SHIPS for America Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 1541 Introduced in Senate (IS)]

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119th CONGRESS 1st Session S. 1541

To support the national defense and economic security of the United States by supporting vessels, ports, and shipyards of the United States and the U.S. maritime workforce.

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IN THE SENATE OF THE UNITED STATES

April 30, 2025

Mr. Kelly (for himself, Mr. Young, Ms. Murkowski, Ms. Baldwin, Mr. Scott of Florida, and Mr. Fetterman) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

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A BILL

To support the national defense and economic security of the United States by supporting vessels, ports, and shipyards of the United States and the U.S. maritime workforce.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025'' or the ``SHIPS for America Act of 2025''. (b) Table of Contents.--The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Sense of Congress. Sec. 4. Definitions. TITLE I--OVERSIGHT AND ACCOUNTABILITY

Sec. 101. Maritime Security Advisor; Maritime Security Board. Sec. 102. Maritime Transportation System National Advisory Committee. Sec. 103. Direct hire authority; authorization for administrative expenses. Sec. 104. Implementation plan. Sec. 105. Federal Maritime Commission report on vessels of the United States. TITLE II--MARITIME SECURITY TRUST FUND

Sec. 201. Maritime Security Trust Fund established. Sec. 202. Regular tonnage taxes. Sec. 203. Presidential suspension of tonnage taxes and light money. TITLE III--SEALIFT CAPABILITY

Sec. 301. Sealift capability. Sec. 302. National Freight Strategic Plan. Sec. 303. Foreign shipping practices; controlled carriers. TITLE IV--VESSELS OF THE UNITED STATES IN INTERNATIONAL COMMERCE

Subtitle A--Strategic Sealift Programs

Sec. 401. Strategic Commercial Fleet. Sec. 402. Fleet testing and briefing requirement. Sec. 403. Assessment of undersea cable repair contingencies. Sec. 404. Modification to duties relating to equipment and repair of vessels. Subtitle B--Cargo Preference

Sec. 411. United States Government cargo. Sec. 412. Cargo preference implementation regulations. Sec. 413. Cargo preference oversight and audit. Sec. 414. Financing the transportation of agricultural products and other cargo. Sec. 415. Importation from China on American ships. Sec. 416. Priority for vessels of the United States. Sec. 417. Moving cargo on vessels of the United States. Sec. 418. Transportation requirements for certain exports sponsored by the Secretary of Agriculture. Sec. 419. Clarifying amendments. Sec. 420. Energizing American shipbuilding. Sec. 421. Goods imported on vessels of the United States. Sec. 422. Ship America Office. Subtitle C--Regulatory Reform

Sec. 431. Alternate standards. Sec. 432. Rulemaking committee on commercial maritime regulations and standards. Sec. 433. Amendments to Shipowners' Limitation of Liability Act of 1851. TITLE V--SHIPBUILDING

Subtitle A--Shipbuilding Financial Incentives

Sec. 501. Shipbuilding financial incentives. Sec. 502. Assistance for small shipyards. Sec. 503. Federal Ship Financing (title XI) Program. Sec. 504. Construction Reserve Fund. Sec. 505. Capital Construction Fund. Sec. 506. Anticipated commercial vessel construction survey. Sec. 507. Streamlined environmental review. Sec. 508. Eligibility for loan guarantees. Sec. 509. Reports. Sec. 510. Export control report. Subtitle B--Department of Defense Programs

Sec. 511. Assessment of the use of commercial best practices for Navy shipbuilding. Sec. 512. Plan of action for use of Defense Production Act of 1950 authorities. Sec. 513. Military Sealift Command. Subtitle C--Shipbuilding Innovation and Infrastructure

Sec. 521. United States Center for Maritime Innovation. Sec. 522. National Shipbuilding Research Program. Sec. 523. Assessment on maritime infrastructure readiness. TITLE VI--WORKFORCE DEVELOPMENT

Subtitle A--Workforce Incentives

Sec. 601. Public service loan forgiveness for Merchant Marines. Sec. 602. Eligibility for educational assistance. Sec. 603. Eligibility of mariners to attend Naval Postgraduate School. Sec. 604. Reimbursement of qualifying spouse relicensing costs and business costs. Sec. 605. Noncompetitive eligibility for Federal employment. Sec. 606. United States Merchant Marine Career Retention Program. Subtitle B--Workforce Pipeline

Sec. 611. Maritime workforce promotion and recruitment. Sec. 612. Centers of Excellence for Domestic Maritime Workforce Training and Education. Sec. 613. Maritime Career and Technical Education Advisory Committee. Sec. 614. Military candidates to Mariner Careers Recruitment Exchange. Sec. 615. Maritime worker data collection. Sec. 616. Military to maritime transition. Sec. 617. Early maritime education and youth involvement. Sec. 618. International scholarship for mariner and naval architecture exchanges. Subtitle C--United States Merchant Marine Academy and State Maritime Academies

Sec. 621. Authorization of appropriations for United States Merchant Marine Academy infrastructure and facilities modernization. Sec. 622. United States Merchant Marine Academy. Sec. 623. Retirement service credit for service as a midshipman at the United States Merchant Marine Academy. Sec. 624. State maritime academies. Sec. 625. Enforcement of service obligation requirements. Sec. 626. Fuel funding for training ships operated by State maritime academies. Sec. 627. State Maritime Academy Sea Term Scholarship Programs. Sec. 628. Naval joint exercise involvement for training ships operated by State maritime academies. Subtitle D--Maritime Credentialing Modernization

Sec. 631. Merchant mariner credentialing modernization. Sec. 632. Revising merchant mariner deck training requirements. Sec. 633. Inspections for transportation security. Sec. 634. Renewal of merchant mariner licenses and documents. Sec. 635. Merchant seamen licenses, certificates, and documents; manning of vessels. Sec. 636. Reactivation of expired license.

SEC. 2. FINDINGS.

Congress finds the following: (1) Strategic sealift, made up of Government and commercial vessels and mariners, is a critical capability for executing the maritime defense strategy and the wartime and peacetime economy of the United States. (2) Ensuring a modern and ready capability will require significant investment, policy prioritization, and the innovation of the people of the United States. (3) The worldwide ocean economy is worth between $3,000,000,000,000 and $6,000,000,000,000, according to the United Nations Conference on Trade and Development. Yet, vessels of the United States carry less than 2 percent of United States international commercial cargoes by weight. (4) The United States has fewer than 200 oceangoing vessels of the United States, of which only approximately 80 vessels participate in international commerce, compared with more than 5,500 Chinese documented vessels. (5) Bracketed by the Atlantic, Pacific, and Arctic oceans, the prosperity and security of the United States has always been tied to its position as a maritime Nation. Throughout human history, the strength of maritime nations has been directly tied to the strength of their maritime industry. The United States won two world wars on the back of a strong maritime industry. (6) Decades of apathy by the United States Government has harmed our strategically important maritime industry. Our weakened shipbuilding capacity, undersized maritime workforce, and shrinking fleet of shipping vessels means the United States relies on other nations to conduct international commerce and lacks the strategic sealift to support the United States military during wartime. (7) Today, there are just 20 shipbuilders in the United States capable of building oceangoing vessels--down from more than 80 at the end of the Second World War. (8) During World War II, the United States Merchant Marine powered the Allies to victory with more than 10,000 oceangoing vessels of the United States. Today there are just 80 vessels of the United States engaged in international trade. (9) The People's Republic of China has made investments in the maritime industry a strategic priority over the past 20 years. (10) As of 2023, shipyards in the United States had fewer than 5 shipbuilding orders for oceangoing vessels, while shipyards in the People's Republic of China had more than 1,700 orders, according to BRS Group. According to the Office of Naval Intelligence, the People's Republic of China became the world's top shipbuilding and shipping nation, boasting 230 times more shipbuilding capacity than the United States. (11) With just 12,000 United States merchant mariners operating oceangoing vessels, the United States may not have a sufficient number of mariners to fully power the strategic sealift vessels necessary in a future prolonged conflict. (12) The American Civil Society of Engineers assesses that the United States has a national maintenance backlog amounting to $125,000,000,000 for bridges, $163,000,000,000 for ports, and $6,800,000,000 for inland waterways. (13) The maritime industry is inherently international. Eighty percent of United States goods are imported by sea, of which 98 percent come into the United States on foreign documented vessels. Only 2 percent of such goods come into the United States on vessels of the United States, leaving the United States economy disproportionately dependent on oceangoing trade controlled by often adversarial foreign nations. The Nation's ability to provide services in both international and interstate commerce is critical to national and economic defense. (14) Since November 2023, vessels engaged in international commerce have been threatened by the Houthis, which has threatened global supply chains, increased costs, and required naval force protection operations in the Red Sea through the United States-led Operation Prosperity Guardian that formed in December 2023. (15) A fleet of commercial shipping vessels of the United States, crewed with citizen mariners, that is competitive in domestic and international trade enhances the United States military's readiness, allows the United States to more strategically compete with China, and underwrites the security and survival of the United States in times of crisis and war.

SEC. 3. SENSE OF CONGRESS.

It is the sense of Congress that the United States must-- (1) create a more favorable domestic and global maritime environment for vessels of the United States engaged in international commerce, shipbuilding, ship repair, maritime logistics, the maritime workforce, and naval power, contributing to assured access to the world's oceans free from coercion from strategic competitors and asymmetric adversaries; (2) increase domestic shipbuilding and ship repair capacity, with programs and policies that enable the growth of United States shipyards and the maritime industrial base, enhance military sealift capacity, expand the United States maritime workforce, and enhance national security; (3) revitalize the international fleet of vessels of the United States and foster a comparative advantage for the United States through targeted incentives and regulatory reforms to make the fleet competitive with international carriers and to gain a sustainable share of the global maritime market in order to bolster supply chains, strengthen economic security, and lower prices, while protecting the United States economy from economic coercion; (4) take all measures necessary to ensure that sufficient military, civil, and commercial resources will be available with assured access to meet defense deployment needs and essential economic activities for our Nation in times of crisis, war, or peace; (5) recognize that a vibrant commercial shipbuilding industry provides supply chain resiliencies and creates economies of scale that improve military, Coast Guard, and Government shipbuilding and support military operations through strategic sealift to defend the freedom of the seas; (6) nurture the comparative advantages of the United States to innovate to better compete in the global maritime marketplace, grow the maritime workforce, and create a favorable environment for investments to build modern maritime facilities and world-class academic institutions; (7) ensure better coordination between Federal agencies, including the Maritime Administration, the United States Coast Guard, the Department of Defense, the Federal Maritime Commission, and all other Federal agencies with a maritime nexus, to protect, regulate, and support the United States maritime industry, resolve disputes, and implement a whole-of- Government national maritime strategy; (8) recognize that, while a strong Navy is the surest guarantee of peace, building the Navy, sustaining the Navy, and supplying the Navy is founded on a robust commercial industrial base; (9) establish reliable long-term demand signals for, and investments in, oceangoing commercial vessels that are built in the United States, documented under the laws of the United States, and crewed by United States mariners; (10) evaluate past and present maritime efforts to take actions to revitalize the United States maritime industry; (11) strengthen the United States intercoastal and domestic trade fleet, which is the foundation upon which a revitalized United States-documented shipping and domestic shipbuilding industry will be built; (12) recognize the important role that the support craft, passenger, and fishing vessel fleet play in the United States maritime industry; (13) encourage the shipping of commercial cargo on vessels of the United States, with the aim of growing the size and carrying capacity of the international fleet of vessels of the United States; (14) grow the shipping capacity of vessels of the United States and guarantee United States Government cargo during peacetime; (15) develop a whole-of-Government effort to expand, develop, and protect the maritime workforce; (16) recognize the need for more workers in the maritime sector and stimulate growth in the United States maritime and shipbuilding industries, including by increasing access to early maritime education, commissioning national marketing campaigns to demonstrate how United States shipbuilding, United States-documented shipping, and maritime workers are critical to national security, and implementing workforce accelerator programs; (17) remove barriers to training mariners, including reevaluating Coast Guard training requirements regarding faculty credentials, instructional facility designs, sea time requirements, and other identified barriers, consistent with international treaty obligations; (18) expand and nurture a robust mariner workforce that enhances the national security and strategic sealift readiness of the United States by increasing the number of United States mariners and improving existing pathways and establishing new pathways for new, current, and former merchant mariners to go to sea; (19) recognize that the United States Merchant Marine Academy and our State maritime academies are critical to training the next generation of licensed officers and engineers on vessels of the United States; (20) invest and innovate in domestic shipbuilding, ship repair, and the shipping capabilities and capacity of vessels of the United States to advance the power and influence of the maritime industry of the United States; (21) drive multi-stakeholder research, development, assessment, and deployment of emerging marine technologies and best practices related to the maritime transportation system to ensure United States leadership in next-generation shipbuilding, ship repair, and maritime logistics; (22) drive modern business and manufacturing approaches, such as innovative maritime logistics, clean fuels, and advanced nuclear energy, human-machine teaming, additive manufacturing, and other advanced technologies; (23) review and update regulations governing vessel design and engineering, vessel and facility operation, and merchant mariner credentialing, in order to revitalize the United States maritime industry; (24) seek mutually beneficial relationships with treaty allies and strategic partners to grow the domestic shipping and shipbuilding industries of the United States and to share the burden of providing freedom of navigation on the high seas, while de-risking the United States maritime domain from the People's Republic of China, foreign countries of concern, and asymmetric or emerging maritime threats; (25) harden critical maritime infrastructure and networks, and incrementally replace infrastructure built by foreign adversaries with domestic-built and allied-built infrastructure; and (26) promote the values of the United States for freedom of the seas, worker safety and quality of life, environmental stewardship, and the resilience of our oceans, seas, and inland waterways.

SEC. 4. DEFINITIONS.

In this Act: (1) Appropriate committees of congress.--The term ``appropriate committees of Congress'' means-- (A) the Committee on Armed Services, the Committee on Commerce, Science, and Transportation, and the Committee on Appropriations of the Senate; and (B) the Committee on Armed Services, the Committee on Transportation and Infrastructure, and the Committee on Appropriations of the House of Representatives. (2) Domestic commerce.--The term ``domestic commerce'' means the transportation of goods or passengers between places in the United States. (3) Foreign commerce.--The term ``foreign commerce'' means-- (A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and (B) commerce or trade between foreign countries. (4) Foreign country of concern.--The term ``foreign country of concern'' means-- (A) a country that is a covered nation (as defined in section 4872(d) of title 10, United States Code); and (B) any country that the Maritime Administrator, in consultation with the Secretary of Defense, the Secretary of State, the Director of National Intelligence, and the Chair of the Federal Maritime Commission, determines to be engaged in conduct that is detrimental to the national security or foreign policy of the United States. (5) Foreign entity.--The term ``foreign entity''-- (A) means-- (i) a government of a foreign country or a foreign political party, as those terms are defined in section 1 of the Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 611); (ii) a natural person who is not a lawful permanent resident of the United States, a citizen of the United States, or any other protected individual (as such term is defined in section 274B(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3))); or (iii) a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country; and (B) includes-- (i) any person (including an owner or operator of a vessel) owned by, controlled by, or subject to the direction of an entity listed in subparagraph (A); (ii) any person, wherever located, who acts as an agent, representative, or employee of an entity listed in subparagraph (A); (iii) any person who acts in any other capacity at the order, request, or under the direction or control, of an entity listed in subparagraph (A), or of a person whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in major part by an entity listed in subparagraph (A); (iv) any person who directly or indirectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent or more of the equity interests of an entity listed in subparagraph (A); (v) any person with significant responsibility to control, manage, or direct an entity listed in subparagraph (A); (vi) any person, wherever located, who is a citizen or resident of a country controlled by an entity listed in subparagraph (A); or (vii) any corporation, partnership, association, or other organization organized under the laws of a country controlled by an entity listed in subparagraph (A). (6) Foreign entity of concern.--The term ``foreign entity of concern'' means any foreign entity that is-- (A) designated as a foreign terrorist organization by the Secretary of State under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189); (B) included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury; (C) owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country of concern; (D) alleged by the Attorney General to have been involved in activities for which a conviction was obtained under-- (i) chapter 37 of title 18, United States Code (commonly known as the ``Espionage Act'') (18 U.S.C. 792 et seq.); (ii) section 951 or 1030 of title 18, United States Code; (iii) chapter 90 of title 18, United States Code (commonly known as the ``Economic Espionage Act of 1996''); (iv) the Arms Export Control Act (22 U.S.C. 2751 et seq.); (v) section 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274, 2275, 2276, 2277, and 2284); (vi) the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.); or (vii) the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); (E) designated by the Federal Maritime Commission as a controlled carrier under chapter 407 of title 46, United States Code; (F) found by the Federal Maritime Commission to be practicing unfavorable conditions in foreign trade under chapter 421 or 423 of title 46, United States Code; or (G) determined by the Maritime Administrator, in consultation with the Secretary of Defense, the Secretary of State, the Director of National Intelligence, and the Chair of the Federal Maritime Commission, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the United States. (7) Vessel of the united states.--The term ``vessel of the United States'' has the meaning given that term in section 116 of title 46, United States Code.

TITLE I--OVERSIGHT AND ACCOUNTABILITY

SEC. 101. MARITIME SECURITY ADVISOR; MARITIME SECURITY BOARD.

(a) Amendments.--Chapter 504 of part A of subtitle V of title 46, United States Code, is amended-- (1) by striking the chapter heading and inserting the following: ``OVERSIGHT AND ACCOUNTABILITY''; (2) by redesignating section 50401 as section 50403; and (3) by inserting before section 50402, the following: ``Sec. 50401. Maritime Security Advisor; Maritime Security Board ``(a) Maritime Security Advisor.-- ``(1) In general.--Not later than 60 days after the date of enactment of this section, the President shall appoint a Special Advisor to the President (to be known as the `Maritime Security Advisor') for coordinating national maritime affairs and policy, including developing, updating, and implementing the National Maritime Strategy as required under section 50114 of this title. ``(2) Duties.--The Maritime Security Advisor appointed under paragraph (1) shall serve as the Chair of the Maritime Security Board, shall be the principal advisor to the President on all issues related to the maritime industry, shipbuilding, and ship repair, and shall be responsible for developing, updating, and implementing the National Maritime Strategy under section 50114 of this title within and across the Federal Government. ``(3) Office of the maritime security advisor.-- ``(A) In general.--There is established in the Executive Office of the President, an Office of the Maritime Security Advisor. The Maritime Security Advisor described in this subsection shall be the head of such Office. ``(B) Employees; contracts.--In carrying out the functions under this section, the Maritime Security Advisor is authorized to-- ``(i) appoint such officers and employees as the Maritime Security Advisor may deem necessary to perform the functions now or hereafter vested in the Maritime Security Advisor and to prescribe their duties; and ``(ii) enter into contracts and other arrangements for studies, analyses, and other services with public agencies and with private persons, organizations, or institutions, and make such payments as the Maritime Security Advisor deems necessary to carry out the provisions of this section. ``(b) Maritime Security Board.--Not later than 90 days after the date of enactment of this section, the President shall establish a board, to be known as the `Maritime Security Board' (in this section referred to as the `Board'). ``(1) Composition.-- ``(A) In general.--The Board shall be comprised of the following individuals and representatives: ``(i) The Maritime Security Advisor described in subsection (a). ``(ii) The Maritime Administrator. ``(iii) The Commandant of the Coast Guard. ``(iv) The Secretary of the Navy. ``(v) The Commander of the United States Transportation Command. ``(vi) The Chair of the Federal Maritime Commission. ``(vii) The Assistant Secretary of the Army for Civil Works. ``(viii) The chief United States delegate to the International Maritime Organization. ``(ix) The Under Secretary of Commerce for Oceans and Atmosphere. ``(x) The Commissioner for Customs and Border Protection. ``(xi) The Director of the Office of Management and Budget, or a designee. ``(xii) The Secretary of Transportation, or a designee. ``(xiii) The Secretary of Homeland Security, or a designee. ``(xiv) The Secretary of State, or a designee. ``(xv) The Secretary of Labor, or a designee. ``(xvi) The Secretary of Commerce, or a designee. ``(xvii) The Secretary of the Treasury, or a designee. ``(xviii) The Administrator of the Environmental Protection Agency, or a designee. ``(xix) The United States Trade Representative, or a designee. ``(xx) The head of each agency with a statutory responsibility for administering the Food for Peace Act (7 U.S.C. 1691 et seq.), or a designee. ``(xxi) From the Department of Defense-- ``(I) the Secretary of Defense, or a designee; ``(II) The Commander of the Military Sealift Command; ``(III) The Commander of Naval Sea Systems Command; ``(IV) a representative of the Army, as appointed by the Secretary of Defense; ``(V) a representative of the Air Force, as appointed by the Secretary of Defense; and ``(VI) a representative of the Navy, as appointed by the Secretary of Defense. ``(B) Nonvoting members.--The individuals and representatives listed in clauses (xi) through (xxi) shall be nonvoting members. ``(C) Chair.--The Maritime Security Advisor shall serve as the Chair of the Board. ``(2) Duties.--Consistent with the National Maritime Strategy under section 50114 of this title, the Board shall carry out the following duties: ``(A) Supporting the development of the marine transportation system of the United States, including-- ``(i) assessing the adequacy of the marine transportation system (including ports, waterways, channels, and their intermodal connections); ``(ii) promoting the integration of the marine transportation system with other modes of transportation and other uses of the marine environment; and ``(iii) coordinating, improving the coordination of, and making recommendations with regard to Federal policies that impact the marine transportation system. ``(B) Establishing policy priorities relating to, and conducting independent oversight over, the financial assistance programs under part C of subtitle V of this title, including-- ``(i) not later than 1 year after the date of enactment of the SHIPS for America Act of 2025 and annually thereafter, establishing targets for the number, type, and requirements of vessels to be included in each of-- ``(I) the Maritime Security Fleet (consistent with the most recent Mobility Capability Requirements Study produced by United States Transportation Command); ``(II) the Cable Security Fleet; ``(III) the Tanker Security Fleet (consistent with the most recent Mobility Capability Requirements Study produced by United States Transportation Command); ``(IV) the Strategic Commercial Fleet; and ``(V) the Shipbuilding Financial Incentives Program; ``(ii) submitting annual recommendations to the appropriate committees of Congress for any needed changes in the authorized number of vessels eligible to participate in the programs under part C of subtitle V of this title; and ``(iii) conducting oversight of the administration of such financial assistance programs to ensure such programs support the strategic sealift objectives and policy of the United States, as established in section 59101 of this title. ``(C) Supporting the Maritime Administrator in all efforts to conduct independent oversight of passenger and cargo preference requirements and supporting efforts to enable cargo to be carried on vessels of the United States, including-- ``(i) conducting oversight and coordinating interagency efforts to comply with cargo preference requirements established under chapter 553 of this title and section 2631 of title 10; ``(ii) independently verifying that all Federal agencies follow the requirements for cargoes procured, furnished, or financed by the United States Government under section 55305 of this title, and notifying the appropriate committees of Congress of any identified violations of the requirements of such section; ``(iii) conducting outreach among nongovernmental stakeholders, including private industry, to encourage more cargo to be moved on vessels of the United States; ``(iv) developing recommendations for regulations to be issued by Federal agencies to preference the movement of cargo on vessels of the United States; and ``(v) submitting recommendations to the appropriate committees of Congress for changes to laws relating to passenger and cargo preferences for the purpose of establishing a more robust fleet of vessels of the United States. ``(D) Conducting independent oversight and developing guidance and recommendations related to the enforcement of the requirements of chapters 121 and 551 of this title. ``(E) Coordinating national efforts to develop a robust maritime workforce that enhances the national security and strategic sealift readiness of the United States, including-- ``(i) coordinating and conducting oversight of interagency efforts and partnerships with the maritime industry and qualified labor organizations to recruit, train, and retain qualified licensed and unlicensed merchant mariners; and ``(ii) coordinating and conducting oversight of interagency efforts and partnerships with the shipbuilding industry to recruit, train, and retain qualified workers in the shipbuilding industry of the United States. ``(F) Establishing national priorities for research and development of next-generation technologies to enhance United States leadership in the shipbuilding and maritime industries, including through the Center for Maritime Innovation established under section 50307. ``(G) Coordinating interagency efforts to ensure vessels of the United States operating in international commerce are privileged in regulation, taxation, fees, insurance, and policy compared to foreign vessels conducting trade with a United States-domiciled entity, while remaining consistent with the international obligations of the United States. ``(H) Coordinating efforts to protect vessels of the United States operating in international or domestic commerce from physical and cybersecurity threats. ``(I) Conducting oversight of the use of funds from the Maritime Security Trust Fund established under section 50301(b) of this title, and making recommendations to Congress for expenditures from the Trust Fund. ``(J) Conducting studies on subjects related to the maritime industry and international shipping, and undertaking other efforts related to strengthening the maritime security of the United States. ``(K) Carrying out other duties, as assigned by the President in consultation with the Maritime Security Advisor, related to the maritime industry, shipbuilding, ship repair, strategic sealift, and the marine transportation system of the United States. ``(3) Delegation.--The Board may task agencies who are represented by individuals on the Board (as described under paragraph (1)(A)) to carry out any duties of the Board. ``(4) Meetings.--The Board shall meet not less frequently than quarterly. ``(5) Staff.--The Board may hire staff to support its activities. ``(c) Authorization of Appropriations.--There are authorized to be appropriated $5,000,000 for each of fiscal years 2026 through 2035, from the Maritime Security Trust Fund established under section 50301(b) of this title, to the Maritime Security Board to staff the Board and carry out the duties described in this section. ``(d) Report to Congress.-- ``(1) In general.--Not later than 180 days after the President establishes the Maritime Security Board under this section, and annually thereafter, the Board shall submit a report to the appropriate committees of Congress describing-- ``(A) the actions that the Board has taken to carry out the duties required of the Board under subsection (b)(2); and ``(B) a list of recommended actions that the Board recommends Congress take to enhance the strength of the United States maritime industry and support the economic and national security needs of the United States;. ``(2) Appropriate committees of congress.--In this section, the term `appropriate committees of Congress' has the meaning given that term in section 4 of the SHIPS for America Act of 2025.''. (b) Clerical Amendment.--The table of sections for chapter 504 of subtitle V of title 46, United States Code, is amended to read as follows:

``50401. Maritime Security Advisor; Maritime Security Board. ``50402. Maritime Transportation System National Advisory Committee. ``50403. United States Committee on the Marine Transportation System.''. (c) National Maritime Strategy.--Section 50114 of title 46, United States Code, is amended-- (1) by striking subsection (a), and inserting the following: ``(a) In General.-- ``(1) In general.--Subject to paragraph (2), the Maritime Security Advisor, in consultation with the Maritime Security Board, shall develop a National Maritime Strategy and submit that National Maritime Strategy to the appropriate committees of Congress (as that term is defined in section 4 of the SHIPS for America Act of 2025). ``(2) Transition.--Notwithstanding paragraph (1), if a national maritime strategy has been developed and submitted in accordance with this section, as in effect on the day before the date of enactment of the SHIPS for America Act of 2025, in the 1-year period before such date of enactment, the Maritime Security Advisor shall implement and update that national maritime strategy and shall not develop a new national maritime strategy.''; and (2) by striking subsections (c) and (d) and inserting the following: ``(c) Implementation.--Upon the release of a strategy under this section, the Maritime Security Advisor, in consultation with the Maritime Security Board, shall be responsible for implementing the contents and recommendations of the strategy. ``(d) Update.--The Maritime Security Advisor, in coordination with the Maritime Security Board, shall submit to the appropriate committees of Congress (as that term is defined in section 4 of the SHIPS for America Act of 2025) an update to the strategy developed under subsection (a) not less often than every 5 years. ``(e) Public Availability; Implementation Plan.--Not later than 6 months after the submission of a strategy or update under subsection (a), the Maritime Security Advisor, in consultation with the Maritime Security Board, shall make publicly available on an appropriate website each strategy or updated strategy and an implementation plan for such strategy or update.''.

SEC. 102. MARITIME TRANSPORTATION SYSTEM NATIONAL ADVISORY COMMITTEE.

Section 50402 is amended-- (1) in subsection (b), by striking ``Secretary of Transportation'' and inserting ``Maritime Security Advisor and Maritime Security Board''; and (2) in subsection (c)-- (A) in paragraph (1), by striking ``by the Secretary of Transportation''; (B) by striking paragraph (3) and inserting the following: ``(3) Representation.--Members of the Committee shall be appointed as follows: ``(A) The Maritime Security Advisor shall appoint the following members of the Committee: ``(i) At least one member to represent the Environmental Protection Agency. ``(ii) At least one member to represent the Department of Commerce. ``(iii) At least one member to represent the Corps of Engineers. ``(iv) At least one member to represent the Coast Guard. ``(v) At least one member to represent Customs and Border Protection. ``(vi) At least one member to represent the Maritime Administration. ``(vii) At least one member to represent the Department of Agriculture. ``(viii) At least one member to represent the State Department. ``(ix) At least one member to represent State and local governmental entities. ``(B) Additional members shall represent private sector entities that reflect a cross-section of maritime industries, including credentialed United States merchant mariners, port and water stakeholders, academia, and labor, of whom-- ``(i) 3 shall be appointed by the majority leader of the Senate; ``(ii) 3 shall be appointed by the minority leader of the Senate; ``(iii) 3 shall be appointed by the Speaker of the House of Representatives; and ``(iv) 3 shall be appointed by the minority leader of the House of Representatives. ``(C) The Maritime Security Advisor may appoint additional members of the Committee, including additional representatives from the United States Merchant Marine Academy, State maritime academies, or other Federal agencies, as the Secretary considers appropriate.''; and (C) in paragraph (4), by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly; (D) by redesignating paragraph (4) as subparagraph (A) and adjusting the margins accordingly; (E) by inserting after paragraph (3) the following: ``(4) Restrictions on members.--''; and (F) at the end of paragraph (4), as so designated, by inserting the following: ``(B) Restrictions on additional members.--Members appointed under this paragraph that are not representing Federal agencies-- ``(i) shall remain on the Committee for a term of 3 years from the date that the member is appointed; and ``(ii) may not serve more than 2 consecutive terms.''.

SEC. 103. DIRECT HIRE AUTHORITY; AUTHORIZATION FOR ADMINISTRATIVE EXPENSES.

(a) Maritime Administration Direct Hire Authority.-- (1) In general.--The Maritime Administrator may appoint, without regard to the provisions of sections 3309 through 3319 of title 5, United States Code, candidates to positions in the competitive service within the Maritime Administration for which-- (A) public notice has been given; (B) the Administrator has determined that a critical hiring need exists; and (C) the Administrator has consulted with the Director of the Office of Personnel Management regarding-- (i) the positions for which the Administrator plans to recruit; (ii) the quantity of candidates Administrator is seeking; and (iii) the assessment and selection policies the Administrator plans to utilize. (2) Definition of critical hiring need.--In this subsection, the term ``critical hiring need'' means personnel necessary for the implementation of this Act and associated work. (b) Coast Guard Direct Hire Authority.-- (1) In general.--The Secretary of the department in which the Coast Guard is operating may appoint, without regard to the provisions of sections 3309 through 3319 of title 5, United States Code, candidates to positions in the competitive service within offices under the Assistant Commandant for Prevention Policy of the Coast Guard, for which-- (A) public notice has been given; (B) the Secretary has determined that a critical hiring need exists; and (C) the Secretary has consulted with the Director of the Office of Personnel Management regarding-- (i) the positions for which the Secretary plans to recruit; (ii) the quantity of candidates Secretary is seeking; and (iii) the assessment and selection policies the Secretary plans to utilize. (2) Definition of critical hiring need.--In this subsection, the term ``critical hiring need'' means personnel necessary for the implementation of this Act and associated work. (c) Competitive Service.--In this section the term ``competitive service'' has the meaning given the term in section 2102 of title 5, United States Code. (d) Authorization of Appropriations for Administrative Expenses.-- There is authorized to be appropriated from the Maritime Security Trust Fund established under section 50301(b) of title 46, United States Code-- (1) $30,000,000 to the Secretary of Transportation for administrative expenses of the Maritime Administration to administer subtitle V of title 46, United States Code, for each of fiscal years 2026 through 2035; (2) $30,000,000 to the Secretary of the department in which the Coast Guard is operating for administrative expenses of the Coast Guard to administer subtitle II of title 46, United States Code, for each of fiscal years 2026 through 2035; and (3) $2,000,000 to the Federal Maritime Commission for administrative expenses of the Federal Maritime Commission to administer subtitle IV of title 46, United States Code.

SEC. 104. IMPLEMENTATION PLAN.

(a) Implementation Plan Required.--Not later than 60 days after the date of enactment of this Act, the Maritime Administrator and the Secretary of the department in which the Coast Guard is operating shall each submit to the appropriate committees of Congress and the Maritime Security Board a separate implementation plan for carrying out this Act, and the amendments made by this Act. (b) Elements.--Each implementation plan required under subsection (a) shall include, for each action required of the Maritime Administrator and the Secretary of the department in which the Coast Guard is operating (as applicable) in this Act, including the amendments made by this Act-- (1) an identification of all administrative restructuring requirements; (2) an identification of each office or division within the Maritime Administration or Coast Guard principally responsible for each relevant section of this Act; (3) an identification of additional personnel needed to sufficiently implement this Act, a hiring plan, and a training plan; (4) an identification of any barrier (including any policy, law, or regulation) to implementation of any section of this Act, and recommendations to address those barriers; (5) a descriptive implementation timeline, taking into account the administrative needs of the Maritime Administration or the Coast Guard; and (6) any additional components determined appropriate by the Maritime Administrator or such Secretary to ensure the success of implementation of this Act. (c) Briefing.--Not later than 15 days after submitting each implementation plan required under subsection (a), the Maritime Administrator and the Secretary of the department in which the Coast Guard is operating shall provide a briefing to the appropriate committees of Congress on the status of that implementation plan required under subsection (a). (d) Biannual Update.--Not less frequently than biannually following the submission of the plans under subsection (a) and for 2 years thereafter, the Maritime Administrator and the Secretary of the department in which the Coast Guard is operating shall submit to the appropriate committees of Congress separate reports containing any updates on the implementation of such plans. (e) GAO Review.--The Comptroller General of the United States shall-- (1) not later than 2 years after the date of enactment of this Act, and biennially thereafter for 10 years, conduct a review of the activities carried out in accordance with this Act, and the amendments made by this Act; and (2) submit to the appropriate committees of Congress the results of each review.

SEC. 105. FEDERAL MARITIME COMMISSION REPORT ON VESSELS OF THE UNITED STATES.

(a) In General.--The Federal Maritime Commission shall annually submit a report to the Maritime Security Board and the appropriate committees of Congress evaluating the competitiveness of vessels of the United States in foreign commerce. The Maritime Security Board shall utilize the findings of such report to inform the National Maritime Strategy under section 50114 of title 46, United States Code, and other activities of the Board. (b) Contents.--The report shall include-- (1) metrics concerning carriage of foreign commerce on vessels of the United States; (2) information about the price parity of carriage of foreign commerce on vessels of the United States versus foreign vessels (as defined in section 110 of title 46, United States Code) by market; (3) identification of markets of opportunity for the United States to compete in foreign commerce where rates are in relative parity to vessels of the United States; (4) markets in which United States interests paid above average rates for foreign commerce, including with foreign and domestic carriers; and (5) an assessment of the foreign vessel registries of peer competitor countries to determine-- (A) the roles of the governments of peer competitor countries in their vessel registry processes, including policy practices that may provide a disadvantage to the United States; (B) the sizes of the fleets of foreign vessels registered with such countries, including how many of such foreign vessels are domestically built and how many are built in other countries; and (C) the price parity of vessels of the United States, as compared to foreign vessels registered with peer competitor countries that are operating in global markets identified as a priority by the Federal Maritime Commission.

TITLE II--MARITIME SECURITY TRUST FUND

SEC. 201. MARITIME SECURITY TRUST FUND ESTABLISHED.

Section 50301 of title 46, United States Code, is amended-- (1) by striking the section heading and inserting ``Funds established''; (2) in subsection (e)-- (A) in paragraph (2), by redesignating subparagraphs (A), (B), and (C), as clauses (i), (ii), and (iii), respectively, and adjusting the margins accordingly; (B) by redesignating paragraphs (1), (2), and (3), as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly; (C) in subparagraph (A), as redesignated by subparagraph (B), by striking ``paragraph (2)'' and inserting ``subparagraph (B)''; (D) in subparagraph (B), as redesignated by subparagraph (B), in the matter preceding clause (i), by striking ``Paragraph (1)'' and inserting ``Subparagraph (A)''; and (E) in subparagraph (C), as redesignated by subparagraph (B), by striking ``Paragraph (1)'' and inserting ``Subparagraph (A)''; (3) in subsection (f), by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly; (4) by redesignating subsections (b) through (g) as paragraphs (2) through (7), respectively, and adjusting the margins accordingly; (5) in subsection (a), by striking ``In General'' and all that follows through ``There is a'' and inserting the following: ``(a) Vessel Operations Revolving Fund.-- ``(1) In general.--There is a''; (6) in paragraph (4), by striking ``subsection (a)'' and inserting ``paragraph (1)''; and (7) by adding at the end the following: ``(b) Maritime Security Trust Fund.-- ``(1) In general.--There is a `Maritime Security Trust Fund' for use in carrying out programs or activities associated with supporting the merchant marine of the United States and the maritime industrial base, as authorized under the SHIPS for America Act of 2025. ``(2) Transfer of amounts.--The Fund shall be credited with amounts equivalent to the receipts from each of the following: ``(A) The taxes received in the Treasury under-- ``(i) section 60301 of this title (relating to regular tonnage taxes); ``(ii) section 60302 of this title (relating to special tonnage taxes); and ``(iii) section 60303 of this title (relating to light money). ``(B) The revenue collected from-- ``(i) duties imposed under section 466 of the Tariff Act of 1930 (19 U.S.C. 1466) (relating to equipment and repair of vessels); ``(ii) duties, fees, or monetary penalties imposed by the United States Trade Representative under section 301 of the Trade Act of 1974 (19 U.S.C. 2411) pursuant to the determination of the Trade Representative that the targeting of the maritime, logistics, and shipbuilding sectors for dominance by the People's Republic of China is unreasonable and burdens or restricts United States commerce, notice of which was published in the Federal Register on January 23, 2025 (90 Fed. Reg. 8089); and ``(iii) duties imposed under section 60502 of this title (relating to discriminating duty on goods imported in foreign vessels or from contiguous countries). ``(C) Any penalties paid with respect to a vessel pursuant to any of the following sections of this title: ``(i) Section 2017. ``(ii) Section 2302. ``(iii) Section 3318. ``(iv) Section 3718. ``(v) Section 4106. ``(vi) Section 5116. ``(vii) Section 11303. ``(viii) Section 11501. ``(ix) Section 12151. ``(x) Section 12507. ``(xi) Section 14701. ``(xii) Section 30707, with respect to the portion of the fine that goes to the United States Government under subsection (c) of such section. ``(xiii) Section 31309. ``(xiv) Section 31330. ``(xv) Section 41107. ``(xvi) Section 41108. ``(xvii) Section 42108. ``(xviii) Section 44104. ``(xix) Section 70052. ``(xx) Section 70119. ``(xxi) Section 70506. ``(xxii) Section 80509. ``(D) Any revenue generated in connection with the seizure and forfeiture of a maritime vessel under-- ``(i) section 3 of the Act of August 5, 1935 (49 Stat. 518, chapter 438; 19 U.S.C. 1703); ``(ii) section 70052 of this title; and ``(iii) section 70507 of this title. ``(3) Total balance.--The total amount in the Maritime Security Trust Fund at any time shall not exceed $20,000,000,000. ``(4) Expenditures.--Amounts in the Maritime Security Trust Fund shall be available for making expenditures before October 1, 2035, to meet those obligations of the United States heretofore and hereafter incurred which are authorized to be paid out of the Maritime Security Trust Fund under the SHIPS for America Act of 2025, including the amendments made in such Act.''.

SEC. 202. REGULAR TONNAGE TAXES.

(a) Rate Updates.--Section 60301 of title 46, United States Code, is amended-- (1) in subsection (a), by striking ``, for fiscal years 2006 through 2010, and 2 cents per ton not to exceed a total of 10 cents per ton per year, for each fiscal year thereafter''; and (2) in subsection (b), by striking ``, for fiscal years 2006 through 2010, and 6 cents per ton, not to exceed a total of 30 cents per ton per year, for each fiscal year thereafter''. (b) Foreign Shipyard of Concern.-- (1) Definition.--The term ``foreign shipyard of concern'' means-- (A) a shipyard owned by a firm owned or controlled by the government of a foreign country of concern or a foreign entity of concern, that has the capacity to produce both military and commercial vessels; and (B) a foreign shipyard designated under paragraph (2). (2) Designation.-- (A) In general.--Beginning after October 1, 2027, the Maritime Security Advisor, in consultation with the Maritime Security Board, shall designate certain foreign shipyards that pose a threat to the national security or economic security of the United States as foreign shipyards of concern, in accordance with this paragraph. (B) Notice and comment.--A proposed designation under subparagraph (A) shall be subject to notice and comment in the Federal Register. (C) Annual revisions.--The list of shipyards designated under this paragraph shall be revised, and new shipyards may be designated, not more frequently than once a year. (c) Penalty Rates; Inflation.--Section 60301 of title 46, United States Code, is further amended-- (1) by redesignating subsection (c) as subsection (e); and (2) by inserting after subsection (b) the following: ``(c) Penalty Rate.-- ``(1) In general.--In accordance with paragraph (2), and in addition to the tax imposed on a vessel under subsection (b), a penalty tax with no annual limit is imposed on a vessel subject to the tax imposed under subsection (b), at a rate of-- ``(A) $5 per ton for a vessel that-- ``(i) is owned or operated by a foreign entity of concern; ``(ii) is a vessel registered under a registry of a foreign country of concern; ``(iii) was a vessel registered under a registry of a foreign country of concern at any time during the 3 years preceding the date of the determination of the application of subsection (a) or (b); or ``(iv) is owned or operated by an entity, with respect to which-- ``(I) an amount equal to 50 percent or greater of the total number of vessels ordered at the time of the determination of the application of subsection (a) or (b) are vessels ordered from a shipyard of concern; or ``(II) an amount equal to 50 percent or greater of the total number of vessels that the entity expects to have delivered in the period of 24 months after the time of such determination are vessels expected to be delivered by a shipyard of concern; ``(B) $3.50 per ton for a vessel that is owned or operated by an entity, with respect to which-- ``(i) an amount equal to 25 percent or more, but less than 50 percent, of the total number of vessels ordered at the time of the determination of the application of subsection (a) or (b) are vessels ordered from a shipyard of concern; or ``(ii) an amount equal to 25 percent or more, but less than 50 percent, of the total number of vessels that the entity expects to have delivered in the period of 24 months after the time of such determination are vessels expected to be delivered by a shipyard of concern; ``(C) $1.25 per ton for a vessel that is owned or operated by an entity with a fleet of vessels, of which an amount equal to 50 percent or more of the number of such vessels were constructed or underwent any repairs (excluding necessary repairs as described in paragraph (1) of section 466(d) of the Tariff Act of 1930 (19 U.S.C. 1466(d)(1))) in a shipyard of concern at any time during the 3 years preceding the date of the determination of the application of subsection (b). ``(2) Highest applicable rate.--A vessel with respect to which the descriptions in 2 or more subparagraphs in paragraph (1) apply, shall be subject to the highest applicable rate described in that paragraph. ``(3) Definitions.--In this subsection-- ``(A) the terms `foreign country of concern' and `foreign entity of concern' have the meanings given those terms in section 4 of the SHIPS for America Act of 2025; and ``(B) the term `foreign shipyard of concern' has the meaning give that term in section 202 of that Act. ``(d) Index for Inflation.--The taxes imposed under this section shall be annually increased to account for inflation.''.

SEC. 203. PRESIDENTIAL SUSPENSION OF TONNAGE TAXES AND LIGHT MONEY.

Section 60304 of title 46, United States Code, is amended to read as follows: ``Sec. 60304. Presidential suspension of tonnage taxes and light money ``(a) In General.--Except as provided in subsection (b), if the President is satisfied that the government of a foreign country does not impose discriminating or countervailing duties to the disadvantage of the United States, the President may suspend the imposition of special tonnage taxes and light money under sections 60302 and 60303 of this title on vessels of that country. ``(b) Exception.--Subsection (a) shall not apply to any vessel that-- ``(1) is owned or operated by a foreign entity of concern (as that term is defined in section 4 of the SHIPS for America Act of 2025); ``(2) is a vessel registered under a registry of a foreign country of concern (as that term is defined in section 4 of the SHIPS for America Act of 2025); or ``(3) was a vessel registered under a registry of a foreign country of concern (as that term is defined in section 4 of the SHIPS for America Act of 2025) at any time during the 3 years preceding the date of the determination of the application of subsection (a).''.

TITLE III--SEALIFT CAPABILITY

SEC. 301. SEALIFT CAPABILITY.

(a) In General.--Subtitle V of title 46, United States Code, is amended by adding at the end the following:

``PART H--STRATEGIC SEALIFT

``Sec. ``59101. Objectives and policy. ``59102. Procurement, maintenance, and operation. ``59103. Sealift prioritization. ``59104. Report on privilege. ``Sec. 59101. Objectives and policy ``(a) Objectives.--It is necessary for the national defense and economic security of the United States that the United States have vessels of the United States capable of providing and supporting strategic sealift-- ``(1) sufficient to meet surge defense deployment and essential economic activities for the United States in times of crisis or war; ``(2) sufficient to respond unilaterally to national security threats in geographic areas not covered by alliance commitments and ensure economic security resilience for United States trade; and ``(3) built, operated, and maintained during all times, primarily in the United States to protect and ensure national security resiliency and avoid foreign coercion of critical supply chains. ``(b) Policy.--It is the policy of the United States to encourage and aid the development and maintenance of vessels of the United States with strategic sealift capabilities satisfying the objectives described in subsection (a). ``(c) Strategy Required.-- ``(1) In general.--The Maritime Security Board shall annually develop a strategy to leverage the financial assistance programs established under part C of this subtitle to expand the number of vessels of the United States needed to accomplish the objectives described under subsection (a). ``(2) Strategy components.--The strategy developed by the Maritime Security Board shall include-- ``(A) annual goals for the number of vessels that will be brought into the fleet of vessels of the United States capable of providing strategic sealift utilizing the Maritime Security Fleet under chapter 531 of this title, the Cable Security Fleet under chapter 532 of this title, the Tanker Security Fleet under chapter 534 of this title, the Strategic Commercial Fleet under chapter 536 of this title, and the Shipbuilding Financial Incentives program, consistent with the most recent Mobility Capability Requirements Study produced by United States Transportation Command; and ``(B) an assessment of domestic shipbuilding capacity and a strategy to increase the capacity of the domestic shipbuilding industry utilizing the Shipbuilding Financial Incentives program. ``(3) National maritime strategy.--The strategy developed by the Maritime Security Board under paragraph (1) shall be consistent with the National Maritime Strategy developed under section 50114. ``(d) Report Required.-- ``(1) In general.--Upon completion, the Maritime Security Board shall transmit to the appropriate committees of Congress a summary of the strategy developed under subsection (c), with a classified annex as necessary. ``(2) Definition.--In this part, the term `appropriate committees of Congress' has the meaning given

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