(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

(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).

(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.);

(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:

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.

(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.

(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

(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.

(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—

(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.

(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—

(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.

(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.

(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.

(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.

(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)

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);

(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.

(1) Definition

The term foreign shipyard of concern means—

(2) Designation

(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.

(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.

(1)

in section 40701—

(2)

in section 40702(b)—

(3)

in section 40703, by striking a rate, charge, and inserting a rate, fare, charge,; and

(4)

in section 40704—

(a) In general

Part C of subtitle V of title 46, United States Code, is amended by inserting after chapter 535 the following:

536 Strategic Commercial Fleet

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.

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.

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.

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.

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.

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—

(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:

(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—

(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—

(a) In general

Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466) is amended—

(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—

(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.

(a) Sense of congress

It is the sense of Congress that—

(b) Applicable percentage

(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.

(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—

(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.

(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.

(a) In general

Subchapter II of chapter 553 of title 46, United States Code, is amended by inserting after section 55315 the following:

55316. Financing the transportation of agricultural products and other cargo

(a) Financing of increased costs

The 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:

(a) In general

Chapter 605 of title 46, United States Code, is amended by adding at the end the following:

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:

(a) In general

Part D of subtitle V of title 46, United States Code, is amended by inserting after chapter 553 the following:

555 Priority for vessels of the United States

55501. Priority for vessels of the United States

(a) In general

The Secretary of Transportation may allow a vessel of the United States to be given priority at any port in the United States, ahead of a waiting vessel of a foreign country of concern (as defined in section 4 of the SHIPS for America Act of 2025) or owned by a foreign entity of concern (as so defined).

(b) Exception

Notwithstanding subsection (a), if the Secretary of Transportation finds that it is in the national interest, the Secretary may eliminate the priority under this section at any port. The Secretary shall report to the appropriate committees of Congress, as defined in section 4 of the SHIPS for America Act of 2025, by not later than 30 days after an action eliminating priority under this section.

(b) Clerical amendment

The table of chapters for subtitle V of title 46, United States Code, is amended by inserting after the item relating to chapter 553 the following:

(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—

(b) Inclusions

The assessment required under subsection (a) shall include an evaluation of—

(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—

(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.

(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)—

(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.

(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.

(a) National policy on strategic energy asset export transportation

(b) Crude oil

Section 101 of title I of division O of the Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a) is amended—

(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)

in section 60502(a)(1)—

(2)

in section 60503(a), by inserting , except for the duties imposed under section 60502 of this chapter, after suspension of discriminating duties.

(a) In general

Chapter 553 of title 46, United States Code, is amended by adding at the end the following:

IV Ship America Office

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:

(a) In general

Chapter 33 of title 46, United States Code, is amended—

(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:

(a) Definitions

In this section:

(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—

(c) Members

(d) Meetings

(e) Duties of committee

(f) Powers of rulemaking committee

(g) Rulemaking committee personnel matters

(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—

(j) Duties of the Secretary

The Secretary shall—

(a) In general

Section 30523 of title 46, United States Code, is amended—

(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.

(a) In general

Part C of subtitle V of title 46, United States Code, is amended by inserting after chapter 537 the following:

538 Shipbuilding financial incentives

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:

(c) Conforming amendment

Title V of the Act of June 29, 1936 (49 Stat. 1995; chapter 858) is repealed.

(1)

in subsection (b)(1)—

(2)

in subsection (i)—

(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—

(c) Eligible purposes of obligations

Section 53706(a)(8) of title 46, United States Code, is amended—

(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.

(a) Definitions

Section 53301(a) of title 46, United States Code, is amended—

(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—

(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—

(f) Obligation of deposits

Section 53310 of title 46, United States Code, is amended—

(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:

(a) In general

Chapter 535 of subtitle V of title 46, United States Code, is amended—

(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.

(a) In general

Chapter 501 of title 46, United States Code, is amended by adding at the end the following:

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:

(1)

in subparagraph (A)—

(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.

(a) Report on National Defense Reserve Fleet

(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.

(a) Assessment

(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—

(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—

(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.

(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.)—

(b) Coordination

The President shall develop the plan of action required by subsection (a) in consultation with—

(c) Appropriate committees of Congress defined

In this section, the term appropriate committees of Congress means—

(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

(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.

(a) In general

Section 50307(e) of title 46, United States Code, is amended—

(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—