S1541119th CongressWALLET

SHIPS for America Act of 2025

Sponsored By: Senator Mark Kelly

Introduced

Summary

Expand U.S. shipbuilding and maritime capacity for national and economic security. The SHIPS for America Act of 2025 would create a broad statutory framework to grow U.S.-flag fleets, boost domestic shipbuilding and repair, modernize mariner credentials and training, and fund ports, cable repair, and maritime innovation.

Show full summary
  • Mariners and students would get credential modernization, new scholarships and loan-forgiveness eligibility, and major academy support including about $125.0 million per year for the U.S. Merchant Marine Academy FY2026–FY2035.
  • U.S. shipyards and builders would gain new financing tools and incentives including a Title XI revolving loan start of $100.0 million and $100.0 million per year for small shipyard assistance FY2026–FY2035.
  • Commercial shipping, ports, and national security would be reshaped by stronger cargo-preference rules, tariff and tonnage-tax penalties for foreign-of-concern shipyards, and a Strategic Commercial Fleet with targets of at least 10 vessels in year three and 20 vessels per year thereafter.

*If enacted, it would authorize a Maritime Security Trust Fund capped at $20.0 billion and multiple annual appropriations and program payments through FY2035, increasing federal spending obligations over the next decade.*

Bill Overview

Analyzed Economic Effects

19 provisions identified: 11 benefits, 3 costs, 5 mixed.

Big new funding for U.S. shipyards

If enacted, the bill would boost shipyard and shipbuilding support. Small shipyard assistance would be $100 million per year for FY2026–FY2035. The bill would create shipbuilding incentives and expand Capital Construction and Construction Reserve Fund uses to cover equipment, repowering, and loan principal. It would set up a Title XI revolving loan fund with a $100 million FY2026 start and change loan guarantee rules to favor U.S. projects and Buy America. It would also create and fund an innovation center to help U.S. maritime startups.

Sealift Readiness and Port Priority

If enacted, the bill would require annual strategic sealift planning to grow U.S. vessels that can move military and key cargo. Companies in emergency preparedness agreements would make ships available to the Defense Department in wartime or national emergencies and get redelivery or repair compensation. The law would prioritize U.S. commercial ships at ports ahead of certain foreign vessels and require covered facilities to be inspected at least once a year to verify exemptions and TWIC credentials.

New Maritime Trust Fund and Oversight

If enacted, the bill would create a Maritime Security Trust Fund capped at $20 billion. The Fund would get certain tonnage taxes, duties, penalties, and seizure proceeds and pay for maritime programs through 2035. The President would name a Maritime Security Advisor and a Maritime Security Board to set targets and oversee spending. The law would also let the Trust Fund staff the Board and pay annual agency and academy amounts (for example, $125 million a year for the Merchant Marine Academy and $30 million a year for MARAD administration).

Strategic Commercial Fleet Program

If enacted, the bill would create a Strategic Commercial Fleet program for privately owned U.S. vessels useful to defense. MARAD must solicit applications within one year and start selecting vessels two years after enactment. The program targets at least 10 vessels in year 2 then 20 per year later, with a fleet cap of 250 vessels. Participants sign 7-year operating agreements and may get annual operating and capital support. The bill also authorizes payments from the Trust Fund that ramp from $150 million in FY2026 to $2.1 billion in FY2035, subject to milestones and appropriations.

New caps on shipowner liability

If enacted, the bill would cap an owner of a U.S. vessel's liability for listed claims at the value of the vessel plus pending freight. For foreign vessels, the cap would be five times that amount. Wage claims are excluded from those caps. For foreign vessels, some personal injury and wrongful death claims of non-crewmembers or non-passengers would also be excluded. The rules apply to liabilities arising on or after enactment.

Mariner Jobs, Retention, and Support

If enacted, the bill would create a Merchant Marine Career Retention Program with an 8‑month shoreside / 3‑month sailing / 1‑month vacation option, employer return‑to‑job protections, and $2 million a year for FY2025–FY2034. It would let agencies hire certain qualified mariners noncompetitively, allow up to 2‑year emergency renewals of expired mariner credentials during declared emergencies, let the Navy speed paid leave accrual for sealift mariners, require enforcement and annual reporting on service obligations, encourage recruiter referrals to maritime jobs, and reimburse mariners for spouse relicensing and business relocation costs (up to $1,000 each per relocation through 2035).

Maritime Training, Academies, Scholarships

If enacted, the bill would fund and improve maritime training and academy capacity. MARAD must start a 10‑year modernization plan for the Merchant Marine Academy within 180 days. The bill would fund State academy assistance, pay some training ship fuel and crew costs (fuel capped at $20 million per academy), support sea‑term scholarships ($2.5 million per year), fund international exchanges ($2 million per year), and require a biennial mariner workforce report ($1 million per year).

More training and loan help for mariners

If enacted, the bill would fund maritime training centers with $25 million a year for FY2026–FY2035. It would let merchant mariners and shipyard workers count for Public Service Loan Forgiveness if mariners work at least 150 days on U.S. vessels. Long-serving mariners who served 10 years and earned a combat-zone award could get VA education benefits. The Coast Guard and Maritime Administration could hire certain staff faster to run these programs. Time at the U.S. Merchant Marine Academy would count for federal retirement credit.

Temporary duty-free rule for repairs

If enacted, the bill would temporarily (through Dec 31, 2035) exempt certain foreign repairs, parts, and equipment from duties for vessels in specified U.S. security fleets or with approved preparedness agreements. To qualify, the Maritime Administrator must confirm fleet participation and the owner must certify a good-faith effort to use a U.S. shipyard. The exception would not apply to repairs in listed countries of concern.

New national maritime strategy requirement

If enacted, the Maritime Security Advisor would develop and submit a National Maritime Strategy and an implementation plan to Congress. The strategy must be updated at least every five years. Each plan and its implementation steps must be made public within six months of submission. The duty to act depends on the Advisor being appointed.

Grow U.S. Shipbuilding and Supply

If enacted, the bill would push several steps to strengthen the U.S. shipyard industrial base. It would require an early survey of commercial construction plans and an annual assessment of shipyard capacity. The Maritime Security Advisor could list foreign shipyards of concern starting after October 1, 2027. The bill also directs a National Shipbuilding Research Program, a Defense Production Act Title III plan within 180 days, and a Coast Guard rulemaking committee to review commercial regulations and recommend changes.

Limits on automation and crane purchases

If enacted, the bill would stop Capital Construction Fund withdrawals to buy fully automated cargo equipment if the Secretary finds it would cause net job losses at a terminal. It would also bar CCF purchases of cranes made in the People's Republic of China or by listed foreign entities. The law would require an annual federal request for information on U.S.-made cargo equipment availability.

New U.S. vessel rules for exporters

If enacted, crude oil and natural gas exporters would need to transport rising percentages of yearly exports by qualifying U.S. vessels under multi-year schedules. Early years allow retrofit or U.S.-built tests; later years require U.S.-built vessels. The President or Commission may grant narrow waivers for high cost, delays, or lack of U.S. parts. The Natural Gas Act would also be conformed so export orders include the new condition.

Higher penalties and tariff cost rules

If enacted, the bill would add per-ton penalty taxes on covered vessels (top rate $5.00 per ton, with other tiered rates), adjusted annually for inflation. It would raise the share of foreign repair or parts costs counted for duties from 50% to 70%, and to 200% for listed foreign countries of concern. The President could not suspend tonnage taxes for vessels tied to countries of concern. The law would also change an import cost-comparison test wording used in duty assessments.

New rules for Strategic Commercial Fleet

If enacted, the Maritime Administrator must solicit SCF applications within one year and allow at least 30 days to apply. SCF operating agreements would require U.S. crewing, operation only in foreign commerce during the agreement, emergency readiness, and a required share of repairs at U.S. shipyards. SCF vessels that break coastwise rules would lose payments. Some foreign-built vessels may join through FY2030 under conditions, and Buy America would apply to SCF funds used for U.S. vessel work.

Cargo Preference and Export Mandates

If enacted, exporters would face new vessel rules and targets. Crude oil exports would require rising shares shipped on qualifying U.S. vessels (3% years 1–7; 6% years 8–10; 8% years 11–13; 10% year 14+). Importers of goods made in China would need a growing share on qualifying U.S. vessels (starting 1% in the year five years after enactment and rising to 10% by year 14). The bill would require agencies to be reimbursed when cargo‑preference freight costs exceed 20% of cargo value and require use of federal data for certain export decisions.

100% cargo preference for federal shipments

If enacted, covered federal agricultural export shipments would be required to use U.S.-flag vessels at 100 percent, starting 180 days after enactment. The law would also make some emergency food and foreign assistance programs follow U.S. cargo-preference rules. A new Ship America Office would help agencies and companies comply and offer training, and must report to Congress within a year and then every two years.

Energy Department loan help for maritime projects

If enacted, the bill would add "marine transportation systems" to the Energy Department's section 1703 loan guarantee program. That includes U.S. commercial vessels, shipyards, marine terminals, and port facilities. If projects meet the program's rules, they could get DOE-backed loans, which may lower borrowing costs for qualifying maritime businesses.

Maritime advisory and permitting changes

If enacted, the Maritime Security Advisor and Board would take new appointment roles on the advisory committee and set term limits for private members. The bill would include shipyards and port projects in programmatic environmental reviews to speed permitting. It would also expand oversight to include passenger transportation fares and ban fares below a just and reasonable level.

Sponsors & CoSponsors

Sponsor

Mark Kelly

AZ • D

Cosponsors

  • Todd Young

    IN • R

    Sponsored 4/30/2025

  • Lisa Murkowski

    AK • R

    Sponsored 4/30/2025

  • Tammy Baldwin

    WI • D

    Sponsored 4/30/2025

  • Rick Scott

    FL • R

    Sponsored 4/30/2025

  • John Fetterman

    PA • D

    Sponsored 4/30/2025

  • Richard Blumenthal

    CT • D

    Sponsored 5/20/2025

  • Dan Sullivan

    AK • R

    Sponsored 5/20/2025

  • David McCormick

    PA • R

    Sponsored 7/8/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 7/8/2025

  • Andy Kim

    NJ • D

    Sponsored 10/28/2025

  • Bernie Moreno

    OH • R

    Sponsored 10/28/2025

  • Brian Schatz

    HI • D

    Sponsored 12/1/2025

  • Jon Husted

    OH • R

    Sponsored 12/1/2025

Roll Call Votes

No roll call votes available for this bill.

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