The SHIPS for America Act, introduced by Senators Mark Kelly and Todd Young, along with Representatives John Garamendi and Trent Kelly, aims to revitalize the U.S. shipbuilding and commercial maritime industries.
The bipartisan bill addresses the stark disparity between the U.S. and China in maritime capacity—China has 5,500 vessels in international commerce compared to only 80 U.S.-flagged ships. This gap poses significant economic and national security risks, particularly in times of conflict when a strong maritime fleet is critical for military logistics and supply chains.
Key provisions see that the Act will:
- Coordinate U.S. maritime policy by establishing the position of Maritime Security Advisor within the White House, who would lead an interagency Maritime Security Board to make whole-of-government strategic decisions for implementing a National Maritime Strategy.
- Establish a Maritime Security Trust Fund to reinvest duties and fees paid by the maritime industry into maritime security programs and infrastructure supporting maritime commerce.
- Establish a national goal of expanding the U.S.-flag international fleet by 250 ships in 10 years through the creation of the Strategic Commercial Fleet Program, promoting a fleet of commercially operated, U.S.-flagged, American-crewed, and domestically built merchant vessels for international commerce.
- Enhance the competitiveness of U.S.-flagged vessels by creating a Rulemaking Committee on Commercial Maritime Regulations and Standards to reduce bureaucratic barriers within the U.S. Coast Guard and require government-funded cargo to be transported on U.S.-flag vessels, with a mandate that a portion of commercial goods imported from China move aboard U.S.-flag vessels starting in 2029.
- Expand the U.S. shipyard industrial base for both military and commercial oceangoing vessels by introducing a 25% investment tax credit for shipyard investments, transforming the Title XI Federal Ship Financing Program into a revolving fund, and establishing a Shipbuilding Financial Incentives program to support innovative domestic shipbuilding and repair.
- Accelerate U.S. leadership in next-generation ship design, manufacturing processes, and energy systems by creating the U.S. Center for Maritime Innovation, with regional hubs across the country.
- Make historic investments in the maritime workforce by establishing a Maritime and Shipbuilding Recruiting Campaign, creating a Merchant Marine Career Retention Program, investing in infrastructure for the U.S. Merchant Marine Academy, supporting State Maritime Academies and Centers for Excellence in Domestic Maritime Workforce Training and Education, and streamlining the U.S. Coast Guard’s Merchant Mariner Credentialing system.
These measures aim to rebuild the U.S. shipyard industrial base, enhance competitiveness, and support military and commercial needs.
