Coast Guard can now build ships abroad—if it's cheaper
S. 1577 — A bill to amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards. · Filed by Lisa Murkowski (R-AK) · Introduced May 1, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill allows the President to authorize Coast Guard vessel construction in foreign shipyards (NATO members or Indo-Pacific treaty allies) if it costs less, takes less time, or if the foreign yard has proven capacity—but only after notifying Congress and waiting 30 days. It also allows the Secretary to buy completed vessels from allied foreign shipyards if the foreign government warrants them. The bill loosens a longstanding domestic-shipbuilding requirement.
Why we flagged it
The bill's functional effect is to relax the Jones Act-adjacent restriction on foreign shipyard use for Coast Guard vessels, creating exceptions based on cost, timeline, and allied-nation status. This is regulatory relief for shipbuilding procurement, not a protective or public-benefit measure.
What the text implies
- Weakening domestic shipyard demand may reduce investment in U.S. maritime manufacturing capacity, potentially harming long-term national security resilience if allied shipyards become unavailable or unreliable.
- The 30-day Congressional notification window is advisory only—Congress cannot block the President's determination, only be informed after the fact, limiting legislative oversight.
The full analysis lists 5 implications of this text.
Who stands to gain
foreign shipyards (NATO and Indo-Pacific allies); U.S. government (potential cost savings); maritime logistics and defense contractors in allied nations