SHIPS for America Act Launches $1.5 Billion Fund to Boost U.S. Shipbuilding and Mandates American Ships for China Imports

The "SHIPS for America Act of 2025" is a massive piece of legislation that essentially acts as a national policy reboot for the U.S. maritime industry. It’s a full-court press to rebuild America’s shipping and shipbuilding capacity, which has been shrinking for decades. The core of the bill is to establish the Maritime Security Trust Fund (Sec. 201), a dedicated, multi-billion dollar account funded primarily by new and increased tonnage taxes and fees on foreign vessels. This fund will finance a decade of aggressive investment in ships, shipyards, and sailors, running through 2035.

The New Maritime Power Structure

To run this ambitious overhaul, the bill creates a new high-level command center: a Maritime Security Advisor in the White House and a Maritime Security Board (Sec. 101). This Board, composed of leaders from Defense, Transportation, and Commerce, will set annual targets for key fleets and oversee the spending of the Trust Fund. Think of them as the new executive committee for all things ocean-related, tasked with coordinating policy and making sure the money actually builds ships and trains people. They have a lot of power, including setting priorities for a new Strategic Commercial Fleet (Sec. 401) designed to keep active, commercially viable U.S. ships ready for military use.

Incentives to Build American

If you own a shipyard or are looking to build a large vessel, this bill is a game-changer. It sets up the Shipbuilding Financial Incentives program (Sec. 501), authorizing over $250 million annually from the Trust Fund for U.S. ship construction and shipyard modernization. For a shipyard owner, this means federal aid to upgrade facilities and boost capacity. For a company ordering a new ship, the bill helps offset the higher cost of building domestically, provided they commit to using U.S.-made parts and using the ship for foreign trade for at least 10 years. Crucially, the bill also authorizes $100 million annually for small shipyards (Sec. 502) and streamlines environmental reviews (Sec. 507) to speed up construction projects.

The Cargo Preference Hammer

This is where the bill gets tough on international trade. First, it tightens cargo preference rules (Sec. 411). Currently, government agencies must ship at least 50% of their cargo on U.S.-flagged vessels. This bill raises that requirement to 100% 180 days after enactment. Only the Maritime Administrator (acting as the Director of the National Shipping Authority) can grant waivers during an emergency, effectively ending the ability of individual agencies to use cheaper foreign shipping options.

Second, and more controversially for importers, the bill introduces a phased-in requirement for goods coming from China (Sec. 415). Starting five years after enactment, 1% of the tonnage of covered goods manufactured in China must be imported on a vessel that is U.S.-built, U.S.-crewed, and U.S.-flagged. This percentage increases annually, reaching 10% after 14 years. If an importer fails to meet this quota, they face a fine calculated to be the difference between using a cheap foreign vessel and the required U.S.-built one. This provision is designed to create reliable, long-term demand for American ships, but it will certainly increase compliance costs for companies that rely heavily on manufacturing in China.

What It Means for the Workforce

For the people who actually work on the water, the bill offers significant carrots. Merchant Mariners are now eligible for Public Service Loan Forgiveness (PSLF) (Sec. 601), meaning time spent working on a U.S. vessel can count toward having federal student loans canceled. For mariners who served in a combat zone, the bill creates a pathway for GI Bill-like educational assistance (Sec. 602). Furthermore, the bill creates a Career Retention Program (Sec. 606) to pay mariners to keep their credentials current even if they take land-based jobs, ensuring a ready reserve of experienced sailors for national emergencies.

To get more people into the industry, the bill funds Centers of Excellence (Sec. 612) with $25 million annually and authorizes over $1 billion for a 10-year modernization of the U.S. Merchant Marine Academy (Sec. 621), which is currently struggling with aging infrastructure. It also streamlines the hiring process for federal jobs for Academy graduates and experienced mariners (Sec. 605).

The Foreign Entity Factor

Throughout the bill, there are new rules targeting "foreign countries of concern" (Sec. 4) and "foreign shipyards of concern" (Sec. 202). This means higher duties—up to 200% (Sec. 404)—on repairs done in those countries, and new penalty tonnage taxes on ships associated with them. The intent is to penalize reliance on foreign adversaries and redirect business to U.S. yards and allies. For any company that uses these foreign facilities, this bill makes that choice significantly more expensive, acting as a clear economic deterrent.