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The first-in-class National Security Multi-Mission Vessel, NSMV 1, aka Empire State VII, is floated out of dry dock at Philly Shipyard. Photo: courtesy of RADM Alfultis
Trump and Congress Chart a New Course on U.S. Maritime Policy
America’s long-neglected maritime sector is suddenly sailing into the policy spotlight—on parallel tracks.
In a matter of weeks, both the White House and Congress have launched sweeping efforts to reverse the decline of U.S. shipbuilding and restore the strength of the U.S.-flag merchant fleet. President Donald Trump’s “Restoring America’s Maritime Dominance” executive order, signed April 9, outlines a broad administrative plan with tight deadlines for federal agencies. Now, the SHIPS for America Act, introduced today by a bipartisan coalition in Congress, aims to codify many of those goals into law—with long-term funding, industry-specific reforms, and powerful new mandates.
Together, the two initiatives represent the most ambitious federal maritime policy push since the Reagan era. But how do they compare?
Similar Goals, Distinct Tools
Both the Trump administration’s executive order and the SHIPS Act share a common objective: to rebuild the U.S. Merchant Marine and reduce dependence on China’s shipbuilding industrial base. But while Trump’s order relies on executive authority and agency coordination, the SHIPS Act proposes new law, new funding, and new enforcement mechanisms that could outlast any single administration.
Strategic Commercial Fleet goal: 250 ships in 10 years
Leadership Structure
Maritime Action Plan led by National Security Advisor and interagency board
Creates White House Maritime Security Advisor and Maritime Security Board
Funding Mechanism
Maritime Security Trust Fund (proposed; details TBD)
Fully legislated Maritime Security Trust Fund funded by tonnage taxes, duties, and penalties
Domestic Shipbuilding
Defense Production Act utilization; review of loan guarantees
$250M/year for shipbuilding; converts Title XI to revolving fund; tax credits for newbuilds
Regulatory Reform
Deregulation reviews due in 30–90 days
Rulemaking Committee to align U.S. rules with IMO standards; modifies 1851 liability law
Workforce Development
National mariner review; new academies and scholarships considered
PSLF and GI Bill for mariners; new recruitment pipelines; expands Naval Sea Cadet Corps
Academy Modernization
Emergency maintenance at USMMA; long-term upgrade plans
USMMA parity with other academies; SMA funding for fuel, ships, and scholarships
Fleet Expansion
DOT must submit proposals to grow U.S.-flag fleet
Launches Strategic Commercial Fleet Program with timeline and cargo preference enforcement
Cargo Preference
Encourages fleet growth and subsidy reform
Requires 100% of U.S. government cargo to move on U.S.-flagged ships
Foreign Equipment Tariffs
Directs USTR to consider Section 301 tariffs on Chinese cranes and handling gear
Targets Chinese logistics platforms; creates steep penalties for non-U.S. shipyard work
Innovation and R&D
Encourages private investment; broad infrastructure plan
$50M/year for Maritime Innovation Incubators; expands access to DOE loan guarantees
Trade and Port Fee Reform
Closes Canadian/Mexican port fee loophole with 10% surcharge
Strengthens cargo preference and logistics enforcement via new “Ship America Office”
Defense Integration
DoD must develop Arctic maritime security strategy
DoD/Navy must adopt commercial best practices and boost Military Sealift Command hiring
What These Categories Mean
Strategic Vision & Leadership Trump’s order initiates a fast-track strategy process but stops short of legislative action. The SHIPS Act embeds that strategy into law, led by a White House maritime czar and backed by a Maritime Security Board to ensure long-term coordination across agencies like DOD, DOT, and DHS.
Funding Mechanisms The executive order proposes a Maritime Security Trust Fund but leaves funding sources vague. The SHIPS Act creates a real trust fund—financed by tonnage taxes, duties, and fines on foreign adversary-linked shipping—that would operate like the Highway Trust Fund, offering consistent maritime investment.
Shipbuilding Investment Both plans target shipyard revival, but the SHIPS Act brings financial firepower: $250 million per year for large shipbuilding and $100 million for small yards, plus tax credits and access to restructured Title XI financing. Trump’s order pushes for use of the Defense Production Act and directs agencies to streamline procurement.
Regulatory Reform The executive order gives agencies 90 days to identify regulatory burdens. The SHIPS Act goes further: creating a formal rulemaking committee to harmonize U.S. laws with international standards while ensuring they don’t undercut U.S. strategic interests.
Workforce & Academies Trump’s order calls for new academies and training pipelines. The SHIPS Act makes that actionable, authorizing new education benefits (like PSLF and GI Bill eligibility) and investing in both the USMMA and State Maritime Academies.
Cargo Preference & Fleet Growth The SHIPS Act mandates that 100% of U.S. government cargo must sail on U.S.-flagged vessels, including Chinese imports—up from current levels and a major boon for the domestic fleet. Trump’s order encourages similar growth but leaves targets and mandates to DOT.
Foreign Tariffs & Port Loopholes Both initiatives target Chinese port dominance. Trump’s order instructs USTR to weigh new Section 301 tariffs on Chinese-built cranes. The SHIPS Act expands this by taxing Chinese logistics services and plugging revenue leaks from cargo routed through Canadian and Mexican ports.
Executive Orders Set the Table—But Congress Controls the Purse
Trump’s order is aggressive on timelines: 30-, 45-, 90-, 180-, and 210-day deadlines drive immediate action on academy repairs, deregulatory reviews, Arctic strategies, and tariff proposals. But executive orders are inherently limited—they rely on existing budgets, agency discretion, and can be reversed by future administrations.
The SHIPS Act, by contrast, commits actual dollars and legislative mandates to workforce incentives, shipyard modernization, and regulatory overhauls. It would embed many of Trump’s ideas in statute, including trust fund financing, a permanent White House maritime advisor, and hard fleet targets.
Jennifer Carpenter, President and CEO of the American Waterways Operators, said the combined initiatives “signal a government-wide recognition” of the importance of a strong domestic maritime industry.
If both succeed, the United States could see a revitalized shipbuilding base, expanded maritime workforce, and renewed presence in global shipping within the next decade. The biggest challenge? Coordination and funding. Without full Congressional support and industry buy-in, even the most ambitious plans risk running aground.
Still, the message is clear: After decades of decline, Washington is betting big on a maritime comeback.
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