A bill to amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards.
Summary
SB 1577 would amend section 1151 of title 14, United States Code, which generally restricts construction of Coast Guard vessels and major components in foreign shipyards. The bill keeps the basic prohibition in place but creates a new national-security-based exception process that would allow the President to authorize foreign construction when specific conditions are met and Congress is notified.
Under the bill, any exception would require a presidential determination that using a foreign shipyard is in the national security interest of the United States, followed by notice to Congress and a 30-day waiting period before a contract could be made. The President, in coordination with the Coast Guard Commandant, would also have to certify that the foreign shipyard is in a NATO country or an active U.S. defense treaty partner in the Indo-Pacific, that it is cheaper than a domestic shipyard, that it can deliver at least 18 months sooner than a domestic yard, and that it has recently demonstrated the ability to build comparable vessels at lower cost and within a shorter timeline. The bill also allows the Secretary to acquire a completed vessel from such a foreign shipyard if the foreign government provides a warranty agreement.
Impact
The bill would modify federal procurement and shipbuilding rules for the Coast Guard by narrowing the domestic-build restriction and adding a structured exception for certain allied foreign shipyards. It would affect Coast Guard acquisition policy, presidential notification requirements, and the conditions under which foreign-built vessels or major components may be contracted for or purchased. The measure would not eliminate the domestic preference, but it would create a legal pathway for foreign construction in limited cases involving NATO members or U.S. treaty partners in the Indo-Pacific.
Sentiment
No committee transcript or vote record is available, so there is no documented floor or committee sentiment in the provided materials. Based on the bill text, the measure appears designed to balance domestic shipbuilding policy with cost, schedule, and national security considerations, suggesting a pragmatic rather than ideological approach. The inclusion of strict certification requirements and congressional notice indicates an effort to make the exception narrow and controlled.
Contention
The likely points of contention are whether allowing foreign construction undermines U.S. shipbuilding jobs and industrial capacity, and whether the national security and cost/schedule criteria are too permissive or too restrictive. Supporters would likely emphasize faster delivery, lower cost, and allied-nation shipyards with proven capability, while opponents may argue that the bill weakens the domestic industrial base and could shift work away from U.S. yards. Another possible issue is the breadth of presidential discretion versus congressional oversight, though the bill does impose a 30-day notification period and detailed certification requirements.
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