Overview

Title

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.

ELI5 AI

H.R. 10493 is a big plan to help make American ships, ports, and shipyards better by spending money and updating rules to make them stronger and more ready for business and defense. But, people are worried about how the money will be watched and used, and if the new rules might be unfair or wasteful.

Summary AI

H.R. 10493, known as the "Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024," is a proposal aimed at strengthening the United States' maritime industry. The bill focuses on supporting shipbuilding, upgrading ports and shipyards, and enhancing the U.S. maritime workforce to improve national defense and economic security. It calls for increased investment, policy improvements, and regulatory reforms to boost the country's fleet capabilities and competitiveness in international trade. Additionally, the act includes measures to foster innovation, workforce development, and greater coordination among federal agencies to support the maritime sector.

Published

2024-12-18
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-12-18
Package ID: BILLS-118hr10493ih

Bill Statistics

Size

Sections:
131
Words:
69,085
Pages:
343
Sentences:
1,419

Language

Nouns: 21,306
Verbs: 4,878
Adjectives: 3,295
Adverbs: 408
Numbers: 2,896
Entities: 4,685

Complexity

Average Token Length:
4.32
Average Sentence Length:
48.69
Token Entropy:
5.74
Readability (ARI):
26.63

AnalysisAI

The proposed legislation, titled the "Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024," aims to bolster the United States maritime industry. It seeks to enhance national security and economic competitiveness by supporting shipbuilding, providing financial incentives, and streamlining regulations and credentialing. The bill spans several focus areas including workforce development, infrastructure improvements, and specific tax incentives aimed at encouraging investment in U.S.-based maritime operations.

General Overview

This bill proposes substantial appropriations to enhance various aspects of the U.S. maritime sector, establish a new set of regulatory and advisory bodies, and introduce financial incentives for shipbuilding and innovation. It addresses challenges related to maritime security, international competitiveness, and infrastructure modernization. By enhancing these areas, the bill aims to leverage the U.S. maritime industry in global trade while supporting national defense needs through a stronger fleet and workforce.

Significant Issues

A key concern revolves around the establishment of the Maritime Security Trust Fund and associated spending earmarked for various projects. The legislation lacks specific oversight mechanisms, which raises transparency and accountability concerns. This trust fund will manage vast amounts of resources without detailed transparency measures, potentially leading to misuse of funds.

There is also a requirement for a portion of goods imported from China to be transported on American-built and crewed ships. This mandate may disproportionately raise costs and could cause trade disruptions, particularly for smaller shippers, without clear justification.

The judicial review prohibitions for decisions made by the Maritime Administrator and others potentially limit checks and balances, raising concerns about accountability.

Significant appropriations are authorized without data-backed rationale, potentially leading to financial inefficiencies. This generous allocation necessitates rigorous analysis to ensure cost-effective spending that yields measurable benefits.

Impact on the Public

The general public may experience indirect impacts, particularly relating to trade and consumer prices. Implementing mandates for American ships for specific imports may lead to increased shipping costs that could trickle down to consumer prices, affecting affordability.

Additionally, the expansion of the maritime sector supported by the act could promise job creation and economic growth but depends on effective and transparent implementation. Benefits might be widely distributed, especially in areas with prominent shipping and maritime industries.

Impact on Stakeholders

Maritime Industry: The shipping and shipbuilding sectors stand to gain from robust support through increased funding, tax incentives, and development programs. However, stringent restrictions on who can benefit and the preference for U.S. entities could limit foreign competitors and stakeholders, potentially straining international relations.

U.S. Government: The introduction of several advisory and regulatory bodies under this bill could increase government operational capacity challenges without clear performance metrics and could face criticisms of bureaucratic bloat.

International Trade Partners: The bill's focus on U.S. production and services, particularly the requirement for imports to use U.S. ships, might be viewed as protectionist. This could complicate relationships with trading countries, notably China, which is explicitly affected by part of the legislation.

In summary, the bill outlines an ambitious approach to reinvigorating the U.S. maritime industry with the potential for significant economic benefits. However, the lack of detailed implementation mechanisms and oversight pose pronounced challenges. Its true cost-effectiveness and fairness depend on addressing these crucial concerns as the bill progresses through legislation.

Financial Assessment

The "Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024," or H.R. 10493, highlights a substantial investment to bolster the U.S. maritime industry. This includes funding allocations aimed at shipbuilding, upgrading port facilities, and enhancing the maritime workforce.

Appropriations and Financial Allocations

The bill lays out significant appropriations across various sectors. For example, $250,000,000 is earmarked annually from the Maritime Security Trust Fund for shipbuilding financial incentives over ten years, as seen in Section 501. Moreover, the Maritime Security Trust Fund itself is established to support these financial allocations, drawing funds from a series of duties and penalties.

Additionally, Section 201 outlines authorizations that include $30,000,000 each year for administrative expenses for the Maritime Administration and the Coast Guard, alongside $2,000,000 for the Federal Maritime Commission. These figures total to $62,000,000 annually, which is a considerable amount aimed at administrative support.

Relationship to Identified Issues

  1. Financial Transparency: Sections 701 and 9512 establish the Maritime Security Trust Fund but lack detailed oversight mechanisms, raising concerns about transparency and potential misuse of funds. The issues suggest that there is insufficient clarity regarding how these funds will be managed or audited for effectiveness.

  2. Spending Justification: The bill authorizes substantial spending, for example, with $30,000,000 annually for administrative expenses, mentioned above, without clear criteria for budget efficiency. Such allocations without corresponding performance metrics, as noted in the identified issues, could lead to inefficiencies or wasteful spending.

  3. Reimbursement Programs: The allocation of $1,000 for spouse relicensing and business costs might be insufficient considering the complexities involved, as noted in Sections 604 and 52103. This limitation could render these financial programs less effective than intended.

  4. Potential for Favoritism: Section 53604 allows the Administrator to waive specific financial requirements, which can lead to perceived favoritism. Without explicit criteria for these waivers, there is a risk of inequity, affecting transparency in the distribution of financial incentives.

In summary, while H.R. 10493 proposes robust financial support for advancing the U.S. maritime sector, several issues regarding transparency, clarity, and justification of financial allocations warrant attention. These need to be addressed to ensure that the funds effectively meet the act’s stated goals of revitalizing the maritime industry and enhancing national security.

Issues

  • The establishment of the Maritime Security Trust Fund lacks clarity on its oversight mechanisms, detailed accountability for fund management, and specific intended expenditures, raising concerns about financial transparency and potential misuse of funds (Sections 701 and 9512).

  • The requirement that a certain percentage of goods must be imported on U.S. vessels is criticized for potentially raising shipping costs and market disruptions, especially affecting smaller shippers, without clear justification for the trade targeting only goods from China (Sections 415 and 60508).

  • The bill authorizes significant appropriations ($30,000,000 annually) to various departments without clear budgetary justifications, performance metrics, or evaluations for administrative expenses, which could lead to financial inefficiencies or wasteful spending (Section 201).

  • The language used in defining 'foreign entity of concern' is broad and could be perceived as allowing for subjective or biased designations, potentially impacting U.S. maritime policy and international trade relations (Section 4).

  • Judicial review prohibitions in several sections limit accountability and legal recourse, notably on decisions made by the Maritime Administrator, Secretary of Defense, and Secretary of Homeland Security. This raises concerns about transparency and checks and balances (Sections 301, 59103, and 53603).

  • The bill outlines substantial funding increases over multiple years without detailed rationale or cost analysis, potentially leading to future wasteful spending and raising concerns over budget justification (Sections 402, 403, and 404).

  • The provision allowing the administrator to waive certain requirements under Section 53604 could lead to favoritism and lack clear criteria, raising concerns about fairness and transparency in financial incentives (Section 53604).

  • The extensive list of duties assigned to the Maritime Security Advisor and the Maritime Security Board may lead to inefficiencies due to potential bureaucratic overload and lack of clear performance metrics (Section 101).

  • The amendments allowing noncitizen nationals the same rights as U.S. citizens concerning maritime licenses and certifications might raise questions about legal standards and their implications within the naval and coast guard operations (Section 636).

  • Reimbursement of qualifying spouse relicensing and business costs is limited to $1,000, which may not be adequate. The program's overall budget and process lack clarity, which could lead to misunderstandings or inefficiencies (Sections 604 and 52103).

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title; table of contents Read Opens in new tab

Summary AI

The "Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024," also known as the "SHIPS for America Act of 2024," outlines a comprehensive plan to improve and oversee maritime security, support shipbuilding, enhance the workforce, and reform maritime regulations, while also offering financial incentives and tax provisions to strengthen America's maritime infrastructure and domestic maritime activities.

2. Findings Read Opens in new tab

Summary AI

Congress finds that the United States' maritime industry is declining, with fewer shipbuilders and vessels engaged in international trade compared to countries like China, impacting both the national economy and military readiness. Strengthening this sector is vital given the growth of global maritime trade and strategic importance of a competitive U.S. fleet, with particular emphasis on the need for investment and policy prioritization to address current shortfalls.

Money References

  • (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.
  • 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.

3. Sense of Congress Read Opens in new tab

Summary AI

The sense of Congress is that the United States should improve its maritime industry by enhancing shipbuilding and repair capabilities, expanding the maritime workforce, and adopting new technologies. Additionally, efforts should focus on increasing competitiveness in the global market, fostering alliances, ensuring national security, and supporting the maritime industry's role in trade and defense.

4. Definitions Read Opens in new tab

Summary AI

The section defines several key terms used in the Act, such as "appropriate committees of Congress," "domestic commerce," "foreign commerce," and "foreign entity," among others. Each term is explained in detail, identifying the specific committees involved or the conditions under which entities are classified, all of which are vital to understanding the Act's application and context.

101. Maritime Security Advisor; Maritime Security Board Read Opens in new tab

Summary AI

The bill proposes the establishment of a Maritime Security Advisor and a Maritime Security Board to enhance the coordination and oversight of U.S. maritime affairs. The Maritime Security Advisor will lead efforts in developing a National Maritime Strategy, while the Board, comprised of various governmental representatives, will set policy priorities, support maritime system development, and coordinate interagency efforts to boost the marine workforce and protect U.S. vessels.

Money References

  • “(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.

50401. Maritime Security Advisor; Maritime Security Board Read Opens in new tab

Summary AI

The section establishes a Maritime Security Advisor position and a Maritime Security Board to coordinate national maritime policies and strategy. The advisor, appointed by the President, acts as the chief advisor on maritime issues and chairs the board, which consists of representatives from various federal agencies to oversee and improve the United States' marine transportation system, set policy priorities, and support the maritime workforce.

Money References

  • (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.

102. Maritime Transportation System National Advisory Committee Read Opens in new tab

Summary AI

The proposed amendments to Section 50402 involve renaming the authority to the "Maritime Security Advisor and Maritime Security Board," adjusting the representation and appointment of committee members, specifying various federal, state, and private sector entities to be included, and setting membership term limits for non-federal appointees to ensure diverse and rotating committee representation.

103. Direct hire authority Read Opens in new tab

Summary AI

The section allows the Maritime Administrator and the Coast Guard Secretary to hire candidates for urgent positions without following certain federal hiring rules, but they must provide public notice and consult with the Office of Personnel Management. A "critical hiring need" refers to staffing required to carry out the Act and related tasks.

104. Implementation plan Read Opens in new tab

Summary AI

The section outlines the requirement for the Maritime Administrator and the Secretary of the department where the Coast Guard operates to each submit an implementation plan for the Act to Congress within 60 days. These plans should address administrative needs, responsible offices, staffing and training, barriers, timelines, and any other necessary elements. Updates on these plans must be provided biannually for two years, and the Government Accountability Office (GAO) is tasked with reviewing the Act's implementation every two years for ten years.

105. Federal Maritime Commission report on vessels of the United States Read Opens in new tab

Summary AI

The Federal Maritime Commission is required to submit an annual report to Congress and the Maritime Security Board on how competitive U.S. vessels are in international trade. This report must cover various aspects like the shipping of international goods on U.S.-flagged ships, price comparisons with foreign ships, potential market opportunities, markets where U.S. interests pay higher rates, and the impact of foreign vessel registration practices by competitor countries.

201. Apportionment of the Maritime Security Trust Fund Read Opens in new tab

Summary AI

The section authorizes the creation of the Maritime Security Trust Fund to allocate money for administrative expenses and programs related to the United States merchant marine, including funding for maritime academies, training ships, and shipbuilding incentives, for fiscal years 2025 through 2034. It also supports maritime worker programs, infrastructure development, and other initiatives aimed at maintaining a strong maritime workforce and infrastructure.

Money References

  • 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.

50505. Apportionment of the Maritime Security Trust Fund Read Opens in new tab

Summary AI

The section outlines the allocation of funds from the Maritime Security Trust Fund, authorizing $30 million annually for administrative expenses of both the Secretary of Transportation and the Coast Guard from 2025 through 2034, and $2 million for the Federal Maritime Commission. It also specifies that the funds will support various programs related to the U.S. merchant marine, including maritime academies, shipbuilding, port infrastructure, and mariner training and career retention initiatives.

Money References

  • (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.

202. Regular tonnage taxes; Presidential suspension of tonnage taxes and light money Read Opens in new tab

Summary AI

The section amends parts of the United States Code related to tonnage taxes and the President's ability to suspend these taxes on foreign vessels. It allows the President to suspend special tonnage taxes if a foreign country's government doesn't impose unfair duties against the U.S., but this does not apply to ships associated with countries of concern, as defined by a specific U.S. act.

60304. Presidential suspension of tonnage taxes and light money Read Opens in new tab

Summary AI

The President can suspend certain taxes on ships from foreign countries if those countries do not unfairly tax U.S. ships. However, ships owned or operated by certain concerning foreign entities or registered in countries of concern are not eligible for this suspension.

301. Sealift capability Read Opens in new tab

Summary AI

The document outlines efforts to ensure the United States has a strong fleet of ships for defense and economic security, emphasizing the importance of building and maintaining these ships within the country and creating strategies and policies to support this goal. It also highlights the need for international cooperation and agreements to strengthen sealift capabilities and discusses assessments and reports required to evaluate shipbuilding and marine infrastructure readiness for national and economic needs.

59101. Objectives and policy Read Opens in new tab

Summary AI

The section outlines the objectives and policy of the United States to maintain a fleet of ships that can provide strategic support during crises or war. It requires the Maritime Security Board to annually develop strategies to expand this fleet, assess shipbuilding capacity, and report to Congress, ensuring that domestic shipbuilding is prioritized for national security and economic resilience.

59102. Procurement, maintenance, and operation Read Opens in new tab

Summary AI

The Maritime Administrator, alongside the Secretary of Defense and the Secretary of Homeland Security, is responsible for ensuring the United States has a fleet of vessels with commercial and military capabilities. This also includes maintaining various security fleets and ensuring the U.S. can independently manage sealift operations in all situations. Courts cannot review decisions made by these officials regarding this matter.

59103. Sealift prioritization Read Opens in new tab

Summary AI

The section outlines that the Maritime Administrator, along with the Secretary of Defense, must make sure that vessels are available for sealift during wartime and crisis, following a specific order: first, commercial vessels from the U.S.; next, U.S. government-owned vessels; then, vessels from countries with defense treaties with the U.S.; and lastly, vessels from U.S. strategic partner countries. Additionally, decisions made under this section cannot be challenged in court.

59104. International agreements Read Opens in new tab

Summary AI

The section outlines the role of the Maritime Administrator, along with the Secretaries of State and Defense, in forming and updating international agreements with allies to strengthen sealift capabilities for times of crisis and war, and support maritime industries. Additionally, it requires a report by March 2025 to Congress assessing these agreements and recommending updates based on the global security environment.

59105. Briefing on shipbuilding capacity Read Opens in new tab

Summary AI

The section requires the Secretaries of Transportation and Defense to brief Congress by March 1, 2025, on the ability of the U.S. shipbuilding industry to meet the needs for building and repairing ships during both peacetime and wartime. The briefing should include an evaluation and suggestions for enhancing shipbuilding infrastructure, workforce, and supply chains, while considering contributions from allies; additionally, it should assess the impact of the Goldwater-Nichols Act on Naval shipbuilding processes.

59106. Briefing on privileging fleet Read Opens in new tab

Summary AI

The Secretary of Transportation, along with other officials, must brief Congress by March 1, 2025, on options to give special privileges to U.S. vessels that operate in international trade. They will also suggest possible incentives for businesses and governments, including allies, to use U.S. ships for transporting goods.

59107. Report on privilege Read Opens in new tab

Summary AI

The section mandates that by March 1, 2025, the Secretary of Transportation, along with other officials, must submit a report to Congress on how to give U.S. vessels a competitive edge over foreign vessels in terms of regulations, taxes, fees, insurance, and policies, while adhering to international agreements. The report should also suggest ways to support various U.S. maritime fleets and promote their growth in global trade.

59108. Report on requirements for sealift force deployment Read Opens in new tab

Summary AI

The Secretary of Defense must submit a report to Congress by March 1, 2025, detailing the United States military's sealift needs and providing recommendations on maintaining and enhancing various maritime fleets. This report will also assess how the Ready Reserve Force could be more effectively used in trade through public-private partnerships while ensuring it's ready for emergencies.

59109. Assessment on marine infrastructure readiness Read Opens in new tab

Summary AI

The bill requires the Secretaries of Defense, Homeland Security, Commerce, and Transportation to give Congress updates every two years on how ready the U.S. marine infrastructure is to support the country's economic and security needs, including vulnerabilities in cybersecurity and foreign investments. It also mandates the Secretary of State to report on U.S. international agreements for access to global marine infrastructure and support during crises.

302. National Freight Strategic Plan Read Opens in new tab

Summary AI

The section updates the National Freight Strategic Plan by amending a part of the United States Code to include new considerations. These considerations involve the strategic sealift goals outlined in maritime law and the role of maritime networks in transport routes that use multiple ways of moving goods.

303. Foreign shipping practices; controlled carriers Read Opens in new tab

Summary AI

In this section of the bill, changes are made to existing laws to include passenger transportation alongside cargo. It ensures that foreign shipping and controlled carriers cannot offer passenger fares below a fair and reasonable level, by adding "or passengers" and "fare" to the relevant laws.

401. Strategic Commercial Fleet Read Opens in new tab

Summary AI

The section establishes the "Strategic Commercial Fleet," which is a group of private, commercially viable vessels that can be used for national defense and other security needs. It outlines criteria for vessels to join the fleet, agreements for vessel operations, funding appropriations for the fleet, and emergency preparedness requirements, ensuring the fleet is ready to support military and economic security efforts of the United States.

Money References

  • “(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.

53601. Definitions Read Opens in new tab

Summary AI

This section defines key terms for a chapter about shipping and trade regulations. It includes definitions for various entities and activities, such as the "Administrator," "coastwise trade," and "foreign commerce," as well as specific types of vessels like "qualified foreign built vessels" and "United States built vessels."

53602. Establishment of Strategic Commercial Fleet Read Opens in new tab

Summary AI

The United States government plans to create a "Strategic Commercial Fleet" of private ships for defense and security purposes, coordinated by the Administrator with the Secretary of Defense. They will select at least 10 qualifying ships annually through a competitive process, gradually increasing to 20, with a cap of 250 ships total, with eligibility based on citizenship, ship type, and other criteria.

53603. Operating agreements Read Opens in new tab

Summary AI

The section outlines the conditions and requirements for vessels to be included in a specific fleet through operating agreements. It mandates that these agreements ensure vessels are crewed by U.S. mariners, operate exclusively in foreign commerce, and adhere to specific technology and milestone incentives, while also detailing terms for payment, agreement length, renewal, and consequences for non-compliance or lack of funds.

53604. Payments Read Opens in new tab

Summary AI

The U.S. government, through an operating agreement, is required to make payments to shipping entities when certain conditions, like those of vessel operation and availability, are met and within funding limits. These payments come from a fund with amounts predetermined for each fiscal year, and exceptions to these rules can be made when U.S. vessels are not available, with proper notice given and transparency ensured.

Money References

  • (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.

53605. National security requirements Read Opens in new tab

Summary AI

The section outlines the requirements for an emergency preparedness agreement between the program participant and the government, which involves making transportation resources available to the Secretary of Defense during emergencies. The section also details the terms for compensation, use of temporary replacement vessels, and limits on the U.S. government's liability for any damages or disruptions caused by the activation of these resources.

53606. Regulations Read Opens in new tab

Summary AI

The section allows both the Administrator and the Secretary of Defense to create rules necessary for fulfilling their duties according to this chapter.

402. Maritime Security Program Read Opens in new tab

Summary AI

The Maritime Security Program section updates financial appropriation amounts for the upcoming fiscal years, gives priority to certain vessels for military cargo transport, and mandates regular testing and Congressional briefings on the effectiveness of the Maritime Security Fleet during crises.

Money References

  • (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.
  • (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.”.

403. Cable security fleet Read Opens in new tab

Summary AI

The section proposes amendments to a U.S. Code to increase annual payments to the Cable Security Fleet from fiscal years 2025 to 2034, with amounts rising incrementally over the years. It also requires the Secretary of Defense to assess and report to Congress on the preparedness of the fleet to repair undersea cables, potentially damaged by adversaries, and offer solutions for emergency connectivity. Additionally, it seeks authorization for increased appropriations to support these activities.

Money References

  • (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.”.
  • (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.”.

404. Tanker Security Fleet Read Opens in new tab

Summary AI

The section makes changes to the funding of the Tanker Security Fleet by increasing the payment amount from $6 million to $9 million and revising the future budget to allow $120 million for the year 2024 and $180 million annually from 2025 to 2035.

Money References

  • (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”.

405. Modification to duties relating to equipment and repair of vessels Read Opens in new tab

Summary AI

The bill proposes changes to the Tariff Act of 1930, increasing duties on certain vessel equipment and repairs made in foreign countries from 50% to 70%, and to 200% if the repairs occur in countries of concern, but offers exemptions for ships in particular U.S. maritime programs if efforts are made to use U.S. shipyards. Additionally, it mandates a biennial report from the Maritime Administrator about duty payments, U.S. shipyard capacity, repair location choices, and recommendations to support U.S. vessel repairs until 2034.

411. United States Government cargo Read Opens in new tab

Summary AI

The section explains that only certain U.S. officials, under specific conditions, can waive shipping requirements for government cargo, emphasizing the role of the Maritime Administrator in determining vessel availability. It also mandates that all government cargoes must be transported using U.S.-flagged vessels, increasing the required percentage from 50% to 100%, starting 180 days post-enactment, and specifies that the Maritime Security Board must be consulted for decisions on vessel availability.

412. Cargo preference implementation regulations Read Opens in new tab

Summary AI

The Maritime Administrator has 180 days to create regulations and guidelines to ensure compliance with certain rules, including offering guidance to other federal departments and publishing it. They can consult with the Food Aid Consultative Group, and an earlier regulatory deadline set by a previous law is now removed.

413. Cargo preference oversight and audit Read Opens in new tab

Summary AI

Section 413 amends Section 55301 of title 46, United States Code, requiring the Maritime Administrator to notify specific congressional committees within 14 days if they receive credible information about a federal department or agency not complying with certain cargo preference laws.

414. Financing the transportation of agricultural products Read Opens in new tab

Summary AI

The section establishes a system for the Secretary of Transportation to cover any extra shipping costs for agricultural exports due to certain laws, ensuring annual payments to the Secretary of Agriculture and other agencies if their costs exceed a specific percentage of the goods' value. It also mandates interagency agreements to streamline the reimbursement process and allows for needed funds to be allocated each year from a specific trust fund.

55316. Financing the transportation of agricultural products Read Opens in new tab

Summary AI

The Secretary of Transportation is required to cover any increased ocean freight costs from certain agricultural export programs and reimburse the Secretary of Agriculture and other agencies for costs that exceed 20% of the product's value and shipping costs. An agreement between agencies must be established within 180 days to outline reimbursement processes, and Congress will be notified about these agreements. Definitions and funding sources are also specified.

415. Importation from China on American ships Read Opens in new tab

Summary AI

The section outlines a new rule that requires a growing percentage of goods from China to be imported on ships that are American-made, American-crewed, and registered in the U.S., starting with 1% in the fifth year after the law is enacted, increasing by 1% each year, up to 10% in the fourteenth year. Entities that do not comply will face fines, with collected funds going into the Maritime Security Trust Fund, and the law mandates the creation of detailed rules and enforcement mechanisms within four years.

60508. Importation on American ships Read Opens in new tab

Summary AI

This section mandates that a specific percentage of goods imported into the United States from foreign ports must be transported on ships built, crewed, and registered in the U.S., starting with 1% five years after the law is enacted and increasing by 1% each subsequent year until it reaches 10%. If companies fail to comply with these rules, they will be fined, and the rules will be enforced through regulations developed in collaboration with the Maritime Administrator, Secretary of Homeland Security, and the Federal Maritime Commission.

416. Priority for vessels of the United States Read Opens in new tab

Summary AI

The bill section establishes that U.S. vessels should receive priority over foreign vessels when waiting at any U.S. port. However, the Secretary of Transportation has the authority to remove this priority if deemed necessary for the national interest, with a required report to Congress within 30 days of such a decision.

55501. Priority for vessels of the United States Read Opens in new tab

Summary AI

A United States vessel is generally given first access at any American port, taking priority over foreign vessels. However, if the Secretary of Transportation determines this is not in the national interest, they can remove this priority and must notify Congress within 30 days.

417. Moving cargo on vessels of the United States Read Opens in new tab

Summary AI

The section requires the Maritime Security Advisor to assess existing federal laws to encourage more cargo to be transported on U.S. vessels. This includes evaluating benefits like tax breaks, duty modifications, and other incentives, with a report to Congress recommending additional actions.

418. Transportation requirements for certain exports sponsored by the Secretary of Agriculture Read Opens in new tab

Summary AI

The amendment to Section 55314 in title 46 of the United States Code requires certain transportation rules to apply to specific agricultural export projects, such as those under the Food for Progress Act and the McGovern-Dole Program. It also mandates that the Secretary of Agriculture or the USAID Administrator report to Congress each year about any waivers granted and their justifications, and clarifies what constitutes an "agricultural product."

419. Clarifying amendments Read Opens in new tab

Summary AI

The amendments described in the section clarify that specific rules in United States Code related to shipping must be followed for sections of the Food for Peace Act and the Foreign Assistance Act, ensuring these sections are subject to additional legal requirements.

420. Energizing American shipbuilding Read Opens in new tab

Summary AI

The section outlines U.S. requirements for exporting natural gas and crude oil, mandating that a certain percentage must be transported on American-documented vessels with U.S.-manufactured components over specified periods. Exceptions apply for free trade agreements or if requirements cause significant cost increases or delays. The rules aim to support U.S. shipbuilding and provide training opportunities for merchant mariners, with oversight and data provided by federal agencies like the Energy Information Administration.

421. Ship America Office Read Opens in new tab

Summary AI

The Ship America Office is established within the Maritime Administration to help move cargo on U.S. vessels in international commerce. Its duties include assisting different entities with cargo movement, ensuring compliance with cargo preference laws, supporting the maritime industrial base, and preparing reports on commercial shipping opportunities and challenges.

55341. Establishment of Ship America Office Read Opens in new tab

Summary AI

The section establishes the Ship America Office within the Maritime Administration, directing it to aid in transporting commercial and government cargo on U.S. vessels, ensure compliance with related laws, and support the development of a robust U.S. maritime fleet. The office is further tasked with providing training, updating contact information for U.S. vessels, and reporting to Congress and the Maritime Security Board on the challenges and recommendations for enhancing U.S. international commerce shipping.

431. Alternate standards Read Opens in new tab

Summary AI

The section introduces alternate standards for self-propelled vessels that provide oceangoing transportation and are not yet documented under chapter 121 of title 46. These vessels can obtain a certificate of inspection if the owner agrees to have the vessel documented once certified, meets specific conditions regarding design, compliance with international agreements, cybersecurity, and enforcement of regulations by their previous country of documentation, with the Secretary having the authority to recognize certain classification societies for these verifications.

3317. Alternate standards Read Opens in new tab

Summary AI

The section outlines that the Secretary, in consultation with the Maritime Administrator, must create alternate standards within a year to allow certain self-propelled vessels to receive a certificate of inspection if they plan to become documented. To qualify, vessels must meet specific conditions, such as agreeing to apply for documentation, being eligible for documentation, adhering to classification rules and international guidelines, and being assessed for cybersecurity risks. The Secretary may rely on certifications from recognized classification societies to confirm compliance, and may also start a rulemaking process to implement these standards, while ensuring that existing requirements for merchant seamen credentials and vessel manning are not affected.

432. Rulemaking committee on commercial maritime regulations and standards Read Opens in new tab

Summary AI

This section establishes a committee tasked with reviewing and updating U.S. maritime regulations to better align them with international standards and improve the merchant marine industry. The committee, consisting of federal officials, industry representatives, and experts, will analyze existing rules, recommend changes, and report findings to the Secretary of the department overseeing the Coast Guard, who will then take appropriate steps to implement these recommendations.

433. Amendments to Shipowners' Limitation of Liability Act of 1851 Read Opens in new tab

Summary AI

The section updates the Shipowners' Limitation of Liability Act by setting the liability limit for U.S. vessel owners at the value of the vessel and for foreign vessel owners at 10 times the vessel's value, excluding claims for wages and certain personal injury claims from these limits. These changes will apply to liabilities occurring from March 25, 2024.

501. Shipbuilding financial incentives Read Opens in new tab

Summary AI

The bill establishes a program led by the Maritime Administrator to provide financial help to U.S. citizens or shipyards for building or repairing ships in the United States. This program aims to boost shipyard investments and train workers, with strict eligibility and application requirements to ensure benefits for the U.S. economy and national defense.

Money References

  • “(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.

53801. Shipbuilding financial incentives Read Opens in new tab

Summary AI

The section establishes a program led by the Maritime Administrator to provide financial assistance to U.S. entities for building vessels that will be operated under U.S. laws or investing in shipyards. This includes eligibility criteria, application procedures, priority considerations, and specific conditions such as compliance with national defense needs and Buy America provisions.

Money References

  • (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.

502. Assistance for small shipyards Read Opens in new tab

Summary AI

Section 502 amends the United States Code to provide assistance for small shipyards by emphasizing long-term industrial growth to support national and economic security. It increases funding to $100 million each year from 2025 to 2034, sourced from the Maritime Security Trust Fund, to help the Maritime Administration.

Money References

  • 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”.

503. Federal ship financing (title XI) program Read Opens in new tab

Summary AI

The Federal ship financing (title XI) program establishes a revolving loan fund administered by the National Surface Transportation and Innovation Finance Bureau to support ship financing, with $100 million authorized from the Maritime Security Trust Fund for fiscal year 2025. The bill also sets funding requirements, emphasizing projects without federal financial assistance, introduces new purposes for loan obligations to enhance military and security readiness, and ensures all funds follow "Buy America" rules.

Money References

  • “(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

504. Construction reserve fund Read Opens in new tab

Summary AI

The section modifies the rules for construction reserve funds, replacing the term "new vessel" with "eligible vessel" and broadening its definition to include vessels involved in foreign or domestic commerce and fisheries. It revises the requirements for who can establish these funds, updates vessel ownership terms, and adjusts gain or loss calculations, while allowing more flexibility in using and extending the expenditure time for deposits.

505. Capital construction fund Read Opens in new tab

Summary AI

The excerpt modifies laws related to the Capital Construction Fund by updating definitions, terms for citizen and operator agreements, and conditions for qualified withdrawals in the maritime industry. It introduces limitations on asset investment, sets ceilings on fund deposits, and restricts fund use for certain types of cargo equipment, like fully automated cargo handling equipment and cranes manufactured in China, to protect jobs and support domestic manufacturing.

53505. Ceiling on deposits Read Opens in new tab

Summary AI

The section outlines limits on how much money can be put into a capital construction fund each year, tied to an agreement for investing in things like new ship construction or cargo equipment. It explains what counts as revenue for these deposits, including income from operating ships, tax deductions, proceeds from selling ships, and earnings from fund investments; it also states that deposit limits for a leased ship can be reduced by amounts the owner deposits for the same period.

506. Anticipated commercial vessel construction survey Read Opens in new tab

Summary AI

The new section added to Chapter 501 of Title 46, United States Code, requires the Maritime Administrator to conduct annual surveys of commercial vessel owners in the U.S. to understand their construction, maintenance, and modernization plans. These surveys are aimed at understanding future construction needs and involve collecting various information about vessel plans, capabilities, repair intentions, and financial considerations, while ensuring the confidentiality of proprietary information.

50115. Anticipated commercial vessel construction survey Read Opens in new tab

Summary AI

The text outlines a requirement for the Maritime Administrator to conduct an annual survey of commercial vessel owners, agents, or operators in the United States to gather information about their plans for building, maintaining, and updating vessels. The findings, which aim to inform maritime industry needs, can be shared with U.S. shipyards and stakeholders, with proprietary details kept confidential upon request.

507. Streamlined environmental review Read Opens in new tab

Summary AI

The section amends the Fixing America's Surface Transportation Act to include the maritime industry in its streamlined environmental review processes. It specifies that infrastructure construction in the maritime sector involves projects like shipyards, port facilities, manufacturing equipment for maritime trade, and facilities supporting the Navy or the merchant marine.

508. Eligibility for loan guarantees Read Opens in new tab

Summary AI

The amendment to the Energy Policy Act of 2005 expands eligibility for loan guarantees to include various aspects of marine transportation systems, such as commercial vessels, shipyards, marine terminals, and port facilities in the United States.

509. Reports Read Opens in new tab

Summary AI

The section requires the Maritime Administrator and other officials to submit reports to Congress. These reports should focus on enhancing the National Defense Reserve Fleet with shipbuilding financial incentives, strategies for maritime security, and ways to limit U.S. financial ties with Chinese maritime industries.

510. Export control report Read Opens in new tab

Summary AI

The Secretary of State is required to send a report to Congress within one year of this law being enacted. The report should explore ways to ease restrictions from various export control laws that hinder foreign-owned marine companies from joining the U.S. shipbuilding industry, while still ensuring protections for U.S. companies and workers.

511. Assessment of the use of commercial best practices for Navy shipbuilding Read Opens in new tab

Summary AI

The section requires the Navy, along with other departments, to assess and identify commercial shipbuilding best practices that can improve the efficiency and capabilities of Navy and Coast Guard vessels. Within a year, strategies based on this assessment must be reported to Congress, including how these practices will be applied to shipbuilding programs, with a public version also made available.

512. Plan of action for use of Defense Production Act of 1950 authorities Read Opens in new tab

Summary AI

The President must deliver a report to specific Congressional committees within 180 days of this Act's enactment, detailing a plan for using the Defense Production Act of 1950 to boost domestic production capabilities for maritime vehicles, shipyard industrial bases, and port infrastructure in the U.S. The plan should be developed in consultation with a maritime security advisor, the Maritime Security Board, an advisory committee, and relevant private sector stakeholders. The specific committees include those in the Senate and House responsible for Armed Services, Commerce, Science, Transportation, Infrastructure, and Appropriations.

513. Strategy on development of naval rearm-at-sea capability Read Opens in new tab

Summary AI

The bill requires the Secretary of the Navy to develop a plan within 180 days for equipping the Navy's surface fleet with a rearm-at-sea capability. This strategy must include plans for technology development, milestone events, coordination with allies, and consideration of alternative approaches, with a briefing on the strategy due within 90 days.

514. Military Sealift Command Read Opens in new tab

Summary AI

The Secretary of the Navy is allowed to offer more paid leave to government merchant mariners working for the Military Sealift Command to make these jobs more appealing compared to commercial ones. Additionally, the Navy must submit annual reports to Congress detailing efforts to enhance recruitment and retention of these mariners, and also evaluate the potential benefits of extending the duration of charters for certain vessels.

521. United States Center for Maritime Innovation Read Opens in new tab

Summary AI

The United States Congress proposes establishing a United States Center for Maritime Innovation to boost maritime industry technologies and practices through the creation of maritime incubators. These incubators will focus on aspects like clean energy, shipbuilding, and organizing research partnerships to strengthen the United States maritime sector, with allocated funding of $50 million annually for 2025-2034.

Money References

  • “(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.

522. National Shipbuilding Research Program Read Opens in new tab

Summary AI

The National Shipbuilding Research Program is established by the Maritime Administrator, in cooperation with Naval Sea Systems Command, to create plans for building ships in a cost-effective manner. The program supports technology transfers, selects research projects to improve shipbuilding practices, and may carry out special initiatives related to shipbuilding and repair.

523. Assessment on Marine infrastructure readiness Read Opens in new tab

Summary AI

The section of the bill requires the Maritime Administrator to submit a report to Congress within 180 days regarding the current status and necessary resources for improving the United States' maritime infrastructure. This report should consider various aspects, including leveraging private funding, supporting alternative fuels, and enhancing the ability to build and repair shipyards during emergencies. It also addresses the potential effects of restricting certain data-sharing practices with Chinese logistics platforms.

601. Public service loan forgiveness for Merchant Marines Read Opens in new tab

Summary AI

This section modifies the Higher Education Act to include Merchant Marines and United States shipyard workers in the Public Service Loan Forgiveness program. A full-time job for Merchant Marines is defined as having a Merchant Mariner Credential from the Coast Guard and working on a U.S. vessel for at least 150 days per year.

602. Eligibility for educational assistance Read Opens in new tab

Summary AI

In this bill section, certain United States Merchant Mariners who have served at least 10 years and earned specific combat zone awards are made eligible for educational benefits similar to those given to veterans, as long as they are not already eligible for benefits from the Veterans Affairs department. Additionally, funding for these benefits may come from the Maritime Security Trust Fund.

52102. Eligibility for educational assistance Read Opens in new tab

Summary AI

Under this section, certain individuals who served as full-time, credentialed United States Merchant Mariners for at least 10 years and received specific medals for serving in combat zones can qualify for educational assistance, similar to that provided to veterans. These individuals must not be eligible for other veteran benefits, and funds may be allocated from the Maritime Security Trust Fund to support this program.

603. Eligibility of mariners to attend Naval Postgraduate School Read Opens in new tab

Summary AI

The section amends Title 10 of the United States Code to allow officers and unlicensed mariners from the United States Merchant Marine to receive instruction at the Naval Postgraduate School. It specifies that the Secretary of Transportation will cover the costs for this education and requires a report to Congress assessing beneficial military training topics for mariners.

604. Reimbursement of qualifying spouse relicensing costs and business costs Read Opens in new tab

Summary AI

The section establishes a program run by the Secretary of Transportation to reimburse spouses of U.S. merchant marine members for costs related to obtaining new professional licenses or moving a business due to relocations by the service member. Reimbursements are capped at $1,000 for each type of cost and are only available until the end of 2034, with $500,000 allocated annually from a specific fund for this purpose.

Money References

  • “(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).
  • “(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.

52103. Reimbursement of qualifying spouse relicensing costs and business costs Read Opens in new tab

Summary AI

The text describes a program that allows the U.S. Secretary of Transportation to reimburse up to $1,000 for specific relicensing and business costs incurred by the spouse of a U.S. merchant marine member when they move to a new location due to military reassignments. These reimbursements are only available for expenses incurred before the end of 2034, and up to $500,000 is authorized annually from the Maritime Security Trust Fund to support this program from 2025 to 2034.

Money References

  • 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.
  • (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.

605. Noncompetitive eligibility for Federal employment Read Opens in new tab

Summary AI

The section of the bill adds a new provision to allow certain individuals, specifically graduates of the United States Merchant Marine Academy or credentialed U.S. Merchant Mariners with at least seven years of service, to be hired by government agencies without going through the competitive hiring process. This includes agencies like the U.S. Postal Service but excludes the Government Accountability Office.

52104. Noncompetitive eligibility for Federal employment Read Opens in new tab

Summary AI

The section explains that federal agencies can hire certain individuals without the usual competitive process. This includes graduates from the United States Merchant Marine Academy who have completed their service agreement and U.S. Merchant Mariners with at least 7 years of service on a U.S. ship.

606. United States Merchant Marine Career Retention Program Read Opens in new tab

Summary AI

The United States Merchant Marine Career Retention Program aims to keep a qualified workforce ready for national defense by offering career opportunities and support to merchant mariners. It involves creating a system for training, certifications, and job placements, while also ensuring job protections, especially for those mariners working ashore or on foreign vessels.

Money References

  • “(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.

52105. United States Merchant Marine Career Retention Program Read Opens in new tab

Summary AI

The United States Merchant Marine Career Retention Program is designed to ensure a workforce is ready to man vessels during national emergencies by offering opportunities for mariners to maintain or upgrade their skills through shore and sea work arrangements. The program also includes membership options for those working ashore or on foreign vessels, enforces service requirements, provides employment protections, and allocates funding for its implementation.

Money References

  • (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.

611. Maritime and shipbuilding recruiting campaign Read Opens in new tab

Summary AI

The section outlines a plan to tackle the lack of workers in the U.S. maritime and shipbuilding fields by launching a national advertising campaign that highlights the importance and opportunities in these industries. This campaign aims to recruit workers from diverse backgrounds, provide information on training programs, and promote financial assistance, with specific funds allocated over multiple years to support these efforts.

Money References

  • (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).

612. Centers of Excellence for Domestic Maritime Workforce Training and Education Read Opens in new tab

Summary AI

The section amends the law regarding Centers of Excellence for Domestic Maritime Workforce Training and Education by changing the term "nonprofit entity" to "entity" in a certain part and authorizes $25 million per year from 2025 to 2034 for implementing the section, funded by the Maritime Security Trust Fund.

Money References

  • 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.”.

613. Maritime Career and Technical Education Advisory Committee Read Opens in new tab

Summary AI

The section establishes the Maritime Career and Technical Education Advisory Committee, which is tasked with enhancing maritime education by bringing together industry employers and educators to develop training programs and best practices. It specifies the committee's membership, which includes representatives from maritime education, the workforce, industry, technical nonprofits, and various government agencies, and mandates that they meet regularly, develop curricula, and report annually to Congress and the Maritime Security Board.

614. Military Candidates to Mariner Careers Recruitment Exchange Read Opens in new tab

Summary AI

The proposed section outlines a plan where military recruiters are encouraged to refer potential recruits who do not qualify for military service to the Maritime Administration for maritime careers. It requires the Secretary of Defense and the Maritime Administrator to establish systems for these referrals, track their outcomes, and report on the effectiveness of the initiative to Congress.

615. Maritime worker data collection Read Opens in new tab

Summary AI

The bill mandates the Maritime Administrator to publish a report every two years on the condition of the merchant mariner workforce, including details on mariner counts, employment data, credentialing issues, and recommendations for improvement. It also ensures access to necessary data for this report while safeguarding private information, and allocates $1,000,000 annually from 2025 to 2029 for its implementation.

Money References

  • (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.

616. Military to maritime transition Read Opens in new tab

Summary AI

The section requires the Secretary of Defense, along with other government officials, to report on ways to help military members find jobs in the maritime industry after leaving service. It asks them to identify challenges these individuals face in joining the maritime field, such as shipbuilding and repair, and to find ways to make the transition easier, including improving relevant training programs and support services.

617. Early maritime education and youth involvement Read Opens in new tab

Summary AI

The section outlines that the Secretary of the Navy must include a separate budget item for the Naval Sea Cadet Corps in the annual budget request to Congress. It also specifies that the Maritime Administrator should promote engagement with elementary and high school students through designated maritime training and education centers.

618. International scholarship for mariner and naval architecture exchanges Read Opens in new tab

Summary AI

The section establishes an international exchange program for mariners, naval architects, and marine engineers that includes participants from the U.S. and certain allied countries. The program aims to partner with corporations and governments for placements and has a funding authorization of $2 million annually from 2025 to 2034.

Money References

  • (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.

621. Authorization of appropriations for United States Merchant Marine Academy infrastructure and facilities modernization Read Opens in new tab

Summary AI

Congress has authorized funding for a comprehensive 10-year plan to modernize the United States Merchant Marine Academy's facilities. This plan will enhance the Academy's infrastructure to support modern education, prepare for Coast Guard exams, maintain a safe environment, and attract diverse applicants, with $1,020,000,000 allocated from 2025 to 2034.

Money References

  • “(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.

51329. 10-year Campus Modernization Plan Read Opens in new tab

Summary AI

The section outlines a 10-year plan to modernize the United States Merchant Marine Academy campus, including building new facilities, upgrading infrastructure, and ensuring the campus remains fully operational during the process. It authorizes $1.02 billion in funding from 2025 to 2034 for the project, with an initial $54 million allocated in 2025 for planning and design and $107.33 million per year for the following nine years for construction and essential purchases.

Money References

  • (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.

622. United States Merchant Marine Academy Read Opens in new tab

Summary AI

The section addresses the importance of the United States Merchant Marine Academy to national security and calls for investments in its infrastructure and faculty. It authorizes $125 million per year from 2025 to 2034 for the Academy's operations and requires a report on the resources needed to support increased student enrollment.

Money References

  • (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.”.

623. Retirement service credit for service as a midshipman at the United States Merchant Marine Academy Read Opens in new tab

Summary AI

The bill amends retirement laws to allow time served as a midshipman at the United States Merchant Marine Academy to count towards retirement credit in both the civil service and federal employees' retirement systems, and applies to separations and service periods before, on, or after the law's enactment date.

624. State maritime academies Read Opens in new tab

Summary AI

The bill requires the Maritime Administrator to conduct a study and report to Congress within 180 days on the resources needed for State maritime academies to increase their enrollment of mariners, and to consider if new academies are needed in states without one. It also authorizes $10 million per year from 2025 to 2034 for support to these academies.

Money References

  • (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.”.

625. Military to mariner enrollment at a State Maritime Academy Read Opens in new tab

Summary AI

The bill amends section 51506 of title 46, United States Code, to require State maritime academies to offer an expedited program for eligible military veterans, National Guard, or Reserve members. This program allows them to become merchant marine officers without needing to earn a degree from the academy and complete their preparation faster than the usual three years, provided they have already earned a bachelor's degree from a recognized higher education institution.

626. Enforcement of service obligation requirements Read Opens in new tab

Summary AI

The section outlines that the Maritime Administrator must ensure cadets and students fulfill their service obligations after receiving training at the Merchant Marine Academy. It also mandates the creation of a reporting system to track compliance, sends notifications for violations, and requires annual reports to Congress on the status of service-obligated mariners.

627. Fuel funding for training ships operated by State maritime academies Read Opens in new tab

Summary AI

The section outlines funding for fuel and crew costs for training ships operated by State maritime academies, with limits and conditions on the use of federally provided fuel. The Secretary is allowed to pay for fuel and crew costs, with a cap of $20 million yearly from 2025 to 2034, and State maritime academies must offer positions for liaison officers from each military service.

Money References

  • “(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.
  • “(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.

51512. Funding for training ships operated by State maritime academies Read Opens in new tab

Summary AI

The section provides funding for fuel and crew costs for training ships used by State maritime academies. It limits payments to $20 million per year through 2034, prohibits academies from profiting from cadets' sea training fees, and requires offering military liaison billets, with a total of $120 million authorized annually from the Maritime Security Trust Fund.

Money References

  • (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.
  • (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.

628. State Maritime Academy Sea Term Scholarship Programs Read Opens in new tab

Summary AI

The bill establishes a scholarship program for students at State maritime academies to help cover costs of a summer sea term required for obtaining a Coast Guard license. The program, funded mostly by private entities, involves agreements to accept funding, offer privileges to contributors, and requires students to fulfill specific conditions like completing their studies, obtaining a mariner license, and serving in roles supporting U.S. commerce and defense. The bill authorizes $2.5 million annually from 2025 to 2034 for this initiative.

Money References

  • “(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.

51513. State Maritime Academy Sea Term Scholarship Programs Read Opens in new tab

Summary AI

The Maritime Administrator is tasked with collaborating with private maritime industry entities to create a scholarship program for students at State maritime academies, helping them cover costs for a summer sea term required for earning a Coast Guard license. The program is largely funded by private contributions, and in return, private entities may receive certain privileges, such as sharing job opportunities with students. Students benefiting from this program must agree to complete their studies, obtain a merchant mariner license, serve in a relevant maritime role for at least one year post-graduation, and report compliance to the Maritime Administrator. Additionally, $2.5 million is authorized annually from a designated trust fund to support the program from 2025 to 2034.

Money References

  • (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.

629. Naval joint exercise involvement for training ships operated by State maritime academies Read Opens in new tab

Summary AI

The section instructs the Secretary of the Navy and the Maritime Administrator to involve at least one training ship from a State maritime academy in naval exercises to help merchant mariners practice working with the Navy. It also specifies that licensed merchant mariners and students from certain maritime programs can participate in these exercises, with a focus on students, and that training vessels should be rotated so each has a chance to take part.

631. Merchant mariner credentialing modernization Read Opens in new tab

Summary AI

The bill section mandates the Secretary overseeing the Coast Guard to modernize the merchant mariner credentialing system by creating an electronic database for applications and course approvals, improving data exchange with agencies, launching a public portal for credentialing, and upgrading examination processes. It also requires the Secretary to submit annual progress reports to Congress and authorizes $20 million for these changes from the Maritime Security Trust Fund.

Money References

  • (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.

632. Revising merchant mariner deck training requirements Read Opens in new tab

Summary AI

This section of the bill revises training and credential requirements for merchant mariners. It adjusts classification criteria based on vessel operations, modifies existing training stipulations, reduces required service periods, and enacts changes to be implemented by the Coast Guard without needing certain regulatory approvals.

7306. General requirements and classifications for members of deck departments Read Opens in new tab

Summary AI

The section outlines the criteria and classifications for issuing merchant mariner credentials to deck department members, such as Able Seaman and Ordinary Seaman. The Secretary can issue these credentials based on vessel type, operating waters, and other standards, and may consider qualifications like age, experience, and physical condition.

633. Inspections for transportation security Read Opens in new tab

Summary AI

The new section of the United States Code requires the Secretary to inspect certain facilities, such as vessels and platforms, at least once a year to ensure they have needed exemptions under the Outer Continental Shelf Lands Act. It also mandates that during these inspections, the Secretary must verify that all required crew members have proper transportation worker identification credentials.

8109. Inspections for transportation security Read Opens in new tab

Summary AI

The section requires the Secretary to inspect certain transportation facilities, like vessels and platforms, at least once a year to ensure they have necessary exemptions from the Outer Continental Shelf Lands Act. During these inspections, the Secretary must also verify that all crew members have the required transportation worker identification credentials.

634. Technical amendments relating to references to seamen Read Opens in new tab

Summary AI

The section addresses amendments to various parts of title 46 of the United States Code by changing references from "seamen" to "seafarers" in the context of credentials, roles, and classifications related to maritime positions, ensuring consistent terminology throughout the legal text.

635. Renewal of merchant mariner licenses and documents Read Opens in new tab

Summary AI

In Section 635 of the bill, a new rule is added to the U.S. Code regarding the renewal of merchant mariner credentials. It specifies that when a mariner renews their credential, and it is not an extension covered by other subsections, the new credential will start immediately after the current one's expiration date.

636. Merchant seamen licenses, certificates, and documents; manning of vessels Read Opens in new tab

Summary AI

The section amends various parts of Title 46 of the United States Code to include "noncitizen nationals" alongside "citizens of the United States" in laws related to merchant seamen licenses, certificates, documents, vessel manning, command of documented vessels, and certificates of documentation. It ensures that noncitizen nationals, as defined in the Immigration and Nationality Act, are also considered for these maritime roles and certifications.

637. Reactivation of expired license Read Opens in new tab

Summary AI

The section proposes an amendment to the United States Code that allows the Secretary of the department operating the Coast Guard to renew expired licenses, certificates, and merchant mariner documents for up to two years during a national emergency declared by Congress or the President. This renewal can be applied to individual seamen or specific groups of seamen.

7512. Authority for reactivation of United States Merchant Mariner credentials Read Opens in new tab

Summary AI

The Secretary of the department where the Coast Guard operates is allowed to extend expired licenses or credentials for U.S. Merchant Mariners by up to two years if there's a national emergency. This can apply to individual seamen or a specific group, based on necessity during the emergency.

701. Establishment of the Maritime Security Trust Fund Read Opens in new tab

Summary AI

The Maritime Security Trust Fund is being established within the U.S. Treasury, funded by taxes, penalties, and other maritime-related revenues, to address obligations specified under the SHIPS for America Act of 2024 until October 1, 2035. The fund is authorized through amendments in the Internal Revenue Code and various sections of the United States Code pertaining to maritime matters.

9512. Maritime Security Trust Fund Read Opens in new tab

Summary AI

The Maritime Security Trust Fund is a special fund set up by the U.S. Treasury that collects money from various taxes, penalties, and revenues related to maritime activities. It is used to cover specific expenses approved by the SHIPS for America Act of 2024 until October 1, 2035.

702. United States Vessel Investment Credit Read Opens in new tab

Summary AI

The United States Vessel Investment Credit establishes a tax credit for investment in specific types of cargo vessels that are built, repowered, or reconstructed in the U.S., aiming to promote domestic shipbuilding and comply with certain guidelines regarding U.S. maritime security. The credit is defined by the vessel's compliance with specified criteria, including being a U.S. flag vessel, operating in U.S. foreign trade, and being constructed before 2032; additional benefits are provided for meeting further conditions like using specific U.S. insurance or adhering to American classification standards.

48F. United States Vessel Investment Credit Read Opens in new tab

Summary AI

The United States Vessel Investment Credit offers a tax credit to investors involved in the construction, repowering, or reconstruction of specific cargo vessels in U.S. shipyards, provided these vessels meet detailed requirements, such as being a U.S. flag vessel, operating in U.S. foreign trade, and not being associated with foreign entities of concern. The credit amount is determined by an applicable percentage based on the vessel’s compliance with particular criteria, including obtaining U.S. protection and indemnity insurance and classification by recognized U.S. agencies.

703. Certain payments for maritime security excluded from gross income Read Opens in new tab

Summary AI

The section proposes that certain payments made for maritime security, specified under sections of title 46 of the United States Code, should not be counted as taxable income. Additionally, it states that individuals cannot get a tax deduction or credit for expenses related to these excluded payments, and the value of any property will be adjusted based on the amount excluded.

139J. Maritime security payments Read Opens in new tab

Summary AI

Gross income does not include payments made under certain maritime security provisions of the United States Code. However, individuals cannot claim both a deduction or credit and the exclusion for these payments, and the value of any property receiving these benefits must be adjusted accordingly.

704. Elimination of 30-day limitation on domestic operations Read Opens in new tab

Summary AI

The bill removes the 30-day limit on domestic operations as specified in Section 1355 of the Internal Revenue Code by eliminating certain paragraphs and subparagraphs, and these changes will affect tax years starting after the law is enacted.

705. Qualifying shipping activities Read Opens in new tab

Summary AI

Section 705 amends a part of the Internal Revenue Code to change the language about qualifying shipping activities. It replaces the phrase "activities in operating" with "the carriage of goods," as defined by a specific maritime law.

706. Qualifying vessel Read Opens in new tab

Summary AI

The amendment to Section 1355(a) of the Internal Revenue Code defines a "qualifying vessel" as a ship that is self-propelled, at least 6,000 deadweight tons, used only in foreign trade, and either a U.S. flag vessel or U.S.-owned foreign flag vessel. A "U.S.-owned foreign flag vessel" is outlined as a ship registered outside the U.S. but owned by a U.S. citizen who also has a fleet of U.S. ships and an agreement with the Maritime Administrator.

707. Credit for construction of shipyard facilities Read Opens in new tab

Summary AI

The section introduces a new tax credit, called the Shipyard Investment Tax Credit, which allows taxpayers to receive a credit of 25% of their investment in qualified shipyard facilities within the United States. This credit applies to facilities involved in constructing or repairing ships, making important components for ships, or producing equipment used in shipbuilding, and is available for property placed in service from 2025 to 2031.

48G. Credit for construction of shipyard facilities Read Opens in new tab

Summary AI

For tax years before 2032, taxpayers can get a 25% tax credit for investments in shipyard facilities in the U.S. that build or repair ocean-going vessels or make important parts for them. However, this credit cannot be combined with another similar credit for the same property in the same year.

708. Tax incentives relating to merchant marine capital construction funds Read Opens in new tab

Summary AI

The section amends the rules related to capital construction funds used for building ships, making it clear how much money can be deposited and what revenues are included. It specifies that funds can't be used to buy certain automated equipment or cranes from China and outlines changes to how money in the fund is taxed if it stays in there for too long, with the rules taking effect for tax years after 2024.

709. Exemption of student incentive payment agreements from gross income Read Opens in new tab

Summary AI

Congress has introduced an amendment to the Internal Revenue Code that makes student incentive payments exempt from counting as gross income for individuals participating in certain agreements under U.S. law. This change will apply to payments made after December 31, 2024.

139K. Student incentive payment agreements Read Opens in new tab

Summary AI

In Section 139K, it states that if a person has an agreement as per section 51509 of title 46, United States Code, their gross income won't include any student incentive payments they receive under that agreement.

710. Maritime fuel tax parity Read Opens in new tab

Summary AI

The new amendment to the Internal Revenue Code allows a tax exemption for fuel used by vessels involved in trade between U.S. ports on either the Atlantic, including the Gulf of Mexico, or the Pacific, as long as these vessels meet certain criteria.