SHIPS for America Act Introduced to Revitalize U.S. Shipbuilding

• Representative John Garamendi (D-CA-08) introduced the SHIPS for America Act, supported by Senators Mark Kelly (D-AZ), Todd Young (R-IN), and Representatives Trent Kelly (R-MS-01), and Michael Waltz.
• The bill is a strategic response to strengthen America’s maritime industry, ensuring that the U.S.
• Merchant Marine plays a critical role in transporting essential goods and military cargo in times of conflict and reinforcing American supply chains during peacetime.

On December 19, 2024, 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.

Background

Currently, the U.S. is significantly outpaced by other nations, particularly China, with only about 80 U.S.-flagged ships engaged in international commerce compared to over 5,500 China-flagged vessels. The legislation seeks to address the gaps in ship production and the shortage of qualified mariners. It proposes a comprehensive strategy for revitalizing the U.S. maritime industry, enhancing the competitiveness of U.S.-flagged vessels, rebuilding the U.S. shipyard base, and expanding efforts to recruit, train, and retain skilled workers in the maritime sector.

Key Points

The SHIPS for America Act contains several critical provisions aimed at revitalizing the U.S. maritime industry:

• Maritime Security Advisor: Establishing this position within the White House to lead the interagency Maritime Security Board and develop a National Maritime Strategy.
• Expansion of U.S.-Flagged Fleet: Aiming to add 250 ships to the U.S.-flagged international fleet within 10 years through the Strategic Commercial Fleet Program.
• Competitiveness of U.S.-Flagged Vessels: The bill mandates that government-funded cargo and a portion of goods imported from China be transported on U.S.-flagged vessels.
• Shipyard Growth: The act proposes significant financial incentives for shipyards, including a 25% tax credit for investments and a revolving fund for shipbuilding.
• Workforce Development: The bill includes provisions to enhance the U.S. maritime workforce through a recruiting campaign and by streamlining mariner credentialing.

Quotes from Supporters

Several maritime industry leaders and organizations have expressed strong support for the SHIPS for America Act, including:

• Stephen M. Carmel, President of U.S. Marine Management: “This legislation is a bold step in reversing the vulnerability caused by decades of neglect and mismanagement.”
• David Heindel, President of the Seafarers International Union: “The SHIPS for America Act addresses critical gaps in shipbuilding, workforce development, and fleet modernization.”
• Mike Stevens, CEO of the Navy League: “The U.S. must maintain a robust U.S.-flag merchant marine, which is essential for safeguarding our national and economic security.”

The SHIPS for America Act represents a bold comprehensive effort to restore the U.S. maritime industry, ensuring national security and economic competitiveness. The bill addresses critical infrastructure gaps, strengthens the maritime workforce, and provides strategic incentives to expand and modernize the U.S.-flagged fleet, positioning America as a global leader in maritime trade and defense capabilities.