Ukraine War Risk Insurance Act

Bill Number: H.R. 3973
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: International Affairs
Status: Introduced
Latest Action: 2025-06-12: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Transportation and Infrastructure, 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.
Last Updated: 2026-05-30T20:47:05Z

AI-Generated Summary

Purpose of the Legislation

The Ukraine War Risk Insurance Act aims to support Ukraine's economy and global food security amid Russia's invasion by providing temporary U.S. government-backed war risk insurance for commercial vessels involved in importing goods to or exporting goods from Ukraine. It recognizes that such waterborne trade serves U.S. national defense and economic interests, while promoting international cooperation for Ukraine's recovery and integration with Europe and the U.S.

Key Provisions

War Risk Insurance Eligibility (Section 3): For five years starting from the bill's enactment, commercial vessels owned by citizens of NATO member countries, Ukraine, or other nations deemed eligible by the Secretary of State (in consultation with the Secretary of Transportation) qualify for U.S. war risk insurance or reinsurance under existing federal maritime law (Chapter 539 of Title 46, U.S. Code). This overrides certain restrictions on vessel eligibility and expands coverage to include a broader range of cargo imported to or exported from Ukraine.
Insurance for Ukraine Initiative (Section 4): Establishes a new entity within the Department of State to:
Build confidence in Ukraine's economic recovery through war risk insurance.
Encourage European allies and partners to finance and invest in Ukraine's rebuilding.
Promote Ukraine's economic ties with Europe and the U.S., supporting its path to European Union membership.
Coordinate outreach to private insurance companies for war risk coverage.
Collaborate with Ukraine, international organizations, and allies in the Middle East and Africa to ensure reliable and affordable shipments of grain and food from Ukraine.
The Secretary of State must submit annual reports to Congress for four years assessing progress and proposing further legislation.
Diplomatic and Political Support (Section 5): The Secretary of State, working with other federal agencies, must provide diplomatic backing to countries offering war risk insurance for Ukraine, including building their capacity through U.S. expertise.
U.N. Food and Agriculture Organization Engagement (Section 6): The U.S. Representative to the U.N. Food and Agriculture Organization (FAO) must advocate for a multilateral insurance mechanism to protect shipments of grain and other commodities from Ukraine.

Significant Changes to Existing Law

Overrides specific limitations in Section 53902 of Title 46, U.S. Code, which normally restricts war risk insurance eligibility to U.S.-owned or controlled vessels, by extending it to allied and Ukrainian vessels for Ukraine-related trade.
Exempts Ukraine-related cargo from restrictive subparagraphs in Section 53903(a)(3) of Title 46, U.S. Code, allowing broader types of goods (e.g., beyond traditional U.S. exports like military or strategic items) to be covered.
Defines "ownership by a citizen" using existing U.S. maritime standards (Section 50501 of Title 46, U.S. Code), ensuring consistency but expanding application to foreign entities from qualifying countries.

Potential Impacts

On Government Agencies: The Department of State gains a new initiative requiring coordination, reporting, and diplomatic efforts, potentially increasing administrative workload and international engagement. The Department of Transportation may assist in insurance determinations, affecting maritime oversight.
On Citizens and Businesses: U.S. and allied shipping companies benefit from reduced insurance costs and risks for Ukraine trade, encouraging more commerce. Ukrainian exporters, especially in agriculture, could see improved access to global markets, lowering food prices worldwide.
On International Relations: Strengthens U.S. alliances with NATO members, Ukraine, and partners in Europe, the Middle East, and Africa by promoting joint economic support against Russian aggression. It could enhance U.S. influence at the U.N. FAO and facilitate Ukraine's EU integration, while addressing global food security amid the Ukraine conflict.

Main Stakeholders Affected

U.S. Government Entities: Departments of State and Transportation; congressional committees on Foreign Affairs and Foreign Relations.
Commercial and Shipping Interests: Owners and operators of vessels from NATO countries, Ukraine, and approved nations; private insurance companies involved in war risk coverage.
Ukraine and International Partners: Ukrainian government and exporters (particularly grain and food sectors); NATO allies, European Union aspirants, and Middle Eastern/African countries aiding shipments.
Global Organizations: U.N. Food and Agriculture Organization; international bodies supporting Ukraine's recovery.

Notable Legal, Constitutional, or Political Implications

Legal: Expands federal maritime insurance authority without new funding mechanisms specified, relying on existing programs; potential for administrative challenges in defining eligible vessels or cargo under overridden statutes.
Constitutional: Aligns with Congress's powers over foreign commerce and national defense (Article I, Section 8), but involves executive discretion (e.g., Secretary of State's eligibility determinations), which could invite oversight or legal challenges if seen as overreach.
Political: Signals strong U.S. bipartisan support for Ukraine (introduced by Democrats but with broad implications), reinforcing anti-Russia policies; may face debate over costs to U.S. taxpayers for insuring foreign vessels and the balance between domestic maritime priorities and international aid. Promotes multilateralism through U.N. and allied coordination, potentially influencing future foreign aid legislation.

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

Sponsor

Rep. Keating, William R. [D-MA-9]

Cosponsors (2)

Rep. Quigley, Mike [D-IL-5], Rep. McGovern, James P. [D-MA-2]

Recent Actions

2025-06-12: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Transportation and Infrastructure, 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.
2025-06-12: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Transportation and Infrastructure, 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.
2025-06-12: Introduced in House
2025-06-12: Introduced in House

Bill Versions

Ukraine War Risk Insurance Act — issued 2025-06-12 — PDF (5 pages)