After more than a year of widespread collaboration and fine-tuning, a new bill has been introduced that arguably would offer the most comprehensive remake of the U.S. maritime industry in at least half a century.
On Dec. 19, U.S. Senators Mark Kelly (D-Arizona) and Todd Young (R-Indiana), along with U.S. Reps. John Garamendi (D-California) and Trent Kelly (R-Mississippi), introduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act.
The SIU, along with dozens of other organizations, provided extensive input for the bill, and the union fully supports it.
In a joint news release, the legislators described the SHIPS for America Act as “comprehensive legislation to revitalize the United States shipbuilding and commercial maritime industries. After decades of neglect, the United States has a weakened shipbuilding capacity, a declining commercial shipping fleet that is dwarfed by China, and a diminished ability to supply the U.S. military during wartime. This historic bipartisan proposal would restore American leadership across the oceans by establishing national oversight and consistent funding for U.S. maritime policy, incentivizing domestic shipbuilding, enabling U.S.-flagged vessels to better compete in international commerce, rebuilding the U.S. shipyard industrial base, and expanding the mariner and shipyard workforce.”
SIU Political and Legislative Director Brian Schoeneman noted, “This bill represents a welcome opportunity for Congress to address many of the most pressing issues that impact the modern U.S. Merchant Marine. We have not had a comprehensive Merchant Marine Act in more than half a century. While it’s clear that a bill of this size and scope is unlikely to pass without changes, we’re committed to working with the sponsors and our allies in both the House and Senate to push this legislation forward and get as much of it enacted as possible. Now is the time for America to recommit itself to the goal of having a vibrant and robust maritime industry, and this bill is the first step in the long journey towards a new Merchant Marine Act for the 21st century.”
Mark Kelly, a U.S. Navy veteran and the first U.S. Merchant Marine Academy graduate to serve in Congress, stated, “We’ve always been a maritime nation, but the truth is we’ve lost ground to China, who now dominates international shipping and can build merchant and military ships much more quickly than we can. The SHIPS for America Act is the answer to this challenge. By supporting shipbuilding, shipping, and workforce development, it will strengthen supply chains, reduce our reliance on foreign vessels, put Americans to work in good-paying jobs, and support the Navy and Coast Guard’s shipbuilding needs. I’m excited to introduce this comprehensive, fully-paid-for legislation today alongside my Republican and Democratic colleagues and our partners representing all parts of the industry, and together we’re going to work to get this effort across the finish line.”
Young said, “America has been a maritime nation since our founding, and seapower was a significant contributor to our rise to being the most powerful nation on earth. Unfortunately, the bottom line now is America needs more ships. Shipbuilding is a national security priority and a stopgap against foreign threats and coercion. Our bill will revitalize the U.S. maritime industry, grow our shipbuilding capacity, rebuild America’s shipyard industrial base, and support nationwide workforce development in this industry. This legislation is critical to our warfighting capabilities and keeping pace with China.”
Garamendi, a longtime outspoken backer of American maritime, stated, “For far too long, the United States neglected our maritime industries and the critical role they play in our national and economic security. This ends with the SHIPS for America Act. I have spent over 10 years working to revitalize the U.S. maritime industry in order to strengthen our national economy, create good-paying American jobs, and support our national security during peacetime or war. This bill represents the most substantial and comprehensive approach to have America compete and lead globally, and I’m proud to lead it alongside Senator Kelly, Senator Young, and Representative Kelly. Today, less than 200 oceangoing ships fly the American flag; the SHIPS for America Act will empower our shipyards and [mariners] to uphold our country’s status as a leader in the maritime industry.”
Trent Kelly added, “Strengthening America’s shipbuilding capacity and revitalizing our commercial maritime industry is critical to both our national security and economic resilience. I look forward to continuing to work alongside Senator Mark Kelly, Senator Todd Young, and Congressman John Garamendi to secure our nation’s maritime future.”
As part of the bill’s announcement, SIU President David Heindel called it “an extraordinary piece of legislation that stands to revitalize, strengthen and sustain our nation’s maritime industry. The SHIPS for America Act addresses critical gaps in shipbuilding, maritime workforce development, and the modernization of our commercial fleet. It is a bold step toward ensuring that the United States maintains a robust and competitive maritime presence, which is essential for both economic and national security.”
Highlights of Bill
Among other components, the SHIPS for America Act would:
– Coordinate U.S. maritime policy by establishing the position of Maritime Security Advisor within the White House. This individual would lead an interagency Maritime Security Board tasked with making whole-of-government strategic decisions for how to implement a National Maritime Strategy. The bill also establishes a Maritime Security Trust Fund that would reinvest duties and fees paid by the maritime industry into maritime security programs and infrastructure supporting maritime commerce.
– Establish a national goal of expanding the U.S.-flag international fleet by 250 ships in 10 years by creating the Strategic Commercial Fleet Program, which would facilitate the development of a fleet of commercially operated, U.S.-flagged, American-crewed, and domestically built merchant vessels that can operate competitively in international commerce.
– Enhance the competitiveness of U.S.-flag vessels in international commerce by establishing a Rulemaking Committee on Commercial Maritime Regulations and Standards “to cut through the U.S. Coast Guard’s bureaucracy and red tape that limits the international competitiveness of U.S.-flagged vessels, requiring that government-funded cargo move aboard U.S.-flag vessels, and requiring a portion of commercial goods imported from China to move aboard U.S.-flag vessels starting in 2029.”
– Expand the U.S. shipyard industrial base, for both military and commercial oceangoing vessels, by establishing a 25 percent investment tax credit for shipyard investments, transforming the Title XI Federal Ship Financing Program into a revolving fund, and establishing a Shipbuilding Financial Incentives program to support innovative approaches to domestic ship building and ship repair.
– Accelerate U.S. leadership in next-generation ship design, manufacturing processes, and ship energy systems by establishing the U.S. Center for Maritime Innovation, which would create regional hubs across the country.
– Make historic investments in maritime workforce by establishing a Maritime and Shipbuilding Recruiting Campaign, allowing mariners to retain their credentials through a newly established Merchant Marine Career Retention Program, investing in long-overdue infrastructure needs for the U.S. Merchant Marine Academy, and supporting State Maritime Academies and Centers for Excellence for Domestic Maritime Workforce Training and Education. The bill “also makes long-overdue changes to streamline and modernize the U.S. Coast Guard’s Merchant Mariner Credentialing system.”
Jennifer Carpenter, president of the SIU-affiliated American Maritime Partnership (AMP), said the coalition “applauds the sponsors of the SHIPS for America Act for their focus on the maritime needs of our nation, as AMP believes it is very important for there to be a robust national maritime strategy that promotes the economic, national and homeland security of the nation. We appreciate that the legislation builds on the strong foundation of the Jones Act to further strengthen and revitalize the U.S.-flag maritime industry.”
Transportation Institute President and Chair James L. Henry said that his organization, representing American-flag vessel operators, “is proud to support the SHIPS for America Act. As America enters an era of increased global competition, it is the right time to make significant investments in our U.S.-flagged merchant marine. As we’ve learned throughout history, the U.S.-flag merchant marine can be depended upon by the United States military for assured access to sealift, and trusted by the American people for the secure and reliable movement of goods. This trailblazing legislation will make America an even stronger maritime nation for future generations.”
Editor’s note: Text of the entire bill, additional quotes, and a full list of organizations endorsing the legislation are available on the SIU website.
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