S. 406: Ensuring Naval Readiness Act

This bill, titled the "Ensuring Naval Readiness Act," aims to modify existing regulations regarding the construction of naval vessels in foreign shipyards. Specifically, it seeks to create exceptions to the current prohibition on such construction in certain circumstances. Below are the main components of the bill:

Key Provisions

• Modification of Existing Law: The bill proposes changes to Section 8679 of Title 10 of the United States Code, which governs naval vessel construction.
• Permitted Exceptions: Under the amended law, construction of naval vessels may be allowed in foreign shipyards if the following conditions are met:
  • The foreign shipyard is located in a NATO (North Atlantic Treaty Organization) member country or a country in the Indo-Pacific region that has a mutual defense treaty with the United States.
  • The cost of construction in the foreign shipyard is less than that in a domestic shipyard.
• Certification Requirement: Before construction can begin in a foreign shipyard, the Secretary of the Navy must certify to Congress that the shipyard is not owned or operated by a Chinese company or a multinational company based in China.

Purpose of the Changes

The proposed changes are intended to enhance the readiness of the U.S. Navy by potentially reducing costs and increasing efficiency in naval vessel construction, while still maintaining national security measures regarding the involvement of foreign influence, particularly from China.

Overall Impact

This bill is designed to create flexibility in naval construction practices, allowing for cost-effective options while ensuring that such practices do not compromise U.S. national security interests.

Relevant Companies

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