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S. 407·119th Congress·Introduced Feb 5, 2025

Ensuring Coast Guard Readiness Act

IntroducedTransportation and Public WorksSubstantive
View bill text
Sponsor
Sen. Lee, Mike [R-UT]
Committees
Commerce, Science, and Transportation Committee (primary)
Last action
Feb 5, 2025

Bottom line

This bill creates a conditional pathway for the U.S. Coast Guard to procure vessels from allied foreign shipyards, aiming to enhance readiness and potentially reduce costs while maintaining national security safeguards.

What it actually does

This bill amends Title 14 of the U.S. Code to allow the President to authorize exceptions to the existing prohibition on constructing Coast Guard vessels in foreign shipyards. These exceptions are contingent on a presidential determination of national security interest, the foreign shipyard being located in a NATO member country or an Indo-Pacific treaty ally, and the cost being less than domestic construction. It also requires congressional notification and a certification that the shipyard is not owned or operated by a Chinese company.

Proponents argue

Supporters argue that this bill provides necessary flexibility for the Coast Guard to address potential shipbuilding capacity constraints in domestic shipyards, accelerate fleet modernization, and leverage cost efficiencies from allied nations. They contend it strengthens alliances by fostering defense industrial cooperation and ensures the Coast Guard can meet its critical missions more effectively by expanding procurement options, all while including safeguards against adversarial nations.

Opponents contend

Opponents might argue that this bill undermines the domestic shipbuilding industry, potentially leading to job losses and a degradation of critical industrial capabilities within the United States. They may also raise concerns about potential security risks, intellectual property transfer, and the long-term strategic implications of relying on foreign entities for essential defense assets, even from allies.

The bill is very short and can be read and understood quickly, allowing ample time for informed evaluation.

Section 2(a)

Authorization of Foreign Shipyard Construction for Coast Guard Vessels

prominently featuredstraightforward

This provision amends existing law to permit the President to allow the construction of Coast Guard vessels, or major components, in foreign shipyards under specific conditions. These conditions include a presidential determination of national security interest, the shipyard being in a NATO or Indo-Pacific treaty ally country, and the cost being less than domestic construction. It also requires a 30-day congressional notification period and a certification from the Coast Guard Commandant that the shipyard is not owned or operated by a Chinese company.

GroupImpactMechanismScale
GroupU.S. Coast GuardImpactIncreased flexibility in vessel procurement, potential for faster fleet modernization, potential cost savings.MechanismAllows procurement from a wider range of shipyards.ScalePotentially impacts the entire Coast Guard fleet acquisition strategy.
GroupDomestic U.S. Shipbuilding IndustryImpactPotential for increased competition for Coast Guard vessel construction, possibly leading to reduced contracts.MechanismOpens up competition to foreign shipyards.ScaleCould impact revenue and employment in specific shipyards.
GroupAllied Nations (NATO, Indo-Pacific treaty allies)ImpactPotential for increased defense industrial cooperation and economic benefits from U.S. contracts.MechanismShipyards in these countries become eligible for Coast Guard contracts.ScaleCould be significant for specific allied shipyards.
GroupU.S. TaxpayersImpactPotential for cost savings in Coast Guard vessel acquisition.MechanismMandates lower cost for foreign construction compared to domestic.ScaleCould result in millions or billions in savings over time.

Supporters argue

Supporters argue this provision is crucial for enhancing Coast Guard readiness by diversifying shipbuilding options, potentially accelerating the delivery of new vessels, and achieving cost efficiencies. They highlight the strategic benefit of strengthening alliances through defense industrial base collaboration and the explicit safeguards against Chinese influence.

Critics contend

Critics may contend that this provision risks weakening the domestic shipbuilding industrial base, which is vital for national security and economic stability. They might argue that relying on foreign shipyards, even allied ones, could introduce supply chain vulnerabilities and reduce American jobs, despite the cost-saving and alliance-building arguments.

Tradeoffs

The provision balances the immediate needs for Coast Guard readiness and potential cost savings against concerns for maintaining a robust domestic shipbuilding industrial base and potential long-term strategic dependencies. It also navigates the tension between leveraging allied capabilities and ensuring national security through domestic control.

FOUND

This subsection makes a conforming amendment to Section 8679(a) of title 10, United States Code, by inserting a reference to the new exception created in title 14. This ensures consistency across relevant statutes regarding naval vessel construction.

Section 2(b)

Why it matters:This is standard legislative practice to ensure legal consistency and proper integration of new statutory language, preventing conflicting interpretations between different sections of U.S. Code related to vessel construction.

Case for: Ensures legal clarity and prevents conflicting interpretations between different sections of U.S. Code related to vessel construction, thereby streamlining legal and administrative processes.

Case against: No specific case against a conforming amendment, as it merely updates existing law to reflect the new policy without introducing new substantive policy.

Estimated impact: Ensures legal coherence; no direct fiscal or operational impact beyond clarifying legal authority and preventing ambiguity.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

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