SHIPS for America Act of 2025

Bill Number: H.R. 3151
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Transportation and Public Works
Status: Introduced
Latest Action: 2025-05-01: Referred to the Subcommittee on Coast Guard and Maritime Transportation.
Last Updated: 2026-06-30T08:06:06Z

AI-Generated Summary

Purpose

The Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 (SHIPS for America Act of 2025) aims to bolster U.S. national defense and economic security by revitalizing the domestic maritime industry. It focuses on expanding the U.S. fleet of vessels, modernizing ports and shipyards, and strengthening the maritime workforce to reduce reliance on foreign shipping (particularly from China), ensure strategic sealift readiness during crises, and promote U.S. competitiveness in global trade. The Act addresses findings of a weakened U.S. maritime sector, including a small fleet (under 200 oceangoing vessels vs. China's 5,500+), limited shipbuilding capacity (20 yards vs. post-WWII 80+), and insufficient mariners (12,000 vs. potential wartime needs).

Key Provisions

The legislation is structured across seven titles, establishing oversight mechanisms, funding sources, and incentives while reforming regulations and taxes.

Title I: Oversight and Accountability
Creates a Maritime Security Advisor in the Executive Office of the President to coordinate national maritime policy and chair the new Maritime Security Board (comprising leaders from DoD, DOT, DHS, and other agencies).
Updates the National Maritime Strategy for regular implementation and public availability.
Grants direct-hire authority to the Maritime Administration (MARAD) and Coast Guard for critical roles; authorizes administrative expenses from the new trust fund.
Requires implementation plans, GAO reviews, and annual Federal Maritime Commission reports on U.S. vessel competitiveness.

Title II: Maritime Security Trust Fund
Establishes a dedicated fund (capped at $20 billion) financed by tonnage taxes, repair duties, penalties, and trade-related revenues; available until 2035 for maritime programs.
Increases tonnage tax rates and adds penalties (up to $5/ton) for vessels linked to foreign countries/entities of concern (e.g., China); allows presidential suspension only for non-discriminating nations.
Funds oversight, shipbuilding, workforce, and infrastructure.

Title III: Sealift Capability
Sets policy for a privileged U.S. fleet prioritizing commercial vessels for wartime/crisis sealift.
Requires annual strategies aligned with DoD's Mobility Capability Requirements Study.
Updates national freight plans to include sealift; strengthens oversight of foreign shipping practices and controlled carriers (extending to passengers).

Title IV: Vessels of the United States in International Commerce
Subtitle A: Strategic Sealift Programs – Establishes the Strategic Commercial Fleet (up to 250 vessels) with operating agreements (7-year terms, renewable twice); provides payments for operations/capital; prioritizes U.S.-built vessels post-2030.
Requires testing of sealift fleets, assessments of cable repair, and modifications to vessel repair duties (70% on foreign repairs, 200% for countries of concern; temporary exemptions for security fleets).
Subtitle B: Cargo Preference – Increases U.S. government cargo requirement to 100% on U.S. vessels (phased in); strengthens waivers, oversight, audits, and financing for agricultural exports; prioritizes U.S. vessels for China imports (ramping to 10%); creates Ship America Office for compliance and promotion.
Subtitle C: Regulatory Reform – Allows alternate standards for foreign-built vessels entering U.S. registry; forms a rulemaking committee to align U.S. regulations with international treaties; amends Shipowners' Limitation of Liability Act (5x liability cap for foreign vessels).

Title V: Shipbuilding
Subtitle A: Financial Incentives – Launches Shipbuilding Financial Incentives Program (up to $250M/year) for U.S.-built vessels and shipyard investments; enhances small shipyard grants ($100M/year), Title XI loans, Construction Reserve/Capital Construction Funds.
Surveys anticipated commercial builds; streamlines environmental reviews; expands loan guarantees.
Subtitle B: DoD Programs – Assesses commercial practices for Navy shipbuilding; plans Defense Production Act use; reports on Military Sealift Command.
Subtitle C: Innovation and Infrastructure – Establishes U.S. Center for Maritime Innovation with incubators; expands National Shipbuilding Research Program; assesses infrastructure readiness.

Title VI: Workforce Development
Subtitle A: Incentives – Extends public service loan forgiveness to Merchant Marines; provides GI Bill eligibility, Naval Postgraduate School access, spouse relicensing/business reimbursements ($1,000 each/relocation), noncompetitive federal hiring, and a Career Retention Program (8-3-1 schedule for shoreside workers).
Subtitle B: Pipeline – Funds promotion/recruitment ($15-25M/year); designates Centers of Excellence ($25M/year); creates advisory committee; facilitates military-to-mariner transitions and youth programs; offers international scholarships.
Subtitle C: Academies – Authorizes $1.02B (2026-2035) for USMMA modernization (10-year plan); $125M/year operations; credits midshipman service for retirement; $10M/year for state academies; enforces obligations; funds fuel/crew ($120M/year); enables sea term scholarships ($2.5M/year); includes training ships in naval exercises.
Subtitle D: Credentialing – Modernizes systems ($20M); revises deck training (reduces service times); inspects offshore facilities; eases renewals; allows noncitizen nationals; reactivates expired credentials in emergencies.

Title VII: Tax Amendments
40% credit (up to 45%) for U.S. vessel investments (post-2025); excludes maritime security payments from income; eliminates 30-day domestic ops limit; expands qualifying activities/vessels.
25% credit for shipyard facilities (to 2032); enhances capital funds (15-year max); exempts student incentives; equalizes fuel taxes; treats maritime prosperity zones (up to 100 tracts) as opportunity zones.

Significant Changes to Existing Law

Cargo Preference: Raises U.S. flag requirement from 50% to 100% for government cargoes (effective 180 days post-enactment); limits waivers to emergencies with MARAD non-availability determinations; adds financing reimbursements (up to 80% of differential costs).
Tonnage Taxes/Penalties: Removes caps, adds inflation adjustments and penalties ($1.25-$5/ton) for China-linked vessels; prohibits suspensions for countries of concern.
Fleets and Incentives: New Strategic Commercial Fleet (replaces/revises others); expands sealift prioritization; repeals outdated Merchant Marine Act Title V; modifies Construction Reserve/Capital Funds for repowering/reconstruction (15-year limit).
Workforce/Credentialing: Reduces deck service requirements (e.g., 3 years to 18 months for Able Seaman); allows noncitizen nationals; reactivates expired credentials in emergencies; adds USERRA protections for retention program.
Taxes: New credits (48F/48G) for vessels/shipyards; excludes security payments from income; broadens qualifying vessels/activities; designates maritime zones as opportunity zones.
Regulations: Alternate standards for foreign vessels; rulemaking to align with IMO treaties; 5x liability for foreign vessels; Buy America for funded projects.

Potential Impacts

Government Agencies: Enhances coordination via new Advisor/Board; burdens MARAD/Coast Guard with implementation (e.g., trust fund admin, credentialing upgrades); boosts DoD sealift readiness but requires annual strategies/reports; increases funding ($ billions via trust fund) for DOT/DHS/DoD programs through 2035.
Citizens: Creates jobs in shipbuilding/workforce (e.g., retention program, academies); provides tax incentives/credits benefiting vessel owners/investors; improves mariner training/access but may raise costs for non-U.S. flag shipping; supports economic security by reducing foreign dependence.
International Relations: Penalizes China-linked vessels/trade, potentially escalating tensions; promotes alliances via scholarships/exercises; aligns regulations with IMO for competitiveness; de-risks supply chains from adversaries, affecting global trade (e.g., 10% China imports on U.S. ships by 2039).

Main Stakeholders Affected

Maritime Industry: Shipbuilders, yards (20 U.S. facilities), vessel operators/owners (e.g., via new fleets/incentives); ports/terminals (infrastructure funding, prosperity zones).
Workforce: Merchant mariners (12,000+; retention, training, credentials); academies (USMMA/state; $1B+ modernization, scholarships); labor organizations (partnerships, protections).
Government: MARAD (lead implementation), Coast Guard (credentialing/inspections), DoD (sealift, exercises), DOT/DHS (oversight/funding); taxpayers (via trust fund revenues/tax credits).
International Actors: China/foreign entities of concern (penalties, restrictions); allies (scholarships, joint exercises, shared burdens).

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens cargo preference/enforcement (potential challenges under trade laws); expands noncitizen national eligibility (aligns with immigration statutes); enables emergency credential reactivation (balances security with due process); Buy America mandates comply with WTO but target adversaries.
Constitutional: Invokes Commerce Clause for regulating interstate/international trade; emergency powers (e.g., waivers, reactivations) raise separation-of-powers questions if overused.
Political: Bipartisan (45+ sponsors); prioritizes U.S. resurgence vs. China (findings highlight disparities); long-term funding (to 2035) signals sustained commitment but requires appropriations; opportunity zones extension aids economic development in maritime areas, potentially influencing elections in coastal districts.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Kelly, Trent [R-MS-1]

Cosponsors (139)

Rep. Garamendi, John [D-CA-8], Rep. Wittman, Robert J. [R-VA-1], Rep. Norcross, Donald [D-NJ-1], Rep. Higgins, Clay [R-LA-3], Rep. Khanna, Ro [D-CA-17], Rep. Elfreth, Sarah [D-MD-3], Rep. DesJarlais, Scott [R-TN-4], Rep. McCormick, Richard [R-GA-7], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Rutherford, John H. [R-FL-5], Rep. Gooden, Lance [R-TX-5], Rep. LaLota, Nick [R-NY-1], Rep. Pingree, Chellie [D-ME-1], Rep. Hoyle, Val T. [D-OR-4], Rep. Messmer, Mark B. [R-IN-8], Rep. Haridopolos, Mike [R-FL-8], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Fields, Cleo [D-LA-6], Rep. Carter, Troy A. [D-LA-2], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Moskowitz, Jared [D-FL-23], Rep. Bera, Ami [D-CA-6], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Harrigan, Pat [R-NC-10], Rep. Golden, Jared F. [D-ME-2], Rep. Bergman, Jack [R-MI-1], Rep. Fallon, Pat [R-TX-4], Rep. Van Orden, Derrick [R-WI-3], Rep. Wied, Tony [R-WI-8], Rep. Tokuda, Jill N. [D-HI-2], Rep. Moore, Barry [R-AL-1], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Scholten, Hillary J. [D-MI-3], Rep. Moore, Tim [R-NC-14], Rep. Strong, Dale W. [R-AL-5], Rep. Luttrell, Morgan [R-TX-8], Rep. Zinke, Ryan K. [R-MT-1], Rep. Hamadeh, Abraham J. [R-AZ-8], Rep. Hayes, Jahana [D-CT-5], Rep. Davis, Donald G. [D-NC-1], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Bell, Wesley [D-MO-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Crow, Jason [D-CO-6], Rep. Moolenaar, John R. [R-MI-2], Rep. Bacon, Don [R-NE-2], Rep. Mills, Cory [R-FL-7], Rep. Smith, Christopher H. [R-NJ-4], Rep. Kustoff, David [R-TN-8], Rep. Riley, Josh [D-NY-19] and 89 more

Recent Actions

2025-05-01: Referred to the Subcommittee on Coast Guard and Maritime Transportation.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Armed Services, and in addition to the Committees on Transportation and Infrastructure, Ways and Means, Energy and Commerce, Foreign Affairs, Oversight and Government Reform, Education and Workforce, Financial Services, the Judiciary, Natural Resources, Science, Space, and Technology, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Introduced in House
2025-05-01: Introduced in House

Bill Versions

Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 — issued 2025-05-01 — PDF (341 pages)