H.R. 10493

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10493 Introduced in House (IH)]

<DOC>

118th CONGRESS
2d Session
H. R. 10493

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

December 18, 2024

Mr. Kelly of Mississippi (for himself and Mr. Garamendi) 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 
Accountability, Education and the 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 
2024'' or the ``SHIPS for America Act of 2024''.
(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.
Sec. 104. Implementation plan.
Sec. 105. Federal Maritime Commission report on vessels of the United 
States.
TITLE II--MARITIME SECURITY TRUST FUND

Sec. 201. Apportionment of the Maritime Security Trust Fund.
Sec. 202. Regular tonnage taxes; 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. Maritime Security Program.
Sec. 403. Cable security fleet.
Sec. 404. Tanker Security Fleet.
Sec. 405. 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.
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. 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. Strategy on development of naval rearm-at-sea capability.
Sec. 514. 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 Marine 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 and shipbuilding recruiting campaign.
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. Military to mariner enrollment at a State Maritime Academy.
Sec. 626. Enforcement of service obligation requirements.
Sec. 627. Fuel funding for training ships operated by State maritime 
academies.
Sec. 628. State Maritime Academy Sea Term Scholarship Programs.
Sec. 629. 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. Technical amendments relating to references to seamen.
Sec. 635. Renewal of merchant mariner licenses and documents.
Sec. 636. Merchant seamen licenses, certificates, and documents; 
manning of vessels.
Sec. 637. Reactivation of expired license.
TITLE VII--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

Sec. 701. Establishment of the Maritime Security Trust Fund.
Sec. 702. United States Vessel Investment Credit.
Sec. 703. Certain payments for maritime security excluded from gross 
income.
Sec. 704. Elimination of 30-day limitation on domestic operations.
Sec. 705. Qualifying shipping activities.
Sec. 706. Qualifying vessel.
Sec. 707. Credit for construction of shipyard facilities.
Sec. 708. Tax incentives relating to merchant marine capital 
construction funds.
Sec. 709. Exemption of student incentive payment agreements from gross 
income.
Sec. 710. Maritime fuel tax parity.

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) With oceans on both sides, the United States has always 
been a maritime Nation. Throughout history, the strength of a 
maritime Nation has been directly tied to the strength of its 
maritime industry, and the United States won 2 world wars on 
the back of a strong maritime industry.
(6) Decades of neglect by the United States Government and 
private industry has weakened the shipbuilding capacity and 
maritime workforce of the United States, contributing to a 
declining fleet of shipping vessels of the United States to 
bring United States goods to market and 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, and commercial fleets 
participating in the United States peacetime economy enhance 
the United States military's readiness, allow 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;
(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 redundancies 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) 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;
(7) 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;
(8) evaluate past and present maritime efforts to take 
actions to revitalize the United States maritime industry;
(9) 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;
(10) recognize the important role that the support craft, 
passenger, and fishing vessel fleet play in the United States 
maritime industry;
(11) 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;
(12) grow the shipping capacity of vessels of the United 
States and guarantee United States Government cargo during 
peacetime;
(13) develop a whole-of-Government effort to expand, 
develop, and protect the maritime workforce;
(14) 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;
(15) 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;
(16) 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;
(17) 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;
(18) 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;
(19) 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;
(20) 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;
(21) 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;
(22) 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;
(23) harden critical maritime infrastructure and networks, 
and incrementally replace infrastructure built by foreign 
adversaries with domestic-built and allied-built 
infrastructure; and
(24) promote the values of the United States for quality of 
life, worker safety, environmental stewardship, maritime 
independence, freedom of the seas, 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;
(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 owned by, controlled by, or 
subject to the jurisdiction or 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 majority 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''; and
(2) by striking section 50401 and inserting 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) National security council.--The Maritime Security 
Advisor shall have a seat on the National Security Council.
``(4) 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 Commander of the Military 
Sealift Command.
``(ix) The Commander of Naval Sea Systems 
Command.
``(x) The chief United States delegate to 
the International Maritime Organization.
``(xi) The Under Secretary of Commerce for 
Oceans and Atmosphere.
``(xii) The Commissioner for Customs and 
Border Protection.
``(xiii) The Director of the Office of 
Management and Budget, or their designee.
``(xiv) The Secretary of Transportation, or 
their designee.
``(xv) The Secretary of Homeland Security, 
or their designee.
``(xvi) The Secretary of State, or their 
designee.
``(xvii) The Secretary of Labor, or their 
designee.
``(xviii) The Secretary of Agriculture, or 
their designee.
``(xix) The Secretary of Commerce, or their 
designee.
``(xx) The Secretary of the Treasury, or 
their designee.
``(xxi) The Administrator of the 
Environmental Protection Agency, or their 
designee.
``(xxii) The United States Trade 
Representative, or their designee.
``(xxiii) The Administrator of the United 
States Agency for International Development, or 
their designee.
``(xxiv) From the Department of Defense--
``(I) the Secretary of Defense, or 
their designee;
``(II) a representative of the 
Army, as appointed by the Secretary of 
Defense;
``(III) a representative of the Air 
Force, as appointed by the Secretary of 
Defense; and
``(IV) a representative of the 
Navy, as appointed by the Secretary of 
Defense.
``(B) Nonvoting members.--The individuals and 
representatives listed in clauses (xiii) through (xxiv) 
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 
2024 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 9512 of the Internal Revenue Code of 1986, 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) Meetings.--The Board shall meet not less frequently 
than quarterly.
``(4) 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 2025 through 2034, 
from the Maritime Security Trust Fund established under section 9512 of 
the Internal Revenue Code of 1986 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 
2024.''.
(b) Clarification; Transition.--
(1) Clarification.--The activities of the United States 
Committee on the Marine Transportation System shall be carried 
out by the Maritime Security Board.
(2) Transition.--The Secretary of Transportation, shall 
take such steps as may be necessary for the orderly transition 
from the United States Committee on the Marine Transportation 
System supported pursuant to section 50401 of title 46, United 
States Code, as in effect on the day the before the date of 
enactment of this Act, to the Maritime Security Board.
(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 2024).
``(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 2024, 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 2024) 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.

(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 needed for positions 
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 needed for positions 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.

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. APPORTIONMENT OF THE MARITIME SECURITY TRUST FUND.

(a) In General.--Chapter 505 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 50505. Apportionment of the Maritime Security Trust Fund
``(a) Administrative Expenses.--There is authorized to be 
appropriated from the Maritime Security Trust Fund--
``(1) $30,000,000 to the Secretary of Transportation for 
administrative expenses of the Maritime Administration to 
administer subtitle V, for each of fiscal years 2025 through 
2034;
``(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, for each of 
fiscal years 2025 through 2034; and
``(3) $2,000,000 to the Federal Maritime Commission for 
administrative expenses of the Federal Maritime Commission to 
administer subtitle IV.
``(b) Merchant Marine of the United States.--Amounts in the 
Maritime Security Trust Fund shall be available for programs or 
activities associated with maintaining the merchant marine of the 
United States, which shall include--
``(1) the United States Merchant Marine Academy, as 
authorized under chapter 513;
``(2) the State maritime academy support program under 
chapter 515;
``(3) the National Security Multi-Mission Vessel program, 
as authorized under section 3505 of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130 
Stat. 2776);
``(4) fuel funding for training ships operated by the State 
maritime academies, as authorized under section 51504;
``(5) the Strategic Commercial Fleet, as authorized under 
chapter 536;
``(6) the loan guarantee program, as authorized under 
section 53702;
``(7) the Shipbuilding Financial Incentives Program, as 
authorized under section 53801;
``(8) assistance to small shipyards and for maritime 
training programs, as authorized under section 54101;
``(9) the port infrastructure development program, as 
authorized under section 54301;
``(10) financing the transportation of agricultural 
products, as authorized under section 55316;
``(11) the United States Center for Maritime Innovation, as 
authorized under section 50307;
``(12) reimbursement of qualifying spouse relicensing costs 
and business costs, as authorized under section 52103;
``(13) the United States Merchant Marine Career Retention 
Program, as authorized under section 52105;
``(14) the maritime and shipbuilding recruiting campaign, 
as authorized under section 611 of the SHIPS for America Act of 
2024;
``(15) the Centers of Excellence for Domestic Maritime 
Workforce Training and Education, as authorized under section 
51706;
``(16) maritime worker data collection, as authorized under 
section 615 of the SHIPS for America Act of 2024;
``(17) international scholarships for mariner and naval 
architecture exchanges, as authorized under section 618 of the 
SHIPS for America Act of 2024; and
``(18) merchant mariner credentialing modernization, as 
authorized under section 631 of the SHIPS for America Act of 
2024.''.
(b) Clerical Amendment.--The table of sections for chapter 505 of 
title 46, United States Code, is amended by adding at the end the 
following:

``50505. Apportionment of the Maritime Security Trust Fund.''.

SEC. 202. REGULAR TONNAGE TAXES; PRESIDENTIAL SUSPENSION OF TONNAGE 
TAXES AND LIGHT MONEY.

(a) Regular Tonnage Taxes.--Section 60301(b) of title 46, United 
States Code, is amended 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) 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 2024);
``(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 2024); 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 2024) 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. International agreements.
``59105. Briefing on shipbuilding capacity.
``59106. Briefing on privileging fleet.
``59107. Report on privilege.
``59108. Report on requirements for sealift force deployment.
``59109. Assessment on marine infrastructure readiness.
``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 a 
fleet of vessels of the United States capable of providing and 
supporting strategic sealift--
``(1) sufficient to meet 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 peace, crisis, 
and war 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 a fleet 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 fleet of vessels of the United States to meet the 
minimum number of vessels needed to accomplish the objectives 
described under subsection (a).
``(2) Strategy components.--The strategy developed by the 
Maritime Security Board shall include--
``(A) annual goals for the number of vessels that 
will be brought into the fleet of vessels of the United 
States capable of providing strategic sealift utilizing 
the Maritime Security Fleet under chapter 531 of this 
title, the Cable Security Fleet under chapter 532 of 
this title, the Tanker Security Fleet under chapter 534 
of this title, the Strategic Commercial Fleet under 
chapter 536 of this title, and the Shipbuilding 
Financial Incentives program, consistent with the most 
recent Mobility Capability Requirements Study produced 
by United States Transportation Command; and
``(B) an assessment of domestic shipbuilding 
capacity and a strategy to increase the capacity of the 
domestic shipbuilding industry utilizing the 
Shipbuilding Financial Incentives program.
``(3) National maritime strategy.--The strategy developed 
by the Maritime Security Board under paragraph (1) shall be 
consistent with the National Maritime Strategy developed under 
section 50114.
``(d) Report Required.--
``(1) In general.--Upon completion, the Maritime Security 
Board shall transmit to the appropriate committees of Congress 
a summary of the strategy developed under subsection (c), with 
a classified annex as necessary.
``(2) Definition.--In this part, the term `appropriate 
committees of Congress' has the meaning given that term in 
section 4 of the SHIPS for America Act of 2024.
``Sec. 59102. Procurement, maintenance, and operation
``(a) Statement of Policy.--The Maritime Administrator, in 
coordination with the Secretary of Defense and the Secretary of 
Homeland Security, shall build, acquire, maintain, coordinate, support, 
and operate a sufficient and privileged fleet of vessels of the United 
States with commercial and military sealift capability.
``(b) Supplemental Capability.--In developing sealift capability 
under this part, the Secretary of Transportation and the Secretary of 
Defense shall continue to operate a sufficient Maritime Security Fleet 
under chapter 531 of this title, a Cable Security Fleet under chapter 
532 of this title, a Tanker Security Fleet under chapter 534 of this 
title, the Strategic Commercial Fleet under chapter 536 of this title, 
a Military Sealift Command of the Department of the Navy, and a Ready 
Reserve Force component of the National Defense Reserve Fleet under 
section 57100 of this title, to provide capacity and resiliency for 
unilateral United States strategic sealift in peace, crisis, and war.
``(c) Judicial Review.--No court shall have jurisdiction to review 
decisions made by the Maritime Administrator, the Secretary of Defense, 
or the Secretary of Homeland Security with respect to this section.
``Sec. 59103. Sealift prioritization
``(a) In General.--In building, acquiring, maintaining, 
coordinating, supporting, and operating a fleet of vessels capable of 
providing sealift capacity during wartime and crisis, the Maritime 
Administrator, in coordination with the Secretary of Defense, shall 
ensure the availability of vessels, in the following order of priority:
``(1) Commercial vessels of the United States.
``(2) Vessels of the United States that are owned and 
operated by the United States Government.
``(3) Vessels of countries that are defense treaty allies 
of the United States.
``(4) Vessels of countries that are strategic partners of 
the United States.
``(b) Judicial Review.--No court shall have jurisdiction to review 
decisions made by the Maritime Administrator or the Secretary of 
Defense with respect to this section.
``Sec. 59104. International agreements
``(a) In General.--To support the Secretary of Defense and the 
Secretary of Transportation in building, acquiring, maintaining, 
coordinating, supporting, and operating a fleet with sealift capability 
under this part, the Maritime Administrator, in coordination with the 
Secretary of State and the Secretary of Defense, shall identify 
opportunities to establish and update agreements with treaty allies and 
strategic partners of the United States to--
``(1) meet wartime sealift requirements of such allies and 
partners;
``(2) augment the strategic sealift capabilities of the 
United States during crisis and war; and
``(3) support the maritime industries of both the United 
States and treaty allies and strategic partners.
``(b) Report.--Not later than March 1, 2025, the Maritime 
Administrator, in coordination with the Secretary of State and the 
Secretary of Defense, shall provide to Congress an evaluation of the 
status of agreements described in subsection (a), including--
``(1) an assessment of international agreements described 
in such subsection and recommendations for updating such 
agreements to reflect the global security environment; and
``(2) an assessment of the extent to which such 
international agreements include the vessels owned by citizens 
of these treaty allies and strategic partners.
``Sec. 59105. Briefing on shipbuilding capacity
``(a) In General.--Not later than March 1, 2025, the Secretary of 
Transportation and the Secretary of Defense shall brief the appropriate 
committees of Congress on the capacity of the United States 
shipbuilding industry to meet peacetime and wartime requirements to 
build, maintain, and repair a fleet of vessels of the United States 
capable of providing strategic sealift.
``(b) Contents.--
``(1) In general.--In briefing the appropriate committees 
of Congress under subsection (a), the Secretary of 
Transportation and the Secretary of Defense shall include an 
assessment and recommendations for improving the critical 
shipbuilding infrastructure, workforce recruitment, 
development, and retention, and critical supply chains and 
critical repair parts of the United States, including ways in 
which allies and partners can contribute or share best 
practices.
``(2) Implementation.--The Maritime Security Advisor shall, 
in addition to the assessment under paragraph (1), provide an 
assessment on the effects of the Goldwater-Nichols Department 
of Defense Reorganization Act of 1986 (Public Law 99-433) and 
how implementation of such Act may affect shipbuilding 
processes of the Department of the Navy.
``Sec. 59106. Briefing on privileging fleet
``(a) In General.--Not later than March 1, 2025, the Secretary of 
Transportation, in coordination with the Secretary of Homeland 
Security, the Secretary of State, the Secretary of Commerce, and the 
Federal Maritime Commission, shall brief the appropriate committees of 
Congress on available options for establishing privileges for vessels 
of the United States operating in foreign commerce.
``(b) Contents.--In briefing Congress under subsection (a), the 
Secretary of Transportation shall provide recommendations for potential 
incentives for civil, commercial, and government entities, including 
allies and partners, to ship goods on vessels of the United States.
``Sec. 59107. Report on privilege
``(a) In General.--Not later than March 1, 2025, the Secretary of 
Transportation, in coordination with the Secretary of Commerce, the 
Chair of the Federal Maritime Commission, and the Director of the 
Office of Management and Budget, shall submit to the appropriate 
committees of Congress a report including ways to ensure vessels of the 
United States operating in foreign commerce are privileged in 
regulation, taxation, fees, insurance, and policy compared to foreign 
vessels conducting trade with a United States domiciled entity, while 
remaining consistent with the international obligations of the United 
States.
``(b) Contents.--In submitting the report under subsection (a), the 
Secretary of Transportation shall include options for regulating trade 
with foreign vessels in order to sustain and grow the Maritime Security 
Fleet under chapter 531 of this title, the Cable Security Fleet under 
chapter 532 of this title, the Tanker Security Fleet under chapter 534 
of this title, the Strategic Commercial Fleet under chapter 536 of this 
title, and other vessels of the United States operating in foreign 
commerce.
``Sec. 59108. Report on requirements for sealift force deployment
``(a) In General.--Not later than March 1, 2025, the Secretary of 
Defense shall submit to the appropriate committees of Congress a 
report--
``(1) on the military sealift requirements of the Armed 
Forces of the United States; and
``(2) in consultation with the Secretary of Transportation, 
containing recommendations for how to maintain, improve, or 
expand 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 Ready Reserve Force component of the National 
Defense Reserve Fleet under section 57100 of this title, to 
meet the military sealift needs of the United States.
``(b) Contents.--The report under subsection (a) shall include an 
assessment of, and recommendations for how to enable, making the Ready 
Reserve Force component of the National Defense Reserve Fleet under 
section 57100 of this title active in trade through a public-private 
partnership that enables financing, building, manning, operating, 
maintaining, and repairing the vessels of such Fleet, while 
guaranteeing assured effective control and surge capacity in times of 
crisis or war.
``Sec. 59109. Assessment on marine infrastructure readiness
``(a) In General.--Not later than March 1, 2026, and every 2 years 
thereafter, the Secretaries of Defense, Homeland Security, Commerce, 
and Transportation shall provide the appropriate committees of Congress 
an assessment on--
``(1) the readiness and sufficiency of the marine 
infrastructure, shipping industry, and shipbuilding industry of 
the United States, and vessels of the United States, to meet 
the economic and national security strategic sealift needs of 
the United States and operate in a contested environment;
``(2) the vulnerability of the economy of the United States 
to coercion or control from strategic competitors of the United 
States through the ocean-going trades; and
``(3)(A) critical infrastructure and cybersecurity 
vulnerabilities in--
``(i) the maritime transportation system of the 
United States, including ports, shipyards, repair 
yards, inland waterways, and vessels of the United 
States; and
``(ii) foreign investment in marine infrastructure; 
and
``(B) how to reduce the risks of such vulnerabilities.
``(b) Secretary of State.--Not later than March 1, 2026, and every 
2 years thereafter, the Secretary of State shall provide the 
appropriate committees of Congress an assessment on--
``(1) arrangements and agreements between the United States 
and countries that are defense treaty allies for access to the 
global marine transportation infrastructure, such as ports, 
harbors, and waterways; and
``(2) assurances, arrangements, and agreements between the 
United States and countries that are defense treaty allies to 
augment United States sealift capabilities in times of crisis 
and war.''.
(b) Clerical Amendment.--The table of chapters for subtitle V of 
title 46, United States Code, is amended by adding at the end the 
following:

``Part H--Strategic Sealift''.

SEC. 302. NATIONAL FREIGHT STRATEGIC PLAN.

Section 70102(b) of title 49, United States Code, is amended--
(1) in paragraph (16), by striking ``and'' after the 
semicolon;
(2) in paragraph (17), by striking the period at the end 
and inserting ``; and''; and
(3) by adding at the end the following:
``(18) consideration of United States strategic sealift 
objectives and strategies established under section 59101 of 
title 46; and
``(19) consideration of maritime networks in multimodal 
freight corridors.''.

SEC. 303. FOREIGN SHIPPING PRACTICES; CONTROLLED CARRIERS.

(a) Foreign Shipping Practices.--Section 42301(b) of title 46, 
United States Code, is amended--
(1) in paragraph (2), by inserting ``or passengers'' after 
``transportation of cargo''; and
(2) in paragraph (5), by inserting ``or passengers'' after 
``carriage of cargo''.
(b) Controlled Carriers.--Chapter 407 of title 46, United States 
Code, is amended--
(1) in section 40701--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``or'' at 
the end;
(ii) in paragraph (2), by striking the 
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(3) arrange or provide passenger transportation at a fare 
that is below a just and reasonable level.'';
(B) in subsection (b), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'';
(C) in subsection (c), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare''; and
(D) in subsection (d), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'';
(2) in section 40702(b)--
(A) in the matter preceding paragraph (1), by 
striking ``rule, or regulation'' and inserting ``rule, 
regulation, or fare'';
(B) in paragraph (1), by striking ``rate or 
charge'' and inserting ``rate, charge, or fare''; and
(C) in paragraph (2), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'';
(3) in section 40703, by striking ``a rate, charge,'' and 
inserting ``a rate, fare, charge,''; and
(4) in section 40704--
(A) in subsection (a), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'';
(B) in subsection (b), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'';
(C) in subsection (c), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'' each place the term appears;
(D) in subsection (d)--
(i) in paragraph (1), by striking ``rule, 
or regulation'' and inserting ``rule, 
regulation, or fare'' each place the term 
appears; and
(ii) in paragraph (2), by striking ``rule, 
or regulation'' and inserting ``rule, 
regulation, or fare'' each place the term 
appears; and
(E) in subsection (e), by striking ``rule, or 
regulation'' and inserting ``rule, regulation, or 
fare'' each place the term appears.

TITLE IV--VESSELS OF THE UNITED STATES IN INTERNATIONAL COMMERCE

Subtitle A--Strategic Sealift Programs

SEC. 401. STRATEGIC COMMERCIAL FLEET.

(a) In General.--Part C of subtitle V of title 46, United States 
Code, is amended by inserting after chapter 535 the following:

``CHAPTER 536--STRATEGIC COMMERCIAL FLEET

``Sec.
``53601. Definitions.
``53602. Establishment of Strategic Commercial Fleet.
``53603. Operating agreements.
``53604. Payments.
``53605. National security requirements.
``53606. Regulations.
``Sec. 53601. Definitions
``In this chapter:
``(1) Administrator.--The term `Administrator' means the 
Maritime Administrator.
``(2) Appropriate committees of congress.--The term 
`appropriate committees of Congress' means--
``(A) the Committee on Armed Services, the 
Committee on Commerce, Science, and Transportation, and 
the Committee on Appropriations of the Senate; and
``(B) the Committee on Armed Services, the 
Committee on Transportation and Infrastructure, and the 
Committee on Appropriations of the House of 
Representatives.
``(3) Coastwise trade.--The term `coastwise trade' means 
commerce or trade that is subject to the requirements of 
section 55102.
``(4) Covered entity.--The term `covered entity' means--
``(A) any owner or operator of a vessel eligible 
under section 53602(d); or
``(B) a bid team consisting of--
``(i) an entity eligible under subparagraph 
(A);
``(ii) any shipyard of the United States 
with the ability, experience, financial 
resources, and other qualifications necessary 
for the construction or repair of a vessel 
eligible for inclusion in the Strategic 
Commercial Fleet; and
``(iii) any other 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 SHIPS for America Act of 2024.
``(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; and
``(ii) was constructed (or reconstructed) 
outside the United States; and
``(B) does not include a vessel that, prior to 
entry into the Fleet--
``(i) was owned or operated by a foreign 
entity of concern;
``(ii) is a vessel of a foreign country of 
concern;
``(iii) was constructed by a shipyard that 
was owned or operated by a foreign entity of 
concern or located in a foreign country of 
concern; or
``(iv) was registered as a vessel of a 
foreign country of concern at any time during 
the 3 years prior to entry into the Fleet.
``(9) United states built vessel.--The term `United States 
built vessel' means a vessel that is constructed in the United 
States (and, if reconstructed, reconstructed in the United 
States).
``(10) United states citizen trust.--The term `United 
States citizen trust' has the meaning given such term in 
section 53201.
``Sec. 53602. Establishment of Strategic Commercial Fleet
``(a) In General.--The Administrator, in consultation with the 
Secretary of Defense, shall establish a fleet, to be known as the 
`Strategic Commercial Fleet', of active, commercially viable, 
militarily useful, privately owned vessels to meet national defense and 
other security requirements and maintain a United States presence in 
international commercial shipping.
``(b) Number of Vessels.--The Administrator shall seek to select 
eligible vessels described in subsection (d) for the Fleet through an 
annual competitive selection process in accordance with the annual 
target number for the Fleet recommended by the Maritime Security Board 
under section 50401(b)(2)(B)(i). Through such annual selection process, 
the Administrator shall--
``(1) select for inclusion in the Fleet not fewer than 10 
vessels in the 12-month period that begins on the date that is 
2 years after the date of enactment of this section;
``(2) increase the number of vessels selected for inclusion 
in the Fleet annually such that not later than 5 years after 
such date of enactment, not fewer than 20 vessels are selected 
for such inclusion annually; and
``(3) ensure that the total number of vessels included in 
the fleet shall be not more than 250 vessels at any point in 
time.
``(c) Solicitation; Entry Into Fleet.--
``(1) Solicitation.--
``(A) In general.--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 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.
``(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 
2029, 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 2029, 
the Administrator may not enter into a new 
agreement or renew an existing 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 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 associated with operating 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 a vessel in the United States as 
compared to a fair and reasonable estimate of 
the cost of the construction of 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(3)(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) ensure 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) ensure that any vessel so selected 
will aid in the promotion and development of 
foreign commerce;
``(iii) confirm 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) confirm 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) ensure 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 of 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) at the time an operating agreement 
is entered into under section 53603, the vessel 
is eligible for documentation under chapter 121 
of this title;
``(2) the vessel is a United States built vessel or a 
qualified foreign-built vessel;
``(3) the vessel is--
``(A) a bulk carrier vessel;
``(B) a tanker vessel;
``(C) a roll-on/roll-off vessel;
``(D) a liquefied natural gas tanker vessel;
``(E) a container vessel;
``(F) a multi-purpose vessel;
``(G) a cable vessel (as defined in section 53201 
of this title);
``(H) a heavy-lift vessel; or
``(I) any other type of vessel determined 
appropriate by the Administrator, in consultation with 
the Maritime Security Board;
``(4) the vessel is operated (or will be operated) in 
providing transportation in foreign commerce;
``(5) the vessel meets the requirements of paragraph (1), 
(2), (3), or (4) of subsection (e);
``(6) the vessel--
``(A) is suitable for use by the United States for 
national defense or military purposes in time of war or 
national emergency, as determined by the Secretary of 
Defense;
``(B) is commercially viable, as determined by the 
Administrator; and
``(C) has dedicated space for the training of--
``(i) cadets of the Merchant Marine Academy 
consistent with the requirements of section 
51307(b);
``(ii) students of a State maritime 
academy, consistent with the requirements of 
section 51507; or
``(iii) participants in another workforce 
training program identified by the 
Administrator; and
``(7) the vessel will, for the period of an operating 
agreement under section 53603 that applies to the vessel, meet 
any other requirement determined appropriate by the 
Administrator.
``(e) Requirements Regarding Citizenship of Owners, Charterers, and 
Operators.--
``(1) Vessel owned and operated by section 50501 
citizens.--A vessel meets the requirements of this paragraph 
if, during the period of an operating agreement under this 
chapter that applies to the vessel, the vessel will be owned 
and operated by 1 or more persons that are citizens of the 
United States under section 50501.
``(2) Vessel owned by section 50501 citizen or united 
states citizen trust and chartered to documentation citizen.--A 
vessel meets the requirements of this paragraph if--
``(A) during the period of an operating agreement 
under this chapter that applies to the vessel, the 
vessel will be--
``(i) owned by a person that is a citizen 
of the United States under section 50501 of 
this title or that is a United States citizen 
trust; and
``(ii) demise chartered to a person--
``(I) that is eligible to document 
the vessel under chapter 121 of this 
title;
``(II) the chairman of the board of 
directors, chief executive officer, and 
a majority of the members of the board 
of directors of which are citizens of 
the United States under section 50501 
of this title, and are appointed and 
subjected to removal only upon approval 
by the Administrator; and
``(III) that certifies to the 
Administrator that there are no 
treaties, statutes, regulations, or 
other laws that would prohibit the 
covered entity for the vessel from 
performing its obligations under an 
operating agreement under this chapter;
``(B) in the case of a vessel that will be demise 
chartered to a person that is owned or controlled by 
another person that is not a citizen of the United 
States under section 50501 of this title, the other 
person enters into an agreement with the Administrator 
not to influence the operation of the vessel in a 
manner that will adversely affect the interests of the 
United States; and
``(C) the Administrator and the Secretary of 
Defense notify the appropriate committees of Congress 
that they concur with the certification required under 
subparagraph (A)(ii)(III) and have reviewed and agree 
that there are no other legal, operational, or other 
impediments that would prohibit the covered entity for 
the vessel from performing its obligations under an 
operating agreement under this chapter.
``(3) Vessel owned and operated by defense contractor.--A 
vessel meets the requirements of this paragraph if--
``(A) during the period of an operating agreement 
under this chapter that applies to the vessel, the 
vessel will be owned and operated by a person that--
``(i) is eligible to document a vessel 
under chapter 121 of this title;
``(ii) operates or manages other United 
States-documented vessels for the Secretary of 
Defense, or charters other vessels to the 
Secretary of Defense;
``(iii) has entered into a special security 
agreement for purposes of this paragraph with 
the Secretary of Defense;
``(iv) makes the certification described in 
paragraph (2)(A)(ii)(III); and
``(v) in the case of a vessel described in 
paragraph (2)(B), enters into an agreement 
referred to in that paragraph; and
``(B) the Administrator and the Secretary of 
Defense notify the appropriate committees of Congress 
that they concur with the certification required under 
subparagraph (A)(iv), and have reviewed and agree that 
there are no other legal, operational, or other 
impediments that would prohibit the covered entity for 
the vessel from performing its obligations under an 
operating agreement under this chapter.
``(4) Vessel owned by documentation citizen and chartered 
to section 50501 citizen.--A vessel meets the requirements of 
this paragraph if, during the period of an operating agreement 
under this chapter that applies to the vessel, the vessel will 
be--
``(A) owned by a person that is eligible to 
document a vessel under chapter 121; and
``(B) demise chartered to a person that is a 
citizen of the United States under section 50501.
``Sec. 53603. Operating agreements
``(a) In General.--The Administrator shall require, as a condition 
of including any vessel in the Fleet, that the covered entity for the 
vessel enter into an operating agreement under this section.
``(b) Requirements.--
``(1) In general.--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 by only 
United States mariners;
``(ii) the vessel shall be operated within 
the Fleet exclusively in foreign commerce and 
not in coastwise trade; and
``(iii) the covered entity will have in 
effect an emergency preparedness agreement 
described in section 53605 for the period of 
such agreement.
``(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) 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 
completeness, 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, military 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) Length 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 50 percent 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 subsection (b)(1)(B), if--
``(A) the Administrator terminated or did not renew 
the operating agreement under subsection (f); or
``(B) 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) Authority to transfer vessel.--
``(A) In general.--After a vessel is released from 
obligations under paragraph (1), the covered entity may 
transfer and register such vessel under a foreign 
registry that--
``(i) is acceptable to the Administrator 
and the Secretary of Defense, and allows the 
requisitioning of the vessel for title or use, 
notwithstanding section 56101 of this title; 
and
``(ii) is not a foreign country of concern.
``(B) Emergency acquisition of vessels.--If chapter 
563 of this title is applicable to a vessel after 
registration in a foreign registry described in 
subparagraph (A), then the vessel is available to be 
requisitioned by the Secretary of Transportation 
pursuant to such chapter.
``(i) Judicial Review.--No court shall have jurisdiction to review 
the Administrator's decision with respect to the award or non-award of 
an operating agreement issued under this chapter.
``Sec. 53604. Payments
``(a) In General.--An operating agreement under this chapter shall 
require that the Administrator make payments to the covered entity, in 
accordance with the milestones established under section 53603(c)(1) 
and the operating agreement under section 53603 and subject to the 
availability of appropriations under subsection (e).
``(b) Limitations.--Notwithstanding any other provision of this 
chapter, the Administrator shall not make any payment under this 
chapter for a vessel--
``(1) with respect to any day for which--
``(A) the vessel is not operated or maintained in 
accordance with an operating agreement under this 
chapter;
``(B) the vessel is under a charter to the United 
States Government; or
``(C) except as provided under subsection (c), the 
vessel is engaged in transporting military or other 
preference cargoes under section 55302(a), 55304, 
55305, or 55314 of this title, section 2631 of title 
10, or any other cargo preference law of the United 
States; or
``(2) that participates in the coastwise trade in violation 
of the operating agreement and section 53603(b)(1)(B).
``(c) Preference Cargos.--The Administrator may waive the 
requirement of subsection (b)(1)(C) to the extent, in the manner, and 
on the terms the Administrator prescribes, only if--
``(1) the Administrator, acting in the Administrator's 
capacity as Director of the National Shipping Authority, makes 
a determination of the nonavailability of qualified vessels of 
the United States that are not enrolled in the Strategic 
Commercial Fleet;
``(2) the Administrator 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; and
``(3) by not later than 7 days after issuing a waiver under 
this subsection, the Administrator notifies the appropriate 
committees of Congress and posts such waiver on a public 
website of the Maritime Administration.
``(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 9512 of the Internal Revenue Code of 
1986--
``(A) for fiscal year 2025, $150,000,000;
``(B) for fiscal year 2026, $300,000,000;
``(C) for fiscal year 2027, $550,000,000;
``(D) for fiscal year 2028, $800,000,000;
``(E) for fiscal year 2029, $1,000,000,000;
``(F) for fiscal year 2030, $1,200,000,000;
``(G) for fiscal year 2031, $1,400,000,000;
``(H) for fiscal year 2032, $1,600,000,000;
``(I) for fiscal year 2033, $1,900,000,000; and
``(J) for fiscal year 2034, $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.
``Sec. 53605. National security requirements
``(a) Emergency Preparedness Agreement Required.--The 
Administrator, in coordination with the Secretary of Defense, shall 
establish an emergency preparedness program under this section under 
which the program participant for an operating agreement under this 
chapter shall agree, as a condition of the operating agreement, to 
enter into an emergency preparedness agreement with the Administrator. 
The Administrator shall negotiate and enter into an emergency 
preparedness agreement with each program participant as promptly as 
practicable after the program participant has entered into the 
operating agreement.
``(b) Use of Existing Program.--The Administrator may use an 
existing emergency preparedness program, as of the date of enactment of 
the SHIPS for America Act of 2024, 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 of title 10), the program participant 
shall make available commercial transportation resources 
(including services) described in subsection (e) to the 
Secretary of Defense;
``(2) shall include such additional terms as may be 
established by the Administrator and the Secretary of Defense; 
and
``(3) shall allow for the modification or addition of terms 
upon agreement by the Administrator and the program participant 
and the approval by the Secretary of Defense.
``(d) Participation After Expiration of Operating Agreement.--The 
Administrator may not require, through an emergency preparedness 
agreement or an operating agreement, that a program participant covered 
by an operating agreement continue to participate in an emergency 
preparedness agreement after the operating agreement has expired 
according to its terms or is otherwise no longer in effect. After the 
expiration of an emergency preparedness agreement, a program 
participant may voluntarily continue to participate in the agreement.
``(e) Resources Made Available.--The commercial transportation 
resources to be made available under an emergency preparedness 
agreement shall include vessels or capacity in vessels, terminal 
facilities, management services, and other related services, or any 
agreed portion of such nonvessel resources for activation as the 
Secretary of Defense may determine to be necessary, seeking to minimize 
disruption of the program participant's service to commercial 
customers.
``(f) Compensation.--
``(1) In general.--The Administrator shall include in each 
emergency preparedness agreement provisions approved by the 
Secretary of Defense under which the Secretary of Defense shall 
pay fair and reasonable compensation for all commercial 
transportation resources provided pursuant to this section.
``(2) Specific requirements.--Compensation under this 
subsection--
``(A) shall not be less than the program 
participant's commercial market charges for like 
transportation resources;
``(B) shall be fair and reasonable considering all 
circumstances;
``(C) shall be provided from the time that a vessel 
or resource is required by the Secretary of Defense 
until the time it is redelivered to the program 
participant and is available to reenter commercial 
service; and
``(D) shall be in addition to and shall not in any 
way reflect amounts payable under section 53604 of this 
title.
``(g) Temporary Replacement Vessels.--Notwithstanding section 
55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 
10, or any other cargo preference law of the United States--
``(1) a program participant may operate or employ in 
foreign commerce a foreign vessel, or capacity in a foreign 
vessel, as a temporary replacement for a vessel of the United 
States or vessel of the United States capacity that is 
activated by the Secretary of Defense under an emergency 
preparedness agreement or a primary Department of Defense 
sealift-approved readiness program; and
``(2) such replacement vessel or vessel capacity shall be 
eligible during the replacement period to transport preference 
cargoes subject to sections 55302(a), 55304, 55305, and 55314 
of this title and section 2631 of title 10, to the same extent 
as the eligibility of the vessel or vessel capacity replaced.
``(h) Redelivery and Liability of the United States for Damages.--
``(1) In general.--All commercial transportation resources 
activated under an emergency preparedness agreement shall, upon 
termination of the period of activation, be redelivered to the 
program participant in the same good order and condition as 
when received, less ordinary wear and tear, or the Secretary of 
Defense shall fully compensate the program participant for any 
necessary repair or replacement.
``(2) Limitation on united states liability.--Except as may 
be expressly agreed in an emergency preparedness agreement, or 
as otherwise provided by law, the Government shall not be 
liable for disruption of a program participant's commercial 
business or other consequential damages to the program 
participant arising from the activation of commercial 
transportation resources under an emergency preparedness 
agreement.
``Sec. 53606. Regulations
``The Administrator and the Secretary of Defense may each prescribe 
rules as necessary to carry out their respective responsibilities under 
this chapter.''.
(b) Confirming Amendments.--Section 51307(b) of title 46, United 
States Code, is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``, or the'' and inserting 
``, the''; and
(ii) by inserting ``, or the Strategic 
Commercial Fleet under chapter 536 of this 
title'' before ``to--''; and
(B) in subparagraph (A), by striking ``or Tanker 
Security Fleet vessel'' and inserting ``Tanker Security 
Fleet vessel, or Strategic Commercial Fleet vessel''; 
and
(2) in paragraph (2), by striking ``or 534'' and inserting 
``534, or 536''.
(c) Clerical Amendment.--The table of chapters for subtitle V of 
title 46, United States Code, is amended by adding at the end the 
following:

``536. Strategic Commercial Fleet........................... 53601''.

SEC. 402. MARITIME SECURITY PROGRAM.

(a) Annual Payments.--Section 53106(a)(1) of title 46, United 
States Code, is amended--
(1) in subparagraph (C), by striking ``fiscal years 2022, 
2023, 2024, and 2025'' and inserting ``fiscal years 2022, 2023, 
and 2024''; and
(2) by striking subparagraphs (D) through (F) and inserting 
the following:
``(D) $6,500,000 for each of fiscal years 2025 and 
2026;
``(E) $6,675,000 for each of fiscal years 2027 and 
2028;
``(F) $6,855,000 for each of fiscal years 2029 and 
2030;
``(G) $7,040,000 for each of fiscal years 2031 and 
2032; and
``(H) $7,230,000 for each of fiscal years 2033 and 
2034.''.
(b) Cargo Preference.--Section 53105(a) of title 46, United States 
Code, is amended--
(1) in paragraph (2), by striking ``and'' after the 
semicolon;
(2) in paragraph (3), by striking the period at the end and 
inserting ``; and''; and
(3) by adding at the end the following:
``(4) except for the limitations established under 
subsection (d), the vessel shall receive priority consideration 
to carry military or other preference cargoes under section 
55305 or 55314 of this title, section 2631 of title 10, or any 
other cargo preference law of the United States, over vessels 
of the United States that are enrolled in other financial 
assistance programs established under chapters 532, 534, and 
536 of this part.''.
(c) Maritime Security Fleet.--
(1) 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, in case of crisis or war.
(2) Briefing.--After completion of the exercise under 
paragraph (1), the Commander shall submit to the appropriate 
committees of Congress a briefing on the results of the 
tabletop exercise under paragraph (1).
(3) Annual testing.--Beginning not later than 1 year after 
the briefing is submitted under paragraph (2), the Commander 
shall--
(A) carry out tabletop drills to test effective 
control of the Maritime Security Fleet under chapter 
531 of title 46, United States Code; and
(B) provide to the appropriate committees of 
Congress a briefing after each such drill on the 
results of such drill.
(d) Authorization of Appropriations.--Section 53111 of title 46, 
United States Code, is amended--
(1) in paragraph (3), by striking ``fiscal years 2022, 
2023, 2024, and 2025'' and inserting ``fiscal years 2022, 2023, 
and 2024''; and
(2) by striking paragraphs (4) through (6) and inserting 
the following:
``(4) $390,000,000 for each of fiscal years 2025 and 2026;
``(5) $400,500,000 for each of fiscal years 2027 and 2028;
``(6) $411,300,000 for each of fiscal years 2029 and 2030;
``(7) $422,400,000 for each of fiscal years 2031 and 2032; 
and
``(8) $433,800,000 for each of fiscal years 2033 and 
2034.''.

SEC. 403. CABLE SECURITY FLEET.

(a) Annual Payments.--Section 53206(a)(1) of title 46, United 
States Code, is amended by striking ``equal to $5,000,000 for each 
fiscal year 2021 through 2035'' and inserting ``equal to--
``(A) $6,500,000 for each of fiscal years 2025 and 
2026;
``(B) $8,000,000 for each of fiscal years 2027 and 
2028;
``(C) $9,500,000 for each of fiscal years 2029 and 
2030;
``(D) $10,500,000 for each of fiscal years 2031 and 
2032; and
``(E) $12,000,000 for each of fiscal years 2033 and 
2034.''.
(b) Assessment of Undersea Cable Repair Contingencies.--
(1) 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.
(2) Contents.--The assessment under paragraph (1) shall 
include--
(A) a description of preparedness to address a 
situation in which the cables of partner countries in 
both the Pacific and Atlantic Oceans are damaged or 
severed at or around the same time;
(B) a determination as to how long it would take 
for the Cable Security Fleet, in coordination with 
partner countries, to repair such cables; and
(C) the options available to provide connectivity 
in an emergency or crisis caused by, or related to, the 
damaging or severing of such cables.
(c) Authorization of Appropriations.--Section 53209 of title 46, 
United States Code, is amended--
(1) by striking ``section 53206, $10,000,000 for each of 
the fiscal years 2021 through 2035.''; and inserting the 
following: ``section 53206--
``(1) $13,000,000 for each of fiscal years 2025 and 2026;
``(2) $16,000,000 for each of fiscal years 2027 and 2028;
``(3) $19,000,000 for each of fiscal years 2029 and 2030;
``(4) $21,000,000 for each of fiscal years 2031 and 2032; 
and
``(5) $24,000,000 for each of fiscal years 2033 and 
2034.''.

SEC. 404. TANKER SECURITY FLEET.

(a) Payments.--Section 53406(a) of title 46, United States Code, is 
amended--
(1) by striking ``$6,000,000'' and inserting 
``$9,000,000.''; and
(2) by striking the last sentence.
(b) Authorization of Appropriations.--Section 53411 of title 46, 
United States Code, is amended by striking ``, and $120,000,000 for 
fiscal years 2024 through 2035'' and inserting ``, $120,000,000 for 
fiscal year 2024, and $180,000,000 for fiscal years 2025 through 
2035''.

SEC. 405. MODIFICATION TO DUTIES RELATING TO EQUIPMENT AND REPAIR OF 
VESSELS.

(a) In General.--Section 466 of the Tariff Act of 1930 (19 U.S.C. 
1466) is amended--
(1) in subsection (a), in the first sentence, by striking 
``50 per centum on the cost thereof in such foreign country'' 
and inserting ``70 percent of the cost thereof in such foreign 
country or, in the case of a foreign country of concern (as 
defined in section 4 of the SHIPS for America Act of 2024), 200 
percent of the cost thereof in such country''; and
(2) by adding at the end the following:
``(i) During the period beginning on the date of enactment of the 
SHIPS for America Act of 2024 and ending on December 31, 2034, the duty 
imposed under subsection (a) shall not apply to the cost of equipment, 
or any part of equipment, purchased for, or expenses of repair parts or 
materials to be used for, or repairs made in a foreign country, unless 
such country is a foreign country of concern (as defined in section 4 
of the SHIPS for America Act of 2024, on, a vessel engaged in foreign 
trade if the Maritime Administrator confirms that--
``(1) the vessel--
``(A) is participating in--
``(i) the Maritime Security Fleet under 
chapter 531 of title 46, United States Code;
``(ii) the Cable Security Fleet under 
chapter 532 of such title;
``(iii) the Tanker Security Fleet under 
chapter 534 of such title; or
``(iv) the Strategic Commercial Fleet under 
chapter 536 of such title; or
``(B) has a Voluntary Intermodal Sealift Agreement 
or Voluntary Tanker Agreement with the Maritime 
Administrator in effect; and
``(2) the owner or master of the vessel certifies to the 
Maritime Administrator in writing that a good faith effort was 
made to purchase equipment or carry out repairs in a shipyard 
of the United States.''.
(b) Report Required.--Not less than 2 years after the date of 
enactment of this Act, and every 2 years thereafter through December 
31, 2034, the Maritime Administrator shall submit to the appropriate 
committees of Congress a report--
(1) describing the number of vessels that paid the duties 
under section 466 of the Tariff Act of 1930 (19 U.S.C. 1466), 
and the location where the repairs described in such section 
occurred;
(2)(A) identifying shipyards of the United States that have 
capacity to carry out vessel repairs; and
(B) describing the extent to which vessels of the United 
States chose to conduct repairs in such shipyards during the 
period covered by the report;
(3) evaluating the effectiveness of section 466 of the 
Tariff Act of 1930 (19 U.S.C. 1466) in encouraging the repair 
of vessels of the United States in shipyards of the United 
States; and
(4) making recommendations for additional regulatory or 
legislative steps which could be taken to support the United 
States vessel repair industrial base.

Subtitle B--Cargo Preference

SEC. 411. UNITED STATES GOVERNMENT CARGO.

(a) Sense of Congress.--It is the sense of the Congress that--
(1) only the Maritime Administrator, acting in the 
Administrator's capacity as Director of the National Shipping 
Authority, has the authority to determine the non-availability 
of qualified capacity of vessels of the United States (referred 
to in this subsection as ``qualified United States flag 
capacity'') at fair and reasonable rates for commercial vessels 
of the United States to meet the requirements of section 55305 
or 55314 of title 46, United States Code;
(2) the requirements of section 55305 or 55314 of title 46, 
United States Code, may only be waived temporarily by the 
President, the Secretary of Defense, or the Secretary of 
Transportation during a declared emergency justifying such a 
temporary waiver, following a determination by the Maritime 
Administrator, acting in the Maritime Administrator's capacity 
as Director of the National Shipping Authority, of the non-
availability of qualified United States flag capacity at fair 
and reasonable rates for commercial vessels of the United 
States pursuant to section 55305(d) of title 46, United States 
Code; and
(3) nothing in title II of the Food for Peace Act (7 U.S.C. 
1721 et seq.) authorizes the Administrator of the United States 
Agency for International Development or the Secretary of 
Agriculture to waive the requirements of section 55305 or 55314 
of title 46, United States Code, without first obtaining--
(A) delegated authority from the President of the 
United States;
(B) an emergency declaration justifying such a 
temporary waiver, pursuant to section 55305(d) of title 
46, United States Code; and
(C) a determination by the Maritime Administrator, 
acting in the Maritime Administrator's capacity as 
Director of the National Shipping Authority, on the 
non-availability of qualified United States flag 
capacity at fair and reasonable rates for commercial 
vessels of the United States pursuant to section 
55305(d) of title 46, United States Code.
(b) Applicable Percentage.--
(1) In general.--Section 55305(a) of title 46, United 
States Code, is amended by striking ``at least 50'' and 
inserting ``100''.
(2) Effective date.--The amendment made by paragraph (1) 
shall take effect on the date that is 180 days after the date 
of enactment of this Act.
(c) Clarification.--Section 55305(d) of title 46, United States 
Code, is amended--
(1) in paragraph (1), by inserting ``a consultation with 
the Maritime Security Board'' after ``following''; and
(2) in paragraph (3)(B), by inserting ``Maritime Security 
Board and the'' after ``to the''.

SEC. 412. CARGO PREFERENCE IMPLEMENTATION REGULATIONS.

(a) Regulations and Guidance.--Not later than 180 days after the 
date of enactment of this Act, the Maritime Administrator, 
notwithstanding any other provision of law, regulation, or 
administrative order, shall--
(1) promulgate regulations under subchapter III of chapter 
5 of title 5, United States Code, to fully implement and ensure 
compliance with sections 55305, 55314, 55315, and 55316 of 
title 46, United States Code;
(2) issue interagency guidance to other Federal departments 
and agencies on how to administer the programs that are subject 
to such sections in accordance with those sections, as 
applicable; and
(3) publish such guidance in the Federal Register and on 
the website of the Maritime Administration.
(b) Consultation.--The Administrator may consult with the Food Aid 
Consultative Group established by section 205 of the Food for Peace Act 
(7 U.S.C. 1725) in carrying out this section.
(c) Repeal of Earlier Regulatory Deadline.--Subsection (a) of 
section 3502 of the James M. Inhofe National Defense Authorization Act 
for Fiscal Year 2023 (46 U.S.C. 55305 note; Public Law 117-263), is 
repealed.

SEC. 413. CARGO PREFERENCE OVERSIGHT AND AUDIT.

Section 55301 of title 46, United States Code, is amended--
(1) in subsection (a)(2), by striking ``section 55305'' and 
inserting ``sections 55305, 55314, 55315, and 55316''; and
(2) by adding at the end the following:
``(d) Notification of Violation.--The Maritime Administrator 
shall--
``(1) upon receiving any credible information, as 
determined by the Administrator, that a Federal department or 
agency that administers a program covered by a report required 
under subsection (a) was not in compliance with the 
requirements of section 55305, 55314, 55315, or 55316 of this 
title (as applicable), notify the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives not later than 14 days after receiving such 
information; and
``(2) upon receiving any credible information, as 
determined by the Administrator, that a Federal department or 
agency that administers a program covered by a report required 
under subsection (a) was not in compliance with the 
requirements of section 2631 of title 10, United States Code, 
notify the Committee on Commerce, Science, and Transportation 
and the Committee on Armed Services of the Senate and the 
Committee on Transportation and Infrastructure and the 
Committee on Armed Services of the House of Representatives not 
later than 14 days after receiving such information.''.

SEC. 414. FINANCING THE TRANSPORTATION OF AGRICULTURAL PRODUCTS.

(a) In General.--Subchapter II of chapter 553 of title 46, United 
States Code, is amended by inserting after section 55315 the following:
``Sec. 55316. Financing the transportation of agricultural products
``(a) Financing of Increased Costs.--The Secretary of 
Transportation shall finance any increased ocean freight costs incurred 
in any fiscal year that result from the application of section 55305 of 
this title to the agricultural export programs specified in section 
55314(b) of this title.
``(b) Reimbursement of Increased Costs.--
``(1) In general.--The Secretary of Transportation shall 
reimburse the Secretary of Agriculture, the Commodity Credit 
Corporation, and the United States Agency for International 
Development 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 Secretary of Agriculture, the Corporation, and 
the United States Agency for International Development 
on exports of agricultural products under the 
agricultural export programs specified in section 
55314(b) of this title; exceeds
``(B) 20 percent of the value of the agricultural 
products and the cost of the ocean freight and ocean 
freight differential on which obligations are incurred 
by the Secretary of Agriculture, the Corporation, and 
the United States Agency for International Development 
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.--By not later than 180 days after the 
date of enactment of the SHIPS for America Act of 2024, the 
Secretary of Transportation shall enter into an interagency 
agreement with the head of each agency entitled to 
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) Authorization of Appropriations.--Each fiscal year, there is 
authorized to be appropriated, out of the Maritime Security Trust Fund 
established under section 9512 of the Internal Revenue Code of 1986, an 
amount sufficient to reimburse the Secretary of Transportation for the 
costs incurred under this section, including administrative 
expenses.''.
(b) Clerical Amendment.--The table of sections for subchapter II of 
chapter 553 of title 46, United States Code, is amended by inserting 
after the item relating to section 55315 the following:

``55316. Financing the transportation of agricultural products.''.

SEC. 415. IMPORTATION FROM CHINA ON AMERICAN SHIPS.

(a) In General.--Chapter 605 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 60508. Importation on American ships
``(a) In General.--Notwithstanding any other provision of law, not 
less than the covered percentage, as described in subsection (b), of 
covered goods by tonnage imported into the United States from a foreign 
port shall be imported on a vessel that is--
``(1) a vessel of the United States;
``(2) crewed by United States mariners; and
``(3) built in the United States.
``(b) Percentage.--A covered percentage under this section is the 
following:
``(1) One percent in the year that is 5 years after the 
date of enactment of this section.
``(2) Two percent in the year that is 6 years after the 
date of enactment of this section.
``(3) Three percent in the year that is 7 years after the 
date of enactment of this section.
``(4) Four percent in the year that is 8 years after the 
date of enactment of this section.
``(5) Five percent in the year that is 9 years after the 
date of enactment of this section.
``(6) Six percent in the year that is 10 years after the 
date of enactment of this section.
``(7) Seven percent in the year that is 11 years after the 
date of enactment of this section.
``(8) Eight percent in the year that is 12 years after the 
date of enactment of this section.
``(9) Nine percent in the year that is 13 years after the 
date of enactment of this section.
``(10) Ten percent in the year that is 14 years after the 
date of enactment of this section.
``(c) Application.--The requirement under subsection (a) shall be 
applied to any shipper importing goods into the United States that 
originates from a foreign port or place.
``(d) Fine for Failure to Comply.--
``(1) In general.--On an annual basis, the Maritime 
Administrator shall issue a fine to any entity failing to 
comply with the requirements under this section.
``(2) Amount.--The amount of a fine under this section 
shall be in an amount set by the Maritime Administrator that is 
greater than the difference in cost between--
``(A) the cost of employing a vessel of the United 
States that is built in the United States and crewed by 
United States mariners; and
``(B) the cost of employing a foreign vessel, 
flying a flag of convenience, manufactured 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) Covered goods.--The term `covered goods' means goods 
manufactured in the People's Republic of China.
``(2) Shipper.--The term `shipper' has the meaning given 
such term in section 40102 of this title.''.
(b) Clerical Amendment.--The table of sections for chapter 605 of 
title 46, United States Code, is amended by adding at the end the 
following:

``60508. Importation on American ships.''.

SEC. 416. PRIORITY FOR VESSELS OF THE UNITED STATES.

(a) In General.--Part D of subtitle V of title 46, United States 
Code, is amended by inserting after chapter 553 the following:

``CHAPTER 555--PRIORITY FOR VESSELS OF THE UNITED STATES

``Sec.
``55501. Priority for vessels of the United States.
``Sec. 55501. Priority for vessels of the United States
``(a) In General.--A vessel of the United States shall be given 
priority at any port in the United States, ahead of a waiting vessel of 
a foreign country.
``(b) Exception.--Notwithstanding subsection (a), if the Secretary 
of Transportation finds that it is in the national interest, the 
Secretary may eliminate this priority 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 2024, 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 adding at the end the 
following:

``555. Priority for vessels of the United States............ 55501''.

SEC. 417. MOVING CARGO ON VESSELS OF THE UNITED STATES.

(a) Assessment Required.--Not later than 180 days after the date of 
enactment of this Act, the Maritime Security Advisor, in consultation 
with the Secretary of Transportation, the Secretary of Commerce, the 
Chairman of the Federal Maritime Commission, and the United States 
Trade Representative, shall--
(1) conduct an assessment that identifies authorities 
available under current Federal law, as of the date of such 
identification, that may be utilized to incentivize the 
movement of commercial cargo on vessels of the United States in 
international commerce; and
(2) makes recommendations to the President to utilize such 
authorities.
(b) Inclusions.--The assessment required under subsection (a) shall 
include an evaluation of--
(1) tax benefits for taxpayers who ship goods aboard 
vessels of the United States;
(2) modifications to import and export duties for goods 
imported or exported aboard vessels of the United States;
(3) privileges for vessels of the United States that enable 
vessels of the United States to provide improved service 
relative to other vessels in international commerce; and
(4) any other authorities that would incentivize the 
movement of goods aboard vessels of the United States.
(c) Report to Congress.--Upon carrying out the assessment required 
under subsection (a), the Maritime Security Advisor shall submit to the 
appropriate committees of Congress--
(1) a list of the recommendations made under subsection 
(a)(2); and
(2) a list of additional actions that could be taken by 
Congress to further incentivize the movement of commercial 
cargo on vessels of the United States.
(d) Definition.--In this section, the term ``vessel of the United 
States'' has the meaning given the term in section 116 of title 46, 
United States Code.

SEC. 418. TRANSPORTATION REQUIREMENTS FOR CERTAIN EXPORTS SPONSORED BY 
THE SECRETARY OF AGRICULTURE.

Section 55314 of title 46, United States Code, is amended--
(1) by inserting before subsection (b) the following:
``(a) Applicability.--The requirements under section 55305 of this 
title shall apply with respect to the activities specified in 
subsection (b).'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``titles I, II, 
or III of'' after ``carried out under'';
(B) in paragraph (4), by striking ``agricultural 
commodities or their products'' and inserting 
``agricultural products'';
(C) in paragraph (5), by striking ``agricultural 
commodities or their products'' and inserting 
``agricultural products'';
(D) in paragraph (6), by striking ``agricultural 
commodities or their products'' and inserting 
``agricultural products'';
(E) in paragraph (7), by striking ``agricultural 
commodities'' and inserting ``agricultural products'';
(F) by redesignating paragraphs (4), (5), (6), and 
(7) as paragraphs (6), (7), (8), and (9), respectively; 
and
(G) by inserting after paragraph (3) the following:
``(4) carried out under the Food for Progress Act of 1985 
(7 U.S.C. 1736o);
``(5) carried out under the McGovern-Dole International 
Food for Education and Child Nutrition Program under section 
3107 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 15 1736o-1);''; and
(3) by adding at the end the following:
``(c) Submission to Congress.--The Secretary of Agriculture or the 
Administrator of the United States Agency for International 
Development, as applicable, shall, by October 15 of each year, submit 
to the appropriate committees of Congress (as defined in section 4 of 
the SHIPS for America Act of 2024)--
``(1) a written notice of any waiver of the requirements of 
this section issued during the preceding fiscal year; and
``(2) the reasons for granting such waiver and how such 
waiver meets the requirements of this section and section 
55305(d).
``(d) Agricultural Product Defined.--In this section, the term 
`agricultural product' means any food product, including an 
agricultural commodity (as such term is defined in section 402 of the 
Food for Peace Act (7 U.S.C. 1732)), specialty crop (as such term is 
defined in section 3 of the Specialty Crops Competitiveness Act of 2004 
(7 U.S.C. 1621 note)), or processed food product, exported from the 
United States.''.

SEC. 419. CLARIFYING AMENDMENTS.

(a) Agricultural Commodities Emergency Assistance Clarification.--
Section 202(a) of the Food for Peace Act (7 U.S.C. 1722(a)) is amended 
by striking ``Notwithstanding'' and inserting ``Subject to the 
requirements of sections 55305 and 55314 of title 46, United States 
Code, and notwithstanding''.
(b) Administrative Provisions Clarification.--Section 407(b)(2)(A) 
of the Food for Peace Act (7 U.S.C. 1736a(b)(2)(A)) is amended by 
striking ``Notwithstanding'' and inserting ``Subject to the 
requirements of sections 55305 and 55314 of title 46, United States 
Code, and notwithstanding''.
(c) Emergency Food Security Program Clarification.--Section 
491(c)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2292(c)(1)) 
is amended by inserting ``and the requirements of sections 55305 and 
55314 of title 46, United States Code'' after ``section 492''.

SEC. 420. ENERGIZING AMERICAN SHIPBUILDING.

(a) National Policy on Strategic Energy Asset Export 
Transportation.--
(1) Requirement for transportation of exports of natural 
gas on vessels documented under laws of the united states.--
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
adding at the end the following:
``(g) Transportation of Exports of Natural Gas on Vessels 
Documented Under Laws of the United States.--
``(1) Condition for approval.--Except as provided in 
paragraph (7), with respect to an application to export natural 
gas under subsection (a), the Commission shall include in the 
order issued for that application the condition that the person 
transport the natural gas on a vessel that meets the 
requirements described in paragraph (3).
``(2) Purpose.--The purpose of the requirement under 
paragraph (1) is to ensure that, of all natural gas exported by 
vessel in a calendar year, the following percentage is exported 
by a vessel that meets the requirements described in paragraph 
(3):
``(A) In each of the 7 calendar years following the 
calendar year in which this subsection is enacted, not 
less than 2 percent.
``(B) In each of the 8th and 9th calendar years 
following the calendar year in which this subsection is 
enacted, not less than 3 percent.
``(C) In each of the 10th and 11th calendar years 
following the calendar year in which this subsection is 
enacted, not less than 4 percent.
``(D) In each of the 12th and 13th calendar years 
following the calendar year in which this subsection is 
enacted, not less than 6 percent.
``(E) In each of the 14th and 15th calendar years 
following the calendar year in which this subsection is 
enacted, not less than 7 percent.
``(F) In each of the 16th and 17th calendar years 
following the calendar year in which this subsection is 
enacted, not less than 9 percent.
``(G) In each of the 18th and 19th calendar years 
following the calendar year in which this subsection is 
enacted, not less than 11 percent.
``(H) In each of the 20th and 21st calendar years 
following the calendar year in which this subsection is 
enacted, not less than 13 percent.
``(I) In the 22nd calendar year after the calendar 
year in which this subsection is enacted and each 
calendar year thereafter, not less than 15 percent.
``(3) Requirements for vessels.--A vessel meets the 
requirements described in this paragraph--
``(A) with respect to each of the 5 calendar years 
following the calendar year in which this subsection is 
enacted--
``(i) if--
``(I) the vessel is documented 
under the laws of the United States; 
and
``(II) with respect to any retrofit 
work necessary for the vessel to export 
natural gas--
``(aa) such work is done in 
a shipyard in the United 
States; and
``(bb) any component of the 
vessel listed in paragraph (4) 
that is installed during the 
course of such work is 
manufactured in the United 
States; or
``(ii) if--
``(I) the vessel is built in the 
United States;
``(II) the vessel is documented 
under the laws of the United States;
``(III) all major components of the 
hull or superstructure of the vessel 
are manufactured (including all 
manufacturing processes from the 
initial melting stage through the 
application of coatings for iron or 
steel products) in the United States; 
and
``(IV) the components of the vessel 
listed in paragraph (4) are 
manufactured in the United States; and
``(B) with respect to the 6th calendar year 
following the calendar year in which this subsection is 
enacted, and each calendar year thereafter, if the 
vessel meets the requirements of subparagraph (A)(ii).
``(4) Components.--The components of a vessel listed in 
this paragraph are the following:
``(A) Air circuit breakers.
``(B) Welded shipboard anchor and mooring chain.
``(C) Powered and non-powered valves in Federal 
Supply Classes 4810 and 4820 used in piping.
``(D) Machine tools in the Federal Supply Classes 
for metal-working machinery numbered 3405, 3408, 3410 
through 3419, 3426, 3433, 3438, 3441 through 3443, 
3445, 3446, 3448, 3449, 3460, and 3461.
``(E) Auxiliary equipment for shipboard services, 
including pumps.
``(F) Propulsion equipment, including engines, 
propulsion motors, reduction gears, and propellers.
``(G) Shipboard cranes.
``(H) Spreaders for shipboard cranes.
``(I) Rotating electrical equipment, including 
electrical alternators and motors.
``(J) Compressors, pumps, and heat exchangers used 
in managing and re-liquefying boil-off gas from 
liquefied natural gas.
``(5) Waiver authority.--The Commission may waive the 
requirement under clause (i)(II)(bb) or (ii)(IV), as 
applicable, of paragraph (3)(A) with respect to a component of 
a vessel if the Maritime Administrator determines that--
``(A) application of the requirement would--
``(i) result in an increase of 25 percent 
or more in the cost of the component of the 
vessel; or
``(ii) cause unreasonable delays to be 
incurred in building or retrofitting the 
vessel; or
``(B) such component is not manufactured in the 
United States in sufficient and reasonably available 
quantities of a satisfactory quality.
``(6) Opportunities for credentialed merchant mariners.--
Except as provided in paragraph (7), the Commission shall 
include, in any order issued under subsection (a) that 
authorizes a person to export natural gas, a condition that the 
person provide opportunities for individuals with a merchant 
mariner credential, as defined in section 2101 of title 46, 
United States Code, to receive experience and training 
necessary to become credentialed in working on a vessel 
transporting natural gas.
``(7) Exception.--The Commission may not include in any 
order issued under subsection (a) authorizing a person to 
export natural gas to a nation with which there is in effect a 
free trade agreement requiring national treatment for trade in 
natural gas a condition described in paragraph (1), or a 
condition described in paragraph (6), if the United States 
Trade Representative certifies to the Commission, in writing, 
that such condition would violate obligations of the United 
States under such free trade agreement.
``(8) Use of federal information.--In carrying out 
paragraph (1), the Commission--
``(A) shall use information made available by--
``(i) the Energy Information 
Administration; or
``(ii) any other Federal agency or entity 
the Commission determines appropriate; and
``(B) may use information made available by a 
private entity only if applicable information described 
in subparagraph (A) is not available.''.
(2) Conforming amendment.--Section 3(c) of the Natural Gas 
Act (15 U.S.C. 717b(c)) is amended by striking ``or the 
exportation of natural gas'' and inserting ``or, subject to 
subsection (g), the exportation of natural gas''.
(b) Crude Oil.--Section 101 of title I of division O of the 
Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a) is amended--
(1) in subsection (b), by striking ``subsections (c) and 
(d)'' and inserting ``subsections (c), (d), and (f)''; and
(2) by adding at the end the following:
``(f) Transportation of Exports of Crude Oil on Vessels Documented 
Under Laws of the United States.--
``(1) In general.--Except as provided in paragraph (6), as 
a condition to export crude oil, the President shall require 
that a person exporting crude oil transport the crude oil on a 
vessel that meets the requirements described in paragraph (3).
``(2) Purpose.--The purpose of the requirement under 
paragraph (1) is to ensure that, of all crude oil exported by 
vessel in a calendar year, the following percentage is exported 
by a vessel that meets the requirements described in paragraph 
(3):
``(A) In each of the 7 calendar years following the 
calendar year in which this subsection is enacted, not 
less than 3 percent.
``(B) In each of the 8th, 9th, and 10th calendar 
years following the calendar year in which this 
subsection is enacted, not less than 6 percent.
``(C) In each of the 11th, 12th, and 13th calendar 
years following the calendar year in which this 
subsection is enacted, not less than 8 percent.
``(D) In the 14th calendar year following the 
calendar year in which this subsection is enacted and 
each calendar year thereafter, not less than 10 
percent.
``(3) Requirements for vessels.--A vessel meets the 
requirements described in this paragraph--
``(A) with respect to each of the 4 calendar years 
following the calendar year in which this subsection is 
enacted--
``(i) if--
``(I) the vessel is documented 
under the laws of the United States; 
and
``(II) with respect to any retrofit 
work necessary for the vessel to export 
crude oil--
``(aa) such work is done in 
a shipyard in the United 
States; and
``(bb) any component of the 
vessel listed in paragraph (4) 
that is installed during the 
course of such work is 
manufactured in the United 
States; or
``(ii) if--
``(I) the vessel is built in the 
United States;
``(II) the vessel is documented 
under the laws of the United States;
``(III) all major components of the 
hull or superstructure of the vessel 
are manufactured (including all 
manufacturing processes from the 
initial melting stage through the 
application of coatings for iron or 
steel products) in the United States; 
and
``(IV) the components of the vessel 
listed in paragraph (4) are 
manufactured in the United States; and
``(B) with respect to the 5th calendar year 
following the calendar year in which this subsection is 
enacted and each calendar year thereafter, if the 
vessel meets the requirements of subparagraph (A)(ii).
``(4) Components.--The components of a vessel listed in 
this paragraph are the following:
``(A) Air circuit breakers.
``(B) Welded shipboard anchor and mooring chain.
``(C) Powered and non-powered valves in Federal 
Supply Classes 4810 and 4820 used in piping.
``(D) Machine tools in the Federal Supply Classes 
for metal-working machinery numbered 3405, 3408, 3410 
through 3419, 3426, 3433, 3438, 3441 through 3443, 
3445, 3446, 3448, 3449, 3460, and 3461.
``(E) Auxiliary equipment for shipboard services, 
including pumps.
``(F) Propulsion equipment, including engines, 
propulsion motors, reduction gears, and propellers.
``(G) Shipboard cranes.
``(H) Spreaders for shipboard cranes.
``(I) Rotating electrical equipment, including 
electrical alternators and motors.
``(5) Waiver authority.--The President may waive the 
requirement under clause (i)(II)(bb) or clause (ii)(IV), as 
applicable, of paragraph (3)(A) with respect to a component of 
a vessel if the Maritime Administrator determines that--
``(A) application of the requirement would--
``(i) result in an increase of 25 percent 
or more in the cost of the component of the 
vessel; or
``(ii) cause unreasonable delays to be 
incurred in building or retrofitting the 
vessel; or
``(B) such component is not manufactured in the 
United States in sufficient and reasonably available 
quantities of a satisfactory quality.
``(6) Exception.--The President may not, under paragraph 
(1), condition the export of crude oil to a nation with which 
there is in effect a free trade agreement requiring national 
treatment for trade in crude oil if the United States Trade 
Representative certifies to the President, in writing, that 
such condition would violate obligations of the United States 
under such free trade agreement.
``(7) Opportunities for credentialed merchant mariners.--
The Maritime Administrator shall ensure that each exporter of 
crude oil by vessel provides opportunities for individuals with 
a merchant mariner credential, as defined in section 2101 of 
title 46, United States Code, to receive experience and 
training necessary to become credentialed in working on such 
vessels.
``(8) Use of federal information.--In carrying out 
paragraph (1), the President--
``(A) shall use information made available by--
``(i) the Energy Information 
Administration; or
``(ii) any other Federal agency or entity 
the Commission determines appropriate; and
``(B) may use information made available by a 
private entity only if applicable information described 
in subparagraph (A) is not available.''.
(c) Energy Information Administration Information.--The Secretary 
of Energy, acting through the Administrator of the Energy Information 
Administration (referred to in this section as the ``Secretary''), 
shall collect, and make readily available to the public on the internet 
website of the Energy Information Administration, information on 
exports by vessel of natural gas and crude oil, including--
(1) forecasts for, and data on, those exports for the 
calendar year following the calendar year in which this Act is 
enacted and each calendar year thereafter; and
(2) forecasts for those exports for multiyear periods after 
the date of enactment of this Act, as determined appropriate by 
the Secretary.

SEC. 421. SHIP AMERICA OFFICE.

(a) In General.--Chapter 553 of title 46, United States Code, is 
amended by adding at the end the following:

``Subchapter IV--Ship America Office

``Sec. 55341. Establishment of Ship America Office
``(a) Establishment.--The Maritime Administrator shall establish 
within the Maritime Administration an office to be known as the `Ship 
America Office'. The Maritime Administrator shall appoint the head of 
the Ship America Office (in this section referred to as the `Ship 
America Associate Administrator').
``(b) Duties.--The Ship America Associate Administrator shall have 
the following duties:
``(1) Providing assistance to private sector entities, 
Federal financial assistance recipients, Federal agencies, 
Federal contractors, and owners and operators of oceangoing 
vessels of the United States to facilitate the movement of 
commercial and government cargo on vessels of the United States 
in international commerce.
``(2) Maximizing compliance across Federal agencies with 
this chapter, section 2631 of title 10, United States Code, 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) 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.
``(5) 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.
``(6) 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.
``(7) 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 congressional committees (as defined in 
section 4 of the SHIPS for America Act of 2024) 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) Conforming Amendments.--The table of sections for chapter 553 
of title 46, United States Code, is amended by adding at the end the 
following:

``subchapter iv--ship america office

``55341. Establishment of Ship America Office.''.

Subtitle C--Regulatory Reform

SEC. 431. ALTERNATE STANDARDS.

(a) In General.--Chapter 33 of title 46, United States Code, is 
amended--
(1) by redesignating sections 3317 and 3318 as sections 
3318 and 3319, respectively; and
(2) by inserting after section 3316 the following:
``Sec. 3317. Alternate standards
``(a) In General.--Not later than 1 year after the date of 
enactment of this section, the Secretary, in consultation with the 
Maritime Administrator, shall establish alternate standards to allow 
self-propelled vessels providing oceangoing transportation that are not 
documented under chapter 121 of this title to receive a certificate of 
inspection if the vessel will become a documented vessel.
``(b) Requirements.--Under the program established under subsection 
(a), a self-propelled vessel used to provide oceangoing transportation 
that is not documented under chapter 121 of this title shall be 
eligible for a certificate of inspection if the Secretary determines 
that--
``(1) the owner of the vessel has agreed to apply to have 
the vessel documented under chapter 121 upon receiving the 
certificate;
``(2) at the time of the receipt of such certificate, the 
vessel is eligible for documentation under such chapter;
``(3) the vessel is classed by and designed in accordance 
with the rules of a classification society accepted by the 
Secretary;
``(4) the vessel complies with applicable international 
agreements and associated guidelines, as determined by the 
country in which the vessel was documented immediately before 
becoming documented under chapter 121;
``(5) the vessel has been assessed for cybersecurity and 
surveillance risks; and
``(6) the country in which the vessel was documented 
immediately before becoming documented under chapter 121 has 
not been identified by the Secretary as inadequately enforcing 
international vessel regulations as to that vessel.
``(c) Continued Eligibility for Certificate.--This section does not 
apply to a vessel after any date on which the vessel fails to comply 
with the applicable international agreements and associated guidelines 
referred to in subsection (b)(4).
``(d) Reliance on Classification Society.--
``(1) In general.--The Secretary may rely on a 
certification from the American Bureau of Shipping or, subject 
to paragraph (2), another classification society accepted by 
the Secretary to establish that a vessel is in compliance with 
the requirements of paragraphs (3), (4), and (6) of subsection 
(b) and of subsection (c).
``(2) Foreign classification society.--The Secretary may 
accept certification from a foreign classification society 
under paragraph (1) only--
``(A) to the extent that the government of the 
foreign country in which the society is headquartered 
provides access on a reciprocal basis to the American 
Bureau of Shipping; and
``(B) if the foreign classification society has 
offices and maintains records in the United States.
``(e) Rulemaking Procedure.--The Secretary may initiate a 
rulemaking procedure to implement this standard.
``(f) Savings Provision.--Nothing in this section shall be 
interpreted to affect requirements related to merchant seamen 
credentials under part E of subtitle II of this title or the 
requirements related to manning of vessels under part F of such 
subtitle.''.
(b) Clerical Amendment.--The table of sections for chapter 33 of 
title 46, United States Code, is amended by striking the items relating 
to sections 3317 and 3318 and inserting the following:

``3317. Alternate standards.
``3318. Fees.
``3319. Penalties.''.

SEC. 432. RULEMAKING COMMITTEE ON COMMERCIAL MARITIME REGULATIONS AND 
STANDARDS.

(a) Definitions.--In this section:
(1) Covered regulation.--The term ``covered regulation''--
(A) means a commercial regulation or standard 
issued by the Coast Guard relating to the operation of 
vessels in foreign commerce, including--
(i) vessel design and engineering 
standards;
(ii) merchant mariner training and 
credentialing; or
(iii) vessel operating and environmental 
standards; and
(B) does not include any commercial regulation or 
standard issued by the Coast Guard that exclusively 
applies to vessels in domestic commerce.
(2) Rulemaking committee.--The term ``rulemaking 
committee'' means the committee established under subsection 
(b).
(3) Secretary.--The term ``Secretary'' means the Secretary 
of the department in which the Coast Guard is operating.
(b) Establishment of Rulemaking Committee.--There is established, 
in the department in which the Coast Guard is operating, a rulemaking 
committee on commercial maritime regulations and standards to--
(1) review, and develop findings and recommendations 
regarding, the covered regulations; and
(2) provide to the Secretary a report on opportunities to 
review and update regulations governing vessel design and 
engineering, vessel and facility operation and environmental 
standards, and merchant mariner credentialing, in order to--
(A) revitalize the merchant marine; and
(B) better align, and limit redundancies between, 
the regulatory standards of the Coast Guard and the 
International Maritime Organization and international 
treaty requirements.
(c) Members.--
(1) Composition of rulemaking committee.--The Secretary 
shall appoint the following as members of the rulemaking 
committee:
(A) Each of the following Federal officers or 
employees, or their designees:
(i) The Maritime Security Advisor.
(ii) The Maritime Administrator.
(iii) The Commandant of the Coast Guard.
(iv) The Secretary of Commerce.
(v) The Administrator of the Environmental 
Protection Agency.
(vi) The Secretary of the Navy.
(vii) The Chair of the Federal Maritime 
Commission.
(viii) The chief United States delegate to 
the International Maritime Organization.
(B) Representatives from recognized classification 
societies, including the American Bureau of Shipping.
(C) Representatives of industry, including--
(i) owners and operators of vessels in 
domestic and foreign commerce of the United 
States;
(ii) shipbuilders; and
(iii) other representatives of industry the 
Secretary determines appropriate.
(D) Individuals with a merchant mariner credential, 
as defined in section 2101 of title 46, United States 
Code.
(E) Representatives of maritime labor 
organizations.
(F) Experts in maritime safety and regulatory 
matters.
(G) Other stakeholders the Secretary determines 
appropriate.
(2) Period of appointment; vacancies.--
(A) In general.--A member of the rulemaking 
committee shall be appointed for the life of the 
rulemaking committee.
(B) Vacancies.--A vacancy in the rulemaking 
committee--
(i) shall not affect the powers of the 
rulemaking committee; and
(ii) shall be filled in the same manner as 
the original appointment.
(3) Chairperson and vice chairperson.--The Secretary shall 
select a Chairperson and Vice Chairperson from among the 
members of the rulemaking committee.
(d) Meetings.--
(1) Initial meeting.--Not later than 180 days after the 
date of enactment of this Act, the Secretary shall convene the 
rulemaking committee for the first meeting of the rulemaking 
committee.
(2) Quorum.--A majority of the members of the rulemaking 
committee shall constitute a quorum, but a lesser number of 
members may hold hearings.
(e) Duties of Committee.--
(1) Considerations.--The rulemaking committee shall 
consider each of the following:
(A) How the covered regulations interact with and 
compare to the treaty requirements and regulations 
established by the International Maritime Organization, 
including comparisons and interactions on the basis 
of--
(i) safety;
(ii) cost;
(iii) enforceability and compliance; and
(iv) international competitiveness.
(B) The benefits and challenges vessel owners and 
operators and United States mariners encounter when 
complying with both regulations of the International 
Maritime Organization and the covered regulations.
(C) The role that covered regulations play in 
enhancing the size and strength of the merchant marine 
and the domestic and international fleet of the United 
States.
(D) Recommended changes to covered regulations, and 
regulatory frameworks, to better promote alignment with 
international standards and the standards of countries 
that are allies and partners, with a focus on--
(i) increasing opportunities for qualified 
mariners that enter the merchant marine and 
reducing the barriers that lead qualified 
mariners to leave the merchant marine;
(ii) increasing the number of vessels 
documented under the laws of the United States 
that are operating in domestic and foreign 
commerce;
(iii) enhancing United States leadership 
within the International Maritime Organization 
and other international treaty organizations 
with a focus on the maritime industry;
(iv) streamlining regulatory processes and 
processing timelines to minimize duplicative 
reviews and eliminate preventable delays; and
(v) maintaining and enhancing the safety 
and security of the merchant marine.
(E) Recommended changes to covered regulations and 
regulatory frameworks that govern mariner education 
training requirements, which may include--
(i) expanding the pool of qualified 
instructors for mariner training programs;
(ii) streamlining requirements related to 
training facility size and design to improve 
operational efficiencies at mariner training 
facilities, including requirements related to 
classroom size and design;
(iii) standardizing and streamlining 
training course and curriculum approval and 
evaluation to provide more certainty to mariner 
training programs; and
(iv) enhancing opportunities for mariner 
training programs to flexibly integrate sea-
time into course instruction, consistent with 
treaty requirements and regulations established 
by the International Maritime Organization.
(F) Any other matters the Secretary determines 
appropriate.
(2) Report.--Not later than 18 months after the date of 
enactment of this Act, the rulemaking committee shall submit to 
the Secretary a report that includes the findings and 
recommended changes to covered regulations of the rulemaking 
committee, as required under paragraph (1).
(f) Powers of Rulemaking Committee.--
(1) Hearings.--The rulemaking committee may hold such 
hearings, sit and act at such times and places, take such 
testimony, and receive such evidence as the rulemaking 
committee considers advisable to carry out this section.
(2) Information from federal agencies.--
(A) In general.--The rulemaking committee may 
secure directly from a Federal department or agency 
such information as the rulemaking committee considers 
necessary to carry out this section.
(B) Furnishing information.--On request of the 
Chairperson of the rulemaking committee, the head of 
the department or agency shall furnish the information 
to the rulemaking committee.
(g) Rulemaking Committee Personnel Matters.--
(1) No compensation.--A member of the rulemaking committee 
shall not be compensated for service on the rulemaking 
committee.
(2) Travel expenses.--A member of the rulemaking committee 
shall be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in the performance of services for the rulemaking committee.
(h) Administration.--Except as specified otherwise in this section, 
the rulemaking committee shall be treated as a committee established 
under chapter 151 of title 46, United States Code, for purposes of 
section 15109 of such title.
(i) Termination.--The rulemaking committee shall terminate on the 
earlier of--
(1) the date that is 90 days after the date on which the 
rulemaking committee submits the report under subsection 
(e)(2); or
(2) the date that is 7 years after the date on which the 
rulemaking committee is established.
(j) Duties of the Secretary.--The Secretary shall--
(1) not later than 30 days after receiving the rulemaking 
committee's report under subsection (e)(2), submit to the 
appropriate committees of Congress, and make publicly 
available, a copy of such report and the Secretary's views on 
the recommendations of the committee; and
(2) not later than 90 days after submitting the report 
under paragraph (1)--
(A) initiate a rulemaking activity and make such 
policy and guidance updates determined necessary by the 
Secretary to address the consensus recommendations 
reached by the rulemaking committee under subsection 
(e);
(B) submit a report to the appropriate committees 
of Congress identifying the recommendations of the 
rulemaking committee that require legislative changes; 
and
(C) submit a report to the Secretary of State 
identifying recommendations of the rulemaking committee 
that require changes to treaty requirements and 
regulations established by the International Maritime 
Organization, including recommendations that should 
inform the policy of the United States as a member of 
the International Maritime Organization.

SEC. 433. AMENDMENTS TO SHIPOWNERS' LIMITATION OF LIABILITY ACT OF 
1851.

(a) In General.--Section 30523 of title 46, United States Code, is 
amended--
(1) by striking subsection (a) and inserting the following:
``(a) Limit of Owner Liability.--
``(1) In general.--Except as provided in section 30524 of 
this title, the liability of--
``(A) the owner of a vessel of the United States 
for any claim, debt, or liability described in 
subsection (b) shall not exceed the value of the vessel 
and pending freight; and
``(B) the owner of a foreign vessel for any claim, 
debt, or liability described in subsection (b) shall 
not exceed the amount that is 10 times the value of the 
vessel and pending freight.
``(2) Multiple owners.--If a vessel has more than one 
owner, the proportionate share of the liability under paragraph 
(1) of any one such owner shall not exceed that owner's 
proportionate interest in the vessel and pending freight.''; 
and
(2) by striking subsection (c) and inserting the following:
``(c) Claims Not Subject to Limitation.--Subsection (a) does not 
apply to--
``(1) a claim for wages; or
``(2) with respect to the liability of an owner of a 
foreign vessel, a claim, debt, or liability arising from 
personal injury or wrongful death of a person who was not a 
crewmember or passenger of the foreign vessel at the time the 
injury (including fatal injury, if applicable) occurred.''.
(b) Amendment to Cessation of Certain Actions.--Section 30529(c) of 
title 46, United States Code, is amended by striking ``the matter in 
question'' and inserting ``a matter subject to limitation under section 
30523''.
(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 March 25, 2024.

TITLE V--SHIPBUILDING

Subtitle A--Shipbuilding Financial Incentives

SEC. 501. SHIPBUILDING FINANCIAL INCENTIVES.

(a) In General.--Part C of subtitle V of title 46, United States 
Code, is amended by inserting after chapter 537 the following:

``CHAPTER 538--SHIPBUILDING FINANCIAL INCENTIVES

``Sec. 53801. Shipbuilding financial incentives
``(a) Establishment.--The Maritime Administrator shall establish a 
program that, in accordance with the requirements of this section, 
provides Federal financial assistance to covered entities to--
``(1) aid in the construction of a vessel that shall be 
documented under the laws of the United States; or
``(2) incentivize a qualified shipyard investment.
``(b) Definitions.--In this section:
``(1) Appropriate committees of congress.--The term 
`appropriate committees of Congress' means the Committee on 
Commerce, Science, and Transportation and the Committee on 
Appropriations of the Senate and the Committee on Armed 
Services and the Committee on Appropriations of the House of 
Representatives.
``(2) Covered entity.--The term `covered entity' means--
``(A) any proposed vessel purchaser who is a 
citizen of the United States; or
``(B) any shipyard of the United States with the 
ability, experience, financial resources, and other 
qualifications to construct or repair a military vessel 
or a vessel to be used in the foreign commerce of the 
United States.
``(3) Foreign commerce.--The term `foreign commerce' 
means--
``(A) commerce or trade between the United States, 
its territories or possessions, or the District of 
Columbia, and a foreign country; and
``(B) commerce or trade between foreign countries.
``(4) Foreign country of concern; foreign entity of 
concern.--The terms `foreign country of concern' and `foreign 
entity of concern' have the meanings given such terms in 
section 4 of the SHIPS for America Act of 2024.
``(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;
``(III) a manufacturing equipment 
supplier; or
``(IV) a steel plate manufacturing 
facility;
``(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) Eligibility.--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, 
subcomponent suppliers, and steel plate 
manufacturing facilities 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) confirms that the vessel 
purchaser that received 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) confirms that any shipyard 
selected to 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;
``(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 applicant to 
review the status of a covered entity. The applicant 
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 may 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.--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 type of financial assistance award made under 
this section based on 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) finance the construction of a vessel to be 
built in the United States and documented under the 
laws of the United States;
``(B) support site development, construction, and 
modernization for qualified shipyard investments;
``(C) pay reasonable costs related to the operating 
expenses for a qualified shipyard investment, including 
specialized workforce, essential materials, and complex 
equipment maintenance, as determined by the 
Administrator; or
``(D) support workforce development for a shipyard 
of the United States.
``(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) will operate in an emerging industry or a new 
trade lane and will not compete with existing vessels 
of the United States; or
``(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.
``(3) Rule of construction.--Nothing in this subsection 
shall be construed to alter the requirements under section 
55102.
``(g) Clawback.--
``(1) Target dates.--For all awards to covered entities 
under this section, the Administrator shall, before the award 
is made, determine target dates 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 
dates, 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 dates, 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) Voluntary Intermodal Sealift Agreement.--
``(1) In general.--The Maritime Administrator shall require 
any vessel that is constructed with financial assistance under 
this section to enter into a Voluntary Intermodal Sealift 
Agreement or a Voluntary Tanker Agreement with the Maritime 
Administrator.
``(2) Condition.--The owner of any vessel that is 
constructed with financial assistance under this section and 
that has a Voluntary Intermodal Sealift Agreement or Voluntary 
Tanker Agreement with the Maritime Administrator shall agree to 
provide effective control of such vessel to the United States 
during--
``(A) a national emergency declared by Presidential 
proclamation; or
``(B) a period for which the President has 
proclaimed that the security of the national defense 
makes it advisable.
``(3) Compensation.--During a period described in paragraph 
(1), the owner of a vessel described in such paragraph shall be 
compensated for the use of the vessel by the United States at 
the rate the Administrator considers just compensation for the 
use of the vessel.
``(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; or
``(B) be provided to a foreign entity of concern or 
to support a foreign entity of concern.
``(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 9512 of the Internal Revenue Code of 
1986, $250,000,000 for each of fiscal years 2025 through 2034 to 
provide financial assistance to covered entities under this section, to 
remain available until expended.''.
(b) Clerical Amendment.--The table of chapters at the beginning of 
part C of subtitle V of title 46, United States Code, and at the 
beginning of subtitle V of such title, are each amended by inserting 
after the item relating to chapter 537 the following new item:

``538. Shipbuilding financial incentives.................... 53801''.
(c) Conforming Amendment.--Title V of the Act of June 29, 1936 (49 
Stat. 1995; chapter 858) is repealed.

SEC. 502. ASSISTANCE FOR SMALL SHIPYARDS.

Section 54101 of title 46, United States Code, is amended--
(1) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``; and'' and 
inserting a semicolon;
(B) in subparagraph (B), by striking the period and 
inserting ``; and''; and
(C) by adding at the end the following:
``(C) long-term industrial base growth that 
supports the national security and economic security 
needs of the merchant marine of the United States.''; 
and
(2) in subsection (i)--
(A) by inserting ``out of the Maritime Security 
Trust Fund established under section 9512 of the 
Internal Revenue Code of 1986'' before ``to the 
Administrator of the Maritime Administration''; and
(B) by striking ``for fiscal year 2021 to carry out 
this section $20,000,000'' and inserting ``$100,000,000 
for each of fiscal years 2025 through 2034''.

SEC. 503. FEDERAL SHIP FINANCING (TITLE XI) PROGRAM.

(a) Establishment of Revolving Loan Fund.--Section 53702 of title 
46, United States Code, is amended by adding at the end the following:
``(c) Establishment of Revolving Loan Fund.--Not later than 30 days 
after the date of enactment of the SHIPS for America Act of 2024, 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 9512 of the Internal Revenue Code of 1986, $100,000,000 for 
fiscal year 2025 to be available until expended to the revolving loan 
fund established under subsection (c).''.
(b) Funding Limits.--Section 53704 of title 46, United States Code, 
is amended--
(1) in subsection (a), by striking ``facilities.'' and 
inserting ``facilities, and not less than 50 percent of 
obligations guaranteed under this chapter shall be for projects 
that do not receive any payments or Federal financial 
assistance from financial assistance programs established under 
this part.''; and
(2) in subsection (c), by adding at the end the following:
``(5) Vessel of national interest.--The Administrator shall 
ensure that the system of risk categories under paragraph (2) 
takes into consideration whether a project subject to a 
guarantee under this chapter is a project to construct, 
reconstruct, or recondition a Vessel of National Interest.''.
(c) Eligible Purposes of Obligations.--Section 53706(a)(8) of title 
46, United States Code, is amended--
(1) by striking ``States.'' and inserting ``States that is 
required--''; and
(2) by adding at the end the following new subparagraphs:
``(A) for the vessel to be a vessel of the United 
States;
``(B) for the vessel to be issued a coastwise 
endorsement under chapter 121;
``(C) to convert a civilian vessel of the United 
States to a more useful military configuration;
``(D) for any vessel under contract to the Federal 
Government; or
``(E) for any United States-built vessel 
participating in--
``(i) the Maritime Security Program or the 
Emergency Preparedness Program under chapter 
531;
``(ii) the Cable Security Fleet under 
chapter 532;
``(iii) the Tanker Security Fleet under 
chapter 534;
``(iv) the Strategic Commercial Fleet under 
chapter 536;
``(v) the Shipbuilding Financial Incentive 
under chapter 538; or
``(vi) the National Defense Reserve Fleet 
under section 57100.''.
(d) Buy America.--Section 53733 of title 46, United States Code, is 
amended by adding at the end the following:
``(f) Buy America.--Section 54101(d)(2) shall apply to any funds 
obligated by the Administrator under this section.''.

SEC. 504. CONSTRUCTION RESERVE FUND.

(a) Definitions.--Section 53301(a) of title 46, United States Code, 
is amended--
(1) in paragraph (1), by striking ``a new vessel'' and 
inserting ``an eligible vessel'';
(2) in paragraph (2)--
(A) in the paragraph heading, by striking ``New 
vessel'' and inserting ``Eligible vessel'';
(B) in the matter preceding subparagraph (A), by 
striking ``new vessel'' and inserting ``eligible 
vessel''; and
(C) in subparagraph (A)--
(i) in clause (i), by striking ``after 
December 31, 1939'';
(ii) in clause (ii), by striking ``and'' 
after the semicolon;
(iii) by redesignating clause (iii) as 
clause (iv); and
(iv) by inserting after clause (ii), the 
following:
``(iii) operated in foreign commerce or 
domestic commerce of the United States or in 
the fisheries; and''; and
(3) by adding at the end the following:
``(3) Foreign commerce.--The term `foreign commerce' 
means--
``(A) commerce or trade between the United States, 
its territories or possessions, or the District of 
Columbia, and a foreign country; and
``(B) commerce or trade between foreign 
countries.''.
(b) Authority for Construction Reserve Funds.--Section 53302(a) of 
title 46, United States Code, is amended by striking ``or acquisition 
of a new vessel'' and inserting ``repowering, or acquisition of an 
eligible vessel''.
(c) Persons Eligible to Establish Funds.--Section 53303 of title 
46, United States Code, is amended--
(1) by striking the matter preceding paragraph (1) and 
inserting the following: ``A citizen of the United States may 
make an agreement with the Secretary of Transportation under 
this chapter to establish a construction reserve fund if that 
citizen--'';
(2) in paragraph (1), by striking ``in the foreign or 
domestic commerce of the United States'' and inserting 
``documented under the laws of the United States and operating 
in foreign commerce or domestic commerce of the United 
States'';
(3) in paragraph (2), by striking ``being operated in the 
foreign or domestic commerce of the United States'' and 
inserting ``documented under the laws of the United States and 
operating in foreign commerce or domestic commerce of the 
United States'';
(4) in paragraph (3), by striking ``in the foreign or 
domestic commerce of the United States'' and inserting 
``documented under the laws of the United States and operating 
in foreign commerce or domestic commerce of the United 
States'';
(5) in paragraph (4)--
(A) by striking ``being operated in the foreign or 
domestic commerce of the United States'' and inserting 
``documented under the laws of the United States and 
operating in foreign commerce or domestic commerce of 
the United States''; and
(B) by striking ``or'' after the semicolon;
(6) in paragraph (5)--
(A) by striking ``in the foreign or domestic 
commerce of the United States'' and inserting 
``documented under the laws of the United States to 
operate in foreign commerce or domestic commerce of the 
United States''; and
(B) by striking the period at the end and inserting 
``; or''; and
(7) by adding at the end the following:
``(6) commits, as a part of the agreement with the 
Secretary under this chapter, to construct, reconstruct, 
recondition, repower, or acquire, and operate, an eligible 
vessel by not later than 5 years after the date on which the 
construction reserve fund is established.''.
(d) Vessel Ownership.--Section 53304 of title 46, United States 
Code, is amended by striking ``constructed or acquired'' each place the 
term appears and inserting ``constructed, reconstructed, reconditioned, 
repowered, or acquired''.
(e) Basis for Determining Gain or Loss.--Section 53307 of title 46, 
United States Code, is amended--
(1) in the section heading, by striking ``new vessels'' and 
inserting ``eligible vessels'';
(2) by striking ``a new vessel'' and inserting ``an 
eligible vessel'';
(3) by striking ``the new vessel'' and inserting ``the 
eligible vessel'';
(4) by inserting ``repowered,'' after ``reconditioned,''; 
and
(5) by inserting ``repowering,'' after ``reconditioning,''.
(f) Obligation of Deposits.--Section 53310 of title 46, United 
States Code, is amended--
(1) in subsection (a)--
(A) by striking ``a new vessel'' each place the 
term appears and inserting ``an eligible vessel''; and
(B) in paragraph (1)(A), by striking ``or 
reconditioning'' and inserting ``, repowering, or 
reconditioning''; and
(2) by striking subsections (b) and (c) and inserting the 
following:
``(b) Additional Requirements for Certain Vessels.--In addition to 
the requirements of subsection (a)(1), for an eligible vessel not 
constructed under the construction-differential program or not bought 
from the Secretary of Transportation, construction shall commence with 
reasonable dispatch after the date of the construction contract, as 
determined by the Secretary of Transportation and certified by such 
Secretary to the Secretary of the Treasury.
``(c) Extensions.--The Secretary of Transportation may grant 
extensions of the period within which the deposits must be expended or 
obligated, except that such extensions may not be for a total of more 
than 15 years for the expenditure or obligation of deposits.''.
(g) Taxation of Deposits on Failure of Conditions.--Section 
53311(3) of title 46, United States Code, is amended by striking ``to 
the extent of 5 percent of completion''.
(h) Clerical Amendment.--The table of sections for chapter 533 of 
title 46, United States Code, is amended by striking the item relating 
to section 53307 and inserting the following:

``53307. Basis for determining gain or loss and for depreciating 
eligible vessels.''.

SEC. 505. CAPITAL CONSTRUCTION FUND.

(a) In General.--Chapter 535 of subtitle V of title 46, United 
States Code, is amended--
(1) in section 53501--
(A) by redesignating paragraphs (2), (3), (4), (5), 
(6), (7), (8), and (9), as paragraphs (3), (5), (7), 
(8), (9), (10), (11), and (12), respectively;
(B) by inserting after paragraph (1) the following:
``(2) Cargo handling equipment.--The term `cargo handling 
equipment' means any vehicle or land-based equipment (excluding 
marine container chassis, but including cargo-handling 
equipment that emits less than 1 gram of CO2(kWh)), and the 
associated marine terminal or port landside infrastructure, 
used at a marine terminal to lift or move cargo--
``(A) manufactured in the United States (including 
any territory or possession of the United States); or
``(B) manufactured outside of the United States, if 
such equipment is not produced in the United States in 
sufficient and reasonably available quantities or of a 
satisfactory quality as determined by the Secretary.'';
(C) by inserting after paragraph (3), as 
redesignated by subparagraph (A), the following:
``(4) Foreign commerce.--The term `foreign commerce' 
means--
``(A) commerce or trade between the United States, 
its territories or possessions, or the District of 
Columbia, and a foreign country; and
``(B) commerce or trade between foreign 
countries.'';
(D) by inserting after paragraph (5), as 
redesignated by subparagraph (A), the following:
``(6) Marine terminal.--The term `marine terminal' means 
wharves, bulkheads, quays, piers, docks, and other berthing 
locations and adjacent storage or adjacent areas and structures 
associated with the primary movement of cargo or materials from 
vessel to shore, or from shore to vessel, including structures 
which are devoted to receiving, handling, holding, 
consolidating, loading, or delivery of waterborne shipments, 
including areas devoted to the maintenance of the terminal or 
equipment.'' ;
(E) in paragraph (3)(A)(iii), as redesignated by 
subparagraph (A), by striking ``foreign or domestic 
trade of the United States'' and inserting ``foreign 
commerce or domestic trade of the United States''; and
(F) in paragraph (8)(A)(iii), as redesignated by 
subparagraph (A), by striking ``foreign or domestic 
trade of the United States'' and inserting ``foreign 
commerce or domestic trade of the United States'';
(2) in section 53503--
(A) by striking subsection (a) and inserting the 
following:
``(a) In General.--
``(1) Citizen agreements.--A citizen of the United States 
may make an agreement with the Secretary under this chapter to 
establish a capital construction fund for a vessel if that 
citizen--
``(A) owns or leases an eligible vessel; or
``(B) commits, as a part of such agreement, to 
build and operate an eligible vessel not later than 5 
years after establishing the capital construction fund.
``(2) Operator agreements.--An operator of a United States 
marine terminal may make an agreement with the Secretary under 
this chapter to establish a capital construction fund for the 
marine terminal.''; and
(B) by striking subsection (b), and inserting the 
following:
``(b) Allowable Purpose.--The purpose of the agreement shall be to 
provide--
``(1) replacement vessels, additional vessels, or 
reconstructed vessels, built in the United States and 
documented under the laws of the United States, for operation 
in the foreign commerce or domestic trade of the United States 
or in the fisheries of the United States; or
``(2) replacement cargo handling equipment, additional 
cargo handling equipment, or reconstructed cargo handling 
equipment for operation at marine terminals in the United 
States.'';
(3) in section 53504(b), by inserting ``or United States 
marine terminal'' after ``agreement vessel'';
(4) by striking section 53505 and inserting the following:
``Sec. 53505. Ceiling on deposits
``(a) Maximum Deposits.--The amount deposited in a capital 
construction fund for a taxable year may not exceed the amount 
specified in the agreement under section 53503(a), which shall be an 
amount that is related to a commitment to invest the revenue from the 
capital construction fund into funding the construction of new vessels 
or funding cargo handling equipment.
``(b) Revenue.--For the purposes of subsection (a), the revenue 
from the capital construction fund may include--
``(1) income attributable to the operation of the agreement 
vessel in foreign commerce or domestic trade or fisheries or 
the operation of a marine terminal in the United States;
``(2) the amount allowable as a deduction under section 167 
of the Internal Revenue Code of 1986 for the taxable year with 
respect to the agreement vessels or cargo handling equipment;
``(3) the net proceeds from the disposition of an agreement 
vessel or cargo handling equipment or insurance or indemnity 
attributable to the vessel or cargo handling equipment; and
``(4) the receipts from the investment or reinvestment of 
amounts held in the fund.
``(c) Reductions for Lessees.--For a lessee, the maximum amount 
that may be deposited for an agreement vessel under subsection (a) for 
any period shall be reduced by any amount the owner is required or 
permitted, under the capital construction fund agreement, to deposit 
for that period for the vessel under subsection (a).'';
(5) in section 53506--
(A) in subsection (a), by striking ``Except as 
provided in subsection (b), amounts in the fund may be 
invested only in interest-bearing securities approved 
by the Secretary.''; and
(B) in subsection (b), by striking ``With the 
approval of the Secretary, an agreed percentage (but 
not more than 60 percent) of the assets of the fund'' 
and inserting ``An agreed percentage of the assets of 
the fund'';
(6) in section 53509--
(A) by striking subsection (a), and inserting the 
following:
``(a) In General.--Subject to subsections (b) and (c), a withdrawal 
from a capital construction fund is a qualified withdrawal if it is 
made under the terms of the agreement and is for--
``(1) the acquisition, construction, repowering, or 
reconstruction of--
``(A) a qualified vessel or a barge or container 
that is part of the complement of a qualified vessel; 
or
``(B) cargo handling equipment; or
``(2) the payment of the principal on indebtedness incurred 
in the acquisition, construction, repowering, or reconstruction 
of--
``(A) a qualified vessel or a barge or container 
that is part of the complement of a qualified vessel; 
or
``(B) cargo handling equipment.'';
(B) by redesignating subsection (c) as subsection 
(e); and
(C) by inserting after subsection (b) the 
following:
``(c) Fully Automated Cargo Handling Equipment.--No withdrawals may 
be made from a capital construction fund to purchase fully automated 
cargo handling equipment that is remotely operated or remotely 
monitored with or without the exercise of human intervention or 
control, if the Secretary determines such equipment would result in a 
net loss of jobs within a marine terminal.
``(d) Prohibition on Certain Cranes.--No withdrawals may be made 
from a capital construction fund to purchase cranes manufactured in the 
People's Republic of China or by foreign entities of concern (as 
defined in section 4 of the SHIPS for America Act of 2024).'';
(7) in section 53510--
(A) in subsection (b), by inserting ``cargo 
handling equipment,'' after ``barge,'' both places the 
term appears;
(B) in subsection (c), by inserting ``cargo 
handling equipment,'' after ``barge,'' both places the 
term appears; and
(C) in subsection (d), by inserting ``cargo 
handling equipment,'' after ``barges,'';
(8) in section 53511(e)(1), by striking the table contained 
therein and inserting the following:
``If the amount remains in the fund The applicable percentage is-
at the close of the-
16th taxable year.................................. 20 percent 
17th taxable year.................................. 40 percent 
18th taxable year.................................. 60 percent 
19th taxable year.................................. 80 percent 
20th taxable year................................100 percent'';
and
(9) in section 53512(b)(1), by adding ``cargo handling 
equipment,'' after ``advanced''.
(b) Cargo Handling Equipment Availability.--The Secretary shall 
annually publish in the Federal Register a request for information 
regarding the availability of cargo handling equipment manufactured in 
the United States and shall share the results of such request for 
information with capital construction fund holders.

SEC. 506. ANTICIPATED COMMERCIAL VESSEL CONSTRUCTION SURVEY.

(a) In General.--Chapter 501 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 50115. Anticipated commercial vessel construction survey
``(a) Definition.--In this section, `commercial vessel of the 
United States' means a vessel that is documented under the laws of the 
United States, not less than 6,000 deadweight tons, and operated in the 
domestic trade of the United States or foreign commerce, and may 
include--
``(1) a bulk carrier vessel;
``(2) a tanker vessel;
``(3) a roll-on/roll-off vessel;
``(4) a liquefied natural gas tanker vessel;
``(5) a container vessel;
``(6) a multi-purpose vessel;
``(7) a cable vessel (as defined in section 53201);
``(8) a heavy-lift vessel; or
``(9) any other type of vessel determined appropriate by 
the Administrator, in consultation with the Maritime Security 
Board.
``(b) In General.--Not later than 180 days after the date of 
enactment of this section, and annually thereafter, the Maritime 
Administrator shall conduct a survey of owners, agents, or operators of 
commercial vessels of the United States to identify plans for the 
construction, maintenance, and modernization of commercial vessels of 
the United States.
``(c) Purpose.--The purpose of the survey conducted under this 
section is to inform the maritime industrial base of the future need 
for the construction of commercial vessels.
``(d) Inclusions.--In conducting the survey under this section, the 
Maritime Administrator shall collect the following information from 
owners, agents, or operators of commercial vessels of the United States 
who participate in the survey:
``(1) The number of commercial vessels of the United States 
the participant is looking to construct during the 10-year 
period beginning on the date on which the participant takes the 
survey.
``(2) The capabilities of the vessels described in 
paragraph (1) that the participant is seeking in constructing 
such vessels.
``(3) Estimated timelines for when the participant aims to 
place each such vessel into service.
``(4) The number of major repairs of commercial vessels of 
the United States and overhauls of such commercial vessels the 
participant is looking to carry out during the 10-year period 
described in paragraph (1).
``(5) The major components that a shipbuilder would need 
from industrial base suppliers to support the construction, 
overhaul, or repair of commercial vessels of the United States 
during such 10-year period.
``(6) Estimates for the capital expenditures the 
participant is planning to make for the construction, overhaul, 
or repair of commercial vessels of the United States during 
such 10-year period.
``(7) Any additional information the Maritime Administrator 
determines appropriate.
``(e) Participation.--The Administrator may not require any owner, 
agent, or operator of a commercial vessel of the United States to 
participate in the survey unless that owner, agency, or operator is 
participating in a financial assistance program established under part 
C of this subtitle.
``(f) Release of Findings.--
``(1) Distribution.--Each year, the Maritime Administrator 
may release the findings of the survey with shipyards in the 
United States and other maritime industrial base stakeholders 
the results of the survey conducted under this section for such 
year in such a manner as the Administrator determines 
appropriate.
``(2) Proprietary information.--Notwithstanding any other 
provision of law, including section 552 of title 5, United 
States Code, at the request of a survey participant, the 
Maritime Administrator shall withhold proprietary information 
provided as a part of a survey conducted under this section.
``(3) Coordination.--To the maximum extent practicable, the 
Maritime Administrator shall seek to conduct the annual surveys 
under this section and publish the results of such surveys on a 
similar timeline as the timeline for the annual naval vessel 
construction plans under section 231(a)(1) of title 10 and 
other shipbuilding construction surveys published by other 
Federal agencies.''.
(b) Clerical Amendment.--The table of sections for chapter 501 of 
title 46, United States Code, is amended by inserting after the item 
relating to section 50114 the following:

``50115. Anticipated commercial vessel construction survey.''.

SEC. 507. STREAMLINED ENVIRONMENTAL REVIEW.

Section 41001(6) of the Fixing America's Surface Transportation Act 
(42 U.S.C. 4370m(6)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by 
inserting ``the maritime industry'' after 
``waterways,'';
(B) by redesignating clauses (iii) and (iv) as 
clauses (iv) and (v), respectively; and
(C) by inserting after clause (ii) the following:
``(iii) is covered by a programmatic plan 
or environmental review developed for a project 
related to the maritime industry;''; and
(2) by adding at the end the following:
``(D) Maritime industry.--For the purposes of 
subparagraph (A), the term `construction of 
infrastructure' for the maritime industry includes 
construction of--
``(i) shipyards and ship repair facilities;
``(ii) port terminals and other port 
facilities;
``(iii) manufacturing facilities for 
equipment and technology instrumental to the 
facilitation of maritime trade and commerce, as 
defined by the Council; and
``(iv) other industrial base facilities 
that support the Navy or the merchant marine of 
the United States.''.

SEC. 508. ELIGIBILITY FOR LOAN GUARANTEES.

Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 
16513(b)) is amended by inserting at the end the following:
``(14) Marine transportation systems, including commercial 
vessels of the United States, shipyards, marine terminals, and 
port facilities.''.

SEC. 509. REPORTS.

(a) Report on National Defense Reserve Fleet.--
(1) In general.--Not later than 180 days after the date of 
enactment of this Act, and every 2 years thereafter, the 
Maritime Administrator, in consultation with the Commander of 
the United States Transportation Command and the Secretary of 
the Navy, and in accordance with paragraph (2), shall submit to 
the appropriate committees of Congress and the Maritime 
Security Board a report--
(A) outlining a plan for using the shipbuilding 
financial incentives program authorized under section 
53801 of title 46, United States Code, as added by 
section 501, and the financial incentive programs under 
subpart C of subtitle V of title 46, United States 
Code, to supplement the size and readiness of the 
National Defense Reserve Fleet and to improve national 
shipbuilding and shipping infrastructure; and
(B) describing ways in which an expanded and 
creative view of the make-up of vessels with Voluntary 
Intermodal Sealift Agreements or Voluntary Tanker 
Agreements and the shipbuilding financial incentives 
program authorized under such section can be used to 
ensure government access to other vessels that are 
critical to national security, such as icebreakers, oil 
and natural gas tankers, floating dry docks, salvage 
vessels, dredges, ocean tugs, offshore construction 
vessels, multi-use workboats, and commercial shipping 
vessels using small nuclear reactors.
(2) Additional consultation.--In preparing the report under 
paragraph (1), the Maritime Administrator shall also consult 
with the Secretary of Commerce and the Secretary of Energy with 
respect to shipping vessels or mobile maritime power plants 
using small nuclear reactors.
(b) Report on De-risking Maritime Sector.--Not later than 180 days 
after the date of enactment of this Act, and every 2 years thereafter, 
the Secretary of Defense and the Secretary of Homeland Security, in 
coordination with the Secretaries of Treasury and State, the Maritime 
Administrator, the United States Trade Representative, and the Director 
of the Office of Management and Budget, shall submit to the appropriate 
committees of Congress and the Maritime Security Board a report 
outlining a comprehensive strategy for de-risking the United States 
maritime domain from the People's Republic of China and other 
asymmetric or emerging maritime threats.
(c) Report on Restricting Flow of Capital to CCP.--Not later than 
180 days after the date of enactment of this Act, the Secretary of 
Transportation, the Secretary of Defense, the Secretary of Commerce, 
the Secretary of State, and the Secretary of the Treasury shall submit 
to the appropriate committees of Congress and the Maritime Security 
Board a report on ways and means for restricting the flow of capital 
from the United States to Chinese Communist Party maritime industries, 
which shall include recommendations for promoting the flow of capital 
within and between the United States and treaty allies of the United 
States. The report shall also include a survey of banks, pension funds, 
and large financial institutions, with recommendations for ways the 
United States can incentivize domestic financial investments in the 
maritime industry.

SEC. 510. EXPORT CONTROL REPORT.

Not later than 1 year after the date of enactment of this Act, the 
Secretary of State shall submit to Congress a report assessing methods 
to reduce the use of export controls and other restrictions under the 
Arms Export Control Act (22 U.S.C. 2751 et seq.) and the International 
Traffic in Arms Regulations under subchapter M of chapter I of title 
22, Code of Federal Regulations, or successor regulations, that limit 
the ability of foreign-owned marine industrial base companies to 
participate in the United States shipbuilding industry, specifically 
including shipbuilding for the Federal Government, while ensuring 
appropriate safeguards for United States-based firms and American 
workers.

Subtitle B--Department of Defense Programs

SEC. 511. ASSESSMENT OF THE USE OF COMMERCIAL BEST PRACTICES FOR NAVY 
SHIPBUILDING.

(a) Assessment.--
(1) In general.--The Secretary of the Navy, in coordination 
with the Secretary of Transportation and the Secretary of the 
Department in which the Coast Guard is operating, shall--
(A) conduct an assessment of best practices used in 
the construction and repair of commercial, oceangoing 
maritime vessels; and
(B) identify--
(i) opportunities for the Navy and Coast 
Guard to leverage those best practices to make 
ship construction and repair efforts of 
combatant and non-combatant vessels more 
efficient; and
(ii) advanced technologies that can be 
leveraged to improve the overall readiness and 
dominance of the United States maritime fleet 
(both commercial and military), to specifically 
include small modular reactors for ship power 
and propulsion.
(2) Elements.--The assessment required by paragraph (1) 
shall include the following:
(A) An evaluation of the best practices described 
in subparagraph (A) of such paragraph, including best 
practices used by commercial shipyards in foreign 
allied countries, consideration of commercial design 
standards, and the vessel construction manager model 
used to construct the National Security Multi Mission 
Vessel Program, that could improve the efficiency of 
shipbuilding and repair by the Navy and Coast Guard.
(B) An identification of commercial-grade 
components and capabilities being used in state-of-the-
art commercial, oceangoing maritime vessels and an 
assessment of whether the Navy and Coast Guard could 
better use commercial off-the-shelf components or 
capabilities to reduce costs, improve efficiencies, or 
enhance capabilities in the construction of new naval 
vessels and cutters, and in repair of naval vessels and 
cutters.
(C) A determination as to whether shipbuilding and 
acquisition programs of the Navy and Coast Guard use 
modern best practices from the commercial maritime 
industry in terms of contracting, ship design, 
construction, overhaul, and maintenance.
(D) An identification of technologies and 
procedures that are used in commercial shipbuilding 
that, if used by the Navy and Coast Guard, would 
improve the efficiency of designing and constructing 
new naval vessels.
(E) An identification of technologies and 
procedures that are used in commercial shipbuilding and 
repair that, if used by the Navy and Coast Guard, would 
improve the efficiency of repairing naval vessels.
(F) An identification of opportunities to improve 
commonality in ship design, ship components, and 
shipbuilding procedures between commercial, oceangoing 
maritime vessels, naval vessels, and cutters that could 
lead to improved efficiencies and a more resilient 
industrial base to support shipbuilding and repair for 
military and civil maritime vessels.
(G) An identification of advanced nuclear 
technologies that are under development for use in 
commercial shipbuilding that, if used by the Navy and 
Coast Guard, would improve the operational capability 
of naval vessels and cutters.
(H) An identification of the barriers preventing or 
making prohibitive the use of small modular reactors in 
naval or commercial, oceangoing maritime vessels, 
including--
(i) ambiguity in regulations governing 
nuclear propulsion restricting the commercial 
maritime industry from utilizing nuclear 
propulsion or collaborating between United 
States and foreign entities under export 
controls requirements, including section 744.5 
of title 15, Code of Federal Regulations (or a 
similar successor regulation); and
(ii) a lack of clarity in the meaning of 
``maritime (civil) nuclear propulsion plant 
projects'' contained in the Export 
Administration Regulations and ``Naval Nuclear 
Propulsion'' contained in the International 
Traffic in Arms Regulations (Cat VI).
(I) An evaluation of education and technology 
development best practices used by commercial shipyards 
in foreign allied countries, and an identification of 
education and technology development opportunities, 
that could improve the efficiency of shipbuilding and 
repair by the Navy and Coast Guard.
(J) An evaluation of whether adoption of the best 
practices evaluated under subparagraph (A) for the 
construction and repair of naval vessels and cutters 
would support the domestic commercial maritime 
shipbuilding industry, the commercial maritime 
industrial base, and the merchant marine of the United 
States.
(b) Briefing.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Navy shall provide to the 
congressional defense committees a briefing on--
(1) the results of the assessment required by subsection 
(a); and
(2) a plan to execute any measures pursuant to such 
assessment.
(c) Strategy Required.--Not later than 1 year after the date of 
enactment of this Act, and biennially thereafter, the Secretary of the 
Navy and Secretary of the Department in which the Coast Guard is 
operating shall--
(1) provide to the appropriate committees of Congress 
strategies describing how measures identified as a result of 
the assessment required by subsection (a) will be incorporated 
into shipbuilding programs for the Navy and Coast Guard; and
(2) publish a public version of the strategies.
(d) Congressional Defense Committees Defined.--In this section, the 
term ``congressional defense committees'' has the meaning given that 
term in section 101(a) of title 10, United States Code.

SEC. 512. PLAN OF ACTION FOR USE OF DEFENSE PRODUCTION ACT OF 1950 
AUTHORITIES.

(a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the appropriate 
committees of Congress a report on a plan of action for any use of 
authorities available under title III of the Defense Production Act of 
1950 (50 U.S.C. 4531 et seq.)--
(1) to establish or enhance a domestic production 
capability for the construction of militarily useful, 
commercial maritime vessels that can be operated in foreign 
commerce or the domestic commerce of the United States;
(2) to establish, improve, or enhance the defense shipyard 
industrial base; or
(3) to establish, improve, or enhance maritime port 
infrastructure of the United States, including containers and 
ship-to-shore cranes that were built in the United States and 
are owned by citizens of the United States.
(b) Coordination.--The President shall develop the plan of action 
required by subsection (a) in consultation with--
(1) the maritime security advisor (as established by this 
Act);
(2) the Maritime Security Board (as established by this 
Act);
(3) an advisory committee established under section 708(d) 
of the Defense Production Act of 1950 (50 U.S.C. 4558(d)); and
(4) such stakeholders in the private sector as the 
President considers appropriate.
(c) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
(1) the Committee on Armed Services, the Committee on 
Commerce, Science, and Transportation, and the Committee on 
Appropriations of the Senate; and
(2) the Committee on Armed Services, the Committee on 
Transportation and Infrastructure, and the Committee on 
Appropriations of the House of Representatives.

SEC. 513. STRATEGY ON DEVELOPMENT OF NAVAL REARM-AT-SEA CAPABILITY.

(a) Strategy Required.--
(1) In general.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of the Navy shall 
submit to the congressional defense committees a strategy for 
delivering a rearm-at-sea capability to the surface fleet of 
the Navy.
(2) Elements.--Such strategy required under paragraph (1) 
shall include each of the following:
(A) A plan to develop, by not later than 3 years 
after the date of the enactment of this Act, the 
capability to employ transportable rearming mechanism 
equipment to load missile canisters into MK 41 vertical 
launch system cells on Navy destroyers, including--
(i) an identification of the current and 
planned investments of the Navy in technology 
development to achieve such capability; and
(ii) the anticipated cost and schedule for 
such investments.
(B) A plan for the key milestone events and 
associated dates in the development of such capability.
(C) A plan to coordinate with allies of the United 
States that use variants of the MK 41 vertical launch 
system manufactured by the United States to jointly 
procure rearm-at-sea capabilities.
(D) An identification of any courses of action the 
Secretary of the Navy is considering other than the 
plans referred to in subparagraphs (A) through (C) to 
address the gap between the rearm-at-sea capabilities 
of the United States and the capabilities of other 
countries, including the use of uncrewed technologies, 
and other commercial off-the-shelf components or 
capabilities.
(E) Such other matters as the Secretary determines 
appropriate.
(b) Briefing.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of the Navy shall provide to the 
congressional defense committees a written briefing on the development 
of the strategy required under subsection (a).

SEC. 514. MILITARY SEALIFT COMMAND.

(a) Authority to Offer Increased Paid Leave Accrual.--The Secretary 
of the Navy is authorized to offer government merchant mariners 
employed by Military Sealift Command paid leave accrual at a faster 
rate than provided pursuant to the standard General Schedule (GS) 
system to make government seafaring jobs more competitive with the 
commercial sector.
(b) Report on Recruiting and Retention Efforts.--
(1) In general.--Not later than 180 days after the date of 
the enactment of this Act, and annually thereafter, the 
Secretary of the Navy, in coordination with the Commander of 
the Military Sealift Command and the Maritime Security Board, 
and in consultation with the Commander of United States 
Transportation Command, the Commander of United States Fleet 
Forces Command, and the Assistant Secretary of the Navy for 
Research, Development and Acquisition, shall submit to the 
appropriate committees of Congress a report on efforts to 
improve recruitment and retention of Military Sealift Command 
Mariners.
(2) Elements.--The report required under paragraph (1) 
shall consider--
(A) opportunities to enhance the integration of 
Military Sealift Commander civilian mariners into the 
military command structure;
(B) providing training on the roles and 
significance of Military Sealift Command civilian 
mariner workforce to relevant military commands; and
(C) authorities required to improve recruitment and 
retention of civilian mariners in Military Sealift 
Command.
(c) Report on Extending Charter Durations.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of the Navy 
shall submit to the appropriate committees of Congress a report 
assessing the merits of extending the maximum charter durations of 
commercial and specialty vessels for the Military Sealift Command.

Subtitle C--Shipbuilding Innovation and Infrastructure

SEC. 521. UNITED STATES CENTER FOR MARITIME INNOVATION.

(a) In General.--Section 50307(e) of title 46, United States Code, 
is amended--
(1) in paragraph (1), by inserting ``through the 
establishment, management, and coordination of geographically 
and topically diverse maritime incubators'' after ``maritime 
transportation system''; and
(2) by striking paragraphs (2), (3), and (4), and inserting 
the following:
``(2) Cooperative agreement.--The cooperative agreement 
shall be with an organization or persons with substantial 
experience in the maritime industry, as determined by the 
Secretary, in consultation with the Maritime Security Board.
``(3) Selection.--The Center shall be--
``(A) selected through a competitive process of 
eligible entities, and if a private entity, a domestic 
entity;
``(B) based in the United States with technical 
expertise in emerging marine technologies and practices 
related to the maritime transportation system; and
``(C) located in close proximity to eligible 
entities with expertise in United States emerging 
maritime technologies and practices.
``(4) Coordination.--The Secretary of Transportation shall 
coordinate with the Maritime Security Board and other agencies 
critical for science, research, and regulation of emerging 
marine technologies for the maritime sector, including the 
Department of Defense, the Department of Energy, the 
Environmental Protection Agency, the National Science 
Foundation, the Coast Guard, the National Oceanic and 
Atmospheric Association, and the Marine Board of the National 
Academies when establishing the Center.
``(5) Responsibilities.--The Center shall carry out the 
following activities:
``(A) Establish and support maritime incubators in 
accordance with paragraph (6).
``(B) Accelerate the adoption or integration of 
commercial technologies within the maritime industry to 
transform the capacity and capabilities of the merchant 
marine of the United States.
``(C) Serve as the principal liaison between the 
Maritime Security Board and maritime incubators.
``(D) Carry out programs, projects, and other 
activities to strengthen the merchant marine of the 
United States and the maritime industrial base.
``(E) Coordinate and harmonize the activities of 
other organizations and elements of the maritime 
industry on matters relating to commercial 
technologies, dual use technologies, and the innovation 
of such technologies.
``(F) Coordinate and advise efforts among elements 
of the maritime industry on matters relating to the 
development, procurement, and fielding of 
nontraditional capabilities and connect entities 
developing those capabilities with the relevant 
incubators.
``(G) Coordinate with maritime industry 
stakeholders to identify operational challenges that 
have the potential to be addressed through the use of 
nontraditional capabilities, including dual-use 
technologies that are being developed and financed in 
the commercial sector.
``(H) Coordinate with maritime industry 
stakeholders and relevant Federal agencies to enhance 
the capacity and performance of seaports of the United 
States, including through hardening security, enhancing 
preparedness, and developing United States-based supply 
chains for port technologies and equipment.
``(I) Coordinate with other research and 
development programs and centers focused on modes of 
transportation besides maritime to develop intermodal 
interoperability with the maritime industry.
``(J) Develop a standard design for commercial 
vessels and components and features of commercial 
vessels to be manufactured in the United States, using 
mature, proven designs, which--
``(i) includes, to the maximum extent 
practicable, included parts, components, and 
material manufactured in and sourced from the 
United States;
``(ii) does not include any parts, 
components, or materials manufactured by 
foreign entities of concern or which are 
produced in foreign countries of concern (as 
such terms are defined in section 4 of the 
SHIPS for America Act of 2024); and
``(iii) includes priorities for design 
identified in consultation with the Secretary 
of the Navy, as necessary for strategic 
sealift, informed by requirements to sustain a 
wartime economy and military operations.
``(K) Lead engagement with industry, academia, 
labor organizations, and other nongovernmental entities 
to develop--
``(i) innovative, commercial, and dual-use 
manufacturing technologies and processes to 
construct, rehabilitate, or repair maritime 
vessels of the Armed Forces or the merchant 
marine of the United States;
``(ii) additional naval architecture 
programs at institutions of higher education in 
the United States and to expand existing naval 
architecture programs;
``(iii) next-generation propulsion 
technologies for the merchant marine of the 
United States, to include small modular 
reactors, low-emission propulsion technologies, 
and other renewable energy solutions;
``(iv) new and innovative hardware, 
software, and systems for remote or autonomous 
operations at ports, intermodal facilities, or 
aboard oceangoing vessels;
``(v) technology and infrastructure 
solutions that enhance the safe operation of 
oceangoing vessels to protect lives, property, 
and the environment;
``(vi) solutions to recruit, train, and 
retain a skilled workforce capable of 
supporting a vibrant and growing United States 
maritime industry; and
``(vii) the capacity of international 
allies and partners of the United States, with 
respect to manufacturing technologies and 
processes, to construct, rehabilitate, or 
repair maritime vessels.
``(L) Work with academic and private sector 
response training centers and Centers of Excellence for 
Domestic Maritime Workforce Training and Education to 
develop maritime strategies applicable to various 
segments of the United States maritime industry, 
including the inland, deep water, and coastal fleets.
``(M) Establish programs and initiatives to share--
``(i) shipbuilding best practices and 
maritime technology between vessels of the 
Department of Defense and commercial vessels of 
the United States; and
``(ii) port technology and logistics best 
practices between the Department of Defense and 
commercial port operators and port authorities 
within the United States.
``(N) Carry out such other activities as the 
Maritime Security Board determines appropriate.
``(6) Establishment of maritime incubators.--
``(A) Establishment.--The Center shall, in 
consultation with the Maritime Security Board, seek 
out, identify, and support the development of and 
experimentation with commercial technologies that have 
the potential to be implemented within the maritime 
industry, through the establishment of a series of 
maritime incubators.
``(B) Reflection.--Each incubator shall reflect the 
unique nature of the region's capabilities and academic 
and investor base.
``(C) Selection.--Incubators shall be--
``(i) selected through a competitive 
process of eligible entities, and if a private 
entity, a domestic entity;
``(ii) based in the United States with 
technical expertise in emerging marine 
technologies and practices related to the 
maritime transportation system;
``(iii) based within a United States 
maritime security investment zone as defined in 
section 1400Z-3 of the Internal Revenue Code of 
1986 (as added by section 708 of this Act); and
``(iv) topic-specific, according to 
regional maritime expertise in United States 
emerging maritime technologies and practices, 
to include designated incubators focused on--
``(I) clean energy and alternative 
fuels;
``(II) ports and shoreside 
infrastructure;
``(III) vessel design and naval 
architecture;
``(IV) shipbuilding and next 
generation manufacturing; and
``(V) other areas for maritime 
innovation and technology, as 
determined by the Center in 
coordination with the Maritime Security 
Board.
``(D) Incubator responsibilities.--Each maritime 
incubator shall--
``(i) serve as the principal liaison 
between the Center and individuals and entities 
that can contribute to innovation within the 
maritime industry, including other maritime 
incubators under this subsection, 
entrepreneurs, startups, commercial technology 
companies, and venture capital sources; and
``(ii) establish and support multi-
stakeholder research and innovation 
partnerships, as described in subparagraph (G).
``(E) Report.--Each incubator shall submit 
quarterly activity and status reports to the Center.
``(F) Review and termination.--
``(i) In general.--The Maritime 
Administrator may, in consultation with the 
Maritime Security Board, terminate an agreement 
with an eligible entity selected to lead a 
maritime incubator if the Administrator 
certifies that the eligible entity is failing 
to meet the requirements of this section.
``(ii) Reselection.--If the Administrator 
terminates an agreement with an eligible entity 
to lead a maritime incubator, the Center shall 
initiate a new selection process as required 
under subparagraph (C) to select a new eligible 
entity.
``(iii) Review of eligible entities.--Not 
later than 5 years after the establishment of 
maritime incubators under this paragraph, and 
every 5 years thereafter, the Administrator, in 
coordination with the Maritime Security Board, 
shall conduct a review of all eligible entities 
selected to lead a maritime incubator and 
confirm the entity is adequately fulfilling the 
requirements of this section.
``(G) Multi-stakeholder partnerships.--
``(i) In general.--The maritime incubators 
established under this subsection shall 
establish and support multi-stakeholder 
research and innovation partnerships that--
``(I) have the potential to 
generate technologies, processes, 
products, or other solutions that 
support the United States maritime 
industry;
``(II) have as an objective the 
technology transfer or 
commercialization of the work product 
generated by the partnership, which may 
include work product that incorporates 
intellectual property developed by the 
Federal Government and licensed to the 
partnership in accordance with clause 
(iii); and
``(III) incentivize and expand 
geographically diverse participation in 
graduate and undergraduate institutions 
of higher education, community college, 
and other workforce programs relevant 
to the maritime industry.
``(ii) Support provided.--Support provided 
by the maritime incubator to a multi-
stakeholder research and innovation partnership 
under this subsection may include--
``(I) providing funding or other 
resources to the partnership;
``(II) participating in the 
partnership;
``(III) providing technical and 
technological advice and guidance to 
the partnership;
``(IV) suggesting and introducing 
other participants for inclusion in the 
partnership;
``(V) providing the partnership 
with insight into desired solutions for 
defense and security needs;
``(VI) providing access to Ready 
Reserve ships for testing new 
technologies and conducting research, 
as the maritime incubator determines 
appropriate, in coordination with the 
Center and the Administrator; and
``(VII) such other forms of support 
as the Center, in consultation with 
maritime incubators and Maritime 
Security Board, determines appropriate.
``(iii) Availability of intellectual 
property.--To the extent the Center determines 
appropriate, the Center, in coordination with 
the maritime incubators, shall seek to actively 
inform potential participants in multi-
stakeholder research and innovation 
partnerships of the availability of 
intellectual property developed by the Federal 
Government that may be licensed to the 
partnership.
``(7) Report.--Not later than 180 days after the date of 
enactment of the SHIPS for America Act of 2024, and annually 
thereafter, the Center shall submit to the Maritime Security 
Board and the appropriate congressional committees a report on 
the activities, advances, outcomes, and work product of the 
maritime incubators and the multi-stakeholder research and 
innovation partnerships supported under this subsection.
``(8) Authorization of appropriations.--In addition to the 
funding contributed under subsection (a)(4), there is 
authorized to be appropriated, out of the Maritime Security 
Trust Fund established under section 9512 of the Internal 
Revenue Code of 1986, $50,000,000 for each of fiscal years 2025 
through 2034.
``(9) Definitions.--In this subsection:
``(A) Multi-stakeholder research and innovation 
partnership.--The term `multi-stakeholder research and 
innovation partnership' means a partnership composed of 
any combination of 2 or more of the following:
``(i) Institutions of higher education (as 
defined in section 102 of the Higher Education 
Act of 1965 (20 U.S.C. 1002)) with research and 
innovation capability.
``(ii) Nonprofit organizations that provide 
policy, research, outreach, operations, 
organizational, management, testing, 
evaluation, technology transfer, legal, 
financial, or advocacy expertise.
``(iii) For-profit commercial enterprises 
that may be publicly or privately owned, early 
stage or mature, and incorporated or operating 
by another ownership structure.
``(iv) Centers of excellence for domestic 
maritime workforce training and education 
(established under section 51706).
``(v) Maritime labor organizations.
``(vi) Departments or agencies of the 
Federal Government with expertise, operations, 
or resources related to the objectives of the 
multi-stakeholder research and innovation 
partnership.
``(vii) State maritime academies (as 
defined in section 51102(4)).
``(viii) The United States Merchant Marine 
Academy.
``(ix) National research laboratories with 
expertise, operations, or resources related to 
the objectives of the partnership.
``(B) Nontraditional capability.--The term 
`nontraditional capability' means a solution to an 
operational challenge that can significantly leverage 
commercial innovation or external capital with minimal 
dependencies on fielded systems.
``(C) Maritime industry.--The term `maritime 
industry' includes--
``(i) shipbuilders and ship repair 
facilities;
``(ii) ship owners;
``(iii) port operators;
``(iv) personnel of the merchant marine of 
the United States;
``(v) manufacturers of equipment and 
technology instrumental to the facilitation of 
maritime trade and commerce; and
``(vi) other members of the industrial base 
that support the Navy or the merchant marine of 
the United States.''.
(b) Transition.--A Center for Maritime Innovation established by 
the Secretary of Transportation through a cooperative agreement 
pursuant to section 50307 of title 46, United States Code, as of the 
day before the date of enactment of this Act shall--
(1) be deemed to be the United States Center for Maritime 
Innovation under section 50307 of title 46, United States Code, 
as of the date of enactment of this Act, with all the 
authorities granted by such section; and
(2) coordinate activities of the Center with the Maritime 
Security Board pursuant to subsection (e)(4) of such section, 
as amended by this Act.

SEC. 522. NATIONAL SHIPBUILDING RESEARCH PROGRAM.

Section 50105(c) of title 46, United States Code, is amended to 
read as follows:
``(c) National Shipbuilding Research Program.--
``(1) In general.--The Maritime Administrator shall 
establish and carry out, in coordination with Naval Sea Systems 
Command, the National Shipbuilding Research Program.
``(2) Purposes.--The purpose of the National Shipbuilding 
Research Program shall be to develop plans for the economical 
construction of vessels and their propelling machinery, of most 
modern economical types, giving thorough consideration to all 
well-recognized means of propulsion and taking into account the 
benefits from standardized production where practicable and 
desirable.
``(3) Activities.--The National Shipbuilding Research 
Program shall--
``(A) support technology transfers and industry 
networking;
``(B) select and execute research and development 
projects, which may include--
``(i) advancing best practices in 
shipbuilding and ship repair, including 
alternative project management and project 
financing arrangements for shipyards, such as 
public-private financing;
``(ii) improving efficiency across the 
shipyard industrial base of the United States; 
and
``(iii) developing, maturing, and 
implementing industry-relevant shipbuilding and 
sustainment technologies;
``(C) carry out ad hoc initiatives focused on 
specific target areas in shipbuilding and ship repair; 
and
``(D) carry out additional activities as determined 
by the Maritime Administrator or the Secretary of 
Defense.''.

SEC. 523. ASSESSMENT ON MARINE INFRASTRUCTURE READINESS.

(a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Maritime Administrator shall submit to 
Congress a report on the status and resources and authorities needed to 
execute and complete necessary vessels, harborcraft, port, shipyard, 
and other infrastructure improvements to ensure the national security 
interests of the United States and support the domestic and foreign 
commerce of the United States.
(b) Contents.--The report under subsection (a) shall include--
(1) consideration of existing literature and reporting from 
Federal and non-Federal sources;
(2) an assessment of the number of commercial shipping 
vessels by class required to sustain a peace-time and wartime 
national economy;
(3) an assessment of opportunities to leverage private 
sector funding to enhance the capability of marine 
infrastructure of the United States;
(4) an evaluation of future infrastructure needs to support 
alternative fuels for vessels and harborcraft;
(5) an assessment of an ability to construct and repair 
seaports and shipyards during national security emergencies, 
including readiness to construct temporary facilities, and 
carry out marine salvage and firefighting operations; and
(6) an evaluation of the possible effects on the commercial 
operations of United States ports and other critical 
infrastructure of prohibiting any entity that owns or operates 
a port or terminal in the United States from using or sharing 
data with--
(A) LOGINK;
(B) any logistics platform controlled by, 
affiliated with, or subject to the jurisdiction of the 
Chinese Communist Party or the Government of the 
People's Republic of China; or
(C) any logistics platform that shares data with a 
system described in subparagraph (A) or (B).
(c) Definitions.--
(1) Critical infrastructure.--The term ``critical 
infrastructure'' has the meaning given the term in section 
721(a) of the Defense Production Act of 1950 (50 U.S.C. 
4565(a)).
(2) LOGNIK.--The term ``LOGINK'' means the public, open, 
shared logistics information network known as the National 
Public Information Platform for Transportation and Logistics by 
the Ministry of Transport of the People's Republic of China.

TITLE VI--WORKFORCE DEVELOPMENT

Subtitle A--Workforce Incentives

SEC. 601. PUBLIC SERVICE LOAN FORGIVENESS FOR MERCHANT MARINES.

Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(m)) is amended--
(1) in paragraph (3)(B)(i), by inserting ``the United 
States Merchant Marine (as described in paragraph (5)), a 
United States shipyard,'' after ``law enforcement,''; and
(2) by adding at the end the following:
``(5) Full-time job in united states merchant marine.--For 
purposes of loan cancellation under this subsection, a full-
time job in the United States Merchant Marine shall mean 
possession of a Merchant Mariner Credential authorized by the 
Coast Guard and employment on board a vessel of the United 
States for not less than 150 days in a calendar year.''.

SEC. 602. ELIGIBILITY FOR EDUCATIONAL ASSISTANCE.

(a) In General.--Chapter 521 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 52102. Eligibility for educational assistance
``(a) Eligibility.--A covered individual shall be treated as an 
individual described in section 3311(b)(1) of title 38, United States 
Code, for purposes of entitlement to educational assistance under 
chapter 33 of such title.
``(b) Covered Individual.--
``(1) In general.--In this section, the term `covered 
individual' means an individual who--
``(A) served as a full-time, credentialed United 
States Merchant Mariner for not less than 10 years;
``(B) as a result of such service received the 
Merchant Marine Expeditionary Medal or another award 
for service in a designated combat zone after the date 
of enactment of this section; and
``(C) is not eligible under any other provision of 
law for benefits under laws administered by the 
Secretary of Veterans Affairs.
``(2) Full-time, credentialed united states merchant 
mariner.--For purposes of paragraph (1), serving as a `full-
time, credentialed United States Merchant Mariner' means 
possession of a Merchant Mariner Credential authorized by the 
Coast Guard and employment on board a vessel of the United 
States for not less than 150 days in a calendar year.
``(c) Reimbursement.--There is authorized to be appropriated to the 
Secretary of Veterans Affairs such sums as may be necessary to carry 
out this section from the Maritime Security Trust Fund established 
under section 9512 of chapter 98 of the Internal Revenue Code of 
1986.''.
(b) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, is amended by adding at the end the 
following:

``52102. Eligibility for educational assistance.''.

SEC. 603. ELIGIBILITY OF MARINERS TO ATTEND NAVAL POSTGRADUATE SCHOOL.

(a) In General.--Section 8545 of title 10, United States Code, is 
amended--
(1) in subsection (a), by adding at the end the following 
new paragraph:
``(3) The Secretary may permit an officer or unlicensed 
mariner of the United States Merchant Marine to receive 
instruction at the Naval Postgraduate School.'';
(2) in subsection (b)(1), by adding at the end the 
following new sentence: ``The Secretary of Transportation shall 
bear the cost of the instruction received by officers and 
unlicensed mariners of the United States Merchant Marine 
detailed for that instruction.''; and
(3) in subsection (c), by inserting ``, and officers and 
unlicensed mariners of the United States Merchant Marine,'' 
after ``Coast Guard''.
(b) Report Required.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Transportation, in consultation 
with the Secretary of Defense, shall submit to Congress a report 
assessing what matters relating to military training it would be 
beneficial for mariners to study at the Naval Postgraduate School.

SEC. 604. REIMBURSEMENT OF QUALIFYING SPOUSE RELICENSING COSTS AND 
BUSINESS COSTS.

(a) In General.--Chapter 521 of title 46, United States Code, as 
amended by section 602, is further amended by adding at the end the 
following:
``Sec. 52103. Reimbursement of qualifying spouse relicensing costs and 
business costs
``(a) In General.--The Secretary of Transportation shall establish 
a program to reimburse an individual serving in the merchant marine of 
the United States for qualified relicensing costs and qualified 
business costs of the spouse of that individual when the individual 
relocates to a new jurisdiction or geographic area as the result of a 
reassignment as a result of service as a commissioned officer in the 
Navy Reserve (including the Strategic Sealift Officer Program, Navy 
Reserve), the Coast Guard Reserve, or any other reserve component of 
the Armed Services of the United States.
``(b) Limitations.--
``(1) Relicensing.--Reimbursement provided to a member 
under this subsection for qualified relicensing costs may not 
exceed $1,000 in connection with each relocation described in 
paragraph (1).
``(2) Business costs.--Reimbursement provided to a member 
under this subsection for qualified business costs may not 
exceed $1,000 in connection with each relocation described in 
paragraph (1).
``(3) Deadline.--No reimbursement may be provided under 
this subsection for qualified relicensing costs or qualified 
business costs paid or incurred after December 31, 2034.
``(c) Qualified Relicensing Costs.--In this section, the term 
`qualified relicensing costs' means costs, including exam, continuing 
education courses, business license, permit, and registration fees, 
incurred by the spouse of an individual serving in the merchant marine 
of the United States if--
``(1) the spouse was licensed or certified in a profession, 
or owned a business, during the individual's previous 
assignment and requires a new professional license or 
certification, or business license or permit, to engage in that 
profession in a new jurisdiction because of the individual's 
relocation described in paragraph (1); and
``(2) the costs were incurred or paid to secure or maintain 
the professional license or certification, or business license 
or permit, from the new jurisdiction in connection with such 
relocation.
``(d) Qualified Business Costs.--In this section, the term 
`qualified business costs' means costs, including moving services for 
equipment, equipment removal, new equipment purchases, information 
technology expenses, and inspection fees, incurred by the spouse of an 
individual serving in the merchant marine of the United States if--
``(1) the spouse owned a business during the individual's 
previous assignment and the costs result from the individual's 
relocation described in paragraph (1); and
``(2) the costs were incurred or paid to move such business 
to a new location in connection with such relocation.
``(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $500,000 for each of fiscal years 2025 through 2034.''.
(b) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, as amended by section 602, is further 
amended by adding at the end the following:

``52103. Reimbursement of qualifying spouse relicensing costs and 
business costs.''.

SEC. 605. NONCOMPETITIVE ELIGIBILITY FOR FEDERAL EMPLOYMENT.

(a) Amendment.--Chapter 521 of title 46, United States Code, as 
amended by sections 602 and 604, is amended by adding at the end the 
following:
``Sec. 52104. Noncompetitive eligibility for Federal employment
``(a) Definition of Agency.--In this section, the term `agency'--
``(1) has the meaning given the term `Executive agency' in 
section 105 of title 5, United States Code;
``(2) includes the United States Postal Service and the 
Postal Regulatory Commission; and
``(3) does not include the Government Accountability 
Office.
``(b) Appointment Authority.--The head of an agency may appoint 
noncompetitively--
``(1) a graduate of the United States Merchant Marine 
Academy who has met all of the requirements of their cadet 
commitment agreement under section 51306 of title 46, United 
States Code; or
``(2) a credentialed United States Merchant Mariner with an 
officer or rating endorsement who has completed not less than 7 
years of service aboard a vessel of the United States.''.
(b) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, as amended by sections 602 and 604, is 
amended by adding at the end the following:

``52104. Noncompetitive eligibility for Federal employment.''.

SEC. 606. UNITED STATES MERCHANT MARINE CAREER RETENTION PROGRAM.

(a) Sense of Congress.--It is the sense of Congress that--
(1) it takes years of training and experience, and costly 
license trainings, to earn mariner qualifications;
(2) with just around 12,000 merchant mariners of the United 
States operating oceangoing vessels, compared with China's more 
than 1,700,000 seafarers, the United States may not have a 
sufficient number of mariners to fully power the strategic 
sealift vessels necessary in a future prolonged conflict;
(3) the United States requires a qualified workforce of 
sufficient size that is ready and available to crew vessels of 
the United States for national defense or national emergency; 
and
(4) a workforce committed to take all measures possible to 
expand, develop, and protect the domestic maritime workforce 
should--
(A) support a retention program to permit 
credentialed merchant mariners to maintain recency 
through a coordinated Federal program, in coordination 
with maritime labor organizations; and
(B) implement civil service, workplace, and hiring 
protections.
(b) Amendment.--Chapter 521 of title 46, United States Code, as 
amended by sections 602, 604, and 605, is further amended by adding at 
the end the following:
``Sec. 52105. United States Merchant Marine Career Retention Program
``(a) Establishment.--The Maritime Administrator shall establish a 
program, to be known as the `United States Merchant Marine Career 
Retention Program', to ensure that a qualified workforce of sufficient 
size is ready to crew strategic sealift vessels in the event of a 
national defense or national emergency activation. Through the United 
States Merchant Marine Career Retention Program, the Maritime 
Administrator shall establish and administer mechanisms to register 
merchant mariners and mariner employers to participate in the Program.
``(b) Implementation.--The Maritime Administrator shall--
``(1) appoint a board of directors to oversee the United 
States Merchant Marine Career Retention Program;
``(2) appoint and facilitate a working group to recommend 
policies, procedures, and a prioritization matrix for the 
United States Merchant Marine Career Retention Program, which 
shall be composed of representatives from major stakeholders, 
including maritime labor organizations, credentialed United 
States Merchant Mariners, vessel owners, vessel operators, the 
United States Merchant Marine Academy, State maritime 
academies, United States Military Sealift Command, and other 
likely employers of members of the United States Merchant 
Marine Career Retention Program; and
``(3) submit to Congress an annual evaluation of the United 
States Merchant Marine Career Retention Program.
``(c) Membership in United States Merchant Marine Career Retention 
Program.--
``(1) In general.--There shall be 2 paths to enrollment in 
the United States Merchant Marine Career Retention Program as 
described in paragraphs (2) and (3).
``(2) Members who work ashore who hold mariner 
qualifications.--
``(A) Opportunities.--The United States Merchant 
Marine Career Retention Program shall provide 
individuals who hold Coast Guard issued mariner 
qualifications who work ashore with an opportunity to 
maintain, or potentially upgrade, their mariner 
qualifications and credentials by--
``(i) providing qualified service at sea on 
vessels of the United States; and
``(ii) participating in compulsory 
training.
``(B) Structure.--The United States Merchant Marine 
Career Retention Program shall be open for enrollment 
to both licensed and unlicensed mariners and provide 
members with an 8-3-1 schedule as follows:
``(i) 8 months shoreside employment.
``(ii) 3 months sailing employment designed 
to ensure that members meet the minimum sea-
time requirement to maintain the credentials 
required by the Standards of Training, 
Certification, and Watchkeeping certification, 
or, depending on mariner and employer 
requirements, more frequent, but shorter-
duration sailing assignments.
``(iii) 1 month vacation, which is in 
addition to vacation provided by the shoreside 
employer.
``(C) Ashore employers.--
``(i) Employer obligations.--The employer 
of a member of the United States Merchant 
Marine Career Retention Program described under 
this paragraph shall grant the member--
``(I) an unpaid leave of absence 
for the duration of the member's 
training, sailing, and vacation with 
the United States Merchant Marine 
Career Retention Program; and
``(II) the same or an equivalent 
position with the employer when the 
member returns from training, sailing, 
or vacation with the United States 
Merchant Marine Career Retention 
Program.
``(D) Sea day assignments.--The United States 
Merchant Marine Career Retention Program shall, with 
respect to members described under this paragraph--
``(i) maintain records of each member's 
qualifications, sea time, and availability, and 
prioritize assignments on these and other 
factors with the goal of maximizing the United 
States Merchant Marine Career Retention Program 
readiness to support strategic sealift;
``(ii) maintain a `job call' program office 
that coordinates how jobs become available for 
members from State maritime academies, vessel 
operating companies, maritime labor 
organizations, United States Military Sealift 
Command, and other organizations responsible 
for crewing vessels of the United States of 
qualifying tonnage or horsepower;
``(iii) establish partnerships with State 
maritime academies and the United States 
Military Sealift Command that aim to establish 
reliable crewing jobs with job cycles that 
maximize the readiness of United States 
Merchant Marine Career Retention Program;
``(iv) dispatch members to fill available 
jobs, prioritizing maximizing readiness for 
strategic sealift, taking into consideration 
mariner availability and credentials, sea time 
requirements to maintain merchant mariner 
credentials, predicted program demand for 
specific ratings, and expected expansion or 
contraction of the program's membership; and
``(v) coordinate with vessel operators and 
labor organizations to ensure that members in 
the United States Merchant Marine Career 
Retention Program are given opportunities to 
fulfill their sea time and maintain the 
credentials required by the Standards of 
Training, Certification, and, Watchkeeping 
certification.
``(E) USERRA protections.--Members of the United 
States Merchant Marine Career Retention Program 
described under this paragraph shall be entitled to 
protections and obligations under chapter 43 of title 
38 (commonly known as the `Uniformed Services 
Employment and Reemployment Rights Act').
``(F) Requirement.--A member in the United States 
Merchant Marine Career Retention Program described 
under this paragraph may not fail to accept a sea day 
assignment and remain in good standing with the 
Program, unless a hardship exemption is provided by the 
Maritime Administrator under subsection (e).
``(3) Members serving on foreign vessels.--
``(A) In general.--The United States Merchant 
Marine Career Retention Program shall be open for 
enrollment to individuals who--
``(i) hold Coast Guard issued merchant 
mariner credentials required by the Standards 
of Training, Certification, and Watchkeeping 
Certification;
``(ii) have completed their service 
obligations with respect to any previous 
enrollment in a Federal or State maritime 
academy, if applicable; and
``(iii) are serving on a foreign vessel (as 
defined in section 110) that is not owned by a 
foreign entity of concern (as that term is 
defined in section 4 of the SHIPS for America 
Act of 2024) or a vessel registered under a 
registry of a foreign country of concern or 
operated under the authority of a foreign 
country of concern (as that term is defined in 
such section 4).
``(B) Requirement.--Members of the United States 
Merchant Marine Career Retention Program described 
under this paragraph shall maintain--
``(i) Standards of Training, Certification, 
and Watchkeeping Certification currency;
``(ii) a valid merchant mariner credential, 
unlimited as to horsepower or tonnage, issued 
by the United States Coast Guard as an officer 
in the merchant marine of the United States, 
accompanied by the appropriate national and 
international endorsements and certifications 
required by the Coast Guard for service aboard 
vessels on domestic and international voyages, 
without limitation;
``(iii) a valid transportation worker 
identification credential;
``(iv) a Coast Guard medical certificate; 
and
``(v) classes and certifications described 
in subparagraph (C).
``(C) Certifications.--The Administrator shall 
publish a list of classes and certifications required 
for individuals described in subparagraph (A) to be 
eligible for the United States Merchant Marine Career 
Retention Program.
``(D) Rule of construction.--Nothing in 
subparagraph (A) shall be construed to allow the United 
States Coast Guard to prevent or delay a merchant 
mariner who is otherwise eligible from attaining a more 
advanced rank or credential for Merchant Mariners 
sailing on foreign vessels.
``(E) USERRA protections.--Members of the United 
States Merchant Marine Career Retention Program 
described under this paragraph shall be entitled to 
protections and obligations under chapter 43 of title 
38 (commonly known as the `Uniformed Services 
Employment and Reemployment Rights Act').
``(d) Enforcement.--The Maritime Administrator shall ensure all 
members of the Merchant Marine Career Retention Program remain in good 
standing with the requirements of the Program.
``(1) Enforcement.--Subject to paragraph (2), members found 
to be in noncompliance with the requirements of the Program 
shall--
``(A) have their reservist status terminated; and
``(B) forfeit the protections provided under 
chapter 43 of title 38 (commonly known as the 
`Uniformed Services Employment and Reemployment Rights 
Act').
``(2) Exception.--In cases where the Maritime Administrator 
determines a hardship exists, which prevents the mariner from 
meeting the requirements of the Program, the requirements of 
paragraph (1) shall not apply.
``(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $2,000,000 for each of fiscal years 2025 through 2034.''.
(c) Clerical Amendment.--The table of sections for chapter 521 of 
title 46, United States Code, as amended by sections 602, 604, and 605, 
is amended by adding at the end the following:

``52105. United States Merchant Marine Career Retention Program.''.

Subtitle B--Workforce Pipeline

SEC. 611. MARITIME AND SHIPBUILDING RECRUITING CAMPAIGN.

(a) Purposes.--The purposes of this section are to--
(1) address the shortage of workers in the maritime sector 
and stimulate growth in the United States Merchant Marine and 
shipbuilding industries by providing funding for a 
comprehensive marketing, recruiting, and public relations 
campaign; and
(2) expand and nurture a robust maritime workforce that 
enhances the national security and strategic sealift readiness 
of the United States.
(b) In General.--The Maritime Administrator, in consultation with 
the Maritime Security Board, through contracts described in subsection 
(c), shall develop and deploy branding, content, advertising buys, and 
local and national engagement strategies to implement the campaigns 
described in subsection (d).
(c) Contracts.--The contracts described in this subsection shall be 
made to reputable marketing, recruiting, and public relations firms 
through a competitive bidding process.
(d) Campaigns.--The Maritime Administrator, in coordination with 
the Secretary of Labor and in consultation with the Secretary of 
Defense, shall carry out targeted campaigns under this section to--
(1) promote the virtues of work in the merchant marine of 
the United States for the purpose of sailing in international 
trade, including Military Sealift Command mariner positions, 
and the critical need for skilled workers in the maritime 
industry, and to attract workers to such industry; and
(2) promote the virtues of work in the shipbuilding 
industry of the United States, highlighting the critical need 
for skilled workers in the shipbuilding industry, and to 
attract workers to such industry.
(e) Campaign Objectives.--The campaigns under this section shall 
focus on the following objectives:
(1) Emphasize the importance of maritime and shipbuilding 
work for national security.
(2) Showcase the numerous opportunities available in the 
maritime industry and the shipbuilding industry.
(3) Highlight the shortage of workers in the maritime 
industry and the shipbuilding industry.
(4) Seek out new and non-traditional audiences and 
platforms to bring workers from different backgrounds and with 
different skill sets into the maritime industry and 
shipbuilding industry.
(5) Promote the excitement, benefits, and appeal of a 
career in the maritime industry and the shipbuilding industry.
(6) Inform potential workers of the points of entry 
available to join and receive training for such a career, 
including--
(A) the United States Merchant Marine Academy;
(B) State and regional maritime academies described 
in chapter 515 of title 46, United States Code;
(C) merchant mariner and shipbuilding labor 
organization training facilities;
(D) merchant mariner and shipbuilding 
apprenticeship programs approved by the Secretary of 
Labor;
(E) shipbuilding industry training programs;
(F) certain community colleges and private 
institutions of higher education;
(G) maritime training high schools; and
(H) Centers of Excellence for Domestic Maritime 
Workforce Training and Education designated by the 
Maritime Administration.
(7) Inform potential workers of sources of financial 
assistance for training for individuals interested in joining 
the maritime industry and the shipbuilding industry.
(8) Attract workers to the maritime and shipbuilding 
industries.
(9) Highlight successes in the United States maritime and 
shipbuilding industries.
(f) Target Audience.--Each campaign under this section shall target 
a diverse audience, including--
(1) potential workers interested in maritime industry 
careers or shipbuilding industry careers;
(2) educational institutions and their students considering 
vocational training in the maritime industry and shipbuilding 
industry, including kindergarten through grade 12 levels;
(3) veterans and individuals seeking career transitions; 
and
(4) the general public to raise awareness about the 
importance of the maritime and shipbuilding industries.
(g) Reporting and Accountability.--
(1) Quarterly report.--Not later than 30 days after the 
last day of each quarter of each fiscal year during which a 
campaign is carried out under this section, the firm selected 
under subsection (b) shall submit a report with respect to such 
quarter to the Maritime Administrator and the appropriate 
committees of Congress detailing the progress, outreach, and 
impact of each campaign carried out under this section during 
such quarter and the effectiveness of each such campaign in 
increasing applications for employment in the maritime and 
shipbuilding industries of the United States.
(2) Final report.--The firm selected under subsection (b) 
shall submit a comprehensive final report not later than 60 
days after the conclusion of all campaigns carried out under 
this section.
(h) Effective Date.--The Maritime Administrator shall initiate the 
competitive bidding process described in subsection (b) not later than 
180 days after the date that appropriations are first made available 
for this section.
(i) Authorization of Appropriations.--
(1) FY 2025-2028.--There are authorized to be appropriated 
out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to the 
Maritime Administrator, for each of fiscal year 2025, 2026, 
2027, and 2028, $15,000,000 to carry out this section, of 
which--
(A) $10,000,000 shall be for the program 
established under subsection (d)(1) (work in the United 
States Merchant Marine); and
(B) $5,000,000 shall be for the program established 
under subsection (d)(2) (work in the shipbuilding 
industry).
(2) FY 2029-2034.--There are authorized to be appropriated 
out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to the 
Maritime Administrator, for each of fiscal year 2029, 2030, 
2031, 2032, 2033, and 2034, $25,000,000 to carry out this 
section, of which--
(A) $15,000,000 shall be for the program 
established under subsection (d)(1) (work in the United 
States Merchant Marine); and
(B) $10,000,000 shall be for the program 
established under subsection (d)(2) (work in the 
shipbuilding industry).

SEC. 612. CENTERS OF EXCELLENCE FOR DOMESTIC MARITIME WORKFORCE 
TRAINING AND EDUCATION.

Section 51706 of title 46, United States Code, is amended--
(1) in subsection (c)(1)(B)(iii), by striking ``nonprofit 
entity'' and inserting ``entity''; and
(2) by adding to the end the following:
``(d) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $25,000,000 for each of fiscal years 2025 through 2034.''.

SEC. 613. MARITIME CAREER AND TECHNICAL EDUCATION ADVISORY COMMITTEE.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the 
Maritime Administrator.
(2) Advisory committee.--The term ``Advisory Committee'' 
means the Maritime Career and Technical Education Advisory 
Committee established under subsection (b).
(b) Advisory Committee Plan and Establishment.--
(1) Plan.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall develop a plan, 
and notify Congress of such plan, to establish a Maritime 
Career and Technical Education Advisory Committee to--
(A) bring representatives of maritime industrial 
base employers and education providers together to 
identify joint opportunities to train needed workers 
for maritime careers; and
(B) develop and disperse best practices and 
recommendations for the improvement of shipbuilding 
education and training programs, naval architecture 
education programs, and merchant marine training and 
certification programs.
(2) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall establish the 
Advisory Committee.
(c) Membership.--
(1) Administrator.--The Advisory Committee shall include 
the Administrator (or a delegate of the Administrator) who 
shall serve as Chair of the Advisory Committee.
(2) Representatives.--The Advisory Committee shall be 
composed of representatives from each of the following, to be 
appointed the Administrator:
(A) Maritime education, including representatives 
from--
(i) the Centers of Excellence for Domestic 
Maritime Workforce Training and Education 
designated by the Maritime Administration, 
taking into consideration--
(I) geographic diversity;
(II) the rate of employment after 
graduation;
(III) training or skillset 
diversity; and
(IV) other qualities as determined 
by the Administrator;
(ii) the United States Naval Sea Cadet 
Corps; and
(iii) kindergarten through grade 12 
maritime education programs designated by the 
Maritime Administration.
(B) The maritime workforce, including 
representatives from--
(i) skilled workers representing a wide 
swath of the career and technical maritime 
industry both onshore and offshore;
(ii) career and technical education 
certified instructors; and
(iii) maritime labor organizations.
(C) Maritime industry, including representatives 
from--
(i) shipbuilding, ship repair, and shipyard 
industry stakeholders;
(ii) maritime industrial base coalitions;
(iii) shipping industry stakeholders; and
(iv) owners and operators of vessels of the 
United States.
(D) Technical nonprofit organizations with 
expertise in the maritime industry, including 
representatives from--
(i) think tanks;
(ii) recognized classification societies; 
and
(iii) professional societies.
(E) The Federal Government, including 
representatives from--
(i) the Department of Education;
(ii) the Department of Labor;
(iii) the Department of Transportation;
(iv) the Department of the Navy;
(v) the United States Coast Guard;
(vi) the National Oceanic and Atmospheric 
Administration;
(vii) the Army Corps of Engineers; and
(viii) the Federal Maritime Commission
(d) Meetings.--
(1) In general.--The Advisory Committee shall meet not less 
often than annually.
(2) Quorum established.--Two thirds of all members 
appointed by the Administrator under subsection (c) shall 
constitute a quorum for a meeting of the Advisory Committee.
(3) Working groups.--The Advisory Committee shall include 
working groups that shall meet not less often than quarterly 
each year.
(e) FACA.--Chapter 10 of title 5, United States Code, shall apply 
to the Advisory Committee.
(f) Development of Curricula.--Consistent with the purposes of the 
Advisory Committee established in subsection (b) and applicable law 
(including regulations), the Advisory Committee shall recommend 
curricula for key skills for maritime professionals and make such 
curricula publicly available to institutions of higher education, 
career and technical education schools, and State maritime academies.
(g) Reporting.--The Advisory Committee shall submit to the 
appropriate committees of Congress and the Maritime Security Board and 
publish on the website of the Maritime Administration, an annual report 
that includes best practices and policy recommendations, as described 
in subsection (b).
(h) Rule of Construction.--Nothing in this section shall be 
construed to create new regulatory authority or supersede existing law 
(including regulations) as of the day before the date of enactment of 
this Act, relating to shipbuilding education and training programs, 
naval architecture education programs, and merchant marine training and 
certification programs.

SEC. 614. MILITARY CANDIDATES TO MARINER CAREERS RECRUITMENT EXCHANGE.

(a) Duties of Secretary of Defense.--The Secretary of Defense 
shall--
(1) encourage and incentivize military recruiters to 
recommend the United States Department of Transportation 
Maritime Administration to potential recruits who do not 
qualify for military service in the Armed Forces; and
(2) establish a mechanism for military recruiters to 
introduce recruits described in paragraph (1) who are 
interested in maritime service to representatives from the 
Maritime Administration, in accordance with the procedures 
established under subsection (b).
(b) Duties of the Maritime Administrator.--The Maritime 
Administrator shall--
(1) establish a mechanism to receive recruitment referrals 
from military recruiters;
(2) provide hand-off services to connect recruits with 
educational resources and institutions, recognized Maritime 
Centers of Excellence, eligible maritime industry employers, 
and other maritime industry career services, as appropriate;
(3) track the number of referrals from the Department of 
Defense; and
(4) track the number of recruits who enroll in maritime 
industry programs, to the extent practicable.
(c) Reporting Requirement.--
(1) Briefing on the implementation strategy.--Not later 
than 90 days after the date of enactment of this Act, the 
Maritime Administrator, in coordination with the Secretary of 
Defense, shall submit a briefing to the appropriate committees 
of Congress about a strategy for implementing the activities 
required under this section, including--
(A) a timeline for implementation; and
(B) the identification of the Department of Defense 
recruiter incentives and training required for maximum 
utility in carrying out such activities.
(2) Annual report on program efficacy.--One year after the 
date of enactment of this Act, and annually thereafter, the 
Maritime Administrator, in coordination with the Secretary of 
Defense, shall submit a report to the appropriate committees of 
Congress on the efficacy and utility of the activities carried 
out under this section, including--
(A) the number of Department of Defense referrals 
to the Maritime Administration;
(B) the number of Maritime Administration hand-offs 
to the maritime industry;
(C) an assessment of the efficacy of the activities 
carried out under this section; and
(D) challenges and recommendations relating to such 
activities.

SEC. 615. MARITIME WORKER DATA COLLECTION.

(a) Publication of Report.--The Maritime Administrator shall 
publish an biennial report on the state of the merchant mariner 
workforce.
(b) Completion of Report.--The Maritime Administrator shall 
complete the biennial report required under subsection (a) or enter 
into a contract with another entity to complete the report.
(c) Content of Report.--The biennial report required under 
subsection (a) shall include, at minimum--
(1) a count of United States Merchant Mariners with valid 
merchant mariner credentials and credentials in continuity 
endorsement;
(2) a count of inactive but credentialed and formerly 
credentialed United States Merchant Mariners, to the extent 
practicable, and an evaluation of--
(A) the challenges to identifying such individuals;
(B) opportunities to partner with Federal, State, 
local, and non-government entities to identify such 
individuals; and
(C) an action plan of how to implement the 
opportunities described under subparagraph (B);
(3) a count of United States mariners and foreign workers 
employed on vessels, rigs, platforms, and other vehicles or 
structures off the coast of the United States and an evaluation 
of the percentage of United States and foreign workers employed 
on--
(A) coastwise-endorsed vessels; and
(B) vessels of the United States which do not have 
a coastwise endorsement;
(4) a listing of actively operating vessels of the United 
States;
(5) a report of merchant mariner requirements needed in the 
event of a national defense sealift operation and any gaps 
identified in quantity and quality, and other variables of 
concern, as determined by the Administrator;
(6) a general outlook for the future of the merchant 
mariner industry and potential gaps or surpluses of merchant 
mariners;
(7) identification of any concerns in the credentialing of 
merchant mariners, which may include general processing issues, 
shortage of training providers or instructors, and barriers to 
entry due to costs to the economically disadvantaged; and
(8) recommendations, based on data collected, on ways to--
(A) improve retention of existing merchant 
mariners;
(B) create expedited pathways for mariners with 
expired credentials to renew their credentials; and
(C) encourage new merchant mariners to enter the 
industry.
(d) Accessibility of Data.--
(1) In general.--Except as provided in paragraph (2), the 
Maritime Administrator, and any authorized agent of the 
Maritime Administrator, shall have full access to available 
Coast Guard mariner credentialing data, in a manner that 
ensures the protection of personally identifiable information, 
in order to complete the report required under subsection (a).
(2) Exception.--The Maritime Administrator, and any 
authorized agent of the Maritime Administrator, may not have 
access to confidential medical information pursuant to 
paragraph (1).
(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $1,000,000 for each of the fiscal years 2025 through 2029.

SEC. 616. MILITARY TO MARITIME TRANSITION.

(a) Recommendations Required.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense, in 
consultation with the Secretary of the Navy, the Secretary of the Air 
Force, the Secretary of the Army, the Secretary of the department in 
which the Coast Guard is operating, the Maritime Security Board, the 
Department of Veterans Affairs, and the Department of Labor, shall 
submit a report to the appropriate committees of Congress containing--
(1) recommendations about how to increase and improve 
opportunities for transitioning servicemembers to secure 
employment in the maritime industry at sea and shoreside; and
(2) a plan to implement those recommendations.
(b) Considerations.--In carrying out subsection (a), the Secretary 
of Defense shall--
(1) identify barriers that servicemembers face when trying 
to transition to the United States maritime industry, including 
the merchant marines, shipbuilding, ship repair, and shipping;
(2) consider opportunities to improve, expedite, and 
alleviate the burdens on servicemembers transitioning to the 
maritime industry, including efforts to--
(A) inform transitioning servicemembers of 
employment opportunities in the United States maritime 
industry;
(B) assist transitioning servicemembers in 
determining how their military credentials and 
experience translate to credentialed civilian 
employment in the maritime industry;
(C) increase the establishment and uptake of 
accelerated or bridge programs to assist separating 
members of the Armed Forces in translating military 
credentials and experience into maritime industry 
credentials and employment;
(D) increase the availability and accessibility of 
preparatory activities under the SkillBridge program 
established under section 1143(e) of title 10, United 
States Code, in the United States maritime industry;
(E) incorporate the maritime industry in the 
Transition Assistance Program, as described in chapter 
58 of title 10, United States Code; and
(F) enhance the activities carried out pursuant to 
the Military to Mariners Act of 2022 (section 11514 of 
division K of the James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023 (Public Law 117-
263)); and
(3) specifically consider the transition of servicemembers 
to employment in the shipbuilding and ship repair maritime 
industries.

SEC. 617. EARLY MARITIME EDUCATION AND YOUTH INVOLVEMENT.

(a) Secretary of the Navy Budget Request.--In the Secretary of the 
Navy's annual budget submission to Congress, the Secretary of the Navy 
shall include, as a distinct item, the funding request for the United 
States Naval Sea Cadet Corps.
(b) Engagement With Elementary School and Secondary School 
Students.--The Maritime Administrator shall encourage designated 
Centers of Excellence for Domestic Maritime Workforce Training and 
Education to engage with students in kindergarten through grade 12.

SEC. 618. INTERNATIONAL SCHOLARSHIP FOR MARINER AND NAVAL ARCHITECTURE 
EXCHANGES.

(a) In General.--The Maritime Administrator shall establish an 
international exchange program for mariners, naval architects, and 
marine engineers between the United States and countries described in 
subsection (b).
(b) Eligible Participants.--In carrying out the program under this 
section, the Administrator shall limit participation to United States 
citizens and citizens of--
(1) member countries of NATO;
(2) treaty allies of the United States; and
(3) major non-NATO allies of the United States.
(c) Placements.--In carrying out the program under this section, 
the Administrator shall seek corporate and government partners for 
placement of eligible participants of the program.
(d) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986, $2,000,000 to carry 
out this section for each of fiscal years 2025 through 2034.

Subtitle C--United States Merchant Marine Academy and State Maritime 
Academies

SEC. 621. AUTHORIZATION OF APPROPRIATIONS FOR UNITED STATES MERCHANT 
MARINE ACADEMY INFRASTRUCTURE AND FACILITIES 
MODERNIZATION.

(a) Findings.--Congress finds the following:
(1) The United States Merchant Marine Academy plays a 
critical role in training service-obligated licensed merchant 
mariners to operate commercial vessels, in peacetime and during 
times of conflict.
(2) The United States Merchant Marine Academy is 1 of the 5 
Federal service academies and plays a critical role in 
maintaining a domestic, commercial maritime industry, with each 
graduate having a commitment to serve not less than 8 years in 
the foreign and domestic commerce and the national defense of 
the United States, which may include service on a merchant 
vessel documented under chapter 121 of title 46, and graduates 
make up more than 80 percent of the United States Navy's 
Strategic Sealift Officer Program.
(3) The United States defense readiness and economic 
security relies on a strong investment in training and 
cultivating United States Merchant Marine officers at the 
United States Merchant Marine Academy.
(4) Most of the facilities at the United States Merchant 
Marine Academy date back to the Academy's founding, have not 
been modernized since, and are not conducive to the immersive 
training and demanding coursework today's Midshipmen are 
required to complete.
(5) Rehabilitating and modernizing the campus 
infrastructure at the United States Merchant Marine Academy is 
necessary to ensuring current and future generations of 
Midshipmen receive a first-class education.
(b) Sense of the Senate.--It is the sense of the Senate--
(1) to ensure that the United States continues to have a 
sufficient number of service-obligated licensed merchant 
mariners to meet current and future economic and national 
security needs, the Maritime Administration and the Department 
of Transportation have a responsibility to provide suitable 
academic, training, and dormitory facilities at the United 
States Merchant Marine Academy by rapidly implementing a 
comprehensive plan for campus-wide modernization in accordance 
with section 51329 of title 46, United States Code, (referred 
to in this section as the ``Campus Modernization Plan'') and 
providing sufficient accountability and oversight to ensure 
that milestones in such plan are met;
(2) in developing the comprehensive Campus Modernization 
Plan for the United States Merchant Marine Academy, the 
Maritime Administration, and the Department of Transportation 
should utilize, to the maximum extent practicable, the 
``Merchant Marine Academy Full Speed Ahead Plan'' developed by 
the Maritime Security Infrastructure Council as summarized in 
the Congressional Record, dated February 28, 2024;
(3) given the conditions of the United States Merchant 
Marine Academy as of the date of enactment of this section, a 
comprehensive, campus-wide modernization is needed to 
significantly upgrade or replace facilities throughout the 
campus; and
(4) the Maritime Administration and the Department of 
Transportation should identify opportunities to utilize design-
build contracts to increase delivery times and reduce costs.
(c) Campus Modernization Plan.--Chapter 513 of title 46, United 
States Code, is amended by adding at the end the following:
``Sec. 51329. 10-year Campus Modernization Plan
``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall develop and begin to 
implement a comprehensive Campus Modernization Plan (referred to in 
this section as the `Campus Modernization Plan'), informed by the 
`United States Merchant Marine Academy Full Speed Ahead Plan' developed 
by the Maritime Security Infrastructure Council as summarized in the 
Congressional Record, dated February 28, 2024, to carry out a campus-
wide modernization at the United States Merchant Marine Academy.
``(b) Objectives.--In carrying out the Campus Modernization Plan 
authorized under subsection (a), the Administrator shall prioritize the 
following objectives:
``(1) Promoting modern education best practices by 
constructing learning facilities that leverage state-of-the art 
technologies and learning best practices.
``(2) Providing Midshipmen with access to facilities needed 
to pass the United States Coast Guard License Exam for Third 
Mate or Third Assistant Engineer Unlimited.
``(3) Ensuring Midshipmen have access to facilities 
sufficient to enable Midshipmen to maintain physical readiness 
standards required of United States Navy officers.
``(4) Developing campus infrastructure to ensure the 
Academy attracts a diverse pool of applicants.
``(5) Providing facilities that enable industry engagement 
and continuing education opportunities.
``(6) Maintaining a safe and secure campus environment for 
all Midshipmen, which shall include any facilities or 
infrastructure needed to meet the requirements of sections 
51326, 51327, or 51328 of this title.
``(7) Implementing, to the extent practicable, the 
facilities and infrastructure recommendations in chapter 4 of 
the report titled `Organizational Assessment of the United 
States Merchant Marine Academy: A Path Forward' issued by the 
National Academy of Public Administration in November 2021.
``(c) Inclusions.--In meeting the objectives of subsection (b), the 
Campus Modernization Plan authorized under subsection (a) shall 
include--
``(1) construction of new facilities or significant 
renovation of existing facilities to provide--
``(A) Standards of Training, Certification, and 
Watchkeeping applications laboratories;
``(B) a Safety Of Life At Sea training pool;
``(C) engineering powerplant laboratories;
``(D) athletic facilities that meet the needs of 
both male and female students;
``(E) enhanced waterfront facilities, to include a 
new pier;
``(F) a visitor welcome center and main campus 
security office building;
``(G) housing facilities for senior staff and 
faculty; and
``(H) sufficient parking facilities for faculty, 
staff, and campus visitors;
``(2) upgrades to all classrooms and laboratories with 
modern information technology infrastructure;
``(3) a campus-wide upgrade and retrofit of--
``(A) the electric distribution power grid;
``(B) the sanitary sewer system piping;
``(C) the storm drainage system; and
``(D) the drinking water system, including 
development of a separate and redundant fire 
suppression system; and
``(4) renovations of existing campus facilities to ensure 
all campus facilities--
``(A) are structurally sound;
``(B) have reliable heating and air conditioning 
systems;
``(C) have functioning plumbing and electrical 
systems;
``(D) are protected from the elements, including 
through roof replacements and window repairs or 
replacements, as needed;
``(E) are accessible in accordance with the 
Americans with Disabilities Act of 1990; and
``(F) have working fire alarm and fire suppression 
systems.
``(d) Requirements.--For the duration of the Campus Modernization 
Plan authorized under subsection (a), the Administrator shall ensure 
that the Academy remains fully operational.
``(e) Use of a Federal Construction Agent.--Consistent with the 
requirements of section 3515(d)(3) of the James M. Inhofe National 
Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263), 
the Administrator shall seek to enter into an agreement with a Federal 
construction agent to carry out the Campus Modernization Plan 
authorized under subsection (a).
``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Transportation, out of the Maritime 
Security Trust Fund established under section 9512 of the Internal 
Revenue Code of 1986, for fiscal years 2025 through 2034, for the 
phased rehabilitation, modernization, and construction of facilities 
and infrastructure at the United States Merchant Marine Academy, in 
accordance with this section, including the Campus Modernization Plan 
authorized in subsection (a), $1,020,000,000 of which--
``(1) $54,000,000 is authorized to be appropriated for 
fiscal year 2025 for design and planning purposes, which shall 
be used for the development of a design-build plan for the 
phased rehabilitation, modernization, and construction of 
facilities and infrastructure at the United States Merchant 
Marine Academy in accordance with the Campus Modernization 
Plan; and
``(2) for fiscal years 2026 through 2034, $107,333,333 is 
authorized to be appropriated for each year for construction 
and contingency purchases necessary to execute the Campus 
Modernization Plan.''.
(d) Clerical Amendment.--The table of sections for chapter 513 of 
title 46, United States Code, is amended by adding at the end the 
following:

``51329. 10-Year Campus Modernization Plan.''.

SEC. 622. UNITED STATES MERCHANT MARINE ACADEMY.

(a) Sense of Congress.--It is the sense of Congress that--
(1) the United States Merchant Marine Academy, one of our 
Nation's 5 Federal service academies, is vital to our national 
security, and modernizing the Academy's aging infrastructure 
and investing in faculty and students must be congressional 
priorities;
(2) sufficient funding must be provided to enable the 
maximum student enrollment that the campus infrastructure of 
the United States Merchant Marine Academy can support; and
(3) considering the Academy's role as a co-equal military 
service academy, the United States Merchant Marine Academy 
should be included in the rotation of presidential attendance 
at graduations.
(b) Authorization of Appropriations.--Section 51301 of title 46, 
United States Code, is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Transportation $125,000,000 for each 
of fiscal years 2025 through 2034 for Academy operations.''.
(c) Report on Enrollment.--Not later than 180 days after the date 
of enactment of this Act, the Maritime Administrator shall submit a 
report to the appropriate committees of Congress identifying the 
additional resources needed to increase enrollment at the United States 
Merchant Marine Academy.

SEC. 623. RETIREMENT SERVICE CREDIT FOR SERVICE AS A MIDSHIPMAN AT THE 
UNITED STATES MERCHANT MARINE ACADEMY.

(a) Civil Service Retirement System.--Section 8331(13) of title 5, 
United States Code, is amended, in the flush text following 
subparagraph (C), by inserting ``or the United States Merchant Marine 
Academy'' after ``Naval Academy''.
(b) Federal Employees' Retirement System.--Section 8401(31) of 
title 5, United States Code, is amended, in the flush text following 
subparagraph (C), by inserting ``or the United States Merchant Marine 
Academy'' after ``Naval Academy''.
(c) Applicability.--The amendments made by this section shall apply 
to--
(1) any annuity, the eligibility for which is based on a 
separation occurring before, on, or after the date of enactment 
of this Act; and
(2) any period of service as a midshipman at the United 
States Merchant Marine Academy occurring before, on, or after 
the date of enactment of this Act.

SEC. 624. STATE MARITIME ACADEMIES.

(a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Maritime Administrator shall submit a report 
to Congress containing the results of a study to evaluate the 
additional resources needed to allow State maritime academies to 
increase enrollment and produce additional mariners.
(b) Need for Additional State Maritime Academies.--Such study shall 
consider whether there is a need for additional State maritime 
academies in States that do not operate a maritime academy.
(c) Authorization of Appropriations.--Section 51501 of title 46, 
United States Code, is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund established under 
section 9512 of the Internal Revenue Code of 1986, $10,000,000 for 
assistance to State maritime academies under subsection (a) for each of 
fiscal years 2025 through 2034.''.

SEC. 625. MILITARY TO MARINER ENROLLMENT AT A STATE MARITIME ACADEMY.

Section 51506 of title 46, United States Code, is amended--
(1) in subsection (a)(2), by inserting before the semicolon 
the following: ``, which shall include standards for a program 
described in subsection (c)'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following:
``(c) Merchant Mariner Expedited Preparation Program.--
``(1) In general.--A State maritime academy shall offer a 
program for eligible individuals described in paragraph (2) 
through which the eligible individuals--
``(A) complete a merchant marine officer 
preparation program approved by the Secretary, and the 
requirements for the issuance of a license under 
section 7101 of this title, in less than 3 years; and
``(B) are not required to earn a baccalaureate or 
other degree from the State maritime academy.
``(2) Eligible individuals.--An eligible individual 
described in paragraph (1) is an individual who--
``(A)(i) is an honorably discharged veteran of the 
Armed Forces; or
``(ii) is a member of the National Guard or 
Reserves with not less than 6 years of service; and
``(B) has earned a baccalaureate degree from an 
institution of higher education (as defined in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 
1002)) before entering the State maritime academy 
program.''.

SEC. 626. ENFORCEMENT OF SERVICE OBLIGATION REQUIREMENTS.

(a) In General.--The Maritime Administrator shall ensure that--
(1) each citizen who is appointed as a cadet at the United 
States Merchant Marine Academy and signs a cadet commitment 
agreement under section 51306 of title 46, United States Code, 
meets the service obligation requirements of that agreement; 
and
(2) each individual that signs a student incentive payment 
agreement under section 51509 of title 46, United States Code, 
meets the service obligation requirements under that agreement.
(b) Reporting Requirement.--The Maritime Administrator shall 
establish an electronic system through which each individual with a 
service obligation under such section 51306 or 51509 (referred to in 
this section as a ``service-obligated mariner'') shall annually 
demonstrate that they are meeting their service obligation or have a 
valid deferment consistent with section 51310 of title 46, United 
States Code, or section 51510 of title 46, United States Code, as 
applicable.
(c) Notification of Violation.--The Maritime Administrator shall 
transmit a written notice to each service-obligated mariner who fails 
to meet the reporting requirement of subsection (b), notifying such 
individual of the applicable penalties established under section 51306 
of title 46, United States Code, or section 51509 of title 46, United 
States Code, for failure to carry out the applicable service 
requirements, including cost recovery.
(d) Report to Congress.--Not later than 180 days after the date of 
enactment of this section, and annually thereafter, the Maritime 
Administrator shall submit to the appropriate committees of Congress a 
report on the status of all service-obligated mariners, which shall 
include--
(1) information about how each service-obligated mariner is 
meeting their service obligation requirement, which shall be 
based on the results of the data collected under subsection 
(b);
(2) the number of service-obligated mariners who have not 
met their service obligation and have not complied with the 
reporting requirement under subsection (b); and
(3) the number of actions taken by the Maritime 
Administrator under sections 51306(b), 51306(d), 51306(f), and 
51509(g) to recover costs from service-obligated mariners who 
have not demonstrated that they have met their service 
obligation requirements.

SEC. 627. FUEL FUNDING FOR TRAINING SHIPS OPERATED BY STATE MARITIME 
ACADEMIES.

(a) Conforming Amendment.--Section 51504 of title 46, United States 
Code, is amended by striking subsection (f) and inserting the 
following:
``(f) Fuel Costs.--Subject to the availability of appropriations, 
the Secretary shall pay to each State maritime academy the costs of 
fuel used by a vessel provided under this section while used for 
training in accordance with section 51512.''.
(b) Amendment.--Chapter 515 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 51512. Funding for training ships operated by State maritime 
academies
``(a) Fuel Funding.--
``(1) In general.--Subject to the availability of 
appropriations, the Secretary shall pay to each State maritime 
academy the costs of fuel used by a vessel that is loaned to 
the State maritime academy in accordance with section 51504 
while used for training.
``(2) Maximum amounts.--The amount of the payment to a 
State maritime academy under subsection (a) may not exceed 
$20,000,000 for each of fiscal years 2025 through 2034.
``(3) Prohibition.--Maritime academies that receive funding 
under subsection (a) may not--
``(A) profit from charging cadets to go to sea for 
their licensing when using federally provided fuel; or
``(B) utilize the vessel as housing for students 
outside of seasonal training cruises, unless students 
elect voluntarily to live aboard the vessel.
``(4) Requirement.--Each State maritime academy that 
receives fuel costs under this section shall offer billets for 
liaison officers from each military service during the time 
such vessel is provided to that State maritime academy.
``(b) Crew.--
``(1) In general.--Each State maritime academy shall make 
crew positions available on a vessel that is loaned to the 
State maritime academy for mariners enrolled in the United 
States Merchant Marine Career Retention Program established 
under section 52105.
``(2) Crew funding.--For each crew slot filled by a mariner 
enrolled in the career retention program, as provided for under 
paragraph (1), the Secretary shall pay the crew costs for that 
mariner, subject to the availability of appropriations.
``(c) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986, $120,000,000 to 
carry out this section for each of fiscal years 2025 through 2034.''.
(c) Clerical Amendment.--The table of sections for chapter 515 of 
title 46, United States Code, is amended by adding at the end the 
following:

``51512. Fuel funding for training ships operated by State maritime 
academies.''.

SEC. 628. STATE MARITIME ACADEMY SEA TERM SCHOLARSHIP PROGRAMS.

(a) In General.--Chapter 515 of title 46, United States Code, as 
amended by section 627, is further amended by adding at the end the 
following:
``Sec. 51513. State Maritime Academy Sea Term Scholarship Programs
``(a) In General.--The Maritime Administrator shall work with 
private entities in the maritime industry to establish a scholarship 
program--
``(1) for students at State maritime academies to offset 
expenses associated with completion of a summer sea term to 
receive sea-time required to earn a Coast Guard license; and
``(2) which is entirely or predominantly funded through 
contributions from a private entity.
``(b) Contributed Funds.--The Maritime Administrator shall enter 
into a cooperative agreement, or other agreement, with private entities 
in the maritime industry to accept funding from private entities for 
the purpose of establishing such a scholarship program. The cooperative 
agreement may include any terms considered necessary by the Maritime 
Administrator.
``(c) Privileges.--The Maritime Administrator may provide certain 
privileges to a private entity who contributes funds for a scholarship 
program under this section, including opportunities to provide 
information about employment opportunities with the private entity to 
students enrolled in the scholarship program.
``(d) Structure.--In establishing a scholarship program to offset 
expenses associated with a summer sea term--
``(1) the Maritime Administrator may enter into an 
agreement with a student at a State maritime academy that has 
an agreement with the Secretary of Transportation under section 
51505 of this title, to offset expenses associated with 
completion of a summer sea term; or
``(2) the Maritime Administrator may enter into an 
agreement with a State maritime academy that has an agreement 
with the Secretary of Transportation under section 51505 of 
this title, to offset expenses for all students who participate 
in a summer sea term program.
``(e) Relationship to Financial Assistance Programs.--Recognizing 
the need for licensed merchant mariners, the Maritime Administrator 
shall encourage participants of the financial assistance programs under 
part C of this subtitle, to enter into agreements under this section to 
establish scholarship programs to offset expenses associated with 
summer sea term.
``(f) Requirements for Students.--Any student who benefits from a 
scholarship program under this section shall enter into an agreement 
with the Maritime Administrator which requires the student to--
``(1) complete the course of instruction at the academy the 
individual is attending;
``(2) obtain a merchant mariner license, without limitation 
as to tonnage or horsepower, from the Coast Guard as an officer 
in the merchant marine of the United States, accompanied by the 
appropriate national and international endorsements and 
certification required by the Coast Guard for service aboard 
vessels on domestic and international voyages, without 
limitation, within 3 months of completion of the course of 
instruction at the academy the individual is attending;
``(3) serve in a position that supports the foreign and 
domestic commerce and the national defense of the United States 
for at least 1 year after graduation from the academy--
``(A) as a merchant marine officer on a documented 
vessel or a vessel owned and operated by the United 
States Government or by a State; or
``(B) as a commissioned officer on active duty in 
an Armed Force of the United States, as a commissioned 
officer in the National Oceanic and Atmospheric 
Administration, or in other maritime-related Federal 
employment which serves the national security interests 
of the United States, as determined by the Maritime 
Administrator; and
``(4) report to the Maritime Administrator on compliance 
with this subsection.
``(g) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986, $2,500,000 to carry 
out this section for each of fiscal years 2025 through 2034.''.
(b) Clerical Amendment.--The table of sections for chapter 515 of 
title 46, United States Code, as amended by section 627, is further 
amended by adding at the end the following:

``51513. State Maritime Academy Sea Term Scholarship Programs.''.

SEC. 629. NAVAL JOINT EXERCISE INVOLVEMENT FOR TRAINING SHIPS OPERATED 
BY STATE MARITIME ACADEMIES.

(a) In General.--The Secretary of the Navy, in coordination with 
the Maritime Administrator, shall, to the extent practicable, include 
in national and international maritime warfare exercises not less than 
1 training vessel used by a State maritime academy and maintained 
pursuant to section 51504 of title 46, United States Code, in order to 
provide an opportunity to integrate merchant mariners with naval and 
military operations.
(b) Participants.--Subject to guidance issued by the Secretary of 
the Navy and Maritime Administrator, an individual may participate in 
the exercise aboard that training ship if the individual is--
(1) a licensed merchant mariner; or
(2) a student from the United States Merchant Marine 
Academy, a State maritime academy, a Center of Excellence for 
Domestic Maritime Workforce Training and Education, or a 
merchant marine center established under section 147 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3197), as 
added by section 612 of this Act.
(c) Priority.--In selecting participants under subsection (b) the 
Administrator shall give priority to students described in paragraph 
(2) of subsection (b).
(d) Vessels.--In coordination with the Secretary of the Navy, the 
Maritime Administrator shall rotate training vessels to ensure that 
each training vessel described in subsection (a) has an equal 
opportunity to participate in such exercises.

Subtitle D--Maritime Credentialing Modernization

SEC. 631. MERCHANT MARINER CREDENTIALING MODERNIZATION.

(a) Merchant Mariner Credentialing Modernization.--The Secretary of 
the department in which the Coast Guard is operating shall carry out 
necessary system and process changes to carry out the activities 
described in paragraphs (1) through (4).
(1) Licensing, certification, and documentation database.--
Replacement of the merchant mariner licensing, certification, 
and documentation database such that the database allows for--
(A) the electronic submission of merchant mariner 
credential applications (including sea service, 
professional qualifications, course completion data, 
safety and suitability, and medical records) and course 
approval requests;
(B) direct submission of sea service information 
from employers and course completion data from training 
providers and other stakeholders to provide data 
securely and directly so that documentation does not 
need to be submitted later by the merchant mariner; and
(C) the electronic processing and evaluation of 
information for the issuance of credentials and course 
approvals, including the capability for the Secretary 
to complete remote evaluation of the information 
submitted.
(2) System for data exchange.--Implementation of a system 
that provides for the exchange of data with government agencies 
and industry stakeholders, which provides the Maritime 
Administration and other agencies, as appropriate, anonymized 
and aggregated data showing the following:
(A) The total amount of sea service for individuals 
with a valid merchant mariner credential.
(B) The number of credentialed mariners by 
individual rating and the capability to filter data by 
endorsements.
(C) Demographic information, including age, gender, 
ethnicity, and address or location.
(D) National Maritime Center processing times.
(E) The number of Coast Guard approved training 
providers, and, for each such training provider, the 
number of courses taken by individuals who have, or who 
are applying for, a merchant mariner credential from 
that training provider.
(3) Public facing portal.--Implementation of a system that 
includes a public facing portal in the .gov domain instead of 
the .mil domain to accept merchant mariner applicant 
information, including credential applications, course 
completion data, and course approval requests, that complies 
with the requirements for cybersecurity and privacy information 
of electronic systems in the .gov domain.
(4) Examination processes.--Upgrading the examination 
processes for merchant mariner examinations, by--
(A) implementing an examination regime that 
provides for electronic and third party administration 
of examinations;
(B) reassessing the content of tests through the 
development of job task analysis for all credentials; 
and
(C) implementing a robust system to analyze 
examination data.
(b) Report.--The Secretary of the department in which the Coast 
Guard is operating shall submit--
(1) an annual report to the Committee on Commerce, Science, 
and Transportation, the Committee on Appropriations, and the 
Committee on Armed Services of the Senate, and the Committee on 
Transportation and Infrastructure, the Committee on 
Appropriations, and the Committee on Armed Services of the 
House of Representatives, on the progress of the system and 
process changes required under subsection (a); and
(2) a final report to those Committees 1 year after full 
operating capability of the complete system, comprised of all 4 
systems required under subsection (a).
(c) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Maritime Security Trust Fund, established under 
section 9512 of the Internal Revenue Code of 1986 to carry out this 
section, $20,000,000 for fiscal year 2025, to remain available until 
expended.

SEC. 632. REVISING MERCHANT MARINER DECK TRAINING REQUIREMENTS.

(a) General Definitions.--Section 2101 of title 46, United States 
Code, is amended--
(1) by redesignating paragraphs (20) through (56) as 
paragraphs (21) through (57), respectively; and
(2) by inserting after paragraph (19) the following:
``(20) `merchant mariner credential' means a merchant 
mariner license, certificate, or document that the Secretary is 
authorized to issue pursuant to this title.''.
(b) Examinations.--Section 7116 of title 46, United States Code, is 
amended by striking subsection (c).
(c) Merchant Mariners Documents.--
(1) General requirements.--Section 7306 of title 46, United 
States Code, is amended to read as follows:
``Sec. 7306. General requirements and classifications for members of 
deck departments
``(a) In General.--The Secretary may issue a merchant mariner 
credential, to members of the deck department in the following classes:
``(1) Able Seaman-Unlimited.
``(2) Able Seaman-Limited.
``(3) Able Seaman-Special.
``(4) Able Seaman-Offshore Supply Vessels.
``(5) Able Seaman-Sail.
``(6) Able Seaman-Fishing Industry.
``(7) Ordinary Seaman.
``(b) Classification of Credentials.--The Secretary may classify 
the merchant mariner credential issued under subsection (a) based on--
``(1) the tonnage and means of propulsion of vessels;
``(2) the waters on which vessels are to be operated; or
``(3) other appropriate standards.
``(c) Considerations.--In issuing the credential under subsection 
(a), the Secretary may consider the following qualifications of the 
merchant mariner:
``(1) Age.
``(2) Character.
``(3) Habits of life.
``(4) Experience.
``(5) Professional qualifications demonstrated by 
satisfactory completion of applicable examinations or other 
educational requirements.
``(6) Physical condition, including sight and hearing.
``(7) Other requirements established by the Secretary, 
including career patterns and service appropriate to the 
particular service, industry, or job functions the individual 
is engaged.''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is amended by striking the 
item relating to section 7306 and inserting the following:

``7306. General requirements and classifications for members of deck 
departments.''.
(3) General requirements for members of engine 
departments.--Section 7313(b) of title 46, United States Code, 
is amended by striking ``and coal passer''.
(4) Training.--Section 7315 of title 46, United States 
Code, is amended--
(A) by amending subsection (a) to read as follows:
``(a) Graduation from a nautical school program approved by the 
Secretary may be substituted for the service requirements under 
sections 7307 through 7311a and 7314.'';
(B) in subsection (b)--
(i) by striking ``one-third'' and inserting 
``one-half''; and
(ii) by striking ``7307-7311 of this 
title'' and inserting ``7307-7311a and 7314''; 
and
(C) by striking subsection (c).
(d) Reduction of Lengths of Certain Periods of Service.--
(1) In general.--Title 46, United States Code, is amended--
(A) in section 7307, by striking ``3 years'' and 
inserting ``18 months'';
(B) in section 7308, by striking ``18 months'' and 
inserting ``12 months''; and
(C) in section 7309, by striking ``12 months'' and 
inserting ``6 months''.
(2) Temporary reduction of lengths of certain periods of 
service.--Section 3534(j) of the National Defense Authorization 
Act for Fiscal Year 2024 (Public Law 118-31) is repealed.
(e) Merchant Mariner Credentials.--Section 7510 of title 46, United 
States Code, is amended by striking subsection (d).
(f) Implementation.--The Secretary of the department in which the 
Coast Guard is operating shall implement the amended requirements under 
subsections (c)(3), (c)(4), and (d)(1) of this section without regard 
to chapters 5 and 6 of title 5, United States Code, and Executive 
Orders 12866 and 13563 (5 U.S.C. 601 note).

SEC. 633. INSPECTIONS FOR TRANSPORTATION SECURITY.

(a) In General.--Chapter 81 of part F of subtitle II of title 46, 
United States Code, is amended by adding at the end the following:
``Sec. 8109. Inspections for transportation security
``(a) In General.--
``(1) Inspection.--The Secretary shall periodically, but 
not less than once annually, inspect each covered facility to 
verify that the owner or operator of the covered facility has a 
valid exemption under subsection (c) of section 30 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1356(c)).
``(2) Covered facility.--In this subsection, the term 
`covered facility' means a vessel, rig, platform, or other 
vehicle or structure that, but for an exemption under 
subsection (c) of section 30 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1356(c)) would otherwise be subject to the 
regulations under subsection (a)(3) of such section.
``(b) Transportation Security Card.--During an inspection under 
this section, the Secretary shall confirm that all crew members that 
are required to have a transportation worker identification credential 
pursuant to section 70105 have such a credential.''.
(b) Clerical Amendment.--The table of sections for chapter 81 of 
title 46, United States Code, is amended by adding at the end the 
following:

``8109. Inspections for transportation security.''.

SEC. 634. TECHNICAL AMENDMENTS RELATING TO REFERENCES TO SEAMEN.

(a) Merchant Mariner Credentials.--The heading for part E of 
subtitle II of title 46, United States Code, is amended by striking 
``merchant seamen licenses, certificates, and documents'' and inserting 
``merchant mariner credentials''.
(b) Able Seafarers--Unlimited.--
(1) In general.--The section heading for section 7307 of 
title 46, United States Code, is amended by striking ``seamen'' 
and inserting ``seafarers''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is further amended in the 
item relating to section 7307 by striking ``seamen'' and 
inserting ``seafarers''.
(c) Able Seamen--Limited.--
(1) In general.--The section heading for section 7308 of 
title 46, United States Code, is amended by striking ``seamen'' 
and inserting ``seafarers''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is further amended in the 
item relating to section 7308 by striking ``seamen'' and 
inserting ``seafarers''.
(d) Able Seafarers--Special.--
(1) In general.--The section heading for section 7309 of 
title 46, United States Code, is amended by striking ``seamen'' 
and inserting ``seafarers''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is further amended in the 
item relating to section 7309 by striking ``seamen'' and 
inserting ``seafarers''.
(e) Able Seafarers--Offshore Supply Vessels.--
(1) In general.--The section heading for section 7310 of 
title 46, United States Code, is amended by striking ``seamen'' 
and inserting ``seafarers''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is further amended in the 
item relating to section 7310 by striking ``seamen'' and 
inserting ``seafarers''.
(f) Able Seafarers--Sail.--
(1) In general.--The section heading for section 7311 of 
title 46, United States Code, is amended by striking ``seamen'' 
and inserting ``seafarers''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is further amended in the 
item relating to section 7311 by striking ``seamen'' and 
inserting ``seafarers''.
(g) Able Seamen--Fishing Industry.--
(1) In general.--The section heading for section 7311a of 
title 46, United States Code, is amended by striking ``seamen'' 
and inserting ``seafarers''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is further amended in the 
item relating to section 7311a by striking ``seamen'' and 
inserting ``seafarers''.
(h) Parts E and F.--Parts E and F of subtitle II of title 46, 
United States Code, is amended--
(1) by striking ``seaman'' and inserting ``seafarer'' each 
place it appears; and
(2) by striking ``seamen'' and inserting ``seafarers'' each 
place it appears.
(i) Clerical Amendments.--The table of sections for subtitle II of 
title 46, United States Code, is amended in the item relating to part E 
by striking ``MERCHANT SEAMEN LICENSES, CERTIFICATES, AND DOCUMENTS'' 
and inserting ``MERCHANT MARINER CREDENTIALS''.

SEC. 635. RENEWAL OF MERCHANT MARINER LICENSES AND DOCUMENTS.

Section 7507 of title 46, United States Code, is amended by adding 
at the end the following:
``(d) Renewal.--With respect to any renewal of a valid merchant 
mariner credential issued under this part that is not an extension 
under subsection (a) or (b), the validity period of such credential 
shall begin the day after the expiration of the current credential.''.

SEC. 636. MERCHANT SEAMEN LICENSES, CERTIFICATES, AND DOCUMENTS; 
MANNING OF VESSELS.

(a) Citizenship or Noncitizen Nationality.--
(1) In general.--Section 7102 of title 46, United States 
Code, is amended--
(A) in the section heading, by inserting ``or 
noncitizen nationality'' after ``Citizenship''; and
(B) by inserting ``or noncitizen nationals (as such 
term is described in section 308 of the Immigration and 
Nationality Act (8 U.S.C. 1408))'' after ``citizens of 
the United States''.
(2) Clerical amendment.--The table of sections for chapter 
71 of title 46, United States Code, is amended by striking the 
item relating to section 7102 and inserting the following:

``7102. Citizenship or noncitizen nationality.''.
(b) Citizenship or Noncitizen Nationality Notation on Merchant 
Mariners' Documents.--
(1) In general.--Section 7304 of title 46, United States 
Code, is amended--
(A) in the section heading, by inserting ``or 
noncitizen nationality'' after ``Citizenship''; and
(B) by inserting ``or noncitizen national (as such 
term is described in section 308 of the Immigration and 
Nationality Act (8 U.S.C. 1408))'' after ``citizen of 
the United States''.
(2) Clerical amendment.--The table of sections for chapter 
73 of title 46, United States Code, is amended by striking the 
item relating to section 7304 and inserting the following:

``7304. Citizenship or noncitizen nationality notation on merchant 
mariners' documents.''.
(c) Citizenship or Noncitizen Nationality.--
(1) In general.--Section 8103 of title 46, United States 
Code, is amended--
(A) in the section heading by inserting ``or 
noncitizen nationality'' after ``Citizenship'';
(B) in subsection (a), by inserting ``or noncitizen 
national'' after ``citizen of the United States'';
(C) in subsection (b)--
(i) in paragraph (1)(A)(i), by inserting 
``or noncitizen national'' after ``citizen of 
the United States''; and
(ii) in paragraph (3)--
(I) in the matter preceding 
subparagraph (A), by inserting ``or 
noncitizen nationality'' after 
``citizenship''; and
(II) in subparagraph (C), by 
inserting ``or noncitizen nationals'' 
after ``citizens of the United 
States'';
(D) in subsection (c), by inserting ``or noncitizen 
nationals'' after ``citizens of the United States'';
(E) in subsection (d)--
(i) in paragraph (1), by inserting ``or 
noncitizen nationals'' after ``citizens of the 
United States''; and
(ii) in paragraph (2), by inserting ``or 
noncitizen national'' after ``citizen of the 
United States'' each place it appears;
(F) in subsection (e), in the matter preceding 
paragraph (1), by inserting ``or noncitizen national'' 
after ``citizen of the United States'' each place it 
appears;
(G) in subsection (i)(1)(A), by inserting ``or 
noncitizen national'' after ``citizen of the United 
States'';
(H) in subsection (k)(1)(A), by inserting ``or 
noncitizen national'' after ``citizen of the United 
States''; and
(I) by adding at the end the following:
``(l) Noncitizen National Defined.--In this section, the term 
`noncitizen national' means an individual described in section 308 of 
the Immigration and Nationality Act (8 U.S.C. 1408).''.
(2) Clerical amendment.--The table of sections for chapter 
81 of title 46, United States Code, is amended by striking the 
item relating to section 8103 and inserting the following:

``8103. Citizenship or noncitizen nationality and Navy Reserve 
requirements.''.
(d) Command of Documented Vessels.--Section 12131(a) of title 46, 
United States Code, is amended by inserting ``or noncitizen national 
(as such term is described in section 308 of the Immigration and 
Nationality Act (8 U.S.C. 1408))'' after ``citizen of the United 
States''.
(e) Invalidation of Certificates of Documentation.--Section 
12135(2) of title 46, United States Code, is amended by inserting ``or 
noncitizen national (as such term is described in section 308 of the 
Immigration and Nationality Act (8 U.S.C. 1408))'' after ``citizen of 
the United States''.

SEC. 637. REACTIVATION OF EXPIRED LICENSE.

(a) In General.--Chapter 75 of subtitle II of part E, of title 46, 
United States Code, is amended by adding at the end the following:
``Sec. 7512. Authority for reactivation of United States Merchant 
Mariner credentials
``(a) Licenses and Certificates of Registry.--Notwithstanding 
sections 7106 and 7107, the Secretary of the department in which the 
Coast Guard is operating may renew for not more than 2 years an expired 
license or certificate of registry issued for an individual under 
chapter 71 if the Secretary determines that the renewal is in response 
to a national emergency declared by Congress or declared under section 
201 of the National Emergencies Act (50 U.S.C. 1621), as deemed 
necessary by the Secretary.
``(b) Merchant Mariner Documents.--Notwithstanding section 7302(g), 
the Secretary may renew for not more than 2 years an expiring merchant 
mariner's document issued for an individual under chapter 73 if the 
Secretary determines that the renewal is in response to a national 
emergency proclaimed by the President or declared by Congress, as 
deemed necessary by the Secretary.
``(c) Manner of Renewal.--Any renewal granted under this section 
may be granted to individual seamen or a specifically identified group 
of seamen.''.
(b) Clerical Amendment.--The table of sections for chapter 75 of 
title 46, United States Code, is amended by adding at the end the 
following:

``7512. Authority for reactivation of United States Merchant Mariner 
credentials.''.

TITLE VII--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

SEC. 701. ESTABLISHMENT OF THE MARITIME SECURITY TRUST FUND.

(a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. MARITIME SECURITY TRUST FUND.

``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Maritime Security 
Trust Fund', consisting of such amounts as may be--
``(1) appropriated to such Trust Fund as provided in this 
section, or
``(2) credited to such Trust Fund as provided in section 
9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Trust Fund amounts equivalent to--
``(1) the taxes received in the Treasury under--
``(A) section 1352 (relating to alternative tax on 
qualifying shipping activities),
``(B) section 60301 of title 46, United States Code 
(relating to regular tonnage taxes),
``(C) section 60302 of title 46, United States Code 
(relating to special tonnage taxes), and
``(D) section 60303 of title 46, United States Code 
(relating to light money),
``(2) the amount received in the Treasury and attributable 
to revenue collected from duties imposed--
``(A) under section 466 of the Tariff Act of 1930 
(19 U.S.C. 1466) (relating to equipment and repair of 
vessels),
``(B) on and after July 6, 2018, with respect to 
articles of the People's Republic of China pursuant to 
section 301 of the Trade Act of 1974 (19 U.S.C. 2411), 
notice of which was published in the Federal Register 
on June 20, 2018 (83 Fed. Reg. 28710), and
``(C) under section 60502 of title 46, United 
States Code (relating to discriminating duty on goods 
imported in foreign vessels or from contiguous 
countries),
``(3) any penalties paid with respect to a vessel pursuant 
to--
``(A) section 436 of the Tariff Act of 1930 (19 
U.S.C. 1436),
``(B) section 453 of the Tariff Act of 1930 (19 
U.S.C. 1453),
``(C) section 454 of the Tariff Act of 1930 (19 
U.S.C. 1454),
``(D) section 464 of the Tariff Act of 1930 (19 
U.S.C. 1464),
``(E) section 497 of the Tariff Act of 1930 (19 
U.S.C. 1497),
``(F) section 584 of the Tariff Act of 1930 (19 
U.S.C. 1584),
``(G) section 592 of the Tariff Act of 1930 (19 
U.S.C. 1592),
``(H) section 593A of the Tariff Act of 1930 (19 
U.S.C. 1593a),
``(I) section 7 of the Act of June 19, 1886 (24 
Stat. 81, chapter 421; 19 U.S.C. 1706a),
``(J) section 2107 of title 46, United States Code,
``(K) section 2302 of title 46, United States Code,
``(L) section 3318 of title 46, United States Code,
``(M) section 3718 of title 46, United States Code,
``(N) section 4106 of title 46, United States Code,
``(O) section 5116 of title 46, United States Code,
``(P) section 11303 of title 46, United States 
Code,
``(Q) section 11501 of title 46, United States 
Code,
``(R) section 12151 of title 46, United States 
Code,
``(S) section 12507 of title 46, United States 
Code,
``(T) section 14701 of title 46, United States 
Code,
``(U) section 30707 of title 46, United States 
Code, with respect to the portion of the fine that goes 
to the United States Government under subsection (c) of 
such section 30707,
``(V) section 31309 of title 46, United States 
Code,
``(W) section 31330 of title 46, United States 
Code,
``(X) section 41107 of title 46, United States 
Code,
``(Y) section 41108 of title 46, United States 
Code,
``(Z) section 42108 of title 46, United States 
Code,
``(AA) section 44104 of title 46, United States 
Code,
``(BB) section 70052 of title 46, United States 
Code,
``(CC) section 70119 of title 46, United States 
Code,
``(DD) section 70506 of title 46, United States 
Code, and
``(EE) section 80509 of title 46, United States 
Code, and
``(4) any revenue generated in connection with the seizure 
and forfeiture of a maritime vessel under--
``(A) section 3 of the Act of August 5, 1935 (49 
Stat. 518, chapter 438; 19 U.S.C. 1703),
``(B) section 70052 of title 46, United States 
Code, and
``(C) section 70507 of title 46, United States 
Code.
``(c) Expenditures From Trust Fund.--Amounts in the Maritime 
Security Trust Fund shall be available, as provided by appropriation 
Acts, 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 2024''.
(b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. Maritime Security Trust Fund.''.

SEC. 702. UNITED STATES VESSEL INVESTMENT CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48E the following new section:

``SEC. 48F. UNITED STATES VESSEL INVESTMENT CREDIT.

``(a) In General.--For purposes of section 46, the United States 
Vessel Investment credit for any taxable year is an amount equal to the 
applicable percentage of any qualified investment for such taxable year 
with respect to any qualified vessel.
``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage with respect to any qualified vessel shall be an 
amount equal to the sum of--
``(1) 33 percent, plus
``(2) in the case of any qualified vessel for which the 
owner of such vessel will, as part of the agreement described 
in subsection (d)(1)(F) and for the duration of such agreement, 
obtain protection and indemnity insurance with respect to such 
vessel from an insurance company that is domiciled and 
headquartered in the United States and is an underwriter that 
is approved by the Maritime Administrator, 5 percent, plus
``(3) in the case of any qualified vessel which is 
classified by and designed in accordance with the rules of the 
American Bureau of Shipping or any other classification society 
headquartered in the United States and recognized by the 
Secretary of the department in which the Coast Guard is 
operating in accordance with section 3316 of title 46, United 
States Code, 2 percent.
``(c) Qualified Investment.--For purposes of subsection (a), the 
qualified investment with respect to any qualified vessel is equal to 
the amount paid or incurred by the taxpayer in connection with the 
construction, repowering, or reconstruction of such vessel--
``(1) in a shipyard of the United States, and
``(2) by an entity which is not a foreign entity of 
concern.
``(d) Qualified Vessel.--
``(1) In general.--For purposes of this section, the term 
`qualified vessel' means a cargo vessel--
``(A) which is a United States flag vessel (as 
defined in section 1355),
``(B) which, in the case of any repowering or 
reconstruction of such vessel, was originally 
constructed in the United States,
``(C) which operates in providing transportation in 
the United States foreign trade (as such term is 
defined in section 1355(a)),
``(D) which is not a passenger vessel, as defined 
in section 2101 of title 46, United States Code,
``(E) which is--
``(i) a bulk carrier vessel,
``(ii) a tanker vessel,
``(iii) a roll-on/roll-off vessel,
``(iv) a container vessel,
``(v) a multi-purpose vessel,
``(vi) a cable vessel,
``(vii) a heavy-lift vessel, or
``(viii) any other type of vessel 
determined appropriate by the Maritime 
Administrator, in consultation with the 
Maritime Security Board,
``(F) which, pursuant to an agreement between the 
taxpayer and the Maritime Administrator, operates as a 
vessel of the United States for a period of not less 
than 10 years, and
``(G) the construction of which begins before 
January 1, 2032.
``(2) Exclusion related to foreign entities of concern.--
The term `qualified vessel' shall not include a vessel which--
``(A) is, or was previously, owned or operated by a 
foreign entity of concern,
``(B) was constructed, repowered, or reconstructed 
in a shipyard which is owned or operated by a foreign 
entity of concern, or
``(C) was registered as a vessel of a foreign 
country of concern at any time prior to being placed in 
service by the taxpayer.
``(e) Definitions.--
``(1) Vessels.--For purposes of subsection (d)(1)(E), any 
term used in such paragraph which is also used in chapter 536 
of title 46, United States Code, shall have the same meaning as 
when used in such chapter.
``(2) Foreign entity of concern; foreign country of 
concern.--For purposes of this section, the terms `foreign 
entity of concern' and `foreign country of concern' have the 
same meaning given such terms under section 4 of the SHIPS for 
America Act of 2024.
``(f) Certain Progress Expenditure Rules Made Applicable.--Rules 
similar to the rules of subsections (c)(4) and (d) of section 46 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of subsection (a).
``(g) Regulations.--The Secretary, in consultation with the 
Maritime Administrator, shall issue such regulations or other guidance 
as may be necessary or appropriate to carry out the purposes of this 
section, including any regulations or guidance which may be necessary 
or appropriate to recapture the benefit of any credit determined under 
this section with respect to any qualified vessel, or any increase in 
the applicable percentage under subsection (b) with respect to any 
qualified vessel, in the case of any taxpayer which fails to comply 
with the terms of the agreement described in subsection (d)(1)(F) with 
respect to such qualified vessel.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986, as 
amended by section 13702(b)(1) of Public Law 117-169, is 
amended--
(A) in paragraph (6), by striking ``and'' at the 
end,
(B) in paragraph (7), by striking the period at the 
end and inserting ``, and'', and
(C) by adding at the end the following:
``(8) the United States Vessel Investment credit.''.
(2) Section 49(a)(1)(C) of such Code, as amended by section 
13702(b)(2) of Public Law 117-169, is amended--
(A) in clause (vii), by striking ``and'' at the 
end,
(B) in clause (viii), by striking the period at the 
end and inserting ``, and'', and
(C) by adding at the end the following:
``(ix) with respect to any qualified vessel 
(as defined in section 48F(d)), the portion of 
the basis of such vessel attributable to 
amounts paid or incurred by the taxpayer in 
connection with the construction, repowering, 
or reconstruction of such vessel.''.
(3) The table of sections for subpart E of part IV of 
subchapter A of chapter 1 of such Code is amended by inserting 
after the item relating to section 48E the following new item:

``Sec. 48F. United States Vessel Investment credit.''.
(c) Recapture for Failure to Operate as a Vessel of the United 
States.--Section 50(a) of the Internal Revenue Code of 1986 is 
amended--
(1) in paragraph (4), by striking ``or any applicable 
transaction to which paragraph (3)(A) applies'' and inserting 
``any applicable transaction to which paragraph (3)(A) applies, 
or any violation to which paragraph (6)(A) applies'',
(2) by redesignating paragraph (6) as paragraph (7),
(3) by inserting after paragraph (5) the following new 
paragraph:
``(6) Failure to operate qualified vessel as a vessel of 
the united states.--
``(A) In general.--If an applicable taxpayer 
violates any of the requirements of the agreement 
described in section 48F(d)(1)(F) during the duration 
of such agreement with respect to any investment credit 
property which is eligible for the United States Vessel 
Investment credit under section 48F(a), then the tax 
under this chapter for the taxable year in which such 
violation occurs shall be increased by 100 percent of 
the aggregate decrease in the credits allowed under 
section 38 for all prior taxable years which would have 
resulted solely from reducing to zero any credit 
determined under section 46 which is attributable to 
the United States Vessel Investment credit under 
section 48F(a) with respect to such property.
``(B) Exception.--Subparagraph (A) shall not apply 
if the applicable taxpayer demonstrates to the 
satisfaction of the Secretary and the Maritime 
Administrator that the taxpayer is in compliance with 
the agreement described in section 48F(d)(1)(F) within 
30 days of a determination and notice by the Secretary.
``(C) Regulations and guidance.--The Secretary 
shall issue such regulations or other guidance as the 
Secretary determines necessary or appropriate to carry 
out the purposes of this paragraph, including 
regulations or other guidance which provide for 
requirements for recordkeeping or information reporting 
for purposes of administering the requirements of this 
paragraph.'', and
(4) in paragraph (7) (as redesignated by paragraph (2))--
(A) in subparagraph (C), by striking ``or (3)'' and 
inserting ``(3), or (4)'', and
(B) by striking subparagraph (E) and inserting the 
following:
``(E) Applicable taxpayer.--For purposes of this 
subsection, the term `applicable taxpayer' means any 
taxpayer who has been allowed--
``(i) for purposes of paragraph (3), a 
credit under section 48D(a) for any prior 
taxable year, or
``(ii) for purposes of paragraph (6), a 
credit under section 48F(a) for any prior 
taxable year.''.
(d) Elective Payment and Transfer of Credit.--
(1) Elective payment.--Section 6417 of the Internal Revenue 
Code of 1986 is amended--
(A) in subsection (b), by adding at the end the 
following:
``(13) The United States Vessel Investment credit under 
section 48F.'', and
(B) in subsection (d)(1)--
(i) in subparagraph (E), by striking ``(C), 
or (D)'' each place it appears and inserting 
``(C), (D), or (E)'',
(ii) by redesignating subparagraph (E) (as 
amended by clause (i)) as subparagraph (F), and
(iii) by inserting after subparagraph (D) 
the following:
``(E) Election with respect to united states vessel 
investment credit.--If a taxpayer other than an entity 
described in subparagraph (A) makes an election under 
this subparagraph with respect to any taxable year in 
which such taxpayer has made a qualified investment 
with respect to any qualified vessel (as defined in 
section 48F), such taxpayer shall be treated as an 
applicable entity for purposes of this section for such 
taxable year, but only with respect to the credit 
described in subsection (b)(13).''.
(2) Transfer.--Section 6418(f)(1)(A) of the Internal 
Revenue Code of 1986 is amended by adding at the end the 
following:
``(xii) The United States Vessel Investment 
credit under section 48F.''.
(e) Exception Relating to Alternative Tax on Qualifying Shipping 
Activities.--Section 1357(c) of the Internal Revenue Code of 1986 is 
amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and 
inserting ``paragraph (2) or (4)'', and
(2) by adding at the end the following:
``(4) Exception for united states vessel investment 
credit.--Paragraph (1) shall not apply with respect to any 
credit allowed to the taxpayer under section 48F.''.
(f) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2024.

SEC. 703. CERTAIN PAYMENTS FOR MARITIME SECURITY EXCLUDED FROM GROSS 
INCOME.

(a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139I the following new subsection:

``SEC. 139J. MARITIME SECURITY PAYMENTS.

``(a) In General.--Gross income shall not include any payment made 
pursuant to--
``(1) section 53106 of title 46, United States Code,
``(2) section 53801 of such title,
``(3) section 53206 of such title,
``(4) section 53406 of such title,
``(5) section 53604 of such title,
``(6) section 54101 of such title, or
``(7) section 54301 of such title.
``(b) Denial of Double Benefit.--No deduction or credit shall be 
allowed for, or by reason of, any expenditure to the extent of the 
amount excluded under subsection (a) for any payment which was provided 
with respect to such expenditure. The adjusted basis of any property 
shall be reduced by the amount excluded under subsection (a) which was 
provided with respect to such property.''.
(b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139I the following new item:

``Sec. 139J. Maritime security payments.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 704. ELIMINATION OF 30-DAY LIMITATION ON DOMESTIC OPERATIONS.

(a) In General.--Section 1355 of the Internal Revenue Code of 1986 
is amended--
(1) in subsection (f), by striking paragraph (4), and
(2) in subsection (g)(2), by striking subparagraph (D).
(b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

SEC. 705. QUALIFYING SHIPPING ACTIVITIES.

Section 1356(b) of the Internal Revenue Code of 1986 (relating to 
qualifying shipping activities) is amended by striking ``activities in 
operating'' and inserting ``the carriage of goods (as defined in 
section 1 of the Carriage of Goods by Sea Act (46 U.S.C. 30701 note)) 
by''.

SEC. 706. QUALIFYING VESSEL.

Section 1355(a) of the Internal Revenue Code of 1986 is amended--
(1) by striking paragraph (4) and inserting the following:
``(4) Qualifying vessel.--The term `qualifying vessel' 
means a vessel which is--
``(A) self-propelled (or a combination self-
propelled and non-self-propelled),
``(B) a United States flag vessel or a United 
States-owned foreign flag vessel,
``(C) not less than 6,000 deadweight tons, and
``(D) used exclusively in the United States foreign 
trade during the period that the election under this 
subchapter is in effect.'', and
(2) by adding at the end the following:
``(8) United states-owned foreign flag vessel.--The term 
`United States-owned foreign flag vessel' means any vessel 
which--
``(A) is documented under the laws of a country 
(other than the United States) or a foreign registry 
which is not a foreign country of concern (as defined 
by section 4 of the SHIPS for America Act of 2024),
``(B) is owned by a person which--
``(i)(I) is a citizen of the United States 
(as determined under section 50501 of title 46, 
United States Code), or
``(II) is controlled (within the meaning of 
section 954(d)(3)) by a citizen of the United 
States (as so determined), and
``(ii) owns a fleet of United States flag 
vessels, and
``(C) has in effect a Voluntary Intermodal Sealift 
Agreement or Voluntary Tanker Agreement with the 
Maritime Administrator.''.

SEC. 707. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.

(a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by section 702(a), is 
amended by inserting after section 48F the following new section:

``SEC. 48G. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.

``(a) In General.--For purposes of section 46, the shipyard 
investment tax credit for any taxable year is an amount equal to 25 
percent of the qualified investment for such taxable year with respect 
to any qualified shipyard facility of a taxpayer described in section 
48D(c)(1).
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the 
qualified investment with respect to any qualified shipyard 
facility for any taxable year is the basis of any qualified 
property placed in service by the taxpayer during such taxable 
year which is part of a qualified shipyard facility.
``(2) Qualified property.--The term `qualified property' 
shall have the same meaning given such term in section 
48D(b)(2), except that subparagraph (A)(iv) of such section 
shall be applied by substituting `qualified shipyard facility' 
for `advanced manufacturing facility'.
``(3) Qualified shipyard facility.--For purposes of this 
section, the term `qualified shipyard facility' means a 
facility--
``(A) which is located within the United States 
(including any territory or possession of the United 
States), and
``(B) for which the primary purpose is--
``(i) constructing or repairing commercial 
or military oceangoing vessels,
``(ii) manufacturing components which are 
critical (as determined by the Secretary, in 
consultation with the Secretary of the Navy and 
the Maritime Administrator) to the operation of 
commercial or military oceangoing vessels, or
``(iii) manufacturing equipment which is 
used to produce or repair commercial or 
military oceangoing vessels.
``(4) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of 
section 46 (as in effect on the day before the date of the 
enactment of the Revenue Reconciliation Act of 1990) shall 
apply for purposes of subsection (a).
``(c) Denial of Double Benefit.--This section shall not apply to 
any property placed in service by the taxpayer during the taxable year 
if a credit was allowed under section 48F to such taxpayer during such 
taxable year.
``(d) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section.
``(e) Termination of Credit.--The credit allowed under this section 
shall not apply to property placed in service after December 31, 
2031.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986, as 
amended by section 702(b)(1), is amended--
(A) in paragraph (7), by striking ``and'' at the 
end,
(B) in paragraph (8), by striking the period at the 
end and inserting ``, and'', and
(C) by adding at the end the following:
``(9) the shipyard investment tax credit.''.
(2) Section 49(a)(1)(C) of such Code, as amended by section 
702(b)(2), is amended--
(A) in clause (viii), by striking ``and'' at the 
end,
(B) in clause (ix), by striking the period at the 
end and inserting ``, and'', and
(C) by adding at the end the following:
``(x) the basis of any qualified property 
(as defined in subsection (b)(2) of section 
48G) which is part of a qualified shipyard 
facility (as defined in subsection (b)(3) of 
such section).''.
(3) Section 50(a)(2)(E) of such Code, as amended by section 
13702(b) of Public Law 117-169, is amended by striking ``or 
48E(e)'' and inserting ``48E(e), or 48G(b)(4)''.
(4) The table of sections for subpart E of part IV of 
subchapter A of chapter 1 of such Code, as amended by section 
702(b)(3), is amended by inserting after the item relating to 
section 48F the following new item:

``Sec. 48G. Shipyard investment tax credit.''.
(c) Elective Payment and Transfer of Credit.--
(1) Elective payment.--Section 6417 of the Internal Revenue 
Code of 1986, as amended by section 702, is amended--
(A) in subsection (b), by adding at the end the 
following:
``(14) The shipyard investment tax credit under section 
48G.'', and
(B) in subsection (d)(1)--
(i) in subparagraph (F), by striking ``(D), 
or (E)'' each place it appears and inserting 
``(D), (E), or (F)'',
(ii) by redesignating subparagraph (F) (as 
amended by clause (i)) as subparagraph (G), and
(iii) by inserting after subparagraph (E) 
the following:
``(F) Election with respect to the shipyard 
investment tax credit.--If a taxpayer other than an 
entity described in subparagraph (A) makes an election 
under this subparagraph with respect to any taxable 
year in which such taxpayer has placed in service any 
qualified property which is part of a qualified 
shipyard facility (as defined in section 48G), such 
taxpayer shall be treated as an applicable entity for 
purposes of this section for such taxable year, but 
only with respect to the credit described in subsection 
(b)(14).''.
(2) Transfer.--Section 6418(f)(1)(A) of the Internal 
Revenue Code of 1986, as amended by section 702, is amended by 
adding at the end the following:
``(xiii) The shipyard investment tax credit 
under section 48G.''.
(d) Exception Relating to Alternative Tax on Qualifying Shipping 
Activities.--Paragraph (4) of section 1357(c) of the Internal Revenue 
Code of 1986, as added by section 702(e), is amended to read as 
follows:
``(4) Exception for united states vessel investment credit 
and shipyard investment tax credit.--Paragraph (1) shall not 
apply with respect to any credit allowed to the taxpayer under 
section 48F or 48G.''.
(e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2024.

SEC. 708. TAX INCENTIVES RELATING TO MERCHANT MARINE CAPITAL 
CONSTRUCTION FUNDS.

(a) In General.--Section 7518 of the Internal Revenue Code of 1986 
is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the 
following:
``(1) In general.--The amount deposited in a fund 
established under chapter 535 of title 46 of the United States 
Code (hereinafter in this section referred to as a `capital 
construction fund') for a taxable year may not exceed the 
amount specified in the agreement under section 53503(a) of 
such title, which shall be an amount that is related to a 
commitment to invest the revenue from the capital construction 
fund into funding the construction of new vessels or funding 
cargo handling equipment.'',
(B) in paragraph (2), by striking ``paragraph 
(1)(B)'' each place it appears and inserting 
``paragraph (1)'', and
(C) by adding at the end the following new 
paragraph:
``(4) Revenue.--For the purposes of paragraph (1), the 
revenue from the capital construction fund may include--
``(A) income attributable to the operation of any 
agreement vessel in foreign commerce or domestic trade 
or fisheries or the operation of a marine terminal in 
the United States,
``(B) the net proceeds from the disposition of an 
agreement vessel or cargo handling equipment or 
insurance or indemnity attributable to the vessel or 
cargo handling equipment,
``(C) the receipts from the investment or 
reinvestment of amounts held in the fund, and
``(D) the amount allowable as a deduction under 
section 167 for the taxable year with respect to the 
agreement vessels or cargo handling equipment.'',
(2) in subsection (b)(2), by striking ``Amounts in any 
capital construction fund'' and all that follows through ``(not 
in excess of 60 percent)'' and inserting ``An agreed 
percentage'',
(3) in subsection (e)--
(A) by striking paragraph (1) and inserting the 
following:
``(1) In general.--A qualified withdrawal from the fund is 
one made in accordance with the terms of the agreement but only 
if it is for--
``(A) the acquisition, construction, repowering, or 
reconstruction of--
``(i) a qualified vessel or a barge or 
container that is part of the complement of a 
qualified vessel, or
``(ii) cargo handling equipment, or
``(B) the payment of the principal on indebtedness 
incurred in the acquisition, construction, repowering, 
or reconstruction of--
``(i) a qualified vessel or a barge or 
container that is part of the complement of a 
qualified vessel, or
``(ii) cargo handling equipment.
Except to the extent provided in regulations prescribed 
by the Secretary, subparagraph (A), and so much of 
subparagraph (B) as relates only to barges and 
containers, shall apply only with respect to barges and 
containers constructed in the United States.'',
(B) by redesignating paragraph (2) as paragraph 
(4), and
(C) by inserting after paragraph (1) the following:
``(2) Fully automated cargo handling equipment.--No 
withdrawals may be made from a capital construction fund to 
purchase fully automated cargo handling equipment that is 
remotely operated or remotely monitored with or without the 
exercise of human intervention or control, if the Secretary 
determines such equipment would result in a net loss of jobs 
within a marine terminal.
``(3) Prohibition on people's republic of china cranes.--No 
withdrawals may be made from a capital construction fund to 
purchase cranes manufactured in the People's Republic of 
China.'',
(4) in subsection (f)--
(A) in paragraph (2), by inserting ``cargo handling 
equipment,'' after ``barge,'' both places the term 
appears,
(B) in paragraph (3), by inserting ``cargo handling 
equipment,'' after ``barge,'' both places the term 
appears, and
(C) in paragraph (4), by inserting ``cargo handling 
equipment,'' after ``barges,'',
(5) in subsection (g)--
(A) in the flush matter at the end of paragraph 
(2), by inserting ``cargo handling equipment,'' after 
``advanced'', and
(B) in paragraph (5)(A)--
(i) in the heading, by striking ``25 
years'' and inserting ``15 years'',
(ii) by striking ``26th, 27th, 28th, 29th, 
or 30th taxable year'' and inserting 
``following specified taxable year'', and
(iii) by striking the table contained 
therein and inserting the following:
``If the amount remains in the fund The applicable percentage is-
at the close of the-
16th taxable year.................................. 20 percent 
17th taxable year.................................. 40 percent 
18th taxable year.................................. 60 percent 
19th taxable year.................................. 80 percent 
20th taxable year................................100 percent'',
and
(6) in subsection (i), by striking ``as in effect on the 
date of the enactment of this section''.
(b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.

SEC. 709. EXEMPTION OF STUDENT INCENTIVE PAYMENT AGREEMENTS FROM GROSS 
INCOME.

(a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986, as amended by section 703, is further 
amended by inserting after section 139J the following new section:

``SEC. 139K. STUDENT INCENTIVE PAYMENT AGREEMENTS.

``In the case of an individual who has entered into an agreement 
described in section 51509 of title 46, United States Code, gross 
income does not include any student incentive payments made to such 
individual pursuant to such agreement.''.
(b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986, as 
amended by section 703, is further amended by inserting after the item 
relating to section 139J the following new item:

``Sec. 139K. Student incentive payment agreements.''.
(c) Effective Date.--The amendments made by this section shall 
apply with respect to payments made after December 31, 2024.

SEC. 710. MARITIME FUEL TAX PARITY.

Section 4041(g) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new sentence: ``For purposes of 
subsection (a)(2), the exemption under paragraph (1) shall also apply 
to fuel sold for use or used by a vessel which is both described in 
section 4042(c)(1) and actually engaged in trade between the Atlantic 
(including the Gulf of Mexico) or Pacific ports of the United States 
(including any territory or possession of the United States).''.
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