Maritime Advantage Results In National Economic Resiliency and Security Act

(1) Strategic sealift, made up of civilian, Government, and commercial vessels and mariners, is a critical capability for executing our country’s maritime defense strategy and wartime and peacetime economy.

(2) Ensuring a modern and ready capability will require significant investment, policy prioritization, and the innovation of the American people.

(3) The United States Government must take all measures necessary to ensure that sufficient military, civil, and commercial resources will be available with assured access to meet defense deployment and essential economic activities for our nation in times of crisis, war, or peace.

(4) The United States must be prepared to respond unilaterally to national security threats and understand and plan for contingencies in which treaty allies of the United States must support and augment United States sealift.

(5) Maintaining the capacity to conduct sealift is vital to national security and the American way of life.

(6) A United States-flag commercial shipping fleet crewed with citizen mariners, competitive in domestic and international trade and civil fleets participating in the United States peacetime economy underwrite American security and survival in times of crisis and war.

(1) address the shortage of workers in the maritime sector and stimulate growth in the United States merchant marine and shipbuilding industries by providing funding for a comprehensive marketing, recruiting, and public relations campaign. Expanding and nurturing a robust maritime workforce enhances United States national security and strategic sealift readiness; and

(2) create a more favorable domestic and global maritime environment for United States-flagged shipping, shipbuilding, maritime logistics, maritime workforce, and naval power, contributing to assured access to the world’s oceans free from coercion from strategic competitors.

Not later than 2 years after the date of enactment of this Act, the President shall appoint a Special Adviser to the President for coordinating national maritime affairs and policy, including maintaining and updating the National Maritime Strategy.

The Special Adviser appointed under subsection (a) shall serve as the Chairman of a National Maritime Council, that will be responsible to monitor, report, and advocate for implementation of the National Maritime Strategy.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Navy shall submit to the congressional defense committees a strategy for delivering a rearm at sea capability to the surface fleet of the United States Navy. Such strategy shall include each of the following:

(1) A plan to develop, by not later than three years after the date of the enactment of this Act, the capability to employ transportable rearming mechanism equipment to load missile canisters into MK 41 vertical launch system cells on Navy destroyers operating, including an identification of the current and planned investments of the Navy in technology development to achieve such capability, including the anticipated cost and schedule for such investments.

(2) A plan for the key milestone events and associated dates in the development of such capability.

(3) A plan to coordinate with allies of the United States that use variants of the United States manufactured MK 41 vertical launch system to jointly procure rearm at sea capabilities.

(4) An identification of any courses of action the Secretary is considering other than the plans referred to in paragraphs (1) through (2) to address the gap between the rearm at sea capabilities of the United States and the capabilities of other countries, including the use of uncrewed technologies.

(5) Such other matters as the Secretary determines appropriate.

Not later than 90 days after the date of the enactment of this Act, the Secretary of the Navy shall provide to the congressional defense committees a written briefing on the development of the strategy required under (a).

Part E of subtitle V of title 46, United States Code, is amended by adding at the end the following:

The Secretary of Transportation, in consultation with the Secretary of the Navy, shall assign any vessel that is constructed after the date of enactment of this section with a construction-differential under title V of the Merchant Marine Act, 1936 (46 App. U.S.C. 1151 et seq.) to the Ready Reserve Force component of the National Defense Reserve Fleet.

The Secretary shall seek to enter into an agreement with a vessel construction manager under which the vessel construction manager shall act as the agent for managing construction of the vessel that is the subject of a contract of sale between a purchaser and the Secretary of Transportation entered into under section 502(a) of the Merchant Marine Act, 1936 (46 App. U.S.C. 1152(a)) after the date of enactment of this section.

The Secretary shall require that a vessel construction manager described in paragraph (1) ensures that vessels are built using commercial standards, are militarily useful, and are built using mature, proven, and repeatable design concepts.

The owner of any vessel that is constructed after the date of enactment of this section with a construction differential under title V of the Merchant Marine Act, 1936 (46 App. U.S.C. 1151 et seq.) and that is assigned as a Ready Reserve Force vessel under subsection (a) shall agree to provide effective control of such vessel to the United States during—

(A) a national emergency declared by Presidential proclamation; or

(B) a period for which the President has proclaimed that the security of the national defense makes it advisable.

During a period described in paragraph (1), the owner of a vessel described in such paragraph shall be compensated for the use of the vessel by the United States at the rate the Secretary considers just compensation for the use of the vessel.

The table of chapters for subtitle V of title 46, United States Code is amended by inserting after the item related to chapter 565 the following:

Title V of the Merchant Marine Act, 1936 (46 App. U.S.C. 1151 et seq.) is amended—

(1) in the heading for the title by striking subsidy;

(2) by striking subsidy each place it appears;

(3) in section 501(a) by striking construction-differential subsidies and inserting construction-differentials

Section 109 of title 46, United States Code, is amended—

(1) in the heading for subsection (b) by striking construction-differential subsidies and inserting construction-differentials; and

(2) in subsection (b) by striking construction-differential subsidies and inserting construction-differentials.

Section 50301(e)(3) of title 46, United States Code, is amended by striking subsidy.

Section 53301(a)(2)(A)(i) of title 46, United States Code, is amended by striking subsidy.

Section 53310(b) of title 46, United States Code, is amended by striking subsidy.

Section 53501(8) of title 46, United States Code, is amended by striking subsidy.

Section 53706(a)(4) of title 46, United States Code, is amended by striking subsidy.

Section 53709(b)(2) of title 46, United States Code, is amended by striking subsidy each place it appears.

Section 56303(c) of title 46, United States Code, is amended—

(1) in the subsection heading by striking subsidy; and

(2) by striking subsidy each place it appears.

Section 56503(a)(1) of title 46, United States Code, is amended by striking operating-differential or construction-differential subsidy and inserting operating-differential subsidy or construction-differential.

Section 57105(b) of title 46, United States Code, is amended by striking subsidy.

Section 57502(c) of title 46, United States Code, is amended in the subsection heading by striking subsidy.

Not later than 180 days after the date of enactment of this Act, and every 2 years thereafter, the Secretary of Transportation, in consultation with the Commander of United States Transportation Command and the Secretary of the Navy, shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the subcommittees on Readiness and Seapower and Projection Forces of the Committee on Armed Services of the House of Representatives a report—

(1) outlining a plan for using the construction-differential authorized under title V of the Merchant Marine Act, 1936 (46 App. U.S.C. 1151 et seq.) to supplement the size and readiness of the National Defense Reserve Fleet and to improve national shipbuilding and shipping infrastructure; and

(2) describing ways in which an expanded and creative view of the make-up of the Ready Reserve Force component of the National Defense Reserve Fleet and the construction-differential authorized under title V of the Merchant Marine Act, 1936 (46 App. U.S.C. 1151 et seq.) can be used to ensure Government access to other vessels that are critical to national security, such as icebreakers, oil and natural gas tankers, and commercial shipping vessels using small nuclear reactors.

Not later than 180 days after the date of enactment of this Act, the Secretary of Commerce shall submit to the Committees on Armed Services, Energy and Commerce, and Transportation of the House of Representatives and the Committees on Armed Services and Commerce, Science, and Transportation of the Senate a report outlining how current provisions of law may be applied to incentivize shipping companies to contract with the owners of vessels described in section 56701 of title 46, United States Code (as added by this Act), for the shipment of goods.

Not later than 180 days after the date of enactment of this Act, and every 2 years thereafter, the Secretary of Defense and the Secretary of Homeland Security, in coordination with the Secretaries of Treasury, Defense, and State and the United States Trade Representative and the Director of the Office of Management and Budget, shall submit to the appropriate committees of Congress a report outlining a comprehensive strategy for de-risking the United States maritime domain from the People’s Republic of China and other asymmetric or emerging maritime threats.

Not later than 180 days after the date of enactment of this Act, the heads of all Federal agencies shall submit to Congress a report on ways and means for restricting the flow of capital from the United States to Chinese Communist Party maritime industries, which shall include recommendations for promoting the flow of capital within and between the United States and treaty allies of the United States.

Not later than 180 days after the date of enactment of this Act, the Secretary of Commerce shall submit to Congress, and publish in the Federal Register, a report describing, to incentivize the use of United States-flagged ships and United States ports, any potential—

(1) income tax breaks to merchant mariners and shipyard support workers;

(2) corporate tax expense exemptions for United States companies who ship goods on United States-flagged vessels;

(3) modifying import and export duties to account for inflation and global market conditions;

(4) waiving the ad valorum tax for international trade ships repaired overseas;

(5) standardization of burden sharing agreements to mitigate the cost of merchant mariner pay; and

(6) other rule change that enhances economic and national security.

Not later than 180 days after the date of enactment of this Act, the heads of each Federal agency with jurisdiction over maritime shipping and related shipyard workforces shall study privileging the United States-flagged fleet engaged in international trade and incentivizing United States entities to ship goods using a United States-flagged carrier and maintain and repair vessels in a United States or treaty allied shipyard.

After a study is completed under subsection (a), the head of the respective Federal agency shall take such actions as are necessary to implement any recommendations under the study.

After implementing recommendations under subsection (b), the heads of each Federal agency shall submit to Congress a report—

(1) describing any rules that have been amended to carry out this section; and

(2) requesting additional authorities not already granted that are needed to carry out privileging the United States-flagged fleet described in subsection (a).

The Secretary of Commerce and the Secretary of Transportation, in consultation with the United States Trade Representative, shall study the creation of a Maritime Trust Fund and propose options for resourcing such Fund through new import and export fees that favor United States-flagged shipping.

In carrying out the study under paragraph (1), the Secretary of Commerce and the Secretary of Transportation shall propose a structure for the Fund that is designated to fund Federal support to shipbuilding, shipping, and maritime workforce programs authorized by Congress.

(1) in subsection (a) by striking 50 and inserting 75;

(2) by striking subsection (d) and inserting the following:

Notwithstanding any other provision of law, when the President, the Secretary of Defense, or the Secretary of Transportation declares the existence of an emergency justifying a temporary waiver of this section or section 55314, the President, the Secretary of Defense, or the Secretary of Transportation, following a determination by the Maritime Administrator, acting in the Administrator’s capacity as Director, National Shipping Authority, of the non-availability of qualified United States flag capacity at fair and reasonable rates for commercial vessels of the United States to meet the requirements of this section or section 55314, may waive compliance with such section to the extent, in the manner, and on the terms the Maritime Administrator, acting in such capacity, prescribes, and no other waivers of the requirements of this section or section 55314 shall be authorized.

Section 53106 of title 46, United States Code, is amended—

(1) in subparagraph (B) by adding and at the end; and

(2) by striking subparagraphs (C) through (F) and inserting the following:

(C) $8,500,000 for each of fiscal years 2024 through 2035.

Not later than 180 days after the date of enactment of this Act, the Commander of the United States Transportation Command, in coordination with the Secretary of the Navy and the Administrator of the Maritime Administration, shall devise an exercise to test the effective control of the Maritime Security Fleet under chapter 531 of title 46, United States Code, in case of crisis or war.

After completion of the exercise under paragraph (1), the Commander shall submit to the appropriate committees of Congress a briefing on the results of the exercise under paragraph (1).

Beginning not later than 1 year after the briefing is submitted under paragraph (2), the Commander shall—

(A) biannually drill the Maritime Security Fleet under chapter 531 of title 46, United States Code, to test effective control of such Fleet; and

(B) provide to Congress a briefing after each such drill on the results of such drill.

The Secretaries of Defense, Energy, and Transportation shall foster an innovation incubator program for developing small nuclear reactor technology to extend the range and endurance of maritime vessels.

Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretaries shall provide an annual briefing to the appropriate committees of Congress on the progress of the program established under subsection (a).

In carrying out this section, the Secretaries shall seek funding for the program through the President’s Budget each year, as well as existing appropriations for renewable energy from the Department of Energy and the Infrastructure Reduction Act.

To the extent possible, the Secretaries shall seek to create public-private partnerships for program investment burden sharing.

Not later than 180 days after the date of enactment of this Act, the Administrator of the Maritime Administration shall submit to Congress a report on the status and resources needed to execute and complete the necessary port, shipyard, and other infrastructure reports to support the attainment of finance arrangements for public and private improvement projects meeting the standard of the private and public financial sectors and banks and the Department of Commerce and the Treasury.

The report under subsection (a) shall include—

(1) policy, resource, rulemaking, and authority changes that will strengthen United States shipbuilding, shipping, port and shipyard infrastructure, and maritime workforce to meet a minimum established level of capability and capacity to ensure economic and national security interests of the United States; and

(2) recommendations for how to employ maritime prosperity zones, by facilitating the creation of Federal, State, or local special economic zones or other capital funding package, to be focused on distinct geographic regions that are undeveloped, underdeveloped, or developing, including explaining the sort of financial, regulation, taxation, or other incentives within such zones that would accelerate workforce development, streamline the development of new shipbuilding capacity, and modernize a designated shipyard, port, or other facility or locations in order to support the maritime workforce, United States-flagged international fleet, shipbuilding, and trade related maritime facilities, such as ports.

(1) Emphasize the importance of maritime work for national security.

(2) Showcase the numerous opportunities available in the maritime domain.

(3) Highlight the shortage of workers in the maritime sector.

(4) Promote the excitement, benefits, and appeal of a career in the maritime industry.

(5) Inform potential workers of the points of entry available to join and receive training for such employment, including—

(A) the United States Merchant Marine Academy;

(B) State and regional maritime academies described in chapter 515 of title 46, United States Code;

(C) merchant mariner and shipbuilding labor union training facilities;

(D) merchant mariner and shipbuilding apprenticeship programs approved by the Secretary of Labor; and

(E) shipbuilding industry training programs.

(6) Inform potential workers of sources of financial assistance for training for individuals interested in joining such industry.

(7) Attract workers to the United States merchant marine and shipbuilding sectors.

(1) potential workers interested in maritime careers;

(2) educational institutions and the students of such institutions considering vocational training in maritime fields;

(3) military veterans and individuals seeking career transitions; and

(4) the general public.

Not later than 30 days after the end of each quarter of each fiscal year during the campaigns carried out under this Act, the firm selected under section 4 shall submit to the Administrator of the Maritime Administration and the relevant congressional committees quarterly reports detailing the progress, outreach, and impact of the campaigns, and their effectiveness in increasing applications for employment in the United States merchant marine and shipbuilding sectors.

Not later than 60 days after the conclusion of the campaigns carried out under this Act, the firm selected under section 14 shall submit to the Administrator of the Maritime Administration and the relevant congressional committees a comprehensive final report.

Title 46, United States Code, is amended by adding at the end the following:

It is necessary for the national defense and the development of the domestic and foreign commerce of the United States that the United States have a United States-flag strategic sealift—

(1) sufficient to meet defense deployment and essential economic activities for the United States in times of crisis or war;

(2) sufficient to respond unilaterally to national security threats and ensure economic security resilience for the Nation’s trade; and

(3) built, operated, and maintained during peace, crisis, and war primarily in the United States to protect and ensure national security resiliency and avoid foreign coercion of critical supply chains.

It is the policy of the United States to encourage and aid the development and maintenance of a strategic sealift satisfying the objectives described in subsection (a).

The Secretary of Transportation and the Secretary of Defense shall build, acquire, maintain, coordinate, support, and operate a sufficient and privileged civil, commercial, and military sealift capability.

In establishing sealift capability under this subtitle, the Secretary of Transportation and Secretary of Defense shall continue to operate a sufficient Maritime Security Program, Tanker Security Program, Military Sealift Command, and Ready Reserve Force to provide capacity and resiliency for unilateral United States strategic sealift in peace, crisis, and war.

In maintaining, coordinating, supporting, and operating sealift capability under this subtitle, prioritization for sealift capability under this subtitle during wartime and crisis shall be in the following order:

(1) Commercial United States-flagged vessels.

(2) United States Government owned and operated sealift vessels.

(3) Treaty allied flagged vessels.

(4) Partner state flagged shipping vessels.

In moving through the order of priority under this section, the Secretary of Defense shall determine the timing of moving through such priority.

The Secretaries of Transportation and Defense may acquire, maintain, and repair ships from treaty allies using best practices to be transportable between the Maritime Security Program, Tanker Security Program, Ready Reserve Fleet, and the fleet under this subtitle.

In maintaining, coordinating, supporting, and operating sealift capability under this subtitle, the Department of State shall lead an interagency effort to establish and update agreements with treaty allies of the United States and partners to meet wartime sealift requirements of such allies and partners and augment United States sealift requirements during crisis and war.

Not later than March 1, 2025, the Secretary of State, in coordination with the Secretary of Defense, shall provide to Congress an evaluation of the status of treaty allies sealift assurances under subsection (a), including an assessment of international agreements described in such subsection and recommendations for updating such agreements to reflect the global security environment.

Not later than March 1, 2025, the Secretary of Transportation and Secretary of Defense shall brief Congress on the capacity of the United States shipbuilding industry to meet the requirements to build, maintain, and repair the strategic sealift fleet described under this subtitle.

In briefing Congress under subsection (a), the Secretary of Transportation and Secretary of Defense shall include an assessment and recommendations for improving the critical shipbuilding infrastructure, workforce recruitment, development and retention, and critical supply chains and critical repair parts of the United States, including ways in which allies and partners can contribute.

Not later than March 1, 2025, the Secretary of Transportation, in coordination with the Secretaries of Homeland Security and Commerce and the Federal Maritime Commission, shall brief Congress on available options for establishing privileges for the United States-owned commercial fleet participating in the international ocean-based trading market that will sustain and significantly grow the United States-flagged fleet.

In briefing Congress under subsection (a), the Secretary shall provide recommendations for and potential incentives, including a wide spectrum of tax and credit incentives, for civil, commercial, and government entities, including allies and partners, to ship goods on United States-flag fleet.

Not later than March 1, 2025, the Secretary of Transportation, in coordination with the Secretary of Commerce and the Director of the Office of Management and Budget, shall submit to Congress a report including ways to ensure the sealift fleet under this subtitle is privileged in regulation, taxation, fees, and policy compared to foreign vessels conducting trade with a United States domiciled entity, while remaining consistent with the international obligations of the United States.

In submitting the report under subsection (a), the Secretary of Transportation shall include options for regulating foreign flagged shipping trade with the United States in order to sustain and grow the Maritime Security Program, Tanker Security Program, and other commercial United States-flag ships that comprise the sealift fleet under this subtitle.

Not later than March 1, 2025, the Secretary of Defense shall submit to Congress a report on requirements to maintain, improve, or grow the Maritime Security Program, Tanker Security Program, and Ready Reserve Force, the sealift fleet under this subtitle over the decade following the date of enactment of this section.

The report under subsection (a) shall include a plan for making the Ready Reserve Force active in international trade through a public-private partnership that enables financing, building, manning, operating, maintaining, and repairing the program vessels, while guaranteeing assured effective control in times of crisis or war.

Not later than March 1, 2025, the Secretary of Transportation shall submit to Congress a report that includes a plan to fund and phase in a domestic build requirement for the Maritime Security Program, Tanker Security Program, Ready Reserve Fleet, and the sealift fleet under this section, considering the full range of domestic and treaty Ally civil, commercial, and government partner arrangements and resource sharing.

Not later than March 1, 2026, and every two years thereafter, the Secretaries of Defense, Homeland Security, Commerce, and Transportation shall provide Congress an assessment on—

(1) the readiness and sufficiency of America’s marine infrastructure, shipping industry, shipbuilding industry, and United States-flagged, owned, and operated fleets to meet strategic sealift requirements and operate in a contested environment;

(2) the vulnerability of the United States’ economy to coercion or control from our nation’s strategic competitors through the ocean-going trades; and

(3) critical infrastructure vulnerabilities in America’s maritime transportation system, to include ports, shipyards, repair yards, inland waterways, and the domestic fleet, and foreign investment in maritime infrastructure, and how to de-risk the maritime sector for such vulnerabilities.

Not later than March 1, 2026, and every two years thereafter, the Secretary of State shall provide Congress an assessment on—

(1) the current arrangements and agreements with treaty allies for access to the global maritime transportation infrastructure such as ports, harbors, and waterways; and

(2) the current assurances, arrangements, and agreements with Treaty allies to augment United States sealift capabilities in times of crisis and war.

The analysis for Title 46, United States Code, is amended by adding at the end the following:

(1) $10,000,000 for a targeted campaign promoting the virtues of work in the United States Merchant Marine for the purpose of sailing in international trade, including Military Sealift Command mariner positions, highlighting the critical need for skilled workers in this sector, and to attract workers to this sector.

(2) $5,000,000 for a targeted campaign promoting the virtues of work in the United States shipbuilding industry, highlighting the critical need for skilled workers in this sector, and to attract workers to this sector.

(1) $100,000,000 may be for the cost (as such term is defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)) of loan guarantees under the program; and

(2) $3,020,000 may be used for administrative expenses relating to loan guarantee commitments under the program.

(1) the Committee on Appropriations, the Committee on Armed Services, and the Committee on Transportation and Infrastructure of the House of Representatives; and

(2) the Committee on Appropriations, the Committee on Armed Services, and the Committee on Commerce, Science, and Transportation of the Senate.