To authorize an exception to the prohibition on the construction of naval vessels in foreign shipyards, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill creates an exception to the longstanding requirement that U.S. naval vessels be built in American shipyards. Under the exception, naval vessels or major hull and superstructure components may be built in foreign shipyards if two conditions are met: the foreign shipyard must be located in a NATO member country or an Indo-Pacific country with a mutual defense treaty with the U.S., and the construction cost must be lower than it would be at a domestic shipyard. Additionally, before any foreign construction begins, the Secretary of the Navy must certify to Congress that the foreign shipyard is not owned or operated by a Chinese company.
Who Benefits and How
Allied foreign shipyards in NATO and Indo-Pacific treaty countries gain access to U.S. Navy construction contracts they were previously excluded from. The U.S. Navy could benefit from lower construction costs and potentially faster fleet expansion. U.S. taxpayers may benefit from cost savings if foreign construction proves cheaper.
Who Bears the Burden and How
The U.S. domestic shipbuilding industry faces new competition from foreign shipyards for Navy contracts, potentially losing work they have traditionally held under the domestic-build requirement. American shipyard workers could see reduced employment opportunities. The Secretary of the Navy takes on a new certification responsibility to verify that no foreign shipyard used for Navy construction is Chinese-owned or operated.
Key Provisions
- Amends Section 8679 of title 10, United States Code
- Allows foreign construction if the shipyard is in a NATO or Indo-Pacific mutual defense treaty country
- Requires foreign construction to cost less than domestic construction
- Requires Secretary of the Navy to certify to Congress that the foreign shipyard is not owned by a Chinese company or domiciled in China
- Applies to both full naval vessels and major hull/superstructure components
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Allows naval vessels to be constructed in certain allied foreign shipyards by creating exceptions to the domestic-build requirement, provided the foreign shipyard is in a NATO or Indo-Pacific treaty ally country, offers lower costs than domestic yards, and is not owned or operated by a Chinese entity.
Key Policy Areas
National Defense, International Relations, Trade
Primary Purpose
Allows naval vessels to be constructed in certain allied foreign shipyards by creating exceptions to the domestic-build requirement, provided the foreign shipyard is in a NATO or Indo-Pacific treaty ally country, offers lower costs than domestic yards, and is not owned or operated by a Chinese entity.
Policy Domains
Foreign Shipyard Exception for Naval Vessel Construction
Identified Gains
Contextual inference, no direct clause citation- Allied foreign shipyards in NATO and Indo-Pacific treaty countries
- U.S. Navy (potentially lower construction costs and faster fleet expansion)
- U.S. taxpayers (potential cost savings on naval construction)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- U.S. domestic shipbuilding industry (faces foreign competition for Navy contracts)
- American shipyard workers (potential job losses to foreign yards)
- Secretary of the Navy (must certify non-Chinese ownership to Congress)
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Kennedy of Utah introduced the following bill; which was …
Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Navy
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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