Next Generation Shipping Act
- Sponsor
- Rep. Barragán, Nanette Diaz [D-CA-44]
- Committees
- Transportation and Infrastructure Committee (primary)
- Last action
- Jun 25, 2026
Bottom line
This bill seeks to accelerate the decarbonization of the maritime sector through significant federal investment in zero-emission vessel technology and infrastructure, with a strong emphasis on labor, community, and environmental justice considerations.
What it actually does
This bill directs the Secretary of Transportation to establish the "Next Generation Shipping Innovation Program" to fund the research, design, development, demonstration, and deployment of zero-emission and clean alternative fuel vessels, related technologies, and associated charging or fueling infrastructure. The program prioritizes projects that advance efficiency, reduce noise, offer environmental co-benefits, engage environmental justice communities, and support workforce training, while explicitly prohibiting funding for automated vessel technologies.
Proponents argue
Supporters argue this bill is crucial for addressing climate change by decarbonizing the shipping industry, fostering innovation in green maritime technologies, creating high-quality jobs through labor agreements, and ensuring environmental justice communities benefit from the transition away from fossil fuels. They emphasize the need for federal leadership to drive this transition and maintain U.S. competitiveness in a global green economy.
Opponents contend
Potential opponents might argue that the program's scope is too broad or too restrictive, particularly the prohibition on automated vessel technologies, which some may see as hindering overall efficiency and future innovation. Concerns could also be raised about the cost to taxpayers and the potential for federal intervention to distort market forces in the maritime industry.
The bill is concise and its core provisions are readily understandable, allowing for a quick assessment of its main objectives and mechanisms.
Section 1
Short Title
This section establishes the official short title of the Act as the "Next Generation Shipping Act," which is the common name used to refer to the legislation.
Supporters argue
Supporters argue that a clear and concise short title helps in public discourse and legislative tracking, making the bill more accessible and identifiable.
Critics contend
No specific opposition is typically raised against short titles, as they are standard legislative practice.
Section 2
Key Definitions for the Act
This section defines critical terms used throughout the Act, such as "zero-emission," "clean alternative fuel," "charging infrastructure," "fueling infrastructure," "eligible entity," and "eligible project." These definitions establish the scope and criteria for the program's activities and funding. Notably, "automated" is defined, and later, automated systems are explicitly prohibited from receiving funds.
Section 3(a)-(b)
Establishment of the Innovation Program
This section directs the Secretary of Transportation to create the "Next Generation Shipping Innovation Program." The program's purpose is to support the research, design, development, demonstration, and deployment of zero-emission vessels, retrofitting existing vessels with zero-emission technologies, and developing associated charging or fueling infrastructure. It specifies that the Secretary may use grants, low-interest loans, and loan guarantees as funding mechanisms.
Section 3(c)
Project Prioritization for Funding
This section outlines eight specific criteria the Secretary must use to prioritize eligible projects for funding. These include advancing efficiency and reliability of zero-emission vessels, reducing underwater noise, emphasizing environmental co-benefits, advancing synergies with offshore renewable energy, utilizing project labor or community benefits agreements, advancing environmental justice, and supporting workforce training and development.
Section 3(h)-(i)
Funding Authorization and Exclusion of Automated Vessels
This section authorizes $1,000,000,000 for each of fiscal years 2027 through 2036 to carry out the program, totaling $10 billion over ten years. Crucially, it explicitly prohibits any funds from being spent on the study, design, implementation, or installation of automated vessels, automated vessel operating systems, or automated cargo handling systems.
Section 4
Establishment of Advisory Committee
This section mandates the establishment of the "Next Generation Shipping Advisory Committee" within 180 days of enactment. The committee will comprise at least 15 members representing federal agencies, labor groups, research community, environmental justice organizations, environmental organizations, maritime industry, zero-emissions fuel industry, state governments, and U.S. ports. Its duties include advising the Secretary on technology identification, gap analysis, adoption barriers, screening criteria, and program objectives, and submitting regular reports to Congress.
Requires all laborers and mechanics employed by subgrantees for construction, alteration, installation, or repair work funded under this section to be paid prevailing wages in accordance with the Davis-Bacon Act (subchapter IV of chapter 31 of title 40, United States Code).
Section 3(g)
Why it matters:Standard legislative practice to include labor standards by reference in federal funding programs, but could be overlooked by those focusing solely on the technological aspects.
Case for: Supporters argue this ensures fair wages for workers involved in projects funded by the program, preventing a race to the bottom on labor costs and supporting local economies.
Case against: Some contractors or project developers might argue that prevailing wage requirements increase project costs and administrative burden, potentially slowing down deployment.
Estimated impact: Ensures higher wages for potentially thousands of construction and repair workers over the ten-year program, increasing project labor costs but supporting worker livelihoods.