A bill to amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards.
- Bill Number
- S. 1577
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2025-05-01: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2025-05-21T16:28:07Z
AI-Generated Summary
Purpose
This bill aims to modify existing restrictions on building U.S. Coast Guard vessels in foreign shipyards, allowing limited exceptions to promote national security, cost savings, and faster delivery while prioritizing allied nations.
Key Provisions
- General Prohibition: Maintains the core rule that Coast Guard vessels and major components must be built in U.S. shipyards, with minor rephrasing for clarity.
- National Security Exception (Authorized by the President):
- The President can waive the prohibition if it serves U.S. national security interests.
- Requires advance notice to Congress, with a 30-day waiting period before any contract is signed.
- Waiver only possible after certification (by the President, in coordination with the Coast Guard Commandant) that the foreign shipyard meets all these criteria:
- It is in a NATO member country or a nation with an active U.S. defense treaty in the Indo-Pacific region (e.g., countries like Japan or Australia under security pacts).
- Using the foreign shipyard costs less than a U.S. shipyard.
- Delivery from the foreign shipyard is more than 18 months faster than from a U.S. shipyard.
- In the past 5 years, the foreign shipyard has successfully built and delivered a vessel for U.S. missions (like border or homeland security patrols) at lower cost and faster timeline than U.S. options.
- Acquisition of Completed Vessels (Authorized by the Secretary of Homeland Security):
- Allows purchase of fully built vessels from qualifying foreign shipyards (same NATO or Indo-Pacific criteria).
- Requires the foreign government to provide a warranty agreement covering the vessel's quality and performance.
Significant Changes to Existing Law
- The bill amends Section 1151 of Title 14, U.S. Code (which governs Coast Guard operations), by restructuring and expanding the exceptions in subsection (b).
- Previously, exceptions were more limited and less detailed; this introduces strict, multi-part certification requirements tied to alliances, cost, speed, and proven performance, shifting from a near-total ban to conditional flexibility focused on strategic partners.
Potential Impacts
- Government Agencies: The U.S. Coast Guard and Department of Homeland Security could acquire vessels more quickly and affordably, improving readiness for missions like maritime security and disaster response. However, it might reduce demand for U.S. shipyards, affecting federal procurement budgets.
- Citizens: Could indirectly benefit taxpayers through lower costs and faster fleet modernization, enhancing national defense without direct citizen impacts.
- International Relations: Strengthens ties with NATO allies (e.g., Canada, UK) and Indo-Pacific partners (e.g., South Korea, Philippines) by enabling defense-related shipbuilding cooperation, potentially fostering reciprocal agreements but risking tensions with non-qualifying nations.
Main Stakeholders Affected
- U.S. Coast Guard and Department of Homeland Security: Gain flexibility in vessel procurement but must coordinate certifications.
- U.S. Shipbuilding Industry and Workers: Face potential loss of contracts to foreign yards, impacting jobs in domestic shipyards (e.g., in states like Virginia or Mississippi).
- Congress and the President: Congress receives oversight via notifications and certifications; the President gains authority for national security waivers.
- Foreign Governments and Shipyards: Qualifying allies (NATO or Indo-Pacific treaty nations) benefit from new U.S. business opportunities, provided they offer warranties.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces congressional oversight through mandatory notifications and certifications, ensuring exceptions align with U.S. law on homeland security missions (referencing the Homeland Security Act). No changes to core "Buy American" principles but carves out targeted exceptions.
- Constitutional: Aligns with the President's Article II powers on national security while respecting Congress's Article I authority over spending and military affairs via the 30-day review.
- Political: May spark debate between protecting domestic jobs (a key "America First" priority) and pragmatic alliances amid global threats like those in the Indo-Pacific; could influence future defense budgets and trade policies without major controversy if limited to allies.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-05-01: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2025-05-01: Introduced in Senate
Bill Versions
- To amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards. — issued 2025-05-01 — PDF (4 pages)