H.R. 4952: Ensuring Coast Guard Readiness Act

This bill, titled the "Ensuring Coast Guard Readiness Act," proposes changes to the existing rules regarding the construction of vessels for the Coast Guard. Currently, U.S. law restricts the construction of Coast Guard vessels in foreign shipyards. The new bill aims to allow exceptions to this prohibition under specific conditions.

Key Provisions of the Bill

• Presidential Authority: The President can authorize exceptions to the prohibition on foreign construction if it is deemed to be in the national security interest of the United States.
• Eligible Countries: The foreign shipyard must be located in a NATO member country or a country in the Indo-Pacific region that has a mutual defense treaty with the U.S.
• Cost Consideration: The construction cost in the foreign shipyard must be less than what it would be in a domestic shipyard.
• Congressional Notification: The President must inform Congress of any determination to allow this exception. Contracts for construction cannot begin until 30 days after Congress receives this notification.
• Certification Requirement: Before construction can start, the Commandant of the Coast Guard must certify that the foreign shipyard is not owned or operated by a Chinese company or any multinational company based in China.

Conforming Amendments

The bill also contains a conforming amendment, which updates the related legal codes to include references to this new exception provision.

Purpose of the Bill

The overarching goal of the bill is to ensure the readiness of the Coast Guard by potentially allowing the construction of vessels at a lower cost and ensuring the capability to respond to national security needs more efficiently.

Projected Impact

By permitting construction in select foreign shipyards under certain criteria, the bill aims to provide greater flexibility in how the U.S. Coast Guard can procure vessels, potentially speeding up the process and managing costs effectively.

Relevant Companies

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