May 8th, 2025 – A revised legislative package aimed at revitalizing the domestic maritime industry calls for the creation of a 250-vessel U.S.-flagged cargo fleet and provides federal funding to support shipbuilding efforts.
Reintroduced Wednesday at a press conference, the bipartisan SHIPS for America Act is co-sponsored by Senators Mark Kelly (D-AZ) and Todd Young (R-IN), along with Representatives Trent Kelly (R-IN) and John Garamendi (D-CA). Initially introduced in December 2024, the legislation seeks to strengthen U.S. sealift capabilities, rebuild shipbuilding capacity, and cultivate a skilled maritime workforce.
In the Senate, the proposal will be split into two parts: the SHIPS for America Act and the Building SHIPS in America Act.
A key element is the Strategic Commercial Fleet Program, which aims to establish a fleet of 250 U.S.-flagged vessels engaged in international trade, with a focus on tankers. The program would offer financial support to offset capital and operating costs, incentivizing the construction and operation of U.S.-built, -flagged, and -crewed ships. The U.S. currently has 80 active U.S.-flag merchant vessels.
The legislation also strengthens cargo preference rules by increasing the share of U.S. government cargo required to be shipped on U.S.-flagged vessels from 50% to 100%. It mandates that within 15 years, 10% of all cargo imported from China must also be carried on U.S.-flagged ships. Additional provisions include subsidies for U.S. agricultural exports and a requirement for U.S. ports to prioritize U.S.-flagged vessels over foreign competitors.
To support shipbuilding, the bill proposes $250 million in annual funding through 2035 and $100 million per year for small shipyards. However, this investment is relatively modest, as a neopanamax container ship—capable of carrying 15,000 TEUs—costs between $150 million and $160 million to build.
The legislation also offers generous tax incentives: a 33% investment tax credit for U.S. vessel construction and a 25% credit for shipyard infrastructure improvements.
To address maritime workforce needs, the bill includes public service loan forgiveness for merchant mariners, enhanced funding for maritime academies, and the creation of a Maritime Career Retention Program.
The original version of the bill also proposed the creation of a White House maritime security adviser role.
