Ensuring Naval Readiness Act
The Ensuring Naval Readiness Act would create a narrow pathway to build U.S. naval vessels or major hull/superstructure components in foreign shipyards, but only under stringent conditions. Specifically, it allows an exception to the current ban on foreign-yard construction if the foreign yard is located in a NATO member country or in an Indo-Pacific partner country that has a mutual defense treaty with the United States, and if the project would cost less than building the vessel domestically. A key security safeguard requires the Secretary of the Navy to certify to Congress, before any such construction begins, that the chosen foreign shipyard is not owned or operated by a Chinese company or a multinational company domiciled in the People's Republic of China. The bill alters the statutory framework by adding new provisions to 10 U.S.C. 8679 to implement these conditions.
Key Points
- 1Creates a formal exception process allowing naval vessel construction in foreign shipyards, subject to specific criteria.
- 2Eligibility requires the foreign yard to be in a NATO member country or in an Indo-Pacific partner country with a mutual defense treaty with the United States, and that the foreign option is cost-saving relative to domestic construction.
- 3Before any foreign-shipyard construction can commence under this exception, the Secretary of the Navy must certify to Congress that the foreign yard is not owned or operated by a Chinese company or by a multinational company domiciled in the PRC.
- 4The amendment expands the statute to incorporate new subsection(s) detailing these conditions and the certification requirement.
- 5The bill is introduced in the House (sponsor: Rep. Kennedy of Utah) and referred to the Committee on Armed Services; it creates a congressional oversight mechanism via the certification requirement.