Bipartisan SHIPS Act Aims to Revitalize U.S. Maritime Industry, Counter China’s Dominance

In a landmark move to restore America’s maritime leadership, a bipartisan group of lawmakers has introduced comprehensive legislation aimed at rebuilding the nation’s declining shipbuilding and commercial maritime industries.

The Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, introduced by Senators Mark Kelly (D-AZ) and Todd Young (R-IN), along with Representatives John Garamendi (D-CA-8) and Trent Kelly (R-MS-1), comes at a critical time when U.S. shipbuilding capacity has weakened and China dominates international shipping.

The United States, once a dominant maritime power, now faces a stark reality: fewer than 200 oceangoing ships fly the American flag, while China has surged ahead in shipbuilding and commercial shipping.

“We’ve always been a maritime nation, but the truth is we’ve lost ground to China, who now dominates international shipping and can build merchant and military ships much more quickly than we can,” said Senator Kelly, notably the first U.S. Merchant Marine Academy graduate to serve in Congress.

The legislation sets ambitious goals, including expanding the U.S.-flag international fleet by 250 ships within a decade. It establishes a Maritime Security Advisor position within the White House and creates a Maritime Security Trust Fund to reinvest industry fees into maritime security programs.

Representative Garamendi, a long-time advocate for maritime revitalization, underscored its importance: “This bill represents the most substantial and comprehensive approach to have America compete and lead globally.”

The Act addresses critical national security concerns, particularly regarding military sealift capabilities. Currently, less than 200 oceangoing ships fly the American flag, a situation that the legislation aims to remedy through various incentives, including a 25% investment tax credit for shipyard investments.

Industry leaders have praised the initiative. David Heindel, President of Seafarers International Union, called it “an extraordinary piece of legislation” and the most comprehensive and impactful maritime policy he’s seen in his 51-year industry career.

The Act addresses critical national security concerns, particularly regarding military sealift capabilities. Currently, less than 200 oceangoing ships fly the American flag, a situation that the legislation aims to remedy through various incentives, including a 25% investment tax credit for shipyard investments.

With endorsements from over 80 maritime organizations and industry stakeholders, the SHIPS Act represents what many consider the most substantial effort in years to revitalize America’s maritime sector and counter China’s growing influence in global shipping.

“It will ensure our country has the U.S.-flag shipping capability and American mariners needed to support both national security and economic stability,” said R. Christian Johnsen, Chair of USA Maritime.

Philly Shipyard, one of the nation’s key shipbuilders, praised the act as a “major recapitalization of shipbuilding infrastructure” that would “provide substantial incentives for U.S.-built vessels.”

Key Provisions of the SHIPS for America Act

• National Maritime Strategy: Coordinate U.S. maritime policy by establishing the position of Maritime Security Advisor within the White House, who would lead an interagency Maritime Security Board tasked with making whole-of-government strategic decisions for how to implement a National Maritime Strategy. The bill also establishes a Maritime Security Trust Fund that would reinvest duties and fees paid by the maritime industry into maritime security programs and infrastructure supporting maritime commerce.  
• Fleet Expansion: Establish a national goal of expanding the U.S.-flag international fleet by 250 ships in 10 years by creating the Strategic Commercial Fleet Program, which would facilitate the development of a fleet of commercially operated, U.S.-flagged, American crewed, and domestically built merchant vessels that can operate competitively in international commerce.  
• Boost Competitiveness: Enhance the competitiveness of U.S.-flagged vessels in international commerce by establishing a Rulemaking Committee on Commercial Maritime Regulations and Standards to cut through the U.S. Coast Guard’s bureaucracy and red tape that limits the international competitiveness of U.S.-flagged vessels, requiring that government-funded cargo move aboard U.S.-flag vessels, and requiring a portion of commercial goods imported from China to move aboard U.S.-flag vessels starting in 2029.  
• Shipyard Investments: Expand the U.S. shipyard industrial base, for both military and commercial oceangoing vessels, by establishing a 25 percent investment tax credit for shipyard investments, transforming the Title XI Federal Ship Financing Program into a revolving fund, and establishing a Shipbuilding Financial Incentives program to support innovative approaches to domestic ship building and ship repair.  
• Next-Generation Innovation: Accelerate U.S. leadership in next-generation ship design, manufacturing processes, and ship energy systems by establishing the U.S. Center for Maritime Innovation, which would create regional hubs across the country.   
• Workforce Development: Make historic investments in maritime workforce by establishing a Maritime and Shipbuilding Recruiting Campaign, allowing mariners to retain their credentials through a newly establishedMerchant Marine Career Retention Program, investing in long-overdue infrastructure needs for the U.S. Merchant Marine Academy, and supporting State Maritime Academies and Centers for Excellence for Domestic Maritime Workforce Training and Education. The bill also makes long-overdue changes to streamline and modernize the U.S. Coast Guard’s Merchant Mariner Credentialing system.  

The Path Forward

As the U.S. faces escalating geopolitical challenges, particularly in the Indo-Pacific region, the timing of this legislation is critical.

With bipartisan backing and endorsements from across the maritime spectrum, the SHIPS for America Act is poised to make waves in Congress. If successful, it promises to not only rebuild America’s shipbuilding and shipping capabilities but also reaffirm its status as a maritime leader on the global stage.

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