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.
- Sponsor
- Sen. Murkowski, Lisa [R-AK]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- May 1, 2025
Bottom line
This bill introduces conditional flexibility for the Coast Guard to procure vessels from allied foreign shipyards, aiming to address national security needs, cost efficiencies, and timeline constraints while maintaining some safeguards.
What it actually does
This bill amends existing law (14 U.S.C. 1151) to create specific exceptions to the general prohibition on constructing Coast Guard vessels in foreign shipyards. It allows the President to authorize foreign construction if it's in the national security interest and meets strict criteria regarding cost, timeline, allied shipyard affiliation, and demonstrated capacity. Additionally, it permits the Secretary to acquire completed vessels from allied foreign shipyards, provided a warranty agreement is in place.
Proponents argue
Proponents argue that this bill provides crucial flexibility for the Coast Guard to acquire vessels more efficiently and cost-effectively, especially when domestic shipyards face capacity constraints or higher costs. They emphasize the national security interest clause, ensuring the U.S. can leverage allied shipbuilding capabilities to meet urgent operational needs and maintain maritime presence, particularly in strategic regions like the Indo-Pacific.
Opponents contend
Opponents would likely argue that this bill undermines the domestic shipbuilding industry, potentially leading to job losses and a degradation of critical industrial capacity. They might raise concerns about national security risks associated with relying on foreign entities for defense assets, even allies, and question the long-term economic impact of shifting construction overseas.
The bill is very short and straightforward, making it highly accessible for any reader to understand its core changes.
Section 1(2), amending 14 U.S.C. 1151(b)(1)
Presidential Authority for National Security Exceptions
This provision allows the President to permit the construction of Coast Guard vessels or major components in foreign shipyards if it's deemed in the national security interest. Before doing so, the President must notify Congress 30 days in advance and certify that the foreign shipyard is a NATO member or Indo-Pacific defense treaty party, offers lower costs, a faster timeline (over 18 months faster than domestic), and has a proven track record of delivering mission-capable vessels cost-effectively and within reasonable timelines.
Supporters argue
Supporters argue this exception is vital for national security, allowing the U.S. to address urgent Coast Guard needs by leveraging allied shipbuilding capacity when domestic options are too slow or expensive, especially for maintaining presence in critical regions like the Indo-Pacific.
Critics contend
Critics contend this provision could weaken the domestic shipbuilding industrial base, making the U.S. more reliant on foreign capabilities for essential defense assets and potentially compromising long-term national security and economic resilience.
Tradeoffs
The provision balances the immediate need for cost-effective and timely vessel acquisition for national security purposes against the long-term goal of maintaining a robust domestic shipbuilding industry and associated jobs.
Section 1(2), amending 14 U.S.C. 1151(b)(2)
Secretary's Authority to Acquire Completed Foreign Vessels
This provision permits the Secretary to acquire already completed vessels from foreign shipyards, provided those shipyards are located in NATO member countries or countries with an active U.S. defense treaty in the Indo-Pacific region. Additionally, the government of the foreign country must enter into a warranty agreement with the U.S. Government for the acquired vessel.