[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 3151 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 3151 To support the national defense and economic security of the United States by supporting vessels, ports, and shipyards of the United States and the U.S. maritime workforce. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES May 1, 2025 Mr. Kelly of Mississippi (for himself, Mr. Garamendi, Mr. Wittman, Mr. Norcross, Mr. Higgins of Louisiana, Mr. Khanna, Ms. Elfreth, Mr. DesJarlais, Mr. McCormick, Mr. Krishnamoorthi, Mr. Rutherford, Mr. Gooden, Mr. LaLota, Ms. Pingree, Ms. Hoyle of Oregon, Mr. Messmer, Mr. Haridopolos, Mrs. Kiggans of Virginia, Mr. Fields, Mr. Carter of Louisiana, Mr. Deluzio, Mr. Moskowitz, Mr. Bera, Ms. Scanlon, Mr. Harrigan, Mr. Golden of Maine, Mr. Bergman, Mr. Fallon, Mr. Van Orden, Mr. Wied, Ms. Tokuda, Mr. Moore of Alabama, Mr. Fitzpatrick, Ms. Scholten, Mr. Moore of North Carolina, Mr. Strong, Mr. Luttrell, and Mr. Zinke) introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To support the national defense and economic security of the United States by supporting vessels, ports, and shipyards of the United States and the U.S. maritime workforce. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025'' or the ``SHIPS for America Act of 2025''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Sense of Congress. Sec. 4. Definitions. TITLE I--OVERSIGHT AND ACCOUNTABILITY Sec. 101. Maritime Security Advisor; Maritime Security Board. Sec. 102. Maritime Transportation System National Advisory Committee. Sec. 103. Direct hire authority; Authorization for administrative expenses. Sec. 104. Implementation plan. Sec. 105. Federal Maritime Commission report on vessels of the United States. TITLE II--MARITIME SECURITY TRUST FUND Sec. 201. Maritime Security Trust Fund established. Sec. 202. Regular tonnage taxes. Sec. 203. Presidential suspension of tonnage taxes and light money. TITLE III--SEALIFT CAPABILITY Sec. 301. Sealift capability. Sec. 302. National Freight Strategic Plan. Sec. 303. Foreign shipping practices; controlled carriers. TITLE IV--VESSELS OF THE UNITED STATES IN INTERNATIONAL COMMERCE Subtitle A--Strategic Sealift Programs Sec. 401. Strategic Commercial Fleet. Sec. 402. Fleet testing and briefing requirement. Sec. 403. Assessment of undersea cable repair contingencies. Sec. 404. Modification to duties relating to equipment and repair of vessels. Subtitle B--Cargo Preference Sec. 411. United States Government cargo. Sec. 412. Cargo preference implementation regulations. Sec. 413. Cargo preference oversight and audit. Sec. 414. Financing the transportation of agricultural products and other cargo. Sec. 415. Importation from China on American ships. Sec. 416. Priority for vessels of the United States. Sec. 417. Moving cargo on vessels of the United States. Sec. 418. Transportation requirements for certain exports sponsored by the Secretary of Agriculture. Sec. 419. Clarifying amendments. Sec. 420. Energizing American shipbuilding. Sec. 421. Goods imported on vessels of the United States. Sec. 422. Ship America Office. Subtitle C--Regulatory Reform Sec. 431. Alternate standards. Sec. 432. Rulemaking committee on commercial maritime regulations and standards. Sec. 433. Amendments to Shipowners' Limitation of Liability Act of 1851. TITLE V--SHIPBUILDING Subtitle A--Shipbuilding Financial Incentives Sec. 501. Shipbuilding financial incentives. Sec. 502. Assistance for small shipyards. Sec. 503. Federal Ship Financing (title XI) Program. Sec. 504. Construction Reserve Fund. Sec. 505. Capital Construction Fund. Sec. 506. Anticipated commercial vessel construction survey. Sec. 507. Streamlined environmental review. Sec. 508. Eligibility for loan guarantees. Sec. 509. Reports. Sec. 510. Export control report. Subtitle B--Department of Defense Programs Sec. 511. Assessment of the use of commercial best practices for Navy shipbuilding. Sec. 512. Plan of action for use of Defense Production Act of 1950 authorities. Sec. 513. Military Sealift Command. Subtitle C--Shipbuilding Innovation and Infrastructure Sec. 521. United States Center for Maritime Innovation. Sec. 522. National Shipbuilding Research Program. Sec. 523. Assessment on maritime infrastructure readiness. TITLE VI--WORKFORCE DEVELOPMENT Subtitle A--Workforce Incentives Sec. 601. Public service loan forgiveness for Merchant Marines. Sec. 602. Eligibility for educational assistance. Sec. 603. Eligibility of mariners to attend Naval Postgraduate School. Sec. 604. Reimbursement of qualifying spouse relicensing costs and business costs. Sec. 605. Noncompetitive eligibility for Federal employment. Sec. 606. United States Merchant Marine Career Retention Program. Subtitle B--Workforce Pipeline Sec. 611. Maritime workforce promotion and recruitment. Sec. 612. Centers of Excellence for Domestic Maritime Workforce Training and Education. Sec. 613. Maritime Career and Technical Education Advisory Committee. Sec. 614. Military candidates to Mariner Careers Recruitment Exchange. Sec. 615. Maritime worker data collection. Sec. 616. Military to maritime transition. Sec. 617. Early maritime education and youth involvement. Sec. 618. International scholarship for mariner and naval architecture exchanges. Subtitle C--United States Merchant Marine Academy and State Maritime Academies Sec. 621. Authorization of appropriations for United States Merchant Marine Academy infrastructure and facilities modernization. Sec. 622. United States Merchant Marine Academy. Sec. 623. Retirement service credit for service as a midshipman at the United States Merchant Marine Academy. Sec. 624. State maritime academies. Sec. 625. Enforcement of service obligation requirements. Sec. 626. Fuel funding for training ships operated by State maritime academies. Sec. 627. State Maritime Academy Sea Term Scholarship Programs. Sec. 628. Naval joint exercise involvement for training ships operated by State maritime academies. Subtitle D--Maritime Credentialing Modernization Sec. 631. Merchant mariner credentialing modernization. Sec. 632. Revising merchant mariner deck training requirements. Sec. 633. Inspections for transportation security. Sec. 634. Renewal of merchant mariner licenses and documents. Sec. 635. Merchant seamen licenses, certificates, and documents; manning of vessels. Sec. 636. Reactivation of expired license. TITLE VII--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986 Sec. 701. United States Vessel Investment credit. Sec. 702. Certain payments for maritime security excluded from gross income. Sec. 703. Elimination of 30-day limitation on domestic operations. Sec. 704. Qualifying shipping activities. Sec. 705. Qualifying vessel. Sec. 706. Credit for construction of shipyard facilities. Sec. 707. Tax incentives relating to merchant marine capital construction funds. Sec. 708. Exemption of student incentive payment agreements from gross income. Sec. 709. Maritime fuel tax parity. Sec. 710. Treatment of maritime prosperity zones as opportunity zones. SEC. 2. FINDINGS. Congress finds the following: (1) Strategic sealift, made up of Government and commercial vessels and mariners, is a critical capability for executing the maritime defense strategy and the wartime and peacetime economy of the United States. (2) Ensuring a modern and ready capability will require significant investment, policy prioritization, and the innovation of the people of the United States. (3) The worldwide ocean economy is worth between $3,000,000,000,000 and $6,000,000,000,000, according to the United Nations Conference on Trade and Development. Yet, vessels of the United States carry less than 2 percent of United States international commercial cargoes by weight. (4) The United States has fewer than 200 oceangoing vessels of the United States, of which only approximately 80 vessels participate in international commerce, compared with more than 5,500 Chinese documented vessels. (5) Bracketed by the Atlantic, Pacific, and Arctic oceans, the prosperity and security of the United States has always been tied to its position as a maritime Nation. Throughout human history, the strength of maritime nations has been directly tied to the strength of their maritime industry. The United States won two world wars on the back of a strong maritime industry. (6) Decades of apathy by the United States Government has harmed our strategically important maritime industry. Our weakened shipbuilding capacity, undersized maritime workforce, and shrinking fleet of shipping vessels means the United States relies on other nations to conduct international commerce and lacks the strategic sealift to support the United States military during wartime. (7) Today, there are just 20 shipbuilders in the United States capable of building oceangoing vessels--down from more than 80 at the end of the Second World War. (8) During World War II, the United States Merchant Marine powered the Allies to victory with more than 10,000 oceangoing vessels of the United States. Today there are just 80 vessels of the United States engaged in international trade. (9) The People's Republic of China has made investments in the maritime industry a strategic priority over the past 20 years. (10) As of 2023, shipyards in the United States had fewer than 5 shipbuilding orders for oceangoing vessels, while shipyards in the People's Republic of China had more than 1,700 orders, according to BRS Group. According to the Office of Naval Intelligence, the People's Republic of China became the world's top shipbuilding and shipping nation, boasting 230 times more shipbuilding capacity than the United States. (11) With just 12,000 United States merchant mariners operating oceangoing vessels, the United States may not have a sufficient number of mariners to fully power the strategic sealift vessels necessary in a future prolonged conflict. (12) The American Civil Society of Engineers assesses that the United States has a national maintenance backlog amounting to $125,000,000,000 for bridges, $163,000,000,000 for ports, and $6,800,000,000 for inland waterways. (13) The maritime industry is inherently international. Eighty percent of United States goods are imported by sea, of which 98 percent come into the United States on foreign documented vessels. Only 2 percent of such goods come into the United States on vessels of the United States, leaving the United States economy disproportionately dependent on oceangoing trade controlled by often adversarial foreign nations. The Nation's ability to provide services in both international and interstate commerce is critical to national and economic defense. (14) Since November 2023, vessels engaged in international commerce have been threatened by the Houthis, which has threatened global supply chains, increased costs, and required naval force protection operations in the Red Sea through the United States-led Operation Prosperity Guardian that formed in December 2023. (15) A fleet of commercial shipping vessels of the United States, crewed with citizen mariners, that is competitive in domestic and international trade enhances the United States military's readiness, allows the United States to more strategically compete with China, and underwrites the security and survival of the United States in times of crisis and war. SEC. 3. SENSE OF CONGRESS. It is the sense of Congress that the United States must-- (1) create a more favorable domestic and global maritime environment for vessels of the United States engaged in international commerce, shipbuilding, ship repair, maritime logistics, the maritime workforce, and naval power, contributing to assured access to the world's oceans free from coercion from strategic competitors and asymmetric adversaries; (2) increase domestic shipbuilding and ship repair capacity, with programs and policies that enable the growth of United States shipyards and the maritime industrial base, enhance military sealift capacity, expand the United States maritime workforce, and enhance national security; (3) revitalize the international fleet of vessels of the United States and foster a comparative advantage for the United States through targeted incentives and regulatory reforms to make the fleet competitive with international carriers and to gain a sustainable share of the global maritime market in order to bolster supply chains, strengthen economic security, and lower prices, while protecting the United States economy from economic coercion; (4) take all measures necessary to ensure that sufficient military, civil, and commercial resources will be available with assured access to meet defense deployment needs and essential economic activities for our Nation in times of crisis, war, or peace; (5) recognize that a vibrant commercial shipbuilding industry provides supply chain resiliencies and creates economies of scale that improve military, Coast Guard, and Government shipbuilding and support military operations through strategic sealift to defend the freedom of the seas; (6) nurture the comparative advantages of the United States to innovate to better compete in the global maritime marketplace, grow the maritime workforce, and create a favorable environment for investments to build modern maritime facilities and world-class academic institutions; (7) ensure better coordination between Federal agencies, including the Maritime Administration, the United States Coast Guard, the Department of Defense, the Federal Maritime Commission, and all other Federal agencies with a maritime nexus, to protect, regulate, and support the United States maritime industry, resolve disputes, and implement a whole-of- Government national maritime strategy; (8) recognize that, while a strong Navy is the surest guarantee of peace, building the Navy, sustaining the Navy, and supplying the Navy is founded on a robust commercial industrial base; (9) establish reliable long-term demand signals for, and investments in, oceangoing commercial vessels that are built in the United States, documented under the laws of the United States, and crewed by United States mariners; (10) evaluate past and present maritime efforts to take actions to revitalize the United States maritime industry; (11) strengthen the United States intercoastal and domestic trade fleet, which is the foundation upon which a revitalized United States-documented shipping and domestic shipbuilding industry will be built; (12) recognize the important role that the support craft, passenger, and fishing vessel fleet play in the United States maritime industry; (13) encourage the shipping of commercial cargo on vessels of the United States, with the aim of growing the size and carrying capacity of the international fleet of vessels of the United States; (14) grow the shipping capacity of vessels of the United States and guarantee United States Government cargo during peacetime; (15) develop a whole-of-Government effort to expand, develop, and protect the maritime workforce; (16) recognize the need for more workers in the maritime sector and stimulate growth in the United States maritime and shipbuilding industries, including by increasing access to early maritime education, commissioning national marketing campaigns to demonstrate how United States shipbuilding, United States-documented shipping, and maritime workers are critical to national security, and implementing workforce accelerator programs; (17) remove barriers to training mariners, including reevaluating Coast Guard training requirements regarding faculty credentials, instructional facility designs, sea time requirements, and other identified barriers, consistent with international treaty obligations; (18) expand and nurture a robust mariner workforce that enhances the national security and strategic sealift readiness of the United States by increasing the number of United States mariners and improving existing pathways and establishing new pathways for new, current, and former merchant mariners to go to sea; (19) recognize that the United States Merchant Marine Academy and our State maritime academies are critical to training the next generation