A bipartisan group of lawmakers has reintroduced the SHIPS for America Act, a sweeping legislative package aimed at restoring the United States’ shipbuilding capacity and maritime competitiveness. The bill seeks to expand the U.S.-flagged international fleet by 250 vessels over the next decade, a significant increase from the current 80 ships, and to revitalize the domestic shipyard industrial base.
Bipartisan Bill Targets 250-Ship Fleet Expansion and Industrial Revitalization
Senators Mark Kelly (D-Ariz.) and Todd Young (R-Ind.), along with Representatives John Garamendi (D-Calif.) and Trent Kelly (R-Miss.), are leading the initiative. The legislation proposes a 25% investment tax credit for shipyard upgrades and the creation of a Maritime Security Trust Fund to support the expansion.
The bill also includes provisions to streamline environmental reviews and unlock Department of Energy loan guarantees for maritime infrastructure. Additionally, it authorizes $250 million annually from fiscal year 2026 through 2035 for domestic commercial shipbuilding projects and earmarks $100 million per year in grant funding for small shipyards.
Addressing Strategic Vulnerabilities and Economic Challenges
The reintroduction of the SHIPS for America Act comes amid growing concerns over China’s dominance in global shipbuilding. China accounts for over 62% of global shipbuilding output, while the U.S. share has dwindled to 0.1%. This disparity has raised alarms about national security and economic resilience, particularly in light of China’s expanding naval capabilities.
The U.S. shipbuilding industry faces significant challenges, including labor shortages and outdated infrastructure. For example, Huntington Ingalls Industries reported a decline in first-quarter earnings due to reduced output and labor retention challenges. The SHIPS for America Act aims to address these issues by investing in workforce development and modernizing shipyard facilities.
Industry leaders have expressed support for the legislation. Hanwha Philly Shipyard, recently acquired by South Korea’s Hanwha Group, plans major investments to increase efficiency in response to anticipated policy-driven demand. The Shipbuilders Council of America also endorses the bill, highlighting its potential to rebuild America’s maritime industrial base.
The SHIPS for America Act represents a concerted effort to revitalize the U.S. shipbuilding industry, enhance national security, and create high-paying American jobs. Its success will depend on sustained investment, bipartisan support, and effective implementation to overcome the structural challenges facing the maritime sector.
