Ensuring Coast Guard Readiness Act

The Ensuring Coast Guard Readiness Act would create a narrow exception to the longstanding prohibition on constructing Coast Guard vessels in foreign shipyards. The President could authorize such exceptions if doing so serves U.S. national security and the foreign shipyard is either in a NATO member country or in an Indo-Pacific ally country that has a mutual defense treaty with the United States, and if the foreign option would cost less than building domestically. Before any contract under an exception, Congress must be notified and a 30-day waiting period would apply. Additionally, before any construction or major hull/superstructure component work could begin at a foreign yard under the exception, the Coast Guard Commandant would need to certify to Congress that the foreign yard is not owned or operated by a Chinese company or a multinational company domiciled in China. A conforming cross-reference to the Department of Defense appropriations statute is added to ensure consistency across law. In short, the bill provides a controlled pathway to use allied foreign shipyards for Coast Guard vessels when it is in the national security and cost interests, while imposing safeguards to avoid Chinese ownership and ensuring congressional oversight.