Senators Young, Kelly introduce SHIPS for America Act

Thursday, U.S. Senators Todd Young (R-Ind.) and Mark Kelly (D AZ) and U.S. Representatives Trent Kelly (R-MS-1) and John Garamendi (D-CA-8) introduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, comprehensive legislation to revitalize the United States shipbuilding and commercial maritime industries.

After decades of neglect, the United States has a weakened shipbuilding capacity, a declining commercial shipping fleet that is dwarfed by China, and a diminished ability to supply the U.S. military during wartime.  

This historic proposal would restore American leadership across the oceans by incentivizing domestic shipbuilding, enabling U.S.-flagged vessels to better compete in international commerce, rebuilding the U.S. shipyard industrial base, expanding the mariner and shipyard workforce, and establishing national oversight and consistent funding for U.S. maritime policy. 

“America has been a maritime nation since our founding, and seapower was a significant contributor to our rise to being the most powerful nation on earth. Unfortunately, the bottom line now is America needs more ships. Shipbuilding is a national security priority and a stopgap against foreign threats and coercion. Our bill will revitalize the U.S. maritime industry, grow our shipbuilding capacity, rebuild America’s shipyard industrial base, and support nationwide workforce development in this industry. This legislation is critical to our warfighting capabilities and keeping pace with China,” said Senator Young.   

“We’ve always been a maritime nation, but the truth is we’ve lost ground to China, who now dominates international shipping and can build merchant and military ships much more quickly than we can,” said Senator Kelly. “The SHIPS for America Act is the answer to this challenge. By supporting shipbuilding, shipping, and workforce development, it will strengthen supply chains, reduce our reliance on foreign vessels, put Americans to work in good-paying jobs, and support the Navy and Coast Guard’s shipbuilding needs. I’m excited to introduce this comprehensive, fully paid for legislation today alongside my Republican and Democratic colleagues and our partners representing all parts of the industry, and together we’re going to work to get this effort across the finish line.” 

“Strengthening America’s shipbuilding capacity and revitalizing our commercial maritime industry is critical to both our national security and economic resilience. I look forward to continuing to work alongside Senator Mark Kelly, Senator Todd Young, and Congressman John Garamendi to secure our nation’s maritime future,” said Representative Kelly.  

“For far too long, the United States neglected our maritime industries and the critical role they play in our national and economic security – this ends with the SHIPS for America Act. I have spent over ten years working to revitalize the U.S. maritime industry in order to strengthen our national economy, create good-paying American jobs, and support our national security during peacetime or war. This bill represents the most substantial and comprehensive approach to have America compete and lead globally, and I’m proud to lead it alongside Senator Kelly, Senator Young, and Representative Kelly. Today, less than 200 oceangoing ships fly the American flag, the SHIPS for America Act will empower our shipyards and marine merchants to uphold our country’s status as a leader in the maritime industry,” said Representative Garamendi. 

Background:  

The SHIPS for America Act would:  

• 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 tasked with making whole-of-government strategic decisions for how to implement a National Maritime Strategy. The bill also establishes a Maritime Security Trust Fund that would 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 by creating the Strategic Commercial Fleet Program, which would facilitate the development of a fleet of commercially operated, U.S.-flagged, American crewed, and domestically built merchant vessels that can operate competitively in international commerce.  

• Enhance the competitiveness of U.S.-flagged vessels in international commerce by establishing a Rulemaking Committee on Commercial Maritime Regulations and Standards to cut through the U.S. Coast Guard’s bureaucracy and red tape that limits the international competitiveness of U.S.-flagged vessels, requiring that government-funded cargo move aboard U.S.-flag vessels, and requiring a portion of commercial goods imported from China to move aboard U.S.-flag vessels starting in 2029.  

• Expand the U.S. shipyard industrial base, for both military and commercial oceangoing vessels, by establishing a 25 percent 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 approaches to domestic ship building and ship repair.  

• Accelerate U.S. leadership in next-generation ship design, manufacturing processes, and ship energy systems by establishing the U.S. Center for Maritime Innovation, which would create regional hubs across the country.   

• Make historic investments in maritime workforce by establishing a Maritime and Shipbuilding Recruiting Campaign, allowing mariners to retain their credentials through a newly established Merchant Marine Career Retention Program, investing in long-overdue infrastructure needs for the U.S. Merchant Marine Academy, and supporting State Maritime Academies and Centers for Excellence for Domestic Maritime Workforce Training and Education. The bill also makes long-overdue changes to streamline and modernize the U.S. Coast Guard’s Merchant Mariner Credentialing system.  

Full text of the legislation can be found here.

The following organizations have endorsed the SHIPS for America Act: Shipbuilders Council of America, American Shipbuilding Suppliers Association, American Association of Port Authorities, National Defense Transportation Association, American Maritime Partnership, USA Maritime, American Maritime Congress, American Waterway Operators, National Association of Waterfront Employers, Marine Machinery Association, American Iron and Steel Institute, American Compass, Maritime Accelerator of Resilience, Maritime Institute for Research and Industrial Development, New American Industrial Alliance, Consortium of State Maritime Academies, Philly Shipyard, General Dynamics NASSCO, Govini, U.S. Marine Management LLC, Pasha Hawaii, Ocean Shipholdings, American President Lines, Tote Inc., Saltchuk Marine, TMA Blue Tech Inc., Blue Water Autonomy, Seafarers International, American Maritime Officers, United Steelworkers, International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, the AFL-CIO Metal Trades Department, the AFL-CIO Maritime Trades Department, International Federation of Professional and Technical Engineers, California State University Maritime Academy, Maine Maritime Academy, Small Shipyard Grant Coalition, Alliance for American Manufacturing, Offshore Marine Services Association, Chamber of Shipping of America, AFL-CIO, International Propeller Club, Ports America, Transportation Institute, Navy League of the United States, Oceantic Network, American Steamship Owners Mutual Protection & Indemnity Association, Inc., USMMA Alumni Association, OPA 90 Forum, Blue Sky Maritime Coalition, Crowley, American Roll-On Roll-Off Carrier, Maersk Line Limited, Farrell Lines, Matson, Overseas Shipholding Group, Inc.,  Waterman Logistics, Fairwater, U.S. Ocean Inc., LS GreenLink USA, Inc., International Organization of Masters, Mates & Pilots, Sailors’ Union of the Pacific, International Association of Machinists and Aerospace Workers, the AFL-CIO Transportation Trades Department, RBC Logistics, Marine Engineers’ Beneficial Association, American Maritime Officers Service, Great Lakes Maritime Academy, Texas A&M Maritime Academy, San Jacinto College, Senesco Marine, Patriot Maritime, Tri-Tec Manufacturing, LLC, Hapag-Lloyd USA, LLC, Liberty Maritime, Northeast Maritime Institute. 

See what maritime leaders and stakeholders are saying about the SHIPS for America Act:   

“The carriers, unions and associations belonging to the USA Maritime Coalition strongly support the SHIPS for America Act. This comprehensive maritime policy initiative will ensure our country has the U.S.-flag shipping capability and the American mariners needed to both support the foreign policy and national security objectives of the Department of Defense and to enhance and protect our nation's economic security by increasing  the carriage of America's foreign trade on U.S.-flag commercial vessels,” said R. Christian Johnsen, Chair, USA Maritime. 

“The Navy League applauds the introduction of the SHIPS for America Act, a landmark legislative achievement that will comprehensively meet the needs of the U.S. merchant marine and bolster our shipbuilding industrial base. In today's global threat environment, arguably the most perilous since the end of the Cold War, the United States must not only maintain the finest Navy, Marine Corps, and Coast Guard on the seas, but also ensure a robust U.S.-flag merchant marine and a resilient shipbuilding industrial base. These elements are crucial for safeguarding our national and economic security in the event of large-scale military conflict. The SHIPS for America Act addresses these vital considerations and reaffirms that America is, and always will be, a maritime nation,” said Mike Stevens, CEO, Navy League. 

“The Shipbuilders Council of America commends Senators Kelly and Young and Representative Garamendi, and Representative Kelly for their leadership in advancing the SHIPS for America Act. This legislation represents a significant step forward in strengthening the nation’s shipyard industrial base and establishing a comprehensive national maritime strategy. We are encouraged by its focus on bolstering American shipbuilding and ensuring a robust maritime sector capable of supporting our nation’s economic and national security. SCA is committed to continuing its engagement with these Congressional members and staff to refine and enhance the legislation, especially to better support our domestic ship repair industry, and we look forward to collaborating with policymakers to ensure the success of initiatives that secure the future of America’s shipyard industrial base and maritime workforce,” said Matthew Paxton, President, Shipbuilders Council of America.  

“It is time to reclaim our maritime heritage and pursue an ambitious campaign to secure and strengthen our maritime supply chains. I commend the bipartisan and bicameral efforts culminating in the SHIPS Act. I strongly support passage of the Act, and as an FMC Commissioner, I will do all that I can to support a winning maritime strategy exercising maritime state craft.  The world is trade dependent, and trade is dependent on the movement of ocean cargo. Let us get to work to keep it moving,” said Max Vekich, FMC Commissioner. 

“On behalf of the National Association of Waterfront Employers (NAWE), I write to express my Association’s support for your proposed legislation, the SHIPS for America Act. NAWE is a non-profit trade association whose member companies are privately-owned marine terminal operators (MTOs), stevedores, and other U.S. waterfront employers and terminal service industries. In particular, we would like to thank and commend Senators Kelly and Young and Congressmen Garamendi and Kelly for including Section 505 of the SHIPS Act, which will help terminal operators to finance the terminal equipment necessary to help sustain the nation's supply chain. We recognize that the SHIPS for America Act is a comprehensive set of legislative recommendations aimed to strengthen the nation's entire maritime industrial base and look forward to engaging with the next Congress to support passage of this vital legislation,” said Carl Bentzel, President, National Association of Waterfront Employers (NAWE).  

“The American Maritime Partnership (AMP) applauds the sponsors of the SHIPS for America Act for their focus on the maritime needs of our nation, as AMP believes it is very important for there to be a robust national maritime strategy that promotes the economic, national and homeland security of the nation. We appreciate that the legislation builds on the strong foundation of the Jones Act to further strengthen and revitalize the U.S.-flag maritime industry. We are and will always be a maritime nation and we must never forget the importance of American maritime for our security and prosperity,” said Jennifer Carpenter, President, American Maritime Partnership.