Bill Summary
The "Ensuring Coast Guard Readiness Act" is a legislative proposal that seeks to amend existing laws regarding the construction of Coast Guard vessels. Specifically, it aims to authorize exceptions to the current prohibition on building these vessels in foreign shipyards.
Key provisions include:
1. **Presidential Authorization**: The President can permit construction in foreign shipyards if it aligns with U.S. national security interests, provided that the shipyard is located in a NATO member country or an Indo-Pacific nation with a mutual defense treaty with the U.S. Additionally, the construction costs must be lower than if carried out in a domestic shipyard.
2. **Congressional Oversight**: The President is required to notify Congress of such determinations, and no contracts for construction can be finalized until 30 days after Congress receives this notice.
3. **Certification Requirement**: Before starting construction in a foreign shipyard, the Commandant of the Coast Guard must certify that the shipyard is not owned or operated by a Chinese company or a multinational company based in China.
Overall, this legislation aims to enhance the readiness of the Coast Guard while ensuring that national security and economic interests are considered in the decision-making process.
Possible Impacts
The "Ensuring Coast Guard Readiness Act" introduces provisions that could affect various stakeholders in several ways. Here are three examples:
1. **Impact on Domestic Shipbuilding Industry**: The legislation permits the construction of Coast Guard vessels in foreign shipyards under certain conditions, which could potentially lead to a decrease in demand for domestic shipyards. If the cost of construction is significantly lower in foreign shipyards, U.S. shipbuilders may face increased competition, which could lead to job losses and reduced economic activity in regions that rely on shipbuilding.
2. **National Security Considerations**: The ability for the President to authorize construction in foreign shipyards allows for flexibility in responding to national security needs. This could enhance the readiness of the Coast Guard to address immediate threats or challenges, potentially leading to improved maritime security and safety. However, it may also raise concerns about the reliance on foreign entities for critical defense capabilities, which could affect public perception of national security.
3. **Economic Implications for NATO and Indo-Pacific Partners**: By allowing construction in foreign shipyards located in NATO countries or mutual defense treaty partners, the bill may strengthen economic ties and defense cooperation with these nations. This could lead to increased foreign investment and collaboration in defense projects, benefiting economies in those regions. Conversely, it may also lead to the perception that the U.S. is prioritizing foreign partnerships over domestic industry, which could generate political discourse regarding the balance between cost-effectiveness and national economic interests.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4952 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4952
To authorize an exception to the prohibition on the construction of
Coast Guard vessels in foreign shipyards, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 12, 2025
Mr. Kennedy of Utah introduced the following bill; which was referred
to the Committee on Transportation and Infrastructure, and in addition
to the Committee on Armed Services, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To authorize an exception to the prohibition on the construction of
Coast Guard vessels in foreign shipyards, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ensuring Coast Guard Readiness
Act''.
SEC. 2. EXCEPTION TO PROHIBITION ON CONSTRUCTION OF COAST GUARD VESSELS
IN FOREIGN SHIPYARDS.
(a) In General.--Subsection (b) of section 1151 of title 14, United
States Code, is amended to read as follows:
``(b)(1) The President may authorize exceptions to the prohibition
in subsection (a) when the President determines that it is in the
national security interest of the United States to do so, provided
that--
``(A) the foreign shipyard concerned is located in a North
Atlantic Treaty Organization member country or a country in the
Indo-Pacific region that is party to a mutual defense treaty
with the 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) The President shall transmit notice to Congress of any such
determination, and no contract may be made pursuant to the exception
authorized until the end of the 30-day period beginning on the date the
notice of such determination is received by Congress.
``(3) Before the construction of a Coast Guard vessel, or a major
component of the hull or superstructure of a Coast Guard vessel, may
commence at a foreign shipyard pursuant to this subsection, the
Commandant 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.''.
(b) Conforming Amendment.--Section 8679(a) of title 10, United
States Code, is amended by inserting ``and section 1151(b) of title
14'' after ``in subsection (b)''.
<all>