- U.S. unions call for swift passage of the SHIPS for America Act to secure shipbuilding funds.
- Proposed trust fund would be financed by port fees on foreign-linked vessels, especially from China.
- Bill enjoys bipartisan support but still awaits major legislative action.
A coalition of labor unions is urging Congress to pass the SHIPS for America Act, legislation designed to provide steady funding for U.S. shipbuilding and maritime infrastructure. The unions argue that the country’s shipbuilding capacity is critical to both national security and economic competitiveness.
Push for Maritime Revitalization
The bill seeks to establish a Maritime Security Trust Fund, modeled on existing highway and airport trust funds. This dedicated funding mechanism would ensure reliable investment in shipyards, harbor improvements, and maritime security programs. A key feature of the plan is the introduction of new port fees on foreign-linked vessels, particularly those associated with China, with revenue funneled directly into the trust.
Industry estimates suggest that the fees could generate billions in revenue annually, with major foreign carriers expected to bear the largest costs. Supporters say this approach not only strengthens domestic shipbuilding but also addresses longstanding concerns about unfair trade practices in the global maritime sector.
Bipartisan Support and Challenges
The SHIPS Act enjoys backing from both Republican and Democratic lawmakers, reflecting shared recognition of maritime security as a strategic priority. However, despite its bipartisan sponsorship, the legislation has yet to move forward significantly in Congress. Rulemaking to implement the port fee system also remains pending, creating uncertainty about the timeline for its rollout.
Union leaders stress that consistent and predictable funding is essential for revitalizing America’s shipbuilding industry. They warn that without timely passage of the SHIPS Act, shipyards may continue to struggle with underinvestment, leaving the U.S. vulnerable in an increasingly competitive maritime landscape.
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Source: Reuters
