This bill modifies the restriction on building Coast Guard vessels in foreign shipyards by allowing exceptions for national security needs under strict conditions set by the President.
Lisa Murkowski
Senator
AK
This bill modifies existing law to allow the construction of certain Coast Guard vessels in foreign shipyards under strict conditions. The President can grant exceptions to the general ban only if it is deemed necessary for U.S. national security. Any such exception requires Congressional notification and certification that the foreign shipyard meets specific criteria related to alliance, cost savings, and expedited timelines.
Coast Guard Ship Bill Allows Foreign Construction If It's Cheaper and 18 Months Faster
This bill is all about making an exception to a long-standing rule that says the U.S. Coast Guard must build its ships right here at home. Currently, federal law (specifically 14 U.S.C. § 1151) generally blocks the Coast Guard from contracting with foreign shipyards. This new proposal changes that, giving the President the power to greenlight foreign construction, but only if it’s deemed absolutely “necessary for U.S. national security.” This isn't a free pass, though; the bill sets up a strict checklist that must be cleared first, including a 30-day notice to Congress before any contract is signed, making this a significant shift in how the U.S. procures its maritime assets.
The National Security Checklist: Cheaper, Faster, and Allied
The President can't just send a contract overseas because the domestic bid was a little high. The bill requires certification that the foreign yard meets three tough conditions. First, the shipyard must be located in a NATO country or a nation with an active U.S. defense treaty in the Indo-Pacific region—so, only close allies are eligible. Second, the foreign bid has to be cheaper than building the ship domestically. Third, and this is the kicker, the foreign yard must promise delivery at least 18 months faster than a U.S. shipyard. On top of that, the foreign yard must have a five-year track record of already successfully building similar Coast Guard mission vessels both faster and cheaper than the U.S. alternative. If those three conditions can’t be met, the exception is off the table.
What This Means for U.S. Shipyards and Workers
This is where the rubber meets the road for the domestic economy. The existing law was a protectionist measure designed to keep highly skilled shipbuilding jobs and critical industrial capacity within the U.S. When the Coast Guard needs a new cutter, those contracts support thousands of jobs—from welders and pipefitters to engineers and designers—in places like Pascagoula, Mississippi, or Marinette, Wisconsin. By creating an exception based on cost and speed, this bill introduces competition from allied nations. While the intent is to save money and get critical assets deployed faster, the potential cost is that domestic shipyards could lose out on contracts if they can’t meet the aggressive 18-month faster timeline or match the foreign price point. For a worker in the shipbuilding industry, this means the protective barrier around their job security just got a significant crack.
The 'Buying Off the Shelf' Option
Beyond building new ships, the bill also creates a simpler path for the Secretary to simply buy a completed vessel that’s already been built overseas. This is the 'buying off the shelf' provision. This can only happen if the ship was built in an allied nation (NATO or Indo-Pacific treaty country) and, crucially, the foreign government provides a warranty for the vessel. This is a fast-track option designed for immediate needs, allowing the U.S. to quickly acquire a proven asset without going through the lengthy design and build process, provided the foreign government stands behind the quality of the ship.