, and 55316 of
title 46, United States Code;
(2) issue interagency guidance to other Federal departments
and agencies on how to administer the programs that are subject
to such sections in accordance with those sections, as
applicable; and
(3) publish such guidance in the Federal Register and on
the website of the Maritime Administration.
(b) Consultation.--The Administrator may consult with the Food Aid
Consultative Group established by section 205 of the Food for Peace Act
(7 U.S.C. 1725) in carrying out this section.
(c) Repeal of Earlier Regulatory Deadline.--Subsection (a) of
section 3502 of the James M. Inhofe National Defense Authorization Act
for Fiscal Year 2023 (46 U.S.C. 55305 note; Public Law 117-263), is
repealed.
SEC. 413. CARGO PREFERENCE OVERSIGHT AND AUDIT.
Section 55301 of title 46, United States Code, is amended--
(1) in subsection (a)(2), by striking ``section 55305'' and
inserting ``sections 55305, 55314, 55315, and 55316''; and
(2) by adding at the end the following:
``(d) Notification of Violation.--The Maritime Administrator
shall--
``(1) upon receiving any credible information, as
determined by the Administrator, that a Federal department or
agency that administers a program covered by a report required
under subsection (a) was not in compliance with the
requirements of section 55305, 55314, 55315, or 55316 of this
title (as applicable), notify the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives not later than 14 days after receiving such
information; and
``(2) upon receiving any credible information, as
determined by the Administrator, that a Federal department or
agency that administers a program covered by a report required
under subsection (a) was not in compliance with the
requirements of section 2631 of title 10, United States Code,
notify the Committee on Commerce, Science, and Transportation
and the Committee on Armed Services of the Senate and the
Committee on Transportation and Infrastructure and the
Committee on Armed Services of the House of Representatives not
later than 14 days after receiving such information.''.
SEC. 414. FINANCING THE TRANSPORTATION OF AGRICULTURAL PRODUCTS 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:
``Sec. 55316. Financing the transportation of agricultural products and
other cargo
``(a) Financing of Increased Costs.--The Secretary of
Transportation shall finance any reasonable increased 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 Transportation 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 section 55305 of this
title, including pursuant to the application of such
section to the activities specified in section 55314(b)
of this title; exceeds; and
``(B) 20 percent of the total value of the cargo,
including agricultural products, transported under such
section 55305, including pursuant 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, agricultural products shipped from
the inventory of the Corporation shall be valued as provided in
section 412(d) of the Food for Peace Act (7 U.S.C. 1736f(d)).
``(c) Interagency Agreement.--
``(1) In general.--Not later than 180 days after the date
of enactment of the SHIPS for America Act of 2025, the
Secretary of Transportation shall enter into an interagency
agreement with the 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 calculating the
reimbursement an agency is entitled to under this
section; and
``(C) deadlines--
``(i) by which an agency shall submit a
reimbursement request in order to receive
reimbursement; and
``(ii) by which the Secretary of
Transportation shall approve a properly filed
reimbursement request, which date shall not be
more than 90 days after the date on which the
reimbursement request is submitted.
``(3) Congressional notification.--The Secretary of
Transportation shall notify the appropriate committees of
Congress--
``(A) when each interagency agreement required
under this subsection is finalized; and
``(B) any time that an interagency agreement
required under this subsection is updated.
``(d) Agricultural Product Defined.--In this section, the term
`agricultural product' has the meaning given the term in section 55314
of title 46, United States Code.
``(e) Audit Required.--
``(1) In general.--For each fiscal year, the Inspector
General of the Department of Transportation shall conduct an
audit of all reimbursements made by the Secretary of
Transportation under this section during such fiscal year to
ensure all such reimbursements were made in accordance with the
requirements of this section.
``(2) Documents required.--Each agency entitled 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 implementation 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 Inspector 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 appropriate 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 expenses.
``(g) Definition of Covered Agency.--For purposes 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 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 following:
``Sec. 60508. Importation on American ships
``(a) In General.--Notwithstanding any other provision of law, not
less than the covered percentage, as described in subsection (b), of
covered goods by tonnage imported into the United States from a foreign
port shall be imported on a vessel that is--
``(1) a vessel of the United States;
``(2) crewed by United States mariners; and
``(3) built in the United States.
``(b) Percentage.--A covered percentage under this section is the
following:
``(1) One percent in the year that is 5 years after the
date of enactment of this section.
``(2) Two percent in the year that is 6 years after the
date of enactment of this section.
``(3) Three percent in the year that is 7 years after the
date of enactment of this section.
``(4) Four percent in the year that is 8 years after the
date of enactment of this section.
``(5) Five percent in the year that is 9 years after the
date of enactment of this section.
``(6) Six percent in the year that is 10 years after the
date of enactment of this section.
``(7) Seven percent in the year that is 11 years after the
date of enactment of this section.
``(8) Eight percent in the year that is 12 years after the
date of enactment of this section.
``(9) Nine percent in the year that is 13 years after the
date of enactment of this section.
``(10) Ten percent in the year that is 14 years after the
date of enactment of this section.
``(c) Application.--The requirement under subsection (a) shall be
applied to any shipper importing goods into the United States that
originates from a foreign port or place.
``(d) Fine for Failure To Comply.--
``(1) In general.--On an annual basis, the Maritime
Administrator shall issue a fine to any entity failing to
comply with the requirements under this section.
``(2) Amount.--The amount of a fine under this section
shall be in an amount set by the Maritime Administrator that is
greater than the difference in cost between--
``(A) the cost of employing a vessel of the United
States that is built in the United States and crewed by
United States mariners; and
``(B) the cost of employing a foreign vessel 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 Maritime Security Trust
Fund.
``(e) Rulemaking Required.--Not later than 4 years after the date
of enactment of this section, the Maritime Administrator, in
coordination with the Secretary of Homeland Security and the Chairman
of the Federal Maritime Commission, shall promulgate a final rule that
establishes a system that--
``(1) identifies persons and goods that are subject to the
requirements of this section;
``(2) establishes requirements for such persons and goods
that meet the applicable percentages established under
subsection (b);
``(3) establishes clear enforcement mechanisms to ensure
compliance with this section; and
``(4) determines the amount of a fine issued under
subsection (d).
``(f) Definitions.--In this section:
``(1) Country with an open registry.--The term `country
with an open registry' means a country that allows vessels to
be documented under the laws of the country, without regard to
the citizenship 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 amended by adding at the end the
following:
``60508. Importation on American ships.''.
SEC. 416. PRIORITY FOR VESSELS OF THE UNITED STATES.
(a) In General.--Part D of subtitle V of title 46, United States
Code, is amended by inserting after chapter 553 the following:
``CHAPTER 555--PRIORITY FOR VESSELS OF THE UNITED STATES
``Sec.
``55501. Priority for vessels of the United States.
``Sec. 55501. Priority for vessels of the United States
``(a) In General.--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 following:
``555. Priority for vessels of the United States............ 55501''.
SEC. 417. MOVING CARGO ON VESSELS OF THE UNITED STATES.
(a) Assessment Required.--Not later than 180 days after the date of
enactment of this Act, the Maritime Security Advisor, in consultation
with the Secretary of Transportation, the Secretary of Commerce, the
Chairman of the Federal Maritime Commission, and the United States
Trade Representative, shall--
(1) conduct an assessment that identifies authorities
available under current Federal law, as of the date of such
identification, that may be utilized to incentivize the
movement of commercial cargo on vessels of the United States in
international commerce;
(2) review methods for greater assurances of access, in
crisis and conflict, to vessels of international 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;
(2) modifications to import and export duties for goods
imported or exported aboard vessels of the United States;
(3) privileges for vessels of the United States that enable
vessels of the United States to provide improved service
relative to other vessels in international commerce; and
(4) any other authorities that would incentivize the
movement of goods aboard vessels of the United States.
(c) Report to Congress.--Upon carrying out the assessment required
under subsection (a), the Maritime Security Advisor shall submit to the
appropriate committees of Congress--
(1) a list of the recommendations made under subsection
(a)(3); and
(2) a list of additional actions that could be taken by
Congress to further incentivize the movement of commercial
cargo on vessels of the United States.
(d) Definition.--In this section, the term ``vessel of the United
States'' has the meaning given the term in section 116 of title 46,
United States Code.
SEC. 418. TRANSPORTATION REQUIREMENTS FOR CERTAIN EXPORTS SPONSORED BY
THE SECRETARY OF AGRICULTURE.
Section 55314 of title 46, United States Code, is amended--
(1) by inserting before subsection (b) the following:
``(a) Applicability.--The requirements under section 55305 of this
title shall apply with respect to the activities specified in
subsection (b).'';
(2) in subsection (b)--
(A) in 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 ``agricultural
commodities or their products'' and inserting
``agricultural products'';
(D) in paragraph (5), by striking ``agricultural
commodities or their products'' and inserting
``agricultural products'';
(E) in paragraph (6), by striking ``agricultural
commodities or their products'' and inserting
``agricultural products'';
(F) in paragraph (7), by striking ``agricultural
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 Nutrition Program under section
3107 of the Farm Security 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.''.
SEC. 419. CLARIFYING AMENDMENTS.
(a) Agricultural Commodities Emergency Assistance Clarification.--
Section 202(a) of the Food for Peace Act (7 U.S.C. 1722(a)) is amended
by striking ``Notwithstanding'' and inserting ``Subject to the
requirements of sections 55305 and 55314 of title 46, United States
Code, and notwithstanding''.
(b) Administrative Provisions Clarification.--Section 407(b)(2)(A)
of the Food for Peace Act (7 U.S.C. 1736a(b)(2)(A)) is amended by
striking ``Notwithstanding'' and inserting ``Subject to the
requirements of sections 55305 and 55314 of title 46, United States
Code, and notwithstanding''.
(c) Emergency Food Security Program Clarification.--Section
491(c)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2292(c)(1))
is amended by inserting ``and the requirements of sections 55305 and
55314 of title 46, United States Code'' after ``section 492''.
SEC. 420. ENERGIZING AMERICAN SHIPBUILDING.
(a) National Policy on Strategic Energy Asset Export
Transportation.--
(1) Requirement for transportation of exports of natural
gas on vessels documented under laws of the united states.--
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
adding at the end the following:
``(g) Transportation of Exports of Natural Gas on Vessels
Documented Under Laws of the United States.--
``(1) Condition for approval.--Except as provided in
paragraph (7), with respect to an application to export natural
gas under subsection (a), the Commission shall include in the
order issued for that application the condition that the person
transport the natural gas on a vessel that meets the
requirements described in paragraph (3).
``(2) Purpose.--The purpose of the requirement under
paragraph (1) is to ensure that, of all natural gas exported by
vessel in a calendar year, the following percentage is exported
by a vessel that meets the requirements described in paragraph
(3):
``(A) In each of the 7 calendar years following the
calendar year in which this subsection is enacted, not
less than 2 percent.
``(B) In each of the 8th and 9th calendar years
following the calendar year in which this subsection is
enacted, not less than 3 percent.
``(C) In each of the 10th and 11th calendar years
following the calendar year in which this subsection is
enacted, not less than 4 percent.
``(D) In each of the 12th and 13th calendar years
following the calendar year in which this subsection is
enacted, not less than 6 percent.
``(E) In each of the 14th and 15th calendar years
following the calendar year in which this subsection is
enacted, not less than 7 percent.
``(F) In each of the 16th and 17th calendar years
following the calendar year in which this subsection is
enacted, not less than 9 percent.
``(G) In each of the 18th and 19th calendar years
following the calendar year in which this subsection is
enacted, not less than 11 percent.
``(H) In each of the 20th and 21st calendar years
following the calendar year in which this subsection is
enacted, not less than 13 percent.
``(I) In the 22nd calendar year after the calendar
year in which this subsection is enacted and each
calendar year thereafter, not less than 15 percent.
``(3) Requirements for vessels.--A vessel meets the
requirements described in this paragraph--
``(A) with respect to each of the 5 calendar years
following the calendar year in which this subsection is
enacted--
``(i) if--
``(I) the vessel is documented
under the laws of the United States;
and
``(II) with respect to any retrofit
work necessary for the vessel to export
natural gas--
``(aa) such work is done in
a shipyard in the United
States; and
``(bb) any component of the
vessel listed in paragraph (4)
that is installed during the
course of such work is
manufactured in the United
States; or
``(ii) if--
``(I) the vessel is built in the
United States;
``(II) the vessel is documented
under the laws of the United States;
``(III) all major components of the
hull or superstructure of the vessel
are manufactured (including all
manufacturing processes from the
initial melting stage through the
application of coatings for iron or
steel products) in the United States;
and
``(IV) the components of the vessel
listed in paragraph (4) are
manufactured in the United States; and
``(B) with respect to the 6th calendar year
following the calendar year in which this subsection is
enacted, and each calendar year thereafter, if the
vessel meets the requirements of subparagraph (A)(ii).
``(4) Components.--The components of a vessel listed in
this paragraph are the following:
``(A) Air circuit breakers.
``(B) Welded shipboard anchor and mooring chain.
``(C) Powered and non-powered valves in Federal
Supply Classes 4810 and 4820 used in piping.
``(D) Machine tools in the Federal Supply Classes
for metal-working machinery numbered 3405, 3408, 3410
through 3419, 3426, 3433, 3438, 3441 through 3443,
3445, 3446, 3448, 3449, 3460, and 3461.
``(E) Auxiliary equipment for shipboard services,
including pumps.
``(F) Propulsion equipment, including engines,
propulsion motors, reduction gears, and propellers.
``(G) Shipboard cranes.
``(H) Spreaders for shipboard cranes.
``(I) Rotating electrical equipment, including
electrical alternators and motors.
``(J) Compressors, pumps, and heat exchangers used
in managing and re-liquefying boil-off gas from
liquefied natural gas.
``(5) Waiver authority.--The Commission may waive the
requirement under clause (i)(II)(bb) or (ii)(IV), as
applicable, of paragraph (3)(A) with respect to a component of
a vessel if the Maritime Administrator determines that--
``(A) application of the requirement would--
``(i) result in an increase of 25 percent
or more in the cost of the component of the
vessel; or
``(ii) cause unreasonable delays to be
incurred in building or retrofitting the
vessel; or
``(B) such component is not manufactured in the
United States in sufficient and reasonably available
quantities of a satisfactory quality.
``(6) Opportunities for credentialed merchant mariners.--
Except as provided in paragraph (7), the Commission shall
include, in any order issued under subsection (a) that
authorizes a person to export natural gas, a condition that the
person provide opportunities for individuals with a merchant
mariner credential (as defined in section 2101 of title 46,
United States Code) to receive experience and training
necessary to become credentialed in working on a vessel
transporting natural gas.
``(7) Exception.--The Commission may not include in any
order issued under subsection (a) authorizing a person to
export natural gas to a nation with which there is in effect a
free trade agreement requiring national treatment for trade in
natural gas a condition described in paragraph (1), or a
condition described in paragraph (6), if the United States
Trade Representative certifies to the Commission, in writing,
that such condition would violate obligations of the United
States under such free trade agreement.
``(8) Use of federal information.--In carrying out
paragraph (1), the Commission--
``(A) shall use information made available by--
``(i) the Energy Information
Administration; or
``(ii) any other Federal agency or entity
the Commission determines appropriate; and
``(B) may use information made available by a
private entity only if applicable information described
in subparagraph (A) is not available.''.
(2) Conforming amendment.--Section 3(c) of the Natural Gas
Act (15 U.S.C. 717b(c)) is amended by striking ``or the
exportation of natural gas'' and inserting ``or, subject to
subsection (g), the exportation of natural gas''.
(b) Crude Oil.--Section 101 of title I of division O of the
Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a) is amended--
(1) in subsection (b), by striking ``subsections (c) and
(d)'' and inserting ``subsections (c), (d), and (f)''; and
(2) by adding at the end the following:
``(f) Transportation of Exports of Crude Oil on Vessels Documented
Under Laws of the United States.--
``(1) In general.--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 transport the crude oil on a vessel that
meets the requirements described in paragraph (3).
``(2) Purpose.--The purpose of the requirement under
paragraph (1) is to ensure that, of all crude oil exported by
vessel in a calendar year, the following percentage is exported
by a vessel that meets the requirements described in paragraph
(3):
``(A) In each of the 7 calendar years following the
calendar year in which this subsection is enacted, not
less than 3 percent.
``(B) In each of the 8th, 9th, and 10th calendar
years following the calendar year in which this
subsection is enacted, not less than 6 percent.
``(C) In each of the 11th, 12th, and 13th calendar
years following the calendar year in which this
subsection is enacted, not less than 8 percent.
``(D) In the 14th calendar year following the
calendar year in which this subsection is enacted and
each calendar year thereafter, not less than 10
percent.
``(3) Requirements for vessels.--A vessel meets the
requirements described in this paragraph--
``(A) with respect to each of the 4 calendar years
following the calendar year in which this subsection is
enacted--
``(i) if--
``(I) the vessel is documented
under the laws of the United States;
and
``(II) with respect to any retrofit
work necessary for the vessel to export
crude oil--
``(aa) such work is done in
a shipyard in the United
States; and
``(bb) any component of the
vessel listed in paragraph (4)
that is installed during the
course of such work is
manufactured in the United
States; or
``(ii) if--
``(I) the vessel is built in the
United States;
``(II) the vessel is documented
under the laws of the United States;
``(III) all major components of the
hull or superstructure of the vessel
are manufactured (including all
manufacturing processes from the
initial melting stage through the
application of coatings for iron or
steel products) in the United States;
and
``(IV) the components of the vessel
listed in paragraph (4) are
manufactured in the United States; and
``(B) with respect to the 5th calendar year
following the calendar year in which this subsection is
enacted and each calendar year thereafter, if the
vessel meets the requirements of subparagraph (A)(ii).
``(4) Components.--The components of a vessel listed in
this paragraph are the following:
``(A) Air circuit breakers.
``(B) Welded shipboard anchor and mooring chain.
``(C) Powered and non-powered valves in Federal
Supply Classes 4810 and 4820 used in piping.
``(D) Machine tools in the Federal Supply Classes
for metal-working machinery numbered 3405, 3408, 3410
through 3419, 3426, 3433, 3438, 3441 through 3443,
3445, 3446, 3448, 3449, 3460, and 3461.
``(E) Auxiliary equipment for shipboard services,
including pumps.
``(F) Propulsion equipment, including engines,
propulsion motors, reduction gears, and propellers.
``(G) Shipboard cranes.
``(H) Spreaders for shipboard cranes.
``(I) Rotating electrical equipment, including
electrical alternators and motors.
``(5) Waiver authority.--The President may waive the
requirement under clause (i)(II)(bb) or clause (ii)(IV), as
applicable, of paragraph (3)(A) with respect to a component of
a vessel if the Maritime Administrator determines that--
``(A) application of the requirement would--
``(i) result in an increase of 25 percent
or more in the cost of the component of the
vessel; or
``(ii) cause unreasonable delays to be
incurred in building or retrofitting the
vessel; or
``(B) such component is not manufactured in the
United States in sufficient and reasonably available
quantities of a satisfactory quality.
``(6) Exception.--The President may not, under paragraph
(1), condition the export of crude oil to a nation with which
there is in effect a free trade agreement requiring national
treatment for trade in crude oil if the United States Trade
Representative certifies to the President, in writing, that
such condition would violate obligations of the United States
under such free trade agreement.
``(7) Opportunities for credentialed merchant mariners.--
The Maritime Administrator shall ensure that the owner or
operator of a vessel transporting crude oil provides
opportunities for individuals with a merchant mariner
credential (as defined in section 2101 of title 46, United
States Code) to receive experience and training necessary to
become credentialed in working on such vessels.
``(8) Use of federal information.--In carrying out
paragraph (1), the President--
``(A) shall use information made available by--
``(i) the Energy Information
Administration; or
``(ii) any other Federal agency or entity
the Commission determines appropriate; and
``(B) may use information made available by a
private entity only if applicable information described
in subparagraph (A) is not available.''.
(c) Energy Information Administration Information.--The Secretary
of Energy, acting through the Administrator of the Energy Information
Administration (referred to in this section as the ``Secretary''),
shall collect, and make readily available to the public on the internet
website of the Energy Information Administration, information on
exports by vessel of natural gas and crude oil, including--
(1) forecasts for, and data on, those exports for the
calendar year following the calendar year in which this Act is
enacted and each calendar year thereafter; and
(2) forecasts for those exports for multiyear periods after
the date of enactment of this Act, as determined appropriate by
the Secretary.
SEC. 421. 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 importing
goods aboard the vessel is comparable to or greater
than the cost of importing goods aboard''; and
(C) in subparagraph (B)--
(i) by striking ``(i) is owned'' and
inserting 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 duties''.
SEC. 422. SHIP AMERICA OFFICE.
(a) In General.--Chapter 553 of title 46, United States Code, is
amended by adding at the end the following:
``SUBCHAPTER IV--SHIP AMERICA OFFICE
``Sec. 55341. Establishment of Ship America Office
``(a) Establishment.--The Maritime Administrator shall establish
within the Maritime Administration an office to be known as the `Ship
America Office'. The Maritime Administrator shall appoint the head of
the Ship America Office (in this section referred to as the `Ship
America Associate Administrator').
``(b) Duties.--The Ship America Associate Administrator shall have
the following duties:
``(1) Providing assistance to private sector entities,
Federal financial assistance recipients, Federal agencies,
Federal contractors, and owners and operators of oceangoing
vessels of the United States to facilitate the movement of
commercial and government cargo on vessels of the United States
in international commerce.
``(2) Maximizing compliance across Federal agencies with
this chapter, section 2631 of title 10, and any other cargo
preference law of the United States.
``(3) Providing training and assistance to Federal
employees, in all Federal agencies responsible for shipping
preference cargo, on the legal obligations under this chapter,
section 2631 of title 10, United States Code, and any other
cargo preference law of the United States.
``(4) Developing a `Ship America' verification program to
develop self-certification industry standards, 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.
``(6) Where practicable, making accessible, and regularly
updating, the publicly available contact information for
oceangoing vessels of the United States for the purposes of
moving international commerce.
``(7) Publishing, and regularly updating, centralized
information on the commercial benefits available to private
sector entities for moving commercial cargo on oceangoing
vessels of the United States.
``(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
section 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.''.
(b) Clerical Amendment.--The table of sections for chapter 553 of
title 46, United States Code, is amended by adding at the end the
following:
``subchapter iv--ship america office
``55341. Establishment of Ship America Office.''.
Subtitle C--Regulatory Reform
SEC. 431. ALTERNATE STANDARDS.
(a) In General.--Chapter 33 of title 46, United States Code, is
amended--
(1) by redesignating sections 3317 and 3318 as sections
3318 and 3319, respectively; and
(2) by inserting after section 3316 the following:
``Sec. 3317. Alternate standards
``(a) In General.--Not later than 1 year after the date of
enactment of the Shipbuilding and Harbor Infrastructure 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 become a documented
vessel.
``(b) Requirements.--Under the program established under subsection
(a), a self-propelled vessel used to provide oceangoing transportation
that is not documented under chapter 121 of this title shall be
eligible for a certificate of inspection if the Secretary determines
that--
``(1) the owner of the vessel has agreed to apply to have
the vessel documented under chapter 121 upon receiving the
certificate;
``(2) at the time of the receipt of such certificate, the
vessel is eligible for documentation under such chapter;
``(3) the vessel is classed by and designed in accordance
with the rules of a classification society accepted by the
Secretary;
``(4) the vessel complies with applicable international
agreements and associated guidelines, as determined by the
country in which the vessel was documented immediately before
becoming documented under chapter 121, notwithstanding any
other law including any regulation;
``(5) the vessel has been assessed for cybersecurity and
surveillance risks; and
``(6) the country in which the vessel was documented
immediately before becoming documented under chapter 121 has
not been identified by the Secretary as inadequately enforcing
international vessel regulations as to that vessel.
``(c) Continued Eligibility for Certificate.--This section does not
apply to a vessel after any date on which the vessel fails to comply
with the applicable international agreements and associated guidelines
referred to in subsection (b)(4).
``(d) Reliance on Classification Society.--
``(1) In general.--The Secretary may rely on a
certification from the American Bureau of Shipping or, subject
to paragraph (2), another classification society accepted by
the Secretary to establish that a vessel is in compliance with
the requirements of paragraphs (3), (4), and (6) of subsection
(b) and of subsection (c).
``(2) Foreign classification society.--The Secretary may
accept certification from a foreign classification society
under paragraph (1) only--
``(A) to the extent that the government of the
foreign country in which the society is headquartered
provides access on a reciprocal basis to the American
Bureau of Shipping; and
``(B) if the foreign classification society has
offices and maintains records in the United States.
``(e) Rulemaking Procedure.--The Secretary may initiate a
rulemaking procedure to implement this standard.
``(f) Savings Provision.--Nothing in this section shall be
interpreted to affect requirements related to merchant seamen
credentials under part E of subtitle II of this title or the
requirements related to manning of vessels under part F of such
subtitle.''.
(b) Clerical Amendment.--The table of sections for chapter 33 of
title 46, United States Code, is amended by striking the items relating
to sections 3317 and 3318 and inserting the following:
``3317. Alternate standards.
``3318. Fees.
``3319. Penalties.''.
SEC. 432. RULEMAKING COMMITTEE ON COMMERCIAL MARITIME REGULATIONS AND
STANDARDS.
(a) Definitions.--In this section:
(1) Covered regulation.--The term ``covered regulation''--
(A) means a commercial regulation or standard
issued by the Coast Guard relating to the operation of
vessels in foreign commerce, including--
(i) vessel design and engineering
standards;
(ii) merchant mariner training and
credentialing; or
(iii) vessel operating and environmental
standards; and
(B) does not include any commercial regulation or
standard issued by the Coast Guard that exclusively
applies to vessels in domestic commerce.
(2) Rulemaking committee.--The term ``rulemaking
committee'' means the committee established under subsection
(b).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the department in which the Coast Guard is operating.
(b) Establishment of Rulemaking Committee.--There is established,
in the department in which the Coast Guard is operating, a rulemaking
committee on commercial maritime regulations and standards to--
(1) review, and develop findings and recommendations
regarding, the covered regulations; and
(2) provide to the Secretary a report on opportunities to
review and update regulations governing vessel design and
engineering, vessel and facility operation and environmental
standards, and merchant mariner credentialing, in order to--
(A) revitalize the merchant marine and 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 Organization and international
treaty requirements, while protecting United States
mariners and the United States maritime industry from
foreign regulations that undermine the maritime
industrial competitiveness of the United States.
(c) Members.--
(1) Composition of rulemaking committee.--The Secretary
shall appoint the following as members of the rulemaking
committee:
(A) Each of the following Federal officers or
employees, or their designees:
(i) The Maritime Security Advisor.
(ii) The Maritime Administrator.
(iii) The Commandant of the Coast Guard.
(iv) The Secretary of Commerce.
(v) The Administrator of the Environmental
Protection Agency.
(vi) The Chair of the Federal Maritime
Commission.
(vii) The chief United States delegate to
the International Maritime Organization.
(B) Representatives from recognized classification
societies, including the American Bureau of Shipping.
(C) Representatives of industry, including--
(i) owners and operators of vessels in
domestic and foreign commerce of the United
States;
(ii) shipbuilders; and
(iii) other representatives of industry the
Secretary determines appropriate.
(D) Individuals with a merchant mariner credential,
as defined in section 2101 of title 46, United States
Code.
(E) Representatives of maritime labor
organizations.
(F) Experts in maritime safety and regulatory
matters.
(G) Other stakeholders the Secretary determines
appropriate.
(2) Period of appointment; vacancies.--
(A) In general.--A member of the rulemaking
committee shall be appointed for the life of the
rulemaking committee.
(B) Vacancies.--A vacancy in the rulemaking
committee--
(i) shall not affect the powers of the
rulemaking committee; and
(ii) shall be filled in the same manner as
the original appointment.
(3) Chairperson and vice chairperson.--The Secretary shall
select a Chairperson and Vice Chairperson from among the
members of the rulemaking committee.
(d) Meetings.--
(1) Initial meeting.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall convene the
rulemaking committee for the first meeting of the rulemaking
committee.
(2) Quorum.--A majority of the members of the rulemaking
committee shall constitute a quorum, but a lesser number of
members may hold hearings.
(e) Duties of Committee.--
(1) Considerations.--The rulemaking committee shall
consider each of the following:
(A) How the covered regulations interact with and
compare to the treaty requirements and regulations
established by the International Maritime Organization,
including comparisons and interactions on the basis
of--
(i) safety;
(ii) cost;
(iii) enforceability and compliance; and
(iv) international competitiveness.
(B) The benefits and challenges vessel owners and
operators and United States mariners encounter when
complying with both regulations of the International
Maritime Organization and the covered regulations.
(C) The role that covered regulations play in
enhancing the size and strength of the merchant marine
and the domestic and international fleet of the United
States.
(D) Recommended changes to covered regulations, and
regulatory frameworks, to better promote alignment with
international standards and the standards of countries
that are allies and partners, with a focus on--
(i) increasing opportunities for qualified
mariners that enter the merchant marine and
reducing the barriers that lead qualified
mariners to leave the merchant marine;
(ii) increasing the number of vessels
documented under the laws of the United States
that are operating in domestic and foreign
commerce;
(iii) enhancing United States leadership
within the International Maritime Organization
and other international treaty organizations
with a focus on the maritime industry;
(iv) streamlining regulatory processes and
processing timelines to minimize duplicative
reviews and eliminate preventable delays; and
(v) maintaining and enhancing the safety
and security of the merchant marine.
(E) Recommended changes to covered regulations and
regulatory frameworks that govern mariner education
training requirements, which may include--
(i) expanding the pool of qualified
instructors for mariner training programs;
(ii) streamlining requirements related to
training facility size and design to improve
operational efficiencies at mariner training
facilities, including requirements related to
classroom size and design;
(iii) standardizing and streamlining
training course and curriculum approval and
evaluation to provide more certainty to mariner
training programs; and
(iv) enhancing opportunities for mariner
training programs to flexibly integrate sea-
time into course instruction, consistent with
treaty requirements and regulations established
by the International Maritime Organization.
(F) Any other matters the Secretary determines
appropriate.
(2) Report.--Not later than 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 to covered regulations of the rulemaking
committee, as required under paragraph (1).
(f) Powers of Rulemaking Committee.--
(1) Hearings.--The rulemaking committee may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the rulemaking
committee considers advisable to carry out this section.
(2) Information from federal agencies.--
(A) In general.--The rulemaking committee may
secure directly from a Federal department or agency
such information as the rulemaking committee considers
necessary to carry out this section, as permitted by
law.
(B) Furnishing information.--On request of the
Chairperson of the rulemaking committee, the head of
the department or agency shall furnish the information
to the rulemaking committee.
(g) Rulemaking Committee Personnel Matters.--
(1) No compensation.--A member of the rulemaking committee
shall not be compensated for service on the rulemaking
committee.
(2) Travel expenses.--A member of the rulemaking committee
shall be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the rulemaking committee.
(h) Administration.--Except as specified otherwise in this section,
the rulemaking committee shall be treated as a committee established
under chapter 151 of title 46, United States Code, for purposes of
section 15109 of such title 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 (e)(2), submit to the
appropriate committees of Congress, and make publicly
available, a copy of such report and the Secretary's views on
the recommendations of the committee; and
(2) not later than 90 days after submitting the report
under paragraph (1)--
(A) initiate a rulemaking activity and make such
policy and guidance updates determined necessary by the
Secretary to address the consensus recommendations
reached by the rulemaking committee under subsection
(e);
(B) submit a report to the appropriate committees
of Congress identifying the recommendations of the
rulemaking committee that require legislative changes;
and
(C) submit a report to the Secretary of State
identifying recommendations of the rulemaking committee
that require changes to treaty requirements and
regulations established by the International Maritime
Organization, including recommendations that should
inform the policy of the United States as a member of
the International Maritime Organization.
SEC. 433. AMENDMENTS TO SHIPOWNERS' LIMITATION OF LIABILITY ACT OF
1851.
(a) In General.--Section 30523 of title 46, United States Code, is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) Limit of Owner Liability.--
``(1) In general.--Except as provided in section 30524 of
this title, the liability of--
``(A) the owner of a vessel of the United States
for any claim, debt, or liability described in
subsection (b) shall not exceed the value of the vessel
and pending freight; and
``(B) the owner of a foreign vessel for any claim,
debt, or liability described in subsection (b) shall
not exceed the amount that is 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 liability under paragraph
(1) of any one such owner shall not exceed that owner's
proportionate interest in the vessel and pending freight.'';
and
(2) by striking subsection (c) and inserting the following:
``(c) Claims Not Subject to Limitation.--Subsection (a) does not
apply to--
``(1) a claim for wages; or
``(2) with respect to the liability of an owner of a
foreign vessel, a claim, debt, or liability arising from
personal injury or wrongful death of a person who was not a
crewmember or passenger of the foreign vessel at the time the
injury (including fatal injury, if applicable) occurred.''.
(b) Amendment to Cessation of Certain Actions.--Section 30529(c) of
title 46, United States Code, is amended by striking ``the matter in
question'' and inserting ``a matter subject to 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:
``CHAPTER 538--SHIPBUILDING FINANCIAL INCENTIVES
``Sec. 53801. Shipbuilding financial incentives
``(a) Establishment.--The Maritime Administrator shall establish a
program that, in accordance with the requirements of this section,
provides Federal financial assistance to covered entities to--
``(1) aid in the construction of a vessel that shall be
documented under the laws of the United States; or
``(2) incentivize a qualified shipyard investment.
``(b) Definitions.--In this section:
``(1) Appropriate committees of congress.--The term
`appropriate committees of Congress' means the Committee on
Commerce, Science, and Transportation and the Committee on
Appropriations of the Senate and the Committee on Armed
Services and the Committee on Appropriations of the House of
Representatives.
``(2) Covered entity.--The term `covered entity' means--
``(A) any proposed vessel purchaser who is a
citizen of the United States; or
``(B) any shipyard of the United States with the
ability, experience, financial resources, and other
qualifications to construct or repair a military vessel
or a vessel to be used in the foreign commerce of the
United States.
``(3) Foreign commerce.--The term `foreign commerce'
means--
``(A) commerce or trade between the United States,
its territories or possessions, or the District of
Columbia, and a foreign country; and
``(B) commerce or trade between foreign countries.
``(4) Foreign country of concern; foreign entity of
concern.--The terms `foreign country of concern' and `foreign
entity of concern' have the meanings given such terms in
section 4 of the SHIPS for America Act of 2025.
``(5) Qualified shipyard investment.--The term `qualified
shipyard investment' means an investment to construct,
modernize, or expand--
``(A) a shipyard of the United States that
constructs or repairs civilian or military vessels; or
``(B) a manufacturing facility--
``(i) that is--
``(I) a component supplier;
``(II) a subcomponent supplier; or
``(III) a manufacturing equipment
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 vessels of the
United States, as determined by the
Administrator.
``(c) Procedure.--
``(1) Application.--A covered entity desiring financial
assistance under this section shall submit an application to
the Maritime Administrator.
``(2) 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
construction of a vessel of the United States as
described in subsection (a)(1)--
``(i) enter into an agreement with the
Maritime Administrator establishing that the
vessel that is constructed with Federal
financial assistance shall be, for a period of
not less than 10 years, documented under the
laws of the United States; and
``(ii) agree to carry out all construction
in a shipyard of the United States as the
result of competitive bidding, after due
advertisement, with the right reserved by the
Administrator to disapprove any or all bids;
``(B) for financial assistance related to qualified
shipyard investments as described in subsection (a)(2),
use the financial assistance award amounts to
incentivize investments in--
``(i) facilities or equipment related to
shipbuilding or ship repair; or
``(ii) maritime component suppliers and
subcomponent suppliers with over 50 percent
maritime use in each such investment; and
``(C) make commitments to worker and community
investment, including through--
``(i) programs to expand employment
opportunity for economically disadvantaged
individuals; and
``(ii) securing commitments from regional
educational and training entities and
institutions of higher education to provide
workforce training, including programming for
training and job placement of economically
disadvantaged individuals.
``(3) Review of applications.--
``(A) Considerations for review.--With respect to
the review by the Maritime Administrator of an
application submitted--
``(i) the Maritime Administrator may not
approve an application for construction of a
vessel as described in subsection (a)(1) unless
the Administrator--
``(I) determines that a vessel
funded through the program--
``(aa) will aid in the
promotion and development of
foreign commerce; and
``(bb) will be suitable for
use by the United States for
national defense or military
purposes in time of war or
national emergency;
``(II) determines that the vessel
purchaser applying for funding under
this section possesses the ability,
experience, financial resources, and
other qualifications necessary for the
operation and maintenance of the
proposed new vessel;
``(III) determines that the
shipyard that will construct a vessel
under this section possesses the
ability, experience, financial
resources, equipment, and other
qualifications necessary to properly to
construct the proposed vessel;
``(IV) confirms that any newly
constructed vessel has dedicated space
for the training of cadets of the
United States Merchant Marine Academy
(consistent with the requirements of
section 51307(b)), State maritime
academies (consistent with the
requirements of section 51507), or
other workforce training programs
identified by the Administrator; and
``(V) has notified the appropriate
committees of Congress not later than
15 days before making any commitment to
provide Federal financial assistance to
any covered entity; and
``(ii) the Maritime Administrator may not
approve an application to incentivize qualified
shipyard investments as described in subsection
(a)(2) unless the Administrator--
``(I) confirms that the covered
entity has received an incentive
offered by a governmental entity to a
covered entity for the purposes of
supporting a qualified shipyard
investment within that jurisdiction;
``(II) ensures that the covered
entity has an executable plan to
sustain the facility without additional
Federal financial assistance under this
subsection for the facility;
``(III) determines that the project
to which the application relates is in
the economic and national security
interests of the United States; and
``(IV) receives detailed
information on--
``(aa) the customers, or
categories of customers, which
the covered entity plans to
serve;
``(bb) the type of
expenditures which the covered
entity plans to make; and
``(cc) the workforce
positions that the covered
entity plans to employ,
including any required
recruitment, training, and
hiring; and
``(iii) the Maritime Administrator may
consider--
``(I) whether the covered entity
has previously received financial
assistance under this section;
``(II) the price for the
construction or repair of a vessel that
has been negotiated between a shipyard
and proposed vessel purchaser, and
whether the negotiated price is fair
and reasonable;
``(III) whether the covered entity
commits to use equipment, materials,
and supplies that are produced in the
United States, and utilize, to the
maximum extent practicable,
subcontractors and suppliers that are
based in the United States; and
``(IV) whether the covered entity
commits to utilizing new or emerging
technologies.
``(B) Records.--The Maritime Administrator may
request records and information from the covered
entity. The covered entity shall provide the records
and information requested by the Administrator.
``(C) Priority.--In providing Federal financial
assistance to covered entities under this section, the
Maritime Administrator may--
``(i) for an application for construction
of a vessel as described in subsection (a)(1),
give priority to applicants that--
``(I) propose the construction of
vessels of higher transport capability
and productivity;
``(II) commit to have modifications
done in the United States to a vessel
constructed with such financial
assistance; or
``(III) propose the construction or
modification of a vessel to meet the
national security needs of the United
States; and
``(ii) for an application to incentivize a
qualified shipyard investment as described in
subsection (a)(2), give priority to applicants
that--
``(I) propose to expand production
capacity to enable more military or
commercial vessels to be constructed or
repaired in the United States;
``(II) commit to using new or
emerging technologies or vessel design
processes that increase production
times or lower production costs; or
``(III) have experience making
qualified shipyard investments or
operating shipyards for commercial or
military oceangoing vessels.
``(4) National defense features.--
``(A) In general.--Upon receiving an application
for the construction of a vessel under this section,
the Maritime Administrator shall submit to the
Secretary of the Navy the plans and specifications for
the proposed vessel for review.
``(B) Recommendations.--Not later than 30 days
after the date of receiving the plans and
specifications for a vessel as provided for under
subparagraph (A), the Secretary of the Navy may make
recommendations to the Maritime Administrator for the
design of the vessel, which would enable the economical
and speedy conversion of the vessel into a vessel
suitable for use of the United States Government in
times of war or national emergency.
``(C) Requirement to implement recommendations.--If
the Maritime Administrator agrees with such
recommendations, the Maritime Administrator shall
require the covered entity to carry out such
recommendations as a condition of receiving Federal
financial assistance under this section with respect to
that vessel.
``(5) Relationship to other financial assistance
programs.--A covered entity may not receive financial
assistance under this section for a vessel which is enrolled in
the Strategic Commercial Fleet Program.
``(d) Award Amounts.--
``(1) Construction of a vessel of the united states.--
``(A) In general.--For financial assistance related
to construction of a vessel of the United States, as
described in subsection (a)(1), the Maritime
Administrator shall determine the appropriate amount
and funding for each financial assistance award made
under this section.
``(B) Determination.--In making the determination
under subparagraph (A), the Maritime Administrator
shall consider the difference in the cost of
constructing the proposed vessel within the United
States over the fair and reasonable estimate of cost of
the construction of that type of vessel if it were
constructed under similar plans and specifications
(excluding national defense features as described in
subsection (c)(4)) in a foreign shipbuilding center
that is deemed by the Administrator to furnish a fair
and representative example for the determination of the
estimated foreign cost of construction of vessels of
the type proposed to be constructed.
``(2) Qualified shipyard investments.--For financial
assistance provided to incentivize qualified shipyard
investments as described in subsection (a)(2), the Maritime
Administrator shall determine the appropriate amount for each
financial assistance award made to a covered entity to maximize
private sector investments and to expand shipyard and ship
building capacity of the United States.
``(3) Use of funds.--A covered entity that receives a
financial assistance award under this section may only use the
financial assistance award amounts to--
``(A)(i) finance the construction of a vessel to be
built in the United States and documented under the
laws of the United States; or
``(ii) support site development, construction, and
modernization for qualified shipyard investments; and
``(B) support workforce development for a shipyard
or qualified shipyard investment.
``(e) Applications for Reconstruction, Conditioning, or
Repowering.--The Maritime Administrator may, if determined to be in the
national and economic security interests of the United States and
consistent with the requirements of this section, consider an
application as described in subsection (a)(1), and award financial
assistance under this section, for the reconstruction, reconditioning,
or repowering of an existing vessel in a shipyard of the United States.
``(f) Pilot Program for Vessels in Domestic Commerce.--
``(1) In general.--The Maritime Administrator may, if
determined to be in the national and economic security
interests of the United States and consistent with all other
requirements of this section (except the requirement under
subsection (c)(3)(A)(i)(I)(aa)), establish a pilot program to
consider an application as described in subsection (a)(1), and
award financial assistance under this section for the
construction of a vessel for use in service other than the
foreign commerce.
``(2) Eligible vessels.--In addition to all other
requirements of this section (except the requirement under
subsection (c)(3)(A)(i)(I)(aa)), a vessel qualifying for
funding through the pilot program under this subsection shall
only be eligible if the Administrator certifies that the vessel
of the United States that will be constructed--
``(A)(i) will operate in an emerging industry 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
``(C) will be an oceanographic research vessel (as
defined in section 2101 of this title).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to alter the requirements 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 milestones by which the vessel's
construction or a qualified shipyard investment shall be
completed.
``(2) Progressive recovery for delays.--Subject to
paragraph (3), if a covered entity does not meet such target
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 described in paragraph (2) that is
incorporated in each award after--
``(A) making a formal determination that
circumstances beyond the ability of the covered entity
to foresee or control are responsible for delays; and
``(B) submitting congressional notification.
``(4) Congressional notification.--The Administrator shall
notify the appropriate committees of Congress--
``(A) of the target dates described in paragraph
(1) for each award; and
``(B) of any waivers provided under paragraph (3)
not later than 15 days after the date on which such a
waiver was provided.
``(h) 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 Administrator of Federal
financial assistance for a project described in this section shall not
be considered to be a major Federal action under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or an
undertaking for the purposes of division A of subtitle III of title 54,
United States Code.
``(j) Buy America.--Section 54101(d)(2) shall apply to any funds
obligated by the Administrator under this section.
``(k) GAO Review.--The Comptroller General of the United States
shall--
``(1) not later than 2 years after the date of disbursement
of the first financial award under this section, and biennially
thereafter for 10 years, conduct a review of the program under
this section; and
``(2) submit to the appropriate committees of Congress the
results of each review.
``(l) Prohibition on Use of Funds.--
``(1) In general.--No funds made available under this
section may--
``(A) be used to construct, modify, or improve a
facility outside of the United States;
``(B) be provided to a foreign entity of concern 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 financial
assistance under this section may not engage in any stock
buyback for a period of 5 years after receiving such
assistance.
``(m) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator, out of the Maritime Security Trust
Fund established under section 50301(b) of this title, $250,000,000 for
each of fiscal years 2026 through 2035 to provide financial assistance
to covered entities under this section, to remain available until
expended.''.
(b) Clerical Amendment.--The table of chapters at the beginning of
part C of subtitle V of title 46, United States Code, and at the
beginning of subtitle V of such title, are each amended by inserting
after the item relating to chapter 537 the following new item:
``538. Shipbuilding financial incentives.................... 53801''.
(c) Conforming Amendment.--Title V of the Act of June 29, 1936 (49
Stat. 1995; chapter 858) is repealed.
SEC. 502. ASSISTANCE FOR SMALL SHIPYARDS.
Section 54101 of title 46, United States Code, is amended--
(1) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (B), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(C) long-term industrial base growth that
supports the national security and economic security
needs of the merchant marine of the United States.'';
and
(2) in subsection (i)--
(A) by inserting ``out of the Maritime Security
Trust Fund established under section 50301(b) of this
title'' before ``to the Administrator of the Maritime
Administration''; and
(B) by striking ``for fiscal year 2021 to carry out
this section $20,000,000'' and inserting ``$100,000,000
for each of fiscal years 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 enactment of the SHIPS for America Act of 2025, the
Secretary shall establish a revolving loan fund to be administered by
the National Surface Transportation and Innovation Finance Bureau
established under section 116 of title 49. Any funds appropriated to
carry out this chapter shall be deposited in the fund, along with any
proceeds generated from the loan guarantee program under this chapter
including any fees collected under section 53713 or 53714. The
Secretary or Administrator shall make a guarantee of payments or
commitment to guarantee payments under subsection (a) or for the
Secretary to make direct loan obligations under subsection (b) out of
the revolving loan fund.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated, out of the Maritime Security Trust Fund established under
section 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 percent of
obligations guaranteed under this chapter shall be for projects
that do not receive any payments or Federal financial
assistance from financial assistance programs established under
this part.''; and
(2) in subsection (c), by adding at the end the following:
``(5) Vessel of national interest.--The Administrator shall
ensure that the system of risk categories under paragraph (2)
takes into consideration whether a project subject to a
guarantee under this chapter is a project to construct,
reconstruct, or recondition a Vessel of National Interest.''.
(c) Eligible Purposes of Obligations.--Section 53706(a)(8) of title
46, United States Code, is amended--
(1) by striking ``States.'' and inserting ``States that is
required--''; and
(2) by adding at the end the following new subparagraphs:
``(A) for the vessel to be a vessel of the United
States;
``(B) for the vessel to be issued a coastwise
endorsement under chapter 121;
``(C) to convert a civilian vessel of the United
States to a more useful military configuration;
``(D) for any vessel under contract to the Federal
Government; or
``(E) for any United States-built vessel
participating in--
``(i) the Maritime Security Program or the
Emergency Preparedness Program under chapter
531;
``(ii) the Cable Security Fleet under
chapter 532;
``(iii) the Tanker Security Fleet under
chapter 534;
``(iv) the Strategic Commercial Fleet under
chapter 536;
``(v) the Shipbuilding Financial Incentive
under chapter 538; or
``(vi) the National Defense Reserve Fleet
under section 57100.''.
(d) Buy America.--Section 53733 of title 46, United States Code, is
amended by 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)--
(A) in the paragraph heading, by striking ``New
vessel'' and inserting ``Eligible vessel'';
(B) in the matter preceding subparagraph (A), by
striking ``new vessel'' and inserting ``eligible
vessel''; and
(C) in subparagraph (A)--
(i) in clause (i), by striking ``after
December 31, 1939'';
(ii) in clause (ii), by striking ``and''
after the semicolon;
(iii) by redesignating clause (iii) as
clause (iv); and
(iv) by inserting after clause (ii), the
following:
``(iii) operated in foreign commerce or
domestic commerce of the United States or in
the fisheries; and''; and
(3) by adding at the end the following:
``(3) Foreign commerce.--The term `foreign commerce'
means--
``(A) commerce or trade between the United States,
its territories or possessions, or the District of
Columbia, and a foreign country; and
``(B) commerce or trade between foreign
countries.''.
(b) Authority for Construction Reserve Funds.--Section 53302(a) of
title 46, United States Code, is amended by striking ``or acquisition
of a new vessel'' and inserting ``repowering, or acquisition of an
eligible vessel''.
(c) Persons Eligible To Establish Funds.--Section 53303 of title
46, United States Code, is amended--
(1) by striking the matter preceding paragraph (1) and
inserting the following: ``A citizen of the United States may
make an agreement with the Secretary of Transportation under
this chapter to establish a construction reserve fund if that
citizen--'';
(2) in paragraph (1), by striking ``in the foreign or
domestic commerce of the United States'' and inserting
``documented under the laws of the United States and operating
in foreign commerce or domestic commerce of the United
States'';
(3) in paragraph (2), by striking ``being operated in the
foreign or domestic commerce of the United States'' and
inserting ``documented under the laws of the United States and
operating in foreign commerce or domestic commerce of the
United States'';
(4) in paragraph (3), by striking ``in the foreign or
domestic commerce of the United States'' and inserting
``documented under the laws of the United States and operating
in foreign commerce or domestic commerce of the United
States'';
(5) in paragraph (4)--
(A) by striking ``being operated in the foreign or
domestic commerce of the United States'' and inserting
``documented under the laws of the United States and
operating in foreign commerce or domestic commerce of
the United States''; and
(B) by striking ``or'' after the semicolon;
(6) in paragraph (5)--
(A) by striking ``in the foreign or domestic
commerce of the United States'' and inserting
``documented under the laws of the United States to
operate in foreign commerce or domestic commerce of the
United States''; and
(B) by striking the period at the end and inserting
``; or''; and
(7) by adding at the end the following:
``(6) commits, as a part of the agreement with the
Secretary under this chapter, to construct, reconstruct,
recondition, repower, or acquire, and operate, an eligible
vessel by not later than 5 years after the date on which the
construction reserve fund is established.''.
(d) Vessel Ownership.--Section 53304 of title 46, United States
Code, is amended by striking ``constructed or acquired'' each place the
term appears and inserting ``constructed, reconstructed, reconditioned,
repowered, or acquired''.
(e) Basis for Determining Gain or Loss.--Section 53307 of title 46,
United States Code, is amended--
(1) in the section heading, by striking ``new vessels'' and
inserting ``eligible vessels'';
(2) by striking ``a new vessel'' and inserting ``an
eligible vessel'';
(3) by striking ``the new vessel'' and inserting ``the
eligible vessel'';
(4) by inserting ``repowered,'' after ``reconditioned,'';
and
(5) by inserting ``repowering,'' after ``reconditioning,''.
(f) Obligation of Deposits.--Section 53310 of title 46, United
States Code, is amended--
(1) in subsection (a)--
(A) by striking ``a new vessel'' each place the
term appears and inserting ``an eligible vessel''; and
(B) in paragraph (1)(A), by striking ``or
reconditioning'' and inserting ``, repowering, or
reconditioning''; and
(2) by striking subsections (b) and (c) and inserting the
following:
``(b) Additional Requirements for Certain Vessels.--In addition to
the requirements of subsection (a)(1), for an eligible vessel not
constructed under the construction-differential program or not bought
from the Secretary of Transportation, construction shall commence with
reasonable dispatch after the date of the construction contract, as
determined by the Secretary of Transportation and certified by such
Secretary to the Secretary of the Treasury.
``(c) Extensions.--The Secretary of Transportation may grant
extensions of the period within which the deposits must be expended or
obligated, except that such extensions may not be for a total of more
than 15 years for the expenditure or obligation of deposits.''.
(g) Clerical Amendment.--The table of sections for chapter 533 of
title 46, United States Code, is amended by striking the item relating
to section 53307 and inserting the following:
``53307. Basis for determining gain or loss and for depreciating
eligible vessels.''.
SEC. 505. CAPITAL CONSTRUCTION FUND.
(a) In General.--Chapter 535 of subtitle V of title 46, United
States Code, is amended--
(1) in section 53501--
(A) by redesignating paragraphs (2), (3), (4), (5),
(6), (7), (8), and (9), as paragraphs (3), (5), (7),
(8), (9), (10), (11), and (12), respectively;
(B) by inserting after paragraph (1) the following:
``(2) Cargo handling equipment.--The term `cargo handling
equipment' means any vehicle or land-based equipment (excluding
marine container chassis), and the associated marine terminal
or port landside infrastructure, used at a marine terminal to
lift or move cargo--
``(A) manufactured in the United States (including
any territory or possession of the United States); or
``(B) manufactured outside of the United States, if
such equipment is not produced in the United States in
sufficient and reasonably available quantities or of a
satisfactory quality as determined by the Secretary.'';
(C) by inserting after paragraph (3), as
redesignated by subparagraph (A), the following:
``(4) Foreign commerce.--The term `foreign commerce'
means--
``(A) commerce or trade between the United States,
its territories or possessions, or the District of
Columbia, and a foreign country; and
``(B) commerce or trade between foreign
countries.'';
(D) by inserting after paragraph (5), as
redesignated by subparagraph (A), the following:
``(6) Marine terminal.--The term `marine terminal' means
wharves, bulkheads, quays, piers, docks, and other berthing
locations and adjacent storage or adjacent areas and structures
associated with the primary movement of cargo or materials from
vessel to shore, or from shore to vessel, including structures
which are devoted to receiving, handling, holding,
consolidating, loading, or delivery of waterborne shipments,
including areas devoted to the maintenance of the terminal or
equipment.''; and
(E) in paragraph (3)(A)(iii), as redesignated by
subparagraph (A), by striking ``foreign or domestic
trade of the United States'' and inserting ``foreign
commerce or domestic trade of the United States''; and
(F) in paragraph (8)(A)(iii), as redesignated by
subparagraph (A), by striking ``foreign or domestic
trade of the United States'' and inserting ``foreign
commerce or domestic trade of the United States'';
(2) in section 53503--
(A) by striking subsection (a) and inserting the
following:
``(a) In General.--
``(1) Citizen agreements.--A citizen of the United States
may make an agreement with the Secretary under this chapter to
establish a capital construction fund for a vessel if that
citizen--
``(A) owns or leases an eligible vessel; or
``(B) commits, as a part of such agreement, to
build and operate an eligible vessel not later than 5
years after establishing the capital construction fund.
``(2) Operator agreements.--An operator of a United States
marine terminal may make an agreement with the Secretary under
this chapter to establish a capital construction fund for the
marine terminal.''; and
(B) by striking subsection (b), and inserting the
following:
``(b) Allowable Purpose.--The purpose of the agreement shall be to
provide--
``(1) replacement vessels, additional vessels, or
reconstructed vessels, built in the United States and
documented under the laws of the United States, for operation
in the foreign commerce or domestic trade of the United States
or in the fisheries of the United States; or
``(2) replacement cargo handling equipment, additional
cargo handling equipment, or reconstructed cargo handling
equipment for operation at marine terminals in the United
States.'';
(3) in section 53504(b), by inserting ``or United States
marine terminal'' after ``agreement vessel'';
(4) by striking section 53505 and inserting the following:
``Sec. 53505. Ceiling on deposits
``(a) Maximum Deposits.--The amount deposited in a capital
construction fund for a taxable year may not exceed the amount
specified in the agreement under section 53503(a), which shall be an
amount that is related to a commitment to invest the revenue from the
capital construction fund into funding the construction of new vessels
or funding cargo handling equipment.
``(b) Revenue.--For the purposes of subsection (a), the revenue
from the capital construction fund may include--
``(1) income attributable to the operation of the agreement
vessel in foreign commerce or domestic trade or fisheries or
the operation of a marine terminal in the United States;
``(2) the amount allowable as a deduction under section 167
of the Internal Revenue Code of 1986 for the taxable year with
respect to the agreement vessels or cargo handling equipment;
``(3) the net proceeds from the disposition of an agreement
vessel or cargo handling equipment or insurance or indemnity
attributable to the vessel or cargo handling equipment; and
``(4) the receipts from the investment or reinvestment of
amounts held in the fund.
``(c) Reductions for Lessees.--For a lessee, the maximum amount
that may be deposited for an agreement vessel under subsection (a) for
any period shall be reduced by any amount the owner is required or
permitted, under the capital construction fund agreement, to deposit
for that period for the vessel under subsection (a).'';
(5) in section 53506--
(A) in subsection (a), by striking ``Except as
provided in subsection (b), amounts in the fund may be
invested only in interest-bearing securities approved
by the Secretary.''; and
(B) in subsection (b), by striking ``With the
approval of the Secretary, an agreed percentage (but
not more than 60 percent) of the assets of the fund''
and inserting ``An agreed percentage of the assets of
the fund'';
(6) in section 53509--
(A) by striking subsection (a), and inserting the
following:
``(a) In General.--Subject to subsections (b) and (c), a withdrawal
from a capital construction fund is a qualified withdrawal if it is
made under the terms of the agreement and is for--
``(1) the acquisition, construction, repowering, or
reconstruction of--
``(A) a qualified vessel or a barge or container
that is part of the complement of a qualified vessel;
or
``(B) cargo handling equipment; or
``(2) the payment of the principal on indebtedness incurred
in the acquisition, construction, repowering, or reconstruction
of--
``(A) a qualified vessel or a barge or container
that is part of the complement of a qualified vessel;
or
``(B) cargo handling equipment.'';
(B) by redesignating subsection (c) as subsection
(e); and
(C) by inserting after subsection (b) the
following:
``(c) Restriction.--No withdrawals may be made from a capital
construction fund to purchase fully automated cargo handling equipment
that is remotely operated or remotely monitored with or without the
exercise of human intervention or control, if the Secretary determines
such equipment would result in a net loss of jobs within a marine
terminal.
``(d) Prohibition on Certain Cranes.--No withdrawals may be made
from a capital construction fund to purchase cranes manufactured in the
People's Republic of China or by foreign entities of concern (as
defined in section 4 of the SHIPS for America Act of 2025).'';
(7) in section 53510--
(A) in subsection (b), by inserting ``cargo
handling equipment,'' after ``barge,'' both places the
term appears;
(B) in subsection (c), by inserting ``cargo
handling equipment,'' after ``barge,'' both places the
term appears; and
(C) in subsection (d), by inserting ``cargo
handling equipment,'' after ``barges,'';
(8) in section 53511(e)(1), by striking the table contained
therein and inserting the following:
``If the amount remains in the fund The applicable percentage is-
at the close of the-
16th taxable year.................................. 20 percent
17th taxable year.................................. 40 percent
18th taxable year.................................. 60 percent
19th taxable year.................................. 80 percent
20th taxable year................................100 percent'';
and
(9) in section 53512(b)(1), by adding ``cargo handling
equipment,'' after ``advanced''.
(b) Cargo Handling Equipment Availability.--The Secretary shall
annually publish in the Federal Register a request for information
regarding the availability of cargo handling equipment manufactured in
the United States and shall share the results of such request for
information with capital construction fund holders.
SEC. 506. ANTICIPATED COMMERCIAL VESSEL CONSTRUCTION SURVEY.
(a) In General.--Chapter 501 of title 46, United States Code, is
amended by adding at the end the following:
``Sec. 50115. Anticipated commercial vessel construction survey
``(a) Definition.--In this section, `commercial vessel of the
United States' means a vessel that is documented under the laws of the
United States, not less than 6,000 deadweight tons, and operated in the
domestic trade of the United States or foreign commerce, and may
include--
``(1) a bulk carrier vessel;
``(2) a tanker vessel;
``(3) a roll-on/roll-off vessel;
``(4) a liquefied natural gas tanker vessel;
``(5) a container vessel;
``(6) a multi-purpose vessel;
``(7) a cable vessel (as defined in section 53201);
``(8) a heavy-lift vessel; or
``(9) any other type of vessel determined appropriate by
the Administrator, in consultation with the Maritime Security
Board.
``(b) In General.--Not later than 180 days after the date of
enactment of this section, and annually thereafter, the Maritime
Administrator shall conduct a survey of owners, agents, or operators of
commercial vessels of the United States to identify plans for the
construction, maintenance, and modernization of commercial vessels of
the United States.
``(c) Purpose.--The purpose of the survey conducted under this
section is to inform the maritime industrial base of the future need
for the construction of commercial vessels.
``(d) Inclusions.--In conducting the survey under this section, the
Maritime Administrator shall collect the following information from
owners, agents, or operators of commercial vessels of the United States
who participate in the survey:
``(1) The number of commercial vessels of the United States
the participant is looking to construct during the 10-year
period beginning on the date on which the participant takes the
survey.
``(2) The capabilities of the vessels described in
paragraph (1) that the participant is seeking in constructing
such vessels.
``(3) Estimated timelines for when the participant aims to
place each such vessel into service.
``(4) The number of major repairs of commercial vessels of
the United States and overhauls of such commercial vessels the
participant is looking to carry out during the 10-year period
described in paragraph (1).
``(5) The major components that a shipbuilder would need
from industrial base suppliers to support the construction,
overhaul, or repair of commercial vessels of the United States
during such 10-year period.
``(6) Estimates for the capital expenditures the
participant is planning to make for the construction, overhaul,
or repair of commercial vessels of the United States during
such 10-year period.
``(7) Any additional information the Maritime Administrator
determines appropriate.
``(e) Participation.--The Administrator may not require any owner,
agent, or operator of a commercial vessel of the United States to
participate in the survey unless that owner, agency, or operator is
participating in a financial assistance program established under part
C of this subtitle.
``(f) Release of Findings.--
``(1) Distribution.--Each year, the Maritime Administrator
may release the findings of the survey with shipyards in the
United States and other maritime industrial base stakeholders
the results of the survey conducted under this section for such
year in such a manner as the Administrator determines
appropriate.
``(2) Proprietary information.--Notwithstanding any other
provision of law, including section 552 of title 5, United
States Code, at the request of a survey participant, the
Maritime Administrator shall withhold proprietary information
provided as a part of a survey conducted under this section.
``(3) Coordination.--To the maximum extent practicable, the
Maritime Administrator shall seek to conduct the annual surveys
under this section and publish the results of such surveys on a
similar timeline as the timeline for the annual naval vessel
construction plans under section 231(a)(1) of title 10 and
other shipbuilding construction surveys published by other
Federal agencies.''.
(b) Clerical Amendment.--The table of sections for chapter 501 of
title 46, United States Code, is amended by inserting after the item
relating to section 50114 the following:
``50115. Anticipated commercial vessel construction survey.''.
SEC. 507. STREAMLINED ENVIRONMENTAL REVIEW.
Section 41001(6) of the Fixing America's Surface Transportation Act
(42 U.S.C. 4370m(6)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by
inserting ``the maritime industry'' after
``waterways,'';
(B) by redesignating clauses (iii) and (iv) as
clauses (iv) and (v), respectively; and
(C) by inserting after clause (ii) the following:
``(iii) is covered by a programmatic plan
or environmental review developed for a project
related to the maritime industry;''; and
(2) by adding at the end the following:
``(D) Maritime industry.--For the purposes of
subparagraph (A), the term `construction of
infrastructure' for the maritime industry includes
construction of--
``(i) shipyards and ship repair facilities;
``(ii) port terminals and other port
facilities;
``(iii) manufacturing facilities for
equipment and technology instrumental to the
facilitation of maritime trade and commerce, as
defined by the Council; and
``(iv) other industrial base facilities
that support the Navy or the merchant marine of
the United States.''.
SEC. 508. ELIGIBILITY FOR LOAN GUARANTEES.
Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C.
16513(b)) is amended by inserting at the end the following:
``(14) Marine transportation systems, including commercial
vessels of the United States, shipyards, marine terminals, and
port facilities.''.
SEC. 509. REPORTS.
(a) Report on National Defense Reserve Fleet.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, and every 2 years thereafter, the
Maritime Administrator, in consultation with the Commander of
the United States Transportation Command and the Secretary of
the Navy, and in accordance with paragraph (2), shall submit to
the appropriate committees of Congress and the Maritime
Security Board a report--
(A) outlining a plan for using the shipbuilding
financial incentives program authorized under section
53801 of title 46, United States Code, as added by
section 501, and the financial incentive programs under
subpart C of subtitle V of title 46, United States
Code, to supplement the size and readiness of the
National Defense Reserve Fleet and to improve national
shipbuilding and shipping infrastructure; and
(B) describing ways in which an expanded and
creative view of the make-up of vessels with Voluntary
Intermodal Sealift Agreements or Voluntary Tanker
Agreements and the shipbuilding financial incentives
program authorized under such section can be used to
ensure government access to other vessels that are
critical to national security, such as icebreakers, oil
and natural gas tankers, floating dry docks, salvage
vessels, dredges, ocean tugs, offshore construction
vessels, multi-use workboats, and commercial shipping
vessels using small nuclear reactors.
(2) Additional consultation.--In preparing the report under
paragraph (1), the Maritime Administrator shall also consult
with the Secretary of Commerce and the Secretary of Energy with
respect to shipping vessels or mobile maritime power plants
using small nuclear reactors.
(b) Report on De-Risking Maritime Sector.--Not later than 180 days
after the date of enactment of this Act, and every 2 years thereafter,
the Secretary of Defense and the Secretary of Homeland Security, in
coordination with the Secretaries of Treasury and State, the Maritime
Administrator, the United States Trade Representative, and the Director
of the Office of Management and Budget, shall submit to the appropriate
committees of Congress and the Maritime Security Board a report
outlining a comprehensive strategy for de-risking the United States
maritime domain from the People's Republic of China and other
asymmetric or emerging maritime threats.
(c) Report on Restricting Flow of Capital to CCP.--Not later than
180 days after the date of enactment of this Act, the Secretary of
Transportation, the Secretary of Defense, the Secretary of Commerce,
the Secretary of State, and the Secretary of the Treasury shall submit
to the appropriate committees of Congress and the Maritime Security
Board a report on ways and means for restricting the flow of capital
from the United States to Chinese Communist Party maritime industries,
which shall include recommendations for promoting the flow of capital
within and between the United States and treaty allies of the United
States. The report shall also include a survey of banks, pension funds,
and large financial institutions, with recommendations for ways the
United States can incentivize domestic financial investments in the
maritime industry.
SEC. 510. EXPORT CONTROL REPORT.
Not later than 1 year after the date of enactment of this Act, the
Secretary of State and the Secretary of Commerce shall jointly submit
to Congress a report assessing methods to reduce the use of export
controls and other restrictions under the Arms Export Control Act (22
U.S.C. 2751 et seq.) and the International Traffic in Arms Regulations
under subchapter M of chapter I of title 22, Code of Federal
Regulations, and the Export Control Reform Act of 2018 (50 U.S.C. 4801
et seq.) and the Export 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 including shipbuilding for the Federal
Government, while ensuring appropriate safeguards for United States-
based firms and American workers.
Subtitle B--Department of Defense Programs
SEC. 511. ASSESSMENT OF THE USE OF COMMERCIAL BEST PRACTICES FOR NAVY
SHIPBUILDING.
(a) Assessment.--
(1) In general.--The Secretary of the Navy, in coordination
with the Secretary of Transportation and the Secretary of the
Department in which the Coast Guard is operating, shall--
(A) conduct an assessment of best practices used in
the construction and repair of commercial, oceangoing
maritime vessels; and
(B) identify--
(i) opportunities for the Navy and Coast
Guard to leverage those best practices to make
ship construction and repair efforts of
combatant and non-combatant vessels more
efficient; and
(ii) advanced technologies that can be
leveraged to improve the overall readiness and
dominance of the United States maritime fleet
(both commercial and military), to specifically
include small modular reactors for ship power
and propulsion.
(2) Elements.--The assessment required by paragraph (1)
shall include the following:
(A) An evaluation of the best practices described
in subparagraph (A) of such paragraph, including best
practices used by commercial shipyards in foreign
allied countries, consideration of commercial design
standards, and the vessel construction manager model
used to construct the National Security Multi Mission
Vessel Program, that could improve the efficiency of
shipbuilding and repair by the Navy and Coast Guard.
(B) An identification of commercial-grade
components and capabilities being used in state-of-the-
art commercial, oceangoing maritime vessels and an
assessment of whether the Navy and Coast Guard could
better use commercial off-the-shelf components or
capabilities to reduce costs, improve efficiencies, or
enhance capabilities in the construction of new naval
vessels and cutters, and in repair of naval vessels and
cutters.
(C) A determination as to whether shipbuilding and
acquisition programs of the Navy and Coast Guard use
modern best practices from the commercial maritime
industry in terms of contracting, ship design,
construction, overhaul, and maintenance.
(D) An identification of technologies and
procedures that are used in commercial shipbuilding
that, if used by the Navy and Coast Guard, would
improve the efficiency of designing and constructing
new naval vessels.
(E) An identification of technologies and
procedures that are used in commercial shipbuilding and
repair that, if used by the Navy and Coast Guard, would
improve the efficiency of repairing naval vessels.
(F) An identification of opportunities to improve
commonality in ship design, ship components, and
shipbuilding procedures between commercial, oceangoing
maritime vessels, naval vessels, and cutters that could
lead to improved efficiencies and a more resilient
industrial base to support shipbuilding and repair for
military and civil maritime vessels.
(G) An identification of advanced nuclear
technologies that are under development for use in
commercial shipbuilding that, if used by the Navy and
Coast Guard, would improve the operational capability
of naval vessels and cutters.
(H) An identification of the barriers preventing or
making prohibitive the use of small modular reactors in
naval or commercial, oceangoing maritime vessels,
including--
(i) ambiguity in regulations governing
nuclear propulsion restricting the commercial
maritime industry from utilizing nuclear
propulsion or collaborating between United
States and foreign entities under export
controls requirements, including section 744.5
of title 15, Code of Federal Regulations (or a
similar successor regulation); and
(ii) a lack of clarity in the meaning of
``maritime (civil) nuclear propulsion plant
projects'' contained in the Export
Administration Regulations and ``Naval Nuclear
Propulsion'' contained in the International
Traffic in Arms Regulations (Cat VI).
(I) An evaluation of education and technology
development best practices used by commercial shipyards
in foreign allied countries, and an identification of
education and technology development opportunities,
that could improve the efficiency of shipbuilding and
repair by the Navy and Coast Guard.
(J) An evaluation of whether adoption of the best
practices evaluated under subparagraph (A) for the
construction and repair of naval vessels and cutters
would support the domestic commercial maritime
shipbuilding industry, the commercial maritime
industrial base, and the merchant marine of the United
States.
(b) Briefing.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Navy shall provide to the
congressional defense committees a briefing on--
(1) the results of the assessment required by subsection
(a); and
(2) a plan to execute any measures pursuant to such
assessment.
(c) Strategy Required.--Not later than 1 year after the date of
enactment of this Act, and biennially thereafter, the Secretary of the
Navy and Secretary of the Department in which the Coast Guard is
operating shall--
(1) provide to the appropriate committees of Congress
strategies describing how measures identified as a result of
the assessment required by subsection (a) will be incorporated
into shipbuilding programs for the Navy and Coast Guard; and
(2) publish a public version of the strategies.
(d) Congressional Defense Committees Defined.--In this section, the
term ``congressional defense committees'' has the meaning given that
term in section 101(a) of title 10, United States Code.
SEC. 512. PLAN OF ACTION FOR USE OF DEFENSE PRODUCTION ACT OF 1950
AUTHORITIES.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the President shall submit to the appropriate
committees of Congress a report on a plan of action for any use of
authorities available under title III of the Defense Production Act of
1950 (50 U.S.C. 4531 et seq.)--
(1) to establish or enhance a domestic production
capability for the construction of militarily useful,
commercial maritime vessels that can be operated in foreign
commerce or the domestic commerce of the United States;
(2) to establish, improve, or enhance the defense shipyard
industrial base; or
(3) to establish, improve, or enhance maritime port
infrastructure of the United States, including containers and
ship-to-shore cranes that were built in the United States and
are owned by citizens of the United States.
(b) Coordination.--The President shall develop the plan of action
required by subsection (a) in consultation with--
(1) the maritime security advisor (as established by this
Act);
(2) the Maritime Security Board (as established by this
Act);
(3) an advisory committee established under section 708(d)
of the Defense Production Act of 1950 (50 U.S.C. 4558(d)); and
(4) such stakeholders in the private sector as the
President considers appropriate.
(c) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committee on Armed Services, the Committee on
Commerce, Science, and Transportation, and the Committee on
Appropriations of the Senate; and
(2) the Committee on Armed Services, the Committee on
Transportation and Infrastructure, and the Committee on
Appropriations of the House of Representatives.
SEC. 513. MILITARY SEALIFT COMMAND.
(a) Authority To Offer Increased Paid Leave Accrual.--The Secretary
of the Navy is authorized to offer government merchant mariners
employed by Military Sealift Command paid leave accrual at a faster
rate than provided pursuant to the standard General Schedule (GS)
system to make government seafaring jobs more competitive with the
commercial sector.
(b) Report on Recruiting and Retention Efforts.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of the Navy, in coordination with the Commander of
the Military Sealift Command and the Maritime Security Board,
and in consultation with the Commander of United States
Transportation Command, the Commander of United States Fleet
Forces Command, and the Assistant Secretary of the Navy for
Research, Development and Acquisition, shall submit to the
appropriate committees of Congress a report on efforts to
improve recruitment and retention of Military Sealift Command
Mariners.
(2) Elements.--The report required under paragraph (1)
shall consider--
(A) opportunities to enhance the integration of
Military Sealift Commander civilian mariners into the
military command structure;
(B) providing training on the roles and
significance of Military Sealift Command civilian
mariner workforce to relevant military commands; and
(C) authorities required to improve recruitment and
retention of civilian mariners in Military Sealift
Command.
(c) Report on Extending Charter Durations.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of the Navy
shall submit to the appropriate committees of Congress a report
assessing the merits of extending the maximum charter durations of
commercial and specialty vessels for the Military Sealift Command.
Subtitle C--Shipbuilding Innovation and Infrastructure
SEC. 521. UNITED STATES CENTER FOR MARITIME INNOVATION.
(a) In General.--Section 50307(e) of title 46, United States Code,
is amended--
(1) in paragraph (1), by inserting ``through the
establishment, management, and coordination of geographically
and topically diverse maritime incubators'' after ``maritime
transportation system''; and
(2) by striking paragraphs (2), (3), and (4), and inserting
the following:
``(2) Cooperative agreement.--The cooperative agreement
shall be with an organization or persons with substantial
experience in the maritime industry, as determined by the
Secretary, in consultation with the Maritime Security Board.
``(3) Selection.--The Center shall be--
``(A) selected through a competitive process of
eligible entities, and if a private entity, a domestic
entity;
``(B) based in the United States with technical
expertise in emerging marine technologies and practices
related to the maritime transportation system; and
``(C) located in close proximity to eligible
entities with expertise in United States emerging
maritime technologies and practices.
``(4) Coordination.--The Secretary of Transportation shall
coordinate with the Maritime Security Board and other agencies
critical for science, research, and regulation of emerging
marine technologies for the maritime sector, including the
Department of Defense, the Department of Energy, the
Environmental Protection Agency, the National Science
Foundation, the Coast Guard, the National Oceanic and
Atmospheric Association, and the Marine Board of the National
Academies when establishing the Center.
``(5) Responsibilities.--The Center shall carry out the
following activities:
``(A) Establish and support maritime incubators in
accordance with paragraph (6).
``(B) Accelerate the adoption or integration of
commercial technologies within the maritime industry to
transform the capacity and capabilities of the merchant
marine of the United States.
``(C) Serve as the principal liaison between the
Maritime Security Board and maritime incubators.
``(D) Carry out programs, projects, and other
activities to strengthen the merchant marine of the
United States and the maritime industrial base.
``(E) Coordinate and harmonize the activities of
other organizations and elements of the maritime
industry on matters relating to commercial
technologies, dual use technologies, and the innovation
of such technologies.
``(F) Coordinate and advise efforts among elements
of the maritime industry on matters relating to the
development, procurement, and fielding of
nontraditional capabilities and connect entities
developing those capabilities with the relevant
incubators.
``(G) Coordinate with maritime industry
stakeholders to identify operational challenges that
have the potential to be addressed through the use of
nontraditional capabilities, including dual-use
technologies that are being developed and financed in
the commercial sector.
``(H) Coordinate with maritime industry
stakeholders and relevant Federal agencies to enhance
the capacity and performance of seaports of the United
States, including through hardening security, enhancing
preparedness, and developing United States-based supply
chains for port technologies and equipment.
``(I) Coordinate with other research and
development programs and centers focused on modes of
transportation besides maritime to develop intermodal
interoperability with the maritime industry.
``(J) Develop a standard design for commercial
vessels and components and features of commercial
vessels to be manufactured in the United States, using
mature, proven designs, which--
``(i) includes, to the maximum extent
practicable, included parts, components, and
material manufactured in and sourced from the
United States;
``(ii) does not include any parts,
components, or materials manufactured by
foreign entities of concern or which are
produced in foreign countries of concern (as
such terms are defined in section 4 of the
SHIPS for America Act of 2025); and
``(iii) includes priorities for design
identified in consultation with the Secretary
of the Navy, as necessary for strategic
sealift, informed by requirements to sustain a
wartime economy and military operations.
``(K) Lead engagement with industry, academia,
labor organizations, and other nongovernmental entities
to develop--
``(i) innovative, commercial, and dual-use
manufacturing technologies and processes to
construct, rehabilitate, or repair maritime
vessels of the Armed Forces or the merchant
marine of the United States;
``(ii) additional naval architecture
programs at institutions of higher education in
the United States and to expand existing naval
architecture programs;
``(iii) next-generation propulsion
technologies for the merchant marine of the
United States, to include small modular
reactors, low-emission or carbon capture
propulsion technologies, and other renewable
energy solutions;
``(iv) new and innovative hardware,
software, and systems for remote or autonomous
operations at ports, intermodal facilities, or
aboard oceangoing vessels;
``(v) technology and infrastructure
solutions that enhance the safe operation of
oceangoing vessels to protect lives, property,
and the environment;
``(vi) solutions to recruit, train, and
retain a skilled workforce capable of
supporting a vibrant and growing United States
maritime industry; and
``(vii) the capacity of international
allies and partners of the United States, with
respect to manufacturing technologies and
processes, to construct, rehabilitate, or
repair maritime vessels.
``(L) Work with academic and private sector
response training centers and Centers of Excellence for
Domestic Maritime Workforce Training and Education to
develop maritime strategies and workforce development
plans applicable to various segments of the United
States maritime industry, including the inland, deep
water, and coastal fleets.
``(M) Establish programs and initiatives to share--
``(i) shipbuilding best practices and
maritime technology between vessels of the
Department of Defense and commercial vessels of
the United States; and
``(ii) port technology and logistics best
practices between the Department of Defense and
commercial port operators and port authorities
within the United States.
``(N) Carry out such other activities as the
Maritime Security Board determines appropriate.
``(6) Establishment of maritime incubators.--
``(A) Establishment.--The Center shall, in
consultation with the Maritime Security Board, seek
out, identify, and support the development of and
experimentation with commercial technologies that have
the potential to be implemented within the maritime
industry, through the establishment of a series of
maritime incubators.
``(B) Reflection.--Each incubator shall reflect the
unique nature of the region's capabilities and academic
and investor base.
``(C) Selection.--Incubators shall be--
``(i) selected through a competitive
process of eligible entities, and if a private
entity, a domestic entity;
``(ii) based in the United States with
technical expertise in emerging marine
technologies and practices related to the
maritime transportation system;
``(iii) based within a United States
maritime security investment zone as defined in
section 1400Z-3 of the Internal Revenue Code of
1986 (as added by section 708 of this Act); and
``(iv) topic-specific, according to
regional maritime expertise in United States
emerging maritime technologies and practices,
to include designated incubators focused on--
``(I) clean energy, carbon capture,
and alternative fuels;
``(II) ports and shoreside
infrastructure;
``(III) vessel design and naval
architecture;
``(IV) shipbuilding and next
generation manufacturing;
``(V) advanced materials for ship
construction; and
``(VI) other areas for maritime
innovation and technology, as
determined by the Center in
coordination with the Maritime Security
Board.
``(D) Incubator responsibilities.--Each maritime
incubator shall--
``(i) serve as the principal liaison
between the Center and individuals and entities
that can contribute to innovation within the
maritime industry, including other maritime
incubators under this subsection,
entrepreneurs, startups, commercial technology
companies, and venture capital sources; and
``(ii) establish and support multi-
stakeholder research and innovation
partnerships, as described in subparagraph (G).
``(E) Report.--Each incubator shall submit
quarterly activity and status reports to the Center.
``(F) Review and termination.--
``(i) In general.--The Maritime
Administrator may, in consultation with the
Maritime Security Board, terminate an agreement
with an eligible entity selected to lead a
maritime incubator if the Administrator
certifies that the eligible entity is failing
to meet the requirements of this section.
``(ii) Reselection.--If the Administrator
terminates an agreement with an eligible entity
to lead a maritime incubator, the Center shall
initiate a new selection process as required
under subparagraph (C) to select a new eligible
entity.
``(iii) Review of eligible entities.--Not
later than 5 years after the establishment of
maritime incubators under this paragraph, and
every 5 years thereafter, the Administrator, in
coordination with the Maritime Security Board,
shall conduct a review of all eligible entities
selected to lead a maritime incubator and
confirm the entity is adequately fulfilling the
requirements of this section.
``(G) Multi-stakeholder partnerships.--
``(i) In general.--The maritime incubators
established under this subsection shall
establish and support multi-stakeholder
research and innovation partnerships that--
``(I) have the potential to
generate technologies, processes,
products, or other solutions that
support the United States maritime
industry;
``(II) have as an objective the
technology transfer or
commercialization of the work product
generated by the partnership, which may
include work product that incorporates
intellectual property developed by the
Federal Government and licensed to the
partnership in accordance with clause
(iii); and
``(III) incentivize and expand
geographically diverse participation in
graduate and undergraduate institutions
of higher education, community college,
and other workforce programs relevant
to the maritime industry.
``(ii) Support provided.--Support provided
by the maritime incubator to a multi-
stakeholder research and innovation partnership
under this subsection may include--
``(I) providing funding or other
resources to the partnership;
``(II) participating in the
partnership;
``(III) providing technical and
technological advice and guidance to
the partnership;
``(IV) suggesting and introducing
other participants for inclusion in the
partnership;
``(V) providing the partnership
with insight into desired solutions for
defense and security needs;
``(VI) providing access to Ready
Reserve ships for testing new
technologies and conducting research,
as the maritime incubator determines
appropriate, in coordination with the
Center and the Administrator; and
``(VII) such other forms of support
as the Center, in consultation with
maritime incubators and Maritime
Security Board, determines appropriate.
``(iii) Availability of intellectual
property.--To the extent the Center determines
appropriate, the Center, in coordination with
the maritime incubators, shall seek to actively
inform potential participants in multi-
stakeholder research and innovation
partnerships of the availability of
intellectual property developed by the Federal
Government that may be licensed to the
partnership.
``(7) Report.--Not later than 180 days after the date of
enactment of the SHIPS for America Act of 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 section 50301(b) of this title,
$50,000,000 for each of fiscal years 2026 through 2035.
``(9) Definitions.--In this subsection:
``(A) Multi-stakeholder research and innovation
partnership.--The term `multi-stakeholder research and
innovation partnership' means a partnership composed of
any combination of 2 or more of the following:
``(i) Institutions of higher education (as
defined in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002)) with research and
innovation capability.
``(ii) Nonprofit organizations that provide
policy, research, outreach, operations,
organizational, management, testing,
evaluation, technology transfer, legal,
financial, or advocacy expertise.
``(iii) For-profit commercial enterprises
that may be publicly or privately owned, early
stage or mature, and incorporated or operating
by another ownership structure.
``(iv) Centers of excellence for domestic
maritime workforce training and education
(established under section 51706).
``(v) Maritime labor organizations.
``(vi) Departments or agencies of the
Federal Government with expertise, operations,
or resources related to the objectives of the
multi-stakeholder research and innovation
partnership.
``(vii) State maritime academies (as
defined in section 51102(4)).
``(viii) The United States Merchant Marine
Academy.
``(ix) National research laboratories with
expertise, operations, or resources related to
the objectives of the partnership.
``(x) Operators and users of vessels of the
University-National Oceanographic Laboratory
System.
``(B) Nontraditional capability.--The term
`nontraditional capability' means a solution to an
operational challenge that can significantly leverage
commercial innovation or external capital with minimal
dependencies on fielded systems.
``(C) Maritime industry.--The term `maritime
industry' includes--
``(i) shipbuilders and ship repair
facilities;
``(ii) ship owners;
``(iii) port operators;
``(iv) personnel of the merchant marine of
the United States;
``(v) manufacturers of equipment, software,
and technology instrumental to the facilitation
of maritime trade and commerce; and
``(vi) other members of the industrial base
that support the Navy or the merchant marine of
the United States.''.
(b) Transition.--A Center for Maritime Innovation established by
the Secretary of Transportation through a cooperative agreement
pursuant to section 50307 of title 46, United States Code, as of the
day before the date of enactment of this Act shall--
(1) be deemed to be the United States Center for Maritime
Innovation under section 50307 of title 46, United States Code,
as of the date of enactment of this Act, with all the
authorities granted by such section; and
(2) coordinate activities of the Center with the Maritime
Security Board pursuant to subsection (e)(4) of such section,
as amended by this Act.
SEC. 522. NATIONAL SHIPBUILDING RESEARCH PROGRAM.
Section 50105(c) of title 46, United States Code, is amended to
read as follows:
``(c) National Shipbuilding Research Program.--
``(1) In general.--The Maritime Administrator shall
establish and carry out, in coordination with the Secretary of
the Navy, the National Shipbuilding Research Program.
``(2) Purposes.--The purpose of the National Shipbuilding
Research Program shall be to develop plans for the economical
construction of vessels and their propelling machinery, of most
modern economical types, giving thorough consideration to all
well-recognized means of propulsion and taking into account the
benefits from standardized production where practicable and
desirable.
``(3) Activities.--The National Shipbuilding Research
Program shall--
``(A) support technology transfers and industry
networking;
``(B) select and execute research and development
projects, which may include--
``(i) advancing best practices in
shipbuilding and ship repair, including
alternative project management and project
financing arrangements for shipyards, such as
public-private financing;
``(ii) improving efficiency across the
shipyard industrial base of the United States;
and
``(iii) developing, maturing, and
implementing industry-relevant shipbuilding and
sustainment technologies;
``(C) carry out ad hoc initiatives focused on
specific target areas in shipbuilding and ship repair;
and
``(D) carry out additional activities as determined
by the Maritime Administrator or the Secretary of
Defense.''.
SEC. 523. ASSESSMENT ON MARITIME INFRASTRUCTURE READINESS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Maritime Administrator shall submit to
Congress a report on the status and resources and authorities needed to
execute and complete necessary vessels, harborcraft, port, shipyard,
and other infrastructure improvements to ensure the national security
interests of the United States and support the domestic and foreign
commerce of the United States.
(b) Contents.--The report under subsection (a) shall include--
(1) consideration of existing literature and reporting from
Federal and non-Federal sources;
(2) an assessment of the number of commercial shipping
vessels by class required to sustain a peace-time and wartime
national economy;
(3) an assessment of opportunities to leverage private
sector funding to enhance the capability of marine
infrastructure of the United States;
(4) an evaluation of future infrastructure needs to support
alternative fuels for vessels and harborcraft;
(5) an assessment of an ability to construct and repair
seaports and shipyards during national security emergencies,
including readiness to construct temporary facilities, and
carry out marine salvage and firefighting operations; and
(6) an evaluation of the possible effects on the commercial
operations of United States ports and other critical
infrastructure of prohibiting any entity that owns or operates
a port or terminal in the United States from using or sharing
data with--
(A) LOGINK;
(B) any logistics platform controlled by,
affiliated with, or subject to the jurisdiction of the
Chinese Communist Party or the Government of the
People's Republic of China; or
(C) any logistics platform that shares data with a
system described in subparagraph (A) or (B).
(c) Definitions.--
(1) Critical infrastructure.--The term ``critical
infrastructure'' has the meaning given the term in section
721(a) of the Defense Production Act of 1950 (50 U.S.C.
4565(a)).
(2) LOGINK.--The term ``LOGINK'' means the public, open,
shared logistics information network known as the National
Public Information Platform for Transportation and Logistics by
the Ministry of Transport of the People's Republic of China.
TITLE VI--WORKFORCE DEVELOPMENT
Subtitle A--Workforce Incentives
SEC. 601. PUBLIC SERVICE LOAN FORGIVENESS FOR MERCHANT MARINES.
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended--
(1) in paragraph (3)(B)(i), by inserting ``the United
States Merchant Marine (as described in paragraph (5)), a
United States shipyard,'' after ``law enforcement,''; and
(2) by adding at the end the following:
``(5) Full-time job in united states merchant marine.--For
purposes of loan cancellation under this subsection, a full-
time job in the United States Merchant Marine shall mean
possession of a Merchant Mariner Credential authorized by the
Coast Guard and employment on board a vessel of the United
States for not less than 150 days in a calendar year.''.
SEC. 602. ELIGIBILITY FOR EDUCATIONAL ASSISTANCE.
(a) In General.--Chapter 521 of title 46, United States Code, is
amended by adding at the end the following:
``Sec. 52102. Eligibility for educational assistance
``(a) Eligibility.--A covered individual shall be treated as an
individual described in section 3311(b)(1) of title 38, United States
Code, for purposes of entitlement to educational assistance under
chapter 33 of such title.
``(b) Covered Individual.--
``(1) In general.--In this section, the term `covered
individual' means an individual who--
``(A) served as a full-time, credentialed United
States Merchant Mariner for not less than 10 years;
``(B) as a result of such service received the
Merchant Marine Expeditionary Medal or another award
for service in a designated combat zone after the date
of enactment of this section; and
``(C) is not eligible under any other provision of
law for benefits under laws administered by the
Secretary of Veterans Affairs.
``(2) Full-time, credentialed united states merchant
mariner.--For purposes of paragraph (1), serving as a `full-
time, credentialed United States Merchant Mariner' means
possession of a Merchant Mariner Credential authorized by the
Coast Guard and employment on board a vessel of the United
States for not less than 150 days in a calendar year.
``(c) Reimbursement.--There is authorized to be appropriated to the
Secretary of Veterans Affairs such sums as may be necessary to carry
out this section from the Maritime Security Trust Fund established
under section 50301(b) of this title.''.
(b) Clerical Amendment.--The table of sections for chapter 521 of
title 46, United States Code, is amended by adding at the end the
following:
``52102. Eligibility for educational assistance.''.
SEC. 603. ELIGIBILITY OF MARINERS TO ATTEND NAVAL POSTGRADUATE SCHOOL.
(a) In General.--Section 8545 of title 10, United States Code, is
amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(3) The Secretary may permit an officer or unlicensed
mariner of the United States Merchant Marine to receive
instruction at the Naval Postgraduate School.'';
(2) in subsection (b)(1), by adding at the end the
following new sentence: ``The Secretary of Transportation shall
bear the cost of the instruction received by officers and
unlicensed mariners of the United States Merchant Marine
detailed for that instruction.''; and
(3) in subsection (c), by inserting ``, and officers and
unlicensed mariners of the United States Merchant Marine,''
after ``Coast Guard''.
(b) Report Required.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Transportation, in consultation
with the Secretary of Defense, shall submit to Congress a report
assessing what matters relating to military training it would be
beneficial for mariners to study at the Naval Postgraduate School.
SEC. 604. REIMBURSEMENT OF QUALIFYING SPOUSE RELICENSING COSTS AND
BUSINESS COSTS.
(a) In General.--Chapter 521 of title 46, United States Code, as
amended by section 602, is further amended by adding at the end the
following:
``Sec. 52103. Reimbursement of qualifying spouse relicensing costs and
business costs
``(a) In General.--The Secretary of Transportation shall establish
a program to reimburse an individual serving in the merchant marine of
the United States for qualified relicensing costs and qualified
business costs of the spouse of that individual when the individual
relocates to a new jurisdiction or geographic area as the result of a
reassignment as a result of service as a commissioned officer in the
Navy Reserve (including the Strategic Sealift Officer Program, Navy
Reserve), the Coast Guard Reserve, or any other reserve component of
the Armed Services of the United States.
``(b) Limitations.--
``(1) Relicensing.--Reimbursement provided to a member
under this subsection for qualified relicensing costs may not
exceed $1,000 in connection with each relocation described in
paragraph (1).
``(2) Business costs.--Reimbursement provided to a member
under this subsection for qualified business costs may not
exceed $1,000 in connection with each relocation described in
paragraph (1).
``(3) Deadline.--No reimbursement may be provided under
this subsection for qualified relicensing costs or qualified
business costs paid or incurred after December 31, 2035.
``(c) Qualified Relicensing Costs.--In this section, the term
`qualified relicensing costs' means costs, including exam, continuing
education courses, business license, permit, and registration fees,
incurred by the spouse of an individual serving in the merchant marine
of the United States if--
``(1) the spouse was licensed or certified in a profession,
or owned a business, during the individual's previous
assignment and requires a new professional license or
certification, or business license or permit, to engage in that
profession in a new jurisdiction because of the individual's
relocation described in paragraph (1); and
``(2) the costs were incurred or paid to secure or maintain
the professional license or certification, or business license
or permit, from the new jurisdiction in connection with such
relocation.
``(d) Qualified Business Costs.--In this section, the term
`qualified business costs' means costs, including moving services for
equipment, equipment removal, new equipment purchases, information
technology expenses, and inspection fees, incurred by the spouse of an
individual serving in the merchant marine of the United States if--
``(1) the spouse owned a business during the individual's
previous assignment and the costs result from the individual's
relocation described in paragraph (1); and
``(2) the costs were incurred or paid to move such business
to a new location in connection with such relocation.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of this title, to carry out this section, $500,000 for
each of fiscal years 2026 through 2035.'' .
(b) Clerical Amendment.--The table of sections for chapter 521 of
title 46, United States Code, as amended by section 602, is further
amended by adding at the end the following:
``52103. Reimbursement of qualifying spouse relicensing costs and
business costs.''.
SEC. 605. NONCOMPETITIVE ELIGIBILITY FOR FEDERAL EMPLOYMENT.
(a) Amendment.--Chapter 521 of title 46, United States Code, as
amended by sections 602 and 604, is amended by adding at the end the
following:
``Sec. 52104. Noncompetitive eligibility for Federal employment
``(a) Definition of Agency.--In this section, the term `agency'--
``(1) has the meaning given the term `Executive agency' in
section 105 of title 5, United States Code;
``(2) includes the United States Postal Service and the
Postal Regulatory Commission; and
``(3) does not include the Government Accountability
Office.
``(b) Appointment Authority.--The head of an agency may appoint
noncompetitively--
``(1) a graduate of the United States Merchant Marine
Academy who has met all of the requirements of their cadet
commitment agreement under section 51306 of title 46, United
States Code; or
``(2) a credentialed United States Merchant Mariner with an
officer or rating endorsement who has completed not less than 7
years of service aboard a vessel of the United States.''.
(b) Clerical Amendment.--The table of sections for chapter 521 of
title 46, United States Code, as amended by sections 602 and 604, is
amended by adding at the end the following:
``52104. Noncompetitive eligibility for Federal employment.''.
SEC. 606. UNITED STATES MERCHANT MARINE CAREER RETENTION PROGRAM.
(a) Sense of Congress.--It is the sense of Congress that--
(1) it takes years of training and experience, and costly
license trainings, to earn mariner qualifications;
(2) with just around 12,000 merchant mariners of the United
States operating oceangoing vessels, compared with China's more
than 1,700,000 seafarers, the United States may not have a
sufficient number of mariners to fully power the strategic
sealift vessels necessary in a future prolonged conflict;
(3) the United States requires a qualified workforce of
sufficient size that is ready and available to crew vessels of
the United States for national defense or national emergency;
and
(4) a workforce committed to take all measures possible to
expand, develop, and protect the domestic maritime workforce
should--
(A) support a retention program to permit
credentialed merchant mariners to maintain recency
through a coordinated Federal program, in coordination
with maritime labor organizations; and
(B) implement civil service, workplace, and hiring
protections.
(b) Amendment.--Chapter 521 of title 46, United States Code, as
amended by sections 602, 604, and 605, is further amended by adding at
the end the following:
``Sec. 52105. United States Merchant Marine Career Retention Program
``(a) Establishment.--The Maritime Administrator shall establish a
program, to be known as the `United States Merchant Marine Career
Retention Program', to ensure that a qualified workforce of sufficient
size is ready to crew strategic sealift vessels in the event of a
national defense or national emergency activation. Through the United
States Merchant Marine Career Retention Program, the Maritime
Administrator shall establish and administer mechanisms to register
merchant mariners and mariner employers to participate in the Program.
``(b) Implementation.--The Maritime Administrator shall--
``(1) appoint a board of directors to oversee the United
States Merchant Marine Career Retention Program;
``(2) appoint and facilitate a working group to recommend
policies, procedures, and a prioritization matrix for the
United States Merchant Marine Career Retention Program, which
shall be composed of representatives from major stakeholders,
including maritime labor organizations, credentialed United
States Merchant Mariners, vessel owners, vessel operators, the
United States Merchant Marine Academy, State maritime
academies, United States Military Sealift Command, and other
likely employers of members of the United States Merchant
Marine Career Retention Program; and
``(3) submit to Congress an annual evaluation of the United
States Merchant Marine Career Retention Program.
``(c) Membership in United States Merchant Marine Career Retention
Program.--
``(1) In general.--There shall be 2 paths to enrollment in
the United States Merchant Marine Career Retention Program as
described in paragraphs (2) and (3).
``(2) Members who work ashore who hold mariner
qualifications.--
``(A) Opportunities.--The United States Merchant
Marine Career Retention Program shall provide
individuals who hold Coast Guard issued mariner
qualifications who work ashore with an opportunity to
maintain, or potentially upgrade, their mariner
qualifications and credentials by--
``(i) providing qualified service at sea on
vessels of the United States; and
``(ii) participating in compulsory
training.
``(B) Structure.--The United States Merchant Marine
Career Retention Program shall be open for enrollment
to both licensed and unlicensed mariners and provide
members with an 8-3-1 schedule as follows:
``(i) 8 months shoreside employment.
``(ii) 3 months sailing employment designed
to ensure that members meet the minimum sea-
time requirement to maintain the credentials
required by the Standards of Training,
Certification, and Watchkeeping certification,
or, depending on mariner and employer
requirements, more frequent, but shorter-
duration sailing assignments.
``(iii) 1 month vacation, which is in
addition to vacation provided by the shoreside
employer.
``(C) Ashore employers.--
``(i) Employer obligations.--The employer
of a member of the United States Merchant
Marine Career Retention Program described under
this paragraph shall grant the member--
``(I) an unpaid leave of absence
for the duration of the member's
training, sailing, and vacation with
the United States Merchant Marine
Career Retention Program; and
``(II) the same or an equivalent
position with the employer when the
member returns from training, sailing,
or vacation with the United States
Merchant Marine Career Retention
Program.
``(D) Sea day assignments.--The United States
Merchant Marine Career Retention Program shall, with
respect to members described under this paragraph--
``(i) maintain records of each member's
qualifications, sea time, and availability, and
prioritize assignments on these and other
factors with the goal of maximizing the United
States Merchant Marine Career Retention Program
readiness to support strategic sealift;
``(ii) maintain a `job call' program office
that coordinates how jobs become available for
members from State maritime academies, vessel
operating companies, maritime labor
organizations, United States Military Sealift
Command, and other organizations responsible
for crewing vessels of the United States of
qualifying tonnage or horsepower;
``(iii) establish partnerships with State
maritime academies and the United States
Military Sealift Command that aim to establish
reliable crewing jobs with job cycles that
maximize the readiness of United States
Merchant Marine Career Retention Program;
``(iv) dispatch members to fill available
jobs, prioritizing maximizing readiness for
strategic sealift, taking into consideration
mariner availability and credentials, sea time
requirements to maintain merchant mariner
credentials, predicted program demand for
specific ratings, and expected expansion or
contraction of the program's membership; and
``(v) coordinate with vessel operators and
labor organizations to ensure that members in
the United States Merchant Marine Career
Retention Program are given opportunities to
fulfill their sea time and maintain the
credentials required by the Standards of
Training, Certification, and, Watchkeeping
certification.
``(E) USERRA protections.--Members of the United
States Merchant Marine Career Retention Program
described under this paragraph shall be entitled to
protections and obligations under chapter 43 of title
38 (commonly known as the `Uniformed Services
Employment and Reemployment Rights Act').
``(F) Requirement.--A member in the United States
Merchant Marine Career Retention Program described
under this paragraph may not fail to accept a sea day
assignment and remain in good standing with the
Program, unless a hardship exemption is provided by the
Maritime Administrator under subsection (e).
``(3) Members serving on foreign vessels.--
``(A) In general.--The United States Merchant
Marine Career Retention Program shall be open for
enrollment to individuals who--
``(i) hold Coast Guard issued merchant
mariner credentials required by the Standards
of Training, Certification, and Watchkeeping
Certification;
``(ii) have completed their service
obligations with respect to any previous
enrollment in a Federal or State maritime
academy, if applicable; and
``(iii) are serving on a foreign vessel (as
defined in section 110) that is not owned by a
foreign entity of concern (as that term is
defined in section 4 of the SHIPS for America
Act of 2025) or a vessel registered under a
registry of a foreign country of concern or
operated under the authority of a foreign
country of concern (as that term is defined in
such section 4).
``(B) Requirement.--Members of the United States
Merchant Marine Career Retention Program described
under this paragraph shall maintain--
``(i) Standards of Training, Certification,
and Watchkeeping Certification currency;
``(ii) a valid merchant mariner credential,
unlimited as to horsepower or tonnage, issued
by the United States Coast Guard as an officer
in the merchant marine of the United States,
accompanied by the appropriate national and
international endorsements and certifications
required by the Coast Guard for service aboard
vessels on domestic and international voyages,
without limitation;
``(iii) a valid transportation worker
identification credential;
``(iv) a Coast Guard medical certificate;
and
``(v) classes and certifications described
in subparagraph (C).
``(C) Certifications.--The Administrator shall
publish a list of classes and certifications required
for individuals described in subparagraph (A) to be
eligible for the United States Merchant Marine Career
Retention Program.
``(D) Rule of construction.--Nothing in
subparagraph (A) shall be construed to allow the United
States Coast Guard to prevent or delay a merchant
mariner who is otherwise eligible from attaining a more
advanced rank or credential for Merchant Mariners
sailing on foreign vessels.
``(E) USERRA protections.--Members of the United
States Merchant Marine Career Retention Program
described under this paragraph shall be entitled to
protections and obligations under chapter 43 of title
38 (commonly known as the `Uniformed Services
Employment and Reemployment Rights Act').
``(d) Enforcement.--The Maritime Administrator shall ensure all
members of the Merchant Marine Career Retention Program remain in good
standing with the requirements of the Program.
``(1) Enforcement.--Subject to paragraph (2), members found
to be in noncompliance with the requirements of the Program
shall--
``(A) have their reservist status terminated; and
``(B) forfeit the protections provided under
chapter 43 of title 38 (commonly known as the
`Uniformed Services Employment and Reemployment Rights
Act').
``(2) Exception.--In cases where the Maritime Administrator
determines a hardship exists, which prevents the mariner from
meeting the requirements of the Program, the requirements of
paragraph (1) shall not apply.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund established under
section 50301(b) of this title, to carry out this section, $2,000,000
for each of fiscal years 2025 through 2034.''.
(c) Clerical Amendment.--The table of sections for chapter 521 of
title 46, United States Code, as amended by sections 602, 604, and 605,
is amended by adding at the end the following:
``52105. United States Merchant Marine Career Retention Program.''.
Subtitle B--Workforce Pipeline
SEC. 611. MARITIME WORKFORCE PROMOTION AND RECRUITMENT.
Section 539A of the Servicemember Quality of Life Improvement and
National Defense Authorization Act for Fiscal Year 2025 (Public Law
118-159), is amended--
(1) in subsection (a), by striking ``the heads of such
other Federal agencies as the Secretary determines
appropriate'' and inserting ``the Maritime Security Board'';
and
(2) by amending subsection (f) to read as follows:
``(f) Authorization of Appropriations.--
``(1) Fiscal years 2025 through 2028.--There are authorized
to be appropriated out of the Maritime Security Trust Fund,
established under section 50301(b) of title 46, United States
Code, to the Secretary of the Navy, for each of fiscal years
2025 through 2028, $15,000,000 to carry out this section.
``(2) Fiscal years 2029 through 2034.--There are authorized
to be appropriated out of the Maritime Security Trust Fund,
established under section 50301(b) of title 46, United States
Code, to the Secretary of the Navy, for each of fiscal year
2029 through 2034, $25,000,000 to carry out this section.''.
SEC. 612. CENTERS OF EXCELLENCE FOR DOMESTIC MARITIME WORKFORCE
TRAINING AND EDUCATION.
Section 51706 of title 46, United States Code, is amended--
(1) in subsection (c)(1)(B)(iii), by striking ``nonprofit
entity'' and inserting ``entity''; and
(2) by adding to the end the following:
``(d) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of this title, to carry out this section, $25,000,000
for each of fiscal years 2026 through 2035.''.
SEC. 613. MARITIME CAREER AND TECHNICAL EDUCATION ADVISORY COMMITTEE.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Maritime Administrator.
(2) Advisory committee.--The term ``Advisory Committee''
means the Maritime Career and Technical Education Advisory
Committee established under subsection (b).
(b) Advisory Committee Plan and Establishment.--
(1) Plan.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall develop a plan,
and notify Congress of such plan, to establish a Maritime
Career and Technical Education Advisory Committee to--
(A) bring representatives of maritime industrial
base employers and education providers together to
identify joint opportunities to train needed workers
for maritime careers; and
(B) develop and disperse best practices and
recommendations for the improvement of shipbuilding
education and training programs, naval architecture
education programs, and merchant marine training and
certification programs.
(2) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall establish the
Advisory Committee.
(c) Membership.--
(1) Administrator.--The Advisory Committee shall include
the Administrator (or a delegate of the Administrator) who
shall serve as Chair of the Advisory Committee.
(2) Representatives.--The Advisory Committee shall be
composed of representatives from each of the following, to be
appointed the Administrator:
(A) Maritime education, including representatives
from--
(i) the Centers of Excellence for Domestic
Maritime Workforce Training and Education
designated by the Maritime Administration,
taking into consideration--
(I) geographic diversity;
(II) the rate of employment after
graduation;
(III) training or skillset
diversity; and
(IV) other qualities as determined
by the Administrator;
(ii) the United States Naval Sea Cadet
Corps;
(iii) kindergarten through grade 12
maritime education programs designated by the
Maritime Administration;
(iv) the oceanographic science community,
including from a University-National
Oceanographic Laboratory System institution;
and
(v) institutions of higher education.
(B) The maritime workforce, including
representatives from--
(i) skilled workers representing a wide
swath of the career and technical maritime
industry both onshore and offshore;
(ii) career and technical education
certified instructors; and
(iii) maritime labor organizations.
(C) Maritime industry, including representatives
from--
(i) shipbuilding, ship repair, and shipyard
industry stakeholders;
(ii) maritime industrial base coalitions;
(iii) shipping industry stakeholders; and
(iv) owners and operators of vessels of the
United States.
(D) Technical nonprofit organizations with
expertise in the maritime industry, including
representatives from--
(i) think tanks;
(ii) recognized classification societies;
and
(iii) professional societies.
(E) The Federal Government, including
representatives from--
(i) the Department of Education;
(ii) the Department of Labor;
(iii) the Department of Transportation;
(iv) the Department of the Navy;
(v) the United States Coast Guard;
(vi) the National Oceanic and Atmospheric
Administration;
(vii) the Army Corps of Engineers; and
(viii) the Federal Maritime Commission.
(F) Any other representatives that the Maritime
Administrator determines appropriate to appoint.
(d) Meetings.--
(1) In general.--The Advisory Committee shall meet not less
often than annually.
(2) Quorum established.--Two thirds of all members
appointed by the Administrator under subsection (c) shall
constitute a quorum for a meeting of the Advisory Committee.
(3) Working groups.--The Advisory Committee shall include
working groups that shall meet not less often than quarterly
each year.
(e) FACA.--Chapter 10 of title 5, United States Code, shall apply
to the Advisory Committee.
(f) Development of Curricula.--Consistent with the purposes of the
Advisory Committee established in subsection (b) and applicable law
(including regulations), the Advisory Committee shall recommend
curricula for key skills for maritime professionals and make such
curricula publicly available to institutions of higher education,
career and technical education schools, and State maritime academies.
(g) Reporting.--The Advisory Committee shall submit to the
appropriate committees of Congress and the Maritime Security Board and
publish on the website of the Maritime Administration, an annual report
that includes best practices and policy recommendations, as described
in subsection (b).
(h) Rule of Construction.--Nothing in this section shall be
construed to create new regulatory authority or supersede existing law
(including regulations) as of the day before the date of enactment of
this Act, relating to shipbuilding education and training programs,
naval architecture education programs, and merchant marine training and
certification programs.
SEC. 614. MILITARY CANDIDATES TO MARINER CAREERS RECRUITMENT EXCHANGE.
(a) Duties of Secretary of Defense.--The Secretary of Defense
shall--
(1) encourage and incentivize military recruiters to
recommend the United States Department of Transportation
Maritime Administration to potential recruits who do not
qualify for military service in the Armed Forces; and
(2) establish a mechanism for military recruiters to
introduce recruits described in paragraph (1) who are
interested in maritime service to representatives from the
Maritime Administration, in accordance with the procedures
established under subsection (b).
(b) Duties of the Maritime Administrator.--The Maritime
Administrator shall--
(1) establish a mechanism to receive recruitment referrals
from military recruiters;
(2) provide hand-off services to connect recruits with
educational resources and institutions, recognized Maritime
Centers of Excellence, eligible maritime industry employers,
and other maritime industry career services, as appropriate;
(3) track the number of referrals from the Department of
Defense; and
(4) track the number of recruits who enroll in maritime
industry programs, to the extent practicable.
(c) Reporting Requirement.--
(1) Briefing on the implementation strategy.--Not later
than 90 days after the date of enactment of this Act, the
Maritime Administrator, in coordination with the Secretary of
Defense, shall submit a briefing to the appropriate committees
of Congress about a strategy for implementing the activities
required under this section, including--
(A) a timeline for implementation; and
(B) the identification of the Department of Defense
recruiter incentives and training required for maximum
utility in carrying out such activities.
(2) Annual report on program efficacy.--One year after the
date of enactment of this Act, and annually thereafter, the
Maritime Administrator, in coordination with the Secretary of
Defense, shall submit a report to the appropriate committees of
Congress on the efficacy and utility of the activities carried
out under this section, including--
(A) the number of Department of Defense referrals
to the Maritime Administration;
(B) the number of Maritime Administration hand-offs
to the maritime industry;
(C) an assessment of the efficacy of the activities
carried out under this section; and
(D) challenges and recommendations relating to such
activities.
SEC. 615. MARITIME WORKER DATA COLLECTION.
(a) Publication of Report.--The Maritime Administrator shall
publish an biennial report on the state of the merchant mariner
workforce.
(b) Completion of Report.--The Maritime Administrator shall
complete the biennial report required under subsection (a) or enter
into a contract with another entity to complete the report.
(c) Content of Report.--The biennial report required under
subsection (a) shall include, at minimum--
(1) a count of United States Merchant Mariners with valid
merchant mariner credentials and credentials in continuity
endorsement;
(2) a count of inactive but credentialed and formerly
credentialed United States Merchant Mariners, to the extent
practicable, and an evaluation of--
(A) the challenges to identifying such individuals;
(B) opportunities to partner with Federal, State,
local, and non-government entities to identify such
individuals; and
(C) an action plan of how to implement the
opportunities described under subparagraph (B);
(3) a count of United States mariners and foreign workers
employed on vessels, rigs, platforms, and other vehicles or
structures off the coast of the United States and an evaluation
of the percentage of United States and foreign workers employed
on--
(A) coastwise-endorsed vessels; and
(B) vessels of the United States which do not have
a coastwise endorsement;
(4) a listing of actively operating vessels of the United
States;
(5) a report of merchant mariner requirements needed in the
event of a national defense sealift operation and any gaps
identified in quantity and quality, and other variables of
concern, as determined by the Administrator;
(6) a general outlook for the future of the merchant
mariner industry and potential gaps or surpluses of merchant
mariners;
(7) identification of any concerns in the credentialing of
merchant mariners, which may include general processing issues,
shortage of training providers or instructors, and barriers to
entry due to costs to the economically disadvantaged; and
(8) recommendations, based on data collected, on ways to--
(A) improve retention of existing merchant
mariners;
(B) create expedited pathways for mariners with
expired credentials to renew their credentials; and
(C) encourage new merchant mariners to enter the
industry.
(d) Accessibility of Data.--
(1) In general.--Except as provided in paragraph (2), the
Maritime Administrator, and any authorized agent of the
Maritime Administrator, shall have full access to available
Coast Guard mariner credentialing data, in a manner that
ensures the protection of personally identifiable information,
in order to complete the report required under subsection (a).
(2) Exception.--The Maritime Administrator, and any
authorized agent of the Maritime Administrator, may not have
access to confidential medical information pursuant to
paragraph (1).
(e) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of title 46, United States Code, to carry out this
section, $1,000,000 for each of the fiscal years 2026 through 2030.
SEC. 616. MILITARY TO MARITIME TRANSITION.
(a) Recommendations Required.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Defense, in
consultation with the Secretary of the Navy, the Secretary of the Air
Force, the Secretary of the Army, the Secretary of the department in
which the Coast Guard is operating, the Maritime Security Board, the
Department of Veterans Affairs, and the Department of Labor, shall
submit a report to the appropriate committees of Congress containing--
(1) recommendations about how to increase and improve
opportunities for transitioning servicemembers to secure
employment in the maritime industry at sea and shoreside; and
(2) a plan to implement those recommendations.
(b) Considerations.--In carrying out subsection (a), the Secretary
of Defense shall--
(1) identify barriers that servicemembers face when trying
to transition to the United States maritime industry, including
the merchant marines, shipbuilding, ship repair, and shipping;
(2) consider opportunities to improve, expedite, and
alleviate the burdens on servicemembers transitioning to the
maritime industry, including efforts to--
(A) inform transitioning servicemembers of
employment opportunities in the United States maritime
industry;
(B) assist transitioning servicemembers in
determining how their military credentials and
experience translate to credentialed civilian
employment in the maritime industry;
(C) increase the establishment and uptake of
accelerated or bridge programs to assist separating
members of the Armed Forces in translating military
credentials and experience into maritime industry
credentials and employment;
(D) increase the availability and accessibility of
preparatory activities under the SkillBridge program
established under section 1143(e) of title 10, United
States Code, in the United States maritime industry;
(E) incorporate the maritime industry in the
Transition Assistance Program, as described in chapter
58 of title 10, United States Code; and
(F) enhance the activities carried out pursuant to
the Military to Mariners Act of 2022 (section 11514 of
division K of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-
263)); and
(3) specifically consider the transition of servicemembers
to employment in the shipbuilding and ship repair maritime
industries.
SEC. 617. EARLY MARITIME EDUCATION AND YOUTH INVOLVEMENT.
(a) Secretary of the Navy Budget Request.--In the Secretary of the
Navy's annual budget submission to Congress, the Secretary of the Navy
shall include, as a distinct item, the funding request for the United
States Naval Sea Cadet Corps.
(b) Engagement With Elementary School and Secondary School
Students.--The Maritime Administrator shall encourage designated
Centers of Excellence for Domestic Maritime Workforce Training and
Education to engage with students in kindergarten through grade 12.
SEC. 618. INTERNATIONAL SCHOLARSHIP FOR MARINER AND NAVAL ARCHITECTURE
EXCHANGES.
(a) In General.--The Maritime Administrator shall establish an
international exchange program for mariners, naval architects, and
marine engineers between the United States and countries described in
subsection (b).
(b) Eligible Participants.--In carrying out the program under this
section, the Administrator shall limit participation to United States
citizens and citizens of--
(1) member countries of NATO;
(2) treaty allies of the United States; and
(3) major non-NATO allies of the United States.
(c) Placements.--In carrying out the program under this section,
the Administrator shall seek corporate and government partners for
placement of eligible participants of the program.
(d) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of title 46, United States Code, $2,000,000 to carry
out this section for each of fiscal years 2026 through 2035.
Subtitle C--United States Merchant Marine Academy and State Maritime
Academies
SEC. 621. AUTHORIZATION OF APPROPRIATIONS FOR UNITED STATES MERCHANT
MARINE ACADEMY INFRASTRUCTURE AND FACILITIES
MODERNIZATION.
(a) Findings.--Congress finds the following:
(1) The United States Merchant Marine Academy plays a
critical role in training service-obligated licensed merchant
mariners to operate commercial vessels, in peacetime and during
times of conflict.
(2) The United States Merchant Marine Academy is 1 of the 5
Federal service academies and plays a critical role in
maintaining a domestic, commercial maritime industry, with each
graduate having a commitment to serve not less than 8 years in
the foreign and domestic commerce and the national defense of
the United States, which may include service on a merchant
vessel documented under chapter 121 of title 46, and graduates
make up more than 80 percent of the United States Navy's
Strategic Sealift Officer Program.
(3) The United States defense readiness and economic
security relies on a strong investment in training and
cultivating United States Merchant Marine officers at the
United States Merchant Marine Academy.
(4) Most of the facilities at the United States Merchant
Marine Academy date back to the Academy's founding, have not
been modernized since, and are not conducive to the immersive
training and demanding coursework today's Midshipmen are
required to complete.
(5) Rehabilitating and modernizing the campus
infrastructure at the United States Merchant Marine Academy is
necessary to ensuring current and future generations of
Midshipmen receive a first-class education.
(b) Sense of the Senate.--It is the sense of the Senate--
(1) to ensure that the United States continues to have a
sufficient number of service-obligated licensed merchant
mariners to meet current and future economic and national
security needs, the Maritime Administration and the Department
of Transportation have a responsibility to provide suitable
academic, training, and dormitory facilities at the United
States Merchant Marine Academy by rapidly implementing a
comprehensive plan for campus-wide modernization in accordance
with section 51329 of title 46, United States Code, (referred
to in this section as the ``Campus Modernization Plan'') and
providing sufficient accountability and oversight to ensure
that milestones in such plan are met;
(2) in developing the comprehensive Campus Modernization
Plan for the United States Merchant Marine Academy, the
Maritime Administration, and the Department of Transportation
should utilize, to the maximum extent practicable, the
``Merchant Marine Academy Full Speed Ahead Plan'' developed by
the Maritime Security Infrastructure Council as summarized in
the Congressional Record, dated February 28, 2024;
(3) given the conditions of the United States Merchant
Marine Academy as of the date of enactment of this section, a
comprehensive, campus-wide modernization is needed to
significantly upgrade or replace facilities throughout the
campus; and
(4) the Maritime Administration and the Department of
Transportation should identify opportunities to utilize design-
build contracts to increase delivery times and reduce costs.
(c) Campus Modernization Plan.--Chapter 513 of title 46, United
States Code, is amended by adding at the end the following:
``Sec. 51329. 10-year Campus Modernization Plan
``(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary shall develop and begin to
implement a comprehensive Campus Modernization Plan (referred to in
this section as the `Campus Modernization Plan'), informed by the
`United States Merchant Marine Academy Full Speed Ahead Plan' developed
by the Maritime Security Infrastructure Council as summarized in the
Congressional Record, dated February 28, 2024, to carry out a campus-
wide modernization at the United States Merchant Marine Academy.
``(b) Objectives.--In carrying out the Campus Modernization Plan
authorized under subsection (a), the Administrator shall prioritize the
following objectives:
``(1) Promoting modern education best practices by
constructing learning facilities that leverage state-of-the art
technologies and learning best practices.
``(2) Providing Midshipmen with access to facilities needed
to pass the United States Coast Guard License Exam for Third
Mate or Third Assistant Engineer Unlimited.
``(3) Ensuring Midshipmen have access to facilities
sufficient to enable Midshipmen to maintain physical readiness
standards required of United States Navy officers.
``(4) Developing campus infrastructure to ensure the
Academy attracts a diverse pool of applicants.
``(5) Providing facilities that enable industry engagement
and continuing education opportunities.
``(6) Maintaining a safe and secure campus environment for
all Midshipmen, which shall include any facilities or
infrastructure needed to meet the requirements of sections
51326, 51327, or 51328 of this title.
``(7) Implementing, to the extent practicable, the
facilities and infrastructure recommendations in chapter 4 of
the report titled `Organizational Assessment of the United
States Merchant Marine Academy: A Path Forward' issued by the
National Academy of Public Administration in November 2021.
``(c) Inclusions.--In meeting the objectives of subsection (b), the
Campus Modernization Plan authorized under subsection (a) shall
include--
``(1) construction of new facilities or significant
renovation of existing facilities to provide--
``(A) Standards of Training, Certification, and
Watchkeeping applications laboratories;
``(B) a Safety Of Life At Sea training pool;
``(C) engineering powerplant laboratories;
``(D) athletic facilities that meet the needs of
both male and female students;
``(E) enhanced waterfront facilities, to include a
new pier;
``(F) a visitor welcome center and main campus
security office building;
``(G) housing facilities for senior staff and
faculty; and
``(H) sufficient parking facilities for faculty,
staff, and campus visitors;
``(2) upgrades to all classrooms and laboratories with
modern information technology infrastructure;
``(3) a campus-wide upgrade and retrofit of--
``(A) the electric distribution power grid;
``(B) the sanitary sewer system piping;
``(C) the storm drainage system; and
``(D) the drinking water system, including
development of a separate and redundant fire
suppression system; and
``(4) renovations of existing campus facilities to ensure
all campus facilities--
``(A) are structurally sound;
``(B) have reliable heating and air conditioning
systems;
``(C) have functioning plumbing and electrical
systems;
``(D) are protected from the elements, including
through roof replacements and window repairs or
replacements, as needed;
``(E) are accessible in accordance with the
Americans with Disabilities Act of 1990; and
``(F) have working fire alarm and fire suppression
systems.
``(d) Requirements.--For the duration of the Campus Modernization
Plan authorized under subsection (a), the Administrator shall ensure
that the Academy remains fully operational.
``(e) Use of a Federal Construction Agent.--Consistent with the
requirements of section 3515(d)(3) of the James M. Inhofe National
Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263),
the Administrator shall seek to enter into an agreement with a Federal
construction agent to carry out the Campus Modernization Plan
authorized under subsection (a).
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Department of Transportation, out of the Maritime
Security Trust Fund established under section 50301(b) of this title,
for fiscal years 2026 through 2035, for the phased rehabilitation,
modernization, and construction of facilities and infrastructure at the
United States Merchant Marine Academy, in accordance with this section,
including the Campus Modernization Plan authorized in subsection (a),
$1,020,000,000 of which--
``(1) $54,000,000 is authorized to be appropriated for
fiscal year 2026 for design and planning purposes, which shall
be used for the development of a design-build plan for the
phased rehabilitation, modernization, and construction of
facilities and infrastructure at the United States Merchant
Marine Academy in accordance with the Campus Modernization
Plan; and
``(2) for fiscal years 2027 through 2035, $107,333,333 is
authorized to be appropriated for each year for construction
and contingency purchases necessary to execute the Campus
Modernization Plan.''.
(d) Clerical Amendment.--The table of sections for chapter 513 of
title 46, United States Code, is amended by adding at the end the
following:
``51329. 10-Year Campus Modernization Plan.''.
SEC. 622. UNITED STATES MERCHANT MARINE ACADEMY.
(a) Sense of Congress.--It is the sense of Congress that--
(1) the United States Merchant Marine Academy, one of our
Nation's 5 Federal service academies, is vital to our national
security, and modernizing the Academy's aging infrastructure
and investing in faculty and students must be congressional
priorities;
(2) sufficient funding must be provided to enable the
maximum student enrollment that the campus infrastructure of
the United States Merchant Marine Academy can support; and
(3) considering the Academy's role as a co-equal military
service academy, the United States Merchant Marine Academy
should be included in the rotation of presidential attendance
at graduations.
(b) Authorization of Appropriations.--Section 51301 of title 46,
United States Code, is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Department of Transportation out of the Maritime
Security Trust Fund established under section 50301(b) of this title,
$125,000,000 for each of fiscal years 2026 through 2035 for Academy
operations.''.
(c) Report on Enrollment.--Not later than 180 days after the date
of enactment of this Act, the Maritime Administrator shall submit a
report to the appropriate committees of Congress identifying the
additional resources needed to increase enrollment at the United States
Merchant Marine Academy.
SEC. 623. RETIREMENT SERVICE CREDIT FOR SERVICE AS A MIDSHIPMAN AT THE
UNITED STATES MERCHANT MARINE ACADEMY.
(a) Civil Service Retirement System.--Section 8331(13) of title 5,
United States Code, is amended, in the flush text following
subparagraph (C), by inserting ``or the United States Merchant Marine
Academy'' after ``Naval Academy''.
(b) Federal Employees' Retirement System.--Section 8401(31) of
title 5, United States Code, is amended, in the flush text following
subparagraph (C), by inserting ``or the United States Merchant Marine
Academy'' after ``Naval Academy''.
(c) Applicability.--The amendments made by this section shall apply
to--
(1) any annuity, the eligibility for which is based on a
separation occurring before, on, or after the date of enactment
of this Act; and
(2) any period of service as a midshipman at the United
States Merchant Marine Academy occurring before, on, or after
the date of enactment of this Act.
SEC. 624. STATE MARITIME ACADEMIES.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Maritime Administrator shall submit a report to
Congress containing the results of a study to evaluate the additional
resources needed to allow State maritime academies to increase
enrollment and produce additional mariners.
(b) Need for Additional State Maritime Academies.--Such study shall
consider whether there is a need for additional State maritime
academies in States that do not operate a maritime academy.
(c) Authorization of Appropriations.--Section 51501 of title 46,
United States Code, is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund established under
section 50301(b) of this title, $10,000,000 for assistance to State
maritime academies under subsection (a) for each of fiscal years 2026
through 2035.''.
SEC. 625. ENFORCEMENT OF SERVICE OBLIGATION REQUIREMENTS.
(a) In General.--The Maritime Administrator shall ensure that--
(1) each citizen who is appointed as a cadet at the United
States Merchant Marine Academy and signs a cadet commitment
agreement under section 51306 of title 46, United States Code,
meets the service obligation requirements of that agreement;
and
(2) each individual that signs a student incentive payment
agreement under section 51509 of title 46, United States Code,
meets the service obligation requirements under that agreement.
(b) Reporting Requirement.--The Maritime Administrator shall
establish an electronic system through which each individual with a
service obligation under such section 51306 or 51509 (referred to in
this section as a ``service-obligated mariner'') shall annually
demonstrate that they are meeting their service obligation or have a
valid deferment consistent with section 51310 of title 46, United
States Code, or section 51510 of title 46, United States Code, as
applicable.
(c) Notification of Violation.--The Maritime Administrator shall
transmit a written notice to each service-obligated mariner who fails
to meet the reporting requirement of subsection (b), notifying such
individual of the applicable penalties established under section 51306
of title 46, United States Code, or section 51509 of title 46, United
States Code, for failure to carry out the applicable service
requirements, including cost recovery.
(d) Report to Congress.--Not later than 180 days after the date of
enactment of this section, and annually thereafter, the Maritime
Administrator shall submit to the appropriate committees of Congress a
report on the status of all service-obligated mariners, which shall
include--
(1) information about how each service-obligated mariner is
meeting their service obligation requirement, which shall be
based on the results of the data collected under subsection
(b);
(2) the number of service-obligated mariners who have not
met their service obligation and have not complied with the
reporting requirement under subsection (b); and
(3) the number of actions taken by the Maritime
Administrator under sections 51306(b), 51306(d), 51306(f), and
51509(g) to recover costs from service-obligated mariners who
have not demonstrated that they have met their service
obligation requirements.
SEC. 626. FUEL FUNDING FOR TRAINING SHIPS OPERATED BY STATE MARITIME
ACADEMIES.
(a) Conforming Amendment.--Section 51504 of title 46, United States
Code, is amended by striking subsection (f) and inserting the
following:
``(f) Fuel Costs.--Subject to the availability of appropriations,
the Secretary shall pay to each State maritime academy the costs of
fuel used by a vessel provided under this section while used for
training in accordance with section 51512.''.
(b) Amendment.--Chapter 515 of title 46, United States Code, is
amended by adding at the end the following:
``Sec. 51512. Funding for training ships operated by State maritime
academies
``(a) Fuel Funding.--
``(1) In general.--Subject to the availability of
appropriations, the Secretary shall pay to each State maritime
academy the costs of fuel used by a vessel that is loaned to
the State maritime academy in accordance with section 51504
while used for training.
``(2) Maximum amounts.--The amount of the payment to a
State maritime academy under subsection (a) may not exceed
$20,000,000 for each of fiscal years 2026 through 2035.
``(3) Prohibition.--Maritime academies that receive funding
under subsection (a) may not--
``(A) profit from charging cadets to go to sea for
their licensing when using federally provided fuel; or
``(B) utilize the vessel as housing for students
outside of seasonal training cruises, unless students
elect voluntarily to live aboard the vessel.
``(4) Requirement.--Each State maritime academy that
receives fuel costs under this section shall offer billets for
liaison officers from each military service during the time
such vessel is provided to that State maritime academy.
``(b) Crew.--
``(1) In general.--Each State maritime academy shall make
crew positions available on a vessel that is loaned to the
State maritime academy for mariners enrolled in the United
States Merchant Marine Career Retention Program established
under section 52105.
``(2) Crew funding.--For each crew slot filled by a mariner
enrolled in the career retention program, as provided for under
paragraph (1), the Secretary shall pay the crew costs for that
mariner, subject to the availability of appropriations.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of this title, $120,000,000 to carry out this section
for each of fiscal years 2026 through 2035.''.
(c) Clerical Amendment.--The table of sections for chapter 515 of
title 46, United States Code, is amended by adding at the end the
following:
``51512. Fuel funding for training ships operated by State maritime
academies.''.
SEC. 627. STATE MARITIME ACADEMY SEA TERM SCHOLARSHIP PROGRAMS.
(a) In General.--Chapter 515 of title 46, United States Code, as
amended by section 627, is further amended by adding at the end the
following:
``Sec. 51513. State Maritime Academy Sea Term Scholarship Programs
``(a) In General.--The Maritime Administrator shall work with
private entities in the maritime industry to establish a scholarship
program--
``(1) for students at State maritime academies to offset
expenses associated with completion of a summer sea term to
receive sea-time required to earn a Coast Guard license; and
``(2) which is entirely or predominantly funded through
contributions from a private entity.
``(b) Contributed Funds.--The Maritime Administrator shall enter
into a cooperative agreement, or other agreement, with private entities
in the maritime industry to accept funding from private entities for
the purpose of establishing such a scholarship program. The cooperative
agreement may include any terms considered necessary by the Maritime
Administrator.
``(c) Privileges.--The Maritime Administrator may provide certain
privileges to a private entity who contributes funds for a scholarship
program under this section, including opportunities to provide
information about employment opportunities with the private entity to
students enrolled in the scholarship program.
``(d) Structure.--In establishing a scholarship program to offset
expenses associated with a summer sea term--
``(1) the Maritime Administrator may enter into an
agreement with a student at a State maritime academy that has
an agreement with the Secretary of Transportation under section
51505 of this title, to offset expenses associated with
completion of a summer sea term; or
``(2) the Maritime Administrator may enter into an
agreement with a State maritime academy that has an agreement
with the Secretary of Transportation under section 51505 of
this title, to offset expenses for all students who participate
in a summer sea term program.
``(e) Relationship to Financial Assistance Programs.--Recognizing
the need for licensed merchant mariners, the Maritime Administrator
shall encourage participants of the financial assistance programs under
part C of this subtitle, to enter into agreements under this section to
establish scholarship programs to offset expenses associated with
summer sea term.
``(f) Requirements for Students.--Any student who benefits from a
scholarship program under this section shall enter into an agreement
with the Maritime Administrator which requires the student to--
``(1) complete the course of instruction at the academy the
individual is attending;
``(2) obtain a merchant mariner license, without limitation
as to tonnage or horsepower, from the Coast Guard as an officer
in the merchant marine of the United States, accompanied by the
appropriate national and international endorsements and
certification required by the Coast Guard for service aboard
vessels on domestic and international voyages, without
limitation, within 3 months of completion of the course of
instruction at the academy the individual is attending;
``(3) serve in a position that supports the foreign and
domestic commerce and the national defense of the United States
for at least 1 year after graduation from the academy--
``(A) as a merchant marine officer on a documented
vessel or a vessel owned and operated by the United
States Government or by a State; or
``(B) as a commissioned officer on active duty in
an Armed Force of the United States, as a commissioned
officer in the National Oceanic and Atmospheric
Administration, or in other maritime-related Federal
employment which serves the national security interests
of the United States, as determined by the Maritime
Administrator; and
``(4) report to the Maritime Administrator on compliance
with this subsection.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of this title, $2,500,000 to carry out this section
for each of fiscal years 2026 through 2035.''.
(b) Clerical Amendment.--The table of sections for chapter 515 of
title 46, United States Code, as amended by section 627, is further
amended by adding at the end the following:
``51513. State Maritime Academy Sea Term Scholarship Programs.''.
SEC. 628. NAVAL JOINT EXERCISE INVOLVEMENT FOR TRAINING SHIPS OPERATED
BY STATE MARITIME ACADEMIES.
(a) In General.--The Secretary of the Navy, in coordination with
the Maritime Administrator, shall, to the extent practicable, include
in national and international maritime warfare exercises not less than
1 training vessel used by a State maritime academy and maintained
pursuant to section 51504 of title 46, United States Code, in order to
provide an opportunity to integrate merchant mariners with naval and
military operations.
(b) Participants.--Subject to guidance issued by the Secretary of
the Navy and Maritime Administrator, an individual may participate in
the exercise aboard that training ship if the individual is--
(1) a licensed merchant mariner; or
(2) a student from the United States Merchant Marine
Academy, a State maritime academy, a Center of Excellence for
Domestic Maritime Workforce Training and Education, or a
merchant marine center established under section 147 of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3197), as
added by section 612 of this Act.
(c) Priority.--In selecting participants under subsection (b) the
Administrator shall give priority to students described in paragraph
(2) of subsection (b).
(d) Vessels.--In coordination with the Secretary of the Navy, the
Maritime Administrator shall rotate training vessels to ensure that
each training vessel described in subsection (a) has an equal
opportunity to participate in such exercises.
Subtitle D--Maritime Credentialing Modernization
SEC. 631. MERCHANT MARINER CREDENTIALING MODERNIZATION.
(a) Merchant Mariner Credentialing Modernization.--The Secretary of
the department in which the Coast Guard is operating shall carry out
necessary system and process changes to carry out the activities
described in paragraphs (1) through (4).
(1) Licensing, certification, and documentation database.--
Replacement of the merchant mariner licensing, certification,
and documentation database such that the database allows for--
(A) the electronic submission of merchant mariner
credential applications (including sea service,
professional qualifications, course completion data,
safety and suitability, and medical records) and course
approval requests;
(B) direct submission of sea service information
from employers and course completion data from training
providers and other stakeholders to provide data
securely and directly so that documentation does not
need to be submitted later by the merchant mariner; and
(C) the electronic processing and evaluation of
information for the issuance of credentials and course
approvals, including the capability for the Secretary
to complete remote evaluation of the information
submitted.
(2) System for data exchange.--Implementation of a system
that provides for the exchange of data with government agencies
and industry stakeholders, which provides the Maritime
Administration and other agencies, as appropriate, anonymized
and aggregated data showing the following:
(A) The total amount of sea service for individuals
with a valid merchant mariner credential.
(B) The number of credentialed mariners by
individual rating and the capability to filter data by
endorsements.
(C) Demographic information, including age, gender,
ethnicity, and address or location.
(D) National Maritime Center processing times.
(E) The number of Coast Guard approved training
providers, and, for each such training provider, the
number of courses taken by individuals who have, or who
are applying for, a merchant mariner credential from
that training provider.
(3) Public facing portal.--Implementation of a system that
includes a public facing portal in the .gov domain instead of
the .mil domain to accept merchant mariner applicant
information, including credential applications, course
completion data, and course approval requests, that complies
with the requirements for cybersecurity and privacy information
of electronic systems in the .gov domain.
(4) Examination processes.--Upgrading the examination
processes for merchant mariner examinations, by--
(A) implementing an examination regime that
provides for electronic and third party administration
of examinations;
(B) reassessing the content of tests through the
development of job task analysis for all credentials;
and
(C) implementing a robust system to analyze
examination data.
(b) Report.--The Secretary of the department in which the Coast
Guard is operating shall submit--
(1) an annual report to the Committee on Commerce, Science,
and Transportation, the Committee on Appropriations, and the
Committee on Armed Services of the Senate, and the Committee on
Transportation and Infrastructure, the Committee on
Appropriations, and the Committee on Armed Services of the
House of Representatives, on the progress of the system and
process changes required under subsection (a); and
(2) a final report to those Committees 1 year after full
operating capability of the complete system, comprised of all 4
systems required under subsection (a).
(c) Authorization of Appropriations.--There is authorized to be
appropriated out of the Maritime Security Trust Fund, established under
section 50301(b) of title 46, United States Code, to carry out this
section, $20,000,000 for fiscal year 2026, to remain available until
expended.
SEC. 632. REVISING MERCHANT MARINER DECK TRAINING REQUIREMENTS.
(a) General Definitions.--Section 2101 of title 46, United States
Code, is amended--
(1) by redesignating paragraphs (20) through (56) as
paragraphs (21) through (57), respectively; and
(2) by inserting after paragraph (19) the following:
``(20) `merchant mariner credential' means a merchant
mariner license, certificate, or document that the Secretary is
authorized to issue pursuant to this title.''.
(b) Examinations.--Section 7116 of title 46, United States Code, is
amended by striking subsection (c).
(c) Merchant Mariners Documents.--
(1) General requirements.--Section 7306 of title 46, United
States Code, is amended to read as follows:
``Sec. 7306. General requirements and classifications for members of
deck departments
``(a) In General.--The Secretary may issue a merchant mariner
credential, to members of the deck department in the following classes:
``(1) Able Seaman-Unlimited.
``(2) Able Seaman-Limited.
``(3) Able Seaman-Special.
``(4) Able Seaman-Offshore Supply Vessels.
``(5) Able Seaman-Sail.
``(6) Able Seaman-Fishing Industry.
``(7) Ordinary Seaman.
``(b) Classification of Credentials.--The Secretary may classify
the merchant mariner credential issued under subsection (a) based on--
``(1) the tonnage and means of propulsion of vessels;
``(2) the waters on which vessels are to be operated; or
``(3) other appropriate standards.
``(c) Considerations.--In issuing the credential under subsection
(a), the Secretary may consider the following qualifications of the
merchant mariner:
``(1) Age.
``(2) Character.
``(3) Habits of life.
``(4) Experience.
``(5) Professional qualifications demonstrated by
satisfactory completion of applicable examinations or other
educational requirements.
``(6) Physical condition, including sight and hearing.
``(7) Other requirements established by the Secretary,
including career patterns and service appropriate to the
particular service, industry, or job functions the individual
is engaged.''.
(2) Clerical amendment.--The table of sections for chapter
73 of title 46, United States Code, is amended by striking the
item relating to section 7306 and inserting the following:
``7306. General requirements and classifications for members of deck
departments.''.
(3) General requirements for members of engine
departments.--Section 7313(b) of title 46, United States Code,
is amended by striking ``and coal passer''.
(4) Training.--Section 7315 of title 46, United States
Code, is amended--
(A) by amending subsection (a) to read as follows:
``(a) Graduation from a nautical school program approved by the
Secretary may be substituted for the service requirements under
sections 7307 through 7311a and 7314.'';
(B) in subsection (b)--
(i) by striking ``one-third'' and inserting
``one-half''; and
(ii) by striking ``7307-7311 of this
title'' and inserting ``7307-7311a and 7314'';
and
(C) by striking subsection (c).
(d) Reduction of Lengths of Certain Periods of Service.--
(1) In general.--Title 46, United States Code, is amended--
(A) in section 7307, by striking ``3 years'' and
inserting ``18 months'';
(B) in section 7308, by striking ``18 months'' and
inserting ``12 months''; and
(C) in section 7309, by striking ``12 months'' and
inserting ``6 months''.
(2) Temporary reduction of lengths of certain periods of
service.--Section 3534(j) of the National Defense Authorization
Act for Fiscal Year 2024 (Public Law 118-31) is repealed.
(e) Merchant Mariner Credentials.--Section 7510 of title 46, United
States Code, is amended by striking subsection (d).
(f) Implementation.--The Secretary of the department in which the
Coast Guard is operating shall implement the amended requirements under
subsections (c)(3), (c)(4), and (d)(1) of this section without regard
to chapters 5 and 6 of title 5, United States Code, and Executive
Orders 12866 and 13563 (5 U.S.C. 601 note).
SEC. 633. INSPECTIONS FOR TRANSPORTATION SECURITY.
(a) In General.--Chapter 81 of part F of subtitle II of title 46,
United States Code, is amended by adding at the end the following:
``Sec. 8109. Inspections for transportation security
``(a) In General.--
``(1) Inspection.--The Secretary shall periodically, but
not less than once annually, inspect each covered facility to
verify that the owner or operator of the covered facility has a
valid exemption under subsection (c) of section 30 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1356(c)).
``(2) Covered facility.--In this subsection, the term
`covered facility' means a vessel, rig, platform, or other
vehicle or structure that, but for an exemption under
subsection (c) of section 30 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1356(c)) would otherwise be subject to the
regulations under subsection (a)(3) of such section.
``(b) Transportation Security Card.--During an inspection under
this section, the Secretary shall confirm that all crew members that
are required to have a transportation worker identification credential
pursuant to section 70105 have such a credential.''.
(b) Clerical Amendment.--The table of sections for chapter 81 of
title 46, United States Code, is amended by adding at the end the
following:
``8109. Inspections for transportation security.''.
SEC. 634. RENEWAL OF MERCHANT MARINER LICENSES AND DOCUMENTS.
Section 7507 of title 46, United States Code, is amended by adding
at the end the following:
``(d) Renewal.--With respect to any renewal of a valid merchant
mariner credential issued under this part that is not an extension
under subsection (a) or (b), the validity period of such credential
shall begin the day after the expiration of the current credential.''.
SEC. 635. MERCHANT SEAMEN LICENSES, CERTIFICATES, AND DOCUMENTS;
MANNING OF VESSELS.
(a) Citizenship or Noncitizen Nationality.--
(1) In general.--Section 7102 of title 46, United States
Code, is amended--
(A) in the section heading, by inserting ``or
noncitizen nationality'' after ``Citizenship''; and
(B) by inserting ``or noncitizen nationals (as such
term is described in section 308 of the Immigration and
Nationality Act (8 U.S.C. 1408))'' after ``citizens of
the United States''.
(2) Clerical amendment.--The table of sections for chapter
71 of title 46, United States Code, is amended by striking the
item relating to section 7102 and inserting the following:
``7102. Citizenship or noncitizen nationality.''.
(b) Citizenship or Noncitizen Nationality Notation on Merchant
Mariners' Documents.--
(1) In general.--Section 7304 of title 46, United States
Code, is amended--
(A) in the section heading, by inserting ``or
noncitizen nationality'' after ``Citizenship''; and
(B) by inserting ``or noncitizen national (as such
term is described in section 308 of the Immigration and
Nationality Act (8 U.S.C. 1408))'' after ``citizen of
the United States''.
(2) Clerical amendment.--The table of sections for chapter
73 of title 46, United States Code, is amended by striking the
item relating to section 7304 and inserting the following:
``7304. Citizenship or noncitizen nationality notation on merchant
mariners' documents.''.
(c) Citizenship or Noncitizen Nationality.--
(1) In general.--Section 8103 of title 46, United States
Code, is amended--
(A) in the section heading by inserting ``or
noncitizen nationality'' after ``Citizenship'';
(B) in subsection (a), by inserting ``or noncitizen
national'' after ``citizen of the United States'';
(C) in subsection (b)--
(i) in paragraph (1)(A)(i), by inserting
``or noncitizen national'' after ``citizen of
the United States''; and
(ii) in paragraph (3)--
(I) in the matter preceding
subparagraph (A), by inserting ``or
noncitizen nationality'' after
``citizenship''; and
(II) in subparagraph (C), by
inserting ``or noncitizen nationals''
after ``citizens of the United
States'';
(D) in subsection (c), by inserting ``or noncitizen
nationals'' after ``citizens of the United States'';
(E) in subsection (d)--
(i) in paragraph (1), by inserting ``or
noncitizen nationals'' after ``citizens of the
United States''; and
(ii) in paragraph (2), by inserting ``or
noncitizen national'' after ``citizen of the
United States'' each place it appears;
(F) in subsection (e), in the matter preceding
paragraph (1), by inserting ``or noncitizen national''
after ``citizen of the United States'' each place it
appears;
(G) in subsection (i)(1)(A), by inserting ``or
noncitizen national'' after ``citizen of the United
States'';
(H) in subsection (k)(1)(A), by inserting ``or
noncitizen national'' after ``citizen of the United
States''; and
(I) by adding at the end the following:
``(l) Noncitizen National Defined.--In this section, the term
`noncitizen national' means an individual described in section 308 of
the Immigration and Nationality Act (8 U.S.C. 1408).''.
(2) Clerical amendment.--The table of sections for chapter
81 of title 46, United States Code, is amended by striking the
item relating to section 8103 and inserting the following:
``8103. Citizenship or noncitizen nationality and Navy Reserve
requirements.''.
(d) Command of Documented Vessels.--Section 12131(a) of title 46,
United States Code, is amended by inserting ``or noncitizen national
(as such term is described in section 308 of the Immigration and
Nationality Act (8 U.S.C. 1408))'' after ``citizen of the United
States''.
(e) Invalidation of Certificates of Documentation.--Section
12135(2) of title 46, United States Code, is amended by inserting ``or
noncitizen national (as such term is described in section 308 of the
Immigration and Nationality Act (8 U.S.C. 1408))'' after ``citizen of
the United States''.
SEC. 636. REACTIVATION OF EXPIRED LICENSE.
(a) In General.--Chapter 75 of subtitle II of part E, of title 46,
United States Code, is amended by adding at the end the following:
``Sec. 7512. Authority for reactivation of United States Merchant
Mariner credentials
``(a) Licenses and Certificates of Registry.--Notwithstanding
sections 7106 and 7107, the Secretary of the department in which the
Coast Guard is operating may renew for not more than 2 years an expired
license or certificate of registry issued for an individual under
chapter 71 if the Secretary determines that the renewal is in response
to a national emergency declared by Congress or declared under section
201 of the National Emergencies Act (50 U.S.C. 1621), as deemed
necessary by the Secretary.
``(b) Merchant Mariner Documents.--Notwithstanding section 7302(g),
the Secretary may renew for not more than 2 years an expiring merchant
mariner's document issued for an individual under chapter 73 if the
Secretary determines that the renewal is in response to a national
emergency proclaimed by the President or declared by Congress, as
deemed necessary by the Secretary.
``(c) Manner of Renewal.--Any renewal granted under this section
may be granted to individual seamen or a specifically identified group
of seamen.''.
(b) Clerical Amendment.--The table of sections for chapter 75 of
title 46, United States Code, is amended by adding at the end the
following:
``7512. Authority for reactivation of United States Merchant Mariner
credentials.''.
TITLE VII--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
SEC. 701. UNITED STATES VESSEL INVESTMENT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``SEC. 48F. UNITED STATES VESSEL INVESTMENT CREDIT.
``(a) In General.--For purposes of section 46, the United States
Vessel Investment credit for any taxable year is an amount equal to the
applicable percentage of any qualified investment for such taxable year
with respect to any qualified vessel.
``(b) Applicable Percentage.--For purposes of subsection (a), the
applicable percentage with respect to any qualified vessel shall be an
amount equal to the sum of--
``(1) 33 percent, plus
``(2) in the case of any qualified vessel for which the
owner of such vessel will, as part of the agreement described
in subsection (d)(1)(F) and for the duration of such agreement,
obtain protection and indemnity insurance with respect to such
vessel from an insurance company that is domiciled and
headquartered in the United States and is an underwriter that
is approved by the Maritime Administrator, 5 percent, plus
``(3) in the case of any qualified vessel which is
classified by and designed in accordance with the rules of the
American Bureau of Shipping or any other classification society
headquartered in the United States and recognized by the
Secretary of the department in which the Coast Guard is
operating in accordance with section 3316 of title 46, United
States Code, 2 percent.
``(c) Qualified Investment.--For purposes of subsection (a), the
qualified investment with respect to any qualified vessel is equal to
the amount paid or incurred by the taxpayer in connection with the
construction, repowering, or reconstruction of such vessel--
``(1) in a shipyard of the United States, and
``(2) by an entity which is not a foreign entity of
concern.
``(d) Qualified Vessel.--
``(1) In general.--For purposes of this section, the term
`qualified vessel' means a cargo vessel--
``(A) which is a United States flag vessel (as
defined in section 1355),
``(B) which, in the case of any repowering or
reconstruction of such vessel, was originally
constructed in the United States,
``(C) which operates in providing transportation in
the United States foreign trade (as such term is
defined in section 1355(a)),
``(D) which is not a passenger vessel, as defined
in section 2101 of title 46, United States Code,
``(E) which is--
``(i) a bulk carrier vessel,
``(ii) a tanker vessel,
``(iii) a roll-on/roll-off vessel,
``(iv) a container vessel,
``(v) a multi-purpose vessel,
``(vi) a cable vessel,
``(vii) a heavy-lift vessel, or
``(viii) any other type of vessel
determined appropriate by the Maritime
Administrator, in consultation with the
Maritime Security Board,
``(F) which, pursuant to an agreement between the
taxpayer and the Maritime Administrator, operates as a
vessel of the United States for a period of not less
than 10 years,
``(G) which 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
otherwise entered into a voluntary agreement and plan
of action with the Administrator of the Maritime
Administration as authorized under section 708(c) of
the Defense Production Act of 1950 (50 U.S.C. 4558(c)),
and
``(H) the construction of which begins before
January 1, 2033.
``(2) Exclusion related to foreign entities of concern.--
The term `qualified vessel' shall not include a vessel which--
``(A) is, or was previously, owned or operated by a
foreign entity of concern,
``(B) was constructed, repowered, or reconstructed
in a shipyard which is owned or operated by a foreign
entity of concern, or
``(C) was registered as a vessel of a foreign
country of concern at any time prior to being placed in
service by the taxpayer.
``(e) Definitions.--
``(1) Vessels.--For purposes of subsection (d)(1)(E), any
term used in such paragraph which is also used in chapter 536
of title 46, United States Code, shall have the same meaning as
when used in such chapter.
``(2) Foreign entity of concern; foreign country of
concern.--For purposes of this section, the terms `foreign
entity of concern' and `foreign country of concern' have the
same meaning given such terms under section 4 of the
Shipbuilding and Harbor Infrastructure for Prosperity and
Security for America Act of 2025.
``(f) Certain Progress Expenditure Rules Made Applicable.--Rules
similar to the rules of subsections (c)(4) and (d) of section 46 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes of subsection (a).
``(g) Regulations.--The Secretary, in consultation with the
Maritime Administrator, shall issue such regulations or other guidance
as may be necessary or appropriate to carry out the purposes of this
section, including any regulations or guidance which may be necessary
or appropriate to recapture the benefit of any credit determined under
this section with respect to any qualified vessel, or any increase in
the applicable percentage under subsection (b) with respect to any
qualified vessel, in the case of any taxpayer which fails to comply
with the terms of the agreement described in subsection (d)(1)(F) with
respect to such qualified vessel.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986, as
amended by section 13702(b)(1) of Public Law 117-169, is
amended--
(A) in paragraph (6), by striking ``and'' at the
end,
(B) in paragraph (7), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(8) the United States Vessel Investment credit.''.
(2) Section 49(a)(1)(C) of such Code, as amended by section
13702(b)(2) of Public Law 117-169, is amended--
(A) in clause (vii), by striking ``and'' at the
end,
(B) in clause (viii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(ix) with respect to any qualified vessel
(as defined in section 48F(d)), the portion of
the basis of such vessel attributable to
amounts paid or incurred by the taxpayer in
connection with the construction, repowering,
or reconstruction of such vessel.''.
(3) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48E the following new item:
``Sec. 48F. United States Vessel Investment credit.''.
(c) Recapture for Failure To Operate as a Vessel of the United
States.--Section 50(a) of the Internal Revenue Code of 1986 is
amended--
(1) in paragraph (4), by striking ``or any applicable
transaction to which paragraph (3)(A) applies'' and inserting
``any applicable transaction to which paragraph (3)(A) applies,
or any violation to which paragraph (6)(A) applies'',
(2) by redesignating paragraph (6) as paragraph (7),
(3) by inserting after paragraph (5) the following new
paragraph:
``(6) Failure to operate qualified vessel as a vessel of
the united states.--
``(A) In general.--If an applicable taxpayer
violates any of the requirements of the agreement
described in section 48F(d)(1)(F) during the duration
of such agreement with respect to any investment credit
property which is eligible for the United States Vessel
Investment credit under section 48F(a), then the tax
under this chapter for the taxable year in which such
violation occurs shall be increased by 100 percent of
the aggregate decrease in the credits allowed under
section 38 for all prior taxable years which would have
resulted solely from reducing to zero any credit
determined under section 46 which is attributable to
the United States Vessel Investment credit under
section 48F(a) with respect to such property.
``(B) Exception.--Subparagraph (A) shall not apply
if the applicable taxpayer demonstrates to the
satisfaction of the Secretary and the Maritime
Administrator that the taxpayer is in compliance with
the agreement described in section 48F(d)(1)(F) within
30 days of a determination and notice by the Secretary.
``(C) Regulations and guidance.--The Secretary
shall issue such regulations or other guidance as the
Secretary determines necessary or appropriate to carry
out the purposes of this paragraph, including
regulations or other guidance which provide for
requirements for recordkeeping or information reporting
for purposes of administering the requirements of this
paragraph.'', and
(4) in paragraph (7) (as redesignated by paragraph (2))--
(A) in subparagraph (C), by striking ``or (3)'' and
inserting ``(3), or (4)'', and
(B) by striking subparagraph (E) and inserting the
following:
``(E) Applicable taxpayer.--For purposes of this
subsection, the term `applicable taxpayer' means any
taxpayer who has been allowed--
``(i) for purposes of paragraph (3), a
credit under section 48D(a) for any prior
taxable year, or
``(ii) for purposes of paragraph (6), a
credit under section 48F(a) for any prior
taxable year.''.
(d) Elective Payment and Transfer of Credit.--
(1) Elective payment.--Section 6417 of the Internal Revenue
Code of 1986 is amended--
(A) in subsection (b), by adding at the end the
following:
``(13) The United States Vessel Investment credit under
section 48F.'', and
(B) in subsection (d)(1)--
(i) in subparagraph (E), by striking ``(C),
or (D)'' each place it appears and inserting
``(C), (D), or (E)'',
(ii) by redesignating subparagraph (E) (as
amended by clause (i)) as subparagraph (F), and
(iii) by inserting after subparagraph (D)
the following:
``(E) Election with respect to united states vessel
investment credit.--If a taxpayer other than an entity
described in subparagraph (A) makes an election under
this subparagraph with respect to any taxable year in
which such taxpayer has made a qualified investment
with respect to any qualified vessel (as defined in
section 48F), such taxpayer shall be treated as an
applicable entity for purposes of this section for such
taxable year, but only with respect to the credit
described in subsection (b)(13).''.
(2) Transfer.--Section 6418(f)(1)(A) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following:
``(xii) The United States Vessel Investment
credit under section 48F.''.
(e) Exception Relating to Alternative Tax on Qualifying Shipping
Activities.--Section 1357(c) of the Internal Revenue Code of 1986 is
amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraph (2) or (4)'', and
(2) by adding at the end the following:
``(4) Exception for united states vessel investment
credit.--Paragraph (1) shall not apply with respect to any
credit allowed to the taxpayer under section 48F.''.
(f) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2025.
SEC. 702. CERTAIN PAYMENTS FOR MARITIME SECURITY EXCLUDED FROM GROSS
INCOME.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139I the following new subsection:
``SEC. 139J. MARITIME SECURITY PAYMENTS.
``(a) In General.--Gross income shall not include any payment made
pursuant to--
``(1) section 53106 of title 46, United States Code,
``(2) section 53801 of such title,
``(3) section 53206 of such title,
``(4) section 53406 of such title,
``(5) section 53604 of such title,
``(6) section 54101 of such title, or
``(7) section 54301 of such title.
``(b) Denial of Double Benefit.--No deduction or credit shall be
allowed for, or by reason of, any expenditure to the extent of the
amount excluded under subsection (a) for any payment which was provided
with respect to such expenditure. The adjusted basis of any property
shall be reduced by the amount excluded under subsection (a) which was
provided with respect to such property.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 139I the following new item:
``Sec. 139J. Maritime security payments.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 703. ELIMINATION OF 30-DAY LIMITATION ON DOMESTIC OPERATIONS.
(a) In General.--Section 1355 of the Internal Revenue Code of 1986
is amended--
(1) in subsection (f), by striking paragraph (4), and
(2) in subsection (g)(2), by striking subparagraph (D).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of enactment of this
Act.
SEC. 704. QUALIFYING SHIPPING ACTIVITIES.
Section 1356(b) of the Internal Revenue Code of 1986 (relating to
qualifying shipping activities) is amended by striking ``activities in
operating'' and inserting ``the carriage of goods (as defined in
section 1 of the Carriage of Goods by Sea Act (46 U.S.C. 30701 note))
by''.
SEC. 705. QUALIFYING VESSEL.
Section 1355(a) of the Internal Revenue Code of 1986 is amended--
(1) by striking paragraph (4) and inserting the following:
``(4) Qualifying vessel.--The term `qualifying vessel'
means a vessel which is--
``(A) self-propelled (or a combination self-
propelled and non-self-propelled),
``(B) a United States flag vessel or a United
States-owned foreign flag vessel,
``(C) either--
``(i) a vessel designed primarily for use
on the high seas which has a draft of more than
12 feet, or
``(ii) not less than 6,000 deadweight tons,
and
``(D) used exclusively in the United States foreign
trade during the period that the election under this
subchapter is in effect.'', and
(2) by adding at the end the following:
``(8) United states-owned foreign flag vessel.--The term
`United States-owned foreign flag vessel' means any vessel
which--
``(A) is documented under the laws of a country
(other than the United States) or a foreign registry
which is not a foreign country of concern (as defined
by section 4 of the Shipbuilding and Harbor
Infrastructure for Prosperity and Security for America
Act of 2025),
``(B) is owned by a person which--
``(i)(I) is a citizen of the United States
(as determined under section 50501 of title 46,
United States Code), or
``(II) is controlled (within the meaning of
section 954(d)(3)) by a citizen of the United
States (as so determined), and
``(ii) owns a fleet of United States flag
vessels,
``(C) is strategically and commercially managed
from within the United States, and
``(D) 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 otherwise entered
into a voluntary agreement and plan of action with the
Maritime Administrator as authorized under section
708(c) of the Defense Production Act of 1950 (50 U.S.C.
4558(c)).''.
SEC. 706. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by section 701(a), is
amended by inserting after section 48F the following new section:
``SEC. 48G. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.
``(a) In General.--For purposes of section 46, the shipyard
investment tax credit for any taxable year is an amount equal to 25
percent of the qualified investment for such taxable year with respect
to any qualified shipyard facility of a taxpayer described in section
48D(c)(1).
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any qualified shipyard
facility for any taxable year is the basis of any qualified
property placed in service by the taxpayer during such taxable
year which is part of a qualified shipyard facility.
``(2) Qualified property.--The term `qualified property'
shall have the same meaning given such term in section
48D(b)(2), except that subparagraph (A)(iv) of such section
shall be applied by substituting `qualified shipyard facility'
for `advanced manufacturing facility'.
``(3) Qualified shipyard facility.--For purposes of this
section, the term `qualified shipyard facility' means a
facility--
``(A) which is located within the United States
(including any territory or possession of the United
States), and
``(B) for which the primary purpose is--
``(i) constructing or repairing commercial
or military oceangoing vessels,
``(ii) manufacturing components which are
critical (as determined by the Secretary, in
consultation with the Secretary of the Navy and
the Maritime Administrator) to the operation of
commercial or military oceangoing vessels, or
``(iii) manufacturing equipment which is
used to produce or repair commercial or
military oceangoing vessels.
``(4) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of subsection (a).
``(c) Denial of Double Benefit.--This section shall not apply to
any property placed in service by the taxpayer during the taxable year
if a credit was allowed under section 48F to such taxpayer during such
taxable year.
``(d) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.
``(e) Termination of Credit.--The credit allowed under this section
shall not apply to property placed in service after December 31,
2032.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986, as
amended by section 701(b)(1), is amended--
(A) in paragraph (7), by striking ``and'' at the
end,
(B) in paragraph (8), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(9) the shipyard investment tax credit.''.
(2) Section 49(a)(1)(C) of such Code, as amended by section
701(b)(2), is amended--
(A) in clause (viii), by striking ``and'' at the
end,
(B) in clause (ix), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(x) the basis of any qualified property
(as defined in subsection (b)(2) of section
48G) which is part of a qualified shipyard
facility (as defined in subsection (b)(3) of
such section).''.
(3) Section 50(a)(2)(E) of such Code, as amended by section
13702(b) of Public Law 117-169, is amended by striking ``or
48E(e)'' and inserting ``48E(e), or 48G(b)(4)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code, as amended by section
701(b)(3), is amended by inserting after the item relating to
section 48F the following new item:
``Sec. 48G. Shipyard investment tax credit.''.
(c) Elective Payment and Transfer of Credit.--
(1) Elective payment.--Section 6417 of the Internal Revenue
Code of 1986, as amended by section 701, is amended--
(A) in subsection (b), by adding at the end the
following:
``(14) The shipyard investment tax credit under section
48G.'', and
(B) in subsection (d)(1)--
(i) in subparagraph (F), by striking ``(D),
or (E)'' each place it appears and inserting
``(D), (E), or (F)'',
(ii) by redesignating subparagraph (F) (as
amended by clause (i)) as subparagraph (G), and
(iii) by inserting after subparagraph (E)
the following:
``(F) Election with respect to the shipyard
investment tax credit.--If a taxpayer other than an
entity described in subparagraph (A) makes an election
under this subparagraph with respect to any taxable
year in which such taxpayer has placed in service any
qualified property which is part of a qualified
shipyard facility (as defined in section 48G), such
taxpayer shall be treated as an applicable entity for
purposes of this section for such taxable year, but
only with respect to the credit described in subsection
(b)(14).''.
(2) Transfer.--Section 6418(f)(1)(A) of the Internal
Revenue Code of 1986, as amended by section 701, is amended by
adding at the end the following:
``(xiii) The shipyard investment tax credit
under section 48G.''.
(d) Exception Relating to Alternative Tax on Qualifying Shipping
Activities.--Paragraph (4) of section 1357(c) of the Internal Revenue
Code of 1986, section 701(e), is amended to read as follows:
``(4) Exception for united states vessel investment credit
and shipyard investment tax credit.--Paragraph (1) shall not
apply with respect to any credit allowed to the taxpayer under
section 48F or 48G.''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2025.
SEC. 707. TAX INCENTIVES RELATING TO MERCHANT MARINE CAPITAL
CONSTRUCTION FUNDS.
(a) In General.--Section 7518 of the Internal Revenue Code of 1986
is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--The amount deposited in a fund
established under chapter 535 of title 46 of the United States
Code (hereinafter in this section referred to as a `capital
construction fund') for a taxable year may not exceed the
amount specified in the agreement under section 53503(a) of
such title, which shall be an amount that is related to a
commitment to invest the revenue from the capital construction
fund into funding the construction of new vessels or funding
cargo handling equipment.'',
(B) in paragraph (2), by striking ``paragraph
(1)(B)'' each place it appears and inserting
``paragraph (1)'', and
(C) by adding at the end the following new
paragraph:
``(4) Revenue.--For the purposes of paragraph (1), the
revenue from the capital construction fund may include--
``(A) income attributable to the operation of any
agreement vessel in foreign commerce or domestic trade
or fisheries or the operation of a marine terminal in
the United States,
``(B) the net proceeds from the disposition of an
agreement vessel or cargo handling equipment or
insurance or indemnity attributable to the vessel or
cargo handling equipment,
``(C) the receipts from the investment or
reinvestment of amounts held in the fund, and
``(D) the amount allowable as a deduction under
section 167 for the taxable year with respect to the
agreement vessels or cargo handling equipment.'',
(2) in subsection (b)(2), by striking ``Amounts in any
capital construction fund'' and all that follows through ``(not
in excess of 60 percent)'' and inserting ``An agreed
percentage'',
(3) in subsection (e)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--A qualified withdrawal from the fund is
one made in accordance with the terms of the agreement but only
if it is for--
``(A) the acquisition, construction, repowering, or
reconstruction of--
``(i) a qualified vessel or a barge or
container that is part of the complement of a
qualified vessel, or
``(ii) cargo handling equipment, or
``(B) the payment of the principal on indebtedness
incurred in the acquisition, construction, repowering,
or reconstruction of--
``(i) a qualified vessel or a barge or
container that is part of the complement of a
qualified vessel, or
``(ii) cargo handling equipment.
Except to the extent provided in regulations prescribed
by the Secretary, subparagraph (A), and so much of
subparagraph (B) as relates only to barges and
containers, shall apply only with respect to barges and
containers constructed in the United States.'',
(B) by redesignating paragraph (2) as paragraph
(4), and
(C) by inserting after paragraph (1) the following:
``(2) Fully automated cargo handling equipment.--No
withdrawals may be made from a capital construction fund to
purchase fully automated cargo handling equipment that is
remotely operated or remotely monitored with or without the
exercise of human intervention or control, if the Secretary
determines such equipment would result in a net loss of jobs
within a marine terminal.
``(3) Prohibition on people's republic of china cranes.--No
withdrawals may be made from a capital construction fund to
purchase cranes manufactured in the People's Republic of
China.'',
(4) in subsection (f)--
(A) in paragraph (2), by inserting ``cargo handling
equipment,'' after ``barge,'' both places the term
appears,
(B) in paragraph (3), by inserting ``cargo handling
equipment,'' after ``barge,'' both places the term
appears, and
(C) in paragraph (4), by inserting ``cargo handling
equipment,'' after ``barges,'',
(5) in subsection (g)--
(A) in the flush matter at the end of paragraph
(2), by inserting ``cargo handling equipment,'' after
``advanced'', and
(B) in paragraph (5)(A)--
(i) in the heading, by striking ``25
years'' and inserting ``15 years'',
(ii) by striking ``26th, 27th, 28th, 29th,
or 30th taxable year'' and inserting
``following specified taxable year'', and
(iii) by striking the table contained
therein and inserting the following:
``If the amount remains in the fund The applicable percentage is-
at the close of the-
16th taxable year.................................. 20 percent
17th taxable year.................................. 40 percent
18th taxable year.................................. 60 percent
19th taxable year.................................. 80 percent
20th taxable year............................100 percent'', and
(6) in subsection (i), by striking ``as in effect on the
date of the enactment of this section''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 708. EXEMPTION OF STUDENT INCENTIVE PAYMENT AGREEMENTS FROM GROSS
INCOME.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986, as amended by section 702, is further
amended by inserting after section 139J the following new section:
``SEC. 139K. STUDENT INCENTIVE PAYMENT AGREEMENTS.
``In the case of an individual who has entered into an agreement
described in section 51509 of title 46, United States Code, gross
income does not include any student incentive payments made to such
individual pursuant to such agreement.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986, as
amended by section 702, is further amended by inserting after the item
relating to section 139J the following new item:
``Sec. 139K. Student incentive payment agreements.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to payments made after December 31, 2025.
SEC. 709. MARITIME FUEL TAX PARITY.
(a) In General.--Section 4041(g) of the Internal Revenue Code of
1986 is amended by adding at the end the following new sentence: ``For
purposes of subsection (a)(2), the exemption under paragraph (1) shall
also apply to fuel sold for use or used by a vessel which is both
described in section 4042(c)(1) and actually engaged in trade between
the Atlantic or Pacific ports of the United States (including any
territory or possession of the United States).''.
(b) Effective Date.--The amendment made by this section shall apply
to fuel sold for use or used after December 31, 2025.
SEC. 710. TREATMENT OF MARITIME PROSPERITY ZONES AS OPPORTUNITY ZONES.
(a) In General.--Subchapter Z of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 1400Z-3. TREATMENT OF MARITIME PROSPERITY ZONES AS OPPORTUNITY
ZONES.
``(a) In General.--A maritime prosperity zone shall be treated as a
qualified opportunity zone.
``(b) Special Rules.--In applying this subchapter to any maritime
prosperity zone which is a qualified opportunity zone solely by reason
of this section--
``(1) In general.--For purposes of determining--
``(A) whether any property which would not be
qualified opportunity fund business property without
regard to this section is qualified opportunity fund
business property, and
``(B) whether any corporation or partnership which
is not a qualified opportunity fund business without
regard to this section is a qualified opportunity fund
business,
section 1400Z-2(d) shall be applied with the modifications described in
paragraph (2).
``(2) Modifications.--The modifications described in this
paragraph are as follows:
``(A) Start date.--Subparagraphs (B)(i)(I), (C)(i),
and (D)(i)(I) of section 1400Z-2(d)(2) shall each be
applied by substituting `the date of the enactment of
the Shipbuilding and Harbor Infrastructure for
Prosperity and Security for America Act of 2025' for
`December 31, 2017'.
``(B) Qualified business property.--Property shall
not be treated as qualified opportunity zone business
property unless such property is substantially used in
an industry which is assigned a code under the North
American Industrial Classification System which is
described in paragraph (3).
``(C) Qualified business.--A trade or business
shall not be treated as a qualified opportunity zone
business unless such trade or business operates in an
industry which is assigned a code under the North
American Industrial Classification System which is
described in paragraph (3).
``(3) Eligible north american industrial classification
system codes.--The following codes under the North American
Industrial Classification System are the codes described in
this paragraph:
``(A) 48311 (deep sea freight transportation).
``(B) 483113 (coastal and Great Lakes freight
transportation).
``(C) 483211 (inland water freight transportation).
``(D) 4883 (support activities for water
transportation).
``(E) 3366 (ship and boat building).
``(c) Maritime Prosperity Zone.--For purposes of this chapter--
``(1) In general.--The term `maritime prosperity zone'
means any population census tract that--
``(A) contains or is determined by the Maritime
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 prosperity 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 consultation
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 nomination and
designates such tract as a qualified maritime
prosperity zone.
``(3) Number of population census tracts designated.--Not
more than 100 population census tracts may be designated as
maritime prosperity zone.
``(4) Period for which designation is in effect.--Except as
provided in paragraph (2), a designation as a maritime
prosperity zone shall remain in effect for the period--
``(A) beginning on the date of the designation, and
``(B) ending at the close of the 5th calendar year
beginning on or after such date of designation.''.
(b) Clerical Amendment.--The table of sections for subchapter Z of
chapter 1 of such Code is amended by adding at the end the following
new item:
``Sec. 1400Z-3. Treatment of maritime prosperity zones as opportunity
zones.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
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