Garamendi Bill to Provide Federal Financing for Ship Repair and Retrofits at Commercial Shipyards like Mare Island Dry Dock
WASHINGTON, DC—Today, Representative John Garamendi (D-CA-08) reintroduced the “Federal Ship Financing Improvement Act” (H.R.874), which will provide new federal loans and loan guarantees for repairs and retrofits of U.S.-flagged civilian vessels in domestic commercial shipyards, like Mare Island Dry Dock.
Under current law, the U.S. Maritime Administration’s (MARAD) Federal Ship Financing Program provides low-interest federal loans and loan guarantees for new vessel construction in domestic commercial shipyards. Garamendi’s bill would authorize the Maritime Administration to provide financing for vessel repairs and retrofits of civilian vessels in domestic shipyards, like Mare Island Dry Dock.
“As Vallejo’s Congressman, I am securing new federal resources to support the revitalization of Mare Island and expansion of the shipyard. My bill would unlock billions in new federal financing for repair work and vessel retrofits on civilian vessels at commercial shipyards, like Mare Island Dry Dock. As we continue working to build out Mare Island’s repair work for the Coast Guard and potentially other military contracts, we need every federal tool in the toolbox. That’s exactly what my bill does,” said Garamendi.
Garamendi is a senior Democratic Member of the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation, which oversees the Maritime Administration and Federal Ship Financing Program. Garamendi served as the top Democrat of the Subcommittee from 2015 to 2018. Since 2019, Garamendi has served as the top Democrat on the House Armed Services Subcommittee on Readiness, which oversees Navy ship repair and military shipyards.
In March 2022, Garamendi announced a historic $13 million investment by Mare Island Dry Dock company to double its workforce as the shipyard pursues new work repairing vessels for the U.S. Coast Guard and other military contracts.
In December 2022, Garamendi secured a provision in the Water Resources Development Act of 2022 (Division H of Public Law 117-263) signed by President Biden directing the U.S. Army Corps of Engineers to complete a feasibility study with the City of Vallejo on deepening the Mare Island Strait Channel, increasing federal investment to support the redevelopment of Mare Island and the shipyard.
In 2019, Garamendi’s “Strengthening Buy America for Small Shipyard Grants Act” with U.S. Senator Tammy Baldwin (D-WI) was enacted in the National Defense Authorization Act for Fiscal Year 2020 (Public law 116-92). Garamendi’s law requires that all shipyard improvement projects funded by the Maritime Administration’s Small Shipyard Grant Program use construction materials produced or manufactured in the United States.
Garamendi’s “Federal Ship Financing Improvement Act” (H.R.874) currently awaits action by the House Committee on Transportation and Infrastructure, of which Garamendi is a senior Democratic member.