Ensuring Coast Guard Readiness Act
The Ensuring Coast Guard Readiness Act would create a controlled exception to the current prohibition on building Coast Guard vessels in foreign shipyards. The President could authorize such exceptions if it is in the national security interest and if the foreign yard is in (a) a NATO member country or (b) a Indo-Pacific partner country that has a mutual defense treaty with the United States, and if the project would cost less than building domestically. Before any contract can be awarded under this exception, the President would must notify Congress and wait 30 days. Additionally, before any construction at a foreign shipyard begins (including major hull or superstructure components), the Coast Guard Commandant must certify to Congress that the yard is not owned or operated by a Chinese company or a multinational company domiciled in the People's Republic of China. The bill also makes a conforming change to cross-reference this authority in the Department of Defense procurement statute. In short, the bill creates a narrowly tailored path to use foreign, allied shipyards for Coast Guard vessels when it saves money and does not raise security concerns about Chinese ownership, with formal congressional oversight and timing requirements.
Key Points
- 1The President may authorize exceptions to the prohibition on Coast Guard vessel construction in foreign shipyards if it is in the national security interest and the yard meets location and cost conditions.
- 2Location requirement: the foreign shipyard must be in a NATO member country or in an Indo-Pacific country that has a mutual defense treaty with the United States.
- 3Cost requirement: the foreign construction must be cheaper than domestic construction.
- 4Congressional oversight and timing: the President must notify Congress of any determination, and no contract may be made under the exception until 30 days after Congress receives that notice.
- 5Pre-construction certification: before starting construction at a foreign shipyard (including major hull or superstructure components), the Coast Guard Commandant must certify that the foreign yard is not owned or operated by a Chinese company or a multinational company based in the PRC.
- 6Conforming amendment: adds a cross-reference to 14 U.S.C. § 1151(b) in title 10, aligning related provisions across statutes.
- 7Prohibition baseline: the bill explicitly amends the existing framework governing where Coast Guard vessels can be built, by adding a defined exception rather than broadening authority universally.