S. 1541 — SHIPS for America Act of 2025

This section establishes a Strategic Commercial Fleet (SCF) of up to 250 active, commercially viable, militarily useful, privately owned vessels to meet national defense and other security requirements and maintain a U.S. presence in international commercial shipping, administered by the Maritime Administrator in consultation with the Secretary of Defense. The Administrator must conduct annual competitive selections of eligible vessels per targets recommended by the Maritime Security Board, including (1) at least 10 vessels in the 12-month period beginning two years after enactment; (2) an annual increase such that at least 20 vessels are selected annually by five years after enactment; and (3) a total Fleet size not exceeding 250 vessels. Not later than one year after enactment, the Administrator must solicit applications from covered entities (i.e., vessel owners or operators eligible for the SCF, or bid teams including such entities, a qualified U.S. shipyard, and a non-foreign entity of concern) via Federal Register notice with at least 30 days to apply, using separate processes including for newly constructed vessels; eligible vessels include U.S.-built vessels and qualified foreign-built vessels (i.e., not more than 14 years old, U.S.-documented prior to SCF entry, and excluding those owned/operated by or constructed in/register in foreign countries or entities of concern).

This section directs the Commander of U.S. Transportation Command, in coordination with the Secretary of the Navy and the Maritime Administrator, to devise within 180 days of enactment a tabletop exercise to test effective control of the Maritime Security Fleet under 46 U.S.C. ch. 531 and the Tanker Security Fleet under ch. 534 in a crisis or war. (As background, these programs subsidize U.S.-flag vessels to ensure availability for national defense sealift needs.) After completing the exercise, the Commander must brief the appropriate congressional committees on the results and, beginning one year thereafter, conduct and brief on such tabletop drills annually.

This section directs the Secretary of Defense, in coordination with the Maritime Administrator, the Federal Communications Commission, and other relevant federal agencies, to submit to the appropriate congressional committees, not later than 180 days after the date of enactment, an assessment of the ability and preparedness of the USNS Zeus and the Cable Security Fleet (i.e., U.S.-flagged vessels maintained under 46 U.S.C. chapter 532 for submarine cable repair and security) to repair transoceanic submarine fiber optic cables damaged or cut by adversaries. The assessment must include (1) a description of preparedness to address simultaneous damage or severing of partner countries' cables in the Pacific and Atlantic Oceans; (2) a determination of repair timelines for the Cable Security Fleet in coordination with partner countries; and (3) options for providing connectivity during an emergency or crisis resulting from such damage.

This section modifies duties under 19 U.S.C. 1466 on equipment purchased for, repair parts or materials used on, or repairs made in a foreign country upon U.S.-documented vessels engaged in foreign or coasting trade by (1) increasing the ad valorem duty rate to 70% of costs (from 50%) generally and to 200% of costs for repairs in a foreign country of concern (as defined in section 4 of the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025); and (2) providing a duty exemption, from enactment through December 31, 2035, for such costs on vessels participating in the Maritime Security Fleet (46 U.S.C. ch. 531), Cable Security Fleet (ch. 532), Tanker Security Fleet (ch. 534), or Strategic Commercial Fleet (ch. 536), or those with specified emergency preparedness or contingency agreements, if the owner or master certifies a good faith effort to use U.S. shipyards (with the exemption inapplicable to foreign countries of concern). (As background, these duties protect the U.S. ship repair industry by discouraging foreign repairs on U.S.-flag vessels.) The section further requires the Maritime Administrator to submit biennial reports to congressional committees through December 31, 2035—beginning not later than two years after enactment—on duties paid and repair locations, U.S. shipyard capacity and usage, the duties' effectiveness in promoting U.S. repairs, and recommendations to support the U.S. vessel repair base. The amendments apply to parts, materials, and equipment purchased, and repairs initiated, after enactment.

This section expresses the sense of Congress that only the Maritime Administrator, acting as Director of the National Shipping Authority, may determine the non-availability of qualified U.S.-flag vessel capacity at fair and reasonable rates under the cargo preference laws (46 U.S.C. §§ 55305, 55314), with waivers authorized only temporarily by the President, Secretary of Defense, or Secretary of Transportation during a declared emergency following such a determination, and that the Food for Peace Act does not independently authorize waivers without presidential delegation, an emergency declaration, and the required determination. The section further (1) amends the Cargo Preference Act (46 U.S.C. § 55305(a)) to require 100% (from at least 50%) of certain government-impelled ocean cargo—including for military, foreign assistance, and humanitarian programs—to be transported on U.S.-flag vessels, effective 180 days after enactment; (2) revises waiver authority under 46 U.S.C. § 55305(d)(1) to permit waivers solely by the President, Secretary of Defense, or Secretary of Transportation during a declared emergency, following a non-availability determination by the Maritime Administrator (in consultation with the Maritime Security Board) and on terms prescribed by the Administrator, with no other waivers authorized; (3) requires the Maritime Security Advisor to facilitate interagency agreements within 180 days of enactment between the Maritime Administrator and affected agency heads (e.g., for Food for Peace programs) specifying processes, standards, and deadlines for non-availability requests and determinations, with congressional notification of finalization and updates; and (4) amends 46 U.S.C. § 55305(d)(3)(B) to require notifications to the Maritime Security Board and the relevant agency head. (Thus, these changes strengthen enforcement of U.S.-flag shipping mandates to support the domestic maritime industry while narrowing and standardizing emergency waiver procedures.)

This section directs the Maritime Administrator, within 180 days of enactment and notwithstanding other law, to (1) promulgate regulations fully implementing cargo preference laws requiring U.S.-flag vessels to carry at least 50% of certain U.S. government-impelled ocean cargoes (46 U.S.C. §§55305, 55314, 55315, 55316); (2) issue interagency guidance to federal departments and agencies administering affected programs (e.g., foreign food aid); and (3) publish the guidance in the Federal Register and on the Maritime Administration website. It authorizes consultation with the Food Aid Consultative Group and repeals a prior regulatory deadline under section 3502(a) of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (P.L. 117-263).

This section amends the cargo preference oversight provision (46 USC 55301) by (1) expanding the list of applicable statutes in annual reports from section 55305 (general 50% U.S.-flag requirement for government cargoes) to sections 55305, 55314, 55315, and 55316; and (2) requiring the Maritime Administrator to notify specified congressional committees within 14 days of receiving credible information of noncompliance by federal agencies with those sections or 10 USC 2631 (requiring DOD supplies transported by sea to use U.S.-flag vessels).

This section establishes a new section 55316 of title 46, United States Code, requiring the Secretary of Transportation to finance reasonable increased ocean freight costs—as assessed by the Maritime Administrator—incurred by covered agencies (i.e., agencies such as the Department of Agriculture or Commodity Credit Corporation administering specified agricultural export activities under section 55314(b), including under the Food for Peace Act (7 U.S.C. 1691 et seq.), section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431), and the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1)) due to cargo preference requirements of section 55305 (i.e., 75% of certain government-impelled ocean cargo on U.S.-flag vessels). It further requires the Secretary to reimburse each covered agency in a fiscal year for the amount by which its total ocean freight and freight differential costs under section 55305 exceed 20% of the total value of transported cargo (with Commodity Credit Corporation inventory agricultural products valued per section 412(d) of the Food for Peace Act (7 U.S.C. 1736f(d))); enter interagency reimbursement agreements within 180 days of enactment of the SHIPS for America Act of 2025 (with processes, standard methodology, agency submission deadlines, and Secretary approval within 90 days of request); notify congressional committees upon finalization or updates to such agreements; and authorize annual appropriations from the Maritime Security Trust Fund sufficient for all costs, including administrative expenses. Finally, it requires the Department of Transportation Inspector General to audit reimbursements each fiscal year—with agency and contractor document provision—and submit findings to congressional committees and publicly within 90 days after fiscal year-end. It also makes a conforming change to the table of sections for subchapter II of chapter 553.

This section establishes a requirement that a covered percentage of covered goods (i.e., goods manufactured in the People's Republic of China) imported into the United States from a foreign port be transported on a U.S.-built vessel crewed by U.S. mariners, as follows: (1) 1% in the year five years after enactment; (2) 2% six years after enactment; (3) 3% seven years after enactment; (4) 4% eight years after enactment; (5) 5% nine years after enactment; (6) 6% ten years after enactment; (7) 7% eleven years after enactment; (8) 8% twelve years after enactment; (9) 9% thirteen years after enactment; and (10) 10% fourteen years after enactment. The requirement applies to any shipper (as defined in 46 U.S.C. §40102). This section further directs the Maritime Administrator to impose annual fines on noncompliant entities in an amount exceeding the cost difference between using such a U.S. vessel and a foreign open-registry (i.e., flag-of-convenience) vessel built outside the United States, depositing fine proceeds into the Maritime Security Trust Fund; and requires the Maritime Administrator, in coordination with the Secretary of Homeland Security and the Chairman of the Federal Maritime Commission, to promulgate a final implementing rule by four years after enactment that identifies applicable persons and goods, sets compliance requirements, establishes enforcement mechanisms, and determines fine amounts. This section also makes a clerical amendment to the table of sections for 46 U.S.C. Ch. 605.

This section establishes priority for U.S. vessels at any U.S. port ahead of waiting vessels of a country of concern or owned by a foreign entity of concern (as defined in sec. 4 of the SHIPS for America Act of 2025). The Secretary of Transportation may eliminate this priority if in the national interest and must report to the appropriate congressional committees within 30 days.

This section directs the Maritime Security Advisor, in consultation with the Secretary of Transportation, Secretary of Commerce, Chairman of the Federal Maritime Commission, and United States Trade Representative, to conduct an assessment not later than 180 days after the date of enactment that (1) identifies current federal authorities to incentivize commercial cargo movement on vessels of the United States (as defined in 46 U.S.C. 116) in international commerce, (2) reviews methods for assured access to vessels of U.S. international allies and partners in crisis or conflict, and (3) recommends presidential use of such authorities. The assessment must evaluate tax benefits, modifications to import/export duties, service privileges for U.S. vessels, and other incentives; and the Advisor must submit to the appropriate congressional committees the recommendations to the President and additional congressional actions to further incentivize such cargo movement.

This section establishes applicability of cargo preference requirements under 46 U.S.C. 55305 (i.e., 50% U.S.-flag vessel carriage for certain government-sponsored ocean shipments of agricultural products) to specified Federal Government export activities (previously limited to those of the Secretary of Agriculture or Commodity Credit Corporation). (As background, cargo preference laws promote the U.S. maritime industry by reserving portions of government cargo shipments for U.S.-flag vessels.) It expands the list of covered programs in subsection (b) by adding the Food for Progress Act of 1985 (7 U.S.C. 1736o) as new paragraph (4) and the McGovern-Dole International Food for Education and Child Nutrition Program (7 U.S.C. 1736o–1) as new paragraph (5); specifies that Food for Peace Act activities in paragraph (1) include titles I, II, or III; replaces "agricultural commodities or their products" with "agricultural products" throughout paragraphs (4)–(7) (redesignated as (6)–(9)); and adds subsection (c) defining "agricultural product" to include any exported food product, agricultural commodity (as defined in 7 U.S.C. 1732), specialty crop (as defined in 7 U.S.C. 1621 note), or processed food product. (Thus, the requirements now apply to a broader range of federal food aid and export programs using U.S.-grown products.)

This section clarifies that three U.S. foreign food assistance authorities are subject to cargo preference requirements for U.S.-flag vessels (46 U.S.C. §§ 55305, 55314). (1) amends §202(a) of the Food for Peace Act (7 U.S.C. 1722(a)), which authorizes emergency food aid, by inserting the cargo preference language before "notwithstanding any other provision of law"; (2) makes a parallel amendment to §407(b)(2)(A) of the Food for Peace Act (7 U.S.C. 1736a(b)(2)(A)), which concerns administrative provisions for such aid; and (3) amends §491(c)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2292(c)(1)), which authorizes the International Disaster Assistance–Emergency Food Security Program to provide emergency food assistance (including via local or regional procurement), by inserting the cargo preference requirements after the reference to §492 limitations.

This section amends Section 3 of the Natural Gas Act to condition Federal Energy Regulatory Commission (FERC) approval of natural gas export applications on the exporter transporting specified percentages of natural gas exported by vessel on qualifying U.S.-documented vessels, escalating from not less than 2% in each of the first seven calendar years after enactment to not less than 15% from the 22nd year onward. Qualifying vessels, during the first five years, must either be U.S.-documented with U.S. shipyard retrofits using specified U.S.-manufactured components (e.g., propulsion equipment, valves, pumps) or be fully U.S.-built with U.S.-manufactured major hull components and listed parts; from year six onward, only fully U.S.-built vessels qualify (with waivers available for components causing 25%+ cost increases, delays, or unavailability). The section further requires export orders to provide training opportunities for credentialed U.S. merchant mariners; subjects expedited approvals for exports to free trade agreement nations to these conditions; and exempts such exports if the U.S. Trade Representative certifies a violation of U.S. trade obligations. (Thus, the requirements promote U.S. shipbuilding and maritime workforce development for liquefied natural gas exports, which FERC previously authorized based primarily on public interest reviews.)

This section revises the conditions exempting goods imported on U.S. vessels from discriminating duties (i.e., additional customs duties imposed on goods imported on foreign vessels). (1) It replaces the prior condition in 46 U.S.C. 60502(a)(1)(A) with a requirement that the cost of importing goods aboard the U.S. vessel is comparable to or greater than the cost aboard foreign vessels, strikes introductory language referencing "the vessel," and reformats subparagraph (B) to specify vessel requirements (e.g., ownership); and (2) it excepts duties imposed under section 60502 from any suspension of discriminating duties under section 60503(a).

This section establishes the Ship America Office within the Maritime Administration, to be headed by a Ship America Associate Administrator appointed by the Maritime Administrator. The office must (1) assist private sector entities, federal financial assistance recipients, federal agencies, federal contractors, and owners/operators of U.S. oceangoing vessels in moving commercial and government cargo on U.S. vessels in international commerce; (2) maximize federal agency compliance with cargo preference laws (i.e., 46 U.S.C. ch. 553, 10 U.S.C. § 2631, and related statutes requiring U.S.-flag vessels for certain government-impelled shipments); (3) train federal employees on those laws; (4) develop a Ship America verification program for industry self-certification that products were transported to the United States on U.S. vessels; (5) support development of a U.S. vessel fleet and maritime industrial base for federal sealift needs; (6) publicize contact information for U.S. oceangoing vessels; (7) publish information on commercial benefits of using U.S. vessels for cargo; and (8) prepare required reports. Not later than one year after enactment, and biennially thereafter, the Maritime Administrator must report to specified congressional committees and the Maritime Security Board on opportunities and challenges for commercial cargo on U.S. vessels and related recommendations.

This section establishes alternate standards, to be developed by the Secretary of the department in which the Coast Guard is operating in consultation with the Maritime Administrator not later than one year after enactment, for issuing certificates of inspection under chapter 33 of title 46, U.S. Code, to self-propelled oceangoing vessels not documented under chapter 121 (i.e., foreign-flagged vessels) that intend to become U.S.-documented. (As background, certificates of inspection verify compliance with U.S. vessel safety standards; chapter 121 governs U.S. vessel registry.) Under these standards, such a vessel qualifies if the Secretary determines that (1) its owner commits to documenting it under chapter 121 upon certificate issuance and it is then eligible for such documentation; (2) it is classed by and designed to the rules of a Secretary-accepted classification society; (3) it complies with applicable international agreements and guidelines as determined by its immediately prior flag state (notwithstanding other U.S. laws); (4) it has been assessed for cybersecurity and surveillance risks; and (5) its prior flag state has not been identified by the Secretary as inadequately enforcing international vessel regulations for that vessel. The Secretary may rely on certification from the American Bureau of Shipping or another accepted classification society (with reciprocal U.S. access requirements for foreign societies maintaining U.S. offices and records) to verify compliance with requirements (2), (3), and (5) above and continued eligibility, which ends upon noncompliance with international standards. The provision preserves requirements for merchant seamen credentials and vessel manning and authorizes rulemaking to implement the standards.

This section establishes a rulemaking committee on commercial maritime regulations and standards (i.e., Coast Guard regulations on vessel design and engineering standards, merchant mariner training and credentialing, and vessel operating and environmental standards that apply to vessels in foreign commerce, excluding those exclusively for domestic commerce) in the department in which the Coast Guard is operating. The committee, whose members are appointed by the Secretary of that department and include specified federal officers or designees (Maritime Security Advisor, Maritime Administrator, Coast Guard Commandant, Secretary of Commerce, EPA Administrator, Federal Maritime Commission Chair, and U.S. delegate to the International Maritime Organization), representatives from classification societies (including the American Bureau of Shipping), vessel owners and operators, shipbuilders, credentialed merchant mariners, maritime labor organizations, maritime safety and regulatory experts, and other stakeholders, must (1) review covered regulations and develop findings and recommendations and (2) report to the Secretary on opportunities to update relevant regulations to revitalize the U.S. merchant marine, align with International Maritime Organization standards and those of allies while limiting redundancies, and protect U.S. maritime competitiveness. The committee shall consider specified factors, including comparisons of covered regulations to international standards on safety, cost, enforceability, and competitiveness; compliance challenges; the regulations' role in merchant marine strength; and recommended changes to promote mariner opportunities and U.S.-flagged vessels, enhance international leadership and streamline processes, maintain safety and security, and update mariner training requirements (e.g., expanding instructors, streamlining facility designs, and standardizing course approvals). The Secretary must convene the initial meeting not later than 180 days after enactment of this section.

This section amends the Shipowners' Limitation of Liability Act of 1851 (46 USC 30523) to (1) retain the liability limit for owners of U.S. vessels at the value of the vessel and pending freight while establishing a new limit for owners of foreign vessels at five times that value and (2) expand claims exempt from limitation to include, for owners of foreign vessels, personal injury or wrongful death claims involving persons who were not crewmembers or passengers at the time of injury. It also makes a conforming change to 46 USC 30529(c). The amendments apply to liabilities arising on or after the date of enactment.

This section establishes a shipbuilding financial incentives program under new chapter 538 of title 46, United States Code, administered by the Maritime Administrator to provide federal financial assistance to covered entities—U.S. citizen vessel purchasers or qualified U.S. shipyards—for (1) constructing U.S.-documented vessels or (2) qualified shipyard investments (i.e., constructing, modernizing, or expanding U.S. shipyards for civilian/military vessels or U.S.-based manufacturing facilities supplying ≥50% of products to U.S. shipyards/vessels or doubling such capacity). To qualify, covered entities must agree to 10-year U.S. vessel documentation (for vessel construction), competitive U.S. shipyard bidding, investments in shipbuilding/repair facilities or ≥50% maritime-use suppliers, and worker/community commitments (e.g., employment for economically disadvantaged individuals and training programs). The Administrator may approve vessel construction assistance only after determining it promotes foreign commerce, suits national defense, confirms applicant/shipyard qualifications, ensures cadet/workforce training space on vessels, and notifies congressional committees 15 days prior; shipyard investment approvals require confirming receipt of a governmental incentive (text cuts off).

This section amends the Small Shipyard Grant Program by (1) requiring the Maritime Administrator, when providing assistance, to consider projects fostering long-term industrial base growth that supports the national security and economic security needs of the U.S. merchant marine; and (2) authorizing $100 million for each of FY2026 through FY2035 from the Maritime Security Trust Fund to the Maritime Administrator (previously, $20 million for FY2021).

This section amends the Federal Ship Financing Program (Title XI, 46 U.S.C. ch. 537), which provides 100% loan guarantees and direct loans (for fisheries, at 2% plus Treasury borrowing costs) for constructing, reconstructing, reconditioning, or purchasing U.S. commercial vessels, fishery facilities, and related assets. Specifically, it (1) requires the Secretary to establish a revolving loan fund within 30 days of enactment of the SHIPS for America Act of 2025, administered by the National Surface Transportation and Innovation Finance Bureau (49 U.S.C. §116), to receive appropriated funds and program proceeds (including fees under 46 U.S.C. §§53713, 53714), with guarantees and direct loans made from the fund; (2) authorizes $100 million for FY2026 from the Maritime Security Trust Fund (46 U.S.C. §50301(b)) to the revolving fund, available until expended; (3) requires that not less than 50% of guaranteed obligations be for projects receiving no other payments or federal financial assistance from programs in this part; (4) requires the risk categorization system to consider whether a project involves constructing, reconstructing, or reconditioning a Vessel of National Interest; (5) expands eligible state obligations to include those required for U.S.-flag vessels with coastwise endorsements (ch. 121), military conversions, federal contracts, or participation in the Maritime Security Program (ch. 531), Cable Security Fleet (ch. 532), Tanker Security Fleet (ch. 534), Strategic Commercial Fleet (ch. 536), Shipbuilding Financial Incentive (ch. 538), or National Defense Reserve Fleet (§57100); and (6) applies Buy America requirements (46 U.S.C. §54101(d)(2)) to Administrator-obligated funds.

This section revises the Construction Reserve Fund program (i.e., allows eligible U.S. citizens to defer capital gains taxes on vessel sales by depositing proceeds into a fund for constructing, reconstructing, reconditioning, repowering, or acquiring eligible vessels) as follows: (1) in the definition of eligible vessel (46 USC 53301(a)), replaces references to "new vessel" with "eligible vessel," removes the post-December 31, 1939, construction requirement, requires operation in U.S. foreign or domestic commerce or fisheries, and defines foreign commerce to include trade between the United States and foreign countries or between foreign countries; (2) requires eligible vessels to be documented under U.S. laws and operated in foreign or domestic U.S. commerce or fisheries (previously, vessels in such commerce or fisheries without documentation requirement); (3) adds a new eligibility category for U.S. citizens committing, in their agreement with the Secretary of Transportation, to construct, reconstruct, recondition, repower, or acquire and operate an eligible vessel within 5 years of establishing the fund; (4) authorizes funds for repowering eligible vessels (in addition to construction, reconstruction, reconditioning, or acquisition); (5) requires, for certain eligible vessels, construction to commence with reasonable dispatch after contract date (as certified by the Secretary of Transportation); and (6) authorizes the Secretary of Transportation to extend deposit obligation or expenditure periods for up to 15 years total (replacing prior subsections without specified limit).

This section revises the Capital Construction Fund program by (1) adding definitions for cargo handling equipment (i.e., U.S.-made or sufficiently unavailable domestically vehicles/land-based equipment and associated marine terminal/port infrastructure used to lift/move cargo), foreign commerce (i.e., U.S. trade with foreign countries or trade between foreign countries), and marine terminal (i.e., wharves, piers, docks, and adjacent areas/structures for cargo movement to/from vessels); (2) authorizing agreements with the Secretary for U.S. citizens who own/lease eligible vessels, commit to build/operate one within five years, or operate U.S. marine terminals, with allowable purposes expanded to include U.S.-built replacement/additional/reconstructed vessels for foreign commerce/domestic trade/fisheries or cargo handling equipment at U.S. marine terminals; (3) applying deposit ceilings and revenue calculations (e.g., from vessel/terminal operations, depreciation, dispositions, investments) to marine terminals and equipment; (4) removing restrictions on fund investments and Secretary approval limits for asset percentages; and (5) expanding qualified withdrawals to include acquisition, construction, repowering, or reconstruction of qualified vessels/barges/containers or cargo handling equipment. (As background, the Capital Construction Fund allows eligible parties to defer federal income taxes on specified vessel-related income by depositing amounts into the fund for qualified capital expenditures.)

This section establishes an annual survey by the Maritime Administrator, beginning not later than 180 days after enactment, of owners, agents, or operators of U.S.-documented commercial vessels (not less than 6,000 deadweight tons, operated in domestic trade or foreign commerce, including bulk carriers, tankers, roll-on/roll-off vessels, LNG tankers, container vessels, multi-purpose vessels, cable vessels, heavy-lift vessels, or others deemed appropriate) to identify plans for vessel construction, major repairs, overhauls, and related industrial base needs over the subsequent 10-year period and to inform U.S. shipyards and maritime stakeholders of future demand. The survey collects information on (1) number of vessels planned for construction and their capabilities; (2) estimated service timelines; (3) number of major repairs and overhauls; (4) major components needed from suppliers; (5) planned capital expenditures; and (6) other relevant data; participation is voluntary except for recipients of financial assistance under part C of subtitle V of title 46, U.S. Code. The Administrator must release findings annually in coordination with naval vessel construction plans under 10 U.S.C. §231(a)(1) and other federal shipbuilding surveys and, notwithstanding 5 U.S.C. §552 (FOIA), withhold proprietary information at a participant's request. This section also makes a clerical amendment to the table of sections for 46 U.S.C. ch. 501.

This section expands the definition of covered project under the Federal Permitting Improvement Steering Council process (i.e., FAST-41) to expressly include construction of infrastructure for the maritime industry—defined as shipyards and ship repair facilities, port terminals and other port facilities, manufacturing facilities for equipment and technology instrumental to maritime trade and commerce (as defined by the Council), and other industrial base facilities supporting the Navy or U.S. merchant marine—by (1) inserting "the maritime industry" into the list of specified infrastructure sectors and (2) adding as a new category any project covered by a programmatic environmental review or plan developed for a maritime industry project. (Thus, qualifying maritime projects over $200 million that are subject to NEPA may receive coordinated agency permitting timelines and a single environmental review.)

This section expands eligibility for loan guarantees under section 1703 of the Energy Policy Act of 2005 by adding as a new category (14) marine transportation systems, including commercial vessels of the United States, shipyards, marine terminals, and port facilities. (The program provides federal loan guarantees for high-technology projects that reduce or sequester greenhouse gas emissions or air pollutants using technologies superior to those commercially available in the United States.)

This section requires three reports to the appropriate congressional committees and the Maritime Security Board. (1) Not later than 180 days after enactment and every two years thereafter, the Maritime Administrator—in consultation with the Commander of U.S. Transportation Command, the Secretary of the Navy, the Secretary of Commerce, and the Secretary of Energy—must submit a report outlining a plan to use the shipbuilding financial incentives program under 46 U.S.C. §53801 (as added by section 501 of this Act) and financial incentives under subpart C of subtitle V of title 46, U.S. Code, to supplement the size and readiness of the National Defense Reserve Fleet (NDRF)—a reserve of government-owned ships for national defense and emergencies—and to improve national shipbuilding and shipping infrastructure. The report must also describe expanded uses of vessels under Voluntary Intermodal Sealift Agreements (VISAs), Voluntary Tanker Agreements (VTAs), and the new shipbuilding incentives to ensure government access to critical national security vessels (e.g., 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) Not later than 180 days after enactment and every two years thereafter, the Secretary of Defense and Secretary of Homeland Security—in coordination with the Secretaries of the Treasury and State, the Maritime Administrator, the U.S. Trade Representative, and the Director of the Office of Management and Budget—must submit a report outlining a comprehensive strategy for de-risking the U.S. maritime domain from the People's Republic of China (PRC) and other asymmetric or emerging maritime threats. (3) Not later than 180 days after enactment, the Secretaries of Transportation, Defense, Commerce, State, and the Treasury must submit a report on ways to restrict U.S. capital flows to Chinese Communist Party (CCP) maritime industries—including recommendations to promote capital flows within and between the U.S. and its treaty allies—and a survey of banks, pension funds, and large financial institutions with recommendations to incentivize domestic maritime investments.

This section directs the Secretary of State and Secretary of Commerce, not later than one year after the date of enactment, to jointly submit to Congress a report assessing methods to reduce export controls and restrictions under the Arms Export Control Act (22 U.S.C. 2751 et seq.), International Traffic in Arms Regulations, Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.), and Export Administration Regulations—or successor regulations—that limit foreign-owned marine industrial base companies' participation in the U.S. shipbuilding industry, including federal government shipbuilding, while ensuring safeguards for U.S.-based firms and workers.

This section directs the Secretary of the Navy, in coordination with the Secretaries of Transportation and Homeland Security, to conduct an assessment of best practices used in the construction and repair of commercial oceangoing maritime vessels—including those from foreign allied countries, commercial design standards, and the vessel construction manager model used for the National Security Multi-Mission Vessel Program—to identify opportunities to improve efficiency in Navy and Coast Guard shipbuilding and repair programs for combatant and non-combatant vessels and cutters. The assessment must evaluate (1) use of commercial off-the-shelf components to reduce costs and enhance capabilities; (2) adoption of modern commercial contracting, design, construction, overhaul, and maintenance practices; (3) technologies and procedures to improve design, construction, and repair efficiency; (4) opportunities for design and component commonality to build resilience in the shipbuilding industrial base; (5) advanced nuclear technologies, including those under development for commercial use and barriers to small modular reactors such as regulatory ambiguities in export controls; (6) foreign education and technology development best practices; and (7) whether adoption would support the U.S. commercial maritime shipbuilding industry, industrial base, and merchant marine. Not later than 180 days after enactment, the Secretary of the Navy must brief the congressional defense committees on the assessment results and an execution plan. Not later than one year after enactment, and biennially thereafter, the Secretaries of the Navy and Homeland Security must provide the appropriate congressional committees with strategies for incorporating assessment measures into shipbuilding programs and publish public versions of those strategies.

This section directs the President to submit to the appropriate congressional committees, not later than 180 days after enactment, a report on a plan of action (i.e., documented methods to implement voluntary agreements, per 50 U.S.C. 4558) for any use of authorities under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.)—which supports domestic industrial production capabilities for national defense through loans, purchases, and other incentives—to (1) establish or enhance production of militarily useful commercial maritime vessels operable in U.S. foreign or domestic commerce, (2) establish, improve, or enhance the defense shipyard industrial base, or (3) establish, improve, or enhance U.S. maritime port infrastructure, including U.S.-built containers and ship-to-shore cranes owned by U.S. citizens. The section requires the President to develop the plan in consultation with the maritime security advisor and Maritime Security Board (as established by this Act), an advisory committee under DPA section 708(d) (50 U.S.C. 4558(d)), and appropriate private-sector stakeholders. It defines appropriate committees as the Senate and House Armed Services, Commerce, Science, and Transportation or Transportation and Infrastructure, and Appropriations Committees.

This section (1) authorizes the Secretary of the Navy to offer Military Sealift Command (MSC) merchant mariners—civilian personnel who operate Navy support vessels—paid leave accrual at a faster rate than under the standard General Schedule (GS) system to improve competitiveness with commercial sector jobs; (2) directs the Secretary, in coordination with the MSC Commander and Maritime Security Board and in consultation with specified military commanders and the Assistant Secretary of the Navy for Research, Development and Acquisition, to submit to the appropriate congressional committees a report on MSC mariner recruitment and retention efforts not later than 180 days after enactment of this Act and annually thereafter, addressing integration into the military command structure, training for relevant commands, and required authorities; and (3) requires the Secretary to submit to the appropriate congressional committees, not later than 90 days after enactment, a report assessing the merits of extending maximum charter durations for commercial and specialty vessels used by MSC.

This section revises section 50307(e) of title 46, United States Code, governing the United States Center for Maritime Innovation by (1) amending paragraph (1) to require the Center to support the maritime transportation system through the establishment, management, and coordination of geographically and topically diverse maritime incubators; and (2) striking paragraphs (2) through (4) and inserting new paragraphs specifying (A) a cooperative agreement with an organization or persons experienced in the maritime industry, as determined by the Secretary of Transportation in consultation with the Maritime Security Board; (B) competitive selection of a U.S.-based entity with expertise in emerging marine technologies located near relevant experts; (C) coordination by the Secretary with the Maritime Security Board and agencies including the Departments of Defense and Energy, the Environmental Protection Agency, National Science Foundation, Coast Guard, National Oceanic and Atmospheric Administration, and Marine Board of the National Academies; and (D) 13 responsibilities for the Center, including establishing incubators, accelerating commercial technology adoption to enhance the U.S. merchant marine, serving as liaison to incubators, strengthening the maritime industrial base, developing U.S.-manufactured standard vessel designs excluding parts from foreign entities of concern, leading engagement on innovative manufacturing and propulsion technologies, workforce development, and sharing shipbuilding and port technology best practices.

This section establishes the National Shipbuilding Research Program, to be carried out by the Maritime Administrator in coordination with the Secretary of the Navy, for the purpose of developing plans for the economical construction of vessels and propelling machinery using modern types, all recognized propulsion means, and standardized production where practicable. The program must (1) support technology transfers and industry networking; (2) select and execute research and development projects, including advancing shipbuilding and repair best practices (such as alternative project management and public-private financing), improving efficiency across the U.S. shipyard industrial base, and developing, maturing, and implementing relevant shipbuilding and sustainment technologies; (3) carry out ad hoc initiatives focused on specific shipbuilding and repair target areas; and (4) conduct additional activities as determined by the Maritime Administrator or Secretary of Defense.

This section requires the Maritime Administrator to submit to Congress, not later than 180 days after enactment, a report assessing the status, resources, and authorities needed for improvements to vessels, harborcraft, ports, shipyards, and other maritime infrastructure to ensure U.S. national security interests and support domestic and foreign commerce. The report must (1) consider existing literature from federal and non-federal sources; (2) assess the number of commercial shipping vessels by class required to sustain peacetime and wartime national economies; (3) assess opportunities to leverage private-sector funding for U.S. marine infrastructure; (4) evaluate future infrastructure needs to support alternative fuels for vessels and harborcraft; (5) assess the ability to construct and repair seaports and shipyards during national security emergencies, including readiness for temporary facilities, marine salvage, and firefighting operations; and (6) evaluate the effects on commercial operations of U.S. ports and other critical infrastructure (as defined in 50 U.S.C. 4565(a), i.e., CFIUS definition) of prohibiting port or terminal owners or operators from using or sharing data with LOGINK (i.e., China's National Public Information Platform for Transportation and Logistics), Chinese Communist Party- or PRC government-affiliated logistics platforms, or platforms sharing data with those systems.

This section expands eligibility for the Public Service Loan Forgiveness (PSLF) program (i.e., cancellation of the remaining balance on Direct Loans after 120 qualifying monthly payments for full-time employment—at least 30 hours per week—by a qualifying public service employer such as a government entity or tax-exempt nonprofit) by (1) adding the United States Merchant Marine (as defined in new subsection (m)(5)) and a United States shipyard to the list of qualifying employers in subsection (m)(3)(B)(i), and (2) defining a full-time job in the United States Merchant Marine as possession of a Merchant Mariner Credential authorized by the Coast Guard and employment on board a U.S. vessel for at least 150 days in a calendar year.

This section establishes eligibility for certain United States Merchant Mariners (i.e., civilian mariners holding a Coast Guard-issued Merchant Mariner Credential and employed on U.S. vessels for at least 150 days per calendar year) to receive educational assistance under the Post-9/11 GI Bill (chapter 33 of title 38, U.S. Code). A covered individual must (1) have served in such capacity for at least 10 years, (2) have received the Merchant Marine Expeditionary Medal or another award for service in a designated combat zone after enactment of this section, and (3) not be eligible for other VA benefits. Authorizes appropriations to the Department of Veterans Affairs from the Maritime Security Trust Fund (46 U.S.C. §50301(b)) for necessary reimbursements.

This section authorizes the Secretary of the Navy to permit officers and unlicensed mariners of the United States Merchant Marine to receive instruction at the Naval Postgraduate School. It further (1) requires the Secretary of Transportation to bear the costs of such instruction and (2) extends applicable detailing regulations to such personnel. Not later than 180 days after the date of enactment, the Secretary of Transportation, in consultation with the Secretary of Defense, must submit to Congress a report assessing military training matters beneficial for mariners to study at the school.

This section establishes a program under which the Secretary of Transportation reimburses individuals serving in the U.S. merchant marine for qualified relicensing costs and qualified business costs of their spouse upon the individual's relocation to a new jurisdiction due to reassignment as a commissioned reserve officer in the Navy Reserve (including the Strategic Sealift Officer Program), Coast Guard Reserve, or another Armed Services reserve component. Qualified relicensing costs (i.e., exam, continuing education, license, permit, and registration fees) are those incurred by a spouse previously licensed or certified in a profession to obtain or maintain a new license in the relocation jurisdiction; qualified business costs (i.e., equipment moving, removal, purchases, IT expenses, and inspection fees) are those to relocate a spouse-owned business. Reimbursement is limited to $1,000 for relicensing costs and $1,000 for business costs per relocation, with no payments for costs after December 31, 2035. The section authorizes appropriations of $500,000 annually from the Maritime Security Trust Fund for FY2026 through FY2035 and makes a conforming clerical amendment to the table of sections for 46 U.S.C. Chapter 521.

This section establishes noncompetitive appointment authority for the heads of federal agencies to hire (1) graduates of the United States Merchant Marine Academy who have fulfilled their cadet commitment agreement under 46 U.S.C. 51306 (i.e., completing instruction, obtaining an unlimited merchant mariner license, maintaining credentials for six years post-graduation, serving in a reserve component for eight years, and providing at least five years of service to U.S. commerce, national defense, or related fields); or (2) credentialed United States merchant mariners with an officer or rating endorsement and at least seven years of service aboard a U.S. vessel. Eligible agencies include executive agencies, the United States Postal Service, and the Postal Regulatory Commission (excluding the Government Accountability Office).

This section states the sense of Congress that the United States has approximately 12,000 merchant mariners operating oceangoing vessels—compared to China's more than 1,700,000—and requires a retention program with workplace protections to ensure a sufficient workforce for strategic sealift vessels (i.e., U.S.-flagged ships that transport military equipment and supplies during national defense or emergencies). The section establishes the United States Merchant Marine Career Retention Program, to be administered by the Maritime Administrator, to register qualified merchant mariners and employers and maintain a ready workforce for crewing such vessels. For implementation, the Maritime Administrator must (1) appoint a board of directors; (2) convene a working group of stakeholders—including maritime labor organizations, mariners, vessel owners and operators, maritime academies, and the U.S. Military Sealift Command—to recommend policies, procedures, and a prioritization matrix; and (3) submit annual evaluations to Congress. Program membership includes two enrollment paths, one for Coast Guard-credentialed mariners working ashore that provides an 8-3-1 schedule—8 months shoreside employment, 3 months at sea to meet Standards of Training, Certification, and Watchkeeping recency requirements (or shorter frequent assignments), and 1 month paid vacation—and requires shoreside employers to grant unpaid leave for program activities with a guaranteed return to the same or equivalent position. The program further maintains mariner records, operates a job call office to coordinate sea assignments from partners such as maritime academies and vessel operators, and prioritizes dispatching members to maximize strategic sealift readiness.

This section modifies the maritime workforce promotion and recruitment program (Sec. 539A of the FY2025 NDAA) by (1) requiring coordination with the Maritime Security Board in lieu of the heads of other federal agencies as determined appropriate by the Secretary; and (2) authorizing appropriations from the Maritime Security Trust Fund to the Secretary of the Navy of $15 million annually for FY2025 through FY2028 and $25 million annually for FY2029 through FY2034 to carry out the program.

This section (1) expands the definition of covered training entity eligible for designation as a center of excellence for domestic maritime workforce training and education to any entity (from nonprofit entity only) and (2) authorizes appropriations of $25 million for each of FY2026 through FY2035 from the Maritime Security Trust Fund to carry out the program. (The program designates eligible entities to receive grants for developing maritime career training programs suited to U.S. maritime industry workers.)

This section directs the Maritime Administrator to develop a plan within 180 days of enactment to establish the Maritime Career and Technical Education Advisory Committee—notify Congress of the plan—and establish the committee within one year of enactment. The committee is to (1) convene maritime industrial base employers and education providers to identify joint opportunities to train workers for maritime careers, and (2) develop and disseminate best practices and recommendations for shipbuilding education and training programs, naval architecture education programs, and merchant marine training and certification programs. Membership includes the Administrator (or designee) as chair; appointed representatives from maritime education entities (e.g., Centers of Excellence for Domestic Maritime Workforce Training and Education, U.S. Naval Sea Cadet Corps, K-12 maritime programs, oceanographic institutions, and institutions of higher education); the maritime workforce (e.g., skilled workers, instructors, labor organizations); the maritime industry (e.g., shipbuilders, repairers, shipyards, coalitions, shipping stakeholders, vessel owners and operators); technical nonprofits (e.g., think tanks, classification societies, professional societies); specified federal entities (e.g., Departments of Education, Labor, Transportation, and Navy; U.S. Coast Guard; NOAA; Army Corps of Engineers; Federal Maritime Commission); and others as determined appropriate by the Administrator. The committee must meet annually (with a two-thirds quorum), include working groups meeting quarterly, and operate under the Federal Advisory Committee Act; recommend publicly available curricula for key maritime professional skills; and submit annual reports with best practices and policy recommendations to congressional committees, the Maritime Security Board, and the Maritime Administration website. This section clarifies that the committee creates no new regulatory authority and does not supersede existing law on relevant education and training programs.

This section establishes a referral program between Department of Defense (DOD) military recruiters and the Department of Transportation's Maritime Administration (MARAD) for potential recruits who do not qualify for Armed Forces service. The Secretary of Defense must encourage and incentivize recruiters to recommend MARAD careers and establish a mechanism to introduce interested recruits to MARAD representatives; MARAD must establish a referral intake mechanism, provide hand-off services connecting recruits to maritime educational resources (including recognized Maritime Centers of Excellence), employers, and career services, and track referral and enrollment numbers to the extent practicable. Within 90 days after enactment, MARAD and DOD must brief the appropriate congressional committees on an implementation strategy, including timelines and recruiter incentives/training; one year after enactment and annually thereafter, they must report to those committees on program efficacy, including referral and hand-off numbers, assessments, challenges, and recommendations.

This section directs the Maritime Administrator to publish a biennial report on the state of the merchant mariner workforce (i.e., U.S. seafarers credentialed to operate commercial vessels essential for shipping and national defense sealift), including at minimum: (1) counts of active, inactive, and formerly credentialed U.S. merchant mariners, plus an evaluation of identification challenges, partnership opportunities, and an action plan; (2) counts and percentages of U.S. and foreign workers on U.S. coastwise-endorsed vessels and other U.S. vessels; (3) a listing of actively operating U.S. vessels; (4) merchant mariner requirements and gaps for national defense sealift operations; (5) an industry outlook with potential gaps or surpluses; (6) credentialing concerns (e.g., processing issues, training shortages, cost barriers); and (7) recommendations to improve retention, expedite credential renewals, and attract new entrants. The section grants the Administrator access to Coast Guard mariner credentialing data (except confidential medical information) and authorizes appropriations of $1 million annually from the Maritime Security Trust Fund for FY2026 through 2030.

This section directs the Secretary of Defense, in consultation with the Secretaries of the Navy, Air Force, Army, and the department in which the Coast Guard is operating, the Maritime Security Board, and the Secretaries of Veterans Affairs and Labor, to submit to the appropriate congressional committees a report, not later than 180 days after the date of enactment of this Act, containing (1) recommendations 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. In developing the report, the Secretary must (1) identify barriers servicemembers face in transitioning to the U.S. maritime industry (i.e., merchant marines, shipbuilding, ship repair, and shipping); (2) consider opportunities to improve, expedite, and alleviate transition burdens, including informing servicemembers of maritime employment opportunities, assisting in translating military credentials to civilian maritime credentials, increasing accelerated or bridge programs, expanding SkillBridge program (10 U.S.C. §1143(e)) preparatory activities in the maritime industry, incorporating the maritime industry into the Transition Assistance Program (ch. 58 of title 10, U.S. Code), and enhancing activities under the Military to Mariners Act of 2022 (sec. 11514 of div. K of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263)); and (3) specifically consider transitions to shipbuilding and ship repair employment.

This section directs (1) the Secretary of the Navy to include, as a distinct item in the annual budget submission to Congress, the funding request for the United States Naval Sea Cadet Corps (a federally supported youth program providing naval-themed training and activities to participants ages 11-18); and (2) the Maritime Administrator to encourage designated Centers of Excellence for Domestic Maritime Workforce Training and Education to engage with students in kindergarten through grade 12.

This section establishes an international exchange program for mariners, naval architects, and marine engineers between the United States and NATO member countries, U.S. treaty allies, and major non-NATO allies, limiting participation to citizens of those countries and requiring the Maritime Administrator to seek corporate and government partners for participant placements. The section authorizes appropriations of $2 million annually from the Maritime Security Trust Fund for FY2026 through FY2035.

This section establishes a statutory requirement for the Secretary of Transportation to develop and begin implementing, not later than 180 days after enactment, a comprehensive 10-year Campus Modernization Plan for the United States Merchant Marine Academy (USMMA). (As background: USMMA, one of five federal service academies, trains service-obligated licensed merchant mariners who commit to at least eight years in U.S. commerce and defense and comprise over 80% of the Navy's Strategic Sealift Officer Program.) The plan, informed by the "Merchant Marine Academy Full Speed Ahead Plan" summarized in the February 28, 2024, Congressional Record, must prioritize modern education facilities, licensing exam preparation, physical readiness standards, applicant diversity, industry engagement, campus safety, and recommendations from the November 2021 National Academy of Public Administration report on USMMA; and include (1) construction or significant renovation of facilities such as Standards of Training, Certification, and Watchkeeping laboratories, a Safety of Life at Sea training pool, engineering power plant laboratories, athletic facilities for male and female students, enhanced waterfront facilities including a new pier, a visitor welcome center and security office, senior staff and faculty housing, and parking; (2) information technology upgrades to all classrooms and laboratories; and (3) campus-wide upgrades to the electric distribution power grid and sanitary sewer system piping. The section also states congressional findings on USMMA's role in maritime training and the need for facility modernization, along with a Senate sense of the need for rapid implementation using the referenced plan and design-build contracts.

This section states the sense of Congress that the United States Merchant Marine Academy (USMMA)—a federal service academy training officers for the U.S. merchant marine—is vital to national security, requiring modernization of its infrastructure, investment in faculty and students, sufficient funding for maximum enrollment supported by campus capacity, and inclusion in presidential graduation attendance rotations. The section further authorizes appropriations of $125 million annually for USMMA operations for FY2026 through FY2035 from the Maritime Security Trust Fund and directs the Maritime Administrator to submit a report to congressional committees within 180 days of enactment identifying additional resources needed to increase USMMA enrollment.

This section expands creditable service under the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) to include time as a midshipman at the United States Merchant Marine Academy, in addition to the Naval Academy. (Thus, federal retirees may count such service toward annuity computation eligibility and amount for separations and service periods occurring before, on, or after enactment.)

This section directs the Maritime Administrator to submit to Congress, not later than one year after enactment, a report on a study evaluating additional resources needed for State maritime academies (i.e., institutions that provide instruction to prepare individuals for service in the U.S. merchant marine) to increase enrollment and produce more mariners—including consideration of whether additional academies are needed in states without one. It also amends 46 USC 51501 to authorize appropriations of $10 million annually from the Maritime Security Trust Fund for such assistance for FY2026 through FY2035.

This section requires the Maritime Administrator to ensure fulfillment of service obligations by United States Merchant Marine Academy cadets under cadet commitment agreements (46 U.S.C. 51306) and by participants in the student incentive payment program for maritime training (46 U.S.C. 51509). The section further directs the Administrator to (1) establish an electronic system through which service-obligated mariners annually demonstrate compliance or a valid deferment under 46 U.S.C. 51310 or 51510, as applicable; (2) notify non-reporters in writing of penalties, including cost recovery; and (3) submit to congressional committees, not later than 180 days after enactment and annually thereafter, reports on compliance status, numbers of non-compliant or non-reporting individuals, and recovery actions taken under specified statutory provisions.

This section revises fuel cost payments to State maritime academies (SMAs)—which train merchant mariners using federally provided training vessels—by striking the prior annual caps of $300,000 per academy (FY2008 and thereafter) and instead authorizing the Secretary of Transportation to pay such costs in accordance with new §51512, up to $20 million per academy for each of FY2026 through FY2035. New §51512 further (1) prohibits SMAs receiving fuel payments from profiting by charging cadets for sea time using federal fuel or using vessels as non-voluntary student housing outside seasonal training cruises; (2) requires SMAs to offer billets for military service liaison officers aboard provided vessels; (3) requires SMAs to make crew positions available on provided vessels for mariners in the U.S. Merchant Marine Career Retention Program, with the Secretary paying those crew costs subject to appropriations; and (4) authorizes $120 million annually for FY2026 through FY2035 from the Maritime Security Trust Fund to carry out the section.

This section establishes a scholarship program, funded predominantly by private maritime industry entities through cooperative agreements with the Maritime Administrator, to offset expenses for students at State maritime academies (i.e., those with federal support agreements under 46 U.S.C. §51505) completing required summer sea terms to obtain unlimited-tonnage merchant mariner officer licenses from the Coast Guard. Scholarship recipients must complete their academy program, obtain the license within three months of graduation, serve at least one year in specified U.S. merchant marine, government vessel, military, NOAA, or other national security maritime roles, and report compliance. The section authorizes $2.5 million annually from the Maritime Security Trust Fund for FY2026 through FY2035 and encourages integration with existing MARAD student financial assistance programs.

This section directs the Secretary of the Navy, in coordination with the Maritime Administrator, to include, to the extent practicable, at least one training vessel used by a State maritime academy and maintained pursuant to 46 U.S.C. 51504 in national and international maritime warfare exercises to integrate merchant mariners with naval and military operations. The section specifies that participants aboard such vessels may include licensed merchant mariners or students from the U.S. 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) (with priority to students); and requires rotation of training vessels to ensure equal participation opportunities.

This section directs the Secretary of the department in which the Coast Guard is operating to modernize merchant mariner credentialing through four system and process changes: (1) replacing the licensing, certification, and documentation database to enable electronic submission of credential applications (including sea service, qualifications, course data, safety and suitability, and medical records), direct submission of sea service and course data by employers and providers, and electronic processing for credential issuance and course approvals; (2) implementing a data exchange system with government agencies and industry stakeholders to provide anonymized, aggregated data on sea service totals, credentialed mariners by rating and endorsement, demographics (age, gender, ethnicity, location), National Maritime Center processing times, and approved training providers and courses; (3) establishing a public-facing .gov portal (instead of .mil) for applicant submissions compliant with .gov cybersecurity and privacy standards; and (4) upgrading examinations to allow electronic and third-party administration, reassessing test content via job task analyses, and implementing examination data analysis. The section requires annual progress reports to the Senate Committees on Commerce, Science, and Transportation, Appropriations, and Armed Services and the House Committees on Transportation and Infrastructure, Appropriations, and Armed Services, plus a final report one year after full operating capability of all four systems. The section authorizes $20 million for FY2026 from the Maritime Security Trust Fund, to remain available until expended.

This section revises merchant mariner credential requirements for deck department members (i.e., Coast Guard-issued licenses, certificates, or documents authorizing service on vessels), including by (1) adding a definition of "merchant mariner credential" in 46 U.S.C. §2101; (2) replacing §7306 to specify seven classes of deck credentials (Able Seaman-Unlimited, Able Seaman-Limited, Able Seaman-Special, Able Seaman-Offshore Supply Vessels, Able Seaman-Sail, Able Seaman-Fishing Industry, and Ordinary Seaman) that may be classified by vessel tonnage, propulsion, operating waters, or other standards, with issuance based on factors such as age, experience, examinations, and physical condition; (3) in §7313(b), eliminating "coal passer" from engine department classifications; (4) in §7315, allowing nautical school graduation to substitute for all service requirements under §§7307–7311a and 7314, increasing training credit toward service from one-third to one-half, and striking subsection (c); and (5) reducing minimum service periods to qualify for able seaman ratings by striking in §7307 "3 years" and inserting "18 months," in §7308 "18 months" and inserting "12 months," and in §7309 "12 months" and inserting "6 months," while repealing a temporary reduction under the National Defense Authorization Act for Fiscal Year 2024 (§3534(j), P.L. 118-31). This section also strikes subsections in §§7116(c) and 7510(d) and directs implementation without regard to specified administrative procedures and executive orders. (Thus, these changes reduce sea time needed to obtain deck credentials, potentially expanding the pool of qualified merchant mariners.)

This section requires the Secretary of the Department in which the Coast Guard is operating to inspect, at least annually, each covered facility—defined as a vessel, rig, platform, or other vehicle or structure exempt under subsection (c) from the U.S. citizen or permanent resident alien manning requirements of section 30(a)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)(3)) for Outer Continental Shelf activities—to verify the exemption's validity. (As background, those manning requirements generally apply to such facilities used in U.S. offshore oil and gas operations.) During these inspections, the Secretary must confirm that all crew members required to hold a transportation worker identification credential (TWIC) under 46 U.S.C. 70105 possess one.

This section establishes renewal procedures for merchant mariner credentials (i.e., licenses, certificates of registry, and documents issued by the Coast Guard under chapters 71 and 73 to authorize service on U.S. vessels). Specifically, for any renewal of a valid credential that is not an extension under subsections (a) or (b), the validity period begins the day after the current credential expires.

This section amends multiple provisions of U.S. shipping law (46 U.S.C. §§7102, 7304, 8103, 12131(a), and 12135(2)) to expand eligibility for merchant mariner licenses and certificates of registry on documented vessels, citizenship notations on mariners' documents, vessel manning requirements, command of documented vessels, and related certificate invalidations from U.S. citizens to include noncitizen nationals (i.e., individuals described in 8 U.S.C. 1408, such as those born in American Samoa who owe permanent allegiance to the United States). It also revises related section headings and tables of contents (Thus, noncitizen nationals may now serve in these roles previously restricted to citizens.).

This section establishes authority in new section 7512 of chapter 75, title 46, U.S. Code, for the Secretary of the department in which the Coast Guard is operating to renew, for not more than two years, certain expired or expiring U.S. Merchant Mariner credentials (i.e., licenses and certificates of registry under chapter 71; merchant mariner documents under chapter 73) during a national emergency declared by Congress or by the President under the National Emergencies Act (50 U.S.C. 1621), notwithstanding restrictions in sections 7106, 7107, and 7302(g). (Thus, the Coast Guard may reactivate credentials for individual seamen or identified groups, as deemed necessary by the Secretary, to address potential mariner shortages on U.S. vessels.) It also makes a conforming amendment to the table of sections for chapter 75.