Section 1. Short title
This Act may be cited as the Ensuring Naval Readiness Act.
Section 2. Exception to prohibition on construction of naval vessels in foreign shipyards
Section 8679 of title 10, United States Code, is amended—
(1) in subsection (a), by striking subsection (b) and inserting subsections (b) and (c);
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new subsection (c):
(1) Subsection (a) shall not apply with respect to the construction of a naval vessel otherwise covered by that subsection if—
(A) the foreign shipyard concerned is located in—
(i) a North Atlantic Treaty Organization member country; or
(ii) a country in the Indo-Pacific region that is party to a mutual defense treaty with United States; and
(B) the cost of the construction concerned is less than the cost would be if such construction occurred in a domestic shipyard.
(2) Before the construction of a naval vessel, or a major component of the hull or superstructure of a naval vessel, may commence at a foreign shipyard under this subsection, the Secretary of the Navy shall submit to Congress a certification that the foreign shipyard is not owned or operated by a Chinese company or a multinational company domiciled in the People’s Republic of China.