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Garamendi, Kelly, Senators Young and Kelly, Introduce SHIPS for America Act to Revitalize US Shipbuilding and Commercial Maritime Industries

December 19, 2024
WASHINGTON, DC— Today, Representative John Garamendi (D-CA-08) introduced the SHIPS for America Act alongside Senator Mark Kelly (D-AZ), Senator Todd Young (R-IN), and Rep. Trent Kelly (R-MS-01) in response to the urgent need to bolster America's maritime industry. The bill aims to revitalize the U.S. Merchant Marine to transport vital goods and military cargo during times of conflict while reinforcing American supply chains in peacetime. 
Currently, about 80 U.S.-flagged ships are engaged in international commerce compared to over 5,500 China-flagged vessels. U.S. shipyards' growing industrial base cannot produce oceangoing vessels at scale. In addition to this supply chain gap, there is an increasing demand for qualified mariners. This legislation entails a comprehensive strategy to address these critical disparities by seeking to ensure national oversight and consistent funding for the maritime industry, enhance the competitiveness of U.S.-flagged vessels, rebuild the U.S. shipyard base, and expand efforts to recruit, train, and retain skilled mariners and shipyard workers. 
“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 ten 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, and Senator Young. Today, less than 200 oceangoing ships fly the American flag, the SHIPS for America Act will empower our shipyards and marine merchants to uphold our country’s status as a leader in the maritime industry.” - Congressman John Garamendi (D-CA-08)
With China’s growing influence in the global maritime sector, strengthening the U.S. Merchant Marine is essential for maintaining U.S. dominance in international commerce. In times of conflict, the U.S. Merchant Marine will be vital for transporting goods and military cargo, while in peacetime, it will fortify supply chains and ensure economic resilience. The introduction of this bill represents a strategic effort to rebuild the U.S. maritime industry, securing both national security and global competitiveness. 
The SHIPS for America Act contains the following legislation authored or co-sponsored by Representative Garamendi:  
  • H.R.9348, Justice for Victims of Foreign Vessel Accidents Act 
  • H.R.2373, Rebuilding the United States-Flag International Fleet Act 
  • H.R.874, Federal Ship Financing Improvement Act 
  • H.R.6724, Energizing American Shipbuilding Act of 2023  
  • H.R.1044, Maritime Fuel Tax Parity Act  
 
A section-by-section summary of the bill can be found here
 
Background:  
The SHIPS for America Act would:  
  • Coordinate U.S. maritime policy by establishing the position of Maritime Security Advisor within the White House, who 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, domestically built merchant vessels that can operate competitively in international commerce.  
  • Enhance the competitiveness of U.S.-flagged vessels in international commerce by establishing a Rulemaking Committee on Commercial Maritime Regulations and Standards to cut through bureaucracy and red tape within the Coast Guard 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 shipbuilding 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 Coast Guard’s Merchant Mariner Credentialing system.  
 
See what maritime leaders and stakeholders are saying about the SHIPS for America Act:  
“The US maritime eco-system, which includes, but is not limited to, the US flag Merchant Marine, has suffered from over three quarters of century of neglect, mismanagement, and consequent dramatic decline. This has resulted in a serious national and economic security vulnerability, especially compared to the corresponding robust Chinese national effort to dominate the maritime domain.  That vulnerability has remained hidden, and ignored,  until now.  This legislation is a bold first step in reversing that vulnerability.  It took over 75 years to fall to our current state of affairs, and it will likewise take time and a dedication of national will to remedy it, but the stakes are too high and consequences of failure too grave to continue on the current path.  This essential legislation sets the policy course upon which we must embark to actually be the world’s foremost maritime power that is our nation’s birthright,” said U.S. Marine Management President Stephen M. Carmel.  
“This legislation will create the favorable environment needed by the builders, investors, and technologists who stand ready to strengthen America’s maritime industry. This thoughtfully crafted bill combines the vibes of re-vitalization with tangible tax incentives that define reality for industry,” said Blue Water Autonomy Co-Founder and Chief Strategy Officer Austin Gray.  
“The American Maritime Congress (AMC) enthusiastically supports the SHIPS for America Act as a cornerstone of our nation's future national and economic security. For nearly half a century, AMC has advocated and educated the American public and its political leadership on the critical role of the U.S. merchant marine -- the SHIPS for America Act is a historic opportunity for our great nation to once again prosper while increasing national security,” said American Maritime Congress President Fair Kim.  
“The Seafarers International Union wholeheartedly supports the Ships for America Act, 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. In my 51 years of working in this industry, I have not seen any legislation as comprehensive and impactful as the Ships for America Act. I urge labor and industry to join us in supporting this long-overdue bill, as it not only honors the legacy of our maritime industry but also paves the way for its future growth and sustainability,” said Seafarers International Union President David Heindel.  
“The carriers, unions and associations belonging to the USA Maritime Coalition strongly support the SHIPS for America Act.  This comprehensive maritime policy initiative will ensure  our country has the U.S.-flag shipping capability and the American mariners needed to both support the foreign policy and national security objectives of the Department of Defense and to enhance and protect our nation's economic security by increasing  the carriage of America's foreign trade on U.S.-flag commercial vessels,” said R. Christian Johnsen, Chair, USA Maritime.  
“The Masters, Mates & Pilots strongly supports the SHIPS for America Act.  This comprehensive and pragmatic maritime policy initiative will create and support jobs for American mariners, ensuring that our country has the maritime manpower needed to protect and enhance our nation's economic and military security,” said Captain Don Marcus, President, International Organization of Masters, Mates & Pilots (MM&P).  
“On behalf of our U.S.-flag shipping company members, I want to express our strong support for the bipartisan SHIPS for America Act.  This legislation, the most comprehensive and far-reaching maritime policy initiative to be considered by Congress in decades, will revitalize  America's maritime industry, thereby enhancing its role as our nation's fourth arm of defense.  We urge all Members of Congress concerned about the growing influence and domination of China in the international shipping arena to join with the sponsors of this legislation in order to strengthen and protect America's economic and military security,” saidC. James Patti, President, Maritime Institute for Research and Industrial Development (MIRAID).  
“The Navy League applauds the introduction of the SHIPS for America Act, a landmark legislative achievement that will comprehensively meet the needs of the U.S. merchant marine and bolster our shipbuilding industrial base. In today's global threat environment, arguably the most perilous since the end of the Cold War, the United States must not only maintain the finest Navy, Marine Corps, and Coast Guard on the seas, but also ensure a robust U.S.-flag merchant marine and a resilient shipbuilding industrial base. These elements are crucial for safeguarding our national and economic security in the event of large-scale military conflict. The SHIPS for America Act addresses these vital considerations and reaffirms that America is, and always will be, a maritime nation,” Navy League CEO Mike Stevens.  
“The International Propeller Club is a steadfast advocate for the SHIPS for America Act.  Our nation’s maritime industry is at a critical crossroads.  This comprehensive maritime policy initiative will protect and enhance foreign policy, national security, and economic prosperity through increased U.S.- flag shipping capability and a revitalization of the domestic shipbuilding industry,” said Maria Conatser, International President, International Propeller Club.  
“The Maritime Accelerator for Resilience authors of ZERO POINT FOUR strongly endorse the Ships for America Act to revitalize the U.S. international fleet, U.S. shipbuilding, and the U.S. maritime workforce.  Our national maritime security includes national security, economic security, food and energy security, climate security and American workforce security.  This legislation begins to address our sad state of having only 180 seagoing U.S. flagged commercial ships compared to the 55,000+ global foreign owned, foreign crewed, foreign government-controlled ships (0.4%).  Enacting the SHIPS for America Act will motivate U.S. private investment and public focus to capture enormous untapped opportunities and improve our maritime competitiveness” saidJim and book co-authors, retired USCG (confirming).  
“At a time of increasing national security maritime threats from China and other actors, the U.S. must take decisive action to support our critical maritime industry and grow the next generation of licensed civilian mariners who are key to our economic and national security.  The SHIPS for America Act is a critical piece of legislation that will strengthen the U.S. shipbuilding industrial base, make us a stronger nation in times of war and in times of peace, and allow the United States to project power at the time and place of our choosing. I applaud this bipartisan effort that will ensure our global maritime leadership and presence,” said Vice Adm. (Ret.) Michael J. Duont, JD, Interim President, The California State University Maritime Academy.  
“The SHIPS for America Act is a transformative piece of legislation that will bolster the United States’ commercial competitiveness and military readiness on the high seas. Not only will this bipartisan bill protect existing jobs in maritime and allied trades, but it will lead to a renaissance of the American maritime workforce. The Maritime Trades Department, AFL-CIO offers our full support of this legislation,” said Mark A. Clements, Jr., Executive Secretary Treasurer of the Maritime Trades Department, AFL-CIO.  
“Senator Kelly, Senator Young, and Congressman Garamendi deserve recognition for their work on this legislation and appreciation for their leadership on this issue.  This is the first comprehensive maritime policy legislation in many years, and it offers tangible assistance to all sectors of the maritime industry with the goal of expanding the U.S. Flag Ocean-going fleet.  If enacted, the legislation would support major recapitalization of the shipbuilding infrastructure in the United States and provide substantial incentives for the purchase of U.S.-built vessels.  It would have a long-term positive impact on Philly Shipyard and other shipbuilders in the United States,” said Philly Shipyard, Inc.  
“The U.S.-flag carriers of American Maritime Officers Service (AMOS) strongly support the SHIPS for America Act. This critical legislation introduced by Senator Mark Kelly and Senator Todd Young will bolster the U.S. Merchant Marine fleet, ensuring the security and safety of maritime operations vital to national defense and economic stability. By expanding the number of U.S.-flagged vessels, the SHIPS for America Act will strengthen our maritime workforce and enhance our nation’s readiness for global challenges. We commend Senator Kelly and Senator Young for their leadership and dedication to a strong American maritime industry,” said theAmerican Maritime Officers Service.  
 

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